A REPORT ON ORGANISATION STUDY AT

LUNAR RUBBERS PVT. LTD

Submitted to the
MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

JEWEL JAIS JOSE

Reg. No.51067
Under the guidance of
JEFFIN JOHN
LECTURER

VISWAJYOTHI SCHOOL OF MANAGEMENT

VISWAJYOTHI COLLEGE OF ENGINEERING AND TECHNOLOGY,
VAZHAKULAM
MAY, 2014

VISWAJYOTHI SCHOOL OF MANAGEMENT

VISWAJYOTHI COLLEGE OF ENGINEERING AND TECHNOLOGY,
VAZHAKULAM

BONAFIDE CERTIFICATE

This is to Certify that this report titleORGNIZATION STUDY AT LUNAR RUBBERS

PVT. LTD is the bonafide work of Ms. JEWEL JAIS JOSE who carried out the study under
my supervision. This report is submitted to Mahatma Gandhi University, Kottayam as partial
fulfillment of requirement for the award of degree of Master of Business Administration.

-----------------------------------------

JEFFIN JOHN
FACULTY GUIDE
-------------------------------------------

Dr. John Pulparambil

---------------------------------------------

Signature of Principal

Head of the Department

Submitted for the Viva Voce examination held on

Signature of External Examiners

1.------------------------------------------

2. ---------------------------------

DECLARATION

I JEWEL JAIS JOSE hereby declare that the report entitled ORGANISATION
STUDY AT LUNAR RUBBER PVT. LTD.,THODUPUZHA submitted to
Mahatma Gandhi University in partial fulfillment of the requirements for the award
of the degree of Master of Business Administration is a record of original work
done during my period of study in the School of Management, Viswajyothi
College of Engineering and Technology under the guidance of JEFFIN
JOHN,FACULTY GUIDE

Place : VAZHAKULAM
Date :

JEWEL JAIS JOSE

ACKNOWLEDGEMENT

I owe a deep sense of gratitude forever to the Lord Almighty for blessing me with abundance
help through various sources and whose grace was the moving spirit behind my effort in doing
this organization study.
I am deeply thankful to Mr. Isac Joseph, MD, Lunar Rubbers Pvt. Ltd. And all the staff of
the company for extending their help for the completion of my work.
I am deeply thankful to Dr. John Pulparambil., HOD, MBA department who has guided
me all along the course of the study.
I express my gratitude to my guide Mr. JEFFIN JOHN. (Faculty of VJCET School of
Management) for valuable help and guidance at various stages in providing creative and
constructive suggestions that helped to improve the quality of my work.
My insight thanks to all, who directly or indirectly helped me with their support at each stage
of the development of the study.

JEWEL JAIS JOSE

CHAPTER - 1

INTRODUCTION ABOUT THE ORGANIZATION

Lunar Rubber Pvt. Ltd is one of the well known and most advanced manufactures of
footwear, bags and umbrella. The company is dedicated of providing quality products for the
customers. The company is a prominent player in the footwear manufacturing industry in the
country. The organization study was done in order to study the functioning of the company, the
structure, various departments and the roles and functions of these departments.
As a step into the next millennium, managers will be witnessing new dimensions in
designing their organizations. The continuous change in the industrial environment will force
todays organizations to adapt to the existing system. Study about these organizations will benefit
to the company and academicians to review the new dimensions in building up of high-tech
corporate of the future.
An organization is the structural framework o duties and responsibilities required of
personnel in performing various functions with a view to achieve business goals through
organizations. Presently the term organization is used in the following ways with or without
prefix or suffix.

As an entity
As a group of people
As a structure
As a process
The most frequent use of the term organization is an entity and is referred to as an

enterprise as a whole, like Company, Corporation, partnership firm, etc. In this form organization
is defined as collectively for achieving common objectives. William R Scott has defined
organization as follows. organizations are collectivities of people that have been established for
the pursuit of relatively specific objectives on more or less continuous basis.

SCOPE OF THE STUDY

A well organized or effectively planned organization forms the base stone of

every successful business. The organization study provides an excellent opportunity for
experiencing and understanding the organization in its full range. It also helped to
identify the strength and weakness of the organization and also help to find out the area
where the organization should improve. The study is also helpful to familiarize with the
footwear industry and also ascertain the present position of the company. This is also
enables the student to find out the correlation between the theory and the real business
situations.
The scope of the study is to get in touch with the various functions of Lunar
Rubbers private limited and to understand customer perception about the various
products offered by the company. The organization study helps in developing internal
abilities like conceptual, interpersonal skills and there by encourage the entrepreneurial
capabilities of the student. The study covers the functioning of marketing, personal (HR),
purchase, finance and production departments.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

To study the organization as a system and its various functional areas

To have a practical knowledge of application of the management theories.
To have the real life knowledge of an organization through various departments
To understand the strategies adopted to confront the challenges faced by the company.
Identify the main competitors of the company.
Increase the market share by maximizing sales and improve the quality of the products

offered.
Some of the major objectives are profit maximization, customer satisfaction, effective
utilization of work force, to reduce cost of production bring financial stability.

Identify the pricing policy of the company.

To judge the success of the management in carrying on the daily transactions of the
company

To u understand the objectives and functions of various departments in the organization.

SECONDARY OBJECTIVES
To get feel of the actual working environment.
To find out the problem faced by the organization in achieving their goals.
To know about the business strategies.
Observe the work culture existing in the organization.

REASONS FOR SELECTING THE COMPANY

Lunar is one of the Footwear and umbrella manufacturing companies in Kerala. Lunar
Rubbers Pvt Ltd has a good brand image in Kerala and they are producing chapels, umbrellas
and school bags. Lunar rubbers Pvt Ltd has five well functioning departments such as Finance
department, Marketing department, Human Resource department, Purchase department,
Production department. The companies officials are very much helpful and supportive for their
students, doing organization study in the company. The reputation of the company also
influenced. So, I select this company.
STUDY PLAN
The organization study at Lunar Rubbers Pvt,Ltd was conducted from 2 nd May to 31st
May 2014. The study plan was prepared for the successful completion of the study. Schedule for
the study is as follows.

First one week, understanding the organization and refer previous reports.
Second week, visit the production units.
Third week, understanding the overall functioning of various departments.
Last week, visit the production unit again after understanding the process.

METHODOLOGY
The word methodology refers to the adoption of various methods and steps for a project
or research. For the conducted study the researcher approach the project with a systematic
interview schedule for departmental analysis. Personal observation also need for verification and
interpretation of data. The entire data collection was carried out in the following manner.

Personal interviews and discussions with the officials and workers of the company also

supplemented the required data.

Much of the data received for the study have been collected from the records of Lunar

Company.
Observation of the functioning of the departments.

SOURCES OF DATA
The data which I have collected for making this report is the combination of 2 types of data

Primary Data
Secondary Data

PRIMARY DATA
Primary data are those which are collected for the first time and thus happen to be
original in character. Primary data is collected through
direct observation
personal interview
SECONDARY DATA
Secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process. It includes;

past Records
Published Notices and brochures
Organizational websites
Annual reports
Other documents and files.

LIMITATIONS OF THE STUDY

The organization was reluctant to disclose some relevant information required by the
researcher.
Certain information was vague and study based on these may not get a true picture.

 This study was mainly based on the data obtained by the interview with managers and
therefore chances of personal bias can exist
Time is another limitation and is restricted the study in few areas.

CHAPTER - 2

INDUSTRY PROFILE

FOOTWEAR INDUSTRY
The history of footwear goes back many1000 of years. Today footwear industry
manufacture a wide range of footwear varying from casual, formal, work and athletic shoes.

Paraffin wax and china clay are the most important raw materials. These are easily available in
India, English India clay ltd. Thiruvananthapuram provides the china clay for the footwear
manufactures.
Important Hawai footwear manufactures in India are lunar, paragon, Bata, Rubco
premier, and fisher etc., paragon industries is the largest manufactures of Hawai chapels in
Kerala. Lakshmi group is the largest manufacture of footwear of standard quality. Footwear
industry is a high profit and fast growing industry, which provides good income to the country.
There is a cut-throat competition in the Hawai chapel industry. There are a
number of Hawai chapel manufactures and hence if one has to survive in the industry, it has to
strengthen its market network. The competition in the industry rises as the number of Hawai
manufactures, increases and it is due to high price of rubber products in the market. So in the
years to come, the competition in the industry is going to increase and it is going to be a testing
time for the present manufactures.
Lunar Rubber Pvt. Ltd is one of the well known most advanced manufacture of
footwear and umbrella. Lunar Rubber Pvt. Ltd emphasis on providing customer satisfaction of
quality products. Now a days rubber industry is growing exponentially. Rubber is an important
material in the modern world. Every year the use of rubber is rising. Now the rubber has become
an indispensible material, which has got much demand in daily life.

RUBBER INDUSTRY
Indian rubber industry has a history of over 7 decades. Its position is unique in the field
of natural rubber. It is the 4 th largest rubber consumer in the world after USA, Japan and China.
In natural rubber production, it is the 4 th largest producer in the world next to Thailand,
Indonesia, and Malaysia but topper in per hectare yield among these countries.

Rubber is a versatile material very much demanded in modern life. The total value of
rubber produced and consumed all over the world in 2001 was 4 billion. The rubber industry has
global importance and its impact on world economy is in to no way less important.
Now the demand is higher than supply. The value is increasing day by day. In this state
most of the rubber based industries are engaged in the production of rubber bands, tree rubber,
footwear etc. there are over 5000 rubber goods manufacturing units in the country consuming
over 500000 tones of rubber per years. Nearly 30 tire manufactures consume 48% of rubber.
Now there is a big boom in rubber based industrial sectors of the state.
The major rubber producing states in India are Kerala, Tamilnadu, Karnataka, Andaman
and Nicobar and north eastern state. However, natural rubber is mainly confined to Kerala which
accounts for 94% of the rubber production country.

WORLD SCENARIO:
Rubber is an important material in the modern world. Every the use of rubber is

rising. It has a history of seven decades. Now a days rubber has become an indispensible
material which has got much demand in the daily life with the growth in the population of India
at a tremendous rate, there is a lot of scope of the growth of this industry in future years. So the
government has given a lot of priority to this industry. The total value of rubber produced and
consumed all over the world in 1995 was two billion dollar in 1998 it increased to three billion.

Auto tyres & Tubes

Cucle tyre & Tubes

Camel black

Latex Foam

Dipped Goods

Others

Footwears

Belts & Houses

INDIAN SCENARIO:
India has the fourth largest producer of rubber in the world after Thailand,

Indonesia and Malaysia and the fourth largest consumer in the world after USA, Japan and china.
India has the eighth place on product of rubber goods in the world. Apart from
Kerala, Tamilnadu, Karnataka, Andaman and Nicobar Island and north eastern states are of other
major rubber producing states in India.

STATE SCENARIO:
However 94% of the natural rubber is produced in Kerala and balance 6% is from

plantations on other states. But now the production is higher than the demand. The value is
increasing day by day. In these states most of the rubber based industry are engaged in the
production of Tyre, rubber bands, thread rubber, footwear etc. nearly 48% of the rubber consume
in the industry is by 30 Tyre manufactures. Now there is a big boom in rubber based industrial
sectors of the state. Kerala entrepreneurs and rubber growers are educated, encouraged and
supported in setting up rubber based industries.

CHAPTER 3

COMPANY PROFILE
In 1982, Lunar Rubbers were initially registered as a small scale industry. The unit was
later converted into a private limited company in 1993-The lunar rubbers private limited. History
of the company begins even before, in 1975 when a Hawai manufacturing unit was set up in the
industrial estate at Thodupuzha in the district Idukki, Kerala state India. This initiative from a
young entrepreneurial genius led towards the triumph of a quality foot wear brand, Lunars. The
company is certified with ISO 9001-200 since the year 2004.
Lunar Rubbers Pvt. Ltd was promoted by Sri. Isaac Joseph based on the wide
experience he has gained as the managing director of Viking rubbers (p) ltd. was registered as an
S.S.I, unit. Unit started working 1976 in the mini industrial estate Olamattom, Thodupuzha. The
unit was promoted as part of experience in the field and limited know how regarding machinery
and market the unit could not go very far. Yet with a determination the promoters held on to the
proposal and continued the project. All liabilities from government and banks were paid up. At
present there is no outside liability other than current liabilities for working capital.
Lunar Rubbers a partnership firm, was registered as an S.S.I, unit No.09-1100429/PMT/SSI dated 27-11-82. The firm was converted into a private limited company during
January 1993. Lunar Rubbers Pvt. Ltd., could, make a breakthrough in the market by
introducing high quality light weight chapels. The quality of the product attracted large number
of customers in the state and neighboring states. The demand for the product rose very high and
caters to the increasing market: additional production capacity was setup.
The company has good sales contacts throughout south India Gujarat and Maharashtra
has established a reputation in the field of producing and selling Hawai chapels. It has sneaked
into the market of our neighboring countries also. The company has production unit at
Thodupuzha, Mysore, Coimbatore and Mundakayam with head office at Thodupuzha.

LUNAR GROUP OF COMPANIES:

Name of the company

location

Lunar Rubbers (P) LTD

Thodupuzha

Viking Rubbers (P) LTD

Coimbatore

Neo Rubber Foot Crafts (P) LTD

Thodupuzha

Akshaya Rubbers

Mysore

Misha Rubbers

Mysore

Foot craft Rubber Industries

Mundakayam

Mathew Rubbers

Coimbatore

Uttam Rubbers (P) LTD

Mysore

Lunar exports(p) LTD

Thodupuzha

Polymer Kerala(p)LTD

Thodupuzha

Kovai polymers (p) LTD

Thodupuzha

OWNERSHIP PATERN
The Lunar group is promoted by Mr.Isac Joseph. An engineer by profession, he
experienced in developing and promoting innovative business strategies and is the chairman of
group concerns. The other Board of directors of Lunar is Mr.Jubby Isac, Mr.Jess Isac, Mr. M.K.
Kuriakose, Mr. P.K Kurian, and Mr. James P Jacob.
In Lunar Rubbers Pvt Ltd there are quarterly meetings by the Director Board members.
The Board of Directors in their meetings determines corporate level policies and procedures. But
special meetings are convened in case of an emergency. The board of directors appoints the
managing Director to be in over all charge of administration of the company and office assisted
by various officers at the office and factory. Any strategic decision involving policy matters will
be taken only with the concurrence of Managing Directors and General Managers.
The Chairman and Managing Director conduct weekly meetings every Monday with
various departments heads. In these meetings each departments head presents the weekly report
of their respective departments. The General Manager assists the Managing Director and General
Manager successfully carrying out their duties with regarding to Rubber Board labour office,
insurance matters, training of personnel, municipal and panchayath licenses etc.
HISTORY AND GROWTH
Lunar Rubbers Pvt. Ltd was established by Mr. Isac Joseph, an engineer by profession
was the nucleus behind the venture and it was on his initiative the firm grew to fame as it is
known today. While making an imperative step forward, Mr. Isac Joseph had immense
experience with him, obtained from his responsibility as Managing Director of Viking Rubbers
Pvt.Ltd, registered S.S.I units established in 1976.
Viking Rubbers has promoted as the part of massive industrialization program of rural
Kerala. Starting its function at mini industrial estate at Olamattom. The firm had to face severe
setbacks because of the lack of technical knowledge and experience in the field or markets.
However the project went ahead and the company now holds neither governmental nor bank
liability other than liability for working capital.

On 27/11/1982, Lunar Rubbers, a partnership firm was registered as a S.S.I unit. Later in
1993 the firm was converted into a private limited company. Lunar Rubbers achieved a rapid
growth due to its astringents policies on quality. Introduction of high quality chapels enabled the
company to initiate early breakthrough in the market. The products soon earned reputation in the
market and neighboring states as well. The company had to soon hike production so as to cater
to the increase in demand.
Today the company holds sound deal links throughout south India. The companys
reputation spread across further towards north in recent years. At present the company has strong
markets in Gujarat, Maharashtra and other Northern states as well. It has also sneaked into
overseas markets. The company today owns production units in Thodupuzha, Mundakayam,
Coimbatore and Mysore with its head quarters in Thodupuzha.
MILESTONES
1982: LUNARS brand introduced with its most popularized rubber Hawai Chapels
1990: A fully fledged manufacturing unit being initiated in Mysore
1994: Another manufacturing unit in Mundakayam
1995: Production unit in Coimbatore
1999: LUNARS umbrellas being introduced
2003:

Entered into the production and marketing of PVC footwear with sub-brand name

Aerolux .
2004: EVA foot wears under the brand name Lite were introduced.
2007: PU foot wears being introduced under the sub- brand name Walkmate
2010: Stuck on foot wears introduced with sub-brand name Advencheerz
2012: Market expansion to Bhopal and Madhya Pradesh
2013: Started new production unit of PU

ORGANIZATION CONTRIBUTION TO SOCIETY

Social contribution of the company
The company provides slippers, school bags and umbrella to the orphanages and
charitable institutions free of cost. The company provides funds for philanthropic purpose, that is
provide funds to AIDS patients and provide more job opportunities to poor people. The company
also establishes traffic signals and provides homes to poor people.
Environment control of the company
One of the special features of the Lunar Rubbers Pvt. Ltd is that it doesnt pollute
the environment. Waste materials produced by the company are sent to Delhi at regular times.
They recycle the waste materials and use it for another purpose.
Legal frame work of the organization
Lunar rubbers, partnership firm were registered as an S.S.I. unit No .09-1100429/PMT/SSI dated 27/11/72. The firm was converted into a private limited company during
January 1993. Lunar Rubbers Pvt. Ltd could make a breakthrough in the market by introducing
high quality light weight chapels.
VISION
To become a leading player in footwear industry by providing quality products to the
customers.
MISSSION
Optimum utilization of resources
To maintain internal quality system standard
To provide society with superior products and employees with happy working
environment.

VALUES
Company fostering family values in their organization.

STRATEGIES
Develop superior quality products using new technology imported from developed
countries.
Company will also continue to identify and explore consumer market by conducting
market researches.
Thoughtful planning and right hiring human resource that helps the company to maintain
high level of standards in its operations.

OVERALL ACTIVITIES
In Lunar Rubbers Pvt. LTD. the director board will meet on every quarter of a
month. Director board is responsible to take corporate level decision. In case of any emergency
situation, there will be special meetings. The managing director, appointed by the directors
board, will be in charge of administrative measures and various offices and factories. Strategic
decisions concerning policy matters have to be taken only with the concurrence of the managing
director. He is to be assisted by a crew including the general manager, assistant general manager,
finance manager, marketing manager and production manager.
The managing director conducts weekly meetings with each department heads and
also with the G.M. All functional level decisions are taken in these meetings. Each department
head will have to submit reports on previous weeks work in these meetings. The report will
helps to assess the performance of the previous week.
The general managers have overall charge of the each department. He will be assisted
by the manager and other officers in organizational functioning. The G.Ms are supported to assist

the M.D. and the directors in successfully carrying out their work with special reference to P.F.,
E.S.I., Rubber Board, Insurance Companies, Motor Vehicle department and Vehicle Finance.
Training of personnel, Municipal and Panchayath licenses, P&T etc.
Planning is the most vital activity and is a pervasive element in the organization. By
planning, managers minimize uncertainty and risk. Planning does not deal with future decisions,
but with the futurity of present decisions.
Top level managers of the company are generally concerned with planning activities that
will take place six months and above. Lower level managers more concerned with the planning
activities for the day, week or month. The supervisors plan for the work activities for their people
for the day. They are not responsible producing sales level and ordering materials for production
in the future. Top level manager generally spends more time on planning. They are more
concerned with establishing objectives and developing plans to meet those objectives. Lower
level managers are more involved in executing these plans.
Decision making is an essential part of the modern management. A managers life is filled
with a constant series of decisions. Hundreds of decisions are made by the managers consciously
and subconsciously every day. The method of decision making at various levels in Lunar
Rubbers Pvt. Ltd is directly linked to the process of the level of board directors and managing
director. Timely and proper decisions are making the activities of the company vibrant.

POLICY OF THE COMPANY

Leadership by example
Utmost customer satisfaction
Nonstop quality by up gradation
Assure employee involvement in the quality management system.
Reciprocate by delivering products that in the market.

QUALITY DRIVE
The quality of lunar products is highlighted by four factors.
Exception quality of the raw material.
Dedicated R& D.
Stringent quality control.
Unique product design.
QUALITY POLICY

Increase the market share by maximizing sales and improve the quality of
products.

To be competitive at a maximum value of money.

Maintain absolute leadership over the market in the near future.
To enlarge business scale of operation by introducing new technology.
Main objective of the company is to carry on the manufacturing of foot wears of
different kinds.
Some of the major objectives are profit maximization, customer satisfaction,
effective utilization of work force to reduce cost of production.
Lunar footwear is born out of pure latex. Growing to a special combination of addictive
strength, lasting power and comfort, it is wedded to pleasing aesthetic colors. Each and every
piece is examined minutely for ensuring perfection. Only then goes out the market.
AWARDS WON - ISO CERTIFICATION
Lunar Rubbers Pvt. Ltd is an ISO 9001-2001certified company. The company got ISO
certification in 2004.
The superiority of lunar has been understood throughout and the company has been
honored by a number of awards in recognitions to its performance.
State consumer protection award for manufacturing consumer products.
Vanijya Ratna award by southern Vanijya Federation, Trivandrum.
Business man of Kerala award by Indian junior chamber, zone-20.

 Best entrepreneur award by Kerala state small industries association.

Vijayasree award by Kerala Vyapari Vyavasayi Ekopana Samiti.
Best entrepreneur award by Indian Jacees, southern zone

PRODUCT PROFILE
Lunar Footwear

Lunar

Lunar School Bags

LUNAR PRODUCTS

Tourism Ventures

Lunar chapels

Umbrella

Lunar comes into market with wide range of footwears. The top brands of lunar are:
1. Lunar advencheeerz: - lunar advencheerz comes in a variety of pulsating shades and
sticking design. Made from quality materials that give ideal cushioning for the feet,
advencheerz is high flexible and durable. The price range is from Rs 400 to Rs 1000.
2. Lunar walk mate: - lunar walk mate is 100% refined polyurethane. Its light weight, high
flexible, tear resistant and the ultimate foot bed to pamper the feet. The price range is
from Rs 150 to Rs 500.
3. Lunar lite: - lunar lite is made up of fine quality materials. It is light weight, durable,
flexible and can be worn in any weather. The price ranges from Rs 100 to Rs 200.
4. Lunar aerolux :- this is a product made with high quality PVC that offes extra comfort
and durability. It is being designed for everyday use. The price range is from Rs 150 to Rs
200.
5. Lunar kiddu:- exclusive kids wear chapels. The price range is from Rs 150 to Rs 300.
Lunar Hawai chapels
a) Lunars Delux :- This is blue and beige in colour for gents, ladies and kids. It is light in
weight and soft and having antiskid bottom with patented two way thread(TWT) sole.
This will get in giant sizes also.
b) Lunars cushion :- this is blue andgreen colour for gents and ladies.
c) Lunar Dimple :- this is slippers with high heel and having two way thread bottom which
is specially designed for ladies.
d) Lunar goldline :- this is beging with lines in colour. It has thick sole and TWT protection
against slippery surface.
e) Lunars acu-massager:- this is red orange and blue in color.
f) Lunars pazzo:- lunars pazzo comes in variety like pazzo romeo, pazzojunior, pazzo
lady lite, pazzo star and pazzo healthy walker.
g) Lunars scoot:- it is red and black in color. The price range is from Rs100 to Rs 200.
Special features of Lunar Hawai chapels:
The two way thread for greater grip, a potential design that has won great acclaim and
appreciation.
Surpasses ISI standards.
Strap is fasted firmly, so it does not slip even under extreme circumstances.
Comes in choice of colors blue, black, green, beige, violet and grey.

 Available in size ranging from 1 to 12 sizes. 11 and 12 being special sizes exclusively
made by Lunars.
50% of the production of the group is sold outside Kerala including Gulf countries and
European countries. In India, lunars Hawai chapel is available in the states of Tamilnadu,
Karnataka, Gujarat, Maharashtra, Andrapradesh, Pondicherry, Goa etc. Other than Kerala.
LUNAR UMBRELLAS
Lunar rubbers pvt. Ltd has entered into the umbrella market in the year 1999. There are
different varieties of umbrella, differing in design and in colors. Every part of lunar umbrella is
made of the finest quantity raw materials brought in from various states of India and even from
outside India like Taiwan, Saudi Arabia etc. they are then assembled with great care at their
production centers to make umbrellas that stand apart in every way.
VARIETY OF UMBRELLAS:

Childrens umbrella
Two fold manual
Two fold automatic
Cup opens umbrella
Three fold umbrella
Gents umbrella
Garden umbrella
Fancy item

SCHOOL BAGS
These are newly introduced into the industry. Tough and cool style of bags for the
junior and senior students is available in the market now. The company using high quality
material and method of production to compete with present market conditions. Various school
bags are

Campus Premium
Canvas Premium
Canvas Wing
Class Premium

TOURISM
Green Berge Holiday Resorts and Green Berge resource faculty centre located at
Nadukani, Kulamavu, Idukki.
COMPETITORS
In any business, competition is faced by all organization. Because of the competition
each organization is trying to improve their quality of the products.
MAJOR COMPETITORS ARE:

Paragon:

It is rubber manufactures of footwear that is suitable for all seasons

an occasions with highest quality standards. They are produced under the names
Acusole, Dolly, Casuals, Princess, Safari and Cushions.

Rubco:

It is the market invention agency of government of Kerala for

processing natural rubber directly from farmers. Rubco has been the major
supplier of the rubber footwear.

VKC:

It manufactures two types of VKC products, that is, VKC Lestyle and

VKC Slippons. VKC producing different footwear models for gents, ladies and
kids.

Odyssia: odysia footwears are manufactured under Italian technology, which is

the most advanced technology in the industry.

Jogger : jogger PU footwear has been exercised by the quality added activities
like ISO-9001-2008; being also exercised for the Crisil Rating.

ORGANIZATION STRUCTURE

CMD OF LUNAR GROUP OF COMPANIES

BOARD OF DIRECTORS

MD
1

MD 2

DIRECT

MD 3

DIRECT

GM
Production

PU PM

Assistant
Manager

EVA
PM

HAWAI
PM

Stitching
Asst.
manager

MD
5

GM Finance
HR Manager

Stitchin
g
PM

Maintain
PM

Superviso
r

Supervisor

Stitching unit
1

Electrician
s

Workers
Managers

Stitching unit
2

Electrician
1

Workers

DIRECTO

GM Marketing
Purchase &
Advertisement
Manager

STUCK
ON PM

MD
4

DIRECT

Electrician
2

RSM
(centra
l)

RSM
(north
)

Asst.
sales
manager

Marketing
officer
Sales officer

RSM
(south
)

Asst.
sales
manager

Asst HR
Manag
er

Accoun
t
manag

Accou
nt
officer

Accoun
t officer
2

Junior
accountant
Clerk

CHAPTER 4

DEPARTMENT DETAILS
FINANCE DEPARTMENT
Finance is regarded as the lifeblood of business & enterprises. In modern money
oriented company, finance is one of the basis foundations of all kinds of economic activities. It is

the master key, which provides access to all the sources for being employed in manufacturing of
modernizing activities.
Efficient management of every business enterprise is closely linked with efficient
management of its finance. Business finance can broadly be defined as the activity concerned
with planning, raising, controlling & administrating of the funds uses in the business.
The finance department is under the control of finance manager. The finance manager
prepares the budget and the he allocates the funds. Other accountants are helping him in this
matter. In Lunar Rubbers all accounts are computerized and they follow double entry system of
book keeping.
STRUCTURE OF FINANCE DEPARTMENT
GM FINANCE

ACCOUNT
MANAGER

Account
Officer 1

Account
Officer 2

Junior
Accountant
Clerk

FUNCTIONING OF FINANCE DEPARTMENT

The major function of finance department in Lunar is budgeting and raising funds
internally and from financial institutions and utilization of funds monitoring in application.

Maintenance of liquid assets and maximization of the profitability of the firm are also the
functions of finance department.
The basic functions of financial management are the maintenance of liquid assets and
maximization of the profitability of the firm. Maintenance of liquid assets means the firm has
adequate cash in hand to meet its obligation at all times.
The organization gives credit to customers. We know in recent years customer credit is
playing an important role in sales but the realization of credit is the problem faced by the
company. Usually company allows credit to their distributors. The maximum credit is 30 days if
the distributer purchases the goods for ready cash then the compamy allow 2% cash discount.
In lunar the financial manager prepares the budget and allocates the funds. Other junior
accounts officers assist him in this matter. The accounts officer 1 in oberall charges of accounts.
Trial balance, balance sheet, audit of accounts, bank assistance, payment to credit and collection
from sundry debtors, watching payment of dues and all other matters connected with it. He
attends to all matters connected with income tax including collection of form and other material
for filing returns, super check on classification of payments, recepts, maintenance of cash book,
ledger etc. he is assisted by the junior accountants.
The account officer 2 is in charge of all matters concerned with sales tax accounting of
purchase and sales bills, scrutiny and passing of vouchers, bank returns declaration form -18,
collection of cheques, direction of stock register entries. He is also assist account officer 1 in the
preparation finalization of accounts.The junior officer and accountant assist the account officer 2.
The junior accounts officer attend to the all accounts of small units and returns of
company matters, verification, electricity bills matters concerned with SIDCO, computers entry
of accounts, printout, cashbook, ledger, bank accounts etc. preparation of monthly sales

tax

return, stock statements, bank return etc are also the work of junior accounts officers. Their work
is under the supervision of the accounts officers, the company giving P.P. of 12% to the workers
as mentioned in the Act.
Books maintained by Finance Department

Primary Book

Secondary Book
PRIMARY BOOK
o Cash book
o Bank Book
o Journal Book
o General Ledger
SECONDARY BOOK
o Sales register
o Purchase register

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS

General Manager:

Head the Finance of Accounts department.

Advise MD on Finance Matters and Accounts Matters.
Recommend / evaluate cost control measures.
Verifying all purchase bills.
Verifying all cheque payments.
Verifying all cash payments.
Watching all expenses.
Preparation of final accounts and conducting audits.

Accounts Officer 1
Overall responsibility of accounts
Verification of journal bill and vouchers
Payment of parties, verification of payment request, writing of cheques and
preparing vouchers.
Import related matters
Export related matters like preparation of documents, house stuffing, negotiation

with banks etc.

ROC related matters like filing of various forms, returns etc.
Attending company law related matters like preparation of statutory register.
Preparation of monthly trial balance.
Finalization of closing entries.

 Cash/cheque control.
Preparation of cash flows.
Income tax matters.
Accounts Officer 2

Data entry of raw materials purchased.

Verification of sales invoice.
Preparation of branch transfer delivery notes and supporting documents.
All work related to provident fund.
Filling of returns and correspondence related to ESI.
All work relating to sales tax.
Verification of accounts related to Coimbatore branch.
Assistance in maintenance stock records related to umbrella.
Verification of C forms, form 25, form18etc, issues to suppliers.
Assistance in connection with finalization of accounts.
Verification of vehicle repair bills.
All matters regarding KGST and CST.

Junior Accountant

Preparation of cash vouchers.

General vouchers.
Data entry operations.
Bill verification.
Correspondence.
File maintenance.

CAPITALSTRUCTURE
Financial structure of the company
Share Capital

25%

Reserves and Surplus

30%

Secured Loans

25%

Unsecured Loans

15%

Deserved Tax

5%

TURNOVER OF LUNAR

Financial year

Turnover

2005-2006

48,00,00,000

2006-2007

62,05,00,000

2007-2008

79,00,00,000

2008-2009

98,00,00,000

2009 2010

100,00,00,000

2010-2011

110,00,00,000

2011-2012

120,00,00,000

2012-2013

130,00,00,000

2013-2014

150,00,00,000

MARKETING DEPARTMENT
The American Marketing Association defines marketing as the performance of the
business activities that direct the flow of goods and services from the producer to the consumer
or to the user.
According to Philip kotler human activity directed at satisfying needs and wants through
process. The process of exchange involves sellers, searching buyers, identifying their wants and
needs, making relevant product, promoting and storing, transporting and distributing them and
negotiating and so on .

It represents the important functional area of business, for the flow of goods and services
from the product to the customer. It helps to the plan and develops the product on the basis of
known consumer demands.
Lunar rubbers Pvt. Ltd have an active and effective marketing department with a
marketing manager as its head. There are regional managers for each state. Regional managers
are assisted by junior sales managers.

STRUCTURE OF MARKETING DEPARTMENT

GM MARKETING

RSM (South)

RSM
(Central)

Asst. Sales
Manager 1

RSM
(North)

Asst. Sales
Manager 2
Marketing
Officer
Sales Officer

FUNCTIONING OF MARKETING DEPARTMENT

The marketing departments conduct various meetings to take the decision regarding
various activities. The marketing manager presents a report of the previous months activities.
These meeting and report are helpful to study, analyze, and control the problems being faced by
the product market. They will also assess the target fixed for sales and compare it with the
achievements made. The department conducts studies to explore new markets and to expand the
existing market. The head of the department in consultation with the managing director takes
decision in connection with sales promotion activities, advertisement etc.

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS

MARKETING MANAGER

Overall responsibility of the marketing activities.

Market development.
Promotional activities.
Distributor activities.
Preparation of sales plan.
Sales monitoring.
Route planning.
Control of sales officers.
Cash collection/monitoring of collection of dues .
Marketing analysis.
Collection of market data.

MARKETING MIX
The combination of marketing methods and programs are known as marketing mix. There
are four elements in marketing mix. They are:
1. Product mix
2. Price mix
3. Promotion mix

4. Place mix
1.PRODUCT MIX
According to William J Stanton, a product line is a group of products intended for
essentially similar uses and processing reasonable similar characteristics. The product mix of
lunar is the full list of products offered for sales by the company:
Hawai chapels
Umbrella
School bags
Hawai chapels:
1.
2.
3.
4.
5.
6.
7.

Lunar deluxe
.Lunar cushion
Lunar dimple
Lunar gold line
Lunar Acu - massager
Lunar pazzo
Lunar scott

Umbrella
Lunar rubbers Pvt. Ltd has entered into the umbrella market in the year 1999. There are
45 verities of umbrella differing in design and color. Almost all the parts and material required
for the umbrella are imported from countries like Taiwan, Saudi Arabia. These parts are
assembled in various assembly units.
Lunar introduced one more variety of umbrellas in the name of the godfather. The
peculiarity of this umbrella is that it is a cane framed light weight umbrella, which can capture
the full attention of the umbrella market.
The various umbrellas are:

Childrens umbrella
Two fold manual
Two fold automatic
Cup opens umbrella
Three fold umbrella

 Gents umbrella
Garden umbrella
Fancy item

2.PRICE MIX
One of the most important and critical area in marketing management is the pricing of
products. It is the second marketing mix. Decisions of pricing have considerable effect in
marketing. A wrong pricing decision can nullify the effect of all right decisions relating to
product, promotion, and distribution.
The price includes the cost of production and margin of profit. Lunar rubbers Pvt. Ltd
follows cost plus or market price policy which is the best approach to pricing.
In setting the price of the product company should follow six procedures.
1. The company should carefully establish its marketing objectives such as survival,
maximum current profit and maximum market skimming or product quality leadership.
2. Then company determines the demand schedule which sows the probable quality
purchase per period at alternative price levels. The more inelastic the demand higher the
company can set its price.
3. The company establishes how its cost varies different output levels and with different
level of accumulated production experiences.
4. The company examines competitive price as a basis for positioning its own price.
5. The company select one of the following pricing methods: market pricing, target return
pricing, perceived value pricing of dealed bid pricing.
6. The company select its final price expressing it in the most effective psychological way,
coordinating it with the other marketing mix elements.

3.PROMOTION MIX
Promotion is Any Marketing effort whose function is to inform and persuade potential
consumer about the availability of certain production or service withcertain capabilities to satisfy

specific wants. Advertising, publicity and sales promotion are the part of promotion. The
goodwill of Lunar Rubbers Pvt. Ltd helps to increase sales volume and publicity.

SALESPROMOTION
Sales promotion constitutes a very vital function in case of

a company which

manufactures consumer goods and consumer durables. Sales promotion is primarily intended to
increase sales.
Sales promotion is a bridge or a connecting link between advertising and salesmanship.
Lunar rubbers undertakes various sales promotion activities. They are;
ADVERTISING
It is the major promotion tool. The American marketing association defines advertising as
any paid form of non personal presentation and promotion of ideas, goods and services by an
identified sponsor. It is paid form of communication. Lunar Rubbers Pvt. Ltd has gone for a
massive advertising campaign. Media of advertising are: T.V, Radio, Boards, Stickers, Banner,
Cover and outdoor advertisement.
PUBLICITY
The American marketing association defines publicity as any form of non paid
commercially significant news or editorial about idea, Products or institutions. Lunar mainly
concentrating print media publicity.
4.PLACE MIX
Distribution channels have a vital role especially in the distribution of consumer goods.
The sales of company are done with the help of privately owned distributors. The distributors
and wholesalers supply the products to various retailers and finally reach the consumer.

DISTRIBUTION NETWORK

COMPANY

AGENCIES/ WHOLESALES

SUB WHOLESALES

RETAILER/DEALERS

CONSUMERS

MARKETING ACTIVITIES
1. BRANDING
It is an important aspect of product planning. It involves the assignment of a brand name
to the product being offered to the customer.
Lunar Rubbers Pvt. Ltd, enjoy a high degree of brand preference among the consumers. It
is said to have high brand equity. High brand equity provides a number of competitive
advantages to the company. The company reduced marketing cost because of high level

consumer brand awareness and loyalty. The company has more trade leverage with distributors
and retailers. The main market leaders of Hawai chapels in Kerala are Paragon and Lunar.
Popular brands of Hawai chapels in Kerala are Lunar, Paragon, Eva, Rubco etc. These brands
vary in the amount of power and value they have in the market place. The popular brands of
umbrella available are Lunar, Poppy, Johns etc. the main market of the Lunar chapels are
Kerala, Tamilnadu, Karnataka and Maharashtra.
2. PACKING & LABELLING
Once the decision taken on the brand, we have to consider the design and makeup
of the packages.
Packing is theactivity of designing and producing the container or wrapper of a product.
Label is a part of the product. It gives verbal information about the product and the seller.
3. PRICING
In setting the price of the product, the company should follow the procedures given
below.
The company should carefully establish its marketing objectives such as survival,
maximum current profit and maximum market skimming or product quality leadership.
Then company determines the demand schedule which sows the probable quality
purchase per period at alternative price levels. The more inelastic the demand higher the
company can set its price.
The company establishes how its cost varies different output levels and with different
level of accumulated production experiences.
The company examines competitive price as a basis for positioning its own price.
The company select one of the following pricing methods: market pricing, target return
pricing, perceived value pricing of dealed bid pricing.
The company selects its final price expressing it in the most effective psychological way,
coordinating it with the other marketing mix elements.
COMPETITORS
The competitors of Lunar rubbers are;

1. Paragon
2. Fisher
3. Senor chapels
Lunar umbrellas are;
1. Poppy umbrella
2. Johns umbrella
Packing material used for packing of Hawai chapels are;

Colored box
Polythene bag
Gray board box
Polythene bag printed

HUMAN RESOURCE DEPARTMENT

Human resource department refers to a set of program, activities of functions designing to
carry out in order to maximize both employee as well as organizational effectiveness.
According to Jucius Michael, Human Resource refers to a whole consisting of inter
related, inter department and interacting, physiological, sociological of their components. Thus
human resource represents the quantitative and measurement of work force required in an
organization.
Human resource management comprises several processes together they are supposed to
achieve the above mentioned goal. This process can be performed in an HR department, but
some task can be outsourced or performed by line manager or other department.
Human resources department of Lunar Rubbers Pvt. Ltd view people are most imported
sources of asst to be used for the benefit of organization and society. The human resources
philosophy of the management aims at formulation of policies that promote neutrality, mutual
respect, mutual reward and mutual responsibilities.

FUNCTIONS OF HR DEPARTMENT
RECRUITMENT
It is the basic process. Searching for employees and stimulating and encouraging them to
apply for jobs in an organization.
The main source of recruitment in Lunar Rubbers Pvt. Ltd is external source. The
company has eight branches. The recruitment and selection of employees is done by each
branches separately and finally approval is from the head office.
No special qualification regarding education is considered for factory workers. The only
factor considered is the ability and willingness of person to work hard. The minimum age of
workers is fixed as 18 years but maximum age limit is not fixed.
SELECTION
Selection is the process of choosing the most suitable person out of the entire applicant.
The purpose of selection is to pick up the right job and at a right time and at a right place.
Selection is an important function. No organization can achieve its goal with out selecting the
right person.
In lunar rubbers pvt ltd, sometimeselection is done through an informal interview. There
is no medical examination for fitness before selection. In the selection process attitude of the
person is considered.

SELECTION PROCESS

Preliminary
interview

Reference
checks

Final approval

Application
form

Selection
test

Physical
examination

Selection
interview

Employment

TRAINING AND DEVELOPMENT

Training a short term process, utilizing a systematic and organized procedure by which non
managerial personnel learn technical knowledge and skill for a de finite purpose. On the other
hand development is a long term educational process utilizing a systematic and organized
procedure by which managerial personnel learn conceptual theoretical knowledge for general
purpose.
In Lunar Rubbers Pvt. Ltd training is given almost all members. The method of training is
on the job training that is learning by doing. Training period range from 2 week to 2 years,
workers will get stipend during the training.
COMPENSATION

Employee compensation is a vital part of human resource management. Wages salaries and
other form of employee compensation constitute a very large component of operation cost.
Methods of wage payment
In Lunar there are two methods of wage payment.

Time wage system: - the time wage system is applicable in case off workers.
Piece wage system: - under the system workers are paid according to the amount
of work done or the number of units completed.

Working time
Working time for office staff is 9.00 am to 5.30 pm. There are 2 shifts for factory workers.
The workers must work 8 hours / day. First shift is from 8.30 am to 5.30 pm, second shift is starts
from 5.39 pm to 1.30 am.
The working time will be rotated for each worker, so that every one should have to work
in all these 2 shifts. There are 25 working days in a month.
Incentive
There is a standards of performance beyond which workers will get special rewards.

Leave
One earned leave for 20 days and one ESI leave for 15 days are given to all employees.

Daily wage is the basic of wage calculation but wages are paid monthly. Advance of wage given
to the needy workers on Saturdays. Supervisors get monthly wage on the basis of monthly wage
system.

Bonus
Bonus is given once in a year, it is in December

Employee grievance

In Lunar rubbers Pvt.Ltd the problem of workers should be solved by the managing
director. Workers can tell their grievance directly to the managing director and he will take
corrective steps to solve it.

Personal records

The company has the personal records for their reference.

WORK FORCE OF THE COMPANY
OFFICE EMPLOYEE DETAILS
Employees in office

No. of employees

Office

15

Accounts

Administration

Field

Total

30

FACTORY EMPLOYEE DETAILS

Employees in factory

No. of employees

Production manager

Supervisor

12

Chemist

Skilled

30

Semi skilled

40

Helpers

25

Total

110

FRINGE BENEFITS
Medical facilities
Workers enjoy ESI hospital facility. There are ESI hospitals at Thodupuzha,
Perumbavoor. Those workers who do not have ESI facility get Rs 1000 for medical
allowance. There is a first aid box (FAB) in the factory.
Free chapels and uniforms
Workers are given 3 pairs of chapels and uniforms in a year. Reduction in price also
given, when they buy lunar chapels.
Recreation facility
Company conducts KUDUMBA MELA (family gathering) during the time of
festivals such as Onam, Chritmas etc.
Social security schemes
Social security schemes are P.F, Gratuity and Employee State Insurance (ESI).
Gratuity is given to all employees who complete 5 years of service, including the training
period.
Loans
Company provides loan facilities to the workers to meet their urgent needs.
Allowance and other benefits
Night shift allowance is given to workers. Overtime wage is twice of normal
wage.
Labour welfare
The workers enjoy the following benefits:

Facility for washing, storing and drying their cloths at the company premises.
Restrooms are provided to the workers.
Facility for drinking water.
Facility for making food but there is no canteen facility in the factory.

PLACEMENT
Most suitable person from the pool of applicants will get placement in the organization.
INDUCTION

Lunar Rubbers Pvt. Ltd conducts an orientation program for the new employees in the
organization
PROBATION
The probation period of workers and staff in Lunar Rubbers Pvt. Ltd is up to 6 months.
PROMOTION
On the basis of employee efficiency, performance, commitment and loyalty the management
will select the appropriate candidate to fill the higher positions.
PERSONALITY DEVELOPMENT PROGRAME
Lunar Rubbers Pvt. Ltd arranges a Personality Development program for the company
employees once in a year. These help the employee in shaping their behavior properly in the
company and society.
CONSTITUENTS OF SALARY
The following are the constituents of salary:
Basic pay
DA
Telephone allowance
HRA
TA
PERFORMANCE APPRAISAL
Performance appraisal is measuring the relative worthness of a person, who is engaged in
the job. Based on the performance appraisal, Lunar Rubbers Pvt. Ltd provides Best Executive
Award for the employees.

TRADE UNION

There are trade unions in Lunar Rubbers Pvt. Ltd AITUC (All India Trade Union Congress)
& CITU ( Central Indian Trade Union). Salary hikes are discussed in the labour office in the
presence of union leaders, Managing Director, two persons from the Management and the labour
officer.
DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEAD
Manage the administration of human resource policies, procedures and programs.
Manage the day to day operations of human resource office.
Carries out responsibilities in functional areas like departmental development, human
resource information systems, organizational development and employment.
Coordinates implementation of services, policies and programs through human resource
staff.
Responsible for areas like recruiting, staffing, organizational planning, organizational
development and performance management.
Also responsible for employee orientation, development and training, employee welfare,
compensation and befit administration.
PRODUCTION DEPARTMENT
Production is the creation of goods and services. It is converting the input (raw material,
machinery, men & money) into output that is goods and service with the help of certain
production process. Production function is the most important function in an organization around
which other activities of an enterprise via. Marketing, Financing, Purchasing, Personal etc.

STUCTURE OF PRODUCTION DEPARTMENT

GM Production

STUCK
ON PM

PU PM

EVA
PM

Assistant
Manager

Supervisor

Workers
Managers

HAWAI
PM

Stitching
Asst.
manager

Stitching unit
1
Stitching unit
2

Stitchin
g
PM

Maintain
PM

Superviso
r

Electricians

Electrician 1

Workers
Electrician
2

Quality control
There is a quality control and inspection wing. They check the product while passing through
various manufacturing process and ensure that quality of the product. Every morning there is a
meeting between the plant manager and the workers manager. In which general appraisal will be
made of the last days work.
There is various type of raw material & machinery is used in production process, that are:
i.

Rubber

The most important raw material used in production department is rubber. Two
ii.

iii.
iv.
v.

verities of rubber are used, natural and systematic rubber.

Clay
It is used as filler; it is very cheap and easily available in Kerala. English India
Clay Ltd provide the of Lunar Rubbers.
Pigments and color
They are used for giving the pre determined color of the footwear.
Resins
It is improving the processing capability.
Mixing machine
Kneader and open mixing mill is the main mixing machine used.

vi.

Hydraulic press
This is used for molding the Hawai sheets. Sheets are inserted into the press and
the required design in molding on both sides of the sheets.

vii.

Casts
Hawai sole mold is used for molding the Hawai sheets strap, 8 pairs of strap
molded at a time.

viii.

Boiler
It is used for producing the required streme.

ix.

Cutting press
It is used to cut the molded Hawai sheets into required size.

x.

Drilling machine
It is used to make the hole in Hawai sole after cutting into the required size.

PRODUCTION PROCESS OF LUNAR HAWAI CHAPAL

Raw material converted into footwear involves several processes. Natural rubber is rolled
into the roller of mixing mill. After some time, clay is added to processed rubber. Then other

chemicals are also added. Then it is kept for 24 hours and is sheeted. Then we get sheet, which
are used for lower blue part of the sole. The upper white part is also made in the form of sheets.
The white sheet is put above blue sheet. They will stick together. These are weighted. The sheet
is required size and weight is molded in the hydraulic press or in the Hawai sole mould. After
molding the sheets are kept for 14 to 20 days.
Then the sheets are cut into sole for required size of the cutting press. Then drilling
machine will make 3 holes in the sole. After some time the straps are molded in strap press.
Straps are inserted into the sole and labeled and packed. Then Lunar Hawai chapels are ready for
use.
Raw
materials
weighing

Mixing
mill
kneader

Ageing of
24 hours

Sole
cutting

1. Lower blue
part
Dispatch

Packing

Sheeting

Assemblin
g

Sole
cutting

2. Upper white Part

Raw
materials
weighing

Mixing
mill
kneader

Ageing for
24 hours

Sheeting

Molding

Visual
examinati
on and
lab

Ageing
of 15
days

Post
curing

Sorting
defectiv
es

Molding

Trimmin
g

Visual
examinati
on and
lab

The most important raw material used in production is rubber. Two varieties of rubber are
used natural and synthetic rubber. Natural rubber is the most important raw material used in
production. It is mainly collected from local areas. Synthetic rubber is artificial rubber. They are
two types neoprene and synoprene. Neoprene is used in mixing it is very costly than synoprene.
Its function is to give more strength. In Lunar synthetic rubber is taken from Korea and China. In

case of clay it is very cheap and easily available in local places. Chemicals used in production
process are Sulphur, Zinc Oxide, Foron, Titanium, Styrite, etc. Crub is one of the important raw
material used in production process actually it is a waste material.
Natural rubber and synthetic rubber is rolled in to the roller of mixing mill. After some
time, clay, chemical and color is added to the processed rubber. Then we get sheets which are
used on the lower part of the sole. The upper white particular is also made up in the form of
sheets. The white part is put above the blue sheets. They will stick together. These sheets are
weighted. The sheet of required size and weight are molded in the hydraulic press or in the
Hawai sole mold. After molding the sheets are kept for 14 to 20 days. Then the sheets are
converted through cutting press. After cutting the drilling machines will make 3 holes in the sole.
After some time the straps are molded in the strap press. Straps are inserted into sole and are
labeled and packed. The lunar Hawi chapel is ready.
MIXING MACHINE
The machine are two types
a. Kneader
b. Open mixing mill
Both are used for mixing the various raw materials. But the capacity and speed of Kneader is
higher than the open mixing mill and is automatically controlled.
HYDRAULIC PRESS
This is used for molding the Hawai sheets.sheets are inserted into this press and the
required design is molded on both sides of the sheet.
MOULDS
Hawai sold mold is used for molding the Hawai sheets strap. 8 straps can be mold at a
time.
BOILER
It is used for producing the required system.

CUTTING PRESS
It is used to cut the molded Hawai sheet in to required size.
DRILLING MACHINE
It is used to make the holes in Hawai soles after cutting into the required size.
SAFETY MEASURES
There is an emergency reverse stop for the safety of the workers. In the emergency
situation just pull the stop bar, the machine slowly rolls backward. This is a new technology
developed by the maintenance department in the Lunar Rubbers factory. Company provides
gloves and mask to the workers for their safety. There is a fire extinguisher and also a first aid
box in the factory.
INVENTORY MANAGEMENT
Every enterprise needs inventory for smooth running of its activities. It serves as a link
between production and distribution process. There is, generally a time lag between the
recognition of a need and its fulfillment. The greater time lag, higher the requirements for
inventory. The unforeseen fluctuations in demand and supply of goods also necessitate the need
for inventory. It also provide for a cushion for future price fluctuations.
RE-ORDERING LEVEL
When the quantity of materials reaches at a certain figure then fresh order is sent to get
materials again. The order is sent before the materials reach minimum stock level. Re-ordering
level is fixed between minimum level and maximum level. The rate of consumption, number of
days required replenishing the stock, and maximum quantity of materials required on any day are
taken into account while fixing re-order level.
PRODUCTION DEPARMENT HAS MAINLY 3 SECTIONS
PURCHASE, PRODUCTION AND STORES

On the basis of the re-order level duly authorized purchase indent is given to purchase
section based on purchasing materials. The purchase orders are prepared by purchase section
based on the requirement evident from and unlimited through purchase indent. The purchase
order includes the following such as purchase requisition, number of material description,
quantity, rate, total cost, delivery date etc.
THE PURCHASE SECTION MAINTAINS THE FOLLOWING RECORDS
A. VENDOR EVALUATION

The purchase section maintaining and updating the vendor records

B. PURCHASE ORDER FORMAT
The purchasing section keeps the purchase order format for the further reference.
C. VENDOR HISTORY REGISTERS
This is also keeps with purchasing section
D. LIST OF APPROVED SUB CONTACTS
To know about the approval of the sub contacts the list of the contacts keeps with
the purchasing section.
STORES CONTROL SECTIONS

The purchase department as per purchase indents produces materials; it is received along
with documents like delivery notes, and invoice whichever is applicable. Raw material and other
items transferred to quality assurance section for inspecting the required quality and the status is
indicated in the goods received note. The accepted items are transferred to the receiving stores
and sent back to the supplier. For the purpose of efficient inventory management following
records are prepared.
1.
2.
3.
4.
5.

Goods Received Note

Bin Card
Stock Register
Consumption Report
Issuing Note

6. Follow up Note
QUALITY CHECKING MACHINE

Lunar Rubbers Pvt. Ltd provides more importance to the quality of products. For
checking or measuring the quality they use a machine called Rheonetor.
DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS
GM PRODUCTION

Check and inspect overall performance of production department

Quality checking
Sanction of material requisition
Technical, quality, and quantity problem solving
Designing of new products
Forecasting new designs
Finding new suppliers for raw materials
National and international level exhibition analysis and reporting to
management

PRODUCTION MANAGER

Promoting awareness of customer requirements through organization.

Overall responsibility of the plant.
Quantity and quality of production.
Efficient operation of the plant.
Technical problem solving.
Appraisal of factory staff.
Plan and organize management review, meetings and prepare minutes of the

meeting.
Optimizing the utilizing consumption.
Labour control.
Planning of preventive maintenance.
Giving necessary instructions to subordinates.
Controlling production and maintenance records.
Timely manufacturing of products.
Reporting to MD regarding factory functioning.

PRODUCTION SUPERVISOR

Supervise the activities in the shift.

Job allocation to workers and manpower control in the shift.
Quality and quantity of production.
House keeping
Shift documentation
Ensure the operational instructions are implemented and followed
Responsible for loading and unloading activities
Control of loading workforce.

WORKS MANAGER

Overall responsibility of the cutting, assembling and packing unit.

Arranging products for dispatch in time.
Arranging packing materials.
Coordinating with manufacturing units.
Reporting to MD regarding the product complaints.
Performance monitoring of the cutting unit.

MAINTENANCE MANAGER

Preventive and breakdown maintenance.

Beginning store control
Intimating engineering requirements to production manager
Verification of incoming engineering materials.
Break down analysis.

PURCHASE DEPARTMENT
Purchase department plays a very important role in an organization. Its function is to
purchase materials, machines and tools at the most favorable terms consistent with maintaining
the standard quality, purchase of raw material at the right time in adequate quantity and quality at
the right price is very important.
The company is having a decentralized purchase department headed by the purchase
manager. He is assisted by executive officers. The purchase manager reports to general manager
and managing director. They coordinate the entire purchasing activities. In case of local purchase
for minor items or frequently used tools, spares etc, it is the responsibility of the purchase
officers the timely procurement of the material.

FUNCTIONS OF PURCHASE DEPARTMENT

The functions of purchase department include:
a.
b.
c.
d.
e.
f.

Receiving purchase requisition

Locating the source of supply
Choosing a supplier with best price
Preparing the purchase order
Receiving, checking and inspecting material
Passing of bills for payment

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEAD

The main duty and responsibility of the department head is to ensure the proper
supply of raw material used in production. He has the responsibility of reporting to managing
director regarding the purchase of materials. He also has the responsibility of raising purchase
indents and receipt of materials. Issue of material and maintenance of all relevant records about
these are also including in his duties.
Duties and responsibilities of purchase manager in Lunar Rubbers Pvt. Ltd are the
following:

Overall responsibility of the purchase activity

Vendor development
Price monitoring
Timely supply arrangement of materials
Purchase bill verification and recommending payments
Maintenance and control of the stock register

CHAPTER 5

SWOT ANALYSIS OF LUNAR RUBBERS PRIVATE LIMITED

With the help of SWOT analysis the strength, weakness, opportunities and threats of
Lunar Rubbers Pvt. Ltd is analyzed and noted:
Strength
Second largest manufactures of Hawai chapels in Kerala.
Since Lunar products are manufactured as per the strict quality guidelines, they
are able to make high quality products.
Easy availability of raw materials helps the company to manufacture products at
lower paces.
Company has a policy of continuous development and innovation in products
which enables to mainland high market share (43% in Kerala market).
Frequent meeting between tile owners and employees helps to build a good
employer- employee relationship.
An ISO 9001- 2000 certified.
Weakness
Price variation in the rubber market.
Less advertisement of Lunar umbrella.
Lack of availability of raw materials.
There also arises delay in the transportation of goods.
Lack of latest technology used in the company.
Opportunity
Since the products are used in all walks of life, the company can target all types of
income group.
The company can extend the market into more foreign countries.
Since the company has introduced different verities of products, it helps the
company to enlarge market share.

 Increase opportunities in export market due to globalization.

Strong dealer networks.
Company has a good opportunity of expansion.

Threats
Fast changing technology.
Increasing the number of competitors
Availability of cheaper products with lower price( eg:- china products)
Increasing transportation cost of material
Increasing competition due to liberalizations of the company.
The young generations exhibits less interest in buying lunar foot products.
Well designed products from companies.

CHAPTER 6

FINDINGS AND SUGGESTIONS

FINDINGS

Lunar Rubbers Pvt. Ltd company gives more important to the quality of products.
Majority of the employees satisfied with the good communication in the organization.
No environmental pollution is obtained from the company.
Maintain good relationship between employees and employers.
Management is very careful in hygienic factors.
Main competitors of Lunar are VKC and Paragon.
Majority of the employees are satisfying the security of the job.
Concept of modern MIS is not yet introduced by the Lunar Rubbers; It is carried out by the

personal department in an informal way.

Most of the employees are satisfied with the cleanliness of the company.

.The major portion of the income is contributed by the Hawai chapels.

.Management is very careful in hygienic factors.
.Lunar umbrellas cant attract the childrens sections.

RECOMMENDATIONS

Ensure the effective participation of employees in their work.

Improve the existing working conditions in the company.
Company should provide some incentive scheme and extra benefit to the employees in order to

motivate them in their respective work.

Modern variants of Management by Objectives should be implemented in the company to ensure
more participation and active work involvement of workers.

Effective orientation and training programs should be introduced.

Improve the relationship between superiors and subordinate.
Give higher priority to consumer tastes and preferences
Develop the communication and team spirit among the employees.
Industrial visits should be arranged for employees to create and develop general
awareness regarding new concepts, systematic functioning etc.

CONCLUSION

Lunar is a name that stands for quality Hawai Footwear. This company is mainly
producing Hawai chapels and umbrellas. Lunar products are manufactured as per strict
quality guidelines. The commitment and efficiency of employees helped Lunar products
to capture the highly competitive market. Product quality enables the organization to get
the prominent place among the competitors.
The success of any organization depends on the team work, quality and price of
the products after sales services. It is also believed in marketing of their products to the
best satisfaction of the customers.
When we analyzed various departments we can understand that dedicated
employees are key factor in Lunars success. Company has a policy of continuous
development and innovation in products, which enables it to maintain high market share.
All the employees are very co operative and supportive and they always try to achieve
organizations goals together.
The long mission of management helped to win the competitive market. The
marketing strategy and financial decisions are sufficient to capture the market and Lunar
having strong production unit. The company is now progressing towards full automation
to keep in pace with the expansion program for servicing the escalating domestic &
international demands.
The study reveals that most of the employees are happy with their present
job and is satisfied in working for this company. The employees are of the opinion that
they are getting better support from the management. The employees are ready to offer
their insight and constructive ideas on how to improve their area within the company. It
would be better if the employees are made aware of the upcoming changes in the
organization so that they can also work for same. Further from this survey I hope the
organization will benefited and with the help of suggestions, the management can
improve the level of job satisfaction among the employees in the organization