1

INDUSTRY PROFILE











2

INDUSTRY PROFILE
Faster, Better and Cheaper is the slogan that drives todays electronic industry. Consumers
are buying goods at a faster rate than the past. Electronic industry now follows the slogan
Innovate or Perish. Thus we can see number of novel and modified products in the market
today.
The basic technology for the manufacture of Aluminium Electrolytic Capacitors has changed
a little since the first high performance AECs using formed and Etched Aluminium Foil was
developed in late 1930's. However, over the years, especially with the advent of modern
equipment utilizing integrated circuit and with the demand imposed by improved and
consistent performance over extended period of time, substantial adaption and process
improvement have been made. Maximum attention is being paid by the leading overseas
manufacturers to the following developments:
Improved materials and their performance.
Automation.
Reliability and quality assurance.
Higher tolerance to inverse voltage.
Higher temperature capability.
Miniaturization.
The major global players in electrolytic capacitors are:
Barker Microfarads, Inc. (USA)
Cornell Dubilier Electronics, Inc. (USA)
Capacitor Industries (USA)
DuraCap International Inc. (Canada)
ELNA America, Inc. (USA)
Elna Co. Ltd. (Japan)
Epcos AG (Germany)
Guangdong Fenghua Advanced Technology (Holding) Co. Ltd. (China)
Hitachi AIC, Inc. (Japan)
Hitano Enterprise Corp. (Taiwan)
Haimen Sancon Jetwell Electronics Co., Ltd. (China)
Illinois Capacitor, Inc. (USA)
3

Jacktronics Electronics Company (China)
Kemet Corp. (USA)
Arcotronics Group (Italy)
Evox Rifa Group Oyj (Finland)
Lelon Electronics Corp. (Taiwan)
Liket Corp. (Taiwan)
Nichicon Corp. (Japan)
NIC Components Corp. (USA)
Nippon Chemi-Con (Japan)
Panasonic Corporation (Japan)
Rubycon Corp. (Japan)
SamWha Electric Co., Ltd. (South Korea)
Sanyo Electronic Device Company (Japan)
Sun Electronic Industries Corporation (Japan)
Since the collapse of the IT and telecom boom at the end of 2000/beginning of 2001 the
capacitor industry has restructured to meet both long standing and new challenges. Major
issues facing the industry include:
Pricing.
Material costs and availability
Competition between capacitor technologies.
The move to value added/application specific products.
Capacity.
Inventory.
The requirement for a global manufacturing footprint.
The emergence of low-cost suppliers, in particular, from China and Taiwan.
The end-use markets of aluminium electrolytic capacitors are:
Consumer Electronics
Computers and Peripherals
Telecommunications
Industrial Applications

Inverters
General-Use Inverters
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Inverter Air Conditioners
Other Inverters
Welders
Automotive Applications

ASIAN MARKET TREND
China, considered to be one of the Asian dark horses, has made an astounding
progress in the capacitor industry. The technological, economical, and social policies adopted
by the Chinese government have provided a tremendous boost and encouragement to the
Chinese manufacturers and entrepreneurs. Supportive import, economic, and development
policies have encouraged leading multinationals in the field to set up development and
manufacturing facilities in conjunction with the local Chinese players. This drive has
positioned China, unknown and unheralded a decade ago, on the world capacitor map.

China has the capacity and technical know-how to produce capacitors of all types.
Varieties of capacitor manufactured range from the most advanced surface-mount ceramic
chip capacitors, high-voltage capacitor banks to the basic components. Capacitor unit sizes
range from universal-scale, highly automated, high-volume (mass production) plants down to
small garage operations of the small-scale entrepreneurs. The technology and size of the
manufacturing machinery deployed in these plants ranged from state-of-the-art high-volume
version operating in clean-room environments down to the simple manual machines
functioning in unprotected environments. All the large-sized capacitor factories are
government-owned or joint ventures with government companies. Most of the capacitor
production and usage aspects are directly or indirectly government-controlled companies.
The number of factories is more than 500. The production of ceramic capacitors is 40 billion,
electrolytic capacitors 25 billion, and plastic film capacitors 15 billion. The large-scale units
are 25. A large and growing demand for capacitors exists from all sectors in China. This
offers a unique advantage in the setting up of modern large-scale plants. These plants can
obtain their basic loads from the domestic market. Rest of the production is exported on
marginal-cost basis. This aspect enables Chinese capacitors to be price-competitive in the
export market and the valuable foreign exchange earner.

The production capacity of most of the capacitor-using machines in China, except the
automotive sector, is at least 4 to 5 times that in India. This enables large-scale, low-cost
5

production across the entire value-chain possible, ranging from raw material procurement,
components, capacitors, and the process itself. The low-cost advantage is enhanced further by
low interest rates, sound infrastructure, and a uniform and simple value-added tax (VAT)
structure of indirect taxation, translating into lower retail prices which, in turn, fuel demand.
Increasing demand leads to increase in production, containment or lowering of costs, and so
on. The price of virtually every electronic or electrical appliance in the Chinese domestic
market is far lower than in the Indian market. The Chinese capacitor market is highly
competitive and prices have been falling in the last few years. This is due to customer
pressure and over capacity. Capacitor prices from the small-scale sector are also surprisingly
very low. Prices of the large-sector companies are in tune with the international prices. Raw
material prices for the capacitor dielectrics are in line with the international prices.
The leading Asian producers of Aluminium Electrolytic Capacitors are as follows:
China
Andex
Matsushita Precision
Bennic Components
Bonnex Enterprises
Capxon Electronic (Shenzen)

Japan
Nippon Chemicon
Nichicon
Elna
Shin EL Tsushin Kogyo
Hitachi Condenser
Toshin Kogyo
Shoei Co.

South Korea
Samhwa Elec/Nichicon Korea
Daewoo

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Korea Elna
Samsung
Dongsung

Taiwan
Kaimei Electronic
Yeong Long
Matsushita Taiwan
Teapo
Anodia















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INDIAN ELECTRONIC INDUSTRY
The electronic industry in India constitutes just 0.7% of the global electronic industry.
Hence it is miniscule by international comparison. However the demand in the Indian market
is growing rapidly and investments are flowing into augment manufacturing capacity. India
however remains a major importer of electronic materials, components and finished
equipment amounting to over US$26 Billion in 2009. This is to a desirable situation and local
manufacturing has to keep pace with growing local demand.
The size of Indian market for capacitors is estimated to be around Rs 1000crore.
During the last few years capacitors market has posted a healthy growth of 10 percent
annually. According to a Market survey the annual requirement of all kinds of capacitors in
India has been estimated at 1500 million pieces. . Like any other electrical equipment market,
capacitor market is also characterized by the co-existence of both organized and unorganized
players. However, it is more fragmented with around 25,000 capacitor players operating in
the country.
Due to economic recession and subsequent global meltdown, demand for capacitors
too has adversely affected. All the major user industries like automobile, cement and steel
were adversely affected (especially in the third quarter of 2008-2009 fiscal) and also the
demand for the consumer durables like air-conditioners and refrigerators moved southwards.
As a result capacitors market encountered sluggish demand. To cope up with the slackness in
demand, many well-known manufacturers have reduced the prices of their products. Indian
capacitor industry is dependent on imports for some of its raw materials. Domestic
manufacturers complain about the aberration in duty structure which is hampering the
growth.
In India, the units manufacturing electrolytic capacitors with foreign collaboration are:
Peico Electronics & Electricals Ltd., Bombay
Rescon Manufacturing Pvt. Ltd., Pune.
Sab Electronic Devices, Sahibabad.
Webel Sen Capacitors Ltd., Calcutta.
Xenia Electronics Pvt. Ltd., Ranchi.
Keltron Component Complex Ltd., Kannur.
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Although the capacitors made in India are being exported to USA, South East Asia
Middle East and African Countries, India is not a major player in the international capacitor
market. However, experts in the industry feel that there is huge potential for export of
capacitors. Currently, exports hardly account for 10 percent of the turnover but there is scope
for increasing it substantially. Exports from the current rate of less than 10 per cent, it can
reach up to 40 to 50 per cent.
Indian manufacturers are feeling heat of competition from Chinese makers not only in
international market but also in the domestic market as well. Due to import of some of the
raw material and recent Rupee depreciation, for the Indian Manufacturers (especially for
small and medium scale manufacturers) manufacturing of the capacitors becomes costly and
as a result they are not able to compete with the China made capacitors in terms of price.
Over the years the development has taken place in the technology in manufacturing
capacitors. The quality of the product has improved and they have acquired the compact size.
But at the same time, cost of manufacturing has also increased. Need is to opt for automation
and invest in new machines. As a result, capacitors made in India will be more economical
and more price competitive. With the help from the government and signs of economic
revival on the horizon, industry leaders feel that tough times are a thing of past. According
the experts, for the Indian Aluminium Electrolytic Capacitors industry to improve its
profitability of the company, the following is required.

Increased capacities with excess of indigenous demand stated for exports
Further automation of the system resulting in high international standards yields
Availability at competitive cost of international standard raw materials preferably
from indigenous source.







9











COMPANY PROFILE









10

COMPANY PROFILE
Introduction
Keltron was established as a subsidiary company of Kerala State Electronic Development
Corporation Ltd on 8
th
October 1974 by shri. K. P. P. Nambiar, who is the founder of the
organization. Later on 19
th
August 1978, the companies started to commercialize its
production.
Keltron Component Complex Limited (KCCL) is a government of Kerala undertaking
promoted by Kerala State Electronics Development Corporation Limited. The company is
located in the district of Kannur in Kerala. It commenced its commercial production of
Aluminium Electrolyte capacitors in August 1978 in technical collaboration with N. V.
Sprague Electromagnet, Belgium a subsidiary of the world famous Sprague Electric company
of USA.
KCCL markets its products under the brand name KELTRON. It has a good manufacturing
facility with sophisticated machines import from Japan and Europe. It has acceptability to
produce all types of Aluminium Electrolytic Capacitors, which confirm to national and
international standards. The manufacturing technologies is upgraded with R&D center of the
company has the recognition of the Department of scientific and industrial Research,
Ministry of Science and Technology, Government of India. The State Pollution Control
Board has certified the companys eco friendly facility at Kannur. M/S KPMG, USA, have
conferred the companys quality system with the ISO-9001 accreditation.
Amalgamation
The ministry of corporate Affairs, Government of India, through an order, dated 5
th

November 2009, had given a sanction for the amalgamation of Keltron Magnetics Ltd,
Keltron Resistors Ltd, and Keltron Crystal Ltd, here in after refer to as the transferee
companies with the Keltron Component Complex Ltd her in after refer to as the transferee
company through merger and without the process of winding up, which was concluded by the
filling of the said order with the Registrar of the Companies at Cochin and thus the
amalgamation made effective from 1
st
April 2007. Both the transferor companies and
transferee company are in the same compound and are manufacturing the electronic
components which are their major source of income. The transferors as well as the transferee
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companies are government companies and the majority of the shares are held by the Kerala
State Electronic Development Corporation. However the transferee company is a listed
company and the listing agreement is made with the Madras and Cochin Stock Exchange.
The consideration paid to the shareholders of the transferor companies by the transferee
company is as follows;
Transferee companies No. of Equity shares issued by the Transferee
company towards the purchase consideration
Keltron Magnetics Ltd 250910
Keltron Resistors Ltd 1598117
Keltron Crystal Ltd 1339750

Application/Customers
Electrolyte capacitors are widely used in TV sets, VCR, Radios, Tape recorders, Telephone
instruments, Motors, Electronic exchanges, Communication equipments etc.
The present customers include major Indian companies like BEL, ITI,C-DOT,HCI, Tata
Telecom, Oneida, Sharpe India, Videocon, Crompton Greaves, Kirloskar and other small
OEMS serviced through dealer network.
Vision, Mission & Quality Policy
To become economic power, technology and economy need to be considered in an integrated
manner rather than as separate entities. With the opening of economy, Indian industry needs
to be globally competitive. Hence, What is required is a clear vision of what can be achieved
and how best to achieve it. The industry will have to support the nation in acquiring
economic leadership and progress by 2020. The foundation of this leadership will depend to
greater extend on the technological excellence of the firm.
Vision
To be a world-class, growth oriented electronics corporation specialized in providing quality,
market focused products, services and cost effective system solutions and to attain leadership
position in the knowledge industry by training and utilizing the rich knowledge capital
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available in Kerala, and creating a wide technology horizon for the development of
knowledge wares and intelligent systems.
KCCL was established with a vision to bring the benefit of technology to the service of the
people and prosperity to the society it belongs. The role of technology development in the
economic progress of a nation is being increasingly recognized. Efforts are being made
globally to develop technological strengths and firms are becoming more and more
competitive. The developing countries especially are showing a marked rise in the pace of
economic growth. The trends
Indicate that there is lightly to be shifted in economic power towards the 3
rd
world countries
in the 21
st
century.
Mission
The company aims at maximum satisfaction to its customers by providing goods which meets
their requirements. The company is committed to achieve its goal with the involvement of
employees at all levels. The company is to bring the benefit of technology to the service of
the people and prosperity to the society it belongs to. To advise, this company has established
close international affiliation with world class leaders in technology and build up strong
business relationship.
Quality Policy
The company aims at maximum satisfaction to its customers by providing goods which meets
their requirements. The company is committed to achieve its goal with the involvement of
employees at all level through as defined quality management system, which is continuously
reviewed to enhance its effectiveness and updated to meet challenging needs. The company
has a separate quality assurance department to confirm their product standards. The quality
assurance department function includes central examination and administration. The
departments primarily concerned with ensuring quality of the product by way of inspection
are categorized as Raw material inspection, petrol inspection and Final inspection.



13

Infrastructural Facilities
Land Area 44,100 Sq mtr
Factory Area 9150 Sq mtr
No. of Automatic Machines 100

Other Facilities
Modern technological machineries imported from Japan for MPP and Wire Wound
capacitors
Inbuilt Etching and forming department
Efficient and skilled manpower
Fully equipped labs
Canteen and recreation club
Good library
Beautiful garden
Prospective Customers
The Electrolytic Capacitors are widely used in TV sets, Radio, Tape Recorders,
Telephone instruments, Electronic exchanges, Communication equipments, Defence
equipments etc. The present customers include major Indian manufactures like BEL, ITI, C-
DOT, HCL, TATA TELECOM, BPL TELECOM, BPL, ONIDA, SHARP INDIA,
VIDEOCON, CROMPTON CREAVES, TEXLA, ECIL, INDIAN AIRPORT AUTHORITY
etc.
Competitors Information
The major competitors in India for capacitors are Panssumi Indian Ltd, Philips, Uptron,
Incap, Elnet etc.
As reported in the year 2009-2010, the company faces severe competition from foreign big
manufactures with high capacities-China, Korea, Hong Kong etc. who influx capacitors into
India at cheaper rates. Most of the indigenous aluminium electrolytic capacitors manufactures
such as ELNET, UPTRON, INCAP, PANSSUMI, RAMCON, who had setup manufacturing
facilities during 1980shave closed down because of the severe competitions from foreign
14

manufactures. In addition, many of the customers electronics, telecom equipment
manufactures of India origin who were sourcing, electronic components from India
component industry closed their door. Multinational companies like LG, Samsung etc have
set off facilities from India. These MNCs shows their own countries like Korea, china etc. In
large volume, this has resulted in severe competition in the price front compelling the
company to reduce the selling price, continuously for retaining KELTRON brand and its
presence in the market. Average drop in selling price of the company product DC aluminium
electrolytic capacitors during 2009-2010 was around3%-4%. The company during the last
quarter of the financial year had seen an increase in the output cost due to step increase in raw
material cost of metal part and plastic items. The main competitors of Keltron are:
INCAP
ELNET
UPTRON
ELCAP
PANSUMI
RAMCO
Raw materials
The main raw materials used for manufacturing AEC's are:
Etched aluminium foils 30 to 60 microns thick
Formed aluminium foils and anodised etched aluminium foils 50 to 90 microns thick.
Condenser paper, craft and Manila Hemp and Duplex
Aluminium cans
Lead tabs.
Electrolytes
Rubber bungs, EPDM, EPT rubber.
Disc covers.
Glue.
Adhesive tape, high purity and high temperature.
PVC heat shrinkable sleeve.
Aluminium wire
CP Wire (Copper plated).
15

Plant & Machinery

The company has scheme for breakdown maintenance, preventive maintenance . All
the critical automatic equipments are under inspection maintenance scheme. The
machines are maintained in good condition and the expected life is extended by
proper maintenance.
The engineers and technicians trained in Japan and Taiwan on the machines oversee
the repair activities. Technicians are provided on the job training, sufficient stock of
spare parts are sourced and stored from the suppliers for fabrication of spare parts,
and tools room facility is also available.
PRODUCT
A capacitor is an electric circuit element used to store charge temporarily, and typically
consists of two metal plates separated by an insulator called a dielectric. Capacitors can store
charges from voltage sources for a wide range of time, to be released as needed. This
classification of capacitor types by material such as paper, ceramic, or tantalum refers to the
insulating dielectric
An electronic component is any physical entity in an electronic system used to affect the
electrons or their associated fields in a desired manner consists with the intended function of
the electronic system. Components are generally intended to be connected together, usually
by being soldered to a printed circuit board ( PCB), to create an electronic circuit with a
particular function ( for example , an amplifier radio receiver or oscillator). Components may
be packed singly or in more complex group as integrated circuits. Some common electronic
components are capacitors, resistors diodes transistors etc.
Early capacitors were also known as condensers a term that is still occasionally used today.
The term was first used for this purpose for by Alessandro Volta in 1782, with reference to
the devices ability to store a higher density of electronic charge than a normal isolated
conductor.
PRODUCT PROFILE
The company started with manufacture of Axial, Radical and can type capacitors.
Subsequently products were added within house development. At present the company
manufactures a wide range of Aluminium Electrolytic DC and AC capacitors as below:
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PRODUCTS OF KCCL
RADICAL CAPACITORS
SA Series Small Sized+85c(200 hrs)
SM Series Reduced Size 7mm height
SN Series Bipolar
SH Series Horizontal Correction
SZ Series Low ESR
SB Series Professional grade defense approved
SE Series High temperature, 105c (for automobile section)

AXIAL CAPACITORS
DB Series Miniature 85c (200 hrs)
DC Series Large Axial 85c (2000 hrs)
DD Series Professional (defense approved)

CAN TYPE CAPACITORS
MA Series PCB mounts high voltage capacitor
MB Series Snap mounts
MD Series Double Can motor start AC capacitor
MS Series Single Can motor start AC capacitor
MP Series Can type screw terminal

MOTOR START CAPACITORS
MD Series Double can for application at 230V AC/110V AC and
330V AC
MS Series Single can for application at 230V AC/110V AC and
330V AC


17

E.g.:




COMPANY PROFILE
NAME : KELTRON COMPONENT COMPLEX LIMITED
ESTABLISHED : 08 OCTOBER 1974
AREA : 44000Sq.Mtr
BUILD UP AREA : 9500Sq.Mtr
WEBSITE : www.keltroncomp.com
E-MAIL ADDRESS : keltroncomplex@bsnl.in
FACTORY ADDRESS: KELTRON COMPONENT COMPLEX LIMITED
KELTRON NAGAR P. O, KALLIASSERY
KANNUR, KERALA. PIN-670562
TELEPHONE : 0497-2780831 to 2780834
FAX : 0497-2781055

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Awards/Recognitions
1. National productivity Award for 1988-89 under large scale electronic component
from National Productivity Council, New Delhi.
2. ELCINA Award 1993 for excellence in Research &Development for work done in the
field of forming technology.
3. Department of scientific and industrial Research and Ministry of Science and
Technology, Government of India approval for in-house Research &Development.
4. ISO 9001 certificate from M/S Intertek-US.
5. 1972:FICCI-1972 Award for outstanding contribution for research in Science &
Technology awarded to Tata Electronic Research & Development Laboratories of
Tata Electric Companies on 1
st
March,1973 by the Prime Minister Smt. Indira Gandhi
and received by Mr. Nambiar.
6. 1973: Republic Day Award-1973 by Invention Promotion Board of CSIR, Govt. of
India.
7. 1978: Science & Technology Award- Kerala 1978 by the Govt. of Kerala presented
by the Chief Minister of Kerala.

8. 1983:FICCI-1983 award in recognition of Institutional initiative in Research in
Science & Technology to Electronic Research & Development Center(ER & DC) at
Trivandrum, present in New Delhi by the Finance Minister of India.
9. 1985: Vasvik Award, in the field of Electronic Science &Technology-1986. National
Design Award-1985(Institutional of Engineers, India) presented by the Union
Industries Minister.







19

ORGANIZATIONAL CHART






















Managing
director
Head of Quality
assurance
department
Head of R&D
department
Head of Planning
Department
General Manager
Finance Manager
Head of Production
Department
EDP assistant
Manager
Marketing Manager
Staffs

Manager
Inspector
SIC
Production
development
Assistant
Manager
Senior
Officer
EDP STAFF
General
accountants
Accountant
s assistants
Section
Assistant
Staffs
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SWOT ANALYSIS









21

SWOT ANALYSIS
A swot analysis is a close look at companys strength, weakness, opportunities and threats in
terms of important factors such as the economy, the product, staff resources, completion,
technology, legislation, consumer trends, environments and etc. It is a common tool used in
organizational planning and strategy development. The basic assumption of a SWOT analysis
is that organizational must align internal activities with external realities to be successful.
Strengths and weakness are essentially internal to the organization and relate to matters
concerning resources and programs within the company whereas opportunities and threats are
external factors confronting a company such as new technologies, competition etc. The four
factors can be described as follows.
Strengths
Experience and expertise of workforce.
Better customer service.
Good infrastructure.
Superior quality products.
On time delivery of products.
R &D innovation
Reputation of the organization
Full and semi automated production system.
Highly satisfied customers.
Good labour relation.
Weakness
The company is running at full capacity.
High price compared to other brands.
Influence from the govt and political parties.
There is high dependability of on the import of raw materials.
Very old machines.
Lack of advertisements and other sales promotion activities.

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Opportunities
Company is capable to do experts.
Day to day expand.
Availability of workers.
Expansion of production capacity.
High demand for the product.
Company is capable to do exports.
Threats
Emergence of new companies may lead to competition.
Globalization.
80% of raw materials are imported.
The promotion activities done by other brands capture market.
Existing infrastructure is very old and is need to be replaced.











23










PLANNING DEPARTMENT









24

DEPARTMENTS OF KCCL:
The major department of KCCL:
PLANNING DEPARTMENT
Planning is most important to tackle uncertain future. It implies an orderly approach to the
task in hand. In Keltron planning department prepares an annual budget based on the
marketing trend, demand and price existing in the market. It has also got a planning
committee which consists of the head of planning department, the head of marketing
department, the head of finance department, the head of personnel department and the head of
production department.
in keltron planning is done in all departments on the annual intend from top management,
marketing department and planning department will prepare an annual budget based on the
marketing trend, Demand and price exceeding in the market. After getting the approval of
managing director, annual budget is send to the marketing departments and other proposed
departments. Other than preparing the annual budget the planning department is also
engaged in preparing a quarterly and monthly budget to meet market requirements. They
arrange shortlist in which non-availability of material is listed. Initiative taken by the
purchase department is highlighted. Purchase department makes arrangement for providing
materials and after receiving materials work order is issued to production department. After
inspecting the raw materials they are given to stores which would be then put in production.
Duties
Planning department has to look after the rework of capacitors, standardization of work. The
primary duty of planning department is reduced wastage from each department, wastage
including time, material, finance, and motion etc .reducing the congestion in stores by using
FIFO method is also taken into consideration. It keeps production control that is according to
the plant and sees to it that cost can be reduced in manufacturing. it also takes into
consideration whether men and material are running in full capacity.
Scope
Manufacturing of aluminium. Electrolyte, capacitors and related production activities.
Forming of aluminium foil, job work for sub-contracted items. Rework of capacitors.
25

Objectives
Analyze the work progress.
Prepare material shortage list
Reduced wastage
Attain maximum productivity.
Prepare annual budget based on marketing trends, demand and price.
To reduce wastages as possible
To attain maximum productivity
The work order prepared is analyzed and pending work list is should be given to
prepare the material storage list
Quarterly and monthly budget















26









RESEARCH AND DEVELOPMENT DEPARTMENT











27

RESEARCH AND DEVELOPMENT DEPARTMENT
Research and development department play a crucial role in electronics industry. Innovation
and quality control are the major concern of this department. The department of scientific and
industrial research, ministry of science and technology, government of India has approved the
in-house research and development activities of the company.
Functions
Development high, medium and low voltage forming.
Developing technology for etching of high voltage aluminium foil.
Upgrading manufacturing of electrolyte capacitors.
Developing electrolyte required for manufacturing electrolytic
Forming of aluminium foil
Etched and formed aluminium foils are the major raw materials for the production of
electronic capacitors. The manufactures of electrolytic capacitors have been importing this
item since the technology for etching and forming for the aluminium foil is not available foil
in India. The company for the first time in India developed the technology for forming of
high voltage and low voltage foil in its in house forming plant. The plant was designed and
developed by the engineers of the company and the forming machine is fabricated locally.
Etching project
Etching technology for etching aluminium foil is yet to be established in India. The company
has already developed indigenously the technology for etching of low and medium gain
capacitors.






28










QUALITY ASSURANCE DEPARTMENT










29

QUALITY ASSURANCE DEPARTMENT
The duties of quality assurance department include central examination of raw materials,
components and finished products. All type organization is trying to increase their quality so
that the customers will be loyal to their products and they will purchase the products again
and again and they may also tell others about the products.
If found the quality is good, the components and finished goods conforms to the
predetermined specification the department issues acceptable certificate. For this the
department has qualified and competent staff. The company has strict and unfaultable system
of quality control right from the procurement of raw material to the sale of finished goods,
ensuring that only good quality material is passed to the sale of finished goods, to analyze the
cause of defects whenever they occur. Quality of the product is very important for the
existence of the company. It will increase the goodwill of the company.
Quality refers to the sum of attributes or properties that describes a product. Quality control is
a staff function concerned with prevention defects in manufacturing so that items may be
right at the first time. Inspection is another factor in quality assurance. The inspections are
carried out in three stages:
o Incoming inspection
o Production inspection
o Outgoing inspection
Objectives
Bring down pending work reduces clearances in inspection.
Reduce rejection.
Reduce cost of inspection.
Raw material inspection
The materials which are imported for production are being inspected and the quality is
assured. The materials are accepted only when the quality of different material assured. The
materials are accepted only when the quality of the different materials are assured. Some
require 100% conformance as specified. Those materials do not give 100% conformance are
30

not accepted because it may adversely affect the quality of the finished products. Minor
deviations from the standard are overlooked. After the raw materials are imported it will be
Checked with the companys own standard, sometimes they are also cleared for use if end
products are marketable. This acceptance is called conditional clearance.
Patrol or in-process inspection
In KCCL, the quality assurance continues when the production is in progress. Here the
inspector goes to the plant and check whether the product, after each process, satisfies the
accepted standard. The person assigned for this purpose is named patrols inspector. If there is
any critical problem it will be reported to HOD and action will be taken depending upon the
nature of the defect noticed.
Outgoing inspection
This carried out on the finished goods. This starts after ageing and testing process are done to
the capacitors. Quality controller checks the output by a sample of particular batch under the
standard IS-10673; this is the standard which is used by the government of India for all
electronic equipment. The defects are expressed in percentage level. It will be withdrawn and
further rework will be made. In case of capacitors, the major parameter is the electrical
parameter and is 100% tested by ageing. Other parameter is checked by a subsection of
manufacturing department by method of sampling.
Functions and responsibilities of manager
Responsibility of the overall quality of the product.
Running of the quality control laboratory, solving the technical problems of collection
of raw materials and processing.
Incoming material inspection.
Final inspection and batch release for dispatch.
Authorize product dispatch.
Investigate customer complaints.
Training of the employee in the department.
Suggest process improvements.
Setting department objectives.
Proper sample testing.
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Control of quality records within the department.
Analytical work relating to quality control of the technically specified rubber
produced in the factory.




















32










HUMAN RESOURCE AND DEVELOPMENT DEPARTMENT












33

HUMAN RESOURCE AND DEVELOPMENT DEPARTMENT
The Human Resource of the company are considered most vital asset because it is the people
who make other resources moving. In Keltron, Personnel Department sees to both
administration and personnel function of all the four units. Assistant Manager is the
Personnel and Administration head of the department. The total manpower of the company
can be split up as follows
Executives : 60
Supervisors : 40
Workmen : 251
In Keltron there is a specialized department known as personnel and administration, which
sees both personnel and administrative functions. The employees experience range from 12 to
25 years. The company has a human resource development program whereby training classes
on the job is given
Functions of personnel department
The main functions performed by the personnel and administration department in KCCL are
as follows.
Man power planning.
Recruitment and placement of employees.
Co-ordination and training of employees.
Keeping personnel record of employees.
Arraigning in-house and external training to employees.
Time keeping.
Performance appraisal.
Promotion of employees.
Wage administration.
Administration of standing orders and adopting welfare measures.
Man power planning
For meeting the requirements of employees, management must decide before hand as to what
type of men is to be recruited and in what number they are requires. The first problem is
34

solved by job analysis and the second problem solved is tackled through man power
planning. A proper and systematic man power planning is required for proper forecasting
and planning for future. It should consider developing man power requirements for the whole
organization, to create and evaluate the man power inventory and to develop required talents
among the employees selected for promotions.
Recruitment and placements
As KCCL is a govt.company, requirement of candidates is done through employment
exchanges. For executive posts the company approaches professional and employment
exchanges, Trivandrum and local employment exchanges.
As and when a vacancy arises, personnel and administration department notifies it to
employment exchanges. If suitable candidates are not available with the latter body, they
issue a NAC. Then the personnel department publishes vacancies in leading newspapers.
After receiving the applications from the candidates, the department goes for scrutinizing
them. The company calls the selected candidates for interview. For this the company has a
selection board, represented by the concerned department head, a nominee of the government
of Kerala and the personnel manager. This board conducts interviews and selects suitable
candidates. Then the company gives appointment order to the selected candidates along with
terms and conditions for appointments. If the person is willing to abide by the terms, he is
directed to sign a return one of the copies of the order.
Training
In KCCL internal as well as external training is given to employees. Fresh hands will be
selected as trainees for a period of one year. For existing employees it is conducting refresher
training by way of lectures, work, educational classes, external training etc..
When a person joins the organization he/she will be given induction for a minimum period of
one month after this a person will be given on the job training for a period of one year.
Types of training program in KCCL can be described as:
Induction or orientation training
There are two phases of induction training program. The first phase is generally conducted by
the personnel department. It is concerned with giving the new employee a friendly welcome,
35

briefing him in the matters concerned with the companys background, products, health and
welfare plans etc...
The head of the department under whom he has to works conducts the second phase of
induction program. The employees are given information regarding production, work rules,
working conditions.
Refresher training
On first appointment, employees are initially given on the job training. Due to technological
developments and improves techniques of managements and production the training initially
given will become out of date creating necessity of giving new training. For this regional
workers training education centre officer come to KCCL and given training.
Keeping training records of employees
All the details regarding the training given to employees are recorded in KCCL for future
references. Details such as name of employees, date of birth, qualification, types of training,
department in which he is working, joining date, training period etc are recorded.
Time keeping
Every employee is given a separate card with specific number having four digits. The
workers, employees, supervisors and executives have different serial number. A master roll is
kept by the organization. Electronic punching system in KCCL is used to record the time of
entry and exit of each employee. Maximum half an hour late is permitted to every employee.
General shifts
There are three shifts. They are:
First shift 7.00 am to 3.00 am
Second shift 3.00 pm to 11. Pm
Third shift -11.00 pm to 7.00 am
Performance appraisal
Performance appraisal is a systematic evaluation of an individuals performance in the job
and his potential for development. Appraisal is the evaluation of work quality. It is systematic
36

and objective way of judging the relative work or ability of an employee in performing his
job. Ordinarily the evaluation is done by immediate Supervisors. So it is a technique used to
know the work of an employee qualitatively and quantitatively on the job in comparison with
other employees. It is one of the oldest and usual practices of management.
In KCCL at the end of training period the trainees are observed according to his performance
during the training period. The personnel department provides performance forms for self
appraisal, executive appraisal and annual performance appraisal. Self appraisal form is for
self assessment of the employees. The other two are filled by the concerned department
decides whether the probation period is to be extended nor not. On the basis of his
performance during the probation period, the department then decides about the regular
placement of the employee.
Wages and Salary
The three categories of employee
Senior worker will get a total salary at around Rs.12, 000/-, while a newly inducted workman
will get a minimum remuneration of rs. 7000/-. Similarly supervisor category will get a salary
around 14,000 /- salary for executive and supervisors will be based on Kerala government
norms.
Allowance and Benefits
House rent allowances
Conveyances allowances
Shift allowances
Medical allowances
Welfare Measures
Housing loans
Reading rooms
Facility for sitting
First aid equipment
Canteen
Library
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Medical Re-Imbursements
All employees are eligible for medical reimbursement scheme. This scheme also extends to
family members wholly depends on this employee. The amount of benefits is given on the
basis of service employees.
Provident Fund
Provident fund is fund that provides for future. This fund is credited by the amount deducted
from the salary of the employee every month to which the management adds its own share at
a certain rate. When the employee retires from his service, he receives the full amount
standing in the credit of his fund which includes periodical interest added.
Trade Union
CITU
KEO
DKEU
Future Plans
Provide more training facilities.
Planning better performance appraisal programme.
Giving more employment opportunities to local people.
Other Plans
The company had initiated various activities towards cost reduction through value
engineering, Internal R&D efforts etc.
The company has received an amount of rupees 175 lakhs from government of Kerala for
settlement of dues .
Leave Rules
Application for leave
All application for leave shall be in the leave form and should be applied sufficiently in
advance to the sanctioning authority with the leave card/which shall/in be indicated the latest
38

leave position standing to the employees credit. The sanctioning authority will forward such
leave applications to the time office/administration department.
Sanctioning Authority
The concerned departmental heads or in his absence next officer in charge will be the
sanctioning authority
Types of leave
Casual Leave

1 .The maximum number of casual leaves admissible to an employee in a calendar year will
be 12 days.
2. Trainees are eligible for 12 days casual leave during one year training period. Employees
appointed on trial basis for 3 months are eligible for three days casual leave during the trial
period.
3. Casual leave may be combined with Sundays and other holidays provided the maximum
period of casual leave Circular No. DP/022/92 dated 12.08.1992 shall not exceed 4 days at a
time.

Sick Leave

1. All permanent employees shall be eligible for 10 days sick leave with pay in a calendar
year.
2. Employees appointed on trial basis for 3 months are eligible for 2 days sick leave during
the trial period.









39

















MARKETING DEPARTMENT










40

MARKETING DEPARTMENT
Marketing is one of the most important operative functions of management. The success of
the company depends on the acceptability of its production in the market. The holding
company KSEDC Trivandrum is in charge of the marketing activities.
Marketing process includes listing the price of the production, receipt and acceptance of
orders, processing of orders and dispatching of items to the customers. Feedback from the
customers is considered as the last step in marketing process
Marketing director has an overall control over the department and keeps track of the current
demand and sales of the product. He also anticipates the future demand and forecast the sales.
The MD is associated by a marketing manager and general manager. These forecasts are
being done based on several factors like the overall market conditions for the product and
price of the product.
KCCL is the best and leading manufacturing of aluminium electrolyte capacitors in India.
KCCL has branches all over India and have their own dealers. Since capacitors are not used
as end products, there is no much directing marketing for the products are used. These
capacitors are used in heavy electronic machine to store electric charges. Hence promotion
practices like advertising are not strictly followed.
KCCL follows two methods of distribute on channel or distribution network. They are direct
distribution network and dealer network. By direct distribution network, the capacitors are
directly distributed to the customers as per requirements without the help of any
intermediaries. In a dealer network, there will be a dealer who acts as an intermediary
between the company and its customers and helps in marketing the product.
IN KCCL , the marketing department acts as a guide, and lead the companys other
department in developing, producing, fulfilling and servicing products and services for their
customers. The goals and guide lines set by the marketing department are in line with the
vision mission of the company.



41

ELEMENTS OF MARKETING MIX
Product
Marketing department ensures that the product is of the same grade as specified by the
customers and meets the quality standards. Currently 7 main types of aluminium electrolytic
capacitors are available.
Price
The prices are based on pricing policies taken by the company based on the marketing
conditions. The pricing decisions are taken by the marketing department after studying the
marketing conditions and also comparing the competitors price.
Promotion
It deals with advertising and sales promotions for the product. Since the company goes for
industrial marketing department, mainly on electronic segment, it concentrates on direct
marketing as a means of promotion which enjoys the advantages of two way communication.
KCCL has corporate marketing offices in Trivandrum, Kannur and has branch offices in
Mumbai, Ahmadabad, Newdelhi, Kolkata, Chennai, Bangalore and Hyderabad. And they
have agents in most of places in India.
Packaging
Radial and axial type capacitors are generally bulk packed in thick polythene bags which are
heat sealed to avoid direct atmospheric exposure. Individual primary packing in polythene
bag is provided with label which carries outgoing Inspection Report No., Capacitor Series,
Capacitance Value, Working Voltage, Capacitor Tolerance and Capacitor Size, Capacitor
Part No., Temperature, Quantity and Date of Packing. Sealed bags are then packed for
shipment.
Place
In this industry, the place is not that much important. The production plant is setup in
Kalliassery, a rural area in Kannur.
KCCL carries out sales through
Authorized dealers
42

Direct sales
All over India KCCL have dealer network.
The company sells the product to authorized dealers who sell it to the retailers which are sold
by them to ultimate customers. Dealers are given discounts and the company offers additional
discounts in case of quick payment and to regular customers.
Company sales target sales for the dealers and if they succeed in meeting the fixed target they
are offered commission at the end of the year.
KCCL is also engaged in direct sales to the customers in case its a bulk order.
Competitors
The major competitors in India for aluminium electrolytic capacitors are Punsumi India Ltd.,
Uptron, Webelson, Philips, Incap, Elcap, Elnet, etc. Now the company has to compete with
international brands like Rubicon, Nichicon, Panasonic, Samsung, Elna, etc.
Agents
Agents are appointed by KCCL because it is not possible for the company to cater to the
needs of all the customers who are situated at various cities of which are far from their
branches. Agents are appointed as per the recommendations made by branch offices to the
management.
Cash Discount
For quick and better cash flow, cash discounted at 3% may be offered to the customers for
payment by DD/ Local Cheque against delivery/receipt of the materials. The OEMs/ dealers,
whose earlier bills are outstanding for more than 75 days from the dealers of Invoice, will not
be eligible for cash discounts.
Responsibilities of Marketing Manager
Acceptance of customer complaints and suggestions.
Creations of order files.
Evaluating customer satisfaction.

43

Future Plans
Online customer feedback systems are going to be installed soon.
Marketing research are planned to conduct.
Pricing of products are going to be revised soon.
Business Channel
The distribution channel used by KCCL is not intensive. KCCL provides direct sales to
Original Equipment Manufacturers. They also use authorised dealers to reach to the
customers. KCCL provides no sales to
Unauthorised dealers; however orders from non-dealers can be expected for special items
with approval from the Head Office. There are branches in major cities of India to ensure that
there arises no competition between the company and authorised dealers in negotiating
business with the Original Equipment Manufacturers.
Pricing & Discount Structure
Special prices will be considered for bulk orders from dealers, for encouraging dealers to do
more business. No credit is given to new dealers and whenever credit needs to be extended
due to valid reasons, credit worthiness and standing in the industry market of customers
would be ascertained before continuing credit supply. Maximum credit policy for existing
dealers of long associations is 45 days from the date of invoice. For better cash flow, cash
discount at 3% on basic price is offered to customers for payment by DD.
Promotion Policy
Dealers are allowed to release advertisement in the newspaper and other media on shared
basis. The Company would share 50% of the advertisement cost, subject to a maximum of
0.5% of the basic turnover is achieved by the dealer in the financial year. The dealer and the
branch has to inform the advertisement plan in advance to Head of the Department
(Marketing) indicating expected turnover, advertisement cost etc and obtain prior approval
before release of advertisement.


44

TRADING POLICIES AND PROCEDURES
Purchase Powers

1 All new product proposals and entirely new sources for permanent trading shall be
approved by the Managing Director.

2. The Branch purchase committee shall have the powers up to Rs. 2 lakhs and Branch
Manager as Chairman of the committee shall approve the same. The Central purchase
committee shall have the powers up to Rs. 10 lakhs and Trading Head as Chairman shall
approve the same. Corporate marketing Head (not below the rank of Executive Director) shall
have powers to effect purchases up to a value of Rs. 25 lakhs and Managing Directors
approval shall be required for purchases beyond Rs. 25 lakhs

Sales Guidelines

1. The selling price shall generally be fixed based on the market forces. Even though the
lowest price induces customers and highest price increases the profit both may not be the
right price since low price may indicate inferior quality of product especially for consumer
durables and highest price may discard our product especially in the case of public tenders.
The selling price is therefore to be fixed in such a way that it will bring long term benefits to
the organization.

2. Incentives and other discounts can be offered to our dealers / agents. Any additional
incentive other than the normal discount to dealers shall be given only after the prior approval
of the Corporate Office.
3. Sales promotion is one of the major areas for success of business. Suitable sales promotion
schemes can be worked out by the branches and get approved from corporate office before
implementation.




45

Problem Identification
In its early days, the company produced electronic devices such as television, radio and other
consumer electronic goods. On this end, the company was a failure to provide its quality
consumer goods with competing rates and hence its products could not compete in
international market. So its production has stopped.
Indian manufacturers are feeling heat of competition from Chinese makers not only in
international market but also in the domestic market as well. Due to import of some of the
raw material and recent Rupee depreciation, for the Indian manufacturers (especially for
small and medium scale manufacturers) manufacturing of the capacitors becomes costly and
as a result they are not able to compete with the China made capacitors in terms of price.
Keltron has the largest market share for producing axial type of capacitors. But it has higher
price compared to other competitors. Especially competitors products are available for half
of the price. It is a threat to Keltron. Also keltron is not using any type of promotional
activities. Higher competition is the major threat faced by the keltron. In order to gain market
share and also to maintain market share organization has to take care of following things.
Make the product available in lower rate.
Organization can use advertising, consumer sales promotion, direct marketing to
promote its product. Also it helps to create brand awareness.
Participate in seminars.
Provide customer feedback system.
Give discounts for customer who purchase for bulk.







46










FINANCE DEPARTMENT











47

FINANCE DEPARTMENT
KCCL is a public sector company. Company paid dividend to its shareholders from the time
of its incorporation till 1992. In the subsequent years, there was a lack of orders with drastic
reduction in price which brought about a loss of Rs.247.82 lacks by the end of the 1996. So
they were not able to pay the dividend. There are around 1305 shareholders for KCCL.
Financial management is concerned with planning, organizing, directing and controlling
financial activities of an organization. It relates with proper management of fund.
Functions of Financial Department
Preparations and maintenance of accounts related documents and records.
Recording of bank transactions like cash withdrawals, maintenance of details check
payment etc.
Maintenance of commercial accounts, income tax.
Payment of company bill such as telephone, electricity and monthly returns of
professional tax, rules tax and VAT and CST.
Keeping record of all cash inflows and outflows.
Preparing of profit and loss account and balance sheet every month and consolidate
final accounts at the end.
Preparation of annual budget and allocation of funds to various other departments.
Conducting daily audit of accounts on a daily biases.
To identify the financial needs and determine the resources and processing of funds.
Responsibilities of Financial Manager
Right investment at right place and time.
Financial control all over the department.
Planning and budgeting.
To ascertain the financial position of the concern.
T o provide the control of the assets and liabilities.
To provide the information to tax authorities like sales tax, income tax, and central
exercise etc.
Financial decision making.
Controlling of various management function like production, sales, distribution, etc.
48

To formulate strategies, policies etc.
The major shareholders of the company includes
Kerala state electronic development corporation limited.
Industrial development bank of India
Industrial finance corporation of India
Icici bank
Lic corporation of India
General insurance corporation limited
Public
Kerala state electronic corporation limited constitutes 71.57% of share with total number of
shares as 17, 29,930. IDBI has total of 14, 14500 shares. Industrial Finance Corporation of
India has around 60000 shares.
Finance department of the company maintains different books of accounts like cash books,
sale book, ledger etc, to store the financial data of the company. All the transactions are first
recorded in the order in which they take place in a book called journal which is also called
book of prime entry.
Oversees manufactures are offering capacitors at cheap prices because of economies of scale
and availability of finance at very attractive interests rate. Customs duty imported capacitors
are nil. This lead to severe competition in price reduction and compelled the company to
retain its position as a leading manufacturer of aluminium electrolyte capacitors in the
country. Capital expenditure of the company is determined on the basis of
Material consumed
Personnel cost
Selling and distribution expenses
Other operating expenditure
Miscellaneous expenditure
Auditing
Auditing is the process of checking and verifying the financial statements. It is an essential
part of an accounting work. The company does the three kinds of auditing. They are internal
audit, statutory audit and AGC audit. Statutory auditor is appointed by the central
49

government and audits the accounts and records of the company. After completing the audit,
copy of the report is sent to the accountant general and it is also presented
Before shareholders. If there are any comments from the auditors, shareholders, the company
should provide sufficient explanation to these comments.
Sources of Finance
Every company should maintain reliable sources of finance. Such source is continuous
source.
The main source of finance in KCCL is:
Capital
Shareholders funds
Bank loan
Books Kept By the Firm
Cash book
Bank book
Journal
General ledger
Asset register
Purchase journal
Sales day book
Salary register
Payment register
Subsidiary registers like TA, advance, salary advance, medical advance, festival
advance, medical reimbursement.
Keeping Account Records
Files maintained in the finance and accounts department are kept in unlocked shelves,
subsidiary registers, ledger, books, salary sheets are under the custody of concerned
personnel, the asset register is kept with the HOD bank, cash books, journal books and other
subsidiary registers of previous year are kept in the record room adjustment to the accounts
50

department. The vouchers pertaining to 8 years are kept in boxes mentioning names of the
vouchers and years on the boxes in the record room.
Accounting Policies
Following are the various types of accounting policies of KCCL.
Revenue Recognition
The accounts are prepared under the historical cost basis of accounting and evaluating it on a
going concern basis, with revenue recognized and expenses accounted for on the basis of
their accrual.
Convention
The final statements are prepared under the historical cost concentration in accordance with
applicable accounting standards that was relevant to presentation requirement of the
companies act 1956.
Gratuity
Gratuity liability and leave is accounted on the basis of actuarial valuation.
Excise duty
Excise duty on manufactured goods in accounted for us and when goods are dispatched and
no provisions is made in the respect of duty due on goods manufactured, but not dispatched
nor included in valuation of stock.
Inventory System
Work in progress is valued at the cost and stock of raw materials, chemicals, fuel and stores
are valued at weighted average costs on monthly basis.
The other accounting policies of KCCL are employee benefits, foreign currency transaction,
deferred tax, provision, government grant etc.
The financial statements have been prepared in conformity with the generally accepted
accounting principles.

51

Banking Procedure
Bankers and types of bank account
NAME OF BANK TYPES OF ACCOUNT AMOUNT ( in lakhs)
State bank of India, kannur Overdraft A/C 675
Catholic Syrian bank,
kannur
Overdraft A/C 225
Union bank of India Overdraft A/C 23
80% of the raw materials for production of capacitors are imported.
Name of bank Credit limit
State bank of india , Kannur 900
Catholic Syrian bank, Kannur 175














52












PRODUCTION DEPARTMENT










53

PRODUCTION DEPARMENT
Production is the process of conversion of a set of inputs into a specified set of output,
either in the form of finished goods or services, meeting the quality and thus achieving
the quality policy of an enterprise. The inputs are men, material, capital employed,
information and energy. Thus production or the manufacturing is the business activity of
the industrial unit on which the activities of other department work upon. The main aim
of this business system is to produce the end products either in the form of goods and
services economically, utilizing the available resources, and thus satisfying the customers
for which they are meant. This process starts when once the department receives the order
of production.
According to the nature of the market, the marketing department of KCCL analysis the
future demand for the capacitors and takes decision along with the manager of planning &
control and the production department. The demand for the capacitors wont be the same
through the year. It may differ monthly. So the planning department divide the production
schedule into various monthly schedules. The work is issued to meet the specific demand
of the customers. A batch production order is issued for keeping the goods in stores
pending orders or when a number of customer order for the same product. The machinery
used for production purpose is fully automated.
Functions of Production Manager
Increase capacity utilization.
Produce based on the information from planning department
Quality and quantity of production.
Monitor effluent treatment
Control of entire workforce in the department.
Achieving department objectives.
Innovation of new methods to reduce and waste and increase productivity.
PRODUCTION PROCESS
Stitching and Rolling
Stitching is the process by which thin needle are stitched to the anode and cathode foil. The
stitching will be of star formation. This is because the star formation will increase the surface
54

area rather than normal or circular stitching. Now these two needles act as the terminals in the
capacitor.
While rolling, the anode foil and the cathode foil are separated with a special thick paper and
rolled according to the specification needed for different capacitors. The length and the
breadth of the foils to be rolled will be different and this defines the character of the
capacitors, i.e., for higher volt and higher temperature capacitors the foil will be broader and
longer than that of low volt and temperature capacitors.
Impregnation
The rolled up form will not have any value or specifications. For this stitched and rolled
capacitors are kept in a solution which is called electrolyte. This process of keeping the
capacitors dipped in the electrolyte is to get the desired value. The time required for
impregnation defines the voltage of the capacitor. Usually for low voltage capacitor it takes
around one hour and for higher voltage capacitor it will take at least two hours.
Sealing, Sleaving Hot Shrinking and Assembling
After impregnation, the above semi finished goods are sent for sealing and sleaving. The
impregnated capacitors will be manually put into an aluminium can with one end open. This
open end will be closed using a rubber bunk. The rubber bunk will be having two tiny pores
through which the two terminals come out. This entire process is called sealing.
After sealing the capacitors are sent for hot shrinking. The printed colour seal is rolled over it
along with temperature so that the sleeve remains stuck over and around the can of the
capacitor.
Ageing and Testing
Ageing is the testing process for checking the layer content of aluminium oxide in a
capacitor. There might be chances of loose layers of oxide in a capacitor, ageing helps to
rectify the same. Testing is the process of checking the capacitor with respect to the following
parameters:-
Capacitance Value
Leakage current
Description factors.
55

For knowing the above parameters in each capacitor, KCCL is having a fully automatic
machine. If any of the capacitor fails to fulfil any of the parameter standards then it is sent
back for identification.
Waste Management in Kccl
In KCCL overall percentage of wastage in production is just 2%. To bring the waste to
minimum, KCCL has formed a separate material review board, under the chairmanship of
production manager and one representative from research and development, Quality
Assurance and planning Departments. The main aim of this MRB is to avoid scrap by
reviewing the rejected capacitors through various developments. The board may recommend
further process to make those rejected into acceptable products. But still there may be some,
which cant be reprocessed and they are rejected as scraps.
Future Plans
Production department is planning to increase the production and replace old machinery with
new one, and also planning to decrease the wastage and increase the productivity and quality.
Problem identified through interview with manager of the production department
1) Machine breakdown.
2) No effective use of resources and time.
3) Job rotation is not effective.
4) No standard procedure.
Solutions
1) Get new machines.
2) Give training in other areas also.
3) Follow a standard procedure.




56











ELECTRONIC DATA PROCESSING DEPARTMENT











57

ELECTRONIC DATA PROCESSING DEPARTMENT
Computer has become an essential part of organized information processing because of the
technology and the value of data to be processed and the need for getting processed
information quickly. The information processing is a major society activity. Computer data
processing has prevailed in areas like finance, personnel, marketing etc.
In KCCL, department was started on 1988 with self entered computer. In 1994, the company
installed local area network (LAN) WITH 15 TERMINALS. The management plan is to
install a separate system to each department by connecting it to central EDP unit. Through
EDP department, The Company has achieved lots of new facilities and scarring time with the
help of new method, keeping goods in stores and so on. This department can process various
types of information such as:
Material requirements
Personnel information system
Raw material inventory
Finance
Finished goods and dispatch
Functions of EDP
Data acquisition
Data processing
MIS
Activities
Maintaining the computer in good working condition
Facilities data processing, implementation and data monitoring of data.
Software support to the user by assisting, training and troubleshooting while
application software is note in use.
Materials Department
Report for store and finished goods.
slip packing, Slip invoice

58

Daily sales report, daily branch wise cumulative sales and report for stores.
Monthly stock statement
Yearly raw material cost ledger, yearly or quarterly consumption statement
Planning Department
Monthly, quarterly, half yearly, annual production plans and materials requirements for
relevant plans are maintained by EDP department.
Marketing Department
Order processing
Available quantity
Balance enquiry
Number of orders dispatched and pending orders
Stock and sales statements
Finance Department
Report generated by EDP for finance department includes cash book, book records, and
journal, purchase journal, trial balance etc. It also prepare important documents falling under
management information system level like profit and loss account, balance sheet, cash flow
management, customer wise sales turnover, customer wise ABC analysis etc.
Personnel Department
Details individual information
List of individual to whom increment/promotion is due, company wise, department
wise etc.
Payroll (details of basic pay )





59









FINDINGS












60

FINDINGS
Presence of good industrial relation with the local unicorns and there is greater co-
operation between management and employee.
Wage system is fair and workers are happy with their wages.
Insufficient allocation of funds for promotional activities.
A good coordination exists between different departments.
The organizational believes that, its strength is its highly qualified employees and
maintains a good relationship with its employees.
Keltron produce high quality products but comparatively high price than its
competitors.
As keltron imports raw materials imports cost is high and it leads to loss.
Globalization had bad effect on the company.
Company website has little information regarding the various functional
areas/departments.












61










SUGGESTIONS











62

SUGGESTIONS
New areas of application of capacitors have to be explored.
The company may face severe competition in the market from foreign companies.
Hence it should develop new strategy not only to increase the sales in India but also
look for exports and to produce the products at cheaper rates.
The company should allocate sufficient funds for the promotional activities.
The plant is running in full capacity which leads to higher wear and tear and
maintenance costs so company should take better alternative strategies, company can
go for expansion strategy.
It is better for the company to develop new software which can be connected the web
so that the customers can directly make orders.
The company can increase the productivity by replacing the old machinery.
Reduction of costs is necessary for the company to lead in the competitive market













63










CONCLUSION











64

CONCLUSION
Keltron is one of the leading capacitors manufacturing companies in India.
It is an ISO 9001 certified functioning company. It has super research and design section that
help in providing capacitors according to the needs of the customers.
The organizational study conducted at keltron enabled me to get hands on experience of the
overall functioning of the company and to translate academic knowledge into practical
experience. Face to face interviews with KCCL officials helped to understand the vital role
played by each department and their functioning. This industry is capable of providing
needed employment in many Areas.














65









REFERENCES











66

REFERENCES
Websites
www.keltron.org.com
www.google.com
www.wikipedia.com
Manuals
1. Annual report of keltron
2. Catalogues














.
67











ANNEXURE