industry visit1

8/7/2019 industry visit1

1/47

Acknowledgement

This Project of profile of Industry visit of S KUMAR UNITEX LTD. is

the outcome of not only my diligent endeavor, but also the conducive

effort, corporation and support extended by various individuals.

I wish to express my deep sense of gratitude to all those who

generously helped me in my successful completion of the project work by

sharing their invaluable time and knowledge

I am proud and privileged to express my hurtful of regards to our

respected Mr. SUHAS DHANDE Head of B.com Department renaissance

college of Commerce & Management for giving me opportunity to

prepare a project on the profile study of Industry visit of S KUMAR

UNITEX LTD.

I am proud to express my deep sense of gratitude to our respected

guide Mrs.NAMITA HERVANI/Mr.SONI SIR for her/his content

encouragement, guidance and her/his valuable suggestion as the rendered

me all possible help and guidance while reviewing the manual script and

finalizing the report. For giving me the guidelines for the preparation of

the project.

I specially would like to thank my parents who all the way helped

me mentally and emotionally without them I would not have completed

my project successfully.

I am grateful to all the respondents for their immense and

appreciated help who considered my time just and supplied me data.

THANK YOU

ASHISH CHOUBEY

B.COM(HONS) 3rd sem


2/47

History

The transformation of SKNL took place when Nitin Kasliwal tookover the reins of his family run textiles business, of which SKNL wasthe flagship company. Since assuming control he has created a strongtextiles focused company that is completely professional in structureand management. With a vision to clothe the world, SKNL is arguablythe only Indian textiles player today that is operating across all fibercategories and market segments.

SKNL became a purely textiles and apparel company with no otherbusinesses. With a strong focus on manufacturing especially it set upin addition to its existing manufacturing facilities in Dewas MP, astate of the art luxury suiting plant at Mysore in 1998. With over 4units spread across these 2 locations, the company was set to achievebigger heights.

Challenging circumstances not withstanding SKNL grew at ascorching pace. It developed a wide distribution network of morethan 30,000 agents and dealers. Its deep penetration in all retail

formats helped it ride the boom in consumer spending and growth oforganised retail.

To keep pace with brisk growth in business, teams were strengthenedand infrastructure modernized. Offices, plants, machinery wereupdated in line with the growth outlined for the company.


3/47

Establishment

SKNL is one of Indias leading textile and apparel company withexpertise in multi-fiber manufacturing. The company has extended itspresence in multiple product categories from Fabrics to Apparels and

Home Textiles.

From a turnover of Rs.5 million in 1948, today, the group has come along way in achieving a turnover of Rs. 17 billion. SKNL has setstandards of excellence, acquiring many "firsts" to its credit andcrossing a number of "milestones" in its journey.

As a company that caters to the entire spectrum of the socio-economic segment in the Indian market, SKNL takes upon itself theunique distinction of being the Clothiers To The Nation Today.


4/47

Marketing strategies

Early this month, the super-premium garments segment in India sawa new player. Donna Karan International (DKI), part of the luxurygoods group Louis Vuitton, signed a joint venture agreement withtextiles maker and retailer S Kumars Nationwide.

DKI designs and sells mainly women's apparel, sportwear, accessoriesand shoes under the DKNY and Donna Karan brands. But none ofthese would be part of the joint venture, which will be restricted tomenswear only. Under the deal, which is valid until 2015 with anoption to extend for seven more years, S Kumars will source, designand distribute DKNY menswear globally.

Apart from DKNY stores, S Kumars will be supplying DKNYmenswear products to all the departmental stores worldwide, largeformat stores and multi brand outlets. SKNL UK will work with theDKNY team to conceptualise and design products, which will then besourced from various places like China, India, Japan, Vietnam, Italyand Paris.

Nitin Kasliwal, vice chairman of S Kumars, says the tieup will allowthe company to spread its wings across the world with a highlyrecognised and recalled brand. The JV is targeting revenues of $300million in five years and S Kumars Nationwide is investing $20-$25million in working capital over three years. Its a high marginbusiness, EBITDA (margins) would be over 20 per cent, Kasliwalsays.

Kasliwals optimism may not be off the mark. Heres why. CRISIL

Research head Sridhar Chandrasekhar says global garment brandshave been making an entry into the Indian market and its onlynatural for a textile player like S Kumars to look for an opportunitylike this, as the segment offers high margins.

Rough estimates suggest that the super-premium segment in India isaround 5 per cent of the overall Rs 30,000 crore garments market but


5/47

is expected to reach 15-20 per cent in the next five years. Thissegment caters to the elite class who are frequent fliers abroad, saysRahul Mehta, president of Clothing Manufacturers' Association ofIndia (CMAI).

Thats a market with a huge potential, says Kasliwal. Competitors likeRaymond agree too. For example, Ram Bhatnagar, president(international marketing), Raymond, says There are severalinternational brands which are licensed to Indian textile players.Around 300 million people in the country prefer branded apparels ashousehold income is on the rise. The domestic textile market is likelyto grow by over 15 per cent per annum.

Demand is picking up for super-premium products as the market is

steadily developing in India. But from the competition point of view,the space is not yet crowded, says Rakesh Dalmia, president, CenturyTextiles. Other ready-to-wear brands operating in the same segmentinclude Tomy Hilfiger, FCUK, Diesel and Hugo Boss among others.

Though Raymonds is a strong competitor, it is more into formals anddoes not have presence in the casual wear segment, something that iscatching up fast in India.

Suits of DKNY are being retailed worldwide in the range of $ 500-700

whereas shirts are available in $ 70-140. Among other offerings,

T-shirts and jeans are in the range of $ 30-75 and $ 50-100,respectively. DKNY's menswear that we will supply would includeformals, casuals, suits, jackets, trousers, knitwear, jeans, autowearand sports jackets among others. The range is huge, says Kasliwal.

What will work in S. Kumars favour is that it is not new to tieups withoverseas companies. In February this year, S Kumars group firmBrandhouse Retail formed a joint venture with Italian apparel brand

Oviesse.

In August last year, S Kumars bought Chicago-based clothierHartmarx Corp., now called Hartmarx Operating Co. Llc, its largestacquisition in recent times. Hartmarx is developing a wholesale andretail channel in Europe and has identified around 100 points of sale.


6/47

The company also sells UKs Stephens Brothers menswear line inIndia through 10 outlets.

It is not new either in the premium end of the Indian market withdominant brands like Reid & Taylor, Belmonte and Stephens

Brothers, which are doing quite well in India.

However, some analysts say bringing in a new brand in the super-premium segment is not an easy task as the market, though growing,is still limited in its size,

There is already a clutch of other foreign super-premium brands likeSalvatore Ferragamo, Canali and Boggi are also in India alltargeting young urbanites in mega cities across the age group of 25-45years with a focus on professionals, corporate and businessmen alike.

Also, the presence of these brands has been quite limited for severalreasons, the most important being India is an extremely price-sensitive market. Menswear players operating in the Rs 800-plusclothing category often find the going tough as far as expansion isconcerned.

So S Kumar has its task cut out.


7/47

Market position

S. Kumars is a household name in India while Reid & Taylor hashigh brand recall rate of 84% as per study conducted by ACNielsen. SKNL has a well-established marketing network of over 300wholesale dealers and about 30,000 retailers spread across thethe country. The company has developed strong familialrelationships with its distributors based on mutually beneficialrelationships nurtured over five decades of trust. Reid & Taylor has 8,000 retail outlets and 16 exclusive stores (10fit outs) across 300 cities. SKNL also sells the uniform range directly to corporates,institutions, factories, government and semi government bodies,the armed forces and other institutions, thus emerging as thelargest institutional supplier in the organized sector of the industry. Institutional customers include Essar, Indian Oil Corporation,JetAirways, Sahara Airlines, Maruti etc. Reid & Taylor, Scotland, serves as a channel to Global Markets

and provides access to top brands worldwide viz: Prada, Brioni,

Hackett, Dunhill, Kiton, etc.


8/47

Human resources

The Company is managed under the guidance of a broad-basedBoard of Directors who bring expertise from various businessVocations. The distinguished Board has members fromindustry, banking, economics and other professions. The day today affairs of the company are looked after by the ManagingDirector Mr. Nitin Kasliwal, who is assisted by a strong team oftechnocrats and professionals occupying key management andadministrative positions.

Board Of Director

Dr. A. C. Shah

Chairman

Mr. Nitin S. Kasliwal

Managing Director and ViceChairman

Mr. Anil Channa

Deputy ManagingDirector

Mr. Vijay Kalantri

DirectorMrs. Jyoti N. Kasliwal

DirectorMr. Martin Henry

Director


9/47

Mr. Dara D. Avari

DirectorMr. Jitendra Balakrishnan

DirectorMr. Denys Frith

Director

Mr. Anish ModiDirector

Mrs. Amita NarainDirector

Mr. Vinayshil GautamDirecto


10/47

Marketing management

The Company has developed progressive management capabilitiesdue to a unique fusion of entrepreneurship with professionalexpertise. This combination ensures that dynamism is blended withrealism and that adequate control mechanisms are in place. EachSBU is headed by an Executive Director, CEO or COO. The corporatefinance, corporate planning, research, publicity, marketing services,HRD and legal functions are centralized at the corporate level. HighManagement caliber and an organized set up ensure a smooth andmeaningful enterprise with ample opportunity for future planningand growth.SKNL businesses are divided product wise into major StrategicBusiness Units viz, Consumer Textiles, Home Textiles, WorstedSuitings, Ready to Wear and High Value Fine Cotton (HVFC).


11/47

Sales/Marketing management

Manufacturing:Maintaining world-class quality has been a corner stone in SKNL'sbusiness strategy. The company has invested extensively in

manufacturing facilities to maintain high quality standards. Fourstate of art manufacturing units based in Mysore (Karnataka) andDewas (Madhya Pradesh) collectively produce over 2,00,000 metersof high-quality fabrics each day.The manufacturing capability gives SKNL a clear edge in the marketplace - stringent quality measures and competent managementsystems ensure that the finest product reaches the consumers,consistently.

Luxury Textile fabrics are manufactured at a world-class integratedfacility situated near Mysore (Karnataka). Its high quality fabrics arewell received in the domestic as well as international market. In fact,Reid & Taylor - Scotland, sources its fabrics from this mill as well forits international markets.SKNL is the only manufacturer of fine count Damask in India. ItsChamunda Standard Mills and Amana Manufacturing Unit in theoutskirts of Dewas (Madhya Pradesh) manufactures this fine fabric to

cater to Indian & European markets.The company is constantly modernizing and upgrading its existingfacilities for Consumer Textiles and Home Textiles. Plans on the anvilare to add new capacity to manufacture Worsted Suitings and HomeTextiles.Distribution:The companys wide network reaches both domestic as well asoverseas market. SKNL caters to the entire socio-economic segmentsof the Indian market across 30,000 outlets through 300 dealers.Today, SKNL is the largest institutional supplier in India in theorganized sector. The company plans to establish high impactpresence through multi-brand outlets, large format chain stores and


12/47

exclusive stores for all its brands.Brands:Ability to build brands, across the socio-economic segments has beenone of the key factors in SKNL's success. A keen understanding of thedynamic market trends, while keeping abreast with the changingusage patterns, attitudes and preferences of the consumers has beenthe foundation of creating successful brands.Reid & Taylor caters to the premium and upper-middle strata of theIndian suiting market. Since its national launch in 1999, the brandhas accelerated to the second position in a highly competitive market.The brand's growth has been hailed by marketing professionals and isa case study for launching international brands in India. No surprise

that Superbrands Council, the worlds leading authority on marketingand advertising; has awarded it a Superbrand status, second timerunning.Belmonte offers a wide range of polyester and viscose blend fabricsfor office, leisure and evening wear catering to the mid-premiumconsumer. It is available across top 100 cities in India. Uniformity byBelmonte is the sub-brand which offers a wide range of uniformfabrics for professional work-wear across industries.

S.Kumars is the manufacturer of blended fabrics for work-wear &daily wear. With strong brand equity and unique strengths, the brandhas evolved to include fashionable blended suitings in line with workwear & daily wear for the common man of today.Carmichael House is a new entrant in the Home Textile category. Thismass premium brand offers a wide range of home textile solutions forthe entire abode in a variety of fabrics and weaves. Since its launch,Carmichael House, has received fast recognition among its

consumers.Human Capital:SKNL has developed highly effective management capabilities due toa unique fusion of entrepreneurship with professional expertise. TheBoard of Directors includes eminent people from industry, law,banking, finance and economic sectors.


13/47

Production

Consumer textiles:-

Consumer Textiles include Uniforms, Work-Wear and Suitings madefrom blended polyester viscose and polyester cotton fabrics.Belmonte, the mid premium menswear brand offers a wide range ofpolyester and viscose blend fabrics for office, leisure and eveningwear. Uniformity by Belmonte offers work-wear and uniform fabricwhile S.Kumars offers work-wear and daily wear for the commonman.

SKNL provides unparalleled range of Uniform fabrics for schools, thearmed forces, hospitals, airlines and a host of other industries. Itsplain weave blends of polyester viscose and polyester cotton areavailable in more than 150 classic shades, the largest spectrum ofcolors available.

Total home expressions

Total Home Expressions division manufactures and markets hometextiles - bed sheets, sheeting fabrics, made-ups with significantemphasis on the export market. The products made include Damask,

Grey Sheeting Fabric and Cotton Jacquard for the domestic andinternational markets. The primary manufacturing facility,Chamunda Standard Mills at Dewas, Madhya Pradesh and anotherstate-of-the-art (in the vicinity) have a combined capacity tomanufacture 1 million metres of 100% cotton, single yarn damaskfabrics, annually. SKNL is reported to be the sole manufacturer offine count Damask in India.

SKNL launched Carmichael House in the mid-premium segment. Thebrand offers a wide range of bed covers, bed sheets and pillowcase

sets,variety of terry towels, duvet covers and upholstery for use in theentire home. The brand is distributed through multi-brand outletsand exclusive brand stores.

SKNL plans to launch a brand in the economy segment to meet thegrowing demand of the middle-class consumers for quality homelinen products. At the top end of the market launch of an


14/47

international brand by SKNL is in the pipeline. This will enable SKNLto cover all segments of the entire market spectrum.

Total wardrobe solutions

The past decade has witnessed remarkable growth in the ready-to-wear industry. India is now home to many international brands thatoffer the world's best business, evening and leisure wear in a retailenvironment that is truly global.

For the globally aspirational Indian, the world has come calling in hisneighbourhood. A trend of fashion sensitive men taking to accessoriesthat make a statement is in evidence. SKNL has been quick to buildon the opportunity and has developed a five-tiered model for its forayinto the sector. As a distinct market differentiator, SKNL offers theconsumer 'Total Wardrobe Solutions' through its brands.

Total Wardrobe Solutions implies a complete offering in terms offormal, leisure, evening wear and accessories. This is in contrast tothe prevalent practice of launching a limited range of products andreflects SKNL's understanding of the consumer.

The Company has positioned Reid & Taylor apparel brand in thepremium men's wear market. This reinforces the existing premium

positioning of the Reid & Taylor fabric brand. The brand is targeted atthe discerning male customers who believe in the best and belong tothe upper-end and upper-middle strata of the socio-economicsegment. Reid & Taylor apparel offers two distinct lines of fashion -Legends (Formal wear) and Sport (Smart Casuals). Premiumaccessories like ties, belts and cufflinks complement these lines.

Belmontes range of ready-to-wear addresses the mid-premiumconsumer. The apparel is designed to meet the demands of the styleconscious but value-driven young consumers. The key success factor

is the creation of an intensive distribution network, which covers thetop 100 cities in India backed by an efficient supply chain.

Stephens Brothers is a part of the globally renowned Austin ReedGroup Limited, the India license for the brand is with SKNL andretailed by Brandhouse Retails Ltd. (BHRL). The brand has beenImpeccably English since inception and so it remains till date true to


15/47

highest standards of English clothing. The line encompasses theentire spectrum of business attire with superlative fabrics anddetailing. Suits for both ladies and gentlemen are crafted from thefinest lightweight pure wool and pure linen fabrics, that are easy towear and comfortable through the year.

For the mid to low price segment the company offers S.Kumarsready-to-wear which is available across multi-brand outlets, exclusivebrand outlets and value shops in select markets. This apparel rangeoffers the value-for-money proposition that is synonymous with theS.Kumars brand.

Baruche superfine cottons

Baruche Superfine Cottons is a business initiative of S. KumarsNationwide Limited, Indias leading textile conglomerate, focusedupon the global market for high value fine cotton fabrics for shirts. Inaddition to the SKNL pedigree, Baruche has the competence to createbest in class products for luxury and premium apparel brands.Baruche places specific emphasis on design and development, bothcollection led and customer-centric. Baruche has set up a state-of-the-art manufacturing facility with integrated quality assurance systems,led by a strong international management team.

Product

Baruche Superfine Cottons offers a wide range of shirting fabrics inStripes, Checks, Warp & Weft Chambrays, Fil-a-Fils along with Dyedsand Optical Whites.

Yarns used are only of the highest quality spun from the best qualitycotton fibres viz. Giza, Pima & Suvin. The Baruche product rangeincludes design collections based on seasonal trends and also

customized as per requirements.

Gassed cotton yarn shirting fabrics are available in double 80s /100s / 120s / 140s count. Compact cotton yarn fabrics are availablein single 50s / 60s / 70s.


16/47

Value-added fibre blends like Linen, Modal, Lycra and others are alsoavailable.Weaves offered are Plain, Twills, Oxfords, Matts, Piques,Dobbies, Highly Structured & Double Beam.

Baruche Superfine Cottons has advanced technology to offer

customized finishes. These include Easy-to-Iron, Wrinkle Free, Nanofinishes, Anti-Microbial, Moist Cure and others.

A wide range in the Never-out-of-stock collection is also available forquick shipments.

Baruche will offer Full Package Solutions produced by a speciallyestablished in-house shirt making unit soon.


17/47

What I Observed

1 Processing of cotton

1.1 Preparatory processes- preparation of yarn

1.2 Spinning- yarn manufacture

1.2.1 Measurements

1.3 Weaving-fabric manufacture

1.3.1 Measurements

1.3.2 Associated job titles

1.3.3 Issues

1.4 Knitting- fabric manufacture

1.5 Finishing- processing of textiles

1.6 Economic, environmental and political consequences

of cotton manufacture


18/47

Processing of cotton

Cotton

Manufacturing

Processes (afterMurray 1911)

Bale Breaker

Blowing Room

Willowing

Breaker Scutcher

Batting

Finishing Scutcher

Lapping

Carding

Carding Room

Silver Lap

Combing

Drawing

Slubbing

Intermediate

Roving Fine Roving

Mule Spinning - Ring Spinning

Spinning

Reeling Doubling


19/47

Winding

Bundling

Bleaching

Winding

Warping

Cabling

Sizing/Slashing/Dressi

ngGassing

Weaving

Spooling

Cloth

arn (Cheese)- -

Bundle Sewing Thread


20/47

Preparatory processes- preparation of yarn

y Ginning, bale-making and transportation is done in thecountry of origin.

y Opening and cleaning

Platt Bros. PickerCotton mills get the cotton shipped to them in large, 500 poundbales. When the cotton comes out of a bale, it is all packedtogether and still contains vegetable matter. The bale is brokenopen using a machine with large spikes. It is called anOpener.In order to fluff up the cotton and remove thevegetable matter, the cotton is sent through a picker, or similarmachines. Apicker looks similar to the carding machine and

the cotton gin, but is slightly different. The cotton is fed into themachine and gets beaten with a beater bar, to loosen it up. It isfed through various rollers, which serve to remove the vegetablematter. The cotton, aided by fans, then collects on a screen andgets fed through more rollers till it emerges as a continuous softfleecy sheet, known as a lap.


21/47

y Blending,

Mixing & Scutching

Scutching refers to the process of cleaning cotton of its seeds and

other impurities. A scutching machine for cotton was first invented in1797, but didn't get much attention until it was introduced inManchester in 1808 or 1809. By 1816 it had been generallyadopted.[5] The scutching machne worked by passing the cottonthrough a pair of rollers, and then striking it with iron or steel barscalled beaters. The beaters, which turn very quickly, strike the cottonhard and knock the seeds out. This process is done over a series ofparallel bars so as to allow the seeds to fall through. At the same timea breeze is blown across the bars, which carries the cotton into a

cotton chamber.

y Carding

Main article: Carding


22/47

Carding machineCarding: the fibres are separated and then assembled into a loosestrand (sliver or tow) at the conclusion of this stage.The cotton comes off of the picking machine in laps, and is then takento carding machines. The carders line up the fibres nicely to makethem easier to spin. The carding machine consists mainly of one bigroller with smaller ones surrounding it. All of the rollers are coveredin small teeth, and as the cotton progresses further on the teeth getfiner (i.e. closer together). The cotton leaves the carding machine inthe form of a sliver; a large rope of fibres.Note: In a wider sense Carding can refer to these four processes:Willowing- loosening the fibres; Lapping- removing the dust to createa flat sheet or lap of cotton; Carding- combing the tangled lap into a

thick rope of 1/2 in in diameter, a sliver; and Drawing- where adrawing frame combines 4 slivers into one- repeated for increasedquality.

y Combing is optional,but is used to remove the shorter fibres,creating a stronger yarn.


23/47

A Combing machine

y Drawing the fibres are straightened

Several slivers are combined. Each sliver will have thin and

thick spots, and by combining several slivers together a moreconsistent size can be reached. Since combining several sliversproduces a very thick rope of cotton fibres, directly after beingcombined the slivers are separated into rovings. These rovings(or slubbings) are then what are used in the spinning process.

Generally speaking, for machine processing, a roving is aboutthe width of a pencil.

y Drawing frame: Draws the strand outy Slubbing Frame: adds twist, and winds on to bobbinsy Intermediate Frames: are used to repeat the slubbing

process to produce a finer yarn.y Roving frames: reduces to a finer thread, gives more twist,

makes more regular and even in thickness, and winds onto a smaller tube.

Spinning- yarn manufacture

Main article: Cotton-spinning machinery

y Spinning

The spinning machines take the roving, thins it and twists it,creating yarn which it winds onto a bobbin.In mule spinning the roving is pulled off a bobbin and fedthrough some rollers, which are feeding at several differentspeeds.This thins the roving at a consistent rate. If the rovingwas not a consistent size, then this step could cause a break inthe yarn, or could jam the machine. The yarn is twisted through

the spinning of the bobbin as the carriage moves out, and isrolled onto a cop as the carriage returns. Mule spinningproduces a finer thread than the less skilled ring spinning .

y The mule was an intermittent process, as the frameadvanced and returned a distance of 5ft.It was thedescendant of 1779 Crompton device. It produces a softer


24/47

less twisted thread that was favoured for fines and forweft.

y The ring was a descendant of the Arkwright water Frame1769. It was a continuous process, the yard was coarser,had a greater twist and was stronger so was suited to bewarp. Ring spinning is slow due to the distance the threadmust pass around the ring, other methods have beenintroduced. These are collectively known as Break orOpen-end spinning.

Sewing thread, was made of several threads twisted together, ordoubled.

y Checking

This is the process where each of the bobbins is rewound to givea tighter bobbin.

y Folding and twisting

Plying is done by pulling yarn from two or more bobbins andtwisting it together, in the opposite direction that in which itwas spun. Depending on the weight desired, the cotton may ormay not be plied, and the number of strands twisted together

varies.[15]

y Gassing

Main articles: Singe#Textiles and GassingGassing is the process of passing yarn, as distinct from fabricvery rapidly through a series of Bunsen gas flames in a gassingframe, in order to burn off the projecting fibres and make thethread round and smooth and also brighter. Only the betterqualities of yarn are gassed, such as that used for voiles,

poplins, venetians, gabardines, many Egyptian qualities, etc.There is a loss of weight in gassing, which varies' about 5 to 8per cent., so that if a 2/60's yarn is required 2/56's would beused. The gassed yarn is darker in shade afterwards, but shouldnot be scorched.


25/47

Mule spinning

Measurements

Main article: Units of textile measurement

y Cotton Counts: The number of pieces of thread, 840 yards longneeded to make up 1 lb weight. 10 count cotton means that10x840 yd weighs 1 lb. This is coarser than 40 count cottonwhere 40x840 yards are needed. In the United Kingdom,Counts to 40s are coarse (Oldham Counts), 40 to 80s aremedium counts and above 80 is a fine count. In the UnitedStates ones to 20s are coarse counts.

y Hank: A length of 7 leas or 840 yardsy Thread: A length of 54 in (the circumference of a warp beam)y Bundle: Usually 10 lby Lea: A length of 80 threads or 120 yards .y Denier: this is an alternative method. It is defined as a number

that is equivalent to the weight in grams of 9000m of a singleyarn. 15 denier is finer than 30 denier.

y Tex: is the weight in grams of 1 km of yarn.

The worsted hank is only 560 yd.


26/47

Weaving-fabric manufacture

The weaving process uses a loom. The lengthway threads are knownas the warp, and the cross way threads are known as the weft. Thewarp which must be strong needs to be presented to loom on a warp

beam. The weft passes across the loom in a shuttle, that carries theyarn on a pirn. These pirns are automatically changed by the loom.Thus, the yarn needs to be wrapped onto a beam, and onto pirnsbefore weaving can commence.

y Winding

After being spun and plied, the cotton thread is taken to awarping room where the winding machine takes the requiredlength of yarn and winds it onto warpers bobbins

y Warping or beaming

A WarperRacks of bobbins are set up to hold the thread while it is rolledonto the warp bar of a loom. Because the thread is fine, often

three of these would be combined to get the desired threadcount.[citation needed].

y Sizing

Slasher sizing machine needed for strengthening the warp byadding starch to reduce breakage of the yarns .


27/47

y Drawing in, Looming

The process of drawing each end of the warp separately throughthe dents of the reed and the eyes of the healds, in the orderindicated by the draft.

y Pirning (Processing the weft)

Pirn winding frame was used to transfer the weft from cheesesof yarn onto the pirns that would fit into the shuttle

y Weaving

Main article: Power loomAt this point, the thread is woven. Depending on the era, one

person could manage anywhere from 3 to 100 machines. In themid nineteenth century, four was the standard number. Askilled weaver in 1925 would run 6 Lancashire Looms. As timeprogressed new mechanisms were added that stopped the loomany time something went wrong. The mechanisms checked forsuch things as a broken warp thread, broken weft thread, theshuttle going straight across, and if the shuttle was empty. Fortyof these Northrop Looms or automatic looms could be operatedby one skilled worker.


28/47

A Draper loom in textile museum, Lowell, Massachusetts

The three primary movements of a loom are shedding, picking,and beating-up.

y Shedding: The operation of dividing the warp into twolines, so that the shuttle can pass between these lines.There are two general kinds of sheds-"open" and "closed."Open Shed-The warp threads are moved when the patternrequires it-from one line to the other. Closed Shed-Thewarp threads are all placed level in one line after eachpick.

y Picking:The operation of projecting the shuttle from sideto side of the loom through the division in the warp

threads. This is done by the overpick or underpickmotions. The overpick is suitable for quick-runninglooms, whereas the underpick is best for heavy or slowlooms.

y Beating-up: The third primary movement of the loomwhen making cloth, and is the action of the reed as itdrives each pick of weft to the fell of the cloth.

The Lancashire Loom was the first semi-automatic loom.Jacquard looms and Dobby looms are looms that have

sophisticated methods of shedding. They may be separatelooms, or mechanisms added to a plain loom. A Northrop Loomwas fully automatic and was mass produced between 1909 andthe mid 1960s. Modern looms run faster and do not use ashuttle: there are air jet looms, water jet looms and rapierlooms.

Measurements

y Ends and Picks: Picks refer to the weft, ends refer to the warp.

The coarseness of the cloth can be expressed as the number ofpicks and ends per quarter inch square, or per inch square.Ends is always written first. For example: Heavy domestics aremade from coarse yarns, such as 10's to 14's warp and weft,and about 48 ends and 52 picks.


29/47

Associated job titles

y Piecery Scavengery Weavery Tacklery Draw boyy Pirner

Issues

When a hand loom was located in the home, children helped with theweaving process from an early age. Piecing needs dexterity, and achild can be as productive as an adult. When weaving moves from thehome to the mill, children were often allowed to help their oldersisters, and laws have to be made to prevent child labour becomingestablished,

Knitting- fabric manufacture


30/47

A circular knitting machine.

Close-up on the needles.

Knitting by machine is done in two different ways; warp and weft.Weft knitting (as seen in the pictures) is similar in method to handknitting with stitches all connected to each other horizontally. Variousweft machines can be configured to produce textiles from a singlespool of yarn or multiple spools depending on the size of the machinecylinder (where the needles are bedded). In a warp knit there aremany pieces of yarn and there are vertical chains, zigzagged togetherby crossing the yarn.

Warp knits do not stretch as much as a weft knit, and it is run-resistant. A weft knit is not run-resistant, but stretches more. This isespecially true if spools of Lycra are processed from separate spoolcontainers and interwoven through the cylinder with cotton yarn,giving the finished product more flexibility and making it less proneto having a 'baggy' appearance. The average t-shirt is a weft knit.


31/47

Finishing- processing of textiles

The grey cloth,woven cotton fabric in its loom-state, not only

contains impurities, including warp size, but requires furthertreatment in order to develop its full textile potential. Furthermore, itmay receive considerable added value by applying one or morefinishing processes.[25][26]

y Desizing

Depending on the size that has been used, the cloth may besteeped in a dilute acid and then rinsed, or enzymes may beused to break down the size.[27]

y Scouring

Scouring, is a chemical washing process carried out on cottonfabric to remove natural wax and non-fibrous impurities (eg theremains of seed fragments) from the fibres and any addedsoiling or dirt. Scouring is usually carried in iron vessels calledkiers. The fabric is boiled in an alkali, which forms a soap withfree fatty acids. (saponification). A kier is usually enclosed, sothe solution of sodium hydroxide can be boiled under pressure,excluding oxygen which would degrade the cellulose in thefibre. If the appropriate reagents are used, scouring will alsoremove size from the fabric although desizing often precedesscouring and is considered to be a separate process known asfabric preparation. Preparation and scouring are prerequisitesto most of the other finishing processes. At this stage even themost naturally white cotton fibres are yellowish, and bleaching,the next process, is required.

y Bleaching

Main article: Textile bleachingBleaching improves whiteness by removing natural colorationand remaining trace impurities from the cotton; the degree ofbleaching necessary is determined by the required whitenessand absorbency. Cotton being a vegetable fibre will be bleached


32/47

using an oxidizing agent, such as dilute sodium hypochlorite ordilute hydrogen peroxide. If the fabric is to be dyed a deepshade, then lower levels of bleaching are acceptable, forexample. However, for white bed sheetings and medicalapplications, the highest levels of whiteness and absorbency areessential.[28]

y Mercerising

Main article: Mercerized cottonA further possibility is mercerizing during which the fabric istreated with caustic soda solution to cause swelling of the fibres.This results in improved lustre, strength and dye affinity.Cotton is mercerized under tension, and all alkali must be

washed out before the tension is released or shrinkage will takeplace. Mercerizing can take place directly on grey cloth, or afterbleaching.Many other chemical treatments may be applied to cottonfabrics to produce low flammability, crease resist and otherspecial effects but four important non-chemical finishingtreatments are:

y Singeing

Main article: Singe#TextilesSingeing is designed to burn off the surface fibres from thefabric to produce smoothness. The fabric passes over brushes toraise the fibres, then passes over a plate heated by gas flames.

y Raisingy Calendering

Main article: CalenderCalendering is the third Another finishing process is raising.

During raising, the fabric surface is treated with sharp teeth tolift the surface fibres, thereby imparting hairiness, softness andwarmth, as in flannelette.important mechanical process, in which the fabric is passedbetween heated rollers to generate smooth, polished orembossed effects depending on roller surface properties andrelative speeds.


33/47

y Shrinking (Sanforizing)

Main article: SanforizationFinally, mechanical shrinking (sometimes referred to assanforizing), whereby the fabric is forced to shrink width

and/or lengthwise, creates a fabric in which any residualtendency to shrink after subsequent laundering is minimal.

y Dyeing

Main article: DyeingFinally, cotton is an absorbent fibre which responds readily tocolouration processes. Dyeing, for instance, is commonlycarried out with an anionic direct dye by completely immersingthe fabric (or yarn) in an aqueous dyebath according to aprescribed procedure. For improved fastness to washing,rubbing and light, other dyes such as vats and reactives arecommonly used. These require more complex chemistry duringprocessing and are thus more expensive to apply.

y Printing

Main article: Textile printingPrinting, on the other hand, is the application of colour in theform of a paste or ink to the surface of a fabric, in apredetermined pattern. It may be considered as localiseddyeing. Printing designs on to already dyed fabric is alsopossible.


34/47

Economic, environmental and political consequences ofcotton manufacture

The growth of cotton is divided into two segments i.e. organic andgenetically modified.. Cotton crop provides livelihood to millions of

people but its production is becoming expensive because of highwater consumption, use of expensive pesticides, insecticides andfertiliser. GM products aim to increase disease resistance and reducethe water required. The organic sector was worth $583 million. GMcotton, in 2007, occupied 43% of cotton growing areas.

The consumption of energy in form of water and electricity isrelatively high, especially in processes like washing, de-sizing,bleaching, rinsing, dyeing, printing, coating and finishing. Processing

is time consuming. The major portion of water in textile industry isused for wet processing of textile (70 per cent). Approximately 25 percent of energy in the total textile production like fibre production,spinning, twisting, weaving, knitting, clothing manufacturing etc. isused in dyeing. About 34 per cent of energy is consumed in spinning,23 per cent in weaving, 38 per cent in chemical wet processing andfive per cent in miscellaneous processes. Power dominatesconsumption pattern in spinning and weaving, while thermal energyis the major factor for chemical wet processing


35/47

A study on Competitive Staregy aspect of Textile Industrywith special regards to S kumar Ltd.S.Kumars Nationwide Limited (SKNL) is the only textile major in thecountry operating in all fibre categories with strong and wellestablished brands across all price points: S. Kumars in theeconomy segment, Tamarind in the mid-price segment andReid & Taylor in the Premium segment. SKNL is a leader in the uniform segment with 30% marketshare inthe organized sector and the largest institutional supplier ofuniforms.

The company is also the second largest integrated player inthepremium worsted fabrics segment in India.The firm has a wide distribution network in the domesticmarketwith over 300 dealers & 30,000 retail outlets for the S. Kumarsbrand; 16 exclusive, 8,000 retail outlets Reid & Taylor brand and 4state-of-the-art manufacturing units producing over2,00,000

meters fabric/ day.SKNL has strong leadership from promoters with over fivedecades of experience in the textile industry and an experiencedprofessional management team heading the 4 major StrategicBusiness Units: Consumer Textiles, Home Textiles, WorstedSuitings and Ready to Wear Solutions.SKNL has turned around in FY05 with a well planned

Turnaround and Growth strategy (TAG). Interest rate has beenreduced from 15.6% to less than 7% and the repayment programmehas been attuned to the projected cash flow of the company.The company has embarked on strategic initiatives ofmodernization and capacity expansion of its exiting SBUs with aninvestment of Rs 3,460mn by FY


36/47

Investment argumentsExpansion to drive future revenue growth: Revenues to growat aCAGR of 21% over next 4 years driven by:o Fresh investments to meet increasing demand. SKNL isdoubling its current capacity from 4.8mn meters to 9.6mnmeters at the Reid & Taylor (R&T) plant with an investmentof Rs 760mn, which is expected to increase sales to Rs3,624.5mn in 2009.o Foray into High Value Fine Cotton (HVFC) Shirtings:SKNL is entering the HVCF segment with an investment ofRs 900mn in two phases which would start contributing tothe top-line and profitability by FY08. Total market for

HVFC shirting is approximately 550 600mn meters.Given the lack of high quality low cost manufacturers ofHVFC in India, the segment is expected to contribute 15%to the top line by 2010.Focus on high growth retail sector:oWith strong and well established brands in keycategories: S.Kumars in the economy segment,Tamarind in the mid-price segment and Reid & Taylorin the Premium segment, SKNL is targeting 300 retail

stores and 200 multi-brand outlets in a five-year time frameto further strengthen its distribution network.o Targeting new segments with the introduction of newReady To Wear (RTW) brands viz, Balmoral (Luxury RTW)and World Player (Economy RTW).


37/47

Investments risks

Industry risksInfrastructure constraint and bottlenecks: There areconstraints ofprocessing, concerns over quality of cotton, power cost and labourreforms in the Indian Textile Industry.High incidence of technological obsolescence as a result ofwhicha large portion of the countrys processing capacity is obsolete,Indias proportion of sophisticated shuttle looms is a mere 3.7% of itstotal loom capacity. However, SKNLs plants in Mysore are modernand sophisticated.

Post MFA scenario would see intense competition both inthedomestic and international markets. The key determinants of successwould be quality, scale of operations, delivery and cost.

Business risks

Huge dependence on low margin segment & outsourcing:

SKNLderives 78% of its revenues from the low margin, low valuerealization, Blended & Uniform fabric segment. Also, 75% of totalproduction of this segment is outsourced. However make or buydecision gives the company a lot of flexibility in terms of the quantityand quality of fabric to be sourced.License Agreement: SKNL has signed a 10-year trademarklicenseagreement with Reid & Taylor (International) Ltd. executed on

January 28, 2000 effective from October 1998. There is the riskassociated with its non-renewal. However, SKNL has perpetual rightof using the brand name as per contract with Reid &Taylor, Scotland.Labour problems: Due to a strong union, the company has facedlabour unrest on several occasions. However, the management hasinitiated talks to resolve the issues and the labour relations are nowamicable.


38/47

Product segmentsSKNL has a unique business model. It is present in all fibrecategories and across all price points. The business is divided intofour independent strategic business units viz: Consumer Textiles Worsted Suitings Home Textiles Ready to Wear / Total Wardrobe Solutions(TWS) SKNL has well established brands: Reid & Taylor in the premiumsegment, S. Kumars in the uniform category and Tamarind in theReady to wear category.

Product portfolio

School Uniforms- Industrial Workwear Fabrics- Military Uniform Fabrics- Hospitality Uniform Fabrics - Medical & Paramedical Workwear Fabrics - TiesWorsted & Premium Suitings Home TextilesAll Wool Superfine- Polywool Blends - Polyester Viscose Blends (Value added-) Terry TowelsPolyester Viscose Worsted - MWool Linen & Wool Silk Polyester Blends- Grey Sheeting Cloth


39/47

Consumer textilesSKNL is the market leader in uniforms, with 30% of Indiasuniform fabrics market and 8% of the blended suitings market. The division operates in the low margin - high volume segment ofthe market and provides a wide range of uniforms, work wear andpremium suitings under the brand S.Kumars. It has more than4,000+ varieties of uniform fabrics. 20% of the sales of the division are produced in-house while therest 80% is outsourced from the well established manufacturinghouses in the unorganized sector. SKNL has strong quality controlsystems to ensure quality standards at every stage ofmanufacture and outsourcing. SKNL also offers complete garment and outfit solutions with

accessories like shoes, belts, ties, and other embellishmentswhich helps it differentiate in competitive bids for large orders. Blended fabrics are exported to UK, Middle East, East Africa,Syria, Europe and Latin America. Competitors in the organized sector include JCT, Bhilwara

Spinners, Siyaram Silk Mills, Banswara and BSL Ltd.

Competitive advantage over peersBrand name synonymous with category.o Experience in creating fabrics for Indian conditions at value formoney prices.o Unique concept of Direct to Retail Marketing.o Loyal Clientele Long association with premier educational,commercial & government organizations and registered with

defense forces.


40/47

Worsted suitingsProduct mix: Includes wool/polyester blended suitings materialand polyester/viscose blended suitings material sold under thebrand Reid & Taylor (R&T). The brand was launched in India in1999 in collaboration with Reid & Taylor, Scotland. SKNL has a strategic investment in Reid & Taylor InternationalLtd., with a global brand in the premium worsted segment. Theinvestment gives SKNL a perpetual right to use the brand Reid&Taylor in the domestic market and SAARC region for a verysmall royalty. R&T is the second largest brand in the domestic organizedworsted fabric industry with 15% market share. R&T brand has

grown faster than the market and has effectively taken marketshare away from its competitors. Reid & Taylor Worsted suiting Unit, Mysore, has the most modernstate of art manufacturing facilities. It has a 7 MW captive power

plant to cater to the power requirements.

Competitive advantage over peers

Innovative designs ensured by a team led by international designexperts.o Strong brand equity, leveraging strategic alliance withinternational premium brand Reid & Taylor.o Expert management team maintains brand dynamism in acompetitive market scenario.o Premium image, affordable price and internationally acceptablequality.

o An aggressive advertising campaign that has created greaterrelevance and empathy in customers.


41/47

Home textilesHome Textiles division offers Bed Linen & Bath Accessories,Furnishings & Table linen with focus on global markets. SKNL is the only manufacturer of fine count Damasks in India andthe production capacities include 38,564 Spindles, 64 Looms and

24 Dornier Jacquard Looms.

Market reachS. Kumars is a household name in India while Reid & Taylor has

high brand recall rate of 84% as per study conducted by ACNielsen. SKNL has a well-established marketing network of over 300wholesale dealers and about 30,000 retailers spread across thethe country. The company has developed strong familialrelationships with its distributors based on mutually beneficialrelationships nurtured over five decades of trust. Reid & Taylor has 8,000 retail outlets and 16 exclusive stores (10fit outs) across 300 cities. SKNL also sells the uniform range directly to corporates,

institutions, factories, government and semi government bodies,the armed forces and other institutions, thus emerging as thelargest institutional supplier in the organized sector of the industry. Institutional customers include Essar, Indian Oil Corporation,JetAirways, Sahara Airlines, Maruti etc. Reid & Taylor, Scotland, serves as a channel to Global Marketsand provides access to top brands worldwide viz: Prada, Brioni,

Hackett, Dunhill, Kiton, etc.


42/47

Marketing and salesOver the next 5 years, SKNL plans to establish 300 exclusiveR&T retail outlets and shop-in-shops and 200 multi-brand outletsto strengthen its distribution network. Today it has 16 exclusiveretail outlets and 3 shop-in-shops with 10 more under variousstages to completion. SKNL plans to increase the S. Kumars Value shops from 4 at

present to 20 in the next five years

Retail PotentialIndia has over 12mn retail outlets and is amongst the highest retail

densities in theworld.Organized retailing is only2% of the total retail industry. According to AT Kearney's annual global retail development indexfor 2005, Indiastands first in retail investment attractiveness among 30emerging markets. The retailing industryin India, is expected to grow at 5% peryear and organizedretailing is well on its way to becoming a Rs 350bn market by

2005 according to aKSA Technopak study. Over the past couple of years, there have been sweeping changes inapparelretailing which was once strictly a made-to-order market for clothingand haschanged to a ready-to-wear market. According to Cygnus Economic and Business Research report2005, Indian retail

apparel sector will grow by 4-5% in volume and 13% in valueterms, annually.


43/47

SWOT ANALYSISStrengths

Brand Strength: SKNLs brands (owned as well as licensed) SKumars, Belmonte, Reid &Taylor and Stephens Brothers are well-established and enjoy goodbrand recall. Post Hartmarx,SNKL has one of the largest brand portfolios globally with 45 brandsoperational.Strong Distribution Network: A distribution network of over30k retailers and over 300

wholesalers has enabled SKNL to enjoy a 30% market share of theorganised uniform andwork-wear fabric market. Expansion of EBOs by BHRL furtherexpands its retail reach forselling mid-priced to luxury products.Global Presence: SKNL, post acquisition of Leggiuno andHartmarx, has achieved a globalfootprint in the key markets for luxury textiles like US and the EU.This will benefit the companywhen there is a revival in consumer spending on luxury products.

Professional Management: The Company has a professionalteam with proven executiontrack record coupled with impeccable industry experience anddomain knowledge. Also, witha separate management team for looking after the affairs of the SBU,the company strengthensits focus and also results in better accountability.WeaknessHigh Debt levels: Although the FY09 D/E stands at a

comfortable 1.1x, the absolute debtlevels continue to remain at a high level. Such high debt levelsimpacts the interest coverageratio in case the operational cash flows are affected by the macro-economic environment.Stretched working capital cycle: The working capital cycle forthe company stands at a


44/47

high of 314 days on account of higher inventory/debtors. Thisincreases the working capitalrequirement resulting in higher interest costs.Aggressive expansion: SKNL is aggressively ramping up itscapacities across its SBUs.Any continued slowdown in global as well as domestic economy canreduce the ability toservice its interest commitments and impact profitability.OpportunitiesScope for expanding presence in developed economies:With many manufacturingfacilities on the verge of shutdown, there is enough scope forcompanies like SKNL to establisha presence in these economies.

Increase domestic market share: With the impact of economicslowdown resulting in closureof many small inefficient mills, companies like SKNL can capitaliseand increase its domesticmarket share.ThreatsContinued slowdown in global economies: SKNL isaggressively ramping up its capacitiesacross its SBUs. Any continued slowdown in global as well asdomestic economy can reduce

the ability to service its interest commitments and impactprofitability.Inability to pass on higher raw material costs: Although thecompany's target segment inthe luxury space affords enough room to pass on the rise in rawmaterial costs, any inabilityto do the same could lower the margins thereby impactingprofitability.Competition from other countries: Indian manufacturers

compete with players in countrieslike China, Bangladesh, Pakistan, Vietnam, etc. in the exports market.Any policy advantageavailable to these manufacturers could impact the competitiveness ofIndian companies.


45/47

ConclusionSKNL caters to the entire socio-economic spectrum of the brandedtextiles segment from economy

to the premium segment along with its planned launch in the superluxury segment. However, thekey growth driver for the company will be the contribution from therecently commissioned HVFCfacility along with the planned expansion of Mysore, whichmanufactures worsted fabrics, capacityfrom 8.4m meters to 13.2m meters. The Leggiuno acquisition willprovide a ready market for itsHVFC production. It will also help SKNL to expand its EU presence

by servicing other brands.SKNL can also substitute the worsted fabric sourced by Hartmarxfrom EU with that produced atits Mysore facility. This can generate synergies from the acquisition asSKNL will benefit fromhigher volumes whereas Hartmarx will be able to substantiallyrationalise its raw material sourcingcosts on worsted fabrics.The global luxury fashion brands market size is estimated atUSD80bn, with US, the EU and

Japan accounting for 24%, 35% and 23% respectively. On account ofthe global economic slowdownimpacting the consumer spends on luxury goods, the market isexpected to post a negativegrowth in 2009. The decline in growth rate will be primarily led bydemand slump in these threekey regions viz. US, the EU and Japan. However, with consumerspends on luxury goods showingsigns of revival coupled with emergence of China as a key market, thesegment is expected topost a recovery over the next few quarters.


46/47

Country wise Share of LuxuryFashion Brands Market

Others4%

Asia USA14% 24%

Japan23%

EU35%

Source: BHRLPresentationWith the economic slowdown and the consequent fall in margins ofcompanies in the brandedsegment, the focus has shifted to rationalisation of the cost structure.With emphasis on reducingthe material costs, we expect companies to start sourcing fabrics fromcountries like India,Bangladesh and China as against the EU and US, where costs arehigher. This shift could benefitcompanies like SKNL which has the manufacturing set-up for high

value fabrics along with a readydistribution network.During an economic slowdown when revenues decline or post mutedgrowth, companies focus onexpanding their market share which would help them capitalise whenthe demand recovery takesplace. Thus, companies with established brands having a strong retailnetwork would emerge asmuch stronger players and would be amongst the first ones to

capitalise on the following recoveryin demand. This again works out to be in favour of SKNL as brandsoperated by Hartmarx are wellestablishedalong with a good retail reach.


47/47

BIBLIOGRAPHY

1. Internet sources www.google.co.in

www.sknl.co.inwww.wikipedia.com

www.antiquelimited.com

Documents

industry visit1