Report on Denim

AARVEE DENIMS & EXPORTS LTD


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1.1-History of company

The Aarvee denims pvt ltd was established 1988,with the objective to set-up a captive production base for the denims fabrics by the co-promoters Arora Group.

Up until 1988, the Arora group based in Delhi, marketed denims fabrics manufactured by other denim manufactures. In 1988, the Aarvee denims pvt ltd was incorporated essentially as aBackward integration manufacturing activity for manufacture of denims fabrics. In 1989 the Aarvee denims pvt ltd set up a small denim fabrics facility at Narol, near Ahmedabad with a capacity to manufacture 2.16 million metres of denim fabrics per annum.

In 1996-97 the Aarvee denims pvt ltd set up a yarn spinning project at village sari, near ahmedabad (“Spinning Unit”).Except for a period of two years from 1998-2000,when the Aarvee denims pvt ltd focused on consolidation in line with the recessio-nary trend prevailing in the industry during these years, the Aarvee denims pvt ltd has consistently expanded its denim weaving processing as well as spinning capacities. As at March 2007,the installed capacity of denims fabrics has increased to 60 millionMeters per annum and that of cotton yarn to 25,550 metric tones per annum.

The Aarvee denims pvt ltd produces a diversified range of denim fabrics including the basic 14.5 ounce denim, as well as value added fabrics such as light weight denims, blended denims(blended with lycra, polyester and other materials);and silk denims.The Aarvee denims pvt ltd has also set up its in-house design

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B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD

Studio in 2004, so as to showcase the end-use designs and finish of the garments stitched out of the denim fabrics.

In the fiscal year 2003-04, the Aarvee denims pvt ltd set a separate processing facility at its Narol Unit for processing of cotton gabardines/bottom weight fabrics.

In the fiscal year 2005-06, the Aarvee denims pvt ltd commenced implementation of a new facility at Vijay farm Narol, Ahmedabad (“Vijay farm Unit”) to set up integrated facilities for spinning, weaving and processing of denim fabrics and also a dedicated plant for manufacture of readymade garments. The denim fabrics plant has became fully operational in December 2006. The readymade garments is expected to commence product-ion in 2007-08. The Non denim processing at Unit I, Narol, is expected to commence production in April 2007.

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ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD

1.2-Board of Directors

1) Shri Vinod P. Arora : Chairman & Managing Director

2) Shri Ashish V. Shah : Managing Director 3) Shri Kalpesh V. Shah : Whole Time Director

4) Shri Parmanand T. Arora : Director

5) Shri Rajesh P. Arora : Director

6) Shri Sanjay S. Majmudar : Director

7) Shri Ashok C. Gandhi : Director

8) Shri Arvind D. Sanghvi : Director

9) Shri Tilak Raj Kapoor : Director

10) Shri Amol R. Dalal : Director

11) Shri Rahul S.Chander : Investor Director - till 14/08/07

12) Shri Anil Hajela : Investor Director - till 19/02/08

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MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD

1.3-Registered Office

Unit I

188/2, Ranipur VillageOpp. CNI Church, Narol, Ahmedabad 382 405

Unit II

S.No. 215-217, Village Sari, Sarkhej Bavla Highway,Ta.Sanand, Dist. Ahmedabad.

Unit III

191, Moje shahvadi, Narol-sarkhej Highway,Ahmedabad – 382 405

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1.4-Plant Location Any manufacturing firm intend to locate its plant with most

effective condition,convenient and suitable to the particular nature

of the firm and production process accompanied with minimum

cost of production process.The different plants are located follows.

Spinning Plant located at :- Survey No. 215-217, Village Sari, Sarkhej-Bavla Highway, Tal. Sanand, Dist.Ahmedabad - 382 210.

Weaving Plant located at :- 188/2, Ranipur Village, Opp. CNI Church, Near Narol Circle, Ahmedabad 382 405

Home Textiles Unit located at : - 191, Moje – shawadi, Narol – Sarkhej Highway, Ahmedabad – 382 405

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1.5-Area of thePlant The total area of the plant is about 40 acres. This information is given by their executive.

1.6-Product Category

The product of Aarvee denim pvt ltd are as follows:

Denim Fabrics

Cotton Fabrics

Denim Garments

Cotton Garments

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1.7-Swot Analysis

SWOT means Strength, Weakness, Opportunity and Threat of the Company.

Strength The strength of the company is producing the best denim jeans and maintains the excellent quality of the products.

Weakness The main weakness of the company is unskilled workers. Company can not provide proper information about the company.

Opportunity The opportunity of the company is wide market about

20 Countries are registered to sale the products.

Threat The threat of the company is competition which become intense and cut-through which benefit none of them.

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2.1-Size of the industry

AARVEE DENIMS EXPORTS LTD. is a large scale

industry .All the industries are called large scale industry when a company invests the capital more than100 corers. This industry is known as durable industry. The industry that produces denims and non denims garments which can be used for making trousers, pants and garments.

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2.2-Competative Situations

The closer competitors are as under:

Arvind Mill

Raymond

K.G. Denim

Ashima

Modern

Mafatlal Belington

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2.3-Major Players

The Major Players of the aarvee denims are as under:

Arvind Mill

Raymond

Ashima

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3.1-Process of Production

The entire production department is divided into varies department these are as under:

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MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD The process of manufacturing of denim fabrics is

briefly described below:

Spinning

Yarning

Weaving

Dying & Syzing

Finishing

Packing

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Spinning : The production process on any textile is Spinning process. Here the raw cotton is conveted into string, for this purpose company is having varies blow rooms this blow rooms will performed the cleaning function. Initially the raw cotton is put on roller to make it thin then it is transfer to blow rooms.

Blow Rooms :

Initially the blow rooms is except dusk, particlesfrom cotton then sent to filter machine where the small west particles and unuseful cotton is sent to the machine that carry westage here dusk controlling and dusk sepration process is done.

Stage – 2 : After the cotton gets clean and ready to use for further processing it is put in carding machine here the cotton is bitten to helped open more company has 8 defferent carding processing lines.


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Cutting : Once the cotton gets betting and clean from both

the side the cutting process take place it includes four stages.

1) Opening2) Cleaning3) Drafting 4) Parallelism5) Sivan

Here the cotton is get further cream and it is open more then to ensure the proper textile of cotton parallelism and Sivan process is done.

After the parallelism the cotton is transferred to frames where it will be separated into two stages that is :

1) Normal spinning2) Ring spinning

1) Normal spinning : The normal spinning is passed through following stages:

Opening WARD Spinning Spinning Rollers Drafting Parallelism


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Reduced speed rollers Twisting Baiyanding Coaling Bobbin flyers

2) Ring spinning : Ring spinning process is done to give special texture to the clothes which is forward as under:

Ring spinning Simplex Speed frames Rollers Winning Spindle Bobbins

In this both the process that is normal spinning

and ring spinning. The cotton is clean to ensure proper shade it is opened so that they gets thin, it is rolled so that it can easily converted into thin layers it is drafted so that easy string format-ion is ensured after this both process material is ready to transfer in Yarning Department


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Yarning : In Yarning Department the cotton is converted and processed to get in the form of string then it will be rolled on bobbins.

1) Wrapping : Wrapping process is also known as the first stage of cloths. Here the strings which are rolled on bobbins. This process on winding beans here the bobbins are rolled at more than 3000 rpm. Speed to ensure that non of the lyre of the strings get over leapt so that it can facilitates in weaving process. 2) Looming : In Looming process bobbins of the strings are put on looms so that it can be struck and strengthen further to provide more strength to the clothes. 3) Inspection : Here each loom of strings inspection to ensure no damage in to the strings & looms if any damages is found then it will be remove and classified in to the different damage category.

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Weaving : Yarns & looms are now shifted to weaving division. Weaving process is performed in following ways:

Yarns

Auxiliary

Auxiliary to needle

Main needle

Beating

Clothes

In weaving process the looms of yarns which contains strings are attached to the warping machine which contains needles. This needles are used to beat & weave strings to converted in to the clothes there are total 60 warping machine. The company has and each machine is move on 900 rpm. Speed. Each machine can produced 257 meters per cloth per day.

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Dying & Sizing : Once the clothes get ready in weaving depart-ment it is shifted to dying & sizing department. Here the coloring process and sizing process of the clothes is under-taking

1) Dying: According to the needs of customers or according to the companies production plant the clothes will get colored. To color the clothes varies types of chemicals water, lykra is to mix to gather then the clothes are passed through the dilate mixer in varies lines. The company has 14 different dying lines to color the clothes 2) Sizing: In sizing process the cloth is cut from both the sides to remove the unnecessary strings then it is moved to finishing process where knitting the clothes when clothes are passed through heating and shaving process during heating process the clothes will get smooth further and it will also burn extra and unnecessary particles of cottons and clothes where all during shaving process the micro strings is removed the provided shining and attractive texture to the clothes.

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MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A

AARVEE DENIMS & EXPORTS LTD Inspection : After finish process the clothe is ready to sent to the customers but before that it is inspected to analysis the damage or defects to the cloth. If any defects or damage is found then it will be classified in to different levels of defects

For Example: 0 defects = Export Material

1 to 3 defects = Domestic Material

More than 3 defects = The cloth will be removed and will not be sent to the customers or market

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Packing : After the inspection stage, material without defects is ready to send in the market or customers before that proper and suitable packing is done . For exports material double lyre packing is used to protect the clothes from any further defects, where is the domestic lyre. The one lyre packed is used because the handling of finished product is less in domestic market.

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3.2-Types of Raw Material & Sources

For production of cotton yarn suitable for denim fabric of 6 to 7 counts, coarser variety of cotton is required. India is currently producing around 1 65 to 170 lakh bales of cotton per annum. Again, because of the introduction of B.T. cotton, India’s annual production is expected to increase further up to around 200 lakh bales per annum. More than 50 % of this production is of course cotton, Which mainly comprises of the following varieties.

J-34 From PunjabV-797 From GujaratDig Vijay From GujaratShankar Varities Lower Shankar from GujaratNHHAKHAKA

From Maharashtra

India is the mediumistic producer of coarser varieties of cotton in the world. No other country in the world has such a high composition of coarse cotton production.

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Further, Indian coarse cotton is of excellent quality and is ideally suitable for the cotton yarn requirement to produce superior quality of denim


fabric. In view of the abundant production, prices of Indian cotton are the lowest in the world. Because of the liberalization policy adopted by the Government it is also open to import cotton from other countries ( Mainly USA ) without any restrictions. However, there are wide fluctuations in the prices of the imported cotton for various reasons. At times, imported cotton becomes even cheaper than the domestic cotton owing to heavy subsidies offered by the foreign Governments to their cotton growers and during such period, it is beneficial to import cotton but mediumly for most of the time domestic cotton is cheaper than the imported cotton. Parts from India, the other major cotton growing countries are USA, Australia, Turkey, Pakistan, China, CIS, Brazil, Argentina & Greece.

A part from cotton, the other consumables / Chemicals includes ADEL dye; Sizing / processing chemicals, etc. which are easily available from domestic / International Markets.

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3.3-Equipments and Machinary The Aarve e is a very big company. In the company there are huge machines all machinery are imported from the foreign country. All equipments and machines are worked fast and accurately its help to produce more production. These machinery is so expensive with the compare of Indian machinery.

We have a streamlined production process and quality is our prime priority. Presently we have the capacity to produce 47 million meters of weaves, 18.50 metric tones of spinning and 6 lakh pieces of readymade garments per annum. We have pooled in the latest textile technologies to give our clients nothing but the BEST. We have the latest Spinning, Dyeing & Sizing, Weaving, Garmenting and Finishing machines, sourced from the world class manufacturers, which produce quality fabric expeditiously.

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Our Growth Strategy Our management has been extremely prudent in keeping the costs under control. Our operating cost structure is aligned to withstand the cycles of the industry. We have well crafted expansion plan wherein we plan to achieve production capacity of 100 million meters within next three years MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD

3.4-Utilities

Power and Fuel

The increase in power and fuel cost by 5 % to Rs. 31.01 crore (Energy cost excluding Wind Mill Generation comes toRs.19.81 crores against 27.31 crore in previous year) is primarily attributed to the capacity addition, reduction of outsource job work & higher production. During the first quarter, another 8 Windmills of 1.5 MW each has been successfully commenced. Going forward

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the company expects to save substantially on account of overall power and fuel cost due to wind mills.

Water

They have own Bore well. They are used daily water in it. 5.5 to 6 lakh water they have boiler having capacity

Transportation The transportation is based on contract system as per the requirement of the customers.

Ware houses :

They have basically two ware houses 1) Narol - Sarkhej highway2) Bavala

The capacity of ware house at Narol is more then 3 lakh meters of the rollers.


3.5-Polution Major Control

There are basically two types of pollution:

1) Water pollution 2) Solid Waste pollution

1) Water Pollution : 28

The company is having a system where before eliminating water by some chemical process. Cotton make less dangerous in future. Company wants to skill stop effluent treatment plan to reduce the water pollution.

2) Solid Pollution :

The unuseful cotton particles of the clothes and they sell this waste to the script leader.


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4.1-Defination of Marketing

Marketing can be defined as process where the group or individual obtain what they need or want by exchanging something in return.

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4.2- Marketing Mix Marketing mix is a tool or technique to decision marketing strategy this concept is developed by ‘ Mc. Carthy. Marketing mix consists of four Ps.

Product Price Place Promotion

Now we will study marketing activity of organization in detail with the help of four Ps.

Product: The Products of company are defined in detail forward.

Price : Price is anything that customers pays of product return.


Factor affecting pricing at Aarvee

1) Raw material2) Government Policy

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3) Competition 4) Major competitors - Aashima, Reliance, Levi’s, Lee, etc

5) Organisational Policy 6) Demand 7) Production Cost

Place : Place related decision involves distribution of the product. Important variables include place

1) Coverage2) Channels3) Locations4) Transport

1) Coverage: Where the available Aarvee garments that area. It is expanded more than 20 countries.

2) Channels: It means the intermediaries which helps to company to make its product available to the final consumers.


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1) 0 - Level Channel : In this channel the company sale its product directly to the Consumers there is no agent between them.

2) 1 - Level Channel :

In this channel the company sale its product with the help of wholesaler to the Consumers.

3) 2 - Level Channel:

In this channel the company sale its product through the Wholesaler and Retailer.


Manufacturer

Manufacturer

Manufacturer

Wholesaler

Wholesaler Retailer

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Consumers

Consumers

Consumers


Company has its own retail stores. The number of stores are about 16 in Gujarat. In Ahmedabad there are 3 or 4 stores.

3) Location: The location of the company is not so big.

4) Transport: In India the company uses the Road transport and international level company uses Air and Water transport.

Promotion : Promotion is an act of increasing product sales by attracting the existing as well as new consumers. Promotion Mix

1) Advertising2) Sales Promotion3) Public Relation4) Publicity

1) Advertising: Advertising is non personal and paid from of product exposure to the final consumers.

Media – The company is advertise with the help of news paper, outdoor ( Holdings ).The Aarvee use all the three media to advertising their product.


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2) Sales Promotion: Sales promotion is an effort to increase the sales

of the product. In short time period by offering some benefits to the consumers

Company is using various sales promotion activity to its final consumers. Such as at the time of Diwali company has offers flat 25 % Discount or regular basis companies retail outlets offers buy 1 get 3 free as promotional offers.

3) Public Relation: Public Relation is company’s initiative to maintain

and strengthen relation with customers, share holders, suppliers, etc. To maintain the relationship with the customers , company is regularly informing about schemes and offers to there regular customers with a view to maintain relationship with there share holders and distributors. Company sends varies informative letters and prospectors on frequent basis.

4) Publicity : (as per information given by company’s executive.) Company is not involves any publicity act.

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4.3-Product Category

Denim Fabrics 8 oz 14.75 oz, width up to 66”/67” in a vast variety of colors.

Cotton Fabrics 100% cotton twills, Canvas, Dobby Designs, Cross Hatches

Denim Garments Jeans, Trousers, Jackets, Shirts etc.for men, Women and kids.

4.4-Branding Decision company’s range of production is available under the following brands:

ADEN : Executive range of bottom company are including jeans, trousers, shorts and skirts.

AARVEE : Our denim fabric available in an unimaginable variety of shades and textures

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Aden-308-front Aden-314-front

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Aden-303-front Denim-2

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Cotton-1 Denim jeans AARVEE DENIMS & EXPORTS LTD

Aden-343-Front Aden-307-Front

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Aden-305-Front Aden-306-Front


The company manufactures the following products:

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a) Denim Fabrics This includes a range of Denim Fabrics including the standard 14.5 ounce light weight variety, blended varieties as well as specialized denims such as variety silk denim and stretch denim.

b) Non-denim fabrics This includes manufacture of processed gabardine fabrics which are mainly used in manufacture of cotton trousers. The Aarvee denims pvt ltd markets the processed gabardine fabrics mainly in the domestic markets.

a) Cotton Yarn The Arvee denims pvt ltd manufactures cotton yarn in the range of 6 counts to 11 counts; both coarse variety as well as finer counts Almost the entire production of cotton yarn is for captive consumption for weaving of denim and non-denim fabrics.

b) Ready made Garments The Aarvee denims pvt ltd produces a range of readymade garments from the denim fabrics. This includes denim trousers, shirts, jackets, dress materials and kids garments. Denim garments are marketed by the Aarvee denims pvt ltd in its own brand ( “Aden” ). The Aarvee denims pvt ltd also manufactures ready made garments on contract manufacturing private labeling basis for other brands


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4.5-Pricing Policy Production cost , cost of raw material & cost of transportation. They are taking in to consideration.

Marginal profit Packaging out source

Company decided pricing policy but it must be aware about meaning of the price.

“Price means money value received against exchange of goods and services.” There are so many pricing policies like,

Aarvee denims and exports limited accepts competition pricing policy in going regulation because competition is running and company decide the price of jeans and denims garments after knowing the competitors price.

The pricing policy of denims garment and readymade cloths influence its sales too extend. It must not become hind range in the growth at organization. It not must be so liberal that the unit has to insure losses.

So far as the unit is concerned pricing is very sensitive. The marging and marketing manager are inctrge at setting price at the product in this section.


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5.1-Total Number of Employees The company has 300 permanent employees at Narol Sarkhej plant. Company also hire some of the contract worker on daily basis system.

5.2-Sift Wise

In the company there are two sift : 1) Morning - Evening 8 to 8. 2) Evening - Morning 8 to 8.

5.3-Department Wise In the company 30 people are work in the different department. (Spinning dep., ginning dep., packing dep., etc. )

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5.4-Sources of Recruitment Recruitment is a process of searching for and obtaining for jobs from among whom the right people can be selected. Thus recruitment is a process of finding and attracting capable for employment.

The Sources of recruitment is divided in the two part: 1) Internal

2) External In external source company search the people by the help of newspaper, television, campus (IIT,engineering field,etc)

5.5-Selection Procedure Selection is second step of placement of people. It is the process of choosing the individuals who posses the skill, ability, and personality to successfully fill jobs in the organisati-on. Thus in other words, it is a problem of matching a man to job it is a negative process as it seeks to eliminate the least promising candidates and to discover those that appear most likely to succeed. The selection procedure is passed through following stages:

Receipts of Application Primary Interview Selection Test Final Interview Physical Test

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Appointment MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD First of all the company give the advertise in news paper, television, etc. then they received the application from the people. The company select How many persons are suitable for the job, then they select the suitable candidates application and put that application separately and called them for the primary interview.

In the primary interview they ask some question related to the job. e.g.- why he will work in his company.

After the primary interview who passes in it they invite for the selection test. In the selection test they take the written test , technical test, etc. Who passed that test they all are select for the final Interview. In the Final interview there are few candidates. Interviewer select the best candidates who is deserve that job and then they are invite for the physical test

In the physical test they show if candidates have any physically or mindly defects and then they select the candidates for the job than they check his ability to work. And then give the appointment letter.

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MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD 5.6-Training Method

The Training Method is divided in the two parts1) On the Job 2) Off the Job

1) On the Job :

On the job training means training is provide of actual working and training is provide. Generally company use of on the job training for bottom level management. 2) Off the Job: It means in the room they give training Off the job training means training provide for the select the person. Most of the company use of off the job training for middle level management and top level management. Like, Conferences, Seminar, Roll play,

Training is a learning experience in there it seeks relatively permanent charge in an individual that improve his ability to perform on the job. How they work, their attitudes, towards the work, with their co-workers or supervision. Training is in business fields training to play very important role about new technology as we know training is given for short period. Training is given as on the job method like internship training in this

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method. This training is usually meant for such person and such jobs where advanced theorical knowledge is to be backed by practical experience on the job. workers are given the theorical as well as practical knowledge.

MADE BY HARSH ROLL NO.-1098 B.W.T.I.B.A AARVEE DENIMS & EXPORTS LTD 5.7-Promotion Policy

In Aarvee there is no special promotion policy Promotion is done exclusively on the basis of the workers and the employees.

5.8-Safety and Welfare activities The Company believes in sustainable development and is committed to be a responsible corporate citizen. To uphold the Company’s interest and preserve the quality of life of all concerned, the business and operations of the Company shall be conducted in an environmentally friendly manner and provide a safe and healthy working environment to its employees Directors / Senior Management shall ensure compliance with all applicableEnvironmental, safety and health laws and regulations and internal policies.

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Conclusion53

I have visited the Aarvee ltd. The response of each and every department of the companies was very appreciable the departmental heads have provided the best possible information and have helped us by their best efforts, practical experience is very essential for any of the mgt student, and by this industrial visit, I have learnt much about the industrial process. This may not be gained by the books only.

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 price charging is also done very considerably.


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Suggestion

- Aarvee the seminar to aware the people for using the denim garment.

- Company should start professional working approach even in the organization.

- Company should do more motivated activity to encourage the employee.

- I found the price of wallet and glass and belts are high, so company should keep it reasonable.

- The co. is using the modern techniques of the mgt.

- The slogan of the co. is that it is better to be proactive than rather to be reactive.

- The ADEL makes some concrete efforts toward the advertise-ment to create garment awareness of the company.


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Bibliography

BOOKS:

PRINCIPLES AND PRACTICE OF MANAGEMENT BY- L.M. PRASAD

MARKETING MANAGEMENT BY- PHILLIP KOTLET

NEWS PAPER :

BUSINESS STANDARD

WEB SITE :

WWW.AARVEE.DENIMS.COM

WWW.GOOGAL.CO.IN


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Documents

Report on Denim