CHAPTER - 1

INTRODUCTION

1. INTRODUCTION
Organizations are formed for fulfilling certain objectives. The objectives are laid down as
and when an organization is started. It is the pooling up of ideas and innovations for
sustainable development.
The study, for performing Organizational Study of M/s Kerala Electricals
engineering company limited(KEL) is an attempt to study the management as well as
functions of various departments involved. It also covers the study of the products and
various other activities of the organization analyze the data and arrange the findings and
suggest certain recommendations based on the study.
The study aims at obtain information through the interaction with Managers, trying to
understand the responsibilities of various levels of Management staff. To observe the work
place and to study the various aspects of manufacturing, quality assurance, H.R(Human
Resource), Finance, Marketing and Materials Management activities

1.1 OBJECTIVES OF THE STUDY

a) To study the organizational structure and its hierarchy.
b) To study about the various departments of the organization.
c) To study how the departments are functioning.
d) To study how the management tries to control and coordinates various departments
to achieve organizational goals.
e) To identify the theoretical and practical differences in process of an organization.

1.2 SCOPE OF STUDY

As it was an organizational study that organization itself was my scope of study .Here it
was Kerala Electrical and Allied Engineering Company Limited also known as KEL .Here
the range was KEL located at Mamala and the sample size was the department managers
and other officials at KEL. Out of the four units of KEL my study was restricted to KEL
Mamala, rest of the units are KEL Olavakkot unit, KEL Kundara unit, and KEL Kasargod
unit .Kerala electrical and allied engineering company limited Mamala was my scope of
study.

1.3 LIMITATION OF THE STUDY

a) This study is mainly conducted with the help of annual reports, journal brochures,
departmental manuals etc.
b) The officials were little reluctant in disclosing some details about the organization.
c) The busy work schedule of officials prevented detailed discussion.
d) The company didnt reveal some official reports & documents as it kept
confidential.

CHAPTER-2
INDUSTRY PROFILE

INDUSTRY PROFILE

Heavy electrical industry encompasses important industry sectors including power

generation, transmission, and distribution equipments .This also covers turbo generators,
boilers , turbines, transformers , switch gears and relays .This performance of the industry
is closely linked to the power programme of the country .To reach wheel power, an
expansion of the regional transmission network and inter regional capacity to transmit
power would be essential .This will stimulate substantially demand for heavy electrical
equipments .There is a strong manufacture base for the manufacture of heavy electrical
equipment in the country .The technology available in India is almost at par with that in
the international market barring few areas of the high voltage lines .However ,items like
CRGO Steel and amorphous cores for low loss transformers are being important.
The present buoyancy in Indian Economy would create demand for the electrical product
through industrial growth and general economic development. The power sector reforms
will create large business for power sector equipment manufacturers and service
providers .In the current favorable scenario, the electrical industry can certainly look
forward to growth.

WORLD SCENARIO

Heavy electrical industry is an industry which consists of different companies which are
producing large equipments which are used for power generation.

One of the most

important developments in the world economy in the past half century is the enormous
growth in world trade. So with the growth in the world trade, the scope or the electrical
equipment industry also increased.

The common wisdom about the cause for the growth focuses on the world wide reduction
in trade barriers brought about by several GATT agreements. This report analyses the
worldwide market for Transformers. The specific product segment analyzed is Power
Transformers, Distribution Transformers etc.

The report profiles 195 companies including many key and niche players such as Areva,
Areva & TD,

ASEA Brown Boveri, ABB power tech transformers, Bharath Heavy

Electricals Limitedetc. Japanese recent past, current and future market analysis for
Transformers by product Type power Transformer and Distribution Transformer market
independently analysed with annual sales figures in US $Million for years 2001 through
2013

The current interest in determining the condition of power transformers in service and in
minimizing the cost of keeping them in service and the risk involved. The recent trend for
many utilities is to reduce capital spending and the one area which is more scrutinized is
capital expenditures on power transformers. Most utilities desired
To make efficient use of transformers without creating operating or maintenance problems.
Load growth causes increased loading on transformers or necessitates the procurement of
new transformers. Utilities may opt for increased transformer loading,

INDIAN SCENARIO
The domestic transformers industry is well established with ability to provide stateof-the-art equipments. The industry has the capacity to manufacture whole range of
power and distribution transformers including the REC rating of 25, 53,100 KVA and
also the extra High voltage range of 400 KVA, 600 MVA. Special types of transformers
required for furnaces, rectifiers electric tract etc and series and shunt reactors as
well as HVDC transmission Up to 500 kV is also being manufactured in the country.

After a brief discussion of the market transformation

opportunity for commercial and industrial transformers, this section uncovers the
roles played by the collaborators in this market transformation effort.
The Heavy Electrical Industry is capable of manufacturing transmission and
distribution equipment up to 400 KV AC and high voltage DC. Steps have also been taken
to upgrade the technology to the next higher systems voltage level of 800 Ky. Large
electrical motor used in Steel plants, Petrochemical complexes and other such heavy
industries are also being manufactured in the country. The domestic Heavy
Electrical equipment manufacturers are making use of the developments in the global
market with respect to product designs and upgrading of manufacturing & testing
facilities.
Distribution transformers

offer a largely untapped opportunity for efficiency

improvements in buildings. Application of energy-efficient equipment can reduce

transformer losses by about 20%, substantially cutting facilities Total electricity bill and
offering typical paybacks less than three years. Since nearly all of the electricity
powering the commercial and industrial sectors is stepped down in voltage by facilityowned distribution transformers, broad application of energy-efficient equipment will
lead to huge economy-wide energy and dollar savings as well as associated environmental
benefits. This opportunity has led to a multi-party coordinated effort that offers a new
model for national partnerships to pursue market transformation.

Electricity use by more than 3.2 billion kWh in 2012 for a savings of nearly $200 million.
7

Because transformers generally last a very long time, the 2010 savings represent only a
third of the total potential savings. Annual savings will continue to balloon as stock
penetration grows for another twenty plus years. Barnes et al. estimate that full
manufacturer participation and universal acceptance of equipment meeting a
recently

developed

voluntary

industry

standard

for

"energy-efficient"

transformers would yield energy savings approaching 2.5 quads over a 30 year period
1997.

STATE SCENARIO
Industrial Units manufacturing large plant and machinery required for powerful
generation, transmission, distribution and utilization are covered under the category
"Heavy Electrical Industry". These include electrical equipments such as motors,
transformers, switchgears etc. are used by all sectors of the Indian Economy. Some
major areas where these are used are the multi-crore projects for power generation
including nuclear power stations, petroche
mical complexes, chemical plants integrated steel plants, non-ferrous metal units etc. The
industry has been upgrading the existing technology and is now capable of taking up turnkey contracts also for export markets.
The existing installed capacity in the industry is of the order of 4500 MW of thermal,
1345 MW of Hydro and about 100 MW of gas based power generation equipment
per annum. There also exists capability for manufacture of equipment for nuclear
power plants in the country. The share of domestic equipment is about 66% in the
country's power generation capacity.
The Heavy Electrical Industry is capable of manufacturing transmission and
distribution equipment up to 400 KV AC and high voltage DC. Steps have also been taken
to upgrade the technology to the next higher system voltage level of 800 KY. Large
electrical motor used in Steel plants, Petrochemical complexes and other such heavy
industries are also being manufactured in the country.
The domestic Heavy Electrical equipment manufacturers are making use of the
developments in the global market with respect to product designs and upgrading of
manufacturing & testing facilities.
The capacity established for manufacture of various kinds of turbines such as steam &
hydro turbines including Industrial turbines is more than 7000 MW per annum.
Apart from BHEL, the public sector unit that has the largest installed capacity, there are
units in the private sector also manufacturing steam & hydro turbines for power generation
and industrial use. The manufacturing range of BHEL includes steam turbines upto 500
MW unit rating which they are planning to enhance up to 660 MW. They have capability
to manufacture Gas Turbines up to 255 MW (ISO) rating.
9

The domestic transformers industry is well established with ability to provide stateof-the-art equipments. The industry has the capacity to manufacture whole range of
power and distribution transformers including the REC ratings of 25, 53,100 KVA
and also the extra High voltage range of 400 KY, 600 MVA. Special types of transformers
required for furnaces, rectifiers, electric tract etc. and series and shunt reactors as
well as HVDC transmission up to 500 KY are also being manufactured in the country.
Industry is well equipped to cope with the requirements of the country's power sector
development programmers during the period.

10

2.1 TRANSFORMERS

A transformer is a voltage changer .The health of transformer industry

depends largely on the power generation and transmission sector. The major
user

of

this

Industry

is

the

State

Electricity Boards and Industries .The transformer industry in India has developed for over
50 yrs and has a well matured technology base .It has the technology to manufacture wide
range of power transformers , distribution transformers and special transformers for
welding ,traction and furnaces etc. Energy efficient transformers with low losses and low
noise level are also being developed to meet international requirement .The export and
import figure for the year 2007 were Rs 2923 crores and Rs 2523 crores respectively.
Transformer industry is divided into distribution, power and other type of transformers.
The demand for transformers comprises of the new demand as well as replacement
demand .About 95% of transformers used in Indian power network are of indigenous
make. New demand is depend on the new power generation capacities added. Currently,
India has an installed capacity of approximately 115000 MW. As per the planning
estimates, the installed capacity should be increased to 20000mw by 2012, majority of
which is to be installed within next 3 years .The replacement demand depends on the life
of the transformer and existing capacity in the economy. At the end of the sixth five-year
plan (1980-1985) a total of 3, 37,584 MVA of transformer capacity was added. Since these
transformers life exceeds 20 yrs, they are due for replacement.
Also Indian players in the engineering segment, foraying into turnkey projects overseas,
are further adding to the demand for transformers. The demand is expected to experience
double digit growth over the next few years.
On the other hand the production numbers indicate a death in supply. Though on a lower
base the supply has grown at a rapid rate over a longer period of time, it seems difficult to
match the rate of growth in demand for the year ended April 2006, production of
distribution transformers was 65,131,000KVA and 256,585 other transformers were
produced .In light of strong demand and stringent supply, the transformer manufacturers
are expected to enjoy strong order book along with firm margins.

11

The global price hike in transformer raw materials such as copper, aluminium, and oil
caused transformer prices to increase in India. Also, a shortage of cold-rolled, grainoriented steel is further escalating the price of this essential transformer core material .
With growing demand and price both rising, Indian manufacturers are finding it difficult to
maintain margins in the long term thereby transferring the burden of increased costs to the
end users.
The regulatory structure of the power sector has faced some uncertainties in India due to
the reluctance and failure of certain states to put the regulations into practice .furthermore,
utilities are confronting financial problems because of high transformation & distribution
loses , thus increasing their debt.
Despite these setbacks, the power sector in India is likely to remain buoyant, according.
Reforms in the sector and the enlargement of the power distribution network under Indias
Accelerated Power Development and Reforms Programme is driving the growth and
strengthening of sub transmission lines. In addition, the increase in transmission grid
reliability will result in heightened demand for power transformers.

12

CHAPTER -3
COMPANY PROFILE

13

COMPANY PROFILE

The Kerala Electrical and Allied Engineering Company (KEL) were established in 1964 in
the state of Kerala, India. It is fully owned by the state government. The corporate office
of the KEL is situated at Panampilly Nagar, Cochin. The Company has a wide range of
network of regional offices and regional offices and service centers located in most of the
major cities and business centers in India for effective marketing and provide efficient
after sales service for the product. The major regional offices and service centers of KEL
are at New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Cochin, and Trivandrum.
The company has progressively expanded its range of manufactured goods and services
over the years and has strategically broadened its customer base on an obi level. KEL
offers to its customers worldwide a comprehensive array of quality products and services
divisions with a manpower of over 1200 which includes over 250 highly qualified and
well-trained professional engineers.
The primary interest of a company is in the field of electrical equipment and machinery
encompassing areas such as generation, transmission, distribution, and utilization of
electrical power. In the generating equipment side , KEL is a leading manufacturer of
inductor type brushless alternators used for train lighting and air conditioning. In the field
of transmission and distribution of electrical power, the companys efforts have been
directed in the manufacture of transformers, switch gears, transmission line towers,
substation equipments and accessories. KEL is a leading manufacturer and supplier of
these items to various State Electricity Boards in India.
The company has adopted modern technology in association with modern reputed
overseas manufacturers, who are experts in the field. The technical collaboration with
EVR of France (now amalgamated with

ALSTHOMATLANTIQUE)

for the

manufacturer of inductor type brushless alternators, UNELEC of France for the

manufacture of HRC fuses and MOTEURS LEROY SOMER

of

France for the

manufacture of brushless ,ac generators.

14

COMPETITORS
In the national level the main competitors are Kirloskar Bangalore, Indo Tech Chennai,
and Crompton Greaves Chennai .In the State level, Intrans Ernakulam is the main
competitor. In case of high power transformers, the major competitor is TELK Angamaly.

MARKET POTENTIAL
In national level, KEL contributes to 5% for private sector and 6% for Government
Institutions which need when production is 100% . In the state level KELs market
potential is around 33% of the market requirement in private to 5% for private sector. In
KSEB and other government institution, KEL contributes to 70% of their needs.

MISSION
To constantly innovate through value addition for sustainable growth.

VISION
To be globally recognized enterprises committed to enhancing stake holder value by
providing world class engineering and power system solutions.

15

3.1 DIFFERENT MANUFACTURING UNITS

KEL TRANSFORMER & STRUCTURAL ENGINEERING
DIVISION.
The Transformer Division of KEL at Mamala, Ernakulam was established in 1969 with the
technical assistance of BHEL, to manufacture purpose quality transformer for various
State Electricity Board, Government Department, Public, and Private Sector Companies.
The Structural Division of KEL specializes in the design, fabrication and commissioning of
Hydraulic Gates and hoists and their controlling equipment used in Dams for power and
irrigation projects. The main achievement of this organization is that it consolidated its
position as a leading manufacturer in the field of electrical equipment. The next feature is
that it include aided design centre and the latest CNC machines amongst other Hi tech
manufacturing and testing facilities .It has a well organized Research & development wing.
It was incorporated in 1990 at its Head office Cochin .The Company also availed with
extensive marketing offices located in major cities. The main study is dealt with this unit at
Mamala.
The unit of KERALA ELECTRICALS AND ALLIED ENGINEERING COMPANY
LIMITED (KEL) at Mamala, Ernakulam has two divisions, which are Transformer
Division and Structural Division .The Transformer Division was established in 1969, with
the technical assistance of BHEL, to manufacture supreme quality transformers for
various State Electricity Boards, Government Department, Public, and Private Sector
Companies.
This unit has a vital share in manufacturing the Distribution transformers in the market.
The main reason is that electricity is that electricity is an inevitable factor of the modern
world. The Distribution transformer helps to improve the voltage capacity in electricity
distribution. It has 70% market share in Kerala alone.KEL facilitate the modern technology
for producing high quality transformers with foreign collaboration.
KEL transformer factory is one of the first few transformer factories in India, to get ISO
9001 certification. KEL transformers, approved by the national test house, various State
16

Electricity Boards and Power cooperation in the Country .The Transformer Division with
an annual production capacity of 6,00,000 KVA soon after its instruction, emerged has a
major role in designing and manufacturing
Distribution Transformers of rating up to 2000KVA,33KV class. Distribution Transformers
of rating up to 2000KVA,33KV class.
The Structural Division of KEL specializes in the design, fabrication and commissioning of
Hydraulic Gates and hoists and their controlling equipment used in Dams for power and
irrigation projects .Many Projects has been successfully executed by the Organization on a
turnkey base, all over India .Some of their major projects are listed below.
PROJECT NAME
FALCON MISSILE

CLIENT
R & DE ENGINEEYERS,

NATURE OF WORK
Vehicle mounted 62.5 KVA, 415

PROJECT
THRISSUL MISSILE

PUNE.
DRDO

V, 50Hz, 3 phase DG set.

50 KVA Dual output DG set

PROJECT
PRITHVI MISSILE

R & DE(ENGRS), PUNE

2 KW,3000rpm,DG set

PROJECT
PINAKA MISSILE

L&P

12 KW,30V,400A,Alternator

PROJECT
AKASH MISSILE

BEL

75 KVA,415 V,50HZ,phase

AIRFORCE

alternator
19KVA,415V,50HZ,3-phase

GENERAL

ARMY

alternator
30 KVA,220V,50HZ,3-phase

Radar Application

Air Force

alternator
100KVA, 220V, 400HZ, 3-Phase

Radar Application

Air Force

Alternators
250KVA, 400V, 50HZ, 3-Phase

SYSTEM
GENERAL

Alternators
Table no 3.1

PRODUCT RANGE
Distribution transformers of rating up to 3000 KVA, 33 KV class-of types such as
oil filled and resin impregnated dry type, on load tap changing with automatic
voltage regulation.

17

 Hydraulic gates, hoists and controlling equipment, fabrication of structural steel,

Railway bogies.

QUALITY POLICY OF THE COMPANY

Manufacture products to equipments, ensure prompt servicing and achieve continues
improvement .One of its main intention is to achieve customer satisfaction by providing
the right product and service at the right time, every time as per customers requirement.

OBJECTIVES FOR QUALITY

There are many objectives for quality in KEL, they are:
a) Conformance to documented quality system.
b) Team work and innovation.
c) Employee involvement.
d) Training and development.
e) Continuous improvement of products and services.

DELIVERY
KEL gives top priority to prompt and timely delivery of goods to meet customer
requirement. This policy is central to companys mode of functioning .This enables the
customer to restrict the escalation in project cost consequent to delayed delivery.

SERVICE

18

Customer service forms the basis of KELs success strong .KEL enjoys the patronage of a
large number of valued customers.

3.2 ORGANISATIONAL CHART

Board of Directors
G M MAMALA

19

G.M
PERSONAL
AND
ADMINISTRATI

G.M
FINANCE

G.M
MARKETIN
G

DGM STRUCTURAL

SM P&A
DEPARTMENT

GM
MATERIALS
AND
STORES
DEPARTMEN

G.M
PRODUCTION

G.M
DESIGN

DGM TRANSFORMER

SM FINANCE

MANAGER QUALITY
CONTROL

SM PRODUCTION

MANAGER
MAINTAINANCE

SR
MARKETIN
G

MANAGER
MATERIALS

20

DEPARTMENTS OF KEL

1 PERSONNEL & ADMINISTRATIVE DEPARTMENT

2 MARKETTING DEPARTMENT
3 DESIGN DEPARTMENT
4 PRODUCTION DEPARTMENT
5 FINANCE DEPARTMENT
6 MATERIALS AND STORES DEPARTMENT

21

3.3 PERSONNEL AND ADMINISTRATIVE DEPARTMENT

The success of any organization lies in its human resources .KEL has an
effective and efficient, fully fledged personnel department .HR strategy is carefully linked
to the vision, mission and overall business strategy of the company .The company has
separate orders for both workmen and office men .The selection processes of the
employees are taking place through the public service commission and the work men are
selected through employment exchange .After selecting the employees the personnel
department gives proper training for the job.

22

RECRUITMENT RECRUITMENT is the process of searching for the prospective

employees and stimulating them to apply for jobs in the organization .Recruitment is
based on integrity, competency and ability to work in a team .The firm selects individuals
having the ability to do the concerned job .KEL has adopted the centralized recruitment
System .The recruitment and selection proceedings are conducted at the head office of the
company and this method provide certain advantages to the company.
The department conducts training programs for the management personnel, technical
personnel, supervising staff and the department heads.
The company has different methods for Recruitment .That is given below:

1. ADVERTISEMENT
The major Recruitment is done through Advertisement in the Local or National
press, and trade or professional journals .The requirement for the job will be
clearly stated in the ads.
Manager gets wide range of candidates who were suiting for that job.

2. EMPLOYEMENT EXCHANGE
Mainly the recruitment is done through Employment exchanges .The vacancies
may be notified with the Employment exchanges, whenever there is a need, the
exchange supplies a list of suitable candidates, from which the organization can
select according to their requirements.

3. PROMOTION
It is a process by which an employer is shifted from current position to a position
carrying better prestige. Seniority is a major factor for Promotion. Promotion is
mainly done based on the Qualification, Performance, and experience of the
employees or employers.

4. TRADE UNION
23

KEL Mamala has also recruited employers and staffs using trade unions .KEL
Mamala has 3 trade unions they are:

KEL EMPLOYEES UNION

KEL EMPLOYEES CONGRESS

KEL EMPLOYEESASSOCIATION

5. TRANSFER

The transfers dont include any change in rank .The no: of persons will not be
increased by transfer but the vacant seats will be filled .The transfer is based on an
agreement between the Management and the Trade unions.

SELECTION & TRAINING

Selection is the process of picking up a suitable candidate for the job Selection is
based on qualification and experience .Training is the act of increasing the
knowledge and skill of an employee for doing a particular job.

24

SELECTION PROCESS

25

 TRANSFER AND PROMOTION

The selected staff will be transferred to different units of this organization where
the staff in need .Transfer and Promotion is made to the vacant seats when ever suitable
candidates with prescribed qualification and experience are available .Promotion is made
only to the next higher posts .When suitable candidates are not available within a
particular division to fill up higher post in the same division, then the post is filled by
external sources.

APPRAISAL AND INCENTIVES

There is no type of performance appraisal system in KEL. KEL is not providing any type
of incentives and employees are dissatisfied due to this.

CANTEEN FACILITY
The canteen facility is provided to each and every employees and staff of KEL .Each and
everyone has to pay Rs 30 for tea which is supplied twice a day and for the lunch.

PUNISHMENT FOR MISCONDUCT

An employee who is guilty of misconduct will be availed with one of these
punishments.

Warning

Stoppage of increment

Withheld of future promotion or grade.

Reduction in present grade.

Discharge from the service.

Dismissal.

26

SHIFT TIMINGS
The shift timings of employees of KEL are:
Staffs

Days

Timings

Week days

8.30am- 5.00pm

Saturdays

8.30am-1.30pm

Administrative staff

12.30am-8.00am
Week days

8.30am- 5.00pm
4.30pm -12.30am

Employees in Production dept

Saturdays

8.30am-1.00pm
1.00am-4.30pm

Table no 6.1
Human resource department in KEL is differentiated into Executives and Non Executives. The
divisions and its level is also provided in the table.

27

28

KEL EMPLOYEES WELFARE FUND SCHEME

The scheme is called KEL employee welfare scheme because it is furnished for the welfare
of the employees and employers .The scheme was introduced in 01/04/1996 .These
regulations are applicable to all permanent employees who opt to be member of the scheme
as per the rule of the scheme .The Welfare fund is adopted from the contribution of the
employees and management and other sources .This will be utilized for the welfare of the
employees who are the members of the fund and for their development.

All existing members will contribute Rs100 as one -time payment

.The membership fee is Rs 100 for joining to this scheme.

All employees will have to contribute Rs 10 per month or the amount

as decided from time towards fund.

Donations and grants may be accepted, if forthcoming to this fund.

If any defaulted contribution is due from a member, such arrears shall

be recovered from money payable to him.

EMPLOYEE BENEFITS
The company has provided some kinds of benefits to its employees .They are:

1. PERSONAL LOAN
Those employees who have no dues with respect to previous personal loan
amount are eligible for personal loan and an amount up to Rs 1000 shall be
sanctioned by the Ex-officio Secretary .This will be sanctioned on Tuesday and
Friday. This amount will be deducted in 10 equal installments of Rs 100/- each,
along with a service charge of Rs 6. Further loan amount will be sanctioned
subject to the repayment of loan.

29

2. MEDICAL LOAN
In case of any personal requirements money for the member is entitled to get a
loan amount up to Rs 500.The application of loan amount duly forwarded by one
of the committee member has to deduct from the salary or wages of members in 5
equal installments of Rs 100 each along with a service charge of Rs 3/month.

3. EDUCATIONAL SCHOLARSHIPS
Members children who got high marks in the consecutive exams (not less than
60%) of IV, VII up to SSLC level will be eligible for obtaining cash award from
the fund, subjected to the availability of fund.

4. FUNERAL BENEFITS
In case of death of spouse, children and parents an amount of Rs 200 shall be
granted as funeral benefits .In case of death of members ,an amount of Rs 500 will
be granted,
To the family of the deceased member and sometimes his job will be offered to his
dearness, if he dies before his retirement.

5. MARRIAGE LOAN
For the marriage of daughter of the member, loan amount up to Rs 5000 shall be
sanctioned. A service charge of 8% will be recovered amount so sanctioned. This
will be deducted in equal monthly installments .This loan will be restricted for
marriage of one daughter at present depending up on the availability of fund.

6. RETIREMENT BENEFITS
An employee who is superannuated or retire voluntary or compulsory
otherwise than as a measure of disciplinary action or invalidated from service
during the period specified below, shall be eligible for retirement benefit.
Up to 5 year

- his contribution and interest @ 12%

5 to 10 year

- Rs 5000 maximum.

30

11 to 15 year

- In addition to Rs 5000, Rs 100 per year of service after

10yrs.
16 to 20 year

- In addition to Rs5500, Rs 200 per year of service after

20 years.

7. DEATH BENEFITS
A Lump sum payment of minimum Rs 5000 will be paid to the legal heir of an
employee who dies while in service.

LEAVE FACILITY
All permanent employees will be entitled to one months privilege leave for every year of
service cumulative up to 60 days provided, however, that privilege leave will not accrue
during the period of leave availed .Privilege leave will not be availed for a period of less
than 10 days at a time.

1. CASUAL LEAVE

An aggregate number of 14 days casual leave with full payment will be allowed to
an employee during one calendar year.

For period less than one calendar year of service, proportionate casual leave may
be sanctioned.

Casual leave will not be accumulated beyond the end of the calendar year
To which it relates.

2. FESTIVAL HOLIDAYS
The employees are provided with 13 holidays in CALENDER YEAR

31

3.4MARKETING DEPARTMENT

KEL has adopted general feature of marketing .The product segment is directly connected
with the customers :KEL displays advertisements in certain electrical journals only. They
have reorganized regional centers in various major cities .It is also captures orders through
canvassing customers .The company also employees certain outside agencies which
canvass order for it .
32

FUNCTIONS PERFORMED BY THE MARKETING

DEPARTMENT
Evolve adequate marketing policies.
Ensure the availability of required orders.
Fix competitive prices.
Make sure the payment before dispatching the product.
Provide after sales service to the clients.
Ensure the optimum utilization of resources of available to the company.
Reviewing enquiries, traders, contracts, and contract amendments.
Communicating with customers.
Coordinating servicing.
Maintain invoice register.

33

POLICY
To establish and maintain a process and procedure to obtain orders by identifying customer
requirement regarding products and service.

TARGET FOR THE YEAR 2012-2013

The target for the marketing department for the financial year 2012-2013 is
38 crores.The marketing department of KEL aims to promote its product among customers, which
helps in to obtain substantial sales order .This in turn is communicated to the production sub
system which is concerned with the management of physical resource for the production of an
item or provision of a service.

In manufacturing a product KEL is standing in a good position .In the distribution activity and in
the transformer manufacturing it has an 39 years of experience .It is directly connected with its
customers and concentrates mainly on the quality of product and finishes the work as quickly as
they can.

MARKETING PROCESS
Through newspaper KEL collects its tender with specification and after will prepare the
quotation .The document will be forwarded to the Design department of KEL .Up to 25 lakhs the
tender is accepted and the approval of Head Office is required for it .Then the unit will submits
competitive quotation and if its found as the best the company gets the tender .Then company
issues an order acceptance letter to the customer .Next ,the marketing department prepare a sale
order and issues to all department which take part in the production .Based on the letter ,the
structural design and process design is prepared by the Design department .The purchase of
materials to the production floor or to store is by Material department .Then the production is
started .
At the end of the completion of the production of transformer, inspection and dispatch function
are carried down .After the completion sometimes private companies like Tata Tea, Bombay
Suburban Electrical Ltd .etc conduct the inspection at the production floor .With the specification
of the tender the dispatch is carried out .The Company also provide after sales service.

34

For a period of 12 months from the date of commissioning or 18 months from the dispatch the
company guarantees the product .And after that the company will provide service on chargeable
price i.e. 1500 per head.

MARKETING NETWORK

KEL products are marketed by extensive networks of marketing officials located in all major
cities like New Delhi, Mumbai, Kolkata, and Bangalore etc.
They provide all support services to the sale and marketing service to guarantee complete
customer satisfaction .The KEL has a wide network of regional offices, services, and business
centers located in most of the major cities in India for effective marketing, and providing efficient
after sales service.

35

3.5 DESIGN DEPARTMENT

FUNCTIONS PERFORMED BY THE DESIGN DEPARTMENT
a) Receipt the sale order from transformer marketing.
b) To ensure that the standards of the design.
c) Receipt of tender documents from the transformer marketing.
d) To ensure that the competition of design work within a specified period of time.
e) Establish and maintain the process for the design work by taking the requirements
of customers.
f) Ensure that the feedback forwarded to transformer production section.
g) Design planning, controlling, and responsibility assignment, input and design
storage reviews.
h) Authorizing, designing, verification and initiating design changes.
i) Assign responsibility for designing.

j) Approve design outputs.

POLICY
The main policy undertaken by the design department is: To establish and maintain a
process for an optimum design conforming to customer requirement and relevant standards within
a specified time.

36

DESIGN PROCESS

It obtains the tender document from transformer marketing

It also obtains estimates and technical specifications from the transformer marketing.

DESIGN - I STAGE: Preliminary Design for Marketing Quotation

It studies the specifications of the product included in specific tender received from the
Marketing Department.

It enquires the current price of raw materials and components from Materials
Department.

This department estimates for the product as per the technical specification furnished
by the Marketing Department.

It sends the cost and guarantees technical specifications to the Marketing Department
for tendering purposes.

DESIGN-II STAGE: Actual Design of Product.

Receipt of sales order from transformer Marketing Departments.

Issue of advance intimation to production planning.

Make the detailed design of transformers and drawings as per the order.

Issue of Production drawings, specifications, and list of drawings to planning.

Feedback from the transformer production section to Design on time to time for
manufacturing the product with customer specification.

Feedback from the Test result from Quality Assurance-Test is normally conducted in
the presents of the customer consultant or representative

Test results are to be recorded and kept in a file for future reference by the Design
Department.

Design change intimation to planning from design

37

3.6 PRODUCTION DEPARTMENT

38

KEL Mamala unit has one production department .It holds two departmental sections,
which are planning section and Quality Assurance section .The Company has two
production units which are Transformer Division and Structural Division.

FUNCTIONS PERFORMED BY THE PRODUCTION

DEPARTMENT

They issue work order and amendments.

They coordinate release of drawing and bill of materials.

They make sure the work allocation in effective manner.

They check the progress of work.

They ensure that the work is progressing for achieving the target.

They maintain the Quality of product.

They carry out the preventive and break down maintenances.

MAIN RAW MATERIALS OF PRODUCTION OF

TRANSFORMERS ARE:
a. Core
b. Copper
c. Mild Steel
d. Press Board
e. Transformer oil

39

1 .PLANNING SECTION
The planning section holds the fundamental function of planning for each
stage in the manufacture of transformer .Structural production is planned on the sale
order from marketing and design department.

POLICY
The policy of Materials Department is To plan, to organize and coordinate the
activities to achieve the planned production within the set time frame to the needs of the
organization.

ISO 9001
Specifies the quality system requirements for use by the supplier when a contract
between the customer and the supplier requires the demonstrations of the
suppliers capability to design, produce, install and service a product .The main
requirements of ISO 9001 aims primarily at preventing non conformities at all levels of
production and after sales servicing.

FUNCTIONAL OBJECTIVES
a. To reduce inventory carrying cost with respect to turnover.
b. To increase material availability with respect to turnover.

FUNCTIONS PERFORMED IN PLANNING SECTION

1) Production planning and Material planning.
2) Monitoring program against work order.
3) Make an adequate planning for production process.
4) Planning should be goal oriented.

40

PRODUCTION
The company has two production units which are Transformer division and
Structural division.

TRANSFORMER DIVISION
There are 86 workers in the transformer division and the production manager
controls them .For producing a transformer labor charge amount to 22% ,raw material
amounts to 63% and other overhead expenses amounts to 15% of the total cost .There are
nine stages in manufacturing a transformer .In each stage a changed hand controls the
activities in that particular stage.
These stages are:
a. End Frame(Fabrication)
In this stage the frame is cut in the shape of E .Silicon steel is cut in an E shape for frame
fabrication.
b. Insulation and Assembly
The insulation is done in core building, HV winds and LV winding. The press board is used
for insulation work .Insulation helps to overcome the occurrence of short circuit.
c. Core Building/Assembly
The core has been laminated with CRGO (Cold Rolled Grain Oriented) lamination
.Because of this the core will be free from any short circuit.
d. HV Winding
The conductors is wound and insulated and with double paper grade strip
winding produces high voltage electricity has to be transmitted or distributed.

e. LV Winding

41

Low voltage Coil is wound with double paper grade strip .This strip reduces the possibility
of short circuit .This coil consists of low voltage electricity which comes from
outside.

f. T.G.Mounting (Terminal gear)

The LV Winding terminals are fixed in to a bush .The terminal gear is built with copper or
aluminium.
g. Tanking
The fabricated tank has been made available through sub contracts from the
structural division .The dried TG Mounted coils are put in the tank .Then the
tank has to be filled with oil .Then tightening takes place.
h. Final testing
When the production process is completed, final test is conducted by the company
supervisor.
i. Painting and Dispatching
The final stage is dispatching the transformed .Sometimes in this stage the customer may
inspect the transformer .After the payment is made by the customer,
dispatching the transformer is done as per specification of the tender.

PRODUCTION INFRASTRUCTURE

The infrastructure needed to design ,manufacture and install products as per

customer requirements are identified and provided .Infrastructure includes building
,utilities ,machines ,inspection ,and testing devices ,standers and codes ,software and
supporting services .Preventive maintenance and upkeep of the infrastructure is done or

42

ensure the capability of the infrastructure to meet customer requirements .when a break
down occurs immediate corrective action.

All statutory and regulatory requirements regarding the manufacturing and installation of
products

and

environmental

regulations

are

duly

compiled.

43

STRUCTURAL DIVISION
The structural division holds One Manager, Production Engineer, and Assistant
Production Engineer, Foreman, and Charged hands.

POLICY
The policy undertaken by the Production Department is: To establish customer
satisfaction through proper planning, manufacturing, installation, and commissioning, as
per specification.

FUNCTIONAL OBJECTIVES
o To reduce rejection by reducing welding defects.
o To reduce the waste of material using scraps available.
There are several machines working under this department, an on each machine a
gang is working .Each gang consists of 3 workers .They are headed by a charged
hand. The Gang consists of a Welder, a Fitter, and an unskilled worker.

The machine used in this department includes:

1. GEAR HOBBLING MACHINE It is used for gear cutting.
2. MILLING MACHINE

- Slots, plane milling etc used for cutting

3. LATHE MACHINE

- For forming Tread.

4. VENDING MACHINE

- Used for 12mm pipe bending.

5. GILLETTE MACHINE

- For cutting Palates up to 12mm.

6. PRESS BREAKER MACHINE - Used for drilling the Palates.

7. MUG WELDING

- It is used for welding

MAJOR PRODUCTION PROCEDURE

44

a)

Marking

b)

Cutting

c)

Drilling

d)

Bending

e)

Setting

f)

Welding

g)

Surface preparation

h)

Straightening

i)

Painting

j)

Keeping

2. QUALITY ASSURANCE SELECTION

The main function of the Quality Assurance Section is to test the quality of the
product. They should ensure that the product is of good quality.

FUNCTIONS PERFORMED IN QUALITY ASSURANCE

SECTION
1. Approval of sub contract.
2. Carry out sub-contractor performance evaluation.
3. Identify non conforming products.
4. Stop further processing of non- conforming products.

The methods used by the department is

45

o Receiving, inspection, and testing.

o In processing inspecting and testing
o Final inspection and testing.

o Calibration of the equipments.

o Inspection and testing status.
o Control, review, and disposition of non conforming products.
o Application of statistical techniques.
o Corrective action review.
o Release of final products.

FUNCTIONAL OBJECTIVES
Their objective is to reduce the quality related customer complaints after delivery of the
products.

3. SAFETY AND ENVIRONENTAL CONTROL

KEL Mamala Personnel and Administration holds full responsibility of this
procedure .This is intended to ensure safety status of operating machines and equipment
installation to maintain safe working places.

46

MACHINES EQUIPMENTS AND ELECTRICAL

INSTALLATIONS

Maintenance department maintain an updated list of pressure vessels and

equipments as authorized by the production department with the preview of safety
maintenance.

The pressure vessels are prudently maintained and got tested and certified by the
designated authority of inspectorate of the factories as per regulations.

Cranes, hoists, and chain pulley blocks are inspected once in a year by an agency
approved by inspectorate of factories and test certificates are maintained.

Electrical equipments are inspected annually by the electrical inspector and defects
are rectified by the licensed contractor.

PERSONAL SAFETY

Employees working in hazardous area or activity in factory, use safety gadgets

namely helmets, safety shoes, gloves, and safety belts.

Visitors when permitted to enter the factory work area provided with gadgets
needed as appropriate.

Persons working on roof and structure use safety belts compulsory.

FIRE AND SAFETY

Fire extinguishers are checked at specified intervals and refilled or replaced when
necessary.

Location wise fire extinguishers are maintained by P& A d

47

3.7FINANCE DEPARTMENT

The financial transactions of KEL are regulated by the FINANCE DEPARTMENT .To
find the operating results ,financial position future prospects and other many objects , the
company prepares the profit and loss account ,Balance sheet ,Financial Performance
Statements ,and Employee Cost Analysis etc.

48

ACCOUNTS AND DOCUMENTS

According to Sec.209 of The Companies Act clause, the companies have to keep proper
books of accounts:1. All sums of money received and spent by the company and the matters with in
respect to which the receipt and expenditure take place.
2. All sales and purchase of goods.
3. Companys assets and liabilities.

SOURCES AND USES OF FUND

The finance manager of the company collects the fund through the sales
of product, from head office and other sources .The unit manager has a limit to
deal with the fund up to Rs. 2000000 .More than the limit; he needs permission
from the corporate office .The inevitable factor of the finance department is Payroll
or salary administration.
By two ways the salary administration is conducted:
1. For employees and clerical staff under Industrial Dispute Act.
2. For Managerial staff under Kerala Government department rule3.
1. For employees and clerical staff under ID Act
The salary for employees, it includes the Basic pay, Dearness Allowance, House rent
allowance, Fringe benefits (Attendance Allowance or Milk Allowance) ,Night Shift
Allowance ,Washing Allowance ,Risk Allowance ,and Overtime Allowance .The net result
of these is known as GROSS SALARY.
Fringe Benefits are the allowance which includes the Attendance Allowance or Milk
Allowance .Based on the agreement between management and trade union it is available
to employees .4 years is the period of agreement .For the fringe benefits the attendance is
taken from the16th of the month to 15th of the month .Change of Allowance is Rs.2.50 per
day for an employee .
49

The attendance is taken from 1st of the month to 31st of the month for the calculation of
basic pay and dearness allowance .Based on the salary scale of the company the Basic Pay
is calculated .Dearness Allowance is an industrial dearness allowance or variable dearness
allowance .D.A is changing every month, this change depends up on the point differs
every month.
Overtime Allowance (OT) is provided to the employees, who undertake the overtime work
.For the calculation of overtime the attendance is taken as the 16th of the month to 15th of
the month .Working time per day is 8 hrs.

a. Provident Fund(P.F)
According to the PF Act 1952, the PF contribution is deductable from the Gross
Salary .Both the employee and employer pay 4.75% of his wages to PF .This PF
contribution is followed to PF department.

b. Employees State Insurance(ESI)

The ESI is a contribution scheme ,with the employer paying 4.75% of wages and
the employee contribution is 1.75% of wages to the fund .The ESI facility avail the
employees who has a salary up to Rs.15000 per month .
The net salary for employees and clerical staff by way of deducting the total
deduction from the gross salary.ie Net salary=Gross salary-Total deduction.

2 .For managerial staff

The salary scale and Dais fixed for managerial staff based on Kerala Government
Department Rule .When the Government declares certain rate of DA to managerial staff
,this will be distributed after the recognition of board of directors .If the Board permits
tothe distribution of DA ,then that will be distributed to the managerial staff .Gross salary
includes Basic pay ,DA ,and HRA .

50

ACCOUNTING POLICIES OF THE COMPANY

1. Accounting Conventions
The financial statements are prepared under historical cost convention on
accrual basis and in compliance with The Companies Act 1956.

2. Fixed Assets
Fixed Assets are stated at cost less depreciation .Assets and liabilities are
consistently being recorded at historical cost.

3. Depreciation
a. Depreciation on fixed assetshas been provided as per the rate indicated in
schedule XIV of the The Companies Act ,1956 under written down value method.
b .Extra shift depreciation for double shift and triple shift working has been
provided in the account.
c. Depreciation on fixed assets in respect to project work in progress has not been
charged in the accounts since the project has kept in abeyance as per Government
direction.

4. Inventories
A .Finished goods are valued at cost or market price ,which ever is less for
arriving at the cost ,and excise duty is also taken into consideration.
B .Work in progress is valued at the cost after considering overheads
excluding financial charges
C .Raw materials ,material in progress ,Spare ,Stores and loose tools are
valued at cost .Cost means weighted average.
D .Scraps are valued at realizable value.

51

5. Sales
A .Sales comprise sale of goods and service and includes Excise Duty.
B .Price valuation claims on sales affected are accounted for on accrual
basis.
C .The reprocessed transformer oil is accounted at current purchase Prices
by crediting the differences to miscellaneous income.

6. Consumption
A .Loose tools issued to shop floor are treated as consumed and written off
as such.
B .Consumption of materials for production is completed on a derived
basis.

7. Retirement Benefits
Gratuity and leave encashment are accounted for an accrual basis in
compliance with accounting standards .The amount was determined on the
basis of actuarial valuation conducted at the end of the year .As noncumulative portion of leave encashment is not applicable to the company
the same is not considered.

8. Liability on Material in transit

The liability on account of the bank charges and other expenses on
materials in transit on the date of closing is accounted on accrual basis.

9. Research and development

Capital expenditure on research and development is treated as addition to
fixed asset and revenue expenditure on R&D is charged to Profit & Loss
account under appropriate heads in the year in which it is incurred.

52

10.Contingent Liability
Contingent liabilities are not provided for ,but disclosed in note on
accounts.

FUNCTIONS OF FINANCE MANAGER

Estimation of capital requirements.
Ensuring a fair return to the investors.
Make sure the suitable availability of funds.
Laying down the optimum and suitable capital structure for the company.
Adequate control of cash flows.
Preparation, analysis, and interpretation of financial statements.
Facilitate maximum utilization of funds.
Scrutinize claims and recommend payment.
Issue of invoices against dispatches.
Prepare finance and accounts matters.

53

CAPITAL STRUCTURE
KEL has 40000000 equity share of face value of Rs.10 each .The issued subscribed and
paid up shares are 3405937 .Through shares it is fully paid up .This includes 6032350
equity share held by Kerala State Industrial Enterprises Ltd .and 317743 equity share
allotted as fully paid up for consideration other than cash

CAPITAL STRUCTURE OF KEL LTD

Particulars

Amount

Authorized Share Capital

(4,00,00,000 Equity share of each)

40,00,00,000

Issued Subscribed and Paid up:

34059371 Equity share of Rs 10/- Each fully paid
(This include 317443 Equity share allotted as fully
paid up for consideration other than cash)

34,05,93,710

Advance for Share Capital

34,31,87,064

3.8 MATERIAL AND STORES DEPARTMENT

54

KEL has a material and stores department which purchase the materials for the for the
companys production .The material department ensures that good quality material is
purchased at reasonable price .The company has an ideal material Control system .KEL
follows the ABC Analysis for the control of materials . A value materials are purchased
against order; B values are also similar method .But C values materials which require
minimum control is maintained at minimum stock level .The purchase procedure of
materials is as shown below .

FUNCTIONS PERFORMED IN MATERIALS AND

STORES

Sub-contractors approval and codification.

Purchasing of material.

Storage and preservation of purchased products.

Ensuring re-inspection of store and products.

Release of purchase order amendments.

Control receipt and issue of materials.

Prepare monthly inventory statement.

55

PURCHASE PROCEDURE
MATERIAL PURCHASE
1. Maintenance and structural division maintains and updates a master list of purchased
products/services within the scope of this procedure .Such lists are approved by
material department.
2. Material department documents and maintain purchasing requirements as guidelines
duly approved by the General Manager.
3. Purchase is made from sub-contractors approved as per quality specification 1.
4. Where purchase are required to be made from sub-contractors not within the approve
lists, such list are approved by the General Manager through Waiver notes.
5. Purchase activity is initiated against purchase requisition/Purchase notice from user
departments.
6. Purchase requisitions is raised in respect of requirements specific to the production
and purchase notice is raised in respect of standard products for which recorder level
are identified
7. The mode of purchasing such as inviting quotation, and bid evaluation or direct
purchase is based on the documented purchasing requirements guidelines.
8. Purchase is authorized by a committee consisting of General Manager, Material
Finance and Accounts and the user departments representatives.
Depending on the assigned authority in relation to value when enquired, the
authorization obtained from the corporative office through Purchase approval form.
9. The particulars of purchase committee approvals are maintained in the Purchase
Committee Approval Register.
10. On finalizing purchase on the basis of guidelines/authorization, purchase order is
raised and purchasing data is verified for their correctness by the designed personnel in
the department.
11. A purchase order check list is prepared in evidence of verifying the purchasing data.
56

12. The purchase order is made in 6 copies .The copies are made available to Materials,
Quality Assurance, and Finance and Accounts department .Two copies are for retention
with Maintenance and Structural division.
13. The purchasing activities such as release of purchase orders, progress in supply of
products and results of receiving verifications are recorded and monitored with the aid
of Purchasing Monitoring Register for all purchase made in the structural divisions and
for purchase of lamination, conductor and radiator and current transformers for the
transformer division.
14. The purchase order is raised in respect of purchase against already made authorization.
15. Cash purchases are made without raising purchase orders is limited to Rs.5000 on
approval of requisition of cash purchases by materials.
16. Purchases by sub contracting process are made on the basis of quality specification.
17. Verification of sub contracted jobs items are carried out by the sub contractors
premises is required.
18. The verification of purchases products at sub contractors premises or company
premises.
19. Requirement either of quality assurance or customer or customers agents .It is also
clarified to sub contractor that verification but quality assurance provide acceptance
,in receiving inspection and testing .Where purchase order is amended or a super
sending purchase order is issued with same number of copies and distribution as in
above description.

MATERIAL RECEIVING, STORAGE, PRESERVATION,

AND ISSUE PROCEDURE
57

1.

Store in charge receives copies of purchase order from materials.

2.

On receiving materials against purchase orders, the accompanying documents such

as Lorry receipt, Invoice, Transport copy of invoice where applicable, Test certificates and
bills of Entry in case of imports are verified by the store keeper are its found in order,
items are received and entered in Goods Receipt Register.
3.

Security permits the carriers into the company premises on verification of

document and entering the verified details in the register.

4.

On receiving Transformer Oil Tanker, the store keeper prepares Goods Received

Note (GRN) and passed to Quality Assurance only after it is passed by Quality assurance,
the oil is unloaded.
5.

In respect of other materials, the store keeper prepares GRN prior to inspection.

6.

All received items are accounted as per Goods Received Register.

7.

GRN prepared in 6 copies .5copies are sent to quality Assurance for carrying out

inspection and testing and endorsements of results.

8.

Quality Assurance endorses the test status, retains one copy, and forwarded

copies to store in charge.

Materials received as barrels or drugs cartons, carboys, bag, bundles, rolls, sheets or rods
or flat are controlled with aid of work instructions.
9.

Oil received in tanks is transformed to identify storage tank by pipelines.

10.

All materials are secured as per storage plan, updated and authorized by materials.

11.

Materials are stored in sub stores attached in to each production area.

12.

The storage plan indicates locations of storage area of steel items on open yard, oil

in tanks and sub stores.

13.

The identifications or status of just received materials, past or rejected materials

and NC procedures are per quality specification.

14.

The non confirming materials are controlled as per specification.

58

15.

Only materials passed in inspection are taken into KARDEX.

16.

Item held in storage for more than the specified period is subjected to re-inspection

and testing as per work instructions for re testing of stored products prepared by
materials.
17.

The preservation of product in storage is achieved by specifying appropriate

controls and application of preservation as documented by Quality Assurance issue of

stored items to the user departments or sub contracted production units is made against
stores Requisition or Loan note.
18.

The expiry date, where applicable, is verified prior to issue.

19.

The quality of transformer oil held in tanks is assessed referring KARDEX or stock

and issue register.

20.

Excess quality return to the stores by used departments is accompanied with Store

Return Note, for accenting in KARDEX.

21.

Items take out for processes are returned and controlled with returnable gates pass

or gate passes for job work.

22.

Where stoke is held in store below the minimum or reorder level, purchase

activates are initiated by stores in charge.

23.

A monthly inventory statement is prepared and sent to Planning or Production or

Finance and Accounts.

24.

They activate handling, storage, identification, control of non conforming products

and issue of materials under positive recall procedure are carried out as per work
instructions.

59

CHAPTER 4
SWOT ANALYSIS

60

SWOT ANALYSIS
SWOT analysis is a simple framework for generating strategic
alternatives from a situation analysis. It is applicable to either the corporate level or the
business unit level and frequently appears in marketing plans. SWOT stands for Strengths,
Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late
1960s by Edmund P. Learned, Kenneth Andrews, and William D. Guth. The general
Electric Growth Council used this form of analysis in 1980,s.
SWOT analysis is a tool for audit an organization and its environment.
It is the first stage of planning and helps marketers to focus on key issues. A scan of the
internal and external environment is important part of the strategic planning process.

In this segment we are dealing with the following aspects:

STRENGTHS OF KEL
WEAKNESSES OF KEL
OPPORTUNITIES TO KEL
THREATS TO KEL

STRENGTH
It has highly qualified personnel.
Direct control from the part of Kerala Government.
KEL provide inevitable and valuable services to society.
The company manufactures good product without any delays.
It maintains good industrial relations.
It has got good infrastructural facilities.
61

 It ensures quality of products.

WEAKNESS
Modern technology and machines are not adopted.
Adequate technology of material processing is not exercised.
The company has not adopted the new methods of accounting.
Lack of qualified personnel in some areas.

OPPURTUNITY
It can adopt new technology in production.
It can adopt new method of accounting.
It can buy quality materials and maintained an effective material control.

THREATS

Competitors like BHEL, Crompton greaves, etc.

Availability of raw materials

62

FINDINGS
1. KEL is one of the biggest Public sector unit companies in Kerala
2. KEL offers to its customers worldwide a comprehensive array of goods and
services through its various divisions
3. Products are marketed through an all India network of marketing team to
guarantee complete customer satisfaction
4. KEL is a company engaged in multi furious activities
5. KEL has a manpower base of about 1000, which include 150 qualified and well
trained professional engineers
6. The order book position in respect of the Current transformer, potential transformer
& voltage transformer are comparatively rather less.
7. Some of the supervisory cadre posts are yet to be filled.
8. Engineers and Professionals with more than 20 years of experience are still in the
middle Management level.
9. The efforts on the part of the company to fill up the vacancies are found to be not
up to the mark. But it has been observed that the company has recently made
strong effort in this ground noting the above lacunae.

63

RECOMMENDATIONS AND SUGGESTIONS

Based on the study I would like to put forth certain suggestions.

There should be a proper target to be set in consultation with the employees

Proper training should be given to all the employees

The management has to take a proper decision to make use of the vacant land in the
companys compound

Production to be increased by using the same force by offering incentive. This will
help to get more output for the management and more earning to the employees

The purchasing and stores have to work in such a manner that the scheduled
production can be fulfilled within the period envisaged by the customers.

The timely training and development to the various staff need to be arranged by the
HR department.

Timely recruitment of staff and imparting those selected afresh are found to be vital.

Environmental scanning in the proper level to cope with the changing market scenario
and technical advancement are required in a suitable manner.

Welfare activities to the workmen are to be some more improved with a view to
improve the quality of work life.

In fact, officers should be given a column to exhibit their major contribution, which
led to an overall improvement in the performance of the organization.

The Officers should also be given a chance to express their requirement of training and
refresher courses to improve the performance.

64

CHAPTER- 5
CONCLUSION

65

CONCLUSION

Organization

Study

conducted

in

KERALA

ELECTRICALS

AND

ALLIED

ENGINEERING COMPANY LTD, MAMALA Unit helped me in understanding the

structure and functions of the organization. The overall performances of all the
departments like finance and accounts, personal & administration, marketing, design,
materials & stores, production are functioning professionally and efficiently managed. The
joint effort of all the employees plays a major role in the development of the organization.
The company should improve its sales promotional activities. Give more
worker participation in decision making process. Company should request financial
assistance from the government for avoiding cumulative loss. The company should be
more competitive against private firms. Adequate control of material is necessary.
Company has to adopt new technology in production. Minimize the core loss of current.
The Kerala Electrical and Allied Engineering Company Ltd. is being one of the biggest
public limited companies in the state of Kerala, is doing great help to the nation by
providing very important and essential equipment to various industrial concerns and
various electricity boards in India. Company has got ISO 9000, 2000 etc. for its excellent
functioning. The experienced group of directors, efficient management team and highly
dedicated employees are the most precious blessing of the company.
The company has to adopt new technology in production. They should manufacture
energy efficient transformers by minimizing loss of electricity.

Company should be in touch with the market with the market and customers through
researchers to monitor the changes taking place in the market. Through this the firm shall
achieve much more in the coming years.
66

BIBLIOGRAPHY
Online references
1- WEBSITE OF KEL http// www.kel.com
2-ANNUAL REPORTS OF KEL
3-www.kerala.gov.in
4-www.kel.co.in
5-www.resitechelectrical.com
6-www.intranselectro.com
7-www.investmentz.co.in
8-www.telk.com

Books
Quality manual Kerala Electrical and Engineering Co Ltd
Principles of Management TRIPATHI P.C, year of publishing 2008
Marketing Management PHILIP KOTLER, 12th edition, year of publication 2009

67