CHAPTER - II TEXTILE INDUSTRIES

One of the oldest industries in India is the cotton textile Industry. The word textile is derived from the Latin word Texere meaning to weave and originally applied only to woven fabrics1. Then it expanded to mean fibres, and fabrics produced by interlacing or any other construction method. Thuks, threads, cords, ropes braids, lace embroidary, nets and fabrics made by weaving, knitting, bonding, felting, or Tuffing are included in Textiles. An organized cotton textile industry is one of the oldest and most firmly established major large scale industries in the world2. The cotton textile industry may be considered as the real swadeshi industry of India built under Indian management and sacrifice. In addition to providing means of livelihood for nearly 10 million handloom weavers, the mill industry provides direct employment to nearly 8 lakh workers representing about 20% of the total industrial population of the country3. The cotton textile industry thus is the biggest large scale industry in India. The annual value of cotton mill production is more than 30 percent of the value of the country's industrial output4.

1 2

. Encyclopaedia Britannica, Vol. XXXIX. The University of Cicago, USA, 1985, p.180. . Ibid., 3 . M.R. Chaudhuri, Indian Industries Development and Location, Calcutta, 1970, p.153. 4 . Ibid.,

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An important section of the country's farming population finds employment in the production of cotton or 'white gold', the industry's basic raw material. The processing of cotton into finished products in the mills is a major source of employment to a large section of the people. From early times India has been noted for its fine cotton fabrics. The Calicos of Calicut and Muslins of Dacca - now in Pakistan - were celebrated all over the world for their fine texture and embroidery. Cotton spinning and weaving were highly developed in India even 2,000 years ago 5. Indian handlooms produced fabrics of rare quality, including embroideries, silk, carpets and chintz. Even after the introduction of power-driven machinery in England Indian yarns were imported into the U.K. The large quantities of cheap and graceful Calicos, Muslins and Chintz that were imported into the U.K. by the East India Company at the end of the 17th century became rivals to Lancashire fabrics. This alarmed the woollen and silk manufacturers so that the use of the Indian Calicos and cotton goods in dress or furniture was prohibted in Britain for some time6. The English cotton manufacturing industry was revolutionized with the application of steam and power loom so that cotton piece goods in the U.K. were produced at a very cheap rate. Lancashire goods began to pour into India and became great rivals

5 6

. P.K.Verma, Industrial Development in India, New Delhi, 1989, p.35. . B. Satyanarayan, Growth of Industrialsation and New Economic Reforms in India, New Delhi, 2001, p.75.

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to the handloom product produced by the weavers in this country. Lancashire gained prominence while the Indian cotton textile industry declined. The first cotton mill in India was started at Calcutta in 1818. But the attempt was not successful7. It was in 1854 that the cotton mill industry in India gained a real footing when a cotton mill was established at Bombay under Parsi enterprise. From its inception the industry passed through vicissitudes of fortune till it reached its present status. As the industry grew up the yarn trade with China fetched it good profit. The Indian market was not initially favourable, because of competition with Lancashire goods but the natural advantages of humid climate, raw materials and an external market helped the growth of the industry considerably. During the latter part of the last century Japan became a rival to India in yarn trade with China and the Far Eastern Asia. During the first World War (19141918) Japan obtained better opportunities for marketing her yarn to China8. India was dependent considerably on the U.K. for the supply of machinery, caustic soda, bleaching powder, etc., for her cotton mills. The home market was not favourable to the industry because of competition with Lancashire fabrics which poured into India in huge quantities. Production of yarn was more profitable than the production of cloth because the yarn could be marketed outside 9. Railway freight charges in India for transporting coal to the cotton mills were high as the
7 8 9

. P.S Mohana Kumar, Cotton Textile Industry, New Delhi, 1997, p.5. . K.V. Sivayya, VBM Das, Indian Industrial Economy, Visakhapatnam, 1972, p. 404.

. Ibid., 55

coals had to be obtained from the Damodar Valley, the only important coal producing area in the country. It was, therefore, more profitable to import coal from South Africa by sea route for the cotton mills of India. This situation continued till water power was developed in Bombay and other areas in the early part of the 20th century10. Such were the many problems of the cotton mill industry in the early days of its development. After the First World War the condition of the industry improved slightly. The Tariff policy adopted in 1927 and pacts with Great Britain and Japan to restrict imports helped to improve the condition of the industry immediately before the Second World War11. The internal market became favourable and the spinning and the weaving sections of the industry made considerable progress. Cloths could also be exported outside. During the Second World War the industry made great progress since the demand for cloths in the country increased partly due to import difficulties and partly due to the increasing requirements of cloths for the Army. The cotton mills began to work for three shifts a day instead of two shifts. Cloth, however, was not available in good quantities for civilian consumption so that in 1943 the supply of cloth to civilians was restricted to by the Government and cloth control order was made effective12. The standard cloth scheme was launched on and from 1st April

10 11

. S. Anno, Pearse, The Cotton Industry of India, England, 1929, p. 175. . Ibid., 12 . J. Addy, The Textile Revolution, New Delhi, 1976, p.24.

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194413. Bengal, in the grip of a food famine at that time, also buffed from cloth famine. The textile industries begand to appear and there were 294,000 acres of land in the district of Tirunelveli under cotton cultivation 14. Three large spinning-mills, thirteen ginning-factories, and six steam-presses were employed in the treatment of the product. In addition to these, there were numerous hand-gins (manial), worked either by cotton-growers on their own account or owned and controlled by small capitalists15. Hand-spinning as a serious industry has long been extinct, the few spindles which had survived the competition of imported machine-made yarn having fallen into almost complete disuse with the establishment in the district of the spinning factories, first at Papanasam and later at Tuticorin and Kovilpatti16. The Tinnelvelly Mills at Papanasam which are driven by water-power, represent a very great advance on an idea first put forward by Lord Napier, Governor of Madras. In 1869, he visited the district and suggested a scheme for the utilization of the Tamiraparani as a motive power to work a cotton mill. He selected a site between the Papanasam falls and the Kodaimelalagian dam. It was considered that in all seasons the water would suffice both for irrigation and for
13 14

. V.K. DuBey, Industrial Development Planning and Challenge, New Delhi, 1996, p.55. . H.R.Pate, Tinnelvelly District Gazetteer, Tirunelveli, 1993, p.211. 15 . Ibid., 16 . P.K. Nambiar, Census of India, 1961, Vol. IX, Madras, Part XIV, District Census Handbook, Tirunelveli Vol.I, 1965, p.61.

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the mills then under17. Accordingly in the same year M.Duval, a French engineer stationed at Pondicherry, was engaged by the government and sent down to Tinnevelly to examine the project scientifically. He finally selected a spot on the island of high ground which is enclosed by three of the streams in which the Tamiraparani flows above and below the Kodaimelalagian dew the southernmost arm. In 1883 Mr. Frank Harvey, engaged in the cotton trade of the district, conceived a far more scientific scheme. His proposal was to build a mill at the foot of the hills and, by diverting the river above the Papanasam falls, to utilize to the full the immense power developed by the water in its descent from the crest of the hills to the plains. The permission of government was obtained for the free use of the water and in 1885 the Tinnelvelly Mills Company Ltd was formed at Vickramasingapuram. This mill was popularly known as Water Mill. 18 The Coral Mill of Tuticorin was started in 1888 and, like the Papanasam factory, it was under the management of Messrs, A. and F.Harvey. It has nearly doubled in size since its formation, being slightly larger than the other factory. The factory was the property of a limited company with a capital of Rs.15 Lakhs 19.

17

. Government of Madras, G.O. No.531, Industry Development Department, dated 22 January, 1969. 18 . H.R. Pate, op.cit., p. 212. 19 . K.S.K, Velmani, op.cit., p. 548.

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The cotton factory at Kovilpatti near the railway station contains nearly, 15000 spindles and employs, when working, about 800 hands. It was started by some Muhammadans as a limited company with a capital of five lakhs. The concern did not pay, and the company went bankrupt and was wound up in 1908. The propert came to court for sale and was bought by two Nattukottai Chettis for nearly seven lakhs of Rupees. After having lain idle for a year and a half the mill re-opened as a purely private concern, which went under the style of the Kamakshi mills20, So things continued till July 1911, when a new company, calling itself the Sri Chidambara Vinayakar Mills, Ltd, was floated with a norminal capital of seven lakhs, the original owners hold two-thirds of the shares, the remaining capital having not yet been called for. From the point of view of the cotton trade it was probable that no better site for a spinning-mill could be found in the district. A small amount of ginning is also done in the factory. According to Dr. Caldwell21 who obtained the particulars at first hand, the first press or screw (as the machine was then called) erected in Tuticorin was set up in 1832 by Mr. Groves, an English merchant of the palce. Before this the commercial department of the East India Company had their own screw at Kokkarakulam and Mr.G.A. Hughes owned one at Tachanallur. The press at Tuticorin owned by the Tinnelvelly Cotton Press, Limited, and managed by messrs. Dymes & Co. was originally such a screw. The oldest steam press in the
20 21

. H.R. Pate, op.cit., p. 213. . Bishop R. Caldwell, History of Tinnevelly, New Delhi, 1989, pp. 83-84.

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place was originally set up in 1840 by messrs. Arbuthnot & Co., Altogether there were six steam presses in Tuticorin, all owned by European firms, the largest and most efficient being that belonging to Messrs. Ralli Bros. The density obtained by the steam press as compared with the old screw was incomparably greater. The steam-ginning factory was first introduced in the district in 189422. There were thirteen gins worked by machinery, and most of the raw cotton its way to one or other of these. The largest factory was that owned by Messrs. Ralli Bros., at tuticorin. It possesses 40 double-roller gind, each of which can turn out 750lbs. of cleaned cotton in a day of twelve hours. Other large factories of the kind are those of Messrs. Dymes & Co., Limited, one at kadambur, the other at Tuticorin. At Nalattinputtur messrs. Volkart Bros. had a factory in Tuticorin. Besides those already mentioned, these were steam-gins belonging to Messrs. A.and F. Harvey. The new berar company, and a factory were leased to Messrs. Ralli bros., by its Indian owners. The remaining factories were mostly small. When the Dutch, possessed the monopoly of the seaborne trade in cloths, weaving must have been an industry of first-rate importance. The Dutch had weavers bound by contract to work for them in various centres and the broadcloth of the district found a ready sale in the markets of Europe23. From the time of its formation till its abolition in 1831 cotton piece-goods accounted for a great part of

22 23

. H.R.Pate, op.cit., p. 214. . A. Indu, Dutch Settlements on the Corromandel Coast 1600-1750.A.D - A Study, M.Phill Dissertation, Presidency College, Chennai, 2006, pp. 38-40.

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the investment of the commercial department of East India Company. Weavers who accepted the Residents terms and agreed to supply cloths for his trade were exempted from the loom tax. With the disappearance of the department the tax was reimposed, the importation of machine-made cloths soon started, and the weavers struggle had begun24. A class of capitalists rendered possible a

combination of workers and a fairly large and continuous output of woven fabrics, which made weaving a profitable industry. In all the important weaving centres of the Ambasamudram taluk the rich Brahmans of Kallidaikurichi (in which town alone there were over a thousand looms) had their taragans25. They advanced money to the local weavers and bought the finished products from the, at a price which made allowance for the sum advanced plus interest and leaves a margin both for the brokers commission and the sellers profit In kallidaikurichi and Sermadevi these Brahmans had set up cottage factories on a small scal, employing Illuvans and, in one case, Marava boys were employed to work the looms. In Ambasamudram itself the richer Kaikkilaiyand have recently made an attempt to break the Brahman monopoly by the employment of their own casetmen as brokers; handicapped by the lack of capital, they are unable to offer the weavers terms as good as the Brahmans can afford, and their efforts are not likely to succeed.

24 25

. Ibid., . Taragan means broker.

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In Eruvadi (Nanguneri Taluk), Tenkasi and Kadaiyanallur (Tenkasi Taluk) Muhammadan weavers are similarly under the control of Muhammadan capitalists of Melappalaiyam and considerable profits accrue to the employers from an extensive export trade to Ceylon and Singapore26. Where capital is absent,

weaving, as a rule, does no more than supply local demands. Any surplus products are being hawked about in the neighbouring markets. In the district27 Kovilpatti is a leading town in the production of matches and the town is a leading place in the map of small scale industries in Tamilnadu. So this town is called Match Town. It is because of the fact that agriculture flourishes in and around Kovilpatti. particularly by cotton mills. Cotton is utilized by big industries

Favourble geographical conditions, efficient

entrepreneurship, availability of fund, cheap marketing facilities and cheap labour are the other factors responsible for the growth of textile and small scale industry. The Loyal Textile Mill: The cotton factory at Kovilpatti near the Railway station contains nearly fiteen thousands spindles28. It was started by some Muhammadans 29 as a limited company with a capital of Rupees Five Lakhs in the year 1886. The company had not worked out and so the company went bankrupt and was closed in 1908. The

26 27

. K.S.K. Velmani, op.cit., p.547. . P.K. Nambiar, op.cit., Vol. X, p.48. 28 . H.R Pate op.cit., p.213. 29 . Ibid., p. 213.

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property came for sale and was brought by Nattukkottai Chettiars for nearly seven lakhs. After one and half years, the mill reopened as a purely private company, which went under the style of Kamatchi Mills. The things continued so till July 1911, when a new company, calling itself the Sri Chidambara Vinayakar Mills Limited, was floated with a nomial capital of seven lakhs. 30 This mill was later called Loyal Mill. In the initial stage one thousand one hundred and four labourers and one hundred and thirty office staff were employed in this mill31. This mill has been installed in accordance with the modern

technology. The mill purchases raw materials from other states also. The finished products are exported to foreign countries such as United Kingdom, Germany, Italy, France, Spain, South Korea, Taiwan, Denmark and Singapore. Now the annual turnover is rupees four crores and the mill has twenty one thousand seven hundred and twenty eight spindles. INTUC ad AITUC are the leading labour unions functioning in the mills. This mill has established its name in the market for its good quality products. The Lakshmi Textile Mill : Lakshmi32 is a very familiar and popular name in the textile world. G.Kuppusamy Naidu, the founder of the Lakshmi group of companies was dealing

30

. N.G. Bhogendranath, Development of the Textile Industry in India, upto 1950, Madras, 1957, p.12. 31 . Ibid., 32 . History of Lakshmi Group of Industries, Kovilpatti, Report, dated 24 April, 1984, p.2.

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in cotton, Kovilpatti was a backward town in Tirunelveli district before 55 years. At that time people of this town dedicated their services only to agriculture33 and match manufacture provided occupation for the rural people. In 1938, when the founder toured Tirunelveli District he noted that cotton had grown abundant on the black soil of the Kovilpatti region 34. Considering the cost of yarn supplied to weavers was higher, the idea of opening a branch of the mill at Kovilpatti originated during his travel. He immediately bought a site of fifty acres of land at the foothill at Kovilpatti. The foundation for the mill was laid in 1940. The commercial production started in 194135. The spindles of the mill of Kovilpatti were gradually increased to sixteen thousands in 1948 and to eighteen thousands and five hundred in 1949 and to twenty six thousands in 195036. The Lakshmi mill group set up some educational institutions. They are G. Venkatasamy Naidu College, Lakshmi Higher Secondary School and three primary schools. Sri G. Kuppusamy Naidu memorial Sports Trust is exclusively functioning to promote the Sports activities. Sri G.Kuppusamy Naidu All India Hockey tournament which has been conducted for the past thirty eight years is the best example. Kovilpatti Lakshmi Roller Flour Mills Ltd, a private sector

33 34

. Balakrishnan, Kuppusamy Naiduvin Vazhkai Varalaru Tamil, Kovilpatti, 1989-90, p.141. . Lakshmi Group of Industries, Kovilpatti, Report, 24 April 1984, p.4. 35 . Ibid., 36 . Textile Industry in South India Journal of Industry, Eight year of Issue, 25 December, 1957, p.5.

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company has establishment flour mills sheet metal division and textile units at Gangaikondan, 16km from Tirunelveli and about 600km from Chennai. A

medium scale factory was established in the year 1964 with the installed capacity of 42000 tons. The capital investment during inception was Rs. 85.48 lakh. This plant produces maida, sooji, atta and bran and the raw material viz, wheat, is purchased from Food Corporation of India and also from open market in Punjab, Haryana, Uttar Pradesh and Rajasthan. The flour mill is a member of the Tamil Nadu Roller Flour Mills Association. The mill produced a quantity of 21623m.ton during 1992-9337. Present Conditions: From the forgoing pages one can understand how a number of textile industries have come into existence in the district from 1831 onwards. They provide employment and labour services to thousand and thousands of poor people of the district. Almost all the mills purchase cotton from other states besides Tamilnadu. The finished products are exported to foreign countries such as Japan, USA and United Kingdom.

37

. Report from the Manager (Accounts). Kovilpatti Lakshmi Roller Flour Millls Limited, dated 18 November, 1993.

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Job Satisfaction: According to Keith Davis, Job satisfaction is the favourableness or unfavourableness with which employees view their job38. According to Kolasa Job satisfaction is, somewhat broader in that job fits into the total picture of the persons functioning39. According to Milton Blum, Job satisfaction is the result of various attitudes the employee holds towards his job- related factors and life in general40. According to Sinha and Agarwal job satisfaction is as, a persistent effective state which has arisen in the individual as a function of the perceived characteristics of his job in relation to his frame of reference41. Personal Factors: The relation between age and job satisfaction is determined by some factors like. The positive relationships are continued up to pre-retirement years and then satisfaction is decreased gradually. This is because in the later years of ones life, every one aspires for better and more prestigious jobs. If they does not get any promotion his satisfaction declines. Several investigations have indicated their job satisfaction is relatively high at the start, drops slowly in the fifth or eighth year and then rises again with greater length of service on the job. The highest morale

38 39

. Keith Davis, Human Behaviour at Work, MCGraw Hill, INC, US, 1989,p.83. . Blairrelast introduction to Behaviour Science for Business, New York, 1969, p.95. 40 . Milton Blum, Nayalon Industrial Psychology, Printice Hall, UK, 1952, p.102. 41 . Friest J.M. Cormich Daniel Ilgen, Industrial Psychology, Printice Hall, UK, 1985, p.325.

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is reached after the twentieth year. The relation of intelligence to job satisfaction depends on the level and range of intelligence and of the challenge of the job. Most investigations on the subject have found that women are more satisfied with their jobs than men. This is also despite the fact that women are generally discriminated against in job competition and may quite possible the reason is that womans ambitions and financial needs are less. Personality has been suggested as major cause of job satisfaction. While criterion of personality is the existence of neurotic behaviour. In a study, it was found that persons who were rated high in inter personal relationship by their employees were more satisfied with the job42. Skill in relation to job satisfaction has a bearing on several other factors such as kind of work, occupational status, responsibility and other others. Most of people want that there should be higher status in the work or in their business, profession or any other work. Studies reveal that works are laced prominently on the top of the list of occupation status. The status depends not only on the way the employee regards the work but also on the way it is regarded by others. The employees are more dissatisfied with the work that has less social status and prestige. The place where a person lives has a slight bearing on whether he wants to change work. Workers in large cities are less satisfied with their work than are those in smaller cities and towns. Size of city is the most important factor that has
42

. H.R. Pate, op.cit., p.45.

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been found to account for differences in job satisfaction among these cities in Tamilnadu. The importance of pay as a factor in job satisfaction has been greatly over emphasized by management. Many companies fee that a pay raise is a Cure all which will make everyone in the plant happy. Most studies have found that pay ranks well below security, type of work and opportunity for advancement 43. Security is a fundamental need; it is more important than the wages one gets or the chances for advancement. It is not sufficient for a man to have his physical needs satisfied. Apart from this he also wants to ensure that he will continue to be satisfied in future. The man with security feels that the firms value him and that he has the abilities and the opportunities to keep his job security is a positive factor which contributes to job satisfaction44. Promotion is positively related to job satisfaction. It is tied up with occupational level and social prestige. It has also the capacity to fulfill and increase a number of needs. If there are no

promotional avenues open in a particular work the person concerned with feel dissatisfied. Though promotional opportunities are closely related to the merit seniority is also considered45. To a worker, supervision is equally a strong contributor to the job satisfaction as well as dissatisfaction.
43

The feelings of workers towards his

. Techno-Economic Survey of Madras, Department of Industries, Labour Co-operation Madras, October 1960, p.37 44 . Ibid., 45 . Report from the Manager(Accounts) Kovilpatti Lakshmi Mills, dated 18 November, 1993.

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supervisors are usually similar to his feelings towards the company. Having a friendly rather than an oppressive supervisor changes attitudes greatly. The

supervisor is good, if he is able to produce and establish a climate of good team spirit. The role of the supervisor is a focal point for attitude formation 46. Bad supervision results in absenteeism and labour turnover. Good working conditions, atmosphere, and pleasking surroundings help in increasing the production of an industry. Working conditions are more important to women than men. Hours are more important to men than any other specific aspect of working conditions, but among women, specially married women, this aspect is even more significant. To the educated people and higher level employees, hours are almost a negligible factor in job satisfaction. Responsibility usually goes with the work age, wages, type of work and participation and it may have some relation to interest. Various studies have traced this factor as a factor of intermediate importance. It is quite reasonable as well, because people like to be near their friends. The other reason is that since men belong to various groups which the greatly influence their expections and behaviour47. Bonus is something good, especially extra dividend on the shareholders of a company, distribution of profits to insurance policy holders or gratuity to workmen beyond their wages. It also represents the desire of the

46 47

. Ibid., . Ibid.,

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employer to share with his workers the surplus generated by common endeavor and enterprise. Fringe benefits have been emphasized by both management and unions. Like pay fringe benefit have also generally been misunderstood. Perhaps the reason is that some benefits are substitutes for security, sick pay and insurance. A study job satisfaction gives the management general level of satisfaction among the workers of the company. The study may be made with reference to a particular group of employees. It tells how employees feel about their work and about the organization, what part of their jobs these feelings are focused upon, which departments are particularly affected and whose feelings are involved, etc Such study is a powerful diagnostic instrument for assessing employee problems48. The flow of communication is in all directions that is upward, downward and is taken up and discussed. When we encourage the workers to explain what is in their minds upward communication may be fruitful49. The attitude of workers is improved through job satisfaction study. It acts as a safety value, releases ones emotions by expressing them during the course of survey. Thus, job satisfaction study is an expression of management interest in employee welfare and this gives employees a reason to feel better toward management.

48

Industrial Potential Survey of Tirunelveli District for Starting Industries, Compiled by Industries Service Institute, 1993, p.83. 49 . Ibid.,

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It determines the training needs of the employees and the supervisors. It can be well established in the course of survey in what areas the employees are dissatisfied or satisfied. It helps the management to determine whether employees or supervisors need training and in which field so that the management may arrange for the training50. Executives and union office bearers discuss the various wants of the employees. Unions rarely oppose the survey results and in most of the cases support them especially when they know that they will share the results.

Work Conditions: If work conditions are better than community conditions, job satisfaction is higher. Workers compare works way of life with the community way of living and they are more satisfied when these two values come reasonably close together51. The Sri Ganapathy Mills Company Limited The Sri Ganapathy Mills Company Limited is situated in Sankar Nagar, Tirunelveli District. It was originally incorporated in the year 1946 with the primary objective of spinning cotton yarn52. The main promoters were S.S.

Arunachalam pillai S.S. Alwarapa pillai and C. Somasundaram Pillai 53. The mill
50 51

. Director of Handlooms and Textiles, Report, Chennai, 1998, p.120. . Ibid., 52 . Government of Madras G.O. No. 251, Industries, Labour and Co-operation Department, dated 5 February, 1954. 53 . Personal Interview with K. Ganesha Moorthy, Welfare Officer, Sri Ganapathy Mills Company

71

was recognised by the Government as export House. In 1976 the mill was taken over by the family of K.V. Rajenthiran. accumulated loss of Rs.32.48Lakhs 54. periodically replaced and modernized. In the same year company had an

The plant and machinery have been Due to this the company was turned

around by prudent management and earned a net profit of Rs.5.32lakhs in the year 197755. The said accumulated loss was wiped out in the year 1979. The company has continuously upgraded its plant and machinery to enhance productivity and to improve the quality of the yarn produced. Other Units To keep in pace with the new technology and quality requirements of the market the company installed a new spinning mill with 25000 spindles in Virudhunagar in the year 1991-92.56 The unit also enjoys backward area benefits. The company took over M/s Gitanjali Mills Limited, Sankaran Koil, M/s Alagappa Spinning Mills P Limited, Rajapalayam and M/s Sivakumar Spinning Mills P Limited, Sankar Nagar on conversion basis in the year 2000-2001. During the year, the company achieved the higher turnover of Rs.66 crore. At present the company has cancelled the conversion agreement to dull market. 57

Limited, dated 15 December, 2005. . Personal Interview with J. Prakash, Manager, Sri Ganapathy Mills Company Limited, dated 17 December, 2005. 55 . Report of the Sri Ganapathy Mills Company Limited, Sankar Nagar, for the year 1977. 56 . Report of the Sri Ganapathy Mills Company Limited, Sankar Nagar, for the year 1992. 57 . Report of the Sri Ganapathy Mills Company Limited, Sankar Nagar, for the year 2001.
54

72

The Company has 14.70 acres of land in Sankar Nagar. The Company has decided that the expansion will be carried out in the existing premises. The total built up area of the existing factory and non-factory area is 64631.78 sq.ft in Sankar Nagar. Among these, the area of the factory, the office and the godowan is 54640.53 sq.ft, 2658.25 sq.ft and 7333.00sq.ft respectively. 58 Manufacturing

processes are laying and mixing blow room carding drawing spinning winding packing. The company produces thread from cotton. It produces 20 types of thread and quality. That quality type is 1920, 1930, 1932, 19450, 1946, 1960, 1980.59 Of the total turnover the company has exported 30% of its products to Bangladesh, Srilanka, Korea, Tiwan.60 K. Vee Rajenthiran is a well known dignityary in this area for his contribution to the general welfare of the society. He was the president of Tamil State Gymnastic association, Chariman of Tirunelveli District Handicapped Association Governor of Rotary International, Tirunelveli, North and Syndicate member of Manonmaniam Sundaranar University, Tirunelveli. Now, he is the president of district Chamber of Commerce. He had received the prestigious award of Sevai Mamani Sankaran Mutt for his contribution to social welfare.

58 59

. Ibid., . Personal interview with P. Mathevan, Production Manager, Sri Ganapathy Mills Company Limited, Sankarnagar, dated 20 December, 2005. 60 . Profile of the Sri Ganapathy Mills Company Limited, Sankarnagar, for the year 1977.

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R. Karthikeyan, MBA, a post graduate in business management (London) has over 5 years experience in the textiled field. He is the whole time director of the Sri Gnanapathy Mills.61 Other directors62 Smt.Amutha Rajenthiran Executive Business over 20 years experience in the Textile Field Smt. Niranjan Kousigan Sr. D. Anand Samuel Executive Non. Executive Computer Technologist Architect Business

Sri. S. Kanthimathinathan Non. Executive

At present the company has account (credit facilities) with M/s The Karur Visya Bank Limited, Palayamkottai. Now the industry is facing severe recession due to financial constraints, technological obsolescene and fiscal anomalies and has identified unfavourable structures, high cost of labour and high cost debt as the primary reasons for sickness in the sector. Considering the above facts, the company has decided to do the following. 1. Reduce the labour cost 2. Reduce the interest cost by way change over the limits from The Karur Viysya Bank Ltd to the nationalized banks.

61

. Personal interview with R. Karthikeyan, Whole time Director, Sri Ganapathy Mills Company Limited, Sankarnagar, dated 20 December, 2005. 62 . Personal interview with K. Subburathinam, Personal Officer, Sri Ganapathy Mills Company Limited, Sankarnagar, dated 22 December, 2005.

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3. Modernize the unit to increase the productivity efficiency and profitability. As such the company has recently (Oct. 2003) implemented voluntary retirement scheme (VRS) to the workers. Thereby the company saves Rs.15 Lakh per month towards establishment cost and increases profitability of the company by Rs.180 Lakh.63 It is a public sector limited. Sl.No. Share Holding Pattern No. of shares 1895169 39600 73400 13400 6400 295310 776721 Total 3100000 Value 18951690 396000 734000 134000 64000 2953100 7767210 31000000 Holding 61.13% 0.28% 02.37% 00.43% 00.21% 09.53% 25.06% 100.00%

1. Promotors & Family Members 2. Friends & Relatives 3. Fis 4. Nationalised Banks 5. Scheduled Banks 6. Mutual Funds Corporates 7. General Public

Face value of the shares Rs.10/- per equity share Market value as on 18.12.2003 Rs.24/- per equity share. Shares are listed at Chennai, Coimbatore,

63

. Personal Interview with R. Santhoskumar, Accounts Officer, Sri Ganapathy Mills Company Limited, Sankar Nagar, dated 24 December, 2005.

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Mumbai & Ahamedabad. 100% cotton yarn manufacturing (count 16s 100s both careded and combed as well as single and spun double yarn) First shift 7.00 am to 3.30 pm Second shift 3.30 pm to 12.00 pm Third shift 12.00 pm to 7.00 am Nature of coll Technical Financial Others Collaborator Nil Nil Nil

The companys registration No. 2748, dated 11.09.194664 Balaramavarma Textile Mills, Shencottai This mill located at Domodar Nagar outskirts of Shencottai was initially started in the name of Balaramavarma Textiles Limited in 1948 as a Public Limited company. 65 After a short period, the company went into the hands of Sri Sarma of Trivandrum due to administrative lapses by the managing agents Karayalar and Rangasamy Naidu Sons. Subsequently due to various factors the mill became sick and was closed on 25 October1970. 66 Consequently, the mill was

64

. Personal Interview with T.Murugan, Assistant Spinning Master, Sri Ganapathy Mills Company Limited, Sankarnagar, dated 26 December, 2005. 65 . Madras State Administration Report 1952-53, Government of Madras, p.156. 66 . General Manager, Balaramavarma Textile Mills Limited, Shencottai, Report, dated 9 March, 1996.

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taken over by the Tamil Nadu Textile Corporation from 20 November 1972.67 It was nationalised with effect from 1 April 1974 and was taken over by the National Textile Corporation from 1 April 1976 and was brought under the control of the National Textile Corporation (Tamil Nadu and Pondicherry Limited 68 The

machinery available at the time of transfer was mostly imported ones but were in poor condition. Modernisation and expansion were made between 1975 and 1983 and the spindlage was increased from 17856 to 25376. The capital investment in 1995 was Rs.605.05 lakh. The mill is manufacturing blended yarn. During 199495, 11.48 lakh kg. of yarn to the value of Rs.1507.06 lakh was manufactured.69 Required raw material is purchased from the Cotton Corporation of India, Gujarat State Coop. Cotton Marketing Federation and also from private parties. In 1995, about 344 employees were working in the mill. The amount of wages paid in 1994-95 was Rs.194 lakh. The mill is a member of the South India Mill Owners Association.70 The Gomathy Mills The Gomathy Mills is a medium scale spinning factory established at Viravanallur in the year 1956 at a project cost of Rs.5.40 lakh for manufacturing

67 68

. Ibid., . Ibid., 69 . Ibid., 70 . Handbook of Statistics on Cotton Textile Industries, Indian Cotton Mills Federation, Bombay 21st Edition, p.10-16.

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cotton yarn with an installed capacity of 26616 spindles and 168 rotors. 71 After expansion in stages the capital investment increased to Rs.1355.84 lakh. The mill is located 38 km. from Tirunelveli. It manufactures 100 per cent cotton yarn count ranging from NE.30/2 to NE.80/2 and a quantity of 18 lakh kg. is produced per annum. Raw cotton is purchased indigenously and also from abroad through agencies. About 350 persons were employed in the Mills in 1960 and the number of persons employed increased to 485 in 1994-95 and a sum of one crore was paid as wages in 1994. 72 The Gomathy Mills is a Government recognised Export House. Employees are covered by ESI scheme. Workers and their family

members get medical treatment from ESI Dispensary (Mobile) Pettai Uniforms are given to Fitters and Maistries once a year. Death Relief Fund scheme has been introduced to the workers. Each worker has to contribute Rs.10/- and the

management contributes Rs.10/- per worker. The amount is disbursed to the legal heirs of the deceased worker.73 Nellai Cotton Mills Limited Nellai Cotton Mills Limited, established a medium scale unit at Sankarnagar near Tirunelveli to manufacture cotton yarn in the year 1956 with an installed capacity of 15396 spindles. The production capacity of the plant is 2500 kg. day with average 20s count. The modernisation of the unit has been done from

71 72

. Report from the Office Manager, the Gomathy Mlls, Viravanallur, dated 21 March 1995. . Ibid., 73 . Ibid.,

78

time to time. The plant provides employment to 285 persons. Nellai Cotton Mills Union (T.N.T.U.C.), Nellai Mavatta Desia Panchalai Thozhilalar Sangam (N.L.O), Nellai Cotton Mills Staff and Jobbers Union, District Textile Union (A.I.T.U.C.), Mavatta Dravida Panchalai Thozhilalar Sangam (C.I.T.U) are the employees unions in the mill.74 These unions work for the Welfare of the Mill workers of the respective mills. Cooperative Spinning Mills at Pettai, Tirunelveli Consequent to the acute problem in the handloom industry to get a regular and adequate supply of yarn of standard quality and counts at reasonable prices to the weavers it was proposed to start a Cooperative Spinning by the Madras State Handloom Weavers Cooperative Society which contributed to Rs.15 lakh towards the share capital.75 Land, partly constructed buildings owned by the Murugan textiles, at Pettai were purchased. By the end of 1957, the main buildings of the mills were completed and the bulk of the machinery was erected. In 1958, the erection of 16000 spindles was completed in two stages. 76 The distinction of having the first Cooperative Spinning Mill in Tamil Nadu goes to Tirunelveli district. This mill known as the South India Coop. Spinning Mill was

established at Pettai in 1958. 77 The membership in the mill was open only to the

74 75

. Report from the Authorised Representative, Nellai Cotton Mills Ltd., dated 3 December, 1997. . K.S.K. Velmani, op.cit., pp. 554-555. 76 . Ibid., 77 . P.K. Nambiar, Census of India 1961, Vol IX, Madras, Part XIV, District Census Handbook, Tirunelveli 1, 1965, p.61.

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Madras State Handloom Weavers Coop. Society, the Primary Weavers Coop. Societies situated within its area of operation. The authorised sharecapital of the mill was Rs.60 lakhs made up of 6000 shares of hundred each. The paid up share capital of the mill was Rs.41,86,700 contributed by the Taml Nadu State Handloom Weavers Cooperative Society, Primary Weavers Cooperative Societies and the Tamil Nadu Government.78 The overall capacity of the mill with its 1600 spindles running two shifts was 750 bales of yarn of 20s per month. The total estimated capital expenditure of the mill was as follows : lands and buildings including electric installation and humidification Rs.13.36 lakhs and machinery including motors, freight import duty, clearing charges, erection etc. Rs.34.58 lakh. The mill started production of yarn with effect from July 15, 1958 and about 8000 spindles were running at the beginning. The cotton required was purchased mainly through the Cooperative Marketing Societies in Tirunelveli district and the produce was delivered to the Madras State Handloom Weavers Co-operative Society Limited79 The mill, a major industry, is under the control of the

Commissioner of Handlooms and Textiles, Chennai. The capital investment at the time of establishment was Rs.38.58 lakhs which was increased to Rs.507.67 lakhs and stood at Rs.547.25 lakhs in 1994-95. It manufactures 100 per cent cotton yarn ranging from counts 20s to 100s carded and combed single and double in hank and core forms. It manufactures a quantity of 3.22 lakh kg. in terms of 40s per month.

78 79

. Ibid., . H.R. Pate, op.cit., p.216.

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Raw cotton is purchased from Cooperative Federations through Tamil Nadu Cooperative Spinning Mills Federation, Chennai and also from local markets. During inception, about 403 persons were employed and during 1995, there were 1234 persons working in the mill and a sum of Rs.620.65 lakhs was paid as wages in 1994-95 as against Rs.28.50 lakhs in 1965-66. The mill is a member of the Southern India Mills Association and the All India Federation of Cooperative Spinning Mills Limited Some of the employees association in the mill are : 80 1. South India Cooperative, 2. National Cotton Mills General Employees Association, 3. District Cotton Mills Workers Association, 4. Nellai District Cotton Mill Workers Association, 5. South India Cooperative Spinning Mill, Nellai District and 6. South India Cooperative Spinning Mill Workers Welfare Association. Sundaram Textiles Limited Sundaram Textile Limited, set up a spinning factory to manufacture cotton yarn at Mambinagar near Nanguneri about 30 km. from Tirunelveli, in the year 1963 with12500 spindles at a cost of Rs.47.23 lakh. 81 It is a major industry established by the T.V.S. Group, one of the leading industrialists in South India.

80 81

. Madras Information, Madras,1959, pp. 8-9. . Report from the Factory Manager, Sundaram Textiles, Nanguneri, dated 6 December, 1993.

81

The installed capacity of the plant increased to 42680 in 1993. 82 The gross value of the fixed assets increased to Rs.113.48 lakh in 1973 registering a three fold increase. In 1983 it rose to Rs.333.61 lakh and in 1993 it stood at Rs.1269.42 lakh showing appreciable growth in investment in fixed assets. During 1992-93, a total quantity of 2061640 kg. of cotton yarn was manufactured.83 The raw materials are procured mainly from Madhya Pradesh, Maharastra, Andhra Pradesh, Tamil Nadu and Karnataka. The factory provides employment to 400 persons. T.V.S. Workers Union has been formed in the industry.84 Subburaj Mills The cutting edge technology of Subburaj group in the textile industry enabled it to launch, establish and cater to the needs of the world market of cotton yarn. Subburaj group is spearheaded by the able and dynamic chairman and managing director Mr. V. Subburaj and Arun K. Subbiah Director and Chief Executive Officer (CEO). Their vast experience and die hard attitude combined with sustained investment in the field of technology and manpower are the prominent threads, weaving laurels to their success story. This group revels in the fact that it is on the launch pad of being one of the most modernized mills in South India.85

82 83

. Ibid., . Ibid., 84 . Ibid., 85 . Personal Interview with Subramanian, General Manager, Subburaj Mills,dated 5 October, 2005.

82

The group has the pride of place as the full fledged establishment in yarn manufacturing. The groups forte lies in its efficiency and prompt delivery, with no compromise on quality. Other assets such as the state of the art machinery, well trained and qualified personal their effective management in all aspects of the resources, help turn out metres of yarn which match international quality. Founded in the 1970 and established in the 1980 in southern district of Tamilnadu, Tirunelveli, at Sankar Nagar, the Subburaj group is on par with the worldwide technological evolution and standards. Its new unit is an outcome of such a state of the art machinery, exclusively to turn finer and super fine counts for overseas market. Similar massive modernization has been extended to their

existing units and keep pace with demands of its yarns, proudly identified as MASCOT new in the international market.86 Presently, the group has another new and latest processing (Gassed Mercerised & Bleached) unit with imported machinery to cater to the needs of overseas market. The count ranges from 14s to 80s carded and combed for single and double yarn (ring double and Two for one twister (TFO)). The group also produces gassed, gassed mercerized and bleached yarn for the international markets. Subburaj groups believes that customers are the best judges of their products. The group strives to achieve customers delight through.

86

. www.subburajmills.com

83

1. Management commitment 2. Employee involvement 3. Process Technology 4. Product Quality 5. Prompt Despatch 6. Innovative improvement Subburaj group strictly concentrates on pollution control. They are committed to conduct eco-friendly activities, in a responsible manner. They take steps to preserve healthy environment by using harmless anti-toxic chemicals and dies in their qualified yarn production. They plan methods to preserve the environment and frequent review is conducted to control pollution. They have the following environmental policy which provides awareness of environment pollution and thereby enhancing environmental responsibilities.87 1. Creating awareness of environment 2. Reducing Pollution 3. Continual improvement to the significant aspects 4. Maintaining greenery in and around the mills 5. Conforming to the statutory regulations. The group products count ranges is from 1914, 1916, 1920, 1924, 1930, 1936, 1940, 1950, 1960, 1980.
87

. Subburaj Mills Administrative, Report, dated 6 October, 2005.

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Machinery (For Manufacturing process) 1. Blow Room 2. Carding TRUT 2SCHLER TRUT 2SCHLER - 803

3. Reiter drawn frames RSB 851 & D Reiter combers E 7/5 A & E62H 4. Simplex - LF 1400 A - Lakshmi Reiter 5. Spinning - Lakshmi Reiter LRG 5/1 LRbs 6. Lakshmi Reiter LR6S 7. Auto concer - SCHLAFHORST - 338 / MURATEC - 21C Process coner 8. Two for one twister (TFO) VJ150HS - 32 Nos each 204 spindles.88 Export market The group has cornered a major share of the yarn exports from India. It has been rated as one of the best yarn producers. Its yarn which is sold as the MASCOT has world wide appreciation and acceptance from many international customers. The group with a present capacity of 75,000 spindles produces about 35,000 kg of yarn per day and stated to increase its production to about 45,000 kgs per day in the current year. 95 percent of the yarn so produced is exported to the

88

. Personal Interview with Parthipan, Manufacturing Unit, Subburaj Mills, dated 30 November, 2005.

85

UK, Italy, Belgium, Poland, Taiwan, South Korea, Hongkong, Malaysia, Israel, Phillipines, UAE, Canada, Venezuela and Behrain. Every unit in this group has been recognized as an Export House by the Government of India. 89 Subburaj Groups are 1. Subburaj Spinning Mills(p)Ltd 2. Subburaj Textile Mills (p) Ltd 3. Subburaj Processing Unit (p) Ltd 4. Subburaj Costspin Mills (p) Ltd They are an ISO 9001, ISO 14001 certified groups. (From) the very beginning, the Mill attracted the attention of the local people and they began to join as workers in the Mill. The group has at present more than 1000 workers, both male and female. The Mill produced quality goods and in course of time the products of the Mill have been exported to many other countries. The workers given bonus and gifts during festival reasons like Christmas, Deepavali and Pongal, Among all the textile mills of the district, this mill has it own name and fame among other mills of Tinnelvely district SIVAKUMAR SPINNING MILLS (P) LTD This Spinning company was originally incorporated in 1974 N.E.S Eswaramoorthy and E. Sankarasubbu with an authorized capital of 25 lakhs with
89

. Subburaj Mills Administrative Report Thirunagar, dated 22 November, 2005.

86

initial spindle capacity of 2160. The company actually commenced its business on 20.11.197490. The company was taken over by Kandiah on 06.10.197791. After taking over the company discarded the old and obsolute machineries and installed new machineries and nevive the company by discharging various liabilities incurred by the previous management. company was making profits. Now the company was taken over by the present management headed by K.V.R.K ousigan in 200092. The spindle capacity of the unit is 8436. The present promoters have increased the AUTHORISED CAPITAL of the company by Rs.75 lakhs for the development and improve the working capital of the company. After took over the company has continuously. The Sivakumar Spinning (P) Limited, (SKM) is located at Madurai Road, Sankar Nagar, Tirunelveli. The company has acres of land in survey The spindlege was increased and the

No.567A,558A,588B & 559 which is situated at Chatraputhukulam Village. Thachanallur ward, Tirunelveli corporation. The total area of the building is 40360.65 sq.fts. The building consists of factory building (36493.50 sq.ft) office

90

. Personal Interview with T. Ramesh, Manager, Sivakumar Mills, Sankar Nagar, dated 29 November, 2005. 91 . Personal Interview with D. Kandiah, Shareholder, Sivakumar Mills, Sankar Nagar, dated 01 December 2005. 92 . Personal Interview with K.V.R. Kousigan, Managing Director, Sivakumar Mills, Sankar Nagar, dated 07 December 2005.

87

building 1859.80 sq.ft. Godown building (815.80sq.ft) and other with an area of 1195.55 sq.ft93. D. Kandiah a textile engineering graduate of 4 decades of experience in the textile field, is the founder and chairman of Sivakumar Spinning Mills(p) Limited, K.V.R.Kousigan, a graduate of 8 years of experience in textile field, is the Managing director of Sivakumar Mills 94. The other Directors are R. Santhosh Kumar, K. Deivanayagam, K. Shanmugavelayutham, and Selvi. Ramya Devi. The large shareholders are D. Kandiah, K.V. Rajenthiran, R. Karthikeyan, Amutharajenthiran and Miss.Ramya Devi. The company has produced spin from 16s to 100s in various types of cotton yarn, polyster yarn, type hank yarn, and cone yarn95. The unit is an existing one and the present promoters of the company have well established market for their product in domestic as well as overseas. The total demand for cotton yarn comprises demand in both domestic and export markets. India has a huge domestic market, which needs to be satisfied. The company manufactures cotton yarn rangng from 16s count to 30s count which finds application in both coarse and fine varieties of cloth. The company has competitive advantage in the selling of cotton yarn because the promoters have
93

. Personal Interview with Ramaya Devi, Director, Sivakumar Mills, Sankar Nagar, dated 05 January, 2006. 94 . Personal Interview with K. Deivanayagam, Director, Sivakumar Mills, Sankar Nagar, dated 09 January, 2006. 95 . Personal Interview with M. Arumugam, Spinning Master, Sivakumar Mills, Sankar Nagar, dated 30 November, 2005.

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vast experience in this field, which enables them to sell the yarn through their establishment agents in Salem, Erode, Ekarambarakuppam(AP) and Hathras (Hariyanna). The promoters have many depots across the country which include Karur, Kolkatta, Delhi, Mounathbanjan, Ichalkaranji, Nagpur and Mumbai. The promoters have already exported cotton yarn to Srilanka and Bangaladesh. The company has more than 125 permanent workers and has also more than 75 temporary workers in the unit. The company has also provided colony houses to the workers. The company has also established a trust namely,

Venkatasamy Naidu, Educational and Charitable Trust for the purpose of providing education at the middle class, secondary and higher secondary levels. At present the school called Venkatasamy Naidu higher Secondary School provides education upto 12th Std. The trust is also maintaining a temple (Lord ganapathy) inside of the colony. The company has also maintained all the level of welfare activities to the workers. The present promoters have taken sincere efforts to avail of the credit facilities from the bank after wiping out the carried over loss. This has resulted in Ms.Andhara Bank sanctioning Open Cash Credit (OCC) and Inland Letter of Credit (ILC) facilities. At present they have disbursed only Rs.25 Lakhs as principal payment. The present promoters have also already established themselves in the cotton yarn industry and as the company has identified the need for working capital facilities to run the mill successfully 96. The existing promoters

96

. Report from the Managing Director, Sivakumar Spinning Mills, (P) Ltd., Sankarnagar, dated

89

of the company have not taken any steps to avail of the working capital facilities from the Bank. Due to non-availability of the working capital funds at that time of take over the promoters entered into an arrangement with M/s. the Sri Ganapathy Mills Company Limited for doing job work i.e. manufacture of cotton yarn on conversion basis. Further, the present promoters have reconstituted a work-load agreement i.e. work load settlement with workers for increasing workmans production in kgs instead of existing settlement agreement. This has resulted in the company turning around by prudent management and a profit of Rs.4.65 lakhs was achieved in 2000. Accumulated loss was slowly wiped out and the company has made a profit of Rs.9.26 lakhs for the past two years97. The manufacturing process does not generate any effluent. The company has obtained clearance certificate from the Pollution Control Board. Karpagam Spinners Private Limited M/s. Karpagam Spinners (P) Limited, set up a medium scale spinning factory at Vagaikulam near Thirupanikarisalkulam in the year 1982 with an installed capacity of 800 spindles.98 It is situated about 12 km. from Tirunelveli. The actual production capacity during 1982 was 6000 kg. per annum. The factory

30 November, 1993. . Profile of the Sivakumar Spinning Mills (P) Limited., Sankar Nagar, for the year 2001. 98 . Report from the Managing Director, Karpagam Spinners Private Ltd., Tirunelveli, dated 23 February, 1996.
97

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was established at a cost of Rs.15 lakh in 1982 and subsequently another 10 lakh rupees has been spent for further expansion of the factory.99 The factory is engaged in the manufacture of hosiery cone yarn and hank yarn. The factory produces 9,00,000 kg. of hosiery cone yarn and hank yarns per annum. Cotton is purchased from Maharashtra, Andhra Pradesh and Tamil Nadu. During the year 1982 the factory provided employed to 27 persons and in 1996 there were 158 employees and a sum of Rs.3367878/- was paid as wages per annum. company is a member of the Southern India Mills Association. 100 1. Seyad Cotton Mills Limited The company Seyad Cotton Mills Limited was incorporated as a private limited company in 1983 by the partners of M/s. Seyad Beedi Company, which is a well known, reputed firm based at Tirunelveli.101 It is located at This

Moondradaippu, which is 20kms away from Tirunelveli Junction on N.H. 7 Thiruvandrum Road. Its administrative office is functioning at Sindhappondhurai at Tirunelveli Junction. 102 During 1985 the company installed 7040 spindles at a project cost of 171 lakhs with the objective of supplying quality garns to market. Due to the enthusiastic entrepreneurship of the owners, the Company has become a public company from 1996.103

99

. Ibid., . Ibid., 101 . Report from the Factory Manager, Seyad Cotton Mills (P) Limited, dated 25 November, 1993. 102 . K.S.K. Velmani, (ed), Tirunelveli District Gazetteers, Chennai, 2002, p.553. 103 . Ibid.,
100

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The mill was started with 150 workers. Now around 250 workers are working in the mill in three shifts of work. The mill had installed only 7040 spindles in the beginning. But now it has increased, to around 25,000 spindles.104 The family members of the Seyadhu Beedi company are the shareholders of this mill. There are only 29 shareholders and of these 8 shareholders are non-

residents. The value per share is Rs.100/- the authorised capital of the mill as on 31st March 1990 was Rs.1,00,000/- the issued, subscribed and paid up capital as on 31st March 1990 was Rs.39,45,000.105 There are fifty shareholders holding equality shares of Rs.100 each. The authorised capital of the mill as on 31.3.1997 was Rs.1,50,000/-. The issued subscribed and paid up capital as on 31.3.1997 was Rs.1,34,75,000 (including Application money of Rs.40,000/-).106 The mill has a three tier administrative structure. The decision making authority is the board of Directors. The day to-day administration of the mill is headed by an executive director. However, most of the powers are vested with the board especially with the Managing Director. Once in a year the annual general meeting is held. In that meeting the auditor of the mill is re-appointed. Special meetings are also convened when as and they are needed. As mentioned earlier, the whole authority is vested in the hands of the board of directors. It consists of six members. There is no restriction

104 105

. Personal Interview with A. Varusaikani, Personal Officer, dated 18 December, 2005. . Report from the Factory Manager, Seyad Cotton Mills (P) Limited, dated 27 November, 1993. 106 . Personal Interview with N. Seyad Ahamed Hussain, General Manager, Seyad Cotton Mills, dated 18 September, 2005.

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regarding their term of office. They are responsible for strategic decision makings such as fixing of selling prices, payments to the employees, act. Every Monday they meet and discuss the business affairs relating to the week. 107 The founder, T.E.S. Fathurappani is the managing director of the mill. 108 He directly involves himself in the day-to-day administration. However, most of the powers are vested with him as he is the Chairman of the Board of Directors. One of the Board of Directors is acting as the executive director. He is the pivot point of the mill. He controls the day-to-day operations of the mill and is responsible for the overall performance. The Office Manager comes in the third tier of the administrative set-up. The Office Manager is responsible for accounts and communication. He is supported by a team of line-staff including clerical staff and other workers. The Spinning master is in-charge of the total operations connected with the factory109. He is assisted by different line-staff such as store-keeper, Personnel officer and assistant spinning master. He is also responsible for keeping the machine in right condition for having a smooth flow of production. The assistant spinning master assists the spinning master in executing his responsibility. In the

107 108

. S. Alwar, op.cit., pp.1-7. . Personal Interview with TES Fathurappani, Managing Director, Seyad Cotton Mills, dated 20 September, 2005. 109 . Report of the Factory Manager, Seyad Cotton Mills (P) Limited., dated 02 May, 2005.

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mill it is the assistant spinning master who acts as the purchase manager. He also acts as the Quality Controller. The Personnel Officer is acting as the liason officer. He looks the labour welfare measures and he is responsible for receiving the guests and parties who visit the mill both for personal and business matters. The store-keeper is in-charge of receiving and issuing goods and for keeping them. There is a stores assistant to assist the store keeper. The factory has been running on the following shifts110. The first shift starts from 7.00A.M and ends with 3.00P.M. The time for the second shift is from 3.00P.M. to 11.00P.M. The third Shift starts from 11.00P.M and ends with

7.00A.M. The time for the general shift is from 8.00P.M to 4.30P.M. The associated companies of the mill are the Spinners at Kalakkad, Weaving mills at Kadaiyanallur, Seyad sariet finance, Seyad Beedi Company, and Seyad Residencial School of Courtrallam111. The different varities of cotton, MECH 1, H4, LRA, MWS, SANKAR 4, LK, MC5Y, are used as the basic raw materials, and they are purchased from Erode, Bhavani, Theni, and Rajapalayam in Tamilnadu, Gundur in Andhra Pradesh, Nagpur in Maharashtra and from the Punjab state. The mill produces

110 111

. Personal Interview with Sathik, Director, Seyad Cotton Mills, dated 20 June, 2005. . Personal Interview with Yoosuf, Principal, Seyad School, dated 27 June, 2005.

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40s cone yarn and 42s hank yarn 112. The average monthly production of yarn in the mill is 5,376kgs. An increasing trend registered during the period from 1988 to 1990 and sales, rose in the year 1989. In the year 1990 the total yarn production in the mill was 6,25,831.724 Kgs. Whereas in the year 1988 it was only

5,76,965.418Kgs113. A slight declining trend was seen in the year 1989 where the total yarn production was 5,09,749.229 Kgs114. However, this figure does not have any significance as it is converned with a period of ten months only. The same trend like that of the production was seen in the sales of the mill also. In the year 1988 the value of the sales made by the mill was Rs.2,37,61,455 and the quantity of sales was 5,77,417.648 These figures increased in the year 1990 to

Rs.3,37,17,196 and 6,24,866.398 Kgs. respectively 115. The mill produces cotton yarn in the range of NE 8s to 100s court and an increasing trend has been registered in the production as well as in the sales. The cotton yarn is in the range of NBs 8s, 10s, 20s, 30s, 32s, 40s,46s, 60s, 80s and 100s116. The mill has adopted latest technology of textile industry and added on modern machinery of the fourth generation. Besides manufacturing, the unit with its social objective has employed women work force as a major chunk of its employees and continues to do so. Quality being the central theme of the

112

. Personal Interview with P.K. Meeran Mohideen, Manager, Seyad Cotton Mills, dated 30 June, 2005. 113 . Report of the factory Manager Seyad Cotton Mills Limited, Tirunelveli, 1988. 114 . Ibid., 115 . Ibid., 116 . Personal Interview with T.E.S. Naina Mohamed, Executive Director, dated 25 June, 2005.

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company, the management and employees at all levels practice the same as their philosophy The producers are being trained on the Indian Standards Organisotic (ISO) 9000 Qms lines and the company is gearing itself to get the benefits of certifications. The director has defined the quality policy and has the authority to review the same for continuing stability. The quality policy of Syed Cotton Mills Limited is given below. To be the leader in our business based on value performance and service to out customers. The above policy is achieved by reviewing quality objectives, encouraging the involvement of employees, maintaining the quality management system, imparting periodical training and striving for continual improvement. The present turnover is about Rs.22 crores per annum117. As part of the welfare programme the company has devised a novel concept of upliftment of women by providing them with good modern stay facilities, food recreations and health programs. Textiles General Impact From the foregoing pages it is seen that the people of Tinnevelly District have given much importance for the establishment of textile 15 companies and certain places in the districts like Ambasamudram, Kullidaikurichi Tuticorin were quite simbles for the starting having and textile industries. The promenent of
117

. Personal Interview with K. Jahir Hussain, Marketing Manager, Seyad Cotton Mills, dated 5 July, 2005.

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industries thus established were Kovilpatti mills, Ganapathy Mills, Subburaj Mills. From the beginning of 1938 till date these industries have been thriving like anything and earned reputation from far and wide. Its only aim, is to improve economic status of the people and make their life more happy and prosperous. Further these industries have encouraged other rich persons of the district to start such textile industries which will certainly make the district more wealthy.

97