Oswal Group is a Premier Textile Group of Northern India Having Its Corporate Office at Ludhina Punjab

8/4/2019 Oswal Group is a Premier Textile Group of Northern India Having Its Corporate Office at Ludhina Punjab

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COMPANY STRUCTURE



OSWAL GROUP is a premier textile group of northern india having

its corporate office at ludhina punjab. The group had existance for last

40 years with core competencecy of spining .we were earlier part of

vardhman group but after the family sattelment between two brothersin 2003,we have nemed ourselves as oswal group .the group is mainly

into spining and dyeing of all types of yarn in different blends and

manufecturing of garments .the group has plens to diversify in future

but mainly in textiles related activites

Anshupati textile ludhiana

This unit was set up by the company in 1991 with an installedcapacity of 8,000 spindles to manufacture grey /dyed acrylic yarn.

The acrylic yarn is used in the manufacturing of hosiery yarn is used

in the manufacturing of hosiery and knitted garments .this unit also

manufactures the acrylic yarn which is used in the manufactures the

acrylic which is used in the manufecturing of mink blankets .

f.m hammerle textiles ltd.

During the year ,the company enterd into a joint venture agreement

with F .M.

Hammerle group ,austria for setting up a green field project for

manufecturing of quaility yarn and piece dyed shirting fabric with

annual capacity of 12 million metters . for this porpose, a new

company in the name of ‘oswal f.m.hammerle textiles ltd. Has been

floted which will set up its plant at village kagal, dist.kolhapur(maharastra).the company has 76% equity is held by F.m hammerle

group . the civil construction has already commenced .the plant is

expected to be operational towards the end of 2007

Oswal group is a premier textile group of northern india having its

corporate office at ludhina punjab. The group had existance for last 40

years with core competencecy of spining .we were earlier part of

vardhman group but after the family sattelment between two brothers



in 2003,we have nemed ourselves as oswal group .the group is mainly

into spining and dyeing of all types of yarn in different blends and

manufecturing of garments .the group has plens to diversify in future

but mainly in textiles related activites

Vardhman polytex limited bathinda

it is the oldest unit of the company .this unit started its commercial

production in 1986 with an installed capacity of 11,520 spindles .this

unit is situated in the hub of the cotton belt and derives the advantage

of procuring its basic material of best quailty at lower cost from

nearby locations.

Vinak textiles mill,ludhiana

This unit was setup in 2004with an installed capacity of 24,288

spindals .this unit has latest state of art tecnology imported from rieter(switzerland),muratac(japan) and uster(switzerland ).the spining

capacity of this unit has now increased to 49,632 spindels .the

company has also installed a dye house at the same location having a

capacity of 13 mt per day advanced machinary imported from china .



Anshupati textile ludhiana

This unit was set up by the company in 1991 with an installed

capacity of 8,000 spindles to manufacture grey /dyed acrylic yarn.

The acrylic yarn is used in the manufacturing of hosiery yarn is used

in the manufacturing of hosiery and knitted garments .this unit also

manufactures the acrylic yarn which is used in the manufactures the

acrylic which is used in the manufecturing of mink blankets .

f.m hammerle textiles ltd.

During the year ,the company enterd into a joint venture agreement

with F .M.

Hammerle group ,austria for setting up a green field project for

manufecturing of quaility yarn and piece dyed shirting fabric with

annual capacity of 12 million metters . for this porpose, a new

company in the name of ‘oswal f.m.hammerle textiles ltd. Has been

floted which will set up its plant at village kagal, dist.kolhapur

(maharastra).the company has 76% equity is held by F.m hammerlegroup . the civil construction has already commenced .the plant is

expected to be operational towards the end of 2007

The F.m hammmerle (fmh) group of australia is a well known name

in the international textile scence for more than 160 years now.

Through this venture ntered into the field ,vpl has entered into the

field of manufacturing high – end shirting febric .the subsidiary was

setup by VPL in a tecqnical and Marketing

collaboration with the FMH group



Vardhman Polytex Limited (VPL) bathinda :

It is a unit based at bathinda in punjab. Eariler this mill was

known as punjab Mohta Polytex Limited .its Foundation stone was

lay down 12th june 1983 by the chief minister of punjab sardar

darbara singh.the plant was commissioned on 4 th december 1986 and

inaugurated by sardar surjit singh barnala .it was taken over and

incorporaed by mahavir spining ltd in 1987 . thus it became the

subsidary of mahavir spining limited .at the time of amalgamation it

had 9000 spindles and 504 rotors making the total of 11520 spindles .

in 1991 the name of the unit was changed to vardhman polytex

limited , as a sperate company. but going on afteer the family

settlements in 200, the unit came under oswal group.this unit had been

awared with ISO 9002 certificate by the bureau of indian standerds

after the final audit which took place in the unit on 26th

july 1996 .

Presently the chief manager of the company is mr.vijay arora.

The personal relation and industrial relation manager is mr.rajinder

pal .presently there are four manufacturing units running in vardhman

.manufecturing process goes on 24 hours in three shifts of 8 hours.

There are about 1500 workers including employees . there is

production of 104592 spindles i.e. 60 tones /day. The is consumption

of electricity near about 3 to 3.5 crores each month .the turn over of

last year (2010-2011) was about 800 crores of oswal group.

Cotton a raw material for the industry is require main cotton belts in

india are punjab,haryana,gujrat, maharastra .raw material at this unit

is purchased from the following places, major from punjab are:abhor

,mansa ,malot muktasr moga, bathinda, kotkapura jaitu ,rampura

,fazilka etc .from haryana :sirsa, fatehabad ,hisar ,hansi

,bhiwani,barwala,kalanwalietc.,from rajsthan

ganganager,hanumangarh



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Products By VPL (Yarn) Count Range

Grey Cotton Yarn(Carded) Ne 16s to 40s

Compact Yarns Ne 20s to 30s

Compact yarn



Marketing Channels

VPL has a strong marketing and sales presence in both the export and

domestic markets domestic market has three major channels ,namely

Agents/brokers/custmenrs

In this channel,agents are appointed by the company tomake

arrengements for sale and also for receiving the payments on

time.these agents have further arrengements of sale to different

customers via brokers.recources of company is with the agents forboth purposes.

2) distributer brokers customers

This kind of arrengements is followed when the payments is

arreanged by the trader.they can stock the material also and sell to

different customers via brokers,if required.

3) direct (which includes corporate customers



The company deals with a few customers especially the corporate

buyers directly as well.names of few of the corporate buyers are

enlisted below:

For export chanels are

1) AGENTS (forien/ indian )

This is the major channel for the company’s export

marketing.there are indian as well as foriegn agents for this kind

of set up combination of them can also exist for export deals

where indian agents have foriegn counter part or vice – versa.

2) direct

Vpl is dealing with some overseas customer directley as well like;

a) Egyptian international (egypt)

b) CMT Lee (Mauritius )

c) Yuki (Bulgaria )

d) Ontario(ukraine)

Top customers

Following tables give the sales percentage

Break-up from the top customers of the company

Export market the top ten customers contribution to around 60%

of the total exports of the company,and the top three are listed

below.

Name of customer country (%)South asia textile PTE 21

GME & supplies USA 10

K.N.Lee Malaysia 5



Domestic market

Some of the key coustomers in the domestic market are as

below

Name of Coustomer LocationSilver enterprises new delhi

Ganpati textile new delhi

Kocher sung up acrylic ltd. ludhiana

vardhman enterprises new delhi

Gulati exporters gurgaon

Riba textile chidanaHem knit wear ludhiana



1. MIXING



The different varieties of cotton are issued as per product

mix from the raw material section in bale from. The

different varieties of cotton and different lots are mixed

together as per the requirement of end product and standard

recommended mixings. The material is conditioned in

mixing for 24 hours.

2. BLOW ROOM

In this process, the cleaning and opening of fibers is done in

a sequence of beaters. Main purpose is to reduce tuft size,

remove the trash particles and foreign matter etc, which

often comes in the bales.

3. CARDING

In this process, further cleaning of fibers is done and the

fibers are opened into single fibers extent i.e. the main

purpose is further removal of trash in cotton and the



industrialization and parallelization of fibers. From the

carding machine, the material is delivered in the form of

sliver.

4. DRAW FRAME

The purpose of this process is to reduce the wt/yard in the

card sliver 6 to 8 end of card slivers are doubled together in

this process to reduce variations and further drafting is done

to reduce the wt/yard of delivered sliver. Two passages are

given at the draw frame stage.

In case of combed counts, the card sliver is fed to the

precombing draw frame. The purpose of combing draw

frame is to reduce the wt/yard variations in the card sliver

and to parallelize the fibers. Singles passage is given at the

precombing stage.



5. LAP FORMER

20-25 precombed draw slivers are fed together to produce a

lap sheets of fibers, which is wound on the spools.

6. COMBERS

The laps prepared on lap former are fed to combers. The

main purpose of combing process is to remove the short

fibers from the material in the form of noil. The average noil

percentage caries from 15% to 18%. The material is

delivered in the form of sliver.

7. SPEED FRAME

The finisher draw frame sliver is fed to the speed frames for

conversion into the roving form. In this process the wt/yard

of the sliver is reduced, slight twist is given to the fleece

and the material delivered in the form of roving, wound on

the plastic bobbins.



8. RING FRAME

The roving is fed to ring frame for conversion into yarn. In

the process, the weight / yd of roving are reduced as per

requirement of ultimate user and the delivered yarn is wound

on the plastic bobbins.

9. WINDING

In this process, the yam is wound on paper cones to produce

bigger package, as per requirement of the market. The

weight / package varies from 1.2 kilogram to 2.2 kilogram.

During the process, in addition to the formation of bigger

packages, the yarn faults are also removed with help of

electronic yarn cleaner.

10. DOUBLING



In the case of type cord the process is same upto cone

winding. After cone winding the yarn is fed into Cheese

Winding. In the process 2 ply or 4 ply is to be done as per

requirement. After the yarn is fed into ring doubling and

required T.P.I. is given in 2 ply or 4 ply yarn. In the next

process in assembly cheese winding is get the package in the

package in the required from to be fed into T.F.O. in T.F.O.

final yarn is prepared in the form of cheese and required

T.P.I, is given to the final yarn in process.

11. PACKING

In this process, the cones / cheese are packed in bags or

cartoons as per the requirement of the market. In addition to

the packing the material is checked thoroughly to avoid

mixing of different materials.





Objectives of the study

The main objectives of the research were:

To know export procedure in general and spining mill

(vardhman polytex limited) in particularTo understand related aspects of export

Actual export performance of vardhman polytex limited

Swot analysis in particular context to export in vardhman

polytex limited.



Research mathodology

To know export procedure in general and spining mill

(vardhman polytex limited) in particular

The department concrned shall be studied in detail. The relevant

information shall be collected from company files and officials

and of commercial department

To understand related aspects of export .

this study can be devided as governmenta organisation involved

,technological upgradation and quality parameters.

Actual export performance of vardhman polytex limited

Data shall be collected from the annual reports of vardhmanpolytex limited and required visits to the requisite offices.

Swot analysis in particular context to export in vardhman

polytex limited.

the information shall be collected by personal oberservation andviews of officials.



the main reason for of best exporter (Vardhman Polytex

Limited) in textile market in india is following

1. Company’s philosophy

2. Total customer delight3. Competing with the best

4. Total quality people

5. Product quality a way o life

6. Continued improvement through innovation & creativity

7. State of art technology with ultra R&D facilities

8. Respect of every VPL Parivar Member

9. Achiving Excellence through culture integration10. Change away of life

11. Act as responsible corporate citizen and discharge our

social responsibilities



Export Procedure Export procedure is a system or

methodology by which export trade transaction is completed

with the realization of export proceedes.

In between there are many formalities is required to be

completed.in the export procedure various formalities need to

be completed & various documents are required to be

prepared by the exporter.every exporter should have a

thorough knowledge of the rules, regulations & procedure

required to be followed for exporting the goods abroad.

The procedure of exporting involves the following stages:-

Stage 1:

First of all, searching of customer is done and then export

order is required.usually gets order in three ways:-

Through internet .

Through international trade & exhibition. And ,

Through global tender which is floated by the importers

Stage 2:

The exporter order must specify the mode of payments such as:

L/C (letter of credit)

D/P (document against Payment)

D/A (document against Acceptance )

At this stage,the company prepare all the necessary d ocumnets

including sales contract required by the buyer and submits to the

negotiating bank in exact specified manner. The most importnat

documents demanded by the importer are:

Bill of exchange

Commercial invoice



List bill of landing marine insurance policy cerrificate of origin

STAGE 3:

After getting export order from the desired country,

VPL enter into a contract with it. Once the order has been received,

the order is scrutinized with reference to the terms & conditions of the

export contract.this is regulations the most crucial stage. All

subsequent actions and reactions will depend on these terms &

conditions.

It is ensured that contract has been entered into in accordance with theprevelent export policies of the country and foreign exchange

regulations like FERA and FEMA.

STAGE 4:

As soon as the export order has been confirmed,

Preparations for the dispatch of yarns are started. After Agreement,

the manufacturing order is sent to the production manager by the

marketing department of VPL. This order contains the description of

yarn as has been given in the export order, along with the copy of the

instructions given by the importer . the date by which the yarn must

ready is clearly intimated to the production manager and advice the

material procurement for assuring the availbility of the items required

for the yarn on the basic of the order, manufecturing startes

Stage 5:

As soon as the yarn are manufacturedproduction manager informs the

marketing department that the good are ready to dispatch. At this

satge two impprtant documet are to be prepared.

ARE 1 form



CT 1 form

ARE 1 form is prepared quantiplicate and CT 1 form is prepared in

quadra duplicate. CT form are issed by the exice department. ARE 1

forms are presented to the range supredented of central exice, who

after necessary formalities signs all the copies . the original and

duplicate copies are given back to exporter. The triplicate copy is sent

to the maritime collector ,fourth copy is sent to the chief accounts

officer and the remaining copy is kept by the office of range

supretendent.

The other authority which the export department approachesimmediately. At this stage is the export inspection agency for

conducting quality and pre-shipment inspection .An inspector is

deputed by the inpection agency to inspect the consignment. If the

yarns are confirmed to prescribed specifications, an inspection

certificate is issued.

The yawns are then dispatched to the court of shipment

Stage 7: after the yawns have been dispatched to the port of loading,a

dispatch advise is send to the export department. Soon after an

application is send to the insurance company for marine insurance

cover. The insurance policy is obtained in duolicate.

At this stage all formalities in relation to ECGC cover, certificate of

origin, consular invoice etc. Wherever necessary is completed.

There after the export department sends the following documents to

its clearing and forwarding agent along with detailed instructions:-

Commercial invoice

Original export order

Original letter of credit

ARE 1 form(original and duplicate copies)





Excise Gate pass

Packing List

Certificate of Inspections

Declaration Form in triplicate

Consular Invoice

Export License

Railway Receipt

STAGE 8:

The clearing & forwarding agent takes the delivery of the

consignment from the railways & arrange its storage & warehouse.

Thereafter the agent prepares the requisites copy of shiping bill.

STAGE 9:

After the shipping bill has been prepared & passed by the customs,

the clearing & forwarding agent presents the port trust copy of the

shipping bill to the shed superitendent of the port trus and obtained

carting order for bringing the export cargo in the transit shed for

physical examination.Thereafter, in the case of shed cargo, the dock

challan is prepared.The following details are given in the dock challan

:-

Consignee’s name & address

Vessel name

Port of destination

Exporters name

Mark & no. Of packages



Gross wieght

Port charges payable

Other details as neccessary

STAGE 10:

The ship clerk calls for cargo from shed after loading prepares the

mate’s receipts.Mate’s receipt is signed by the captain of ship. It is

than delievered to the port commissioner’s shed.The clearing &

forwading agent pays the port charges and take with delievery of the

mate receipt.This mate’s receipt is than presented to the shipping

company along with the requisite no. of bill of landing.

SATGE 11:

The clearing and forwarding agents forwards the following

documents to the exporter:-

Full set of bill of landing

Shipping bill

Copies of Customs invioce

ARE 1 form

One copy of commercial invoice duly attested by the customs

Orginal exports order

Orginal letter of credit

Railway concession form duly attested by customs

Stage 12: As soon as the exporter (VPL) receives the abovedocuments from the clearing & forwarding agent, completes the



remaining formalities. The exporter files a claim with maritime

collector of Center Exise in the port town for rebate of Centeral

Exeise duty, side by side, shipment advice is sent to the importer. The

following documents are forwarded along with the shipment advice :-

A non negotiable copy of Bill of Landing

Customs Invoice

Commercial Invoice

Packing List

Certificate of Origin

Single country Declaration

STAGE 13:

The following documents are provided to the negotiating bank:-

ARE 1 form (duplicate copy)

Bill of Exchange

Full set of Bill of landing (All the Negotiable Copies )

Letter of Credit

Commercial Invoice (two Copies)

Customes Invoice

Paking list (2 copies)

Bank Realisation Certificate

STAGE 14:

This is the last stage of export procedure. At this stage the bank processes & negotiation is done in the following manner:-



The entire documents are scrutinized with refference to the terms and

conditions of the original Letter of Credit (In case of L/C payment

terms )

Thereafter a set of following documents is transmitted to the banker

of the importer by the first air mail followed by the second set of it

by the second air mail to ensure that in case the first is lost, the

importer can take the delivery of the consignment on the basis of

second set of documents. These set of documents are

Bill of Exchange

Negotiable bill of landing

Commercial Invoice

Customes Invoice

Insurance Policy

Certificate of origin

Consular invoice

Packing list the attested copy

The original copy of bank certificate along with

The attested copies, the cpommercial invoice is returned to the

exporter the duplicate copy of the bank certificate is forwarded to the

office of the Directer General of foreign trade in the area.



EXPORT DOCUMENTION

There are a number of documnets,which have to be prepaired by the

exporter in order tpo arrenge export of his consignment

These documents can be classified into two i.e

(a) Commercial Documents

(b) Regulatory documents

Commercial documents : There are 15 commercial documents eight

are principal and rest are auxiliary.

Pincipal documents: Are required for effecting physical transfer of

goods form an exporter to an importer.there are eight principal

documents:

1) The commercial invoice it is formal demand note for payment

issued by the exporter to the importer for goods sold under a

sales contract.

It should give details of the goods sold, payment terms and trade

terms. It is also used for the customes clearence of goods and

sometime for foreign exchange purpose by the importer.it is prepared

by exporter .

2) Packing list alist with detailed packing information of the goods

shipped



3) Bill of landing / Air waybill : An vidence of contract between

the shipper of the goods and the carrier. The customer usually

needs the original as proof of ownership to take possession of

the goods. A kind of waybill used for the carriage of goods byair. This serves as a receipt of goods for delivery and states the

condition of carriage but is not a little document or transferable /

negotiable instrument.

4) Certificate of insepection /quality control :

A report issued by an indepandent surveyor (Inspection

Company) or the exporter on the specifications of the shipment,

including quality, quantity, and/or price ,etc; required by certainbuyer and countries.

5) Certificate of origin it is a document certifing the country in

which the product was manufectured and in certain cases may

include such information as the local material and labour

content of the product. A popular example of its is form a which

is often called the GSP form A.6) Bill of Exchange : An unconditional written order, in which the

importer addressed to and requird by the exporter to pay on

demand or at a future date a certain amount of money to the

order of a person or a bearer.

7) shipment advice : the douments related to shipment discussedfurther in detail.

Insurance certificate : an insurance policy is an insurance

document evidencing insurance has beentaken out on the goods

shipped, and it gives full details of the insurance coverage. An

insurance coverage. An insurance certificate certifies that the

shipment has been insured under a given open policy and is tocover loss of or demage to the cargo while in transit



Auxilary Documents: these are required for prepration and

procurement of principal export documents. The seven auxilary

documents are1. performa invoice

2. intimation for inspection

3. shipping instrutions

4. insurance declaration

5. application of certificte

6. Mate’s Receipt : A mata receipt is issued by the commanding

officer of the ship when the cargo is loaded on the ship andcontains information about the name of the vessel ,berth

,date of shipment, description of packeges, marks and

members etc. It is first handed over to the port authorities that

all the ports dues may be paid by the exporter. After paying

all the dues , the agents may collect the receipt from the port

authorities. Bill of loading is prepared by the shipping agent

after the mate receipt has been obtained .

