Samita 12

KANARA CLAY INDUSTRY, DIVAGI
Government First Grade Degree College

Kumta(N.K) 581343
Project Report
on
“KANARA CLAY INDUSTRY ”

DIVAGI
Prepared by: Ms.Samita Bhandari Under the guidance of

B.B.A.3rd Sem Dr. Saraswati Kalasad
Rg.no:BBA07437027
Prepared for the partial fulfillment of Bachelor of Business

Administration Degree of Karnataka University Dharwad
2008-2009
Government first grade college,Kumta [Type text] Page 1

GOVERNMENT FIRST GRADE DEGREE COLLEGE,

Kumta.(N.K)581343
Ref.No: Date:
CERTIFICATE
This is to certify that Ms.. Samita Bhandari has undergone one month in
plant training in “KANARA CLAY INDUSTRY” as per the requirement
to award the B.B.A. Degree.
He studied the organization and submitted the project report
GUIDE : PRINCIPAL:
Dr. Sarswati Kalasad Dr. Sarswati Kalasad
Govt.1st grade college
Kumta
Place: Kumta
Date:

DECLARATION
I here by declare that this submission of Project Report on Survey of

“Kanara clay industry” Divagi is done by efforts under the valuable guide
and supervision of Dr. Sarswati Kalasad.
Place: Kumta Ms.Samita Bhandari

Date: B.B.A.3rd Sem
Govt.1st grade college kumta

ACKNOWLEDGEMENT
For the completion of success of any work it is very

essential of valuable guide encouragement and help. I express any gratitude
to all person who came in my way of success.
I express my gratitude and indebtedness to Dr. Saraswati

Kalasad for his motivation and guide. I express my thanks to teaching and
non-teaching staff for their help and suggestions.
My special thanks to Mr.R.S.Bhagwath the managing

Director of for giving me the permission to undergone inplant training in his
organization and giving me all details with very interest fully.
Thus I extend my sincere thanks to all persons who helped

me directly and indirectly to complete this project work.
Ms.Samita Bhandari
BBA 3rd SEM

CONTENTS

TABLE OF CONTENTS
Part A
1. General Introduction
2. Objectives of the study
3. Scope of the study
4. Methodology
5. Limitation
Part B
1. Company Profile
2. Organization Flow Chart
Part C
1. Introduction of department
2. Purchase department
3. Production department
4. Marketing department
5. Financial Procedure

Part D
1. Problems and Future Plan
2. Suggestions
3. Conclusion
Part E
1. Bibliography

PART -A
GENERAL INTRODUCTION
. KANARA TILES AND CLAY INDUSTRY(PVT)LTD is the
private company, Kanara tiles and clay industry (pvt) ltd was established in
25/05/1978 at divagi kumta with a surrounding land of 5 acrcs it govt
required from govt of India.
KANARA TILES AND CLAY INDUSTRY(PVT) LTD not only

manufacturing tiles but also in place of doing bricks, Ridge and Taracotta,
articles like water pots and flower pots(vase)
Kanara tiles manufactures A1 under well brand.
The raw material which are required to produce Tiles, bricks,

Ridge and Taracotta, articles .
1. Clay
a) Lean
b) Plastic
2. Fire wood
3. Diesel
4. cashew cells

OBJECTIVES OF THE STUDY
1. To produce and supply good quality tiles to all customer

2. To earn profit
3. To create employment opportunity to rural people
4. To utilize the nature resources like oil, water. Clay, etc which are
available

SCOPE OF THE STUDY
1. To study the different aspect of various department

2. To study the overall structural of Kanara Tiles & Clay industry(pvt)
Ltd.

METHODOLOGY
The information gathered for the project was from both primary and
secondary data.
1. Primary Data
Primary data means the information gathered directly from the
sources, the data covered in this data is a current data.
Primary data is collected through the concerned manager and
workers by interviewing them.
a. Personal interview with employer
b. Personal interview with employees.
2. Secondary Data
Secondary data is obtained through several printed material
supplied by the company. Books were also referred to make the study more
practical and useful.

LIMITATION
1. Certain factors were treated as highly confidential so I could not get the
answers.
2. All workers are not expressed their views clearly because their busy
schedule.
3. The manager treated certain factors as highly confidential and hence I

could not go in to details.

PART-B

LITERATURE ON SSI
Definition:
An industrial undertaking is one in which the investment in fixed
assets in plant and machinery whether held on ownership or on lease or on
hire purchase, does exceed rupees 2 crore.
SSI Can be classified into 5 main types:-

1. Manufacturing Industries i.e. industries producing complete
articles for direct consumption and also processing industries.
2. Feeder industries specializing in certain types of products and
services. eg :casting, welding etc.
3. Servicing industries covering light, repair shops necessary to
maintain mechanical equipment.
4. Ancillary to large industries, producing parts and components
and rendering services.
5. Mining or quarrying.

FEATURES OF SSI
1. A small scale unit is generally a one man show. Even the small
units, which run by a partnership firm or Co., the activities, are
mainly carried out by one of the partners or directors. In practice
the others are simply as sleeping partners or directors who mainly
assist in providing funds.
2. Incase of SSI the owner himself/herself is a manager also. The
owner has 1st hand knowledge of what is actually going on in the
business. He takes effective participation in all matters of business
decision making.
3. Using local resources, small units are decentralized and dispersed to
rural areas.
4. Small industries are fairly labour intensives with comparatively
smaller capital investment than the larger units.
5. Fixed assets from the largest component of small units.
ADVANTAGES OF SSI
1. Some SSI’S do not require a high level of technology.
2. SSI’S are generally labour-intensives and do not require a large

amount of capital. The energy of unemployed and underdeveloped
people may be used for productive purposes in an economy in which
capital is scarce.
3. SSI project can be undertaken in a short period and hence can

increase production both in the short and long run.
4. It is possible both to save and to earn foreign exchange by producing

and exporting goods process from local resources.
5. Small scale enterprises in developing countries help to create

economic stability in society.
6. The development of small scale enterprises will create jobs in the

rural areas of the developing countries where unemployment and
under employment are high.
7. Small enterprises create immediate and permanent at a relatively

small capital cost.
8. Small enterprises have their own place in a country’s economy.
DISADVANTAGES OF SSI

1. Lack of finance so that the SSI’S can’t expand their business.
2. SSI is facing competition from the large scale industries. Some time
small scale industries are collapse because of competition.
3. Mainly small scale industries are situated in rural and semi urban
areas because of this they are facing problem of infrastructural facility
i.e. power supply, transportation etc.
4. Because of small investment small scale industries are facing problem

of skilled labour.
5. Small scale industries are not implementing high level technology

because of lack of finance.
6. Misuse of human resource, instead of developing it.
7. Management of SSI in changing marketing condition is very poor.

PROCESS OF SETTING SSI
1. Selection of industry:
First of all he has to choose industry with a proper planning, i.e.
preparing project report from proper person.
2. Selection of location and Acquisition of premises:

Selection of location is the 2nd step to setting of SSI. The location should
helpful to transportation product and other, infrastructural facility should be
available.
3. Apply to financial institution for assistance for fixed assets and working
capital inclusive of export finance if warranted.
4. Apply for registration and power allotment.
5. Apply to local body/panchayat/municipality for permission.
6. Next step is to order for machinery and install the machinery.
7. Apply for power connection and connect it to machinery.
8. Apply for raw material if necessary and than procure raw materials.
9. Recruit staff, labour, worker etc.
10.Trial runs should be taken for few months and if any corrections thing
found then correct it.

11.Production is the main thing to set of SSI. Maintenance of records,

standardization of products should be therein.
12.Sales of the products on and after sale services.

PART-B
INDUSTRY PROFILE
Back ground and inception of the company:-

Kanara tiles and clay industry is a tiles

manufacturing unit. Which is situated at divagi. With surrounding
land at 5 acrs it registered from govt of India under the SSI Act on
26th may 1978. At it was a partnership firm it was founded by
K.V.Sheety, Burdekar and R.S. Bhagwath.
Kanara tiles not only manufacture tiles but it is

also in place of manufacturing Bricks, Ridges like water pots and
flower pots.
Kanara tiles manufactures A1 under well brand.
Nature and business carried:-

It is carried on the business carried relating to
nature on the business carried are preparation and sole of:
1. Tiles
2. Ridges
3. Bricks
4. Teracotta Articles
a. water pots
b. flower pots
Vision, mission, quality policy:-
Vision: Fulfilling demand of customer, in the sense that we

supply good quality and suitable quality of goods at time to time to
the customers

Mission: The main motive of our organization is that we

manufacture goods (Tiles) and supply them to the poor people at
free of cost to provide them shutter
.
Quality policy:
We maintain our quality we will not manufacture
the cheap quality material in our industry. It is the link for the
progress of our industry.
Product/ Service profile:

Ridge : We manufacture it for the purpose of
preceding shelter.
Bricks:
We manufacture it for the purpose of builds stores
Tiles: We manufacture it for the purpose of rooting
Teracotta Articles: These articles come in two various types.

• Flower pots
• Water pots
• Window pots
• Design pots
• Hanging pots
Areas of operation:
Global
National
Regional

We export our goods not only in local areas but

we exports our manufactured tiles outside the state like maharastra
and goa so our goods are related not only our region but we have
exported to other state
Ownership Pattern:
Sole trading concern
Partnership firm
Joint stock company
It was established by 3 p\ersons as partner as by K.

V.Shetty, Burdeker and R S Bhagwath later on as the company
faced loss they left partnership
Of the company at present.
It is a partnership firm which is lead by:
1. Mr. R. S. Bhagwath
2. Yamuna R Bhagawath
3. Sitarm R Bhagwath
4. Shridhar R Bhagwath
Competitors information/ Infrastructure facilities:

Since we are producing good quality product.
We have no competitor but the same quality product are produced
by many industry they are closed distance they are:
1. NKDC tiles factory Kasergod
2. Murdeshwer tiles factory
Achievement / Award received by organization :
Achievement : Since our industry was started on 26

may 1978 with an project of 700000 & today it as property of
30000000. it is the food feed to 187 members and also supply
house quota to the labour or workers at free of cost.
Future growth and prospects:

1. Giving stress to export the goods to other
countries like europian countries.
2. Want to design new model taracotta articles and
give them various colors and designs and to
market them with in the country and out side the
country
3. Want to design tiles of europian italian style.
Over time:
According to factory act, maximum hours is shown and
48 hours in a week. If any workers work for overtime they have to
pay overtime wages
Detail study and structure of management
In the structural part the above details are given

the complete structure about the organization/ industry. These are
4th board of director who look after the industry and take a
important decision 1st person is MD another is. Chief executives.
Then comes the staff in this their is a clerk

looks after the attendance and other activity. Then comes
supervisors there are 4 supervisors who look after the 4 various
department production. Marketing, Purchases, Finance and in this
organization 3 watchman who looks the security and these are 187
workers in this factory who are the main strength of these factory
they are mostly skilled workers in these factory because they have
more experience.

PART-C
INTRODUCTION OF THE DEPARTMENT:
1. Purchase Department:
• Clay
• Fire wood
• Kerosene
• Diesel
• Cashew
2. Production Department
• Tiles
• Ridges
• Bricks
• Taracotta articles
3. Marketing Department
• Advertisement
• Donation
• Calendars
• Discount to cash customer
• Diary
4.Finance Department
Maintain the records of accounts
Giving the profit and loss account
Before the 31st march every year
Detailed study about various department and their functions;

In the study of various department in this industry 1st comes
the purchase department.
1. Purchase department
Purchase is an important activity of any

organization . purchasing is the activity which is responsible for
getting the right material form the right source at the right time
in the right quality at right place. Purchasing is the function
which is responsible for the purchase of the material cycle from
time the item is requisition until it is delivered to the user.
The supply of the raw material like day is

distributed from valagali:
• Fire wood by the RFO Chibgi depo and
Mundgode depo
• Kerosin and diesel by Bhagwath petroleum by
Shridhar Bhagwath
• Cashes shells by preerti agrotech Kumta
2. Production Department
Production are an important activity of an
organization. The enterprise gets profit only by selling its
product. ”Kanara Tile & Clay industry (pvt)ltd”. Is having so
many customers in Karnataka and also in other state.
In the production department 1stly come the
supervisor who give the proper instruction to the works to work
efficiently and effectively and the produce the tiles, ridgs,
bricks and taracotta articles and made in water pots and flower
pots.
Important customer of the production department:
Nano canculkar(goa)

Kode (belgavi)
Mahaliga (Chikodi)
Kode(Maharastra)
A G Kulkarni(Belagavi)
Marketing Department:
In the marketing department the marketing is
done through firstly by the advertisement like giving donation
to the school, profits, calendars, diary etc. and the most
effective step of marketing is to give discount in cash to the
customer so these are the function of marketing department
Finance Department:
Maintain the records of an account in the
form prescribed by the govt department every day. Today
transactions are look after by an accountant but there yearly
profit and loss account is prepared by the charted accountant G
S Kamath.
The financial source for the industry is Karnataka bank
limited kumta
Steps and twinning undertaken to import necessary sense.

1. To know about the work

2. To give suitable work
3. Giving training then firstly theory supervisor to through
the skilled labour
4. Thanking labour by giving training
On the job training

In the industry we give only the training after
the appointing them we will not give them training send them
to other place for special training we give them training in
industry other opportunity then this training is give 1st by
supervisor and then by skilled workers it will also reduces the
cost so be import the training to workers in the doing the
works it self

PART-D
FINDING

1. Management structure of this enterprise is not well

organized
2. There is no coordination among the workers and
managers
3. Because of the competition the profit as come down
year by year

FUTURE PLAN
• Increase their production capacity. Every day from the beginning of

this year.
• Searching new customers
• Retaining existing customers.

SUGGESTIONS
• Improve the production techniques

• Good relationship with the workers
• Improve the safety in the factory premises
• Management structure should be properly organized.
CONCLUSION

Kanara tiles and clay pvt ltd is one of the private company
which is situated at divagi kumta with the surrounding land 5 acres it is one
of the partnership firm. Kanara tiles and clay industry private ltd
manufactures tiles, ridges, bricks, taracotta articles like water pots, flower
pots save the customer with best quality is the moto of this enterprises it
export their product not only in Karnataka but also to others state likes goa,
maharastra etc.

PART- E

BIBLIOGRAPHY

BIBLIOGRAPHY
International Business Environment-

K. Aswattppa
Entrepreneurship Development-
Vasant Desai
Company annual report

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KANARA CLAY INDUSTRY, DIVAGI

Government First Grade Degree College

“KANARA CLAY INDUSTRY ”

Prepared by: Ms.Samita Bhandari Under the guidance of

Prepared for the partial fulfillment of Bachelor of Business

Government first grade college,Kumta [Type text] Page 1

GOVERNMENT FIRST GRADE DEGREE COLLEGE,

He studied the organization and submitted the project report

Government first grade college,Kumta [Type text] Page 2

I here by declare that this submission of Project Report on Survey of

Place: Kumta Ms.Samita Bhandari

Government first grade college,Kumta [Type text] Page 3

For the completion of success of any work it is very

I express my gratitude and indebtedness to Dr. Saraswati

My special thanks to Mr.R.S.Bhagwath the managing

Thus I extend my sincere thanks to all persons who helped

Government first grade college,Kumta [Type text] Page 4

Government first grade college,Kumta [Type text] Page 5

Government first grade college,Kumta [Type text] Page 6

Government first grade college,Kumta [Type text] Page 7

KANARA TILES AND CLAY INDUSTRY(PVT) LTD not only

The raw material which are required to produce Tiles, bricks,

Government first grade college,Kumta [Type text] Page 9

OBJECTIVES OF THE STUDY

1. To produce and supply good quality tiles to all customer

Government first grade college,Kumta [Type text] Page 10

SCOPE OF THE STUDY

1. To study the different aspect of various department

Government first grade college,Kumta [Type text] Page 11

Government first grade college,Kumta [Type text] Page 12

3. The manager treated certain factors as highly confidential and hence I

Government first grade college,Kumta [Type text] Page 13

Government first grade college,Kumta [Type text] Page 14

SSI Can be classified into 5 main types:-

Government first grade college,Kumta [Type text] Page 15

1. Some SSI’S do not require a high level of technology.

2. SSI’S are generally labour-intensives and do not require a large

3. SSI project can be undertaken in a short period and hence can

4. It is possible both to save and to earn foreign exchange by producing

5. Small scale enterprises in developing countries help to create

6. The development of small scale enterprises will create jobs in the

7. Small enterprises create immediate and permanent at a relatively

8. Small enterprises have their own place in a country’s economy.

Government first grade college,Kumta [Type text] Page 17

1. Lack of finance so that the SSI’S can’t expand their business.

4. Because of small investment small scale industries are facing problem

5. Small scale industries are not implementing high level technology

6. Misuse of human resource, instead of developing it.

7. Management of SSI in changing marketing condition is very poor.

Government first grade college,Kumta [Type text] Page 18

PROCESS OF SETTING SSI

2. Selection of location and Acquisition of premises:

4. Apply for registration and power allotment.

5. Apply to local body/panchayat/municipality for permission.

6. Next step is to order for machinery and install the machinery.

7. Apply for power connection and connect it to machinery.

9. Recruit staff, labour, worker etc.

Government first grade college,Kumta [Type text] Page 19

11.Production is the main thing to set of SSI. Maintenance of records,

12.Sales of the products on and after sale services.

Government first grade college,Kumta [Type text] Page 20

Back ground and inception of the company:-

Government first grade college,Kumta [Type text] Page 21