INTERNSHIP REPORT OF KERALA AGRO MACHINERY

CORPORATION LIMITED [KAMCO],

MALA

Submitted by:
KESIYA MARY
Reg. No: 37119333

Under the Guidance of

MR. GIRISH S PATHY
Assistant Professor

Submitted in partial fulfilment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

To the Cochin University of Science & Technology

BHAVAN’S ROYAL INSTITUTE OF MANAGEMENT

Thiruvamkulam
Year - 2020
 DECLARATION

I KESIYA MARY 2nd Semester MBA student of BHAVAN’S ROYAL INSTITUTE OF

MANAGEMENT, hereby declare that this INTERNSHIP REPORT AT KERALA

AGRO MACHINERY CORPORATIONS LIMITED, MALA under the guidance of

Prof.GIRISH S PATHY in partial fulfilment of the requirement for the award of the degree

of Master of Business Administration is a Bonafede study done by me. I am also declaring

that this report has not been previously formed the basis of award of any Degree, Diploma,

Associate ship, Fellowship or any other similar title of this or any other university or

institution.

Thiruvamkulam KESIYA MARY

Date:
 ACKNOWLEDGEMENT

At the outset I would like to place on my gratitude to DR. RAJAGOPALA NAIR, The

Principal MBA, Bhavan’s Royal Institute of Management, and my internal guide MR.

GIRISH S PATHY, Bhavan’s Royal Institute of Management for giving me an opportunity

to accomplish this study. I would like to express my sincere thanks to all staff of KAMCO

LTD., MALA for their sincere co-operation and the timely help for the execution of this

work

I thank almighty, my family and friends for their support and encouragement during the

internship.

KESIYA MARY

Bhavan’s Royal Institute of Management

MBA [2019-2021]
CHAPTER CONTENTS
PAGE NO

1 INTRODUCTION

2 INDUSTRY PROFILE

3 COMPANY PROFILE

4 SUGGESTION AND

RECOMMENTATION

5 CONCLUSION
 CHAPTER -1

INTRODUCTION
 INTRODUCTION

The internship report is about Kerala Agro Machinery Corporation Limited, At MALA. The

company is dealing with manufacturing of agricultural machines like Power tillers and

Tractors etc. KAMCO has been awarded ISO 9001: 2008 certification for its management

system. Subsequently KAMCO Company became a separate Govt. of Kerala undertaking in

1986. KAMCO is a leading manufacturer for quality agricultural machines in India. The main

positive aspect of the company is that it maintains a better relationship between the

management and employees. For understanding more about the organisation, I choose

Production Department.

NEED & SIGINIFICANT OF THE STUDY

 Through this study I want to understand about the company and also about its work

culture.

 For more understanding about departments especially in Production Department.

 For understanding about how individuals construct organizational structures, process,

and practices.
 OBJECTIVE OF THE STUDY

The primary objective is to study about the overall details of the company and agro

machinery industry such as history of the company, how we move to the future, what are the

strategies adopted by the company such as pricing, business, management of the company.

SCOPE OF THE STUDY

The study is intended to provide managerial insight to a management student. If will enable

people to take up responsibilities of a manager at ease and provide him more confidence. The

scope of the study is confined to a few selected departments and their functions. Through this

study they get more Ideas about how business executives operate in their work settings.

METHODOLOGY

The study employed of observation to collect the required data for completion of this report.

Interview is used for this purpose.

Collection of data
The area of data collection is from ‘KAMCO’

Source of data

Primary data &Secondary data

1. Primary data

Primary data which are collected by the researcher himself. For this purpose, I

chose interview.

2. Secondary data

This data

was collected from various books, annual reports, company website etc…
 CHAPTER-2

INDUSTRY PROFILE
 BRIEF HISTORY OF INDUSTRY

Agriculture is very important sector of the Indian economy. It contributes sizable

to the domestic products as also is export. More than two tired of the work forces in

agricultural products, agro based industries etc.

India being an agricultural based economy provides lively hoods to more than

75 % of the population major part of over income that is about 71% earned from agricultural

activities. Inspire of the very dominant space of agriculture, it is a depressed industry become

of the low productivity in agriculture, small size of the farms, finance and defective

equipment’s. One government believes that only a large land holding was the most efficient

and they could use the latest technique in the cultivation. However, in recent years the

emphasis has been shifted from large land holdings to small land holdings.

After achieving independence in 1947, India found herself to be badly lacking the

means to meet the food demand for the vast population. The existing agricultural scenario

presented to dismal picture tradition farming method, low yielding seeds and primitive

implements wholly unsuited to large scale cultivation the only solution laying in mechanized

farming which could turn around the virtual fortune of India. In order to achieve these

objectives, indigenous agro missionary units were to be set up. Without restoring to imports

which undoubtedly passed a heavy burden on the nation needs. Agriculture is a way of life, a
tradition that for century has shaped the thought, the outlook, the culture and the economic

life of people. Moreover, two hundred million farmers and farm workers have been the

backbone if Indian agriculture. In the beginning of the farmer adopted ancient method the

entire process

that is from the sowing the seed till harvesting will all done by the farmers itself. It was really

time consuming one which required lot labour work. The cost of production was very high

and the benefits are not promising.

The Indian agriculture industry is on the ring of a revolution that will modernize the

entire food chain of the total production in India is likely double in the next ten years.

Excellent export prospect, completive pricing of agricultural products and standards and that

one internationally comparable has created trade opportunities in the agro industry. This is a

further enabled the Indian agriculture industry portal to the serve as a means by which

exporter and importer of India and abroad can fulfil their requirements.

The Indian agro industry revolution bring along the opportunity of profitable

investment. The company provides platform with agro related catalogue, trade, exports and

imports directories that help to make production. Presently lot of agricultural equipment’s is

produced by companies.

In the view of the spectacular success in the production and productivity achieved

in developed countries through mechanization of agriculture, it was being agreed that India

also should fall in line with these countries. Though India was backward in the use of

machineries for agriculture operations, yet in the past few years there has been an increase in

the case of modern implements. The phase of mechanization of farming in the country was

low during 195O’s. Thereafter particularly since the mid 196O’s with the coming of the new
agricultural technology, this has increased. An associated effect of the new agricultural

practices. The preparation of land, the sowing of seeds, the watering of land, the control of

seeds, the use of pesticides, the quick harvesting of crops etc, are now done more

scientifically than even before.

WORLD SCENERIO

The backbone of Indian economy is agriculture. About 70% of population depends upon

agricultural sector for their lively hood. Many countries are now available to produce excess

food grains, is mainly because, they use high yielding variety of seeds and modern

agricultural machineries with a view to increase their productivity and they are able to

produce excess food grains in the present scenario.

After the industrial revolution even the agriculture sector all over the world

witnessed a drastic change. A no: of revolution occurred during the 19th century. Higher

productivity and greater output are the two major contributions in farm mechanization. Tillers

form an integral part of farm mechanization and have a crucial role to play in increasing

agricultural productivity. Tiller is a highly versatile piece of machinery having a multitude of

uses, used in agricultural both for land reclamation and for carrying out various crop

cultivation and also employed for carrying out various operations connected with raising the

crops by attaching suitable implements and to provide the necessary energy for performing

various crop production operations involved in the production of agricultural crops.

 Tillers are capital intensive, labour displaying used as a mode of transport, in

electricity generation, in construction industry and for haulage operation. It has now become

an integral part of farm structure. The application of tiller for agricultural activities which

swept Indian during the last twenty years have erased the problem of farmers. Farm

mechanization program in India aims to integrate the use of available human and animal farm

power with mechanical sources of power for increasing the productivity.

A rapid major change in the economy was noticed by the general introduction of power-

driven machineries. The entry of engineering technologies in agricultural sector for the

purpose of large production of crops using technological know-how, Kerala Agro Machinery

Corporation Limited is the leading company in India trying for establishing engineering green

revolution in India.

INDIAN SCENERIO

The agriculture industry is on the brink of a revolution that will modernize the entire food

chain as the total food production in India is likely to double in the excellent export

prospects, competitive pricing of agricultural products and standards that are internationally

comparable has created trade opportunities in the agro industry. This further has enabled the

Indian agricultural industry ported to serve as a means by which every export and import of

India and abroad, can fulfil. This Indian agro industry revolution brings along the

opportunities of profitable investment in agriculture industry. The company provides b2B

platform with agro related catalogue, trade exporters and importers directory etc. that help to

make a way to production.

 India being an agricultural based economy provides lively hood to more

than 75% of the population. Major portion of our income that is, about 70% is earned from

agriculture, it is depressed industry because of the low productivity, in agriculture small size

of farms, finance and defective equipment.

After achieving her Independence in 1947, India found herself to be badly lacking the means

to meet the food demands of her vast population. The existing agriculture scenario presented

a dismal picture traditional farming method, low yielding seeds and primitive implements

wholly unsuited to large scale cultivation. The only solution lay in mechanized farming

which could turn around the virtual fortune of India. In order to achieve this objective,

indigenous agro machinery units were to be set up. Without restoring to imports which

undoubtedly passed a heavy burden on the nations need.

Agriculture is way of life, a tradition that for centuries has shaped the thought, the

outlook, the culture and the economic life of people. Moreover, 200 million farmers and farm

workers have been the backbone of India’s agriculture. In the beginning, the farmers adopted

ancient method. The entire process that is from the sowing the seed till harvesting were all

done by the farmers itself. It was really time consuming one which required lot of labour

work. The cost of production was very high and the benefits are not promising.

STATE SCENERIO
 Kerala Agro Machinery Corporation Ltd., Government of Kerala Undertaking was

formed with the intention of manufacturing Power Tiller operated by Diesel Engine. The

company came into existence in Athani in Ernakulam District in 1973 when it started

assembling Power Tiller under Technical collaboration from M/s Kubota Ltd., Japan. The

product is now made in India and is suitably designed to meet the Indian Conditions. There

are more than 1.5 lakh of KAMCO Power Tiller operating in various states in India.

Transport Corporation of India Ltd. has been associated with KAMCO for about

25 years and transports material to all parts of the country. The machines have to move direct

to the concerned destinations in the same truck. It is here that TCI plays a major role in the

movement of the machine and also ensures availability of spare parts with all the dealers. An

endorsement of excellent service from TCI has come by way of certificate of appreciation

from KAMCO. Mr Sarvjeet Shukla [Controlling Manager – Ernakulam] is managing the

relationship and keeping a watchful eye on service level for the customer.

KAMCO Kubota combine Harvester and KAMCO Kukuje Paddy Trans

planter are the latest introduction in the country from KAMCO. The trans planter takes away

the burden of dreary manual labour of transplanting the seedlings thus taking away the human

fatigue in the transplanting operation.

 KAMCO has got 4 Assembling Units located at Athani and Kalamassery in

Ernakulam district, Kanjikode in Palakkad district and Mala in Thrissur district of Kerala

State. Provides direct employment to approx.600 persons in its various units. It will be

endeavour of TCI to continuously enhance operational efficiency and value add its services to

strengthen the professional bond with KAMCO.

TOP AGRICULTURAL MACHINE MANUFACTURING COMPANIES ARE:

 John Deere & Co

 Agco Corporation

 Kubota Corporation

 SDF Group

 International Tractors Ltd.

 Valmont Industries, Inc

 Mahindra & Mahindra

 China National Machinery Industry

 ALAMO GROUP

 ISEKI & CO, LTD.

 CHAPTER-3

COMPANY PROFILE
 BRIEF HISTORY OF THE COMPANY

Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in

the year 1973 as a wholly owned subsidiary at Kerala Agro Industries Corporation Ltd.

(KAIC) Trivandrum, for manufacture of agriculture machinery especially power tiller and

diesel engines. Subsequently KAMCO become separate government of Kerala undertaking in

1986.

The objective of company is to manufacture in India, either in collaboration

with or otherwise or import and trade agriculture machinery like tractors, power tiller, power

ripper, combine harvester, transplanted diesel engines, pump set, implement accessories and

spare there to. The objectives also include establishment of engineering workshop repair shop

to undertake repair and servicing of agriculture machinery or other machinery, equipment,

implements.

Assembly unit was established in 1970 at Athani by M/S Kerala agro Industries

Corporation for the assembly of Kubota power tiller in technical collaboration with M/S

Kubota Ltd. Japan, the world leading manufacturer of power tillers and other agricultural

machinery. One of the collaborations KAMCO manufactures power tiller with their own

facilities.
 KAMCOs manufacturing facilities include special purpose machines, especially build

general purpose and imported machines. The inspection facilities include modern inspection

and testing equipment KAMCO have their own metrology, collaboration and machine test

lab. KAMCO power tiller have become the most sought-after power tiller in India.

At present, KAMCO has five units located at Athani and Kalamassery in

Ernakulum District, at Kanjikode in Palakkad District, at Mala in Trissur dist. and at

Valiyavelicham in Kannur District. With the present work force KAMCO can produce 8400

Power Tillers & 1200 Power Reapers per annum.

HISTORY

The growth of agriculture in the country trigged the need for indigenous agricultural

machines to replace the use of traditional and primitive farming methods. Mechanical

farming in small and medium agricultural fields required agro machinery units. KAMCO

introduced the concept of mechanical farming among the small marginal farmers current

product range includes tiller, tractor, reaper, garden tiller, power welder and diesel engine.

Company is headed by a talented pool of professionals. KAMCO product remains NO: 1

quality in the market for over the three decades.

KAMCO Kalamassey unit was purchased outright from SIDCO during 1990 and converted

as viable diesel engine unit KAMCO absorbed the workers of that sick unit as permanent
employees. As the expansion activity, a new modern compact unit for manufacturing power

tiller was put up at Kanjikode, Palakkad district for a cost of 4.3 core during the beginning of

1995 as a part of diversification activity, the company developed a compact small harvesting

machines “KAMCO POWER REAPER” and its production is carried out at Mala unit in

Trissur district. The project cost of the unit was 4.28 core.

On 27th June 2010, KAMCO open another unit for production of tractor. The unit was

inaugurated by EX former chief minister of Kerala. Sri VS Achuthananthan. KAMCO is

synonymous with service to the small and marginal farmers of the country. KAMCO through

their precision and quality revolution the small and marginal holding throughout the country.

Today KAMCO power tiller in India enjoying over 50% of the market share at national level.

The main market for the power tiller is at West Bengal, Assam, Tripura, Meghalaya and

Manipur. As in previous year too, the company recorded anal time higher in production the

year 1998 was the silver jubilee year of KAMCO products in India and abroad.

OBJECTIVES OF KAMCO

The objectives of the company are to manufacture in India, either in collaboration with

or otherwise or import and trade agricultural machinery like tractors, power tillers, power
reapers, combined harvesters, transplanted diesel engines pump sets etc. Make agricultural

tools available to small scale and medium scale farmers in low cost.

OTHER OBJECTIVES ARE:

 To get customer satisfaction

 Maintain quality of the product

 Introduce new product

 Increase operational efficiency etc.

VISION

KAMCO, with other three decades of engineering excellence stand as the No: 1 power tiller

manufactures on India. Not surprising with four state of the art production plants, innovation

R&D and stringer quality control system rated as one of the best of the country.

MISSION

•To be innovative, resourceful and profitable company

•To meet customer requirement of quality services and price consistently

•To make “Doing business with us easy and delightful to our customers.

•To provide a congenial and entrepreneurial work environment in which employees can

respond to the needs of business and service earn fair reward can be satisfied.
BUSINESS PROCESS OF THE ORGANISATION - PRODUCT

•KAMCO Power Tiller model KMB 200

•KAMCO Power reaper Models (KR 120M / KR 12OH / KR 120DS)

•KAMCO Super DI POWER TILLER

•KAMCO Tractor Tera TRAC 4W

•KAMCO Diesel Engine Model ER 90

•KAMCO Beriberi B/30 Garden Tiller

•KAMCO Brush Cutter KBC 300

1)KAMCO POWER TILLER KMB 200

Popularly known as the complete farming units just it can deal with host farming operations

like tilling transporting etc. single headedly also it has been designed to function equally well

in both well and dry soil conditions it has retained its market position as the No: 1 power

tiller in India for the last there dealer, after marketing debut in the year 1973.

Advantages:

•Simple movement and controls easy banking

•Perfectly balanced and vibration for engine used to operations fatigue.

•Fail- safe safety devices help to prevent accidents

•Automotive fuel control help to save previous fuel

2)KAMCO POWER REAPER KR 120M

KAMCO Power reaper is ideally suited for harvesting of paddy, Wheat, barley and similar

crops. It harvests and makes windrows at rate of 3-4 hours hector. Since the fuel used is

kerosene, cost of operations is the lowest and it helps farmers to harvest his field at lower

cost.

3)KAMCO SUPER DI POWER TILLER

It creates an ideal mixture of fuel and air with the swirl type internal parts. The combustion

chamber is placed in a cavity in the upper of the piston itself prevent beat loss and increase

efficiency.

4)KAMCO DIESEL ENGINE MODEL ER90

It is a 12 hp single cylinder Horizontal diesel engine with automatic fuel control mechanism

and radiator cooking extremely compact and weighting only 140 kg. It has been well received

in market owing to 1’s virtually trouble-free performance.

5)KAMCO BARBIERI B/30 GARDEN TILLER

Introduce the all new KAMCO Barbieri B/30, and to handle the garden tiller with Italian

technology and design the powerful Honda petrol engine ensure efficiency, reduced vibration

and noise, low emission levels and low maintenance. Overall, it is an economy model that

offers safe and comfortable operation. This tiller can be easily dismantled. Also, it is

facilities easily transport across kind of grounds with the two rear wheels which can be easily

lowered. The technology partner beriberi has over 15 years of expertise in producing a range

of machines for small scale agricultural and gardening purposes.

6)GARDEN TILLER
KAMCO Garden tiller is a petrol engine, eco- friendly. Power tiller scalping gardening potato

harvesting and for preparations at horticulture farms. A highly fuel efficient and power

equipment with easy to control operations. Ideal for small medium and farmers.

MARKETING

a) The Company has 45 dealers all over India.

b) New Dealers appointed to cover selected districts in Tamil Nadu, Karnataka, Maharashtra,

Orissa and Andhra Pradesh.

c)Close interaction with the Govt. of India in the formulation of new schemes & policies for

farm mechanization.

d)Regular demonstrations and service camps are being organized in various States.

e) KAMCO Power Reaper has been exported to Iran and Sri Lanka recently.

These Machines has been well accepted by the customers.

ISO 9001 – 2000VERSION

a) Improvement in the systems and improved customer/ dealer satisfaction.

b) Comply with the requirement of customers and applicable statutory /regulatory

requirements.

c)Improvement in the effectiveness of the established quality systems.

d)Addresses Customer, Dealer, Vendor, Society, Employees & Shareholders – for their

requirement & Satisfaction.

QUALITY ASSURANCE

•Well-equipped latest inspection and testing facilities as per ISO standards for all the

products at factory and vendor’s sites.

•Third party audit at Vendor’s site to ensure manufacturing process as per quality plan,

process layout etc. which improves quality of components and self –certification status to

Vendor.

•Power Tiller variants are tested as per norms from approved Govt. institutions like

SRFMTTI and CFMTTI for minimum performance test standards, emission norms, safety

regulations etc.

•Engines are tested at ARAI as per latest exhaust gas emission norms according to CMVR

regulations.

•KAMCO’s policy is to equip itself with modern inspection and testing equipment’s.

•Quality standards for each and every components and products have been established and

ensured by close inspection at factory as well as at our vendor sites.

•Vendor performance and their manufacturing facilities are also being periodically assessed.

•The components are being checked for quality assurance by well-trained and dedicated

inspectors.

CUSTOMERS OF THE COMPANY

The main customers of KAMCO are B2B customers and mainly Farmers. KAMCO an

efficient network comprising of 50 dealers catering to the needs of customers. Commitment

of the workers to make a difference is what sets KAMCO apart. Special training sessions,

product familiarisation demos and bi-annual dealer meets are conducted to keep them

updated with the new products and their functionality.

Majority of the customers like farmers are purchasing Power Tillers and around by one third

of the customers are buying Tractors. The main reason of the customers to the products of

KAMCO because of the quality of the product, hence KAMCO having a good brand value,

and

also, they have very good opinion about KAMCO products. The customers are aware about

the price of agricultural equipment’s produced by KAMCO and the main element of the

pricing is moderate price level to the products as compared to the competitors. The customers

are satisfied with the quality of external parts & internal parts of the products and its

durability. Mainly the customers are focused on the safety features of KAMCO products.

The business customer companies also responded KAMCO as one of the

most quality Agro machinery manufacturing company. Overall customers have positive

attitude towards KAMCO products. To enhance this attitude further appropriate marketing

strategies maybe adopted by authorities. Some of the customers are recommending the

company to concentrate future on quantity accepts and products. Based on the overall

customer’s perception and satisfaction towards the agricultural machinery produced by

KAMCO are good, and also suggest for the future improvement to ensure the quality and

assurance of company in future also.

COMPETITORS OF THE COMPANY

Farming technologies have improved substantially in the last few years. As

the urban areas started flooding with the rural population, agriculture faced a crunch

situation. Industrial development meant new housing, as well as road infrastructure, was

necessary. Farming land was utilized to fulfil this requirement. Scarcity of fertile land leads

to maximize utilization of available farming area. Advanced irrigation systems, quality seeds,

new fertilizers and introduction of modern agricultural equipment helped in maximizing farm

production. Especially in the equipment sector, the introduction of machinery has reduced

significant time as well as physical efforts for farmers. Several farming machineries

manufactures have already played a key role in improving crop yield. This is an overview of

how organizations taking agriculture on to the new level.

THE MAIN COMPETITORS OF THE COMPANY ARE:

 KUBOTA

 SHRACHI

 MAHINDRA & MAHINDRA ltd.

 MITSUBISHI

 GREAVES
KUBOTA: Kubota is a tractor and agricultural machinery manufacturing company based

in Japan. The company has introduced automation in the farming sector. Unmanned

agricultural machinery will be controlled by farmers with remote control. Kubota also

released GPS based versions of tractors, rice-trans planters and combine harvesters.

SHRACHI: BTL EPC LTD. [ formerly known as Bengal Tools Ltd.] belongs to the Rs.

1000 Cr. ‘SHRACHI’ group having diversified business activities such as Engineering, Real

Estate, Agricultural Machineries and Stationary products. It commenced it journey in 1992 by

assembling power tillers under the brand name ‘SHRACHI’. It is headquartered in Kolkata,

West Bengal.

MAHINDRA & MAHINDRA: Mahindra & Mahindra, Kirloskar, JCBL are among

Indian brands who are competing with top global brands. Opportunity is immense in

agriculture. Striking the right chord at the right time will be the key.

MITSUBISHI: The Mitsubishi Company was established as a shipping firm by Iwasaki

Yataro [1834-1885] in 187O. In 1873, its name was changed to Mitsubishi Shokai.

Mitsubishi Motors Corporation is a Japanese multinational automotive manufacturer

headquartered in Minato, Tokyo, Japan. Mitsubishi also produces agricultural machinery

equipment such as Tractors, Combine harvesters, Rice trans planters. Minnie Tillers and

Agricultural machineries.

GREAVES: Greaves manufactures a wide range of agricultural farm equipment including

Pump set, Power Reaper, Power Tillers. The Greaves Agri equipment that are powerful,

reliable and fuel efficient. These products are made-in-India and require low maintenance.
Now, mechanised farming has become simpler using Greaves light Agri equipment which

includes the brush cutter, the reaper, the weeder, the sprayer and the mini power tiller. Thus,

right from land preparation to harvesting, the company enhance productivity at every stage of

the crop cycle with mechanised equipment to help farmers.

STRATEGIES

Materials management is cardinal significance in maintaining and improving profitability of

any manufacturing industry, as materials typically constitute nearly two- third or more of the

total cost of production of a product. Taking into account an agricultural machinery

manufacturing company based in Kerala viz. KAMCO (or, Kerala Agro Machinery

Corporation Limited) – a public sector unit under the Government of Kerala. This paper

analyses the impact of the performance in materials management on the overall profitability

of the company, also considering the case of the whole industry (viz. Agricultural machinery)

in India as well. Accordingly, strategies are suggested for enhanced profitability and

competitiveness of the company based on the finding of the study. The Agro-machinery

manufacturing industry have a number of moving parts and KAMCO as a manufacturing

machine company, the manufacturing pricing model is no different. Consider product

evolution, demand, production cost, sale price, unit sales volume, and any other cost related

to the process and product.

Pricing strategy of KAMCO for their products are in different ways.

There are only two indigenous manufacturers of Power Tiller in the country, one is Kerala

Agro Machinery Corporations Ltd. [KAMCO] Athani, and VST Tillers Tractors Limited,

Bangalore. As per the data supplied by these two manufactures, the manufacturing cost [raw

material cost] of power tiller on an average is Rs. 92000/-, which includes cost towards
overhead expenses such as cost of consumables, assembly, pre-delivery inspection etc.

[average Rs.23500/-], company profit ranged from Rs. 1970/- to Rs.5000/- and other charges

such as freight, insurance, PDI expenses, marketing expenses, finance charges, local

transportation, octroi and other levies on an average Rs.26000/-.

Different states have different pricing strategies on both indigenous as well

as imported power tillers. The selling price of indigenous power tillers range from Rs.

1,40000, to 2,15,000 and that of imported power tillers range between 1,08,5 to 1,95,300.

There is wide gap in the selling price of power tillers among the states. Thus, there is a selling

price difference of around Rs.20000 to Rs 32000 between the power tillers in different states.

Chinese power tillers are around 10-20 percent cheaper than the indigenous power tillers. The

selling price of power tillers is highest in the state of Arunachal Pradesh followed by

Meghalaya. The cost of Chinese power tillers is also highest in the state of Arunachal Pradesh

followed by Assam. The selling price of both indigenous and imported power tillers in many

states is higher than the maximum retail price indicated by the manufacturers/suppliers. It

may be due to the fact that the state government servicing agencies such as State Agro

Industries Corporations etc. may be adding their commission and service tax in the cost

quoted by the manufactures

DEPARTMENTS IN KAMCO

In KAMCO there are 11 departments. They are as follows:

•Marketing Department

•Finance Department

•Human Resource Department

•Materials Department

•Purchase Department

•Stores Department

•Quality Assurance Department

•Production Department

•Maintenance Department

•Research Development Department

•System Department

NB: In KAMCO LTD, MALA There is Only Production Department

CSR ACTIVITIES OF THE COMPANY

KAMCO's manufacturing facilities include Special Purpose Machines, Specially built

General-Purpose Machines, and Imported machines. The inspection facilities include modern

inspection & testing equipment. KAMCO have their own Metrology, Calibration & Engine

Test Lab.

The following are the main Activities of the Company:

a) Manufacturing and marketing of Agriculture machines like Power Tillers, Tractors, Power

Reaper, Diesel Engines etc.

b) Power Tiller produced at Athani & Palakkad units. Major components for Power Tiller are

manufactured at Athani and all other components bought out from dedicated Venders in

India. There are around 250 vendors now.

c) Kalamassery unit produce Engine for Power Tiller

d) Power Reaper produced at Mala

e) Trading/manufacturing of other farm Machines

CSR ACTIVITIES

•Close interaction with the Govt. of India in the formulation of new schemes and policies for

farm mechanization.

•Regular demonstrations and service campus are being organized in various states.

•KAMCO Power reaper has been exported to Iran and Sri Lanka recently.

IMPORT AND EXPORT DATA

Kerala Agro Machinery, is a premier company that exports and imports goods from countries

including Srilanka and most of the other countries.

Export Shipments

Kerala Agro Machinery is a leading exporter of KAMCO POWER REAPER KR 120-

CHASIS NO, TRAILOR FOR KAMCO POWER TILLER ALONG, KAMCO POWER

TILLER KMB 200, having HS Codes 84328090. The company has its head office at Athani,

Ernakulam dist.
The company primarily exports products to Sri Lanka and ships its consignments mainly to

Colombo. KAMCO’s Power Reaper has been exported to Iran and Srilanka recently. The

export quantity is not a huge on but still they getting orders from those countries. These

machines have been well accepted by the customers.

HS Code Product India Port Foreign Foreign Quantity Unit

Exported Country Port

84328090 KAMCO Cochin Sea Sri Lanka Colombo 1 Nos

POWER

REAPER KR

120-

CHASIS NO

84328090 TRAILOR Cochin Sea Sri Lanka Colombo 1 Nos

FOR

KAMCO

POWER

TILLER

ALONG

84383090 KAMCO Cochin Sea Sri Lanka Colombo 1 Nos

POWER

TILLER

KMB 200
COLLABORATIONS & EXPANSION PLANS

“Kerala Agro Machinery Corporations Ltd. Athani [KAMCO] was established in the year

1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Limited [KAIC],

Trivandrum for manufacturing agricultural machinery, Specifically Power Tillers and Diesel

Engines. KAMCO had technical collaboration with KUBOTA Pvt Ltd., Osaka Japan earlier.

But currently there is no any collaborations are done by the company. Subsequently KAMCO

became a separate Government of Kerala Undertaking in 1986. KAMCO has four production

plants that are situated in Mala, Palakkad, Kalamassery, and the head office is at Athani in

Ernakulam district. KAMCO and VST Bangalore Tillers and Tractors are the two companies

which have undertaken significant production. They both have technical collaboration with

Japanese companies. While KAMCO has collaborated with KUBOTA, VST has got

collaboration with Mitsubishi of Japan. These two companies have an aggregate 95% of the

market share in the field.

EXPANSION PLANS

KAMCO is looking proudly ahead into more promising future. Future will also see

KAMCO’s diversification products in the farm mechanization field contributing significantly

in food production and predicting itself to the cause of self-reliance and social responsibility

in the service of people without respite.

Today, KAMCO is a multi-product, multi-location company with two production

units at Ernakulam dist., one production unit at Palakkad dist., And one production unit at
Thrissur dist., KAMCO has a number of diversification plans .It’s proposed to set up research

development activities which will hopefully help it to develop new products in the future and

live up to its promise, that its products will be “A boom for the farmer and a gain for the

nation”. The quality policy of KAMCO is “Total customer satisfaction through quality

products and service with improved technology and employee participation”.

Now KAMCO is the leader in Tiller production, the also going to expand it also for Tractors

also. Tractors are more suitable for large farm lands. So, without doubt it will get priority in

large scale farming. The Tractor unit is expected to be operational within a year itself. The

company has plans to diversify its product line. They have plans to get into the manufacture

of food processing machinery also. Presently forty percent of the vendors are giving self-

certification status on their materials. The company wants to make it a hundred percent so

that only random inspection will be required. The demand for company’s products is

growing. But the plant capacity is not that supportive. So, now the expansion works are done

so that they can meet the demands of the market.

KAMCO is now a multi-product, multi-location company with four units in

Kerala. The organization has a number of diversifications plans under consideration which

will help in its future growth and expansion.

This agricultural machinery market is expected to double in the next five

years. Besides, the rise in small land holdings revival in interest among the youth for

agriculture will boost the sale of farm equipment’s. To cater to the emerging demand, they

said a proposal to install automated assembling line for tiller production under the Rashtriya

Krishi Vikas Yojana assistance of Rs. 24 crores are under consideration. The project aims at

doubling Tiller production with a cost of saving of Rs. 10000-15000 Per- tiller which can be
passed on to the farmers. Similarly, the demand for power reapers is expected to improve

substantially especially for low floor reaping of soyabean dwarf variety. KAMCO has already

received advanced booking from Madhya Pradesh, Andhra Pradesh, and Karnataka. By

widening the market, KAMCO has a short-term target of achieving a turnover of 200 Crore

and a net profit

of 7 crores, the company adding that the long-term goal is to offer total solution to all

mechanisation needs of farmers by 2025.

SWOT ANALYSIS

The overall evaluation of the company’s Strength, Weakness, Opportunities and Threats is

called SWOT ANALYSIS. It is the key element influence the survival and development of

the organization. It will helpful for the improvement of organizational strategies.

STRENGTH

•Good production facility

•No loan capital

•Dedicated work force

•Good incentive scheme

•Qualified and skilled labours

•Environment friendly
•Good management

•Strong and accepted products

•Fully computerized

•Good budgetary control system

•Good brand name and image

•Financially sound

•Good industrial relations

•Extensive marketing network through dealers

•The product of KAMCO are comparatively better in quality than other Indian

manufactures

•Good working atmosphere

•Least number of competitors

•Well-structured industrial safety

WEAKNESS

•Only limited number of products are there of technological up gradation and automation.

•Legally dependable on slow sales growth.

•Political interference

•Trust in IT application is not adequate.

•All product is mainly based on agricultural goods.

•The agricultural field become dull it will strongly affect the business.

• Recruitment tine delay will come.

•Aging work force

OPPORTUNITIES

•Dominating shares

•Good brand image

•Government support

•Boom in the farm mechanization

•Collaborations can be made by reputed agro

•Machineries manufactures all over the world

•Good exporting opportunities

•Safe internal market

•Diversification programmes

•Favourable changes in customer attitude towards mechanized farming

THREATS

•Competition from Chinese manufactures

•Political interference

•Government policies
•Liberalization, Privatization, Globalization

•Anybody can enter into the market which will increase the competition

•Growth of private enterprises in the sector and New entrants in national market

CHAPTER-4

SUGGESTIONS AND RECOMMENDATION

Observations

 It has good organisational structure and good management system

 It fully utilizing men, material and machinery

 KAMCO provide all welfare activities to its employees

 KAMCO having a production-based incentive scheme

 KAMCO providing all the statutory and non-statutory benefits to the employees

 KAMCO have good growth possibilities

 Reduce production in COVID- 19 Situation

 Increase unemployment

Suggestions

 Diversification of products and services is essential for success

 Give more advertisement through possible medias

 Introduce advanced technology for production

 Incentive system should be encouraged

 Provide counselling facility to the employees

 Provide open communication

 Make proper decision for improving production

CHAPTER-5

CONCLUSION
‘

CONCLUSION

(KAMCO) was established in the year 1973 as a wholly owned subsidiary of Kerala

Agro Industries Corporation Ltd (KAIC), Trivandrum, for manufacture of agricultural

machinery specifically Power Tillers and Diesel Engines. Subsequently KAMCO became a

separate Govt. of Kerala undertaking in 1986. Paid up capital is Rs. 161 lakh Present Net

Worth of the Company is Rs. 6014.14 lakh. Total work force at present is 567 Certified for

ISO 9001 - 2000 version from September 2002.

At present, KAMCO has five units located at Athani and Kalamassery in Ernakulam District,

at Kanjikode in Palakkad District, at Mala in Trichur dist. and at Valiyavelicham in Kannur

District. With the present work force KAMCO can produce 8400 Power Tillers & 1200

Power Reapers per annum.

The Organizational study at KAMCO Mala, is help me to know more about

Production Department and about its proper functioning. In COVID – 19 Situation the
production gooses down but now the effective management system of KAMCO LTD taking

more suitable decisions for the problems faced by them.