Garden Silk Report

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INDIAN TEXTILE INDUSTRY PROFILE

India Textile Industry is one of the leading textile industries in the world.

Though was predominantly unorganized industry even a few years back, but the scenario

started changing after the economic liberalization of Indian economy in 1991. The

opening up of economy gave the much-needed thrust to the Indian textile industry, which

has now successfully become one of the largest in the world.

India textile industry largely depends upon the textile manufacturing and

export. It also plays a major role in the economy of the country. India earns about 27% of

its total foreign exchange through textile exports. Further, the textile industry of India

also contributes nearly 14% of the total industrial production of the country. It also

contributes around 3% to the GDP of the country. India textile industry is also the largest

in the country in terms of employment generation. It not only generates jobs in its own

industry, but also opens up scopes for the other ancillary sectors. India textile industry

currently generates employment to more than 35 million people. It is also estimated that,

the industry will generate 12 million new jobs by the year 2010.

Various Categories

Indian textile industry can be divided into several segments, some of which

can be listed as below:

Cotton Textiles

Silk Textiles

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

India textile industry is one of the leading in the world. Currently it is

estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by

the year 2012. The current domestic market of textile in India is expected to be increased to

US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country

THE OXFORD COLLEGE OF BUSINESS MANAGEMENT

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was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-

08. The share of exports is also expected to increase from 4% to 7% within 2012.

Following are area, production and productivity of cotton in India during the last six decades:

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267

2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it

succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet

managed to retain its position as world's second highest cotton producer.


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Strengths

• Vast textile production capacity

• Large pool of skilled and cheap work force

• Entrepreneurial skills

• Efficient multi-fiber raw material manufacturing capacity

• Large domestic market

• Enormous export potential

• Very low import content

• Flexible textile manufacturing systems

Weaknesses

• Increased global competition in the post 2005 trade regime under WTO

• Imports of cheap textiles from other Asian neighbors

• Use of outdated manufacturing technology

• Poor supply chain management

• Huge unorganized and decentralized sector

• High production cost with respect to other Asian competitors.

Current Facts on India Textile Industry

India retained its position as world’s second highest cotton producer.

Acreage under cotton reduced about 1% during 2008-09.

The productivity of cotton which was growing up over the years has decreased in 2008-

09.

Substantial increase of Minimum Support Prices (MSPs).

Cotton exports couldn't pick up owing to disparity in domestic and international cotton

prices.

Imports of cotton were limited to shortage in supply of Extra Long staple cottons.


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COMPANY PROFILE

Introductiion

Garden Silk Mills Ltd. is one of the leading Textile industrial

companies of India and plays a leading role in the field of fashion fabrics with its annual sales

exceeding US $90 Million.They sell their products under a single banner of quality named

“GARDEN”.Garden Silks Mills Ltd. designs, manufactures, and markets polyester yarns

primarily in India.

It offers fine filament and micro filament polyester fabrics, such as georgette's, chiffon's,

failles, and dyed and printed jacquards for ladies blouses, skirts, and dresses, as well as

sarees.The company’s strategy is not to be a commodity player in POY but a flexible

manufacturer of differentiated yarn.

The company also manufactures a range of printed pure silk chiffon, cotton, and viscose.

In addition, it offers partially oriented yarn, draw twisted yarn, draw warped yarn, sized yarn,

greige fabric, and dyed and printed fabric, as well as apparel, including Vareli business shirts and

ready to wear ladies garments.

The company sells its products through 68 dealers, 18 company owned depots, and 293

retail outlets in India.The company has made vertical and horizontal integration from its

establishment.It also markets its products in the United Kingdom, France, Spain, Portugal,

Greece, the Middle East and Gulf countries, the United States, Australia, Singapore, Thailand,

Hong Kong, Mauritius, South Africa, and Brazil. Thus GSM has a established brandname in the

Indian as well as the international market.

Thus the company operates a complete line from the manufacture of the yarn,fabric to

the dying,weaving processes and finally the finished dress materials and sarees.


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History of organization:

“Garden silk mills ltd.”is one of the leading manufacturers of the synthetic textiles in

India.The origin of the business goes back to the 1920 when Mr.Amichand Shah installed the

first hattersly looms in Surat,since 1920 the company expanded not only by increasing the

production capacity and workforce of the business but also by pioneering new materials and

processes.

The present chairman and managing director of GSM is Mr.Praful Shah who is the

youngest son of the founder Mr.Amichand Shah . he joined the business,prior to that date GSM

had concentrated on weaving quality fabrics and the first processing house of the company.GSM

is a public limited company incorporated on july 23,1979.It has a authorized share capital of 60

crores out of which 38 crores have been issued,subscribed and fully paid.

The companies shareholders have seen much appreciation and received regular

dividends which imposes that the company is prosperous year after year and is a profit making

venture.The company has seen much of highs and lows of the market and has successfully

evolved as a leader of the textile business of all times.

In 1970,the company recruited fine arts graduates from leading institutions.An art

studio was set up.The company started introducing its own designs and supplying these designs

in the market .GSM then opened its first retail shop in Surat.The extension of the policy of

vertical integration into the retaining sector has advantages of uniform pricing,close market

monitoring and improving communications with consumers.At present it has some 293

authorised outlay.

In 1973 unique method of marketing through wholesale depots run by the mill was

pioneered as the first step in vertical integration policy.In 1974,first four automatic printing

machines. In 1980 the company developed a new site,Vareli which is 12kilometres away from

Surat.This has become the main manufacturing plant with investment of more than Rs.2.0

billion.Most of the expenditure has been targeted at the modernization of the plant and

equipments particularly in the weaving and the yarn preparatory sections.As a result the

company today has one of the most sophisticated & modern textile plants in India. In


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1992,the company came up with its rights issue after the allotment of which the company’s

capital stood to 27.48 crores. The company has now divided to further its policy of vertical

integration by setting up a new plant near Surat from which it will manufacture Polyester

filament yarn ,one of its principal raw materials from polyester chips. This plant is due to come

on stream in 1994 at a cost of approximately 655 million rupees.

In 1997 again the company installed additional Draw wraping machines ,draw twisting

machines and two for one up twisting machines from South Korea to achieve better margin in

yarn segment.

The company has grown in all terms during the past few years in the economic

prosperity and in the form of larger assets creation,making GSM to be the leader of all times in

the industry.It achieved ISO 9002 in February 2000 which was its greatest achievement as GSM

was the first company ever to achieve this certificate in Surat.The company had planned to

increase its capacity in a phased manner until 2002.

This would include set up of a power generation project for the garden vareli plant

and the installation of new draw warping and two for one machine draw texturising machine to

increase the production capacity.


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Locations of offices, branches & factories

Activities of The Company:-


Registered Office

Garden Mills Complex ,sahara gateSurat - 395010Gujarat - IndiaPhone : 2311513, 2311197 , Fax : 2311029/502Email :[email protected]

Factory /plant

Vareli Complex Village Vareli, Taluka Palsana Surat District - 394327Gujarat - IndiaPhone : 271241-47

Factory/plant

Village Jolwa Taluka Palsana Surat District - 394305 Gujarat - India Phone : 271287-271289

Corporate office

Manek Mahal 90, Veer Nariman Road, Churchgate Mumbai - 400020Maharashtra - IndiaPhone : 22873117-19Fax : 22048112Email : [email protected].

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The company is primarily engaged in the manufacture of synthetic textile, sarees and dress materials mainly made of polyester yarns and certain intermediate products. Garden Silk Mills Pvt. Ltd. has been, and continues to be, the initiator of the majority of new textile varieties woven and processed in surat, is at present, the consumer of approximately 50 percent of polyester yarn in india. The company believes that design is a key factor in its market and used to produce some 200 different printed design each month.

The company’s lead in different and improved fabric construction and the emphasis it places on design together with its modern and efficient plant is key to its future success. The company operates in a highly fragmented market where no individual manufacturer has a material market share. It is also the leading integrated textile manufacturer house, which undertakes all processes from yarn manufacture to the retailing of dress materials and sarees.

The company, and its wholly owned subsidiary, Garden finance are also engaged in providing to the indian corporate sector trade and asset finance including the discounting of bills of exchange.

Achivements

The company is the first to set up a polyester filament yarn project in south Gujarat. The project is capable of producing multifilament and microfilament yarn having capacity of 5000 tons p.a. in collaboration with NOYVALLESIVA AG of Switzerland.

Now a day’s company increase POY Spinning capacity from 7200 metric tones to 32200 metric tones per annum and secondly company increase Draw Extrusion from 13 to 17 i.e. 4 machine are installment, and also increase Draw Warping machine from 7 to 9 machine. The project has a special significance for the company, as polyester filament yarn is the basic raw

material for the product for manufacturing man made textile.

Financial performance & future investment

During the year under review, your Company raised funds by way of Term Loans from

Banks to part-finance the ongoing projects. Your Company has maintained satisfactory cash

flows and has been regular in discharging its repayment obligations. During the year the

Company repaid long-term loans of Rs.109.93 cores to Financial Institutions and Banks for the

year 2008-09.


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Details of promoters and owners

NAME DESIGANATION

Praful A Shah Chairman and Managing director

Shilpa P Shah Executive Director

Suhail P Shah Executive Director

Arunchandra N Jariwala Director

Yatish Parekh Director

Smita J Shah Director

Anjan Mukherjee Nominee Director

Alok P Shah Joint Managing Director

Sanjay S Shah Executive Director

Rajen P Shah Director

J P Shah Director

Sunil S Sheth Director

Madanial U Lankapati Director

Future plans of organization

GSM commenced commercial production of its new Continuous Polymerization (CP)

project increasing the production capacity from216,000 TPA to 416,000 TPA from January 2009

on schedule and within budget. In March- June 09 the Company commissioned the latest


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technology POY and FDY equipments adding further spinning capacity of about 55,000

TPA.GSM has further undertaken an expansion project involving enhancement of Polyester

textile grade Chips Capacity by 130,000 TPA which is expected to be commissioned by

February of 2010. This will further enhance our capability to serve our clients demand of non-

commodity chips, of which Garden is a leading supplier. Attache to this plant, as well as the

older CP plants, machinery to directly spin a diverse range of yarns is in the preliminary project

stage. This will downstream about 138,000 TPA of polymer into directly spun POY & FDY

yarns.

In addition, 11,000 TPA of semi-dull chips will feed specialized extruder-spun yarns in the same

premises. The estimated completion date of these downstream projects is Q3 of 2010-11. In the

year under review the original CP plant has been modified to optionally manufacture high-value

polymeric chips for film-grade applications and textile applications requiring optical brightener

additives. In order to maintain uninterrupted power supply to support these projects, your

Company is setting up an 18MW power plant. The total cost for the upcoming projects is

estimated to be around Rs400 cores.

VISION


Top management(All partner)

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Vision is to manufacture product as par international standards and compete international

textile industries.

MISSION

Customer satisfaction is there ultimate mission.

CORPORATE GOALS AND OBJECTIVES

Company’s has its own culture and identity in business world. It is the effort of the

company to maintain this identity and be leading in global market. Company has fixed its goal

and laid down some certain missions to achieve them.

CORPORATE GOALS

Maximum return to share holders.

To improve company’s position in business.

To keep a slim and trim but fully satisfied management team to operate faster and to

achieve higher levels of business and growth effectively.

To ensure quality at all stages.

Organization structure


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PRODUCTION DEPARTMENT

Detailed organization structure of production department


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All Activities in Production Department:-

All activities which are carried our in Production Department are as follows:-


(HOD)SPG

Sr. manager/dy. manager

production

Asst. manager/engineer

shift enginer

sr. technician/

technical

worker

packing

sr. officer

sr. clerk

worker

Sampling for Production

Sampling for Production Department

Market(Customer)

Marketing Department

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First of all marketing people collect information from market (customer) which was used

for production & also send design to producer for production of goods.All activities like first

marketing department collect order from customer and also own created designs directly send to


Dispatch to Customer

Dispatch to Marketing Department

Production (Producer)

Production Starts

Approval to market via Marketing Department

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production department. Production department also ask for certain design to marketing people.In

short first marketing people send design as per design received in production unit and after the

confirmation received from marketing department production start.

After production start then all the products dispatch to marketing department. Marketing

department send all the goods to their customer. And also some product sends as for sample. So

that customer knows about the product and sends order for that order.

Visit to the Manufacturing Unit and Engineering Unit:-

PLANT LOCATION:-

Vareli Village,

Nr. Kadodara Junction

N.H.No.8

Factors should be considered while selecting the Plants is:-

I. Availability of Raw-Material:-

Company have their own production plant for raw-material and remaining part of raw-

material can be purchase from outside from Reliance Industries, Bombay Industries and also

some part of raw-material and ingredients can be import from other country.

II. Nearness to Market:-

All the cloths prepared in the company can be sending as per order and some part can be

exported in other country. Generally most of order Company received in Bombay Market which

was measure market for the company.

III. Availability of Power:-

Company has their own power generation so company does not have any problem

relating to power.


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IV. Transport Facility:-

Companies have their own buses and company’s plants are near to N.H.NO.8. So

company benefited by this way.

V. Suitability of Climate:-

Company’s plants available were climate suit to the plant. Because at that place all

company available and so all facility provided by government benefit to the company.

VI. Government Policy:-

Government provides subsidy and other benefit to the company.

VII. Availability of Labour:-

Company located at GIDC area where labour can be easily available and company has

their own bus facility who handles man power to traveling.

Factor influencing layout:-

I. Material:-

Yarn

II. Product:-

Sarees and Dress material

III. Workers:-

Work in three shifts

1 worker handles 8 machines

IV. Machinery:-


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Name of Machine No. of Machine

Sizing 6

Warping 9

Beaming 5

Leasing 8

Water-jet loom 240

Jet dying -

00 Machine -

Printing Machine 7000

Folding Machine -

Packing Machine -

Cutting Machine -

V. Types of Machinery:-

Continuous Processing industry.

VI. Location:-


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Kadodara, Jolva, Sahara Darwaja

Manufacturing System:-

The company used production factor as input like man, machine, capital etc. and get out

put of cloths. Workers work in three shifts i.e. each shifts timing are 8 hours and during these 30

minutes break given to their employees.

Types of Products and their Specification:-

Types of product:-

- Sarees

- Dress-Materials

- SKD (Skirt, Kurt and Dupptta)

- Suiting & Shirting etc.

Types of Raw-Material Used:-

Raw materials for yarn are as follows:-

DMT+MEDENOL (chemical)

Raw materials for gray cloths are as follows:-

Yarn:-Raw material for Sarees and dress material are as follows:-

Gray cloths:-Raw material for production of Sarees and dress materials are produce in company itself at Jolva Plant and remaining part of raw-material can be purchase from out side.

Company’s policy for procurement of raw-material is three ways like:-

i. Own processing,

ii. Outside processing (OP) and

iii. Totally Out Side processing (OSP)

Percentages of procurement of Raw-material are as follows:-


CRIL SECTIO 1500 P.P. 1200 P.P.

DRAW JOMS TO STRETCH YARN

130 TEMP.HEAT + 80 TO 95 TEAM. COLD

FOY (FULLY ORIENTED YARN)

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OWN 80%

OP 10%

OSP 10%

Raw-Material like PFY (Polyester Filament Yarn) purchase from out side which is as follows:-

Reliance Industries Ltd. Bombay Dying and also import some Raw-Material used in production.

Brief Explanation of Production Process and its flow Chart:-

Draw Warping Machine:-


INTERMINGLE DEVICE TO BINDING

POY

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In Draw Warping Machine used for Stretching Polyester Filament Yarn. In this machine

the following procedure can be done.

First of all 1500 p.p. to 1200 p.p. size creel can be build up or beam of that size can be

prepared. Then after draw joms machine stretch polyester filament yarn. In this machine two

procedures can be done i.e. first 130’temperature heating the yarn then 80 to 90’temperature cold

the yarn. So that POY can be converted into FOY (FULLY ORIENTED YARN). Then after

intermingle device binding or beaming the FOY. Then after this beam send into another process.

Explanation or to study the details of any single equipment /Machine Operator and

Comment on Related Micro Motion Aspects:-

I. Draw Warping Machine:-

-Fully German Technology

-Speed 1000

-Actual Speed 900

-To Count

-Yarn in meters automatically

-Diameter

-Width

-Total Meter

-Speed of Machine

Total no. of machine in the company is 9 & all machine made in Germany.

II. Rolling Machine or Beaming Machine:-


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-Speed of machine

-Actual 650

-Rated 650

-Warping Length in meter

-Windings

-Circumferences

Stopping condition

-Inter Stretching

-Outlet Stretching

-Massage

III. Water-Jet Looms:-

-Total no of machine 240

-70/80 meter per day production per machine

-Made in Germany

-1 worker handles or operators

After completion of these procedures then after caning and looms and finally grey fabric

prepared. One officer also prepared one grey fabric checking report. This report can be check by

HOD of that department and send for further processing.

After this process Grey Fabric can be send in checking department for checking the mistake and

then after send it to mending department where all mistake found by checking officer can be

clear or rectify. Then send it for further processing.

In Mending Department grade can be given as follows:-


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Grade can be given as per 1 defect in 100 meter.

Centimeter Point

1 to 3 1

3 to 6 2

6 to 9 3

9 and more 4

Point Grade

0 to 4 A

5 to 10 B

11 to 15 B1

16 and more C

Types of Material Handling Equipment Used:-

- Pipe lines for liquid material

- Truck for large beam

- Lorry


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- Conveyer belt

- Trolley

- Patching machine

- Jumbo Lorries

- Pallets

- Batching Machine

- Electric Hoist for Beam passing

- Standard Double-Deck Wood

- Skid Boxes

- Fork lift Truck

- Plastic Boxes

Inventory Management for Raw-Material & Finishing Material:-

Generally in the company all the procedures for inventory management and all other

control activity in company can be done automatically.Company also does ABC Analysis and

EOQ Analysis.

Co-ordination Between:-

Stores and Production

Purchase and Production

Production and Dispatch

Production and Engineering

Stores and Production:

Central stores and purchase department and production department. If any stores item want

in production department from stores and purchase department then HOD of production


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department write one memo to store and purchase department. This department received the

memo and sends for checking sign of the memo and if not any mistake then sends goods as per

requirements and prepared bills for that order and send it to Account department.

In short:-

Production and Dispatch:-


Bills Prepared for Required Items

Bills Sign by Respective HOD

Send to Stores & Purchase Dept.

Send for Checking of Sign of HOD by Stores & Purchase Dept.

If no mistake found then send Items as per order by Stores & Purchase Dept.

Send Bills to Account Dept. by Stores & Purchase Dept.

Order Received From Customer

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Sizing Department:-

Input----Flat Yarn

Sizing

Beaming

Name of Machine No. of Machine

Sizing 8

Warping 3

Beaming 3

Leasing 8

Leasing

Weaving Dept. -------Output

Quality Assurance Measurement:-

Grade can be given as per 1 defect in 100 meter.


As Per Order Prepared Item

Prepared Item Send to Marketing Dept.

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Centimeter Point

1 to 3 1

3 to 6 2

6 to 9 3

9 and more 4

Point Grade

0 to 4 A

5 to 10 B

11 to 15 B1

16 and more C

Grade A for high quality

Grade B & B1 for medium quality

Grade C for law quality………………….

ORGANIZATION STRUCTURE OF MARKETING DEPARTMENT


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Types and classification of products


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The manufacturing plant of Garden silk mills Ltd. is located at Jolva an industrial area

which is 16-20 kms away from the Surat city.The manufacturing unit has the following

manufacturing plants Plant A,B,C,D and E where the production activities take place.

Products at GSM:

This is the first stage of production where polyester chips are manufactured. The finished

polyester chips is either demanded by the other companies or is used internally for further

processing to obtain POY.In the second stage the feed material is the polyester chips produced in

stage 1and the output is polyester yarn.

Product Production

capacity(mt per

annum)

Additional capacity

expansion in 2010

Total capacity after

expansion(mt per

annum)

Polyester chips 2,80,000 2,52,000 5,32,000

Poy spinnimg 1,20,000 29,000 1,49,000

Fdy spinning 3,500 25,000 28,500

Draw warping 14,400 - 14,400

Draw twisting 21,000 - 21,000

Draw winding 6,000 - 6,000

Draw texturising 43,000 36,000 79,000

Fabric(million mtrs

per annum)

60 - 60

Sales volume

Details of competitors


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In India there is very healthy competition among textile industries. There are many giant

organization producing yarn.. Surat is hub of textile industries. There are many national and

multinational companies have their production unit in Surat like, reliance,alok industries,Modern

synthetic ltd etc.

Recent competitors

Reliance

Indorama synthetic

CGB ltd

Rajshree industry ltd

Divison of century ltd.

Gokulanand

Sanghi ltd.

Nova ltd.

Paras ltd

Customer segmentation

Customer segmentation can be identified by examining demographic, psychographics, and behavioral differences & geographic. The marketers then decide which segment presents the greatest opportunities that are its target market. For each chosen target market the firm develops a market offering.

Garden silk mills sell its product in both local and foreign market. So we can say that Garden silk mill has geographic segmentation, which call for dividing market unit such as nation, state, countries, and cities region etc. Garden silk mill has good opportunity in foreign market.

Target Market

Garden silk mill have geographic segmentation so we can say that target market is also

geographic. The target market of Garden silk mill is as follow:

Indian market

Foreign market


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Here, the target customer is also according to target market like,

Indian or local customer

Foreign customer

Distribution network

Being an industrial good there are no intermediaries in the channel such as the

wholesaler, jobber or the retailer. In this industry dealers play an important role who facilitate

between the customer and the manufacturer. The products produced here don’t go the dealers

warehouses but directly go to the consumers godown.Thus the company has a 1 level channel

of distribution where the industrial distributors sell to the industrial customers. The dealer

before commencing business with the company has a deposit a security amount of Rs.12,

00,000.The dealer is entitled to a commission of 25 paisa on per kg sold.

Manufacturer-------------Dealer----------------Customers

Sales procedure

Requirement of the customer :

The company first takes the requirement of the customer on the monthly basis.

The dealer caters with the customers requirement.

The company looking into the monthly requirement on the basis of the monthly

production programmed and the stock lying at the warehouses then decides the material the

company would supply to the customer on daily basis

Preparation of the Delivery order :

The company then prepares a DO called the delivery order

with all necessary details and forwards it to the warehouses for dispatch to the customers.


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Preparation of the invoice:

An invoice copy is prepared by the company along with a document called the challan.4

copies of the document are prepared. The following are the 4 copies prepared: Buyer

copy which is the original copy, Transporter copy, Exercise copy and last is the accounts

copy maintained by the company. The invoice contains all the possible details of the

product as well the various charges that the customer has to pay for.

Then, they fill customer complaint form.

On receiving the complaint form from the customer the company then sends the

company representative to inspect if the complain of the customer is genuine or not. In case

if there is a defect in the good the company takes the defective goods from the company,

prepares a credit note in the name of the company and replaces it with a fresh stock of goods.

How Customer Orders are processed?

Local market

Dealers send the order to the company’s office.

Sales manager show their products according to order is available or not.

If not, than inform the production unit (Surat) to send the required product

Sales manager send his dealers to supply the product with bill.

For foreign market

From Mumbai office the material is sent to foreign office

Customer gives order at the foreign office

Material is supplied to customer

Documents related with sales

They not ready with us to give document related with sales. Bu they prepare following documents:

Sales bill Challan


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How should the companies be ranked as per the customers preferences?

All the customers gave the following ranking:

1st-Reliance

2nd-Garden silk mills ltd.

3rd-Rajshree

4th-Modern petrofils

Forecasting and sales plan preparation

The company first takes the requirement of the customer on the monthly basis.

The dealer caters with the customers requirement.

The company looking into the monthly requirement on the basis of the monthly

production programmed and the stock lying at the warehouses then decides the material the

company would supply to the customer on daily basis.

Competition

If competition is high company make effort to increase sales.

Consider following factor, they estimate future sales, and prepare the sales plan

Types of competitors in garden silk mills ltd,

The goal in business is to make a profit by selling a product or service. In most situations several

companies will be competing for sales and the market share. This competition can range from

performance competition, where each company does its best to win the hearts and minds of the

customers, to a head-to-head competition, where a company will not only seek to do better than

its opponents but will also try to prevent the competition from performing well. Large companies

may use predatory competition to assure their top position.


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Questions you may have include:

How do companies use performance competition to win?

When is head-to-head competition used?

Who uses predatory competition?

Sales Plan

They prepare sales plan. They estimate the sales volume per month and send it to

production department.

Pricing policies

Garden silk mill has no fix price of different yarn and chips. They have 15 – 20 % margin on

manufacturing cost. Price will change according feature of products. The factor affecting pricing

policy is denier and 25% less then reliance industries

Taxes Applicable on Sales Activity

The Garden silk mill ltd has applicable from excise duty, vet and service tax.

Study of Control and Reporting System

Company has its sales executives in Mumbai, and other countries. So they have to control

on them in such a way that they get better performance. They control on them in following way:

Executives have to present weakly reports through E-mail or Fax.

They keep watch on the activity of executive.

They analyze the reports presented by executives

Advertising policy

Partially oriented yarn is an industrial product thus it eliminates a number of

communication tools such as there is no advertisement, no sales promotion or publicity thus

eliminating the non personal communication channels.


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Being an industrial good it makes use of direct marketing such as direct mail,

telemarketing ,newspapers.,periodicals,brochures,magazines etc.It is said to be customized,

up to date and interactive. There is personal face to face interaction with the customers and

even person to audience in form of seminars, trade shows and conferences. This is said to be

an immediate and an interactive method which has distinctive qualities like cultivation and

response.In this industry word of mouth plays a very important role and effects the buying

influence.

Different reports generated in marketing department

Sales report

Weakly executives report

Expenses report

Quality Control:

In this modern world consumers are also very keen therefore they choose the best quality

product. Even Garden Silk Mills Pvt. Ltd. has monopoly on texturising machine but

company does not decrease the quality of the product.

Garden Silk Mills Pvt. Ltd. has its own inspector to inspect the raw materials, semi

finished & product as per specified standard. The main aim of Garden is to maintain the

better quality at a reasonable price. If the product is not according to specified standard

then it is rejected. To get large share of market, quality control is necessary for each &

every unit.

Global Marketing:-

Companies cannot simply stay domestic & expect to maintain their markets. Despite the

many challenges in the international arena, companies selling in global industries need to


P a g e | 35

internationalize their operation. In deciding to go abroad, a company needs to define its

international marketing objectives & policies. The company must determine whether to market

in a few countries or many countries.

A global industry is an industry in which the strategic positions of competitors in major

geographic or national markets are fundamentally affected by their overall global position. It

operates in more than one country & captures R&D, production, logistical, marketing & financial

advantages in its costs & reputation that are not available to purely domestic competitors.

Garden Silk Mills Pvt. Ltd. as a global firm deals with export and import patterns

among the various countries of the world. Value of imports on C.I.F basis in the current year is

rupees 1,99,92,000. Earning in foreign exchange on export of goods calculated on F.B.O basis in

current year is rupees 14,10,42,000. Therefore the company had done the international marketing

on global basis.

Product Mix:

“Product mix is also called as product assortment which is the set of all product lines and items

that a particular seller offers for sale to buyers.”

A company’s product mix has certain width, length, depth and consistency. These concepts are

illustrated for industrial products of Garden Silk Mills Pvt. Ltd.

1. Width: -The width of a product refers to how many different product lines the company

carries. The above table shows a product width of 6 lines.

2. Length: -The length of the product refers to the total number of items in the mix. In the

above table it is 15.

3. Depth: -The depth of a product refers to how many variants are offered of each product in

the line

4. Consistency: -The consistency of a product refers to how closely relate the various

product lines. All the machines are texturising machines in Garden Silk Mills Pvt. Ltd.


P a g e | 36

Responsibility: -

They are responsible to satisfy the customer requirement by adopting better quality of

product.

They are directly responsible to the general manager and the proprietor in-charge.

They are responsible to increase the volume of sales.

They are responsible from inquiry of goods and delivery of product to their customer.

They are responsible for the proportion of discount policy.

They are responsible for checking the account of customer.

They are responsible for attracting new customer for their product.

They are responsible to give the best advertisement in different media through which

attracting number of customers.

Strategies for New Product Development: -

In a growing economy like in India, to be successful in the field of marketing, new

consumer needs must be discovered and satisfied. A new product must be suitable to meet the

changing needs of customer. The life of the firm is closely related to the development of new

products through technological innovation new products means new profits.

For new product development, Garden Silk Mills Pvt. Ltd. is uses following strategies:

First they contact their existing customers to introduce their new machines & also request them

to recognize their products to other interested buyers.

1. They arrange seminars in which they show the features, benefits, advantages of their

products & also explain them how it affects their profit, productivity etc.

2. They also issue prospectus, which contains whole information related to product.

Thus, NPD is an important tool in the hand of firm for increasing their sales.


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Product Life Cycle: -

As every being has life, a product has its life. Industrial goods may have a longer life than

consumer goods. When a product idea is commercialized, the product enters in to the

market & competes with the rivals, for making sales & earning profits. Products, like

human being, have length of life. This has been described as life cycle in human beings &

when applied to products which is called as PLC.

As we know that Garden Silk Mills Pvt. Ltd. produces industrial goods & these goods are

used for producing consumer goods. Industrial goods are long term purchasing decision

FINANCIAL DEPARTMENT

In finance Department Company designed the pure line organization structure. This

department is work as staff position for production and selling/ marketing department.


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INTRODUCTION OF FINANCIAL STATEMENT:-

The major steps associated with accounting work are four as presented below.


Chair man

Director

Finance manager

Chief accountant

Chief account operation

Staff

Bank

dept

Purchase dept,

Sales dept.

final operation

Staff

P a g e | 39

Analysis of each and every transaction to ascertain the amount involved and also

the account to be detailed and credited.

Journalisation, posting to ledger account and the preparation of trial balance

Preparation of financial statement

Analysis and interpretation of financial statements

MEANING:

“Financial statement are interpreted as those statement which show both the performance

and the financial position. They include balance sheet, income statement, fund statement, or any

supporting statements or other presentation of financial data derived from accounting records.”

In brief it includes the figures in summary form of various assets held by the company and also

its liabilities towards outsides including the owner at the end of the last day of an accounting

year. Income statement or P & L account is a statement which shows in summary form, the

revenue and expenses of a business entity for an accounting year. It shows the sales revenue, cost

of sales, gross profit, operating expenses, operating profit, non-trading income and expenses, net

income or loss, tax liabilities, etc.

In brief Profit & Loss Account presents information about the result or outcome of business

operation during an accounting year by matching expenses incurred during an accounting year

against the revenue earned in the last year.

These two basic financial statements are supported by a number of schedules annexure

suplemantary statements, etc. Supplementing the data contained in the balance sheet and the

income statement. Therefore all these in addition to P&L account and Balance Sheet fall within

the scope of financial statement.

TRAITS OF FINANCIAL STATEMENTS:-

Its very well known that the financial statement basically refer to balance sheet and P&L account

or income statement of course this two basic statement are supported by number of schedules.


P a g e | 40

The figures includes in the financial statement are influenced by three important factors. They

are

Recorded facts

Generally accepted accounting principles

Personal judgements

1.Recorded Facts :-

It may be remembered here that the preparation of financial statement is made on the

basis of trail balance which in turn is prepared on the basic of balance in various ledger account.

As is known ledger account are prepared by posting journal entries recorded facts here denote

the figures recorded in journal books, ledger account and trail balance. The financial statement

are prepared on the basis of entries in these book of account any figure wchih does not find place

in the book of account. Any figure which does not find place in the book of account is usually

not taken to the financial statement.

2.Generally Accepted Accounting Principles (GAAPs) :-

GAAPs are in the form of guidelines or rules which are to be used as standards for recording

business transaction in the books of account and their fair presentation in the financial statement.

Because the financial statement have to be prepared in conformity with the gaps.

These includes principles, concepts, conventions and assumption. Consequently the figures in the

financial statement are influenced by the GAAPs.

3.Personal Judgements :-

For a few number of important accounting problems accounts find a number of

alternative solution each being considered by the completent authorities as based on sound

principles. So that the clear financial statement reflects a combination of recorded facts and

figures.Gaaps and personal judgement and these three influence the financial data


P a g e | 41

substantially.Therefore whenever we deal with financial statement. They are to dealts in the light

of these three factors.

USE OF FINANCIAL STATEMENT:-

The following are the important objective or urge of financial statements.

1.Useful Information :

To provide useful information which can gainfully be utilized to predict, compare and evaluate

the earning capability

2.Sufficient Information :-

To provide sufficient information which can be utilized by both the internal and the external

parties to predict, compare and evaluate the financial soundness of the entity. They should also

enables the parties to predict, compare and evaluate the potential funds flow in terms of both

amount, time and associated uncertainty.

3.Required Information :-

To provide required information to enable the users of financial statement to evaluate the ability

or performance of managerial personnel to utilize the company’s resources for the purpose of

accomplishes the primary corporate urge.

4.Primary Information :-

To provide information primarily to those who have limited authority or resources to obtain the

required information.

LIMITATION OF FINANCIAL STATEMENT:-

1.Fulfillment of Statutory Requirements :-

The financial statement which are normally prepared in an absolute manner don’t communicate

much about the profitability, solvency, stability, liquidity, etc. Of the undertaking to the users of

the statements. Because the statement include the figures which don’t speak on their own. Due to


P a g e | 42

this reason, the financial statement are not assisting either the external parties or the internal

parties to take proper decisions through the very purpose of preparing and presenting these

statement is to assist then in this task.

2. Historical Data :-

Financial statement comprises of only the effects on the items of income statement or balance

sheet or both. In brief of variegated types of transaction business. Financial and investment that

have taken place during an accounting year.

3.Interim Reports :-

As is known the financial statement are prepared annually. Therefore they are not capable of

furnishing either the comprehensive or the correct information about the profit, loss, assets,

liability, etc. Because actual profit computed only after winding up of business.

4.Emphasis on only quantitative information :-

Financial statement records dissimilar transaction which can be expressed in terms of money. Of

course, these monetary records or statement are often supplemented by other information.

However, the financial statement exclude the non-monetary facts or attributes which can’t

accurately be expressed in terms of monetary unit when if they are very important.

5.Generally Accepted Accounting Principles :-

Since the preparation of financial statement is governed by the gaaps and since there are number

of diverse accounting solution to each of a few important problems, financial statement do not

depict the reality.

6.Personal Judgement :-

Accounting provides a number of avenues to the personal in charge of preparation of financial

statement to influence the figures.

7. Opportunities for Manipulation :-


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One can find a number of opportunity for manipulated by the management wherin the financial

statement can be prepared in such a way which will suit the wins of management. It is because of

the presence or availability of diverse accounting solution to each of few major items of financial

statement.

Garden Silk Mills

Raw Materials ------------------- in Rs. Cr. -------------------

Mar 2009

Product Name Unit Quantity Value

Purified Terepthalic Acid (PTA) Metric Tones 153,459 598.98

MEG/DMT Metric Tones 59,919 202.33

Yarn Metric Tones 6,667 59.36

Chips Polyester Metric Tones 7,587 49.00

Cloth Lakes Meters 51 11.24

Spin Finish Oil Metric Tones 527 6.79

Others Not Applicable NA 2.61

Total 930.31

Capital Budgeting

The term capital budgeting means planning for capital asset. The capital budgeting decision

mans a decision as to whether or not money should be invested in long term projects. Such

projects may include the setting up of a factory or installing a machinery or certain creating


P a g e | 44

Particulars 2008-09 2009-10

Current Assets

Inventories 185.76 217.55

Sundry debtors 107.9 67.47

Cash Bank Balance 21.75 12.5

Other Current Assets 103.53 138.38

Loans & advances 157.82 204.37

Total 576.76 580.27

Current Liabilities

Sundry Creditors 122.28 65.88

Net Working Capital

(C.A. – C.L.)

454.18 514.39

additional capacities to manufacturing a part which at present may be purchased from outside. It

includes a financial analysis of the various proposals regarding capital expenditure to evaluate

their impact on the financial condition of the company for the proposal to choose the best out of

the various alternatives


P a g e | 45

Working capital management

One of the most important areas in the day to day management of the firm is the

management of working capital. Working capital management is the functional area of finance

that covers all the current account of the firm. It is concerned with management of the level of

individual current asset as well as the management of total working capital.

Working capital refers to the fund invested in current assets, i.e. Investment in stocks,

sundry debtors, cash and other current assets. Current assets are essential to use fixed asset

profitability. For example, a machine can not be used without raw material. The investment on

the purchase of raw material is identified as working capital.

Maximum permissible bank finance

the tandon committee had suggested three methods for determining the

maximum permissible bank finance.

The methods for determining the MPBF are described below:

Method - 1 MPBF = 0.75 (CA – CL)

Method - 2 MPBF = 0.75(CA) – CL

Method – 3 MPBF = 0.75(CA – CCA) – CL

WHERE, CA = Current Assests

CL = Current Liablities

CCA = Core Current Assests

Year-2009-10

Method-1 MPBF = 0.75(CA – CL)

= 0.75(576.76-12 = 340.86Rs.


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Method-2 MPBF = 0.75(CA) – CL

=0.75(576.76) -122.28

= 310.29Rs.

Method-3 MPBF = 0.75(CA – CCA) – CL

= 0.75(576.76-13.71) – 122.28

= 300.01Rs.

Preparation & Analysis of Fund Flow Statement

A fund flow statement provides information on how, during the reporting period, decisions

relating to capital structure, dividend and investment in non current assets have changed the

amount invested in working capital.

Statement of showing increase or decrease in working capital

Particular 2008-09 2009-10 Increase Decrease

Current assets

Stock in trade 185.76 217.55 31.71

Sundry debtors 107.9 67.47 40.43

Cash & bank 21.75 12.5 9.25

Other assests 103.53 138.38 34.25

Loans & advances 157.82 204.37 46.55

Total (a) 576.76 580.27


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Current Liabilities

Sundry Creditors 122.28 65.88 56.4

Total 122.28 65.88

Decrease in working

capital

454.48 138.49 315.99

Fund flow statement

Particular Amount Particular Amount

Issue of Capital - Purchase of F.A. 209.76

Funds from operating Funds for operation 106.23

Decrease in W.C. 315.99

315.99 315.99

Internal Audit and Financial Policy

The internal audit and financial policy are as under:

Financial year started on 1st April

Method of accounting is “mercantile system”

Methods of prepare stock register is “FIFO” (first come first out)

Methods of depreciation is “Return down balance method”

Valuation of closing stock is valued at cost or market price whichever is less.


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Book maintains in computer are cash book, bank book, ledger, sales register, purchase

register, journal, stock register.

Methods To Calculate Depreciation

Depreciation on Fixed Assets is charged on Written Down Value Methods as follows:

The rates derived from the rates provided for the corresponding assets under the

Income-Tax rules in force at the time of purchase or requisition of assets. In respect of

plant & machinery, they are based on normal rates even where the Rules provide for

higher rates.

The rates prescribed under Schedule to the companies act, 1956.

Rate of Depreciation on different assets.

Factory building : 10%

Office building : 5%

Furniture : 10%

Dead stock :10%

Machinery : 15%

Beam balance : 15%

Godown : 5%

Leasehold land is amortized over the period of lease.

No Depreciation is applicable on Land

Profit & loss a/c of garden silk mills


P a g e | 49


ParticularJun '08 Mar '09 Mar '10

………………… In Rs Cr……………………Sales Turnover 1,677.34 1,332.97 2,515.60Other Income 12.79 6.39 4.89Total Income 1,690.12 1,339.36 2,520.50Total Expenses 1,506.96 1,177.11 2,282.09Operating Profit 170.38 155.86 233.51Profit On Sale Of Assets -- -- --Profit On Sale Of Investments

-- -- --

Other Extraordinary Income/Expenses

-- -- --

Total Extraordinary Income/Expenses

-- -- --

Tax On Extraordinary Items -- -- --Net Extra Ordinary Income/Expenses

-- -- --

Gross Profit 183.17 162.25 238.4Interest 57.02 47.24 72.97PBDT 126.14 115.02 165.44Depreciation 57.4 44.86 72.58Depreciation On Revaluation Of Assets

-- -- --

PBT 68.74 70.16 92.86Tax 28.74 19.43 29.94Net Profit 40 50.73 62.92Prior Years Income/Expenses -- -- --Depreciation for Previous Years Written Back/ Provided

-- -- --

Dividend -- -- --

Earnings Per Share 10.45 13.25 16.43Equity 38.29 38.29 38.29Reserves 353.97 -- --Face Value 10 10 10

P a g e | 50

Balance sheet of garden silk mills

particularJun '07 Jun '08 Mar '09

………………………IN Rs. Cr. ………………..Sources Of Funds Total Share Capital 38.29 38.29 38.29Equity Share Capital 38.29 38.29 38.29Preference Share Capital 0 0 0

Reserves 320.68 353.97 396.83Revaluation Reserves 0 0 0Networth 358.97 392.26 435.12Secured Loans 634.92 679.87 838.09Unsecured Loans 56.12 122.28 65.88Total Debt 691.04 802.15 903.97Total Liabilities 1,050.01 1,194.41 1,339.09

Application OfFunds Gross Block 1,096.10 1,128.88 1,338.64Less: Accum. Depreciation 389.87 444.07 488.18

Net Block 706.23 684.81 850.46Capital Work in Progress 15.97 103.53 138.38

Investments 129.36 78.18 51.58Inventories 130.03 185.76 217.55Sundry Debtors 64.74 107.9 67.47Cash and Bank Balance 5.41 21.75 12.5

Total Current Assets 200.18 315.41 297.52Loans and Advances 145.19 157.82 204.37Fixed Deposits 14.01 54.41 60.38Total CA, Loans & Advances 359.38 527.64 562.27

Current Liabilities139.35 169.54 225.04

Provisions 22.54 30.69 38.76Total CL & Provisions 161.89 200.23 263.8

Net Current Assets197.49 327.41 298.47

Miscellaneous Expenses 0.94 0.46 0.2

Total Assets1,049.99 1,194.39 1,339.09

Contingent Liabilities 84.23 278.53 26.72


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HUMAN RESOURCE DEPARTMENT

Introduction

Human resource management may be defined as a set of policies, practices and programmes

designed to maximize both personal and organizational goals. It is the process of binding people

and organizations together so that the objectives of each are achieved.

According to Flippo, personnel management or Human resource management is “the

planning, organizing, directing, and controlling of the procurement, development, compensation,

integration, maintenance and reproduction of Human resource to the end that individual,

organizational, and societal objectives are accomplished.”

In any organization, human resource management is very useful to improve and maintain

relation between management and employee, trade union and management. It works as a watch

dog on each and every activity of employees, management, labour union, etc.

Garden silk mill ltd. has a very well developed human resource management. Mr. Sanjay

agrawal is very helpful person. So he has very good knowledge in the field of human resource.

His assistants also very well related with HRD. Mr. agrawal believes that any organization get

success if there is proper co-ordination between its employees and management.

In this topic we discuss about how human resource department doing its activity to develop

good relation between employee and management to get success.

Study of organization structure to decide what type of organization structure

is designed for company?

In a simple term, structure is the pattern in which various parts or components are

interrelated or interconnected. Thus, organization structure is the pattern of relationships among

various components or parts of the organization. This prescribes the relationships among various

activities and positions. Since these positions are held by various persons, the structure is the

relationships among people in the organization.


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Garden silk mill ltd. have line and staff type of organization structure. Because there is

good relationship between superior and subordinate

Line position

Production department

Selling department

These departments come under staff position because they get advice from finance department

and human resource department in the matters like, purchasing, recruitment, selection, etc.

Study of Bases for Departmentation

The first real task in designing an organization structure is the identification of

activities and to group them properly. The process of grouping the activities is commonly known

as departmentation. The terms used to denote departments that results from departmentation vary

a great deal. In business organization, such terms as division, department, and section are used.

Function wise

The grouping of common or homogeneous activity to from an organization unit is known

as functional departmentation, that is, the units are organized around common functions.

In Garden silk mill ltd., there are four main or basic functions like production, finance,

marketing and human resource management.

Geographical Departmentation

Garden silk mill ltd.is doing export and import of rough and polished diamond, so we can

classify its activity as following departmentation.


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Human Resource Planning Process

Human resource planning is understood as the process of forecasting an organization’s

future demand for, and supply of the right type of people in the right number. It is only after this

that the Human resource planning department can initiate the recruitment and selection process.

Human resource planning is a sub-system in the total organizational planning. Organizational

planning includes managerial activities that set the company’s objectives for the future and

determine the appropriate means for achieving that objective.

Garden silk mill ltd.have design the human resource planning process in its own manner. The

process is as under:

1. Objective

First of all, he (H R Manager) decides the objective of the need of employee. We

can say it as the reason behind need of new employee. The objectives are as follow:

New machinery installed.

Capacity increased.

Current employee leaves the organization.

New branch started.


Head office (mumbai)

Surat

Vareli Jolwa.

Foreign

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2. How many needed?

There is no specific method used by Garden silk mill ltd to decide number of

employee. H R Manager takes decision about number in following manner:

If the new machine will install than need raises according to capacity of machine. For

example one saran machine needs 4 employees.

According to capacity installed.

Fill the post which is vacant

3. Source of employee After deciding number of employee, next step is to find out the best source from

where the company can get good employee. The source of recruitments is as under:

Internal source

Family references

Casual callers

Transfer

Promotion

Past employees

External source

Campus interview(IDI)

Advertisements

Competitors

Placement agencies

Recruitment Process

According to Flippo, recruitment is the process of searching for prospective

employees and stimulating and encouraging them to apply for jobs in an organization. The

process begins when new recruit are sought and ends when their applications are submitted. The

result is a pool of applicant from which new employee are selected.


P a g e | 55

1. Get the information about recruit employee from other department

2. Find the source of manpower

3. Selecting the employee whose character is match with require job

4. Give them information about organization and job

5. Encourage them to apply for job

Selection process

1. Application blank

When employees come for job or apply for the job, he has to fill one blank form

which includes all basic details about him. This form is known as application blank. By this form

company collect basic detail about applicant. H R Manager analyzes that form and selects some

applicant for further process.

This form include following item:

Name

Address (permanent residential

address)

Address (native place address)

Contact no. of both addresses

Educational qualification

Work experience

Strength and weaknesses

Where he work last (address)

Family member

Expected salary

2. Selection test

Work test

After analysis of application blank, the applicants who select are called for work

test. For production employee work test will be take for 2-3 days. During this test the

applicant works in the company as the employee of the organization.


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The work done by applicant is check by production manager. If the quality of work is

good than employee is select and vice versa.

In the work test following point is check:

Speed of work

Quality of diamond prepared by him

regularity

Behavior test

The attitude and behavior is also check along with work test. During the days of

work test applicant’s behavior is supervise by assistant manager (HR). How applicant is

behave with other employee, Nature of applicant, Attitude, etc. are check during behavior

test.

3. Physical check up

The applicant who passed from work test and behavior test are sending for medical

test. The health officer checks every applicant’s physical position is examined. If the employee

has any epidemic disease, eye sight problem, or other problem by which the candidate will not

work properly is rejected.

4. Personal interview

The candidates are interviewed by one of the directors of the company, the head of

the relevant department and also the employees having in depth knowledge regarding the job.

They uses mixed type of interview that is some questions are structured (predetermined) as

well as unstructured [not pre determine). Moreover in this interview the interviewer allows the

interviewee. On the basis of which he evaluates that candidate. The evaluation is done during the

interview and after the interview.

5. Fixing wages

The applicant shows the expected salary in the application blank form. The H R

Manager fixes the wages/salary structure individually for each applicant. For production


P a g e | 57

employee salary is set by wages system. The wages is same for employee. The fix salary is also

there for many posts, it will change according to ability of the applicant.

4. Work appointment

If the salary or wages set by H R Manager is accepted by applicant than he will get

final appointment letter. The date of joining is known to candidate. There is one agreement is

prepared and signed by applicant and H R Manager which include employee code no.,

designation, salary structure, rules and regulation of organization, etc. It is the common

understanding between employee and management that the work and salary offered by

management is accepted by employee

Documents Related to Recruitment and Selection

Garden silk mills ltd. have following kind of document for recruitment and selection:

Application blank Wages structure Physical check up report Appointment letter Agreement between company and employee

Source of Recruitment

Garden silk mills ltd.has mainly following type of employees, each having different source of recruitment.

Highly skilled Skilled Semi skilled Unskilled Trainee

Internal Source

1. Family reference


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Current employee is the main strength of the organization. Every person wants

that his familiar and friend will get good job in good work environment. Garden silk mills ltd. is

known as familiar organization for employee. Whenever company has need of new employee,

the H R manager announce by P.A. (public announcement) system about which department will

need job, nature of job, no. of employee needed, date of interview, etc. if the current employee

want to take new employee than he will inform to H R Manager.

2. Casual callers

Many people want that he will get job in such a big organization.

The work environment is also very good. So many people registered their name for future job.

Company also uses this casual caller application.

3. Transfer

Transfer is also a very good internal source of recruitment. But transfer is not

applicable for every post. For example, for production staff requirement, transfer is not possible.

Transfer can become a good source for following type of job:

Computer operator

Peons

4. Promotion

Promotion is motivational way to fill the job. The people who get promotion will

automatically motivate toward their work. This is specially done when manager level post is

needed to be filling. When any departmental or other manager leave the organization for some

reason, than for this post the best person is junior manager or assistant manager because he work

with senior manager from long time.

5. Past employee


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Many time employees leave the organization because of some personal or other

problem. H R Manager also contacts them for get job again.

External Source

1.Campus interview

It is a good source for getting highly skilled and trained employees. There are many educational

institutes from where company gets employees. Here is one table which showing that for which

job which institute if good:

2. Advertisement

For the post like engineer, computer operator, accountant assistant, signers the

organization give advertisement in internal and external both way. Internally, advertisement

is done by PA system and put notice on board. Externally, for some post advertisement given

in the newspaper, prepare a banner with writing that “wanted good and experienced worker,

date of interview” and put it on the get of the company. They give advertisement in the local

newspaper also.

3.Competitors

If in other company have good signer than company contact him and give him offer of

good salary and facility. Signer is the very important person in the production process,

because the final plan of diamond is prepared by signer.

4.Placement agencies

For some post company get help of some employment agencies. The post filled by

employment agencies is security staff, peons, cleaning staff, etc.

Job Description


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Job Description is a written statement showing job title, tasks, duties and responsibilities

involved in a job. It also prescribes the working conditions, hazards, stress that it can produce

and the relationship with other jobs.

In garden silk mills , H R Manager is not prepared any kind of documents related to job

description. He just give as brief idea about tasks, responsibilities, working condition, and

facility. So we prepared following table showing job description of the two jobs; technician:

Performance Appraisal

According to H R Manager, “Performance Appraisal is very important. By this we can

take decision about particular employee’s productivity. The firm invest behind employee to

provide good environment and facility, so it is necessary to check that whether firm get proper

return of it’s investment or not.” Sometime it may happen that the quality will reduce, efficiency

will decrease at that time performance appraisal is done. Performance appraisal is done in very

good manner. The formal process of performance appraisal of garden silk mil is as under:

Perfomance appraisal form staff

TO BE FILLED IN BY PERONNEL DEPARTMENT

NAME : ………………… EMPLOYEE CODE NO.:………………… FATHER’S NAME :………………… DATE OF JOINING;……………………

DEPARTMENT :………………. SECTION :…………………

JOB TITLE/TRADE:………………. INCREMENT DUE NO :………………….

(TO BE FILLED IN BY APPRAISER) :

FACTORS PLEASE TICK

Good

(the standard of perfomance has been aboe average and exceeds asic requirements)

Average

(Has perfomed up to yhe required standard)

POOR

(not up to the desired standard)


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1. Job knowledge

2. work out-put

3. conduct & attitude

4. Getting alongwith:

(a) cooleagues

(b) Superiors

5. Any other remarks :

6. if poor please indicate action taken :

7.If good please indicate if can be

considered for promotion.

APPRAISER ; ( SECTION HEAD )

NAME SIGNATURE DATE

…………………………………………………………………………………………..

DEPARTMENTAL HEAD :

NAME SIGNATURE DATE

RECOMMENDATIONS OF PERSONNEL DEPARTMENT :

DECISION/REMARKS ;

SIGNATURE

OF

PERSONNEL HEAD

………………………………………………………………………………………………………….


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REMARK:

……………………………………………………………………………………………………

Employ Welfare Activity

Welfare means anything done for intellect ional physical, moral and economic

betterment of the workers, whether by employers, by government or by other agencies,

over and above what is laid down by law, or what is normally expected on the part of the

contracted benefits for which workers may have bargained.

Internal welfare activity

Medical help

Garden silk mill Diamonds have special health officer. This officer runs a clinic

named by garden silk mill “Clinic” situated in building of garden silk mill in which the

employee of garden silk mill and his familiar can get medical facility totally free. If any

employee have a serious diseases and need to do operation at that time if he request for

money than help him financially.

Canteen

In garden silk mill there is no any kind of system to take lunch box from

home and eat during the lunch break. There is big canteen which provides good

and healthy food to every employee with no any charge. The food is prepared

from good quality of material. It is pure vegetarian food. Garden silk mill have

very talented and gentle peons. They provide tea and coffee twice in a day.

Insurance

When the employee die or injured in accident at that time the familiar of the

employee will get financially help. The every employee of Garden silk mill is insurance

policy financial help


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Whenever employees have need of money the owner is always ready to help them

Garden silk mill gives loan at very low interest for many purposes like marriage, house,

etc.

External welfare activity

Medical clinic

Garden silk mill runs clinic for outside people also. The poor people come to this

clinic and get treatment at very low charge. If the patient is very poor and not able to pay

charge than Garden silk mill gives him free treatment.

Donation

Garden silk mill is also gives donation to many charitable trusts, educational

institute, temple, etc.

Employment records

Garden silk mill is keep records of all the employment in file. We also found last 10 yrs employment data there.

Training and Development

Training is bridge the gap between job requirement and present competence of employee.

For improve the quality of work, reduce wastage, increase productivity, keep and maintain control-ordination,

There are mainly three type of training program is organized:

Induction training

Work training


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Behavioral training

a) Induction Training Induction training is specially given when new employee join the organization. When

new employee joins the organization, he doesn’t know that who are the superior and

subordinate, which rules and regulation he has to follow, what is the work environment,

etc. to aware from all this thing to new employee induction training program is organize.

In this program is organized by human resource department. The trainer is decided by the

ISO system.

The following step is followed by H R Manager during induction training.

Meet the new employee in his office personally

Give them necessary detail about the organization.

Understand them the rules and regulation of the organization.

Take him to his superior and subordinate and introduce him (employee) with them.

Provide him the uniform, i-card and tools and other necessary item.

Take him in trust that if he has any problem he can meet H R Manager.

b) Work training The main purpose behind work training is to improve the quality and increase the

productivity. In this training special technician come to organization and explained the

proper method of working. This training is held on every 4-5 month. This is very

beneficial to the firm. The employee can learn how to produce material with minimum

cost and maximum quality. In the diamond industry, quality has more important than

quantity. When new technique and machinery installed at that time work training is very

important.

c)Behavioral training

In this training, the main point of teaching is that how to behave with other. This

training is directly undertaken by H R Manager. He understands employees about moral

of human life, good thinking, way to reach success, keep and maintain control-ordination

with superiors and subordinates. For training sometime they called specialist of different


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knowledge like mind planner, religious person, psychologist, etc. when the complain

about the behavior of any particular employee is coming at that time, H R Manager

organize meeting between this employee and himself and understand the employee about

above thing. This training is especially helpful to resolve the conflict between employees.

How Training needs are identified for existing employees?

Labor Relation and Activities of Trade Union Generally, in textile industry we can not see any kind of trade union

every employee comes in the organization independently. There is one organization

which performs as a well wisher of employee of textile industry named by “The Surat

textile Association”. This organization has some guidelines for the environment and

facility of employee of textile industry. According to this association every industry has

to follow some guidelines as below:

They fix the wage rate. No any organization should have to pay wage lower than.

Guideline about basic facility like water, canteen, etc.

Environment should be clear and healthy.

Provide good uniform and safety device

Incentives

“It is the reward in monetary terms or in the forms which can be expressed or understood

in the monetary terms or payable to or paid to employees for the services rendered by them to the

organization if the expressed or implied terms of employment are fulfilled."

In Garden silk mill, wages and salaries are decided on the base of its requirements, market

rate, ability, knowledge and Government rules & regulation which include basic salary, dearness

allowance, convenience allowance, cumulative income tax, house rent, medical allowances,

professional tax, gratuity, incentive payments i.e. p.f., bonus rate & other benefits mandatory etc

The basic rate of salary decided on mainly three base:


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1. Fix rate (M)

2. Daily rate (D)

3. Weaving piece rate (P)

Motivation System

The Garden silk mill is done very good work for motivate the employee as following:

Motivate them to leave bad habit

Provide good facilities

Work environment is healthy and good

Provide necessary training

Wages and Salary Administration

Wages is the reward in monetary terms or in the forms which can be expressed or

understood in the monetary terms or payable to or paid to employees for the services

rendered by them to the organization if the expressed or implied terms of employment are

fulfilled.

In Garden silk mill, there are both kind of compensation system. Both means piece

wage rate system and fix grade salary.

Wage rate system is applicable for the employees worker who operate the machines),

labour worker who are fix in contract basis)of production department.

Fix grade salary system is applicable for the employees like manager, supervision,

engineer, controlee and receptionist staff, human resource and account department staff,

security, peons and cleaning staff


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SWOT ANALYSIS

SWOT analysis means over all evaluation of thecompany. The full form of SWOT is

Strengths, Weakness,Opportunities and Threats.

Strength

The company must contact with other retail shops and advertise product. The

company also starts new production plant near the residential area.

The company must have monopoly in the Indian markets. The company must

have very highly talented staff in every department. They must have good credit in the

markets.

Weakness

The main weakness of the company is the cost of the productivity is very high.

There is also very unnecessary are staff in production department and also in finance

department.

The company has very poor marketing in India. The company does not contact

with other retail shops.

Opportunities

The high demand of growth of PFY &PFY based fabric in the past and world

trends suggest that it is expected to continue its high growth.


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The company hopes to benefit from this growth especial since it has a product

profile that is highly differentiate. The company enjoys a strong brand image with

customers and its proximity to Surat a key market should provide an advantage.

Threats

Should raw material prices to continue to rise in the industry could slow down.

New expansion by others in the industry could have an impact on margins.

Due to cyclical business trends, profitability will be linked to world wide demand

condition for PFY. A substantial rise in the value of the roué will reduce the cost of

imports and increase competition.


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FINDINGS

Company is not efficient in marketing strategy.

Services which the company provides are very limited.

Company is having fractional number of designs.

The no. of distributions is very less which restricts their product to reach the ultimate

customers.

Company employees the workers on a contractual basis which limits the efficiency of

the employees.

The productivity cost of the company is high.

The production capacity is low as compare to demand in market.


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SUGGESTIONS & RECOMENDATONS

There is no requirement to give any kind of suggestion, but as a part of study it is necessary to give suggestions, which are as under:

Having a wide market itself in India, so they have to focus on high quality product and throuth the quality compete the market.

Export of the company is not adequate so company should step forward for more exports.

It should increase its production so that it can fulfill demand for other states and countries.

The company has very poor marketing in India. The company does not contact with other retail shops so that it should require focus on marketing deparment.

The company should increase its service abilities.

The company has to introduce more and more designs in their products which can attract

customers at the very first sight.

The productivity cost of the company is high so they must reduce their productivity cost.

They should incease the no. of distributors throughout the country so that their product will

reach throughout the country.


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CONCLUSION

I after having visited GARDEN SILK MILL PVT LTD. have learnt and experienced a

lot and it was a pleasant experience for me to know the internal aspects of the organization. I

have got a very positive and co-operative response from every one at GARDEN SILK MILL

PVT LTD.

The get trained in this company, I have not only learned and viewed about the working

of personnel and marketing but have also learned as for as the technical and manufacturing

fields are concerned.

As a MBA student it is compulsory for me to have the best possible knowledge about

industries and about its internal affairs. Due to this industrial visit only I can get the benefit of

visiting and adopting the knowledge by the famous and no:1 company is very effective and

good, their products are of best quality, and pricing policy is also very much appreciable and

done after the study of each & every class of people.


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BIBLOGRAPHY

BOOKS

Production Management……

-Chunawala & Patel

Marketing Management…….

-Philip Kotler,,,,S. A. Sherleker

Personnel Management……..

-Gary Dessler

Financial Management……

-Khan & Jain

-I. M. Panday

WEB SITES:

www.google.com

www.Gardenvareli.com

www.textileindustry.com


http://www.Gardenvareli.com/

http://www.google.com/