INDIAN SCENARIO

Farm mechanization helps in effective utilization of inputs to increase the

productivity of land and labour. Besides it helps in reducing the drudgery
in farm operation. The early agricultural mechanization in India was
greatly influenced by the technological development in England. Irrigation
pumps, tillage equipment, Chaff cutters, tractors and threshers were
gradually introduced for farm mechanization. The high yielding varieties
with assured irrigation and higher rate of application of fertilizers gave
higher returns that enabled farmers to adopt mechanization inputs,
especially after Green revolution in 1960s. The development of power
thresher in 1960, with integrated Bhusa making attachment and aspirator
blower and mechanical sieves for gain and straw separation, was the
major achievement of Indian engineers. These threshers were widely
adopted by the farmers. Gradually demand for other farm machinery such
as reapers and combine harvesters also increased.
Equipment for tillage, sowing, irrigation, plant protection and threshing
has been widely accepted by the fanners. Even farmers with small holding
utilize many improved farm equipment through custom hiring to ensure
timeliness of farming operations. The present trend in agricultural
mechanization is for high capacity machines through custom hiring and
for contractual field operations. However, Mechanization of horticulture,
plantation crops and commercial agriculture is yet to be introduced in the
country. The place of farm mechanization in the country accelerated with
the manufacture of agricuitural equipment by the local industries.
With the modest beginning of manufacture of tractors in 1960s with
foreign collaboration, today the Indian farm machinery industries meet the
bulk of the requirement or mechanintion inputs and also export. The
manufacture of agricultural machinery in India is quite complex
comprising of village artisans, tiny units, small-scale industries, State
Agro-Industrial Development Corporation and organized tractor, engine
and processing equipment industries. Traditional hand tools and bullock
drawn implement are largely fabricated by village craft men and smallkale industries. The small-scale industries depend upon public institutions
for technological support. These industries, however, upgrade these
designs and production process with experience. Organized sectors
confine to the manufacture of machines like tractors, engines, milling and
daring equipment. These industries have adopted sophisticated
production technologies, and some of them match international standards.
The enhanced scope of import of technology by organized sector and
entry of foreign investors is likely to accelerate exports. Since cost of

production of farm machinery in India is more competitive due to tower

labour wages, the importers from various countries will find Indian farm
equipment more attractive. Indian products, however, shall need
improvement in quality for gaining major export growth. For this, mass
production of critical and fast wearing components and their
standardization would greatly help.

STATE SCENARIO
Kerala Agro Machinery Corporation Ltd, Government of Kerala
Undertaking was formed with the intention of manufacturing Power Tiller
operated by Diesel Engine. The company came into existence in Athani,
Eranakulam District in 1973 when it started assembling Power Miler under
Technical Collaboration from M/s. Kubota Ltd., Japan. The product is now
made in India and is suitably designed to meet the Indian conditions.
There are more than 1451akh of KAMCO Power Tiller operating in various
States in India.
Transport Corporation of India Ltd. has been associated with KAMCO
for about 25 years and transport material to all parts of the country. The
machines have to move direct to the concerned destination in the same
truck. it is here that TCI plays a major role in the movement of the
machine and also ensures availability of spare parts with all the dealers.
An endorsement of excellent service from TO has come by way of
certificate of appreciation from KAMCO. Mr. Sarvjeet Shukla(controlling
manager-Ernakulam) is managing the relationship and keeping a watchful
eye on service level for the customer.
KAMCO Kubota Combine Harvester and KAMCO Kukje Paddy planter
are the latest introduction in the country from KAMCO. The Trans planters
takes away the burden of dreary manual labour of transplanting the
seedling thus taking away the human fatigue in the transplanting
operation.
KAMCO has got 4 Assembling Units located at Athani and
Kalamassery in Eranakulam District, Kanjikode in Palakkad District and
Mala in Thrissur District of Kerala State provides direct employment to
approx. 600 persons in its various units. It will be endeavour of TCI to
continuously enhance operational efficiency and value adds its services to
strengthen the professional bond with KAMCO.

Demand parts are considered as scraps put for auction. After assembling
final products with the help of finished product transfer note is moved to
marketing department.

DUTIES AND RESPONSIBILITIES

DGM Marketing.
Presenting marketing strategy to the board
Obtain management approval for periodical target
Developing or implementing customer loyalty or retention gi Reporting
performance to board for review
Arranging press conference periodically (annually)
Manager Marketing
Preparation and implementation of product/segment plan.
Setting targets to managers reporting to him
Arranging dealers meets
Preparation of MIS report

A company's survival depends upon better marketing strategies

adopted by the company. Survival from a lot of difficulties KAMCO became
no: I brand in the agricultural machinery market. Due to globalization
KAMCO products have to complete with the international products. The
products from China is a major threat for the company because if it's
lower. But KAMCO is not ready to compromise with the quality of its
products for reducing their price. The marketing strategy wins the target.
Considering the Indian market now there is only one competitor dealing
with MITSUBISHI Power Tiller that is VST, Bangalore, even facing all these
competitors companies marketing department plays a better role for
getting good result.

COMPETITORS
In India VST, Bangalore is the major competitors of KAMCO Japan,
Korea and china are also competing with KAMCO the same market.

INTERNAL MARKET
KAMCO'S Power Reaper has exported to Iran and Srilanka recently.
The export quantity is not a huge one but still they are getting orders from
those countries. These machines have been well accepted by the
customers.

DEALERS
Sales of the product are done only through dealers. In each state
there are 2 dealers. One is govt. institution and other is pvt. Firm. The
company has 45 dealers all over India. New dealers appointed to cover
selected district in Tamil Nadu, Karnataka, Maharashtra, Orissa, and Andre
Pradesh. And in the other states the company has dealership. The dealers
target depends upon the excess quantity purchased by customers. The
transporting facilities provided by KAMCO itself. The sales are made
against cash advanced expect in few cases; it is made against bank
guarantee if the payment does not exceed 30 days.

MAJOR DEALERS IN INDIA

I. West Bengal
Govt. -

West Bengal Industries corporation

Pvt.

Friends Machinery and spares Ltd.

2. Assam
Govt. -

Assam Agro industries Development Group

Pvt. -

Chem Trade India Pvt.Ltd.

3. Tripura
Govt. Pvt.

Tripura Horticulture Group

Krishishilpa Udyog

4. Meghalaya
Pvt.

Stanley Roy construction

SALES PROMOTION
In the international market the sales promotion of the company is
only through website. In India all the state Govt. have their own dealership
to sell the products. The company gives dealership to the private parties.
Company's main product is power tiller.
ADVERTISING Advertising is also part of a sales promotion. In every
budget company allocated nearly 50 lakhs for advertising. Company also
provides some financial help to the dealers for advertisement

A good Human Resource department is considered to be one of the

greatest assets of the company. HR department deals with the welfare of

human beings working in an organization. Besides welfare, it looks after

discipline, JR, training & Development, desirable work atmosphere, inter
personal relationship etc. HR department is helps in molding the
individuals to attain maximum, development.
KAMCO has been running on profit over the past 2 decades. Behind
these achievements, there lay the co-operation and hardworking
mentality of its employees. Without these dedicated employees,
KAMCO would have never reached the peak of success and
achievements.

WORK MAN CLASSIFICATION

Work man shall be classified as:

Permanent
Probationers
Temporary
Trainees

LEAVE
The following are the leaves granted to the work man in KAMCO

Earned leave (Leave with Wages)

Casual Leave
Sick Leave (for those who are not covered under the ESI scheme)
Special Leave Leave without Wages
Maternity Leave will be granted as per the provisions of the
maternity benefit Act to those not covered under the ESt Act.

The administration of leave will be done as provided under long-term

settlements between the management and the workman in force from
time to time. The Human Resource Department of KAMCO is concerned
with the recruitment and selection, Training and Development,
Promotions, Welfare of workers and cultural activities.

RECRUITMENT AND SELECTION

For KAMCO, there is specific procedure for Recruitment & selection. We
can see 2 types of recruitment in KAMCO.
PSC Recruitment
Company Recruitment

RECRUITMENT

For the post like Accountants, Office staffs, Typist, Stenographers

etc. the people are hired through PSC Recruitment. Executive and
Technical post are filled though Company Recruitment. Employment
Exchange forwards a list of candidates for the required post in the unit on
their notification to the District Employment Exchange in accordance with
the govt. rules. There is no discrimination based on color, religion, race,
etc. Appointed are poorly based on merit. The Dy. Manager of Recruitment
and selection, Promotion, performance Appraisal, PF etc.

SELECTION
After obtaining application, initial screening is done on based on the
specification given for the job. Short listed candidates considered
matching the profile, go through the selection process. The selection
process consists of written test, Group discussion and Interviews.

TRAINING AND DEVELOPMENT

Awareness Training or orientation training is given to the new
employees for a period of one week or one month. After this training,
orientation report will be collected from each department. After analyzing
this orientation report they will give placement as a trainee under
probation. Probation period is for 2 Years.
For the Workers, workers education program is conducted under the
supervision of the workers education Centre. For this Purpose, a 2-3
months training classes are provided to the trade union leaders of the
organization who act as the workers teachers. After attending the training
program, conducted at the workers education Centre, they conduct
classes to all workers in the organization by forming them in to different
batches.
For the officers at the top level, middle level and supervisory level,
management development programs are conducted. Here, training is
provided on a contract basis for 2-3 days by the faculty from different
institutes like Kerala state productivity council, Centre for Management
development, Indian institute of management etc. ISO awareness training
classes are also conducted; the subject handled in these classes is
personality development, personal relationship, Transactional analysis and
productivity.
For all the employees from the lower level to assistant engineer, the
initial 2 years in their raining period for which they get the consolidated
pay.
Apart from these, a fifteen days computer awareness training
program is conducted with changing techniques at regular intervals.
Training and Development taken care by
HR Manager who is assisted by Personal secretary. Training charges
are born by the company itself.

HRD ACTIVITY
The company gives cardinal importance to HRD activities. Company
follows a pre-planned training calendar covering all areas and the training
is imported with the help of various institutions. Effectiveness of the
training programs is periodically reviewed for further improvement.

PROMOTION
As per the promotion policy of KAMCO, an employee will be eligible
for promotion if he has served in a particular post for at least 3 years, or
he will be given promotion when the vacancy occurs. Another aspect is
Grade promotions, i.e. promotions are based on grades of employees. In
worker category there will be a grade change after period of 5 years.
For office level rades allotted are as follows:G8 Asst. Engineer, Superintendent
G9 Asst. Manager
GI 0- Deputy Manager Gil Manager
G12- Senior Manager
G13- Deputy General Manager
G14- General Manager
Promotion ration 1:1 is applicable to 03 and G4 emloyces. technical
assistance and operators and mechanic respectively.

WAGES AND PERFORMANCE APPRAISAL

Wages of the workers are settled for 4 yews. It is mainly a long term
settlement. Salary settlement is based on the Kerala govi Employee salary
of pay. Performance Appraisal is conducted once in a year for officers and
for workers, it is conducted when grades are given. There is a prescribed
from for conducting performance appraisal.

KAMCO'S WELFARE PROGRAMS

Welfare programs can be classified in 7 categories. They are:1.Essentials It includes items directly needed by employees during
production and in case of emergency. Ex Goggles, Draught relief funds,
funeral expenses etc.
2. Work security It refers to item of support given by the companY 63r
immediate protective element. While performing a job. These benefits are
given Individually, sector wise or company as a whole. E.g. LIC schemes,
Ala:Weill benefits, personnel accident benefits, insurance, first aid etc.
3. Health care facility It involves canteen and medical facilities. E.g.
tbi, Medical reimbursement etc.

4. Well-being and motivation It is aimed at developing a sense

loyalty and boosting morale. E.g. House building advance, loans,
contribution to recreation etc.
5. Work surrounding facility KAMCO provides spittoons, latrines,
canteen facilities, reading room, television, recreation. Etc.
6. Training and education it helps the employees to perform better in
work place and attain self-actualization. It includes experts training
expenses and counseling charges.
7. Incentive scheme KAMCO is having a good incentive scheme. It
stimulates employees to work more, thereby they can more.
Superintendent (welfare) is a charge of all welfare programs.

THE STATUTORY PROVISIONS AT KAMCO ARE FOLLOWS

Cool drinking water, Welfare officer, washing allowances,
occupational safety, First aid boxes, Canteens Etc.
Attendance bonus, for no absence during a month 3 days wages is
given. For half day wages will give.
Special allowance Rs. 60 given to all employees.
Missed meals allowance RS. 18 given to security staff coming for 3rd
shift i.e. 12 am to 8 pm Rs. 24 given to work man on Sunday's
holidays, when canteen is not functioning.

INCENTIVES
A production incentive scheme is followed in KAMCO for the benefit
of employees, which constitute quarter of the pay packet. It aims at
increased output, productivity and utilizations of in KAMCO, incentives are
mainly of 3 years.
I. Direct incentives
2. Semi direct incentives
3. Indirect incentives

SHIFT TIMING
For plant working
7 am to 3 pm
3 pm to 11 pm
9 am to 5 pm
For office staff

- Ist shift
- 2nd shift
- 3rd shift

9.30 am to 5 pm - General shift

9.30 am to 1.30 pm
- Saturday

FINANCE DEPARTMENT
The finance department deals with the procurement and
management of fund. This department controls the receipts and payments
each and every activity for all the division. In KAMCO, finance department
plays a major role because in public sector only very few companies are
earning profit, KAMCO have more than one unit established their own
fund. Surprising think is that KAMCO is giving divided and carrying profit
over two decades. The surplus money is invested in the treasury. The
finance department Keeps record of everything
concerning income.
FUNCTIONS OF FINANCE DEPARTMENT
1.
2.
3.
4.
5.
6.
7.
8.
9.

Budget & Budgetary control

Management of receipts
Management of Payments
Auditing
Costing
Statutory transactions
Management of Assets
Management of Units
MIS

1. Budget & Budgetary control

The annual budget of the company is prepared both for the
capital and revenue based on the requirements furnished by various units
and departments. The request of the department are analyzed only after
consulting with various departmental heads and corporate divisional
management group and finalized only on the basis of disposition of funds.

This budget has to be reviewed half yearly. If some changes and occurred
they are submitted to management/board through a revised budget and
approval.
2. Management of Receipts
Payments from dealers / customers are revised only through
marketing department. They are adopting proper receipts Customer wise
and dealer wise. There will be debt outstanding and it must be informed to
marketing department once in a month. Insurance, freight outward, bank
negotiation etc. are accounted and maintained to arrive all the cost of
sales.

3. Management of Payments
Due to the availability of funds, payments, commitments, are
honored on the due dates. All the payments are supported by approved
vouchers. Payments are passed mainly on the basis of IGGR. Advanced
payments are settled within a time of 45 days. None Receipts/delayed
Receipts extra is brought to the notice for store remedial action payments
are usually done by cheque
4. Auditing
Internal audit based on corporate functioning. Internal audit
mainly takes care for the "CARD" requirements of companies act. It acts
as a "WATCH DOG" for an entire organization. The main function of
department is to ensure that policy decision of the management is strictly
followed by the functional department and verified by the internal audit.
5. Costing
Costing reports are maintained as per the cost accounting
rules. They are mainly subjected to cost audit ordered by company law
board. Costing
6.MIS
The report like Bank balance position, Consolidated Receipts
and payment, Monthly operation report, statement of stock of rejection,
negotiation document, Pending Clearance, Reconciliation statement of
dealers and vendors etc are given to the management for proper control
and policy formulation.
The other functions are: Cash management
Bill processing
Bank Receipt

 Bank Payments
Sales accounting and costing
KAMCO has shares of 50 lakh in internal Airport,
Nedumbassery and shares of about 1.5Cr. In Kerala feeds Ltd.
KAMCO is a multi-core, multi-unit organization. It means that
KAMCO have more than one unit or their own fund without any external
funds. KAMCO has no loaned fund and hence the finance charge is nil.
KAMCO has fixed deposit about 20 crores, which earns interest
to the company. Company raises the working capital with the help of the
Customer advances and fixed assets. KAMCO is paying dividend ranging
from 10-30% for the last 15 years without any fail.
KAMCO'S finance department deals with the procurement and
management of funds. The department controls the overall financial
transaction of the company. It controls the entire receipts and payment of
all divisions. KAMCO is running on profit for the last 23 year. It is a unique
feature of KAMCO. No other organization is like this. Finance departments'
concentrates more on the cycle of flow of funds i.e. Inflow and outflow of
funds and it also ensures that whether there is appropriate volume of
funds needed for efficient business transactions. It also takes great care in
allocating the funds needed for efficient business transactions.

DUTIES AND RESPONSIBILITIES

DGM FINANCE
1. Submission of strategic matters regarding to finance to board of
decision
2. Submission of quarterly and annual audit accounts to the board.
3. Presentation on dividend decision (final and interim dividend)
4. Financial concurrence on corporate investment divisions
5. Overall super vision of the day to day functions departments as HOD
MANAGER COST/AUDIT
1.Maintenance of cost record and arranging for cost Audit
2. Preparing MIS reports on pricing and costing, leading to cost control
3. Internal audit of various activities and submission of periodical internal
audit report
4. Preparation of product wise, segment wise cost records
5. Preparation of quarterly, half yearly, annual financial statement
6. Treasury functions

PURCHASING DEPARTMENT
in KAMCO, the purchasing and stores department
together as a material department But the manager in charge is different
for both. All the function of these departments comes under one roof. The
stores department takes care of all the inflow of material used for
production process. Senior manager of material is in charge of stores
department. Purchasing department purchase the product from there
vendors based on detail of the required quantity, given by the production
department. The company has around 220 qualified vendors. The vendors
are pre-qualified regarding there registration, turnover, capacity, etc.
Purchase manager is in charge of purchase department.
PURCHASING PROCESS AT KAMCO
A corporate purchasing system is being followed in KAMCO. All
the other units of KAMCO give their material requirements to the Head
Office (Athani Unit) and the head office purchases the material for all the
other 3 units.
PROCEDURE
First of all, the production department prepares a budget
based on the raw material requirement. The budget contains detailed
regarding the raw material needed such as quantity, amount, name
suppliers etc. All the other department also prepare budget based on
requirements. The budgets are then complied by finance departments.
After the budget Approval, the list of raw materials is sent to
purchasing department. The purchase department places the purchasing
order. The purchasing order contains the detailed regarding the quantity
required, rate, payment terms, suppliers name and address etc. The order
is then handed over to purchase department. The purchase department
then receives quotations from approved vendors. The purchase
department then prepares a comparative statement. This is to select the
most economical quotation as per the specific materials. KAMCO used to
give award for the best vendors. It will help the company to get quality
product at the right time. Company has regular suppliers and they are

ready to give materials as per the requirements of the company. So at

present, company is not conducting any vendor's development programs.
There is a vendor development committee who recommends the new
vendors and maintaining existing list.
If the quotation seem to suite the terms and conditions, the
purchasing department sends a purchasing proposal. Purchasing manager
is in charge of purchase proposal along with the approval of his superiors.
Assistant Engineer is in charge of inspecting the raw material of tilling
items. All other general items are handled by respective departments. If
the item to be purchased is machinery, a committee will be formed to
study about its requirements in the company. If it is a general item like
computers, office furniture's, then also an enquiry is conducting before
forwarding purchase proposal.

VENDOR RATING
In KAMCO, vendors are classified in to 3 categories: - A, B and
C. company gives these grades to the vendors depending upon some
factors like best quality. Giving the materials at right time and maintaining
good relations with the company etc. If a vendors gets 'A' grade that
mean company trust the vendor. The company takes the same product
from the vendor without any initial inspections. So the vendor who gets 'A'
grade has certain committee towards the company. They want to get the
relationship without any interruption. So they supply quality goods at right
time.
`A' category vendors are weighted above 90% marks.
'B' category vendors are weighted between 60% & 90%.
'C' category vendors are weighted below 60%
KAMCO provides all support and guideline for the
improvement of this category. Even then if they are performing poorly
company will terminate them.

MAIN FUNCTION OF PURCHASE DEPARTMENT

Purchase planning
Price reification
Vendor development
Purchase order generation
Negotiations with the vendors
Timely purchase of goods

DUTIES AND RESPONSIBILITIES

General Manager Purchase

To responsible for ensuring that all requisite raw materials, spaces,

equipment etc. are available, so as to ensure smooth production.
To ensure optimum inventory levels.
To avoid stock out situation of essential items in the warehouse.
Product inventory is kept to the minimum level as possible.
To avoid obsolesces of inventory control measures.

Senior Manager store

To be responsible for item wise accounting and control of variot
inventory items.
In charge of warehouse issues and Receipts.
Property inventory control by EOQ max-min, Recorder level etc.
Up keeping and maintenance of warehouse items.
Periodical reporting.