WFB BAIRD & COMPANY (INDIA)

PVT. LTD
KAKKANAD, COCHIN (CSEZ)

Organization study report submitted in partial fulfillment of the

requirement for the MBA (Full time) Degree of the
Mahatma Gandhi University

Submitted by
ABIJITH K B
ALBERTIAN INSTITUTE OF MANAGEMENT
A UNIT OF ST. ALBERT’S COLLEGE (AUTONOMOUS)
Banerji Road, Cochin – 682018
February 2020

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 DECLARATION

I hereby declare that the Organization Study Report entitled WFB Baird
& Company (India) PVT. LTD is a record of bona-fide work done by
me in WFB Baird & Company (India) Pvt. Ltd during February 2020
under the supervision of Ms. Anitha Menon of HR Department and
Dr. Shiny C M and that no part of this report has formed the basis for
award of any degree, diploma, associate ship, fellowship or any other
similar title or recognition in any other institution.

Place
Date Name

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 ACKNOWLEDGEMENT

I express my deep-felt gratitude to our dean Dr. Geo Jos Fernandez,

Albertian Institute of Management, Kochi, who gave us an opportunity
to conduct an organizational study.

I take this opportunity to spell out my sincere gratitude to Dr. Shiny C

M, faculty, Albertian Institute of Management Kochi, my guide for this
study who guided me with her valuable suggestions in this study.

I offer my special thanks to the management of WFB Baird &

Company (India) PVT. LTD, KAKKANAD, COCHIN (CSEZ), for
helping me during this project work.

I would also thank my family and friends for their valuable support and
encouragement, which had been an inner strength during the course of
the project.

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ORGANISATIONAL STUDY REPORT ON
WFB Baird & Company (India) Pvt. Ltd

4
 INTRODUCTION

Organizational study is the systematic departmental study and careful application of

knowledge about how people – as individuals and as groups – act within
organizations. Organizational study encompasses the study of organizations from
multiple viewpoints, methods, and levels of analysis. For this the study has been
carried out in a production industry

The organization study was conducted mainly for knowing the particular
organization and also for getting knowledge about the activities of each department.
The study helps to know about the organizational activities and various functions of
the different departments, to learn the practicality in all the theories learned and
know more about the function, structure, policies and different procedures of the
organizations.

Every organization has its own objectives. The objectives differ from company to
company. The main purpose behind the formation of an organization is to attain
certain clean and predetermined objectives. Organizational Study is an essential part
of an MBA Program. The small scale firms are quick in studying changes in

5
consumers and adjusting the production prices and the production accordingly. The
small units play very important role in the Indian economy.

The study was conducted at WFB Baird & Company (India) Pvt. Ltd. It is a large
scale industry functioning in Cochin Special Economic Zone in Ernakulam.WFB
Baird is vertically integrated textile processing unit having a world class in house
facilities in manufacturing 100% pure linen, cotton, Yarn dyed, natural fabric and
bed spreads. with manufacturing units in Ireland, India, and Poland, is one of the
world’s oldest and largest Linen manufacturing companies supplying Irish Linen to
major high-end designers, brands, and retailers in USA, Europe and Asia including
India. Manufa

OBJECTIVES OF THE STUDY

The objectives of the study are:

 To study the department wise functioning of the organization.

 To study the manufacturing process of the organization
 To understand the resources of organization are managed
 To study the organization structure and procedure
 To interact with the managers at various levels and to understand their
responsibilities and routine activities.

SCOPE OF THE STUDY

The scope of the study concentrates on the functioning of different department in the
organizations, such as

 Human Resource Department

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  Production Department
 Finance Department
 Marketing Department

The study was conducted for a period of Feb 03 2020 to Feb 15 2020. The study was
mainly conducted to understand the functions, process, and procedure of different
department of the company.

RESEARCH METHODOLOGY
The details were collected with the help of both primary and secondary data.

Primary data: Primary data are collected specifically through direct interaction with
various departmental heads by face to face interactions and collected information
from employees by conducting interactions and observations.

Secondary data: Secondary data were collected from certain files, journal and
reports. Information of the company are also collected from internet.

Limitations

 Time was a major limiting factor.

 Secondary data available from company manuals were outdated (the
manuals are being updated).
 Lack of co-operation from certain departments due to their work load.

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 Chapter 2
INDUSTRY PROFILE

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 Overview of the Global Textile Industry

The Global Textile Industry impacts nearly every human being on the planet. The
industry is currently worth nearly US $3 trillion and includes the production,
refinement, and sale of both synthetic and natural fibres used in thousands of
industries. The global textile market is broken into a number of sectors shown in the
chart below.

As you can see, the textile industry encompasses a broad and diverse range of
products with an even wider range of applications. That diversity is one of many
factors that makes the textile industry one of the most vital to the economic well-
being of people all over the world.

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It is estimated anywhere between 20 million and 60 million people are employed in
the textile industry worldwide. Employment in the garment industry is particularly
important in developing economies such as India, Pakistan, and Vietnam. The
industry accounts for approximately 2% of global Gross Domestic Product and
accounts for an even greater portion of GDP for the world's leading producers and
exporters of textiles and garments.

The textile industry is an ever-growing market with key competitors being the

countries China, European Union, the United States and India. China’s textile exports
went up by roughly 3% in the year 2018. China is the leading textile manufacturing
country and is almost worth 1/4th of the global textile industry with an export value of
more than 100 billion USD. The textile industry of the European Union has Germany,
Spain, France, Italy and Portugal on the forefront with a value of more than 1/5th of
the global textile industry and is currently valued at more than 160 billion USD. India
is the third largest textile manufacturing industry and holds an export value of more
than 30 billion USD. India is responsible for more than 6% of the total textile
production globally and is valued at approximately 150 billion USD. India is followed
by the United States in the exports of textile. The United States has now become one
of the largest consumers of textile being responsible for almost 75% of the total textile
imports. China, Japan, India and United States dominate the global textile industry.

There are many developing countries ready to crack or climb this list in the near
future as their investment into the textile or garment industry increases. Countries
such as Pakistan, Sri Lanka, Samoa, and a number of South American countries have
seen considerable growth in their textile markets in recent years. As China moves
towards a service-based economy, and labour prices continue to rise, it is logical to
assume many garment producers will move away from China and into developing
markets where labour is cheap and readily available.

The textile and apparel industry has been growing proportionally with the changes in
the world of garments. The global textile industry has seen both rise and fall in the
year 2018. The leading production of cotton was achieved by India, China and United
States at around 6,200, 6,000 and 4,500 thousand metric tonnes produced by the
countries respectively. Arvind ltd., the Indian textile company, manufacturing cotton

10
garments might also expand to other materials soon and is in talks with the Dutch tech
company DyeCoo to practice the concept of CO2 dyeing as an environment-friendly
option of dyeing. India apparel industry might soon introduce a customized standard
of garment sizes. The Indian textile industry is valued at around 40 billion USD. The
Brexit deal might bring a lot of uncertainty in the global textile industry. To get
further details regarding the current scenario of the global textile industry, please refer
to the following reports.

Earliest linen industry

The earliest records of an established linen industry are 4,000 years old, from Egypt.
The earliest written documentation of a linen industry comes from the Linear B
tablets of Pylos, Greece, where linen is depicted as an ideogram and also written as
"li-no" (Greek: λίνον, linon), and the female linen workers are cataloged as "li-ne-ya"
(λίνεια, lineia).

Flax has been cultivated for its remarkable fiber, linen, for at least five millennia.
The spinning and weaving of linen is depicted on wall paintings of ancient Egypt. As
early as 3,000 B.C., the fiber was processed into fine white fabric (540 threads to the
incliner than anything woven today) and wrapped around the mummies of the
ancient Egyptian pharaohs. Mentioned several times in the Bible, it has been used as
a cool, comfortable fiber in the Middle East for centuries as well. Ancient Greeks
and Romans greatly valued it as a commodity. Finnish traders are believed to have
introduced flax to Northern Europe where it has been under cultivation for centuries.

Both wool and linen were tremendously important fibers in the New World.
Relatively easy to grow, American settlers were urged to plant a small plot of flax as

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early as the seventeenth century. While flax is easy to grow, settlers knew all too
well the tedious chore of processing the woody stalks for its supple linen. Before the
industrial revolution much sturdy, homemade clothing was woven from linen
cultivated, processed, spun, dyed, woven, and sewn by hand. It may be argued that
until the eighteenth century, linen was the most important textile in the world.

By the late eighteenth century, cotton became the fiber that was most easily and
inexpensively processed and woven in the mechanized British and New England
textile mills. By the 1850s, linen production had virtually been abandoned in the
United States because it was so much cheaper to buy the factory-made cotton. Some
New Englanders of Scot or Irish background continued to cultivate some flax for
processing into linen used for fancy domestic linens such as bed sheets, toweling,
and decorative tablecloths as their ancestors had for centuries. However, most
Americans abandoned the cultivation of the plant in this country and instead chose
cheap cotton that was carded, spun, woven, and roller-printed for just pennies a yard.
Thereafter and until recently, a different variety of flax plant was raised in this
country not for its linen fibers but for its seeds which exude a useful vegetable oil
known as linseed oil when pressed.

The Phoenicians, who, with their merchant fleet, opened up new channels of
commerce to the peoples of the Mediterranean, besides developing the tin mines of
Cornwall, introduced flax growing and the making of linen into Ireland before the
common era, but it is not until the twelfth century that we can find records of a
definite attempt to systematize flax production.

When the Edict of Nantes was revoked, in 1685, many of the Huguenots who had to
flee France settled in the British Isles, and amongst them was Louis Crommelin, who
was born, and brought up as a weaver of fine linen, in the town of Cambria. He fled
to Ulster, and eventually settled down in the small town of Lisbon, about ten miles
from Belfast. Belfast itself is perhaps the most famous linen producing center
throughout history, during the Victorian era the majority of the world's linen was
produced in the city which gained it the name Linen polis.

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During the late war Cambria became well known as one of the centers of the most
desperate fighting. The name "cambric" is derived from this town.

Although the linen industry was already established in Ulster, Louis Crommelin
found scope for improvement in weaving, and his efforts were so successful that he
was appointed by the Government to develop the industry over a much wider range
than the small confines of Lisburn and its surroundings. The direct result of his good
work was the establishment, under statute, of the Board of Trustees of the Linen
Manufacturers of Ireland in the year 1711.

Indian Textile Industry

Textile Industry in India is the oldest and one of the most promising industries in
terms of its contribution to the overall GDP of the country. Before the liberalization
of economy in India during 1991, textile industry was totally unorganized. But with
the easement of the economy has definitely given a push to the Indian textile market
that has now become one of the largest in the world. Textile industry in India
contributes close to 4 per cent of the total GDP, Gross Domestic Product. It is also a
major contributor in industrial production, which is 14% and also the country's total
export earnings that stands at 13%. Textile industry in India at present stands at US$
52 billion and it is expected that it will reach to US$ 115 billion by 2012. And if we
talk about the domestic Indian textile market then the present figures are US$ 34.6
billion that will go up to US$ 60 billion by 2012. Moreover the India's textile export
is also increasing and there is seen 15 percent overall growth here.
Now if we talk about cotton in the Indian textile market and in the world trade, then
cotton yarn's share from India is 25%. India is the second largest producer of cotton
yarns and textiles and the third largest producer of cotton. India is also the largest
consumer of cotton in the entire world and second largest in cotton's production,
China being the first. Also the loomage (including handloom) in textile industry in

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India is the largest in the world and India contributes nearly 61% of the total world’s
loomage.

The ever growing retailing sector and purchasing power of Indian consumer is also
markedly affecting the textile industry in India. The lifestyle of middle class
consumer is changing dramatically leading to the growth of Indian textile market. In
earlier times consumers used to buy bed spreads , bed sheets and other textile
furnishing products just during the festive season but now the buying trends are
changing. Consumer needs home that is well furnished and depicts the modern decor.
The global textile consumption has also increased and each year it is expected to
grow by 15%. After China it is the India which is the biggest player of textile
industry and global demand for the home textile furnishings has led to the
investments in the textile industry in india.

After textile it is the apparel industry that is the second largest industry and retail
sector in India. At present the domestic apparel industry is at US$ 2.7 billion and it is
expected to grow 5-7 per cent by the end of 2010.

Textile industry in India is the second largest employment generator after agriculture.
It holds significant status in India as it provides one of the most fundamental
necessities of the people. Textile industries was one of the earliest industries to come
into existence in india and it accounts for more than 30% of the total exports .in fact
indian textile industry is the second largest to the world, second only to china.

Textile industry is unique in terms that it is an independent industry from the basic
requirement of raw materials to final products, with huge value addition at every
stage of processing. Textile industry in india has vast potential for creation of
employment opportunities in the agricultural, industrial, organized and decentralized
sectors and rural and urban areas, particularly the woman and the disadvantaged.
Indian textile industry is constituted of the following segments: Readymade
garments, cotton textiles including handlooms, man made textiles, silk textiles,
woollen textiles, handcrafts, coir and jute.

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Till the year 1985 development of textile sector in India took place in terms of
general policies. In 1985 for the first time the importance of textile sector was
recognised and a separate policy statement was announced with regard to
development of textile sector. In the year 2000, National textile policy was
announced. Its main objective was to provide cloth of acceptable quality reasonable
prices for the vast majority of the population of the country. To increasingly
constitute to the provision of sustainable employment and the economic growth of
the nation and to compete with confidence for an increase share of the global market.
The policy also aimed at achieving the target of textile and apparel exports of us $ 50
billion by 2010 of which the share of garments will be $ 25 billion

Revival of Khadi: Major Step to Improve Textile Industry in India

Khadi was extensively used in India and considered as the Indian fiber. But with the
many other types of clothes and fibers, the Khadi was loosing its importance but now
Government is taking steps to revive the Khadi. US$ 150 million offer has been
made by the Asian Development Bank (ADB) for the revival of Khadi. Also the
Japan Special Fund through ADB will provide US$ 2 million grant to India for the
growth of Khadi industry. This will generate employment particularly for women
and minorities in rural sector. This is the one step to further boost the Indian textile
market at global level.

Steps Taken by Government to Boost Textile Industry in India

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 Government of India has recently made the scheme regarding Integrated
Textile Parks (SITP) under which 40 textile parks will be developed for more
investments in textile sector.
 Technology Mission on Cotton (TMC) had been set up by the Government of
India in 2000 to further improve the cotton production that in turn will help the
Indian textile market to grow. TMC is divided into four mini mission in which
Cotton Research & Tech. Generation will be done followed by Transfer of
Technology & Development, Development of Market Infrastructure and
Modernization/upgradation of G&P factories.
 There will be de-reservation of knitwear, ready made garments and hosiery
especially from the small scale sector that will boost the Indian textile market.
 100 per cent FDI with automatic route.
 Five new schemes for the 11th five-year plans are also coming that will
remarkably affect the growth of handloom in India. These schemes are the
Integrated Handloom Development scheme, the Marketing and Export
Promotion scheme, the Handloom Weavers' Comprehensive Welfare scheme,
the Mill Gate Price scheme and the Diversified Handloom Development scheme.

Current facts about Indian textile industry

 India is the second largest producer of cotton yarn.

 India is the largest in loomage (including handloom) in the world.
 Indian textile market is the second largest employer providing employment to
the masses. In textile sector there are about 35 million working people.
 14% of the industrial production in India is done by the textile industry.
 High exports and foreign revenue comes from the textile industry in India.
38% of the country's total export is coming from textile industry.
 There are around 1200 million medium to large scale textile companies in
India

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Market Overview

The growth in the Indian home textiles supported by growing household income,
increasing population, rising income levels, increase in organized retail and growth
of end use sectors like housing, hospitality, healthcare.

 India accounts for 7 per cent of global home textiles trade. Superior quality
makes companies in India a leader in the US and the UK, contributing two-
third to their exports.
 Delhi, India has emerged as one of the major production and export centers
for home textiles.
 Traditional craftsmanship along with its distinctive appeal is being
effectively used for producing value-added home textile items leading to
India’s growing recognition as a preferred sourcing destination for these
products.
 The reduction is attributable to low rainfall in key cotton growing states
such as Gujarat.

India Market Share in Global Trade

Rising demand for household products and growing consumer awareness have
made home textiles a lucrative business segment. Secondly, fashion sensitivity
towards household furnishing has increased as fast-fashion has hit not only the
apparel market but the home market as well. Home fashion has become a separate
segment as consumer consciousness towards high-quality living has increased.

To cater to the increased demand, the number of retailers entering the home textiles
market is also increasing. Moreover, the advent of E-commerce in the segment is

17
further making the market even more competitive, and with the increasing number
of websites, the marketplace is also experiencing growth. Fuelling the market
growth, research and development in the home textiles segment have been
immense.

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Competitive Landscape

This covers major international players operating in the India Home Textile
Market. In terms of market share, few of the major players currently dominate the
market. However, demand is driven by consumer income. Large companies
compete through volume purchasing, breadth of products, and effective
merchandising and marketing. Small companies focus on a market segment and
compete through the depth of products and superior customer service.

Major Players

1. Welspun Group
2. Raymond Group
3. Indo Count Industries Ltd.
4. Bombay Dyeing
5. Alok Industries Ltd.

Road Ahead

The future for the Indian textile industry looks promising, buoyed by both strong
domestic consumption as well as export demand. With consumerism and disposable
income on the rise, the retail sector has experienced a rapid growth in the past decade
with the entry of several international players like Marks & Spencer, Guess and Next
into the Indian market. The organised apparel segment is expected to grow at a
Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year
period.

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 CHAPTER 3

COMPANY PROFILE

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 COMPANY POFILE

The company is a wholly owned subsidiary of WFB Baird and

company Ltd, Northern Ireland, U.K. the patent organization
which is well known by its brand name Baird Mcnutt, is
privately owned business founded in 1912 as a speciality
manufacturer of linen blend appeal fabrics. Braid is the largest
producer of Irish linen fabric in Europe. Baird Mcnutt is a
vertical manufacturer and controls the complete production
from flax fibre to finished garments. Baird Mcnutt is the
combination of Baird who deals with leading finished work and
Mcnutt who offers design services.

The parent company Baird Mcnutt is a privately owned

company who not only manufactures linen fabric but also
produces world class linen yarn for weaving, knitting and
industrial purposes out of finest quality of west European flax.
Baird Mcnutt spin, weave, dye and finish linen for international
fashion market by bringing the expertise learned through three
generations of weaving the irish linen fabric. All the major
international garment makers find a place in its client. The
function of parent company is to cultivate the flax plant.

Manufacturing facilities are located at Downing, Ireland, Kells,

Northern Ireland, Istonia, Bulkow, Poland and in India and
kochi in marketing offices in U.S.A, U.K, Germany and France.

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Hence Baird is surving as an independent lender in producing
100% linen fabrics.

WFB Baird is vertically integrated textile processing unit

whose main function is to process the raw material, by
separating the fiber from weaving purpose and dying the linen
for market purposes. The raw material is supplied from the
parent organization. The processing uit is situated in cochin
(CSEZ) where only weaving and dyeing of linen fabric takes
place.

WFB Baird is vertically integrated textile processing unit

having a world class in house facilities in manufacturing 100%
pure linen, cotton linen, Yard dyed, natural fabric and bed
spreads. With a clear vision a sense of purpose and sheer hard
work guided by a team of professionals and steered by an
enterprising management, WFB Baird continues to diversify its
products and extend its customer reach.

It was found in the year 2005, It has grown consistently and

today reached $250 million and with new capacity additions.
Baird is planning to reach us$700 million by the end of 2020.
Bird Mcnutt decided to add the state of art weaving and

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processing and finishing capacity of 45000 metres per day, out
of which 20000 metres piece dyed and balance 25000 metres
yarn dyed and natural fibre can be processed with the help of
state of the art machines. All actions are oriented towards
offering complete solution to customers. It also has the state of
the art back up facilities for quality assurance and colour
management including mathis pilot plant which enables it to get
first-time–right in dying. The unit boats the state of the art
facilities in the process and quality assurance laboratories.

The Kochi unit has the capacity to process six to nine yards of
fabric. Linen yarn for the unit will be sourced from Estonia and
cotton within the country.

The Cochin facility manufacturer’s linen and linen blend

fabrics for exports to the global customers like GAP, Marls &
Spencers, Levis, J Jiu, French collection etc. They offer their
clients a mesmerising range of linen fabrics which are offered
in variety of colours designs and patterns. Designed in
compliance with the cotemporary trends, these fabrics are
quality tested for thickness of fabrics and stich durability before
being dispatched at clients end. They also hold an expertise in
custom designing and the range as per the specifications and
requirements of the clients.

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Company Profile

Basic Information

 Company Name:- WFB Baird And Company India Private Limited

 Founded:- 1912
 Date of Incorporation:- 27 July 2004
 Business Type :- Manufacturing
 Product/Service:- 100% Linen Fabrics and Linen blended Fabrics
 Number of Employees:- 400
 Country of Incorporation:- Ireland

Trade & Market:-

 India
 UK
 USA
 Europe

Total annual sales volume:-200cr

Export percentage
Factory information
 Factory Size:- 1000 to 3000 Sq. Meters
 Factory Location:- Kerala-Cochin

Product Portfolio:-
Linen cloth
Table linen
Kitchen linen
Table mat
Table cloth
Disposable hand towels
Pool towel
Printed towels

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Stages of Growth

 The family business of braid was established in the year 1912.it was equipped
with 400 Atherton Looms, Which had been modified from the cotton trade.
The factory mainly manufactured piece of goods for the hand kerchief trade
in USA, where the largest market was at that time.
 The company survived depression in the late 1960’s to change the hand
kerchief production to appeal production.
 They produced linen fabrics and spread its importance worldwide
 Gradually they started their processing units (Dying and Weaving) in many
parts of the world including India in order to popularize the use of linen.
 They started their first venture in Asia in the year 2005 in Kochi at the
(CSEZ) where both processing and exporting is done

Some useful information about linen fabrics

 High moisture absorption capacity

 Highly comfortable for all weather conditions
 Protect skin from harmful UV rays
 Natural anti-bacterial health fabrics
 Skin friendly
 Durable and wear resistant
 Naturally anti-static, dust repellent
 Naturally anti bed sore
 Pure linen influences the lowering of muscle tensions
 Soft texture enhances bod comfort
 Eco friendly fabric

25
  Retains the creases and wrinkles due to the individual body movements of the
wearer

VISION AND MISSION OF BAIRD

CORPORATE MISSION:-

To function as a dependable and globally competitive producer of fabrics and other

allied products and seeks to make its presence felt globally as reliable suppliers of
top quality linen fabrics and garments for chosen market segments.

The main aim of this organization is to ensure total customer satisfaction through
trust on quality, rapid modernization and expansion. Baird wishes to build its
reputation as a caring organization, utilizing all its resources through team work and
continuous emphasis on human resource development, knowledge, integration,
system perfection an R&D. Hence the organization is dedicated to achieve
excellence in all spheres of management.

VISION OF BAIRD:-

To emerge as a leading company in the business by providing quality outputs. The

main aim is to popularize linen fabrics and its use in India. Another vision is to make
available the fabrics to retail outlets as much as possible and to be a premium
conglomerate with a clear business focus at each business level.

CORPORATE GOALS

 To focus on cost reduction and technology up gradation in order to become

competitive in each line of business

26
  To constantly innovate in new business lines, where profit can be made on
sustainable basis over the long term.
 To compete through speed, agility and flexibility in recognizing and
capturing in existing markets
 To invest sufficiently to stay in the game but avoid premature commitments

Quality policy

They are committed to enhance customer satisfaction by providing goods and

services complying with continually improving improving quality management
system. Baird strives to provide quality of the highest standard to the satisfaction of
the customer. Quality management to the Baird combines fundamental management
techniques, innovative improvement efforts and specialized technical skills to
continuously improve manufacturing processes. The company strives for continues
growth and development through customer satisfaction, teamwork, honesty and
integrity.

Eco preserve

Baird is well aware of the responsibility that manufacturing industries bears towards
environment. Conserving the resources of environment from pollution and
preserving healthy living conditions are important concerns at Baird. Baird’s
commitment is to sustain the toxic – free environment observing statutory stipulation
and legal regulation. Baird believes in pollution prevention rather than pollution
control. Their activities comprise awareness programs among the employees,
customers, contractors and all those who are associated with them. Their endeavor is
to minimize hazardous emission of waste and to reduce the impact of the
manufacturing activities. Baird aims to achieve zero effluent discharge by the end of
this yea

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 ORGANIZATIONAL STRUCTURE

Director

COO (Chief Operating Officer)

Finance Department Marketing Department HR Department Production

Department

General Manager General Manager

(Finance) (Marketing)
General Manager (HR) X

Assistant Manager System

Deputy General Mercha Supervisor
Marketing (Retail Adminis
Manager ndises Administrator
Manager Business) trator

Manager Sales
Manager Manager Assistants Staffs
Manager (Costing,
(Bills and (General
(Sales) MIS,
materials) A/C)
Budget)

28
29
 FUNCTIONAL DEPARTMENT

OBJECTIVES

 To manage & account for the financial resource of the organization, to

forecast its requirement in the future and plan accordingly and to check
for deviation.
 Report the financial performance of the company to the management,
and comply with the government rules and regulations.

STRUCTURE

GENERAL MANAGER

[FINANCE]

DEPUTY GENERAL
MANAGER

MANAGER (BILLS & MANAGER (SALES) MANAGER (COSTING, MANAGER (GENERAL

MATERIALS) MIS, BUDGET) A/C)

30
 FUNCTIONS OF FINANCE DEPARTMENT

Some of the main functions are payroll, billing, preparation of journal, ledger and trial
balance, banking, financial resources and materials accounting, budget preparation, cost
accounting, auditing, preparation of financial statements and reports, corporate planning.

PROCESS OF FINANCE DEPARTMENT

1. Sales
2. Costing, MIS, Budget
3. Cash, Bank and Payroll
4. Tax and Duties

1. SALES SECTION
Sales accounting deals with:

 Accountability for selling and distribution of products and by products.

 Accountability to take order and distribute to the retail outlets.
 Recording the transaction.
 Transfer of information from depots to head office.
 Compilation of reports.

2. THE COSTING,MIS AND BUDGETING SECTION

This section is concerned with ascertaining the cost of raw materials and production,
providing information, helping to prepare a budget, forecasting the performance and finally
making the plan.
 Cost accounting
Identification of the cost centre:

31
Direct expenses are recorded to the respective cost centre. Indirect expenses are separately
booked and allocated at the end of the year. Cost sheet is prepared in two ways. The item
in the cost sheet is compiled on the basis of elements of the product.

Classification of the cost:

Variable cost:- This includes raw materials that is yarn, intermediate products, consumable
products, packing materials, pollution control expenses.

Fixed cost:- Fixed cost of a product mainly consists of conversion cost of salaries and wages
(direct, indirect, administration and maintenance ), staff welfare expenses, insurance, plant
maintenances, depreciation, factory overheads, administrative overheads, head office
overheads, gratuity and bonus, interest on term loans and working capital.

 MIS

To provide the management with vital facts which affects the efficient running of the
business for the decision making on planning, organizing and controlling the major activities
of the organization and initiating suitable action.

MIS briefly consist of:

a. Divisional reports.
b. Profit and loss account and its analysis.
c. Production performance of the division.
d. Inventory position.
e. Cost of production – actual and budget for the month.
f. Specific information important for the management – major projects, man hour
utilization etc.

 Budgeting

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Two types of budget – revenue and capital budget.

Two types of estimates – budget estimate and revised estimate.

Revenue budget:-

Every year early in august detailed production targets and norms for
consumption of raw materials for remaining portion of current year and also for the
next financial year are prepared by head of divisions.

Capital expenditure:-

Show all items of capital expenditure to be undertaken during the budget period like expense
on acquisition of new assets like machinery, furniture and office equipment which have
reasonable life; expansion of existing facilities and modification & improvements to plant
and machinery resulting in:

a. Increase in capacity
b. Increase in useful life
c. Improvement in quality of output
d. Reduction in cost of output is treated as capital expentiture

Budget revision:-

While preparing the next year’s revenue budget, the revenue budget for the current year
is revised, based on the actual from April to September and anticipated trend for the
remaining period.

On closing of the accounts of the months a monthly profit and loss account is prepared for
each division and same is send it to the dividend head

3. THE CASH, BANK AND PAYROLL SECTION

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This section is concerned more with the day to day activities and less of future forecasting
and planning.

 Cash and bank account section

The various functions include:

a. Receipt of cash, cheques, bank drafts and postal money orders.

b. Payment of cash, cheques, bank drafts and letters of authority.
c. Handling of bank deposits/withdrawals, custody of cash and inter unit transfer of
funds.
d. Maintenance of petty cash books accounts.
e. Reconciliation of bank accounts.
f. Security arrangement of cash handling.
g. Safe custody of valuable document.
h. Cash interests calculation.

 Payroll section
Function of this section is:

a. Preparation and disbursement of salaries and wages to managerial and non

managerial employees.
b. Effect on various recoveries through payroll.
c. Processing of various personal payments in advances.
d. Keeps books of account for the above transaction.

4. Tax and duties section

This section is concerned with calculation and payment of taxes and duties to the
government.

Significant accounting policies

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 All revenues, costs, assets and liabilities are on the accrual basis, except customs duty
claims and insurance claims.
 Sale excludes excise duty and sales tax.
 Inventories valuation
a. Stock in trade: finished linen fabrics material at work cost or net realizable
value which never is lower. By products are valued at net sales realization
during the year.
b. Raw material: yarn, colored dyes, acid dye, packaging materials, fuel oil,
stores and spares are valued at weighted average cost.
c. Tools and equipment are shown at revalued cost.
 All fixed assets are carried at cost less depreciation.
 Depreciation
a. For plant and machinery depreciation is calculated on straight line basis
specified in schedule XIV to the companies act.
b. For buildings, service equipment, furniture, fixtures, office equipments,
electrical installation etc, depreciation is calculated on Written down value
method (WDV) basis at the rates specified in the act.
 Sale of goods is recognized on actual basis.

1. MARKETING DEPARTMENT

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 GENERAL INFORMATION

Textile marketing is different from other product marketing. Textiles have a high demand
therefore it can be termed as a sellers market. However in India linen’s demand is low
compared to other fabrics. Market penetration is very difficult, and once a company captures
a market its brand is substituted for the product. The Baird image plays an important role.
The whole market is also dependent on customer awareness about linen fabric. All of these
call for a planned marketing effort and huge requirement of funds to meet the demand of
customers.

OBJECTIVES

 Monitoring of sales and distribution.

 Study and respond adequately to the information from market research department
and from field establishment.

STRUCTURE

GENERAL MANAGER (SALES

AND MARKETING)

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ASSISTANT MARKETING MANAGER (RETAIL BUSINESS) MERCHANDISERS
MANAGER

SALES ASSISTANTS

FUNCTIONS OF MARKETING DEPARTMENT

 Sales.
 Market research.
 Preparation of sales report.
 Processing and sending replies to audit queries at the divisional level.
 Liaison with bulk buyers.
 Sales force motivation through internal and external training programs.

STRUCTURE OF MARKETING DEPARTMENT

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Structure of marketing department varies with size and scale of operations as well as the
product range of companies. There is no uniform hierarchy in marketing department. The
structure of marketing department in Baird is as follows:

 Sales
 Business development
 Marketing
Marketing department consist of various sub department on the basis of their function. They
are:

 Sales department
 Distribution department

 SALES DEPARTMENT
The sales department is headed by a chief manager. He is responsible for sales coordination
of function across various depots, conduct on effective market research for analyzing market
and calculating the demand and finally promotes the sales of Baird products. Baird is
adopting a marketing strategy according to product nature, market situation, demand of
product etc.

MAIN PRODUCTS

 Linen fabric/ natural fabric

 Cotton linen fabric
 Dyed or colored linen fabric
 Bed spreads
 Bath linen
 Kitchen linen

SALES NETWORK

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The products in Baird in are mostly sold through a variety of channels. These include:

 Sales through exclusive company owned retail outlets. Baird has a retail space in
various malls for show casing their products and maximizing sales.
 Outright sales to retailers.
 Operating through franchisee arrangement. This arrangement is made in order to
popularize the brand within the country.

SALES PROMOTION TOOLS OF BAIRD

Baird over the years have innovated various techniques of sales promotion. Many of them
are recognized as effective tools of promotion by national and international agencies. These
techniques are mainly grouped into:

a. Mass communication techniques

b. Personal contact method

a. Mass communication techniques

This method involves catering to a large number of people in the
shortest time possible advertisement are done through exhibition, radio
jingles, hoarding, posters, wall painting, direct mail service,
advertisement etc.

b. Personal method
As the name implies, in this method more personal and closer contact with customer are
developed through promotional methods. The methods are adopted by Baird through
demonstration, block demonstrations, seminar, study classes, co-operative training programs,
dealer training, squad programs etc.

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  DISTRIBUTION DEPARTMENT

Physical distribution of products is a meaningful function of the marketing division chief

distribution manager is entrusted with planning, monitoring and implementing of product
distribution and coordinating the movement from production units and ports. Marketing
operations of Baird follow a completely centralized pattern. The marketing network of Baird
is spread over the world. The marketing offices apart from India are also there in U.K,
U.S.A, Germany and France.

MARKETING RESEARCH

Marketing research department is essential for the success of marketing function. The
main function of marketing research is the collection, analysis and interpretation of data
pertaining to textiles market.

FUNCTIONS

 Preparation of product wise, month wise annual sales plan for each area.
 Publication of annual report of division.
 Monitoring and reporting of competitors sales as per Performa.
 Collection, scrutiny, analysis and compilation of region wise, area wise sales
performance of own and purchased products for providing information to
management on achievement against the target on a daily basis.
 Submission of monthly performance report.
 Ensuring product availability, dispatch, monitoring and inventory control.

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THE MARKETING MIX

 PRODUCT
Products of Baird include linen fabric, cotton blended linen fabric and bed
spreads. Baird is the only producer of 100% pure linen with a wide range of
products of linen.

 PRICE
The company has adopted a differential pricing policy. The price is fixed
through negotiation for long term contracts. For small customers price is
fixed from time to time.

PRICING POLICY

The company has adopted a differential pricing policy. An open body named textiles
manufacturers association of India fixes selling price for a particular period. Price of the
product is fixed by adding the production cost, excise duty, VAT and freight charges.
Tenders are issued to the customers with a price quoted and if turns to be the lowest bid and
satisfies the customer, the sales are done.

The prices are finally made into action only after communicating with the parent
organization. For transportation of the product, raw materials and also all other logistics
purpose, company have given contracts to outside agencies. The contract is placed for each
material that is done in annual basis.

PLACE

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Here direct selling is made i.e. the fabrics processed in the units are given to the retail shops
for further stitching process ready for garmenting. The entire marketing functions are done
by the company itself and not by any marketing office outside the company. All payments
take place through Banks in Cochin.

PROMOTION

Baird is the only manufacturer of linen fabrics in the entire state. But it lacks a good
promotion policy to withstand competition. The customers are aware of the existence of the
company and when and how to get the product. There are some promotional activities like
mass communication technique and personal contact method. But the main marketing factor
is price, which depends in the national and international price. The company advertises
through radio jingles, hoarding, wall painting etc. The promotional activities are also done
through company website (www.bairdmcnutt.com).

THE COMPETITORS

 Aditya Birla group-linen club

 Aditya Birla group-Jaishree textiles
 Ganga Silk fabrics
 Linen INC.
 World linen and textile company

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MAJOR CUSTOMERS OF BAIRD:

Baird manufactures linen and linen blend fabrics for export to global customers like:

 MARKS & SPENCERS

 LEVIS
 J JILL
 FRENCH CONNECTION
 GAP
 OBERON MALL
 K. MOHAN EXPORTERS(CSEZ)
 ESPIRIT
 DIESEL
 ARMANI
 DOCKERS
 DILLARDS
 NEST
 MULBERRY
 OASISI
 BANANA REPUBLIC
 POLO

MARKETING STRATEGY OF BAIRD

Organization has adopted a strategy for their product nature, market situation, demand of the
product, competition etc. In Kerala Baird is the only company producing linen fabric and
they gained about 75% of total market share.

MARKET ANALYSIS

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The company is going to complete its seventh year. The first two year was tough for the
company as they could not fetch much profit but at seventh year they are doing fairly well
with a increased sales turnover. This was due to higher production, increased demand and
better sales realization. Though there was recession in the realization towards the end of the
last financial year, but it was not reflected on Baird Cochin Pvt Ltd, as the contracts was
made earlier. The indications are that the market will improve on the coming financial years.

CHALLENGES OF MARKETING DEPARTMENT

 Lack of fund for research activities.

 Narrow product range.
 Unnecessary intervention of State and Central Government in sales and distribution.
 Recurring losses have put the organization the back foot looking for survival in the
present than long term plans and resulting research, leading to low level of research.

2. HRD/TRAINING DEPARTMENT

GENERAL INFORMATION

H.R.M is one of the most complex and challenging fields of endeavor. It is considered to be
the most expensive and important of every organization. In Baird the scope of HRD is fast.
Baird is always committed to learning and sustains growth. It fosters a culture that promotes
excellence and rewards entrepreneurship. The people processes initiated at Baird are a
reflection of the overall Human Resources policy of Baird group.

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OBJECTIVES

 To maintain the optimum manpower required to sustain the growth of the

organization.
 To motivate and manage human resource and train them to ensure their
personal and organizational development.

STRUCTURE

GENERAL MANAGER (HR)

SYSTEM SUPERVISOR ADMINISTRATOR

ADMINISTRATOR

STAFFS

45
 FUNCTIONS

 Organizational human resource planning and development.

 Retirement and selection.
 Wage and salary administration.
 Employee records maintaining.
 Performance appraisal.
 Welfare program.
 Job evaluation.
 Handling employee grievances.
 Handling the legal issues within and outside the organization.

PROCESS OF HR DEPARTMENT

The human resource department has 3 blocks which are:

1. Establishment
2. Industrial relation
3. Welfare

1. Establishment section

The main functions are:

I. Recruitment and selection

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 II. Transfer, rotation and placement of employees in consultation with divisional heads
III. Wage and salary administration
IV. Performance appraisal
V. Retrenchment

2. Industrial relation

Industrial relation operates only within the organization. The Inter organizational relation is
handled by the corporate cadre. 60 to 70% of management time is lost in resolving IR issues.
Therefore the H.R department is of paramount importance.

The main functions are:

 Communication between management and trade unions

 Grievance handling
 Settlement of dispute
 Handling disciplinary action
 Safeguarding employee rights
 Career related issues like promotion, transfer and rotation
 Resolving daily petty issues
3. Welfare

Welfare schemes can be divided into statutory, agreement, voluntary and incentives. The
main objective of welfare measures is to maintain healthy working environment and raise the
standards of living of employees which create harmony to the society and finally to the
organization. Baird has always maintained very healthy welfare measures. These are done
with the consultation of personal department.

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TRAINING SECTION

SCOPE:

 The procedure covers all aspects of training. Arrange suitable training for
employees for updating skills based on the identified training needs.
 Training advisory committee is responsible for suggesting training requirements of
the various departments and disciplines.
 Formulating training program on yearly basis.
 The committee proposes a training calendar every year.
 Training needs for the years are identified and record by the department head.

The details are handed over to the training department by respective department head.
Training department does compilation of the identified training needs of the employees.
Necessary training programs are arranged by the training department to cater the identified
needs of the employees.

Training department organizes training programs using internal faculty or engaging faculty
from reputed organization. The training department in consultation with concerned
department heads organizes in house training programs on special recruitment. When
employees attend training programs conducted in house, a feedback about the usefulness of
the training obtained and consolidated. The concerned department heads evaluates the
feedback from the participants after a period of 2-3 months to ascertain the effectiveness of
the training programs.

Employees are also sent for training to other reputed institutions. Nominations for sending
employees for training in such institutions outside the company are put up for approval of the
appropriate authority as per the guidelines issued by the company from time to time. The

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employees attending outside programs submits a feedback on the trainee undergone the
training department. Not only that various training programs for shop floor employees are
also given a great importance.

The achievement against annual training calendar is reviewed half yearly. The department
helps for the number of programs held, number of employees participated for each programs,
the highlights of training effectiveness feedback etc.

The training department maintains a register on the training program attended by the
employees. Training department maintains the format received from participants after getting
it evaluated by the concern department head regarding the effectiveness of training. The
managerial personal of the company are imparted training to improve their managerial
capability at the HRD centre of the company and outside institutes depending upon the needs
identified by the head of the department.

Workers participation in management

Baird encourages its workers to take part in the management of the company. The workers
are often consulted through their union while implementing major welfare programs of the
company. In addition to this the workers are also included in some of the committee for
taking management decision, which includes:

a. Canteen management committees.

b. Safety committees.
c. Shop floor committees.
d. Grievance committees.
e. Provident fund trust.
f. Tri party committee.
g. Complaint committee

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Programs for talent building

 Group management trainee scheme

 Succession planning
 Internal recruitment system
 E-learning
 Knowledge management

Program for career management

 Career planning.
 Job rotation and job enrichment.

For employee interactive process

 Organizational health assessment.

 Communication meets.

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51
 3. PRODUCTION AND PLANNING DEPARTMENT

OBJECTI VES

 Production planning.
 Co-ordination of production function.
 Co-ordination with maintenance department.

STRUCTURE

PRODUCTION DEPARTMENT

MAINTANANCE AND
ENGINEERING DEPARTMENT

MATERIALS DEPARTMENT

QUALITY CONTROL
DEPARTMENT

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 PROCESSING DEPARTMENT

WEAVING DEPARTMENT

SAMPLING DEPARTMENT

FUNCTIONS OF PRODUCTION DEPARTMENT

 Planning daily production according to annual target.

 Submitting plans to Board of Directors and Government and getting approval.
 Monitoring actual production and checking any deviation.
 Making revision plans according to actual production.
 Maintenance of plants.

Production process

Annual production targets for the next year are prepared on installed production capacity of
the plant and production data for the previous year. Necessary feedback is also taken from
marketing department while fixing the production targets. The production target thus fixed
and presented to the corporate office for review and approved by CMD and plants manager
are informed of the same. The production and the control ratio for the previous years are
duly considered. All the data are compiled to the production budget. A copy of the

53
production budget is send to the finance department for preparing finance budget based on
the production plan; purchase department initiates action for procuring raw materials.

Features of production plan

 Production plan is based on the idea of producing the maximum with available raw
materials and production capacity of plant.
 Day to day production is planned according to raw material availability.
 Daily production plan is prepared are likewise annual plan is also approved.
 Routine production plan is monitored.

Plants at baird

For weaving the yarn plants used are:

 Automated looms.
 Chinese tapier looms.
 Vacuum steaming auto clave.
 Lab for sophisticated machines.
For dyeing the yarns machineries are imported from Germany.

The dye house or dye kitchen includes plants like:

 Yarn conditioning plant.

 Yarn vacuum steaming.
 Vertical dyeing machine.
 Tabular dyeing machine.
 Space dyeing machine.

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Products

 Linen fabric or natural fabric for garmenting purpose used for both apparels and for
industrial purpose.
 Cotton linen fabrics.
 Dyed or colored linen fabrics.
 Bed spreads.

Optimization of production

The company is making all efforts to optimize production and reduce losses. Steps are being
taken to enhance the procurement of yarn as well as now recently market demands for pre
dyed yarn made product.

Production and quality standards for the products at baird

 Baird has a well defined procedure for production. The finished fabrics at Baird are
known for its quality. The quality standards at Baird are governed using four point
system.
 The quality standard is set by [AATC] American Association of Textile Chemist.
Production standards are also kept as per AATC standards.

Challenges to production department

 Raw materials scarcity is upsetting the entire production department.

 Working capital shortage is affecting the smooth functioning.

55
The year 2008 has witnessed an acute shortage of raw materials affecting industries badly.
The raw materials yarn is spun from long fibers found just behind the bark in the multi-layer
stem of the flax plant, through flax plant is not difficult to grow, and is grown only in few
countries. The yarn plant needs cool, humid climate and within moist, well plowed soil to
grow. Due to unfavorable climate there was a considerable reduction in the production of
flax plant which resulted in the production of tarn fiber.

4. MAINTENANCE & ENGINEERING DEPARTMENT

OBJECTIVES

 To ensure all equipment in production are in good condition.

 To cut down time of critical equipment.
 To reduce cost due to inefficiency in equipment handling.

STRUCTURE

GENERAL MANAGER

56

ASSISTANT MANAGER
 ELECTRICIANS FITTERS BOILER SUPERVISOR

The engineering department has been divided into four departments

1. Electrical department
2. Mechanical department
3. Instrumentation department
4. Civil department

I. ELECTRICAL DEPARTMENT

There are two functions for this department

a. Operations
b. Maintenance

A. OPERATIONS:
Electrical supply is received from Kerala State Electricity Board [KSEB] through
substations. DC (direct current) is needed for the plant and machines operations and AC
(alternating current) is converted into DC. AC is used for auxiliary purpose. The following
are the functions of the operational section,

57
  Ensuring uninterrupted power supply.
 Man management.

B. MAINTENANCE:
This section is headed by a chief engineer. In planning and implementing on engineering
works the section also provides assistance to project development of new project.

The functional set up of maintenance department includes:

a. Electrical maintenance.
b. Electrical utility: Air conditioner maintenance, plant lighting, motor for
pumping water.
c. High tension: maintenance of high tension equipment.

II. MECHANICAL DEPARTMENT

Mechanical section found to be backbone of Baird. All type of manual maintenance

is handled by this section and look forward to maintain the best possible manner and
ensure healthy and sound flow works within the organization.

III. INSTRUMENTATION DEPARTMENT

Instrumentation department is a section that comes under engineering department. The main
functions of instrumentation department are:

 Plant processing operation and control of plant and equipment.

 Keeping record for it.

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  The maintenance or up keep of equipments.

IV. CIVIL DEPARTMENT

Civil section is an independent department is headed by chief engineer. The main role of this
section is the construction of the building and other premises of the company. It is also
engaged with the social task to ensure the smooth flow of industrial activities.

The main functions of civil department are:

 Maintenance of the existing building.

 Painting and insulation.
 Tender issue for civil works.

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