Vkc

CONTENTS Chapter - I 1-1 1-2

INTRODUCTION Introduction to study Limitation

Page No. 6 9

Chapter – II 2-1 2-2

Page No. 11 13

2-3

Industry Profile History of footwear Over view of the Indian footwear industry Indian footwear components industry

Chapter – III 3-1 3-2 3-3 3-4

Company Profile Profile of VKC Group of companies. Profile of Slipons India PVT Ltd. Organization Structure Board of Directors

Page No. 16 19 21 22

Chapter – IV 4-1 4-2 4-3

Department Analysis Production Department Marketing Department Financing Department

Page No. 24 28 37

Companies Under VKC

Page No. 39

Chapter – V

14

Conclusion

41

Bibliography

43

INTRODUCTION

1.1 INTRODUCTION TO STUDY:-

Footwear is estimated to have started its long history of human use during the Ice age some 5 million years ago. Unkind weather conditions are said to have created the necessity of the footwear. Other evidences show that footwear came to use at end of the Paleolithic period, at about the same time the early humans learned the art of leather training.

Early pieces of footwear were made of wrappings, usually made of leather or dried grasses. Later on pieces were developed for an oval piece of leather which is bound by a piece of strong leather throngs. Sandals which are first crafted footwear are the successors to these wrappings.

In Egyptian funeral chamber’s, paintings show the different stages in the preparation of leather and footwear. The images also show that in Egypt, footwear depicted power and class.

The pharaoh’s sandals were distinguished by the turn up toes, a characteristic which is missing in the commoner’s footwear. The images also show that in Egypt footwear depicted power and class. The Egyptian sandals were crafted using straw, papyrus or palm fiber. Later on Egyptian women adorned their footwear with precious stones and jewels.

Footwear is demanded by all income group people. Middle and lower income group prefer low cost, durable, wear and tear resistant footwear that can be used in all type of domestic condition whereas high income group prefer fashion oriented footwear.

V.K.C footwear is preferred by all income groups. Vee key cee footwear has low cost, wearing comfort and high durability and which can be used in all season especially in rainy season.

Vee key cee is one of the most popular brands among chappals. It already introduced several brands and models of foot wears. The product segment of veekesy satisfies customers of all age group .There are fashionable models for teenagers.

The study is mainly aimed at the overall performance of the company which includes the study on department. We have made a through study on individual departmental such as production, marketing, & finance etc.

1.2 Limitations:• Time period is very short • The area of coverage has been limited to one district • Some of the retailer’s are reluctant to disclose some details in spite of their busy schedule • There may be error due to respondent’s basis

INDUSTRY PROFILE

2.1 HISTORY OF FOOTWEARS:Spanish cave drawings from more than 15,000 years ago show humans with animal skins or furs wrapped around their feet. The body of a well-preserved “ice-man” nearly 5,000 years old wears leather foot coverings stuffed with straw. Shoes, in some form or another, have been around for a very long time. The evolution of foot coverings, from the sandal to present-day athletic shoes that are marvels of engineering, continues even today as we find new materials with which to cover our feet. Has the shoe really changed that much though? We are, in fact, still wearing sandals – the oldest crafted foot covering known to us. Moccasins are still readily available in the form of the loafer. In fact, many of the shoes we wear today can be traced back to another era. The Cuban heel may have been named for the dance craze of the 1920s, but the shape can be seen long

before that time. Platform soles, which are one of the most recognisable features of footwear in the 1970s and 1990s were handed down to us from 16th century chopines. Then, high soles were a necessity to keep the feet off of the dirty streets. Today, they are worn strictly for fashion’s sake. The poulaine, with its ridiculously long toes is not that different from the winklepickers worn in the 1960s. If one can deduce that basic shoe shapes have evolved only so much, it is necessary to discover why this has happened. It is surely not due to a lack of imagination – the colours and materials of shoes today demonstrate that. Looking at shoes from different parts of the world, one can see undeniable similarities. While the Venetians were wearing the chopine, the Japanese balanced on high-soled wooden shoes called get. Though the shape is slightly different, the idea remains the same. The Venetians had no contact with the Japanese, so it is not a case of imitation. Even the mystical Chinese practice of foot binding has been copied (though to a lesser extent) in our culture. Some European women and men of the past bound their feet with tape and squashed them into too-tight shoes. In fact, a survey from the early 1990s reported that 88 percent of American women wear shoes that are too small!

As one examines footwear history, both in the West and in other parts of the world, the similarities are apparent. Though the shoemakers of the past never would have thought to pair a sandal with a platform sole, our shoe fashions of today are, for the most part, modernised adaptations of past styles.

2.2 OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY The foot wear industry is a significant segment of the leather industry in India. India ranks second among the footwear producing countries next to the China. In 1999, the global import of footwear in terms of value was around US $43278 million accounting a share of 63.42% in the total global import of leather and leather products out of this import of leather footwear alone accounted for US $ 26379 million and non leather footwear US $16899 million.

India’s exports of leather footwear touched US $ 331 million in 19992000, recording an increase of 3.29% over the proceeding year. India thus holds a share of 1.25% in the global import of leather footwear.

The major markets were the UK, USA, France, Italy, Russia etc.

In 1999-2000, export of leather footwear from India contributes 21% share of its total export of leather and its products. Nearly 33 million pairs of various types of leather footwear were exported during the year. It includes dress shoes, casuals, sport shoes, etc.

2.3 INDIAN FOOTWEAR COMPONENTS INDUSTRY

The footwear component industry is a segment of leather industry in India. The footwear component which are mainly exported from India are leather shoe uppers and leather unit soles. The estimated annual production capacity of leather shoe upper’s is 112 million pairs. The major production centers are Chennai, Ranipet, Agra, Tamilnadu etc.

The component industry has enormous opportunities for growth to cater to increasing production of footwear of various types, both for export and domestic market.

Nearly 75% of the total export of footwear component is from the southern region followed by northern region with a share of 13%.

Nearly 83% of the India’s export of footwear component is from the UK, Germany, Italy, USA, France and Portugal.

In the year 1999-2000, India exported footwear components tune of 38 million on pairs mainly consisting of leather shoe uppers, unit soles etc.

COMPANY PROFILE

3.1 PROFILE OF VKC GROUP OF COMPANIES

“VKC group of companies are the leading footwear manufactures especially in southern region of India. The group established on August 17, 1984 with its Administrative office at Calicut, with a nominal capital and

limited number of employees. In 1984 the founder of the group Mr.V.K.C Mammed Koya started a Hawai sheet manufacturing unit with his two brothers. Later on Hawai straps were also inducted to the production line and in 1986 VKC group launched the first product with its own brand name in the market viz. VKC Hawai with an initial production of 600 pairs per day. By 1989 the production increased to 5000 pairs per day and by 1996 it jumped to 17000 pairs

In1987 Mr.V.K.C Mammed Koya, with some of his friends, initiated and started the first RPVC footwear manufacturing unit in the Malabar area of Kerala State. This product also got very good acceptance in the market. The success of the Hawai chappal unit and the RPVC unit gave a green signal to the business community and the vast potential was realized by the various industrialists in the footwear industry. This has resulted in a rapid change in the footwear industry scenario and within years the number of Rubber and RPVC unit grew to more than 80in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This resulted in a rapid change in footwear

manufacture and the multinational brands who were predominant in the Kerala market felt competitions from the local brand.

In 1998 the group started the first Micro Cellular PVC footwear in Kerala with imported plant and machinery. “Consistent quality at affordable price” made the VKC groups products popular in the market day by day. The success in the Kerala market gave morale boost to the group to market their products in the other Southern states.

In 2001, the group started the first Air Injected PVC DIP footwear manufacturing unit in the South India. In 2003 the group commissioned the first Injected EVA manufacturing unit in South Central India. In 2006 the group started backward integration and started the first EVA Compounding plant in the South Central India. The 2007, the group started manufacturing PU DIP footwear.

During this period young and challenging entrepreneurs having high academic qualification and with technical, commercial and practical knowledge were inducted. The group now consists of 20 working Directors

and 60 share over 19 units. Annual group turnover stands at Rs 700 million. As on date more than 1000 employees are working in these units.

The company had achieved a unchallenging position in the footwear market of India. The main markets, which are concentrated by the company, are Kerala, Tamilnadu and Karnataka. Coupled with quality and innumerable models of VKC products, in all segments of footwear, help the companies to face the market competition. The company has been able to maintain the quality of the products by adopting foreign technologies. The group is now looking for further avenues in the field of footwear to expand their horizons.

3.2PROFILE OF SLIPONS INDIA PVT.LTD

M/s Slipons India Pvt.Ltd. is a group company of renowned VKC Group. It is registered as private limited company and incorporated on 28.10.2002 under the Companies Act, 1956. The commercial production of the company was started on 01.09.2003

The Company is located on the side of National Highway 17 at Valiyaparamba, Thalappara and 30Kms away from Calicut City. It has got 55 Cent of land and building measuring an area of 10,000 square feet.

The founder of M/s Slipons India Pvt. Ltd Mr. V.K.C.MAMMED KOYA. The management of the company now consist five Directors. The Chairman of the company Mr. V Abdul Razak is a post graduate in Business Administration having more than 15 years experience in footwear manufacturing including project implementation. The executive Director Mr. V.P.Azeez is a technocrat with more than 15 years experience in Rubber and Plastic industry. Another Director Mr. M.V. Venugopal is a Charted Accountant.

M/s Sliopns India Private Limited is the first company in South India for the manufacture of EVA Footwear with injection technology. The Company adopts Italian Technology of manufacturing of Injected EVA footwear and is associated with M/s Ottagalli Businaro, Italy. Annual Production Capacity including the licensed agreement is 3.2lakh pairs. The product group consists of as season Ladies .Gents, Boys and Children footwear with full EVA, EVA sole with PVC upper and EVA sole with synthetic leather upper. The company market EVA footwear under the brand name of “slipons” and brand is synonymous with EVA footwear. The aggressive marketing techniques adopted by the company through various media coupled with consistent quality of the product at affordable price opened new era of light weight footwear in Kerala market replacing conventional products and other well established brand in this segment. Apart from Kerala the company has a good market for their product Middle East countries also. The company keeps an eye on the ever changing trends of the footwear market and introduces innovative models and concepts in EVA footwear so as to be the leader in this segment.

All affairs and day-to-day business administration of the firm is vested in the hands of Boards of Director. They are in charge of various activities like Production, Finance& Marketing. The board is assisted by qualified administration staffs.

3.3 Organization structure. Chairma

Board of Directors

Executive Director

Personal

Production

Supervisor

Channels of Distribution

Skilled Labours

Semi Skilled Labours

Finance & Administration Accountant

Sales Promotion

Un Skilled Labours

Marketing

Office Assistant

Advertisement

Market Research

3.4 Board of Directors

Chairman

: VKC Mammed Koya

Managing Director : Mr. V. Mohammed Kutty Executive Director : Mr. V. Abdul Rasheed. Director

: Mr. V. Jamshad.

There are five administrative staffs including an accountant in the company. The total number of worker’s in this unit is 42

DEPARTMENT ANALYSIS

4.1 PRODUCTION DEPARTMENT Production department is responsible for the production of goods and services in the organization .The production process of VKC group of company can be understood from the following diagram.

a) Production process Production Process EVA Compound

Blending

PVC Raw Material

Synthetic Leather

Cutting Mixing

Injection Moulding Process

Semi Finished Footwear

Injection Moulding Process

Finishing

Stitching

Show fitting & Riveting

Finishing Quality Checking

Printing Assembling

Packing

Finished Footwear

Dispatch

b) Machinery used EVA Injection Moulding Machine Blending Machine PVC Mixer Cooling unit Compressors PVC Injection Moulding Machine Generator Clicker

Pressing Machine Packing Conveyor Stitching Machine

c) PACKING PROCESS Trimming Process

Conveyor System

Upper & Sole Cleaning

Tag Fitting

Packing into Small Carton

Fixing Size & Price Sticker in Small Carton

Packing into master Carton

Final Check up in Pairs, Art No., Size & Price

Box Strapping

4.2 MARKETTING DEPARTMENT “Marketing is the management process responsible for the identifying, anticipating and satisfying consumers’ requirements profitable”. To be the best product in the market company is giving importance to the following.

BRAND NAME

: The brand name used for the product is “Slipons”.

SLOGAN

: “Lighter than you imagine”.

QUALITY

: Quality of the product is the main marketing technique

that the company used. ADVERTISING

: The Company treats the advertising as the main mode

of marketing to improve the sales of their products. SCHEMES

: One of the main marketing techniques of the company

is the different Schemes for their customers and dealers. WHOLSALERS MEET: The Company conducts the Wholesalers Meet at least once in a year. By this the company provides an opportunity to the wholesalers to interact with the company and between the dealers. This helps to identify problems, sort out differences, and to formulate plans for future improvement in the market. ORDER TAKING & COLLECTION: The Company executives are directly taking the orders from the wholesalers. DELIVERY SYSTEM: The Company has very good system for the supply of the products to the wholesalers. The company had provided door delivery system and they are fixed a weekly chart for the supply.

THE MARKETING TECHNIQUES USED ARE:

A) CHANNELS OF DISTRIBUTION B) SALES PROMOTION C) ADVERTISING D) MARKET RESEARCH

A) CHANNELS OF DISTRIBUTION: Channel of distribution is the set of marketing intermediaries through which the goods flow from the producer to consumer. The company had provided the door delivery system to the wholesalers for the distribution of products through their owned vehicles and through the different transporters.

The Channel of Distribution followed by the Company is: Manufacture

Wholesaler

Retailers

Consumers

The company adopts a two level distribution system consisting of Wholesale dealer and Retail dealer. The company is satisfied with the existing arrangements.

B) SALES PROMOTION:

Sales promotion plays a major role for the success of the VKC products. Sales promotion influences the customers for buying the products and also helps to meet competition. It popularizes the product so as to stimulate demand.

Sales promotion tools used are:

CONSUMERS PROMOTION  COUPONS  DEMONSTRATION  CONTEST  PRICE OFFER  DEALER PROMOTION  SALES CONTEST  DEALER GIFT  TURNOVER ALLOWANCE

C) ADVERTISING & SCHEMES:

The VKC’s Advertising covers all activities connected with giving of publicity regarding goods and services offered for sale.

The main Medias for advertising are: Indoor Media & Outdoor Media

INDOOR MEDIA  TV CHANNELS  NEWS PAPERS  MAGAZINES  CATALOGUES, DANGLERS, CALENDERS, & STICKERS

OUTDOOR MEDIA

 NAME BOARDS & A BOARDS  HOARDINGS

TV CHANNELS: Advertisements of the products of the company are given in all the major TV channels in Malayalam. The Brand Ambassadors for the product is Cine Artist and Models “Lakshmi Rathan, Raji, Aaru Nayar, Baby Sooraj and Silpa”.

SCHEMES: The company is providing different schemes for customers, retailers and wholesalers during seasons. This helps the company to gets the good results in sales and publicity.

The company had already undertaken various schemes and contests like:

 VKC Sammanotsavam  Mathrubhumi – VKC perdition contest (Football World Cup 2006)

D) MARKET RESEARCH

Market research helps in analyzing the buyer’s habits, popularity of a product, and effectiveness of advertising media. It also helps to collect information about marketing problems and opportunities.

The continuous marketing research has been conducted by the company which helps them in planning and executing marketing strategies for the future course of action.

THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM is

1. FOREIGN TECHNOLOGIES: The main advantage of the company is the implementation of Italian technology used by them for the injection moulding process. Moulding process is the main activity and the key process of manufacturing of quality footwear.

The Company purchases Footwear Mould from Ital, Taiwan and China. This will help the company to ensure high quality with accurate size and good finish to the product.

2. EMPLOYEES OF THE FIRM:

The relationship.

Company

always

maintains

good

employer-employee

The employees are well satisfied with the attitude of the

management towards them and in the facilities provided to them. So there were no labour strikes, labour absenteeism and labour resignation. The company provides excellent training programs for the employees to improve the skills and productivity with in a lesser time. The employees are getting the statutory benefits like Bonus, ES scheme, Employees Provident Fund, Festival Holiday Allowances from the company.

3. QUALITY OF THE PRODUCT: Quality can be viewed as a weapon for competitive advantage, as a means of profitability and a source of value for customers, investment in quality achieves desired business results. Quality derives the productivity machine and leads the firm to prosperity.

Quality of Slipons product is the combined effort and cooperation of the entire organization.

Quality Management of VKC involves quality

planning, quality control and quality improvement which are cross functional in nature.

The company has to face keen competition in the market since there are numbers of footwear’s manufactures in the country. The main factor, which determines sales, is the quality of the products.

The company

produces good quality products and hence they are capable of competing with others. M/s Slipons India PVT. Ltd. Has succeeded in withstanding stiff competition from the parallel manufactures because of the superior quality of their products at reasonable price. 4. ADVERTISING & MARKETING: The advertisement of VKC’s product is of news of information concerning an ideas, services or products to induce action which is suitable with the intent of the advertiser.

The advertisement given is based on the new trends in the market and which are highly attractive by the customer.

“Marketing is the process of providing the right product of the right quality in the right quantity in the right place at the right time”.

4.3 FINANCE DEPARTMENT:-

VKC maintains a separate finance department under the super vision of finance manager who is assisted by the assistant manager and his subordinates .The section handles all the financial aspect of the firm. All transactions are handled through computerized transactions. All the transactions are done by tally.

COMPANIES UNDER V.K.C

1. VKC Rubber Industries PVT Ltd:This is the first hawai manufacturing unit of the vee key cee group located at kolathara. They are producing the hawai chappals under the brand name ‘VKC Hawai’

2. Turbo Rubber Industries:-

The industry is located at Alappuzha District. The intention of management is to satisfy the needs of people in the southern region of kerala. This unit is also producing hawai chappals.

3. Vee Key Cee Polymers Private limited:During the rainy season there will be less demand for the hawai chappals. As a result of this they entered the filed of producing plastic foot wears .This unit is located at Ramanattukara in Calicut District. They are manufacturing plastic foot wears.

4.VeeKey Cee Plastomers India private limited:The unit producing hawai chappals is located at Coimbatore. The management of organization is trying to capture the market out of the state also. That is why one unit was established in the state of Tamilnadu

5.Fortune Elastomers PVT Ltd This unit is producing synthetic upper leather footwear. It is located at kolathara. This shows the ability of management in diversifying its products.

6.Veekesy Elastomers private Limited:-

This unit is also producing synthetic upper leather footwear. 7. M/s SANDLON TECHNOLOGIES PVT. LTD 8. M/s VIMSONS RUBBER PVT. LTD. 9. M/s CALIFER POLYMERS PVT. LTD. 10. M/s FORMOSA SHOE COMPANY PVT. LTD. 11. M/s EMERALD PLASTOMERS PVT. LTD. 12. M/s SLIPONS INDIA PVT. LTD. 13. M/s DIADORA SHOES PVT. LTD. 14. M/s DIMESCO FOOTCARE INDIA PVT. LTD. 15. M/s KOVAI FOOTWEARS PVT. LTD. 16. M/s FERRARI SHOES (INDIA) PVT. LTD. 17. M/s VEEKEYCEE FOOTCARE (INDIA) PVT. LTD. 18. M/s MORBIDO VINYL PVT. LTD. 19. M/s SMARTAK FOOTCARE PVT. LTD.

CONCLUSION

CONCLUSION

Retailers are very important for the success of a business, because they are acting as a link between the company and the ultimate consumers. So their satisfaction is very important. Most of the retailers are satisfied with V.K.C. Slipons India Ltd.. Most of them said that it helps to increase their sales. They also believes that customers are satisfied with the prizes offered in Slipons. Thus all the retailers are satisfied with V.K.C. Slipons.

BIBLIOGRAPHY

BIBLIOGRAPHY

Marketing Management

: A. Vinod

Project Management

: Prof. P.R. Sreedharan

Research Methodology

: A. Vinod