History of the mill-profile of Anglo French Textiles:
The AFT is a unit of Pondicherry Textiles Corporation, which is a government of Pondicherry undertaking and is situated on the cuddalore road, pondicherry-4. It is the largest composite textile mill in the south India. The AFT as incorporated ltd., in England in 1898 and proudly celebrated its centenary in 1998. In the beginning Africa and Madagascar were the prominent buyers from the AFT. The dyed cloths exported then were popularly known as “Sendura” clothes. The mill was equipped with 44,256 spindles and 1000 looms at that year. When the French left the Pondicherry, the mill was managed by the Compton company ltd., and then late C.S. Ramachari took over the mill. The mill flourished under his guidance and management. The mill was expanded with additional machine and the export of cloth received great attention. Unfortunately, there was a persistent labour, unrest, which brought down the performance of the mill. This situation gave way to selling of the mill was facing financial crisis due to mismanagement.This dominated into stoppage of operations in the mill ultimately the mill ceased to function from July 1983 and remained closed up to 1986. After 3 years. The company was reopened in 1989 and was taken over by the Pondicherry textile corporation ltd., a govt. of Pondicherry undertaking. The first M.D.after the take over Mr.P.M.Nair who decided that AFT should be leading cotton mill in the fiercely competitive textile world. Thus, AFT transformed itself from “debt-crippled” co. into a very dynamic form “where quality is by design and excellence are obsession”.
Material management contributes a major part and plays an important role in cost accountancy, which mainly aims at the maximization of profit by reducing the cost on overheads. Material management is the integrated functioning of purchasing and allied activities so as to achieve the maximum co-ordinations and optimum expenditure in the area of materials.Of the three main spheres of production process namely – material, labour and expenses, material management is given a considerate importance, as the importance of materials management can be realized when it is said that purchases accounts for nearly 50% of an organization’s annual expenditure; that nearly 80% of the working capita is tied up in the inventory and the inventory carrying cost is almost 25% a year; that materials represent 40 to 60% of the sale price as 60 to 80% of the production cost of a product and that even a saving of 5% in material cost will substantially increase the profit margin of and enterprise.