Upload
ankit-singh
View
236
Download
0
Embed Size (px)
Citation preview
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 1/47
ORIENTAL INSTITUTE OF MANAGEMENT
A
Summer Internship Project Report
on
Submitted by:
NILESH PANDEY
MMS
Batch 2012-14
Under the guidance of
Mr. Sachin Sodani
(C.A.)
(Accounts Department)
RSWM Limited
Faculty Guide
(Prof. Ankita Srivastava)
1
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 2/47
DECLARATION
I hereby declare that the project work entitled “RE-EMERGENCE OF TEXTILE
INDUSTRY AFTER RECESSION
“submitted to “Oriental Institute of Management, Vashi, Mumbai-4000703 “is a record of
an original work done by me under the guidance of “Mr. Sachin Sodani“and this project work
is submitted as a Part of my Research Work Done During my Summer Internship. The results
embodied in this report have not been submitted to any other University or by any other
Student.
Nilesh Pandey
2
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 3/47
CERTIFICATE
This is to certify that Mr. ANKIT Nilesh Pandey student of second year Masters of
Management Studies (MMS) of Oriental Institute of Management Studies has successfully
completed the project work titled “ RE-EMERGENCE OF TEXTILE INDUSTRY, AFTER
RECESSION”
This project is the record of authentic work carried out during the academic year 2012-2013.
Date: _________________
Prof. Ankita Srivastava Prof. Dr. P.K. Bandgar
(Internal Project Guide) Director
Oriental Institute of Management
3
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 4/47
ACKNOWLEDGEMENT
It gives me pleasure to present this project report, which is an outcome of the study “ RE-EMERGENCE OF TEXTILE INDUSTRYAFTER RECESSION
.” for RSWM Ltd.
Completing a task is a never a one-man effort. It is often the result of valuable
contribution of a number of individuals in a direct or indirect manner that helps on
shaping and achieving an objective.
I wish to express my sincere gratitude to innumerable number of people who have been
associated with me throughout this project. I feel blessed to have the opportunity of
expressing my hearty gratitude to the following personalities, without the help of whom my
project could not have been hatched.
Source of firstly I would like to acknowledge my sincere thanks to Mr. Sachin Sodani
(Accounts Department), Angel Broking Mumbai who gave me an opportunity to carry out
this project and had been a constant inspiration
I am grateful to my faculty guide Prof. Ankita Srivastava (Faculty at Oriental Institute of
Management) for the Summer Internship Project, for their regular guidance without which
my project report would not have been completed.
I am also thankful to the other staff member of Angel Broking ltd. for their continuous
motivation throughout this program, which really helped me in completing this project.
I have no words to express my indebtness for the ungrudging and unfailing co-operation of
my parents. Finally I want to thank all the friends, colleagues for their constant co-operation,
encouragement, help and support throughout the study without which this work would not
have been possible.
Ankit Singh.
4
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 5/47
TABLE OF CONTENTS
Sr.No. Contents Pg. No
1 Executive Summary
1.1 Industry Profile
2. Company Profile
2.1 Background and Inception of the Company
2.2 Nature of the Business Carried
2.3 Vision, Mission and Company Policy
2.4 Products And Services
2.5 Area of Operations
2.6 Ownership Pattern
2.7 Competitors Information
2.8 Achievements and Awards2.9 WorkFlow Model
3.0 Mckinsey’s 7S Frame Work
4.0 SWOT Analysis
5.0 Analysis of Financial Information
6.0 Learning Information
PART B
EXECUTIVE SUMMARY
Rajasthan Spinning & Weaving Mills Limited (RSWM) is the core business company of
L.N.J Bhilwara group. RSWM is a major producer of blended yarns & specialty fabrics. It
produces different variants of blended yarns like P/V, P/C, cotton and mélange.
The primary objective of this project was to study “re-emergence of textile industry after
recession “and its impact on RSWM Limited. The finding of the study reveals that wheneconomic activities across the world have declined sharply, driven by the decline in
5
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 6/47
consumption and exports. In the past few years, around half of the total production of textiles
and garments in India has been exported; 60% of it to markets in the US, Japan and the
European Unions. The recession in the West had adversely impacted the Indian textile
industry. Due to low demand, competition, steep forex fluctuation, high cotton procurement
prices, high interest rates resulted in high cash flow outside. So despite rise in turnover there
has been decline in the companies’ financial performance during 2008-2009, the highlights
are:
• Net revenues from operations increased to Rs.1, 293Cr (20080-2009) from Rs.
1168Cr (2007-2008).
• Operating profit declined from 121.6 to 77 Cr in 2008-2009.
• Financial expenses increased from 43.8 to 68 Cr.
Another, important findings is that in spite of RSWM product being slightly costlier than
the industry rates, the clients do not mind paying this premium ,because of the superlative
quality of the products and services.
RSWM is a preferred supplier over its competitors as the clients perceive the organization
as being highly reliable, passionate about its service the personnel practice excellence as a
core value.
RSWM follows “Market Differentiation Strategy “where the clients are retained over a
period of years because of superior Quality of products & the brand name of the
company.
The pre and post sales services of RSWM both are perceived as “above average by most
of the clients. The maximum revenues are generated from sales of p/v & p/c yarns.
PART A
Industry Profile:
PROFILE OF TEXTILE INDUSTRY
1.1 Historical Background
6
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 7/47
The Indian textile industry has a great legacy, which is perhaps unmatched in the history of
India’s industrial development. India’s textile industry evolved and developed at a very early
stage and its manufacturing technology was amongst the best. Prior to colonization, India’s
manually operated textile machines were among the best in the world, and served as a model
for production of the first textile machines in newly industrialized Britain and Germany.
Indian textiles were sought after for their finesse, quality and design. According to Chouta-
Kuan, the Chinese observer preference was given to the Indian weaving for its and delicacy’
Prestige trade textiles such as Patola from Patna and Ahmedabad, coast were sought after by
the Malaysian royalty and wealthy traders of the Philippines. Textiles have historically
formed an important component of India’s exports. Marco Polo’s records show that Indian
textiles used to be exported to China and South-East Asia. Textiles have also comprised a
significant portion of the Portuguese trade with India. These included embroidered
bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground.
The attractiveness of the fast dyed, multi-colored Indian prints on cotton (chintz) in Europe
led to the formation of the London East India Company in 1600, followed by Dutch and
French counterparts. By the late 1600s there was overwhelming demand for their
governments to ban the import of these cottons from India. The legacy of the Indian textile
industry stemmed from its wealth in natural resources silk, cotton and jute. The textile
industry stemmed from its wealth in natural resources silk, cotton and jute, the technology
used was superior and the skills of the weavers gave the finished product a most beautiful and
ethnic look. The Indian textile industry with such a great pedigree could have gone only on
way from here. But same did not happen.
COMPANY’S PROFILE
ABOUT COMPANY:
7
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 8/47
it was founded by Mr. Laxmi Niwas Jhunjhunwala (LNJ) in 1961.LNJ Bhilwara group has
emerged as one of India’s leading corporate houses, in last four decades.
• Core business companies: LNJ Group is a multi product conglomerate with a global –
presence and with business interests spanning a diverse range of industries –like:
• Textiles:
8
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 9/47
• Power Generation:
• Graphite-Electrodes:
• Information-Technology and IT –enabled services
•Sponge-Iron.
The Group has successfully integrated its operations into today’s Global – Economy, with
export earnings compromising over 46% of total revenues with over 20,000 employees and
17 production units strategically across the country.
9
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 10/47
LNJB as a Brand: LNJB group holds leadership in textile industry .it `s popular Brand in the
market are
Mayur Suiting,
BSL Suiting
La Italia Fashion’s,
Geoffrey Hammond superfine suiting,
Buddy Davis Leisurewear.
The pioneering textile industry of the group is not only a key player in the industry but
also has many first to its credit. The textile division has the sole distinction of producing a
unique fire retardant yarn called Trevira CS (now known as Len zing, Austria).it is also
the sole licensee for the highly specialized yarn called Tencel. The group has been
acknowledged for its world class quality products.
Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS / ISO
9001 : 2000 certification for setting exemplary standards in quality.
Background and Inception of the Company
Rajasthan Spinning and Weaving Mills (RSWML) was incorporated in 1960. It was
promoted by the Bhilwara group which has interests in various group companies. The
10
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 11/47
company is managed by Chairman L N Jhunjhunwala and Vice-Chairman and Managing
Director Shekhar Agarwal. RSWML came out with a Rs 157 cr Euro-issue in 1994 to finance
its ambitious plans to increase spindleage by 18,800, add 24 looms at each of the units and to
set up a process house at its Banswara unit with a capacity of processing 156 lac mtr of fabric
pa. The product-mix of the company includes blends like polyester/viscose, 100% viscose,
100% polyester, polyester sewing threads, 100% acrylic, polynosic blends, silk blends,
viscose/flax, polyester/cotton, 100% cotton melange yarn. In 1993-94, it signed a MoU with
Hydro Quebec International, Canada, to implement 86 MW Malana and 192 MW Allain
Duhangan projects in Himachal Pradesh. It markets its products under the well-known Mayur
brand in India and exports its products to the European and the US markets. It has opened
marketing offices in Italy, Belgium and the UK. During 1997-98, Bhilwara Melba De Witte
Ltd, a joint venture project promoted by the company with Australian and Belgian partners,
has established its leadership in the market for automotive furnishing fabric. In 1998-99, it
increased the installed capacity of spindles and looms to 1,31,376 nos and 157 nos
respectively and commissioned 4.2 MW each of power plant for captive consumption. Term
loan upto Rs. 24 crores has been sanctioned from PNB for Yarn Dyeing project at
Mandpam,Looms at Gulabpura and the modernisation scheme has already commenced. The
Board of the company has approved for acquiring Rishabhdev Textile Mills unit of HEG Ltd
and it was acquired with effect from 01.04.2003. The 2.8 MW at Mandpam at cost of Rs.
10.00 crores was installed in 2002-03 and operations has commenced during the year itself.
RSWM is an IS/ISO 9001:2001 and SA-8000:2008 accredited Company, which moved from
strength to strength and today, the largest manufacturer and exporter of synthetic spun yarns
from India. RSWM has built one of the most impressive textile manufacturing infrastructures
in the country: 8 state-of-the-art manufacturing plants; 4,10,000 spindles; 190 looms;
1,20,000 MTA yarn capacity; 30 MMA fabric capacities, including denim fabric. The
Company also owns a fabric process house at Mordi (Rajasthan).
RSWM is self-reliant in captive power generation of 46 MW that feeds to its integrated units
spread across the state of Rajasthan, located at Kharigram, Banswara, Mordi, Mandpam,
Rishabhdev and Ringas.
The main competitive strength of the Company is its innovative product range that includes
specialty, functional and technical yarns and fabrics. The Company recently has shifted its
11
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 12/47
focus to produce more and more eco-friendly and natural textiles in order to meet the
emerging needs of the market.
RSWM exports its range of yarn and fabric to over 73 countries worldwide.
The Company holds the prestigious ‘Golden Trading House’ status and, has received Export
Awards from the Synthetic and Rayon Textiles Export Promotion Council for several years.
The Company is a recipient of the “Rajiv Gandhi National Quality Award” received twice
from the Bureau of Indian Standards and many more quality certifications.
One of the leading brand from RSWM, `Mayur Suitings’, enjoys high brand equity in its
target segment in the country.
Nature of Business
1. To carry on the business of manufacturing, buying, selling, importing, exporting and
dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester,
worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or
merchandise whether textile felted, netted or looped.
2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated
fabrics, textiles, hosiery and silk or merchandise of every kind and description and other
production goods, articles and things as are made from or with cotton, nylon, silk, polyester,
acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any
process, whether natural or artificial and by mechanical or other means and all other such
products of allied nature made thereof.
Vision of the Company
12
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 13/47
Our Vision is to forge Ahead into the New Millennium with an Immediate sense of
Purpose and to be Seen as a Undisputed Leader, fully occupied to deliver the
best.
Business Philosophy
• Ethical practices & transparency in all our dealings
• Customers interest above our own
• Always deliver what we promise
• Effective cost managementQuality Assurance Policy
We are committed to being the leader in providing World Class Product & Services which
exceed the expectations of our customers Achieved by teamwork and a process
of continuous improvement
CRM Policy
A Customer is the most important visitor on our premises. He is not dependent on us but
we are dependent on him. He is not interruption in our work, but is the
Purpose of it. We are not doing him a favour by serving. He is doing us a
favour by giving us an opportunity to do so
13
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 14/47
14
Products and Services of RSWM LTD.
RSWM offers one of the broadest range of products in terms of fibre blends, counts and
shades. Fibres possessed by the Company include polyester, viscose, acrylic, cotton, wool,
rayon, silk, polyamide and linen. In addition the Company produces a range of speciality
products made out of both unorthodox fibres i.e. soya, protin, bamboo, and branded fibres
such as tencel and lycra
RSWM manufactures a range of blended suiting fabric and has a significant presence in the
domestic market with its Mayur brand. Apart from this, this segment includes a fabric
processing plant in Mordi (Rajasthan). The Company believes that there is a huge potential
for this business in the new market scenario and has plan to stratigecally move to the higher
value added products in fabric.
RSWM ventured into Denim Fabric manufacturing business in line with strategy to move to
higher value-added segments for wider based growth in the future. The Company has plant
to focus on producing high-end Speciality Denim fabric which has better realization and
demand in the international market. Keeping pace with the changing time, the company is
working closely with leading International Consultants to manufacture the finest products.
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 15/47
Area of Operation of RSWM Ltd.
1. To carry on the business of manufacturing, buying, selling, importing, exporting and
dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester,
worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or
merchandise whether textile felted, netted or looped.
2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,
stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated
fabrics, textiles, hosiery and silk or merchandise of every kind and description and other
production goods, articles and things as are made from or with cotton, nylon, silk, polyester,
acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any process, whether natural or artificial and by mechanical or other means and all other such
products of allied nature made thereof
The Shareholding Pattern of the Company as on 31st December 2012 is as Follows:
Shareholding Pattern - RSWM Ltd.
Holder's Name No of Shares % Share Holding
Promoters 6971884 30.12%
GeneralPublic 5866402 25.34%
ForeignPromoter 4934770 21.32%
OtherCompanies 2898120 12.52%
NBanksMutualFunds 1661008 7.18%
FinancialInstitutions 769953 3.33%
Others 44720 0.19%
CentralGovt 1732 0.01%
ForeignInstitutions 100 0%
15
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 16/47
Competitor’s Information:
Major Players in the Region
Raymond’s
Reliance textiles
GokaldasShari exports
Arvind mills
K. Mohan exports
and BSL limited.
Achievements and Awards
The coveted ISO 9001-2000 Quality Management System Certification was received in
January 1997, which speaks volumes about the Company's.
RSWM is the winner of SRTEPC Highest Export Award for polyester / viscose yarn
exports for the last 13 years
RSWM bagged ‘The 2007 Excellence Award for Financial Performance and Analysis’
instituted by Rajasthan Chamber of Commerce & Industries, Jaipur
RSWM’s Rishabhdev unit bagged National Export Award, and the SRTEPC Excellence
award for highest production in export of 100% Polyester Spun Yarn
An advanced machinery repertoire from world leaders, ensures flawless quality and more
versatility at each and every stage.
Rajiv Gandhi National Quality Awards Commendation certificate in Large Scale Textile
Industry to Banswara and Kharigram unit in year 2006 and year 2007 respectively.Our Banswara plant certified for producing and selling Organic Cotton yarn from "Control
Union Certification" (formerly known as SKAL)
Certificate of "Global Organic Textile Standard" (GOTS) for producing and selling
100% Organic Cotton yarn to our Banswara plant.
Certificate of "Organic Exchange" (OE)for producing and selling Blended yarns with
Organic Cotton to our Banswara plant.
Certificate of SA-8000 speaks that all the material produced by the RSWM Ltd. by
respecting the environment and ethical values for our Banswara unit.
16
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 17/47
Certificate of Fair Trade from Fair Trade Labelling Organisation for producing selling
100% Fair trade cotton and its Blended yarn, for Banswara unit.
Certificate of Global recycle standards (GRS) for producing selling the recycled cotton
and Blended yarn with and without recycled man made fibers.
Having Oekotex standard 100 certiifcate for most of the products
WOKFLOW MODEL
Buyer visits
chooses and place
a order
Samples checked
and sent to buyers
for approval
NO
YES
Buyer places order
for his requirement
17
Quality and
quantity check of
fabric
Laying& cutting
Suggested corrections
incorporated;
samples resubmitted if
buyer insists
Marking and
numbering
Appro
v -ed
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 18/47
Collection of
fabric/accessories
from ware
house /main
stores/receive
from supplier
Tagging,
labeling, Final
checking
Pre production
sample approval
Packing and
Dispatch
The workflow model of RSWM Ltd.limited starts with the buyer’s intent to visit the
showroom and places order and the approval for the same order is done through pre
production approval. The collection of fabric against the material requisition slip and quality
and quantity check of fabric is done at fabric department. Once the material is checked it
passes to various departments which consist of inline quality assessment .Finally the finished
products are checked and packed in the package department for order delivery and the same
will be passed into warehouse.
18
Sorting ,Sewing
and Ironing
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 19/47
3. Mckensy’s7s frame work with special reference to organization under study
McKinsey’s 7S Framework:
The 7-s frame work of Mc-kensy`s is a management model that describes how one can
holistically and effectively organize a company. Together these factors determine the way in
which a corporation operates. Managers should take into account all seven of the factors to be
sure of successful implementation of a strategy- large or small. They are all independent, so if
you fail to pay proper attention to one of them, it can bring the others crashing down around
you. On top of that, the relative importance of each factor may vary over time.
Those seven elements are distinguished in so called hard S’s and soft S’s. The hard elements
are feasible and easy to identify. They can be found in strategy statements, corporate plans,
organizational charts and other documentations. The 3’s across top of the model are described
as “Hard S’s”
Strategy: Thy direction and scope of the company over the long term.
Structure: The basic organization of the company, its departments, reporting lines, areas of expertise and responsibility.
19
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 20/47
Systems: formal and informal procedures that govern everyday activities covering everything
from management information systems, through to the systems at the point of contact with
the customer
The 4’s across the bottom of the model are less tangible and more cultured and were termed
as soft S’s by Mc-Kensey
Skills: the capabilities and competencies that exist within the company what it does best.
Shared values: the values and beliefs of the company ultimately they guide employees
towards valued behavior
Staff: the people resources and how they are developed trained and motivated.
Style: the leadership approach of top management and the company’s overall operating
approach.
20
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 21/47
SRUCTURE:
Board of
directors
Director
Sourcing and
development
Director-
Marketing&
Imports
Director(Gen.,
admin,finance
&logistics)
Director
Marketing
Director
Production
Manager
internal
audit
Manager
sampling
production
Manager-LC
payments&
cargo
clearance
Head of
dept:
Personnel
IT
Manager
s
Various
departmen
ts.
Asst. manager
network
admin
System
analyst
Network
admin
EDPassistants
Programmers Supportstaff
Directors(sourcing
and Development)
21
Purchase
manager(accessories)
Production
Coordinators
Quality control
managers
AssistantsManufacturing
units
Quality
controllersF1 F2A F2B F3 F4
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 22/47
Manager(sourcing
and
Development)
Purchase
manager
Fabric
Manager
fabric
godown
Manager
sampling
Manager
sampling
godown
Laboratory
assistant
Purchase
manager
fabric
Fabric
inspector
Merchandisers Assistants
Godown
assistants
STRUCTURE:
Business needs to be organized in a specific form of shape that is generally referred to as
organizational structure. Organizations are structured in a variety of ways, dependent on their
objectives and culture. The structure of the company often dictates the way it operates and
performs. Traditionally, the businesses have been structured in a hierarchical way with
several divisions and departments, each responsible for a specific task such as human
resources management, production or marketing. Many layers of management controlled the
operations, with each answerable to the upper layer of management.
VARIOUS DEPARTMENTS:
This is to know that the function of Gokaldas exports limited control has been clubbed for the
following department.
1. Marketing department
2. Finance department
3. Personnel department
4. Planning and control department
22
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 23/47
5. Production department
A) Merchandising department
B) Sampling department
C) CAD department
D) Cutting department
E) Sewing department
F) Quality department
G) Finishing department
H) Packaging department
MARKETING DEPARTMENT:
Products are well accepted in India as well as foreign markets and focusing more
clearly on the future to ensure long growth and leaping towards market leadership.
The objective of all economic activities is for the satisfaction of human needs.
Marketing is a process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchange that satisfy individual
and organizational objectives.
Functions of marketing department:
1) Analyze various market opportunities and threats.
2) Collect marketing information and anticipate to the demand.
3) Scan the marketing environment
4) Develop market richer strategies.
5) Sales promotion through advertising and maintain good public relations.
ACCOUNTS DEPARTMENT:
23
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 24/47
The department is playing vital role by providing and maintaining the entire details of
each and every financial activities of the company.
Functions:
1) To provide accurate and complete systematic information of financial activities.
2) To maintain all the books of accounts and other financial documents.
3) To prepare periodic financial statements of the company like P&L Account and
Balance sheet.
PERSONAL DEPARTMENT:
It is a branch of personal department (HRD). Time office is a key to personnel office.
It maintains the arrival and departure time of all the staff members including
managerial staffs. The workers are also requiring signing in the attendance register to
avoid the mis -representation or escaping trick of workers while going out of the
department. The time office sends these records to the personnel department. This
records will help in wage fixation, salary fixation, granting of leave and allowances to
workers.
Salary administration:
There are skilled, semi-skilled and un -skilled workers in the organization and they are pay
according to ability and qualification and with consideration of government regulation.
Attendance:
The department records the time (i.e., the time of workers in and out of the company) through
punch card system write at the entrance by the time officer.
Employee’s data:
The personnel department keeps the records of employees.
Policies of HR department:
Child labor free:
24
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 25/47
No child labor is engaged in any our unit, as they give more importance during childhood.
They motivate on compulsory education for children.
Involuntary labor:
They will not use any forced or involuntary labor, whether prison, bonded, indentured or
otherwise
Coercion and harassment:
In Gokaldas exports limited , they treat each employee with dignity and respect as among
their own family members , and will not use corporal punishment, threat of violence or other
forms of physical, sexual, Psychological or verbal harassment or abuse.
ESI and PF benefits:
All their employees of Gokaldas exports limited are covered under ESI and PF benefits, as a
part of social responsibilities.
Non discrimination:
Gokaldas exports limited will not discriminate in hiring employment practices, including
salary, benefits, advancement, discipline, termination or retirement, on the basis of race,
religion, age, nationality, social or ethnic origin, sexual orientation, gender, political opinion
or disability.
Association:
GEL will respect the rights of employee to associate, organize and bargain collectively in a
lawful and peaceful manner, without penalty or interface.
Health and safety:
GEL provide employees with a safety and healthy work place in compliance with all
applicable laws and regulations, ensuring at a minimum reasonable access to purifier water
and sanitation facility, Electric shock preventer with the help of an automatic tripping switch
system, lightening the protector with adequate lightening and ventilation.
PLANNING AND CONTROLLING DEPARTMENT
25
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 26/47
In co-ordinates and arranges for preventive and break down maintenance of machinery and
equipment. It identifies the needs of the training people at all levels of production planning
and control department and communications to management and information system and
training department.
The monthly machine shop requirement is worked out referring to procedure plan the plan for
material indent is done considering the following points.
1. Stock of components
2. Pending purchase order and indents as on the day
FUNCTIONS OF PPC
1. To organize material procurement, production, planning and periodic review with all
concerned heads. To plan for man power and equipment for production and control purposes.
To plan and organize the layouts of RPD and assembly for effective operations.
2. To co-ordinate and arrange for the prevention, break down and maintenance of machinery
and equipment. Conducting periodic meetings for continual improvements in quality of
products by giving guide lines at needed stages and finding out the requirements for training
and functional improvements for performance enhancement of workers. Conducting design
review meetings, non-conformance reviews meetings, customer complaints meeting and
quality audits for finding out solutions.
3. Keeping track of material requirements bases on various work order and inspecting and
controlling the flow of incoming materials, rejections and updating the records. To give
drawing requirements to design and development department and follow –up.
PRODUCTION DEPARTMENT:
A) MERCHANDISING
Merchandising department is one of the most important departments of any garment industry,
because it functions for getting orders from buyers. This department works as a link between
buyer and manufacturer. They convey what the entire buyer expects from manufacturer. This
department plays a main role as communicator.
B) SAMPLING
26
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 27/47
Before actually making any samples, it is required to develop the patterns for it. The pattern
masters at GEL were equipped with expertise in the pattern making, evident by the fact that
they never required any mannequins for developing the patterns as per the measurements sent
by the buyer.
C) CAD
The best fit sample which has been approved by the buyer comes to the CAD department;
here GEL uses the Electra system. With the help of the digitizer the pattern is designed. Than
the minor adjustments which have to be made using Electra system.
C) CUTTING
Cutting room is one of the core areas in any garment organization. As a unit cutting room has
a greater effect on excessive manufacturing cost than any other department concerned with
the actual production of garments.
D) MATERIALS FROM STORE
According to the schedule fabric comes from store department to cutting department. Fabric
is issued in accordance with the style type, designated with a number, which is different for
different garments.
E) PATTERN PLACEMNT
The final step in the spreading is placing the marker on the lay. After the fabric is relaxed, the
marker planner is provided by the cad department, which mentions the lay width and length
and number of lays, efficiency, pattern placement and number of patterns.
F) SEWING
The heart of garment unit is the department where the actual production takes place: sewing
department which is divided into batches. The sewing department has two quality inspection
wings.
1. In line checking
2. End line inspection
H) FINISHING
27
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 28/47
Finishing process is to check the garment for any defect and make them appealing through
pressing. Garments are checked according to quality system approved by a particular buyer.
I) PACKAGING:
The finished garments are packed in the cartons as per the packing plan. Each carton has
specified number of garments and the quantity can neither be increased nor be decreased after
it is planned.
SYSTEM:
Every organization has some systems or internal processes to support and implement the
strategy and run day-to-day affairs. For example, a company may follow a particular process
for recruitment. These processes are normally strictly followed and are designed to achieve
maximum effectiveness. Traditionally the organizations have been following a bureaucratic-
style process model where most decisions are taken at the higher management level and there
are various and sometimes unnecessary requirements for a specific decision (e.g.
procurement of daily use goods) to be taken. Increasingly, the organizations are simplifying
and modernizing their process by innovation and use of new technology to make the
decision-making process quicker.
Quality monitoring system:
Pre-production check:
Risks are reduced by checking material components, accessories/ user manuals etc. at this
stage itself.
Fabric inspection:
The fabric is received from the warehouse whenever it’s required and it is checked for the
100% quantity and 10% quality. The 10% 0f the total fabric received is checked for the
quality using Fabric inspection machine based on four points system.
The fabric is also checked for the shrinkage after it has been send for washing (Dry wash,
enzyme wash and chemical wash)
Initial production check:
28
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 29/47
First finished projects are checked against buyer’s specification and prototype sample.
Deviations are identified and brought out for correction.
During production check:
Inspection during production carried out to check and verify that the initial discrepancies
have been rectified and to ensure that the average quality standard of production runs
Inline pre-final& final inspection:
Final random inspection is carried out when the total consignment is packed and ready for
shipment. FRI is performed according to the International Inspection Standards.
The detailed physical inspection of the samples selected at random is based on specifications
of the buyers and it cover the criteria such as design/style, shrinkage, accessories, appearance,
markings, colour, labeling, material, assortments, workmanship, measurements and packing
etc.,
7S AS APPLIED TO RSWM Ltd.
1. STRATEGY:
Their duties of being textile major RSWM ltd which has been recently going through a bad
patch owing to reducing exports and falling margins is undertaking a business transformation
in a bid to become a billion dollar company. The second criteria is Arvind ltd is now giving
more focus to brands and retail which until now contributes 19% of total revenue. It will also
move to become an integrated textile player by producing fabric as well as retailing it. Major
emphasis would be on the value store format ‘Mega Mart’ which is targeted to achieve Rs
1000crore sales in 3yrs. Other than that Gokaldas exports plans to set up more formats by
2012. The strategy may work out to be rewarding for the company as it has a good portfolio
of domestic and international, and has been a national player the move also helps it toward
off any risk it faces from the recession in exports markets.
2. STRUCTURE:
Gokaldas exports has adopted an organizational structure called the "Strategic Business Unit
structure" Under this structure, a company groups under one business unit, distinct product
groups comprise product groups targeted for distinct market segments and using distinctive
technologies in the manufacturing process. A company puts each business unit under the
command of a different person. The person heading a business unit is responsible for the
29
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 30/47
effective and efficient operation of the unit. This pattern of organization allows the company
to concentrate its energies on all the important business.
3. SYSTEMS:
All the systems used in the company, to get things done, also needed change to keep pace
with the changes in strategy and structure. These systems comprise performance appraisal
and counseling systems, compensation systems, other planning and monitoring systems. We
have thoroughly revamped all these systems to meet the new organizational demands.
4. SKILLS:
Company is good at the designs of apparel which go along with the recent trend it has
passionate young fashion designers with innovative skills who intend to give healthy
competition
5. SHARED VALUES:
Shared values refer to the same guiding values amongst the employees. It explains what does
the organization stand for and what it believes in. Its central beliefs and attitudes. It explains
the vision, mission and goals of the company.
6. STAFF:
They follow different methods for recruiting the staff and workers. Telephonic Interview is
followed for staff followed by meeting the heads of the branch. They follow a unique method
to recruit the workers. The production heads visit villages and motivate them to join and so
there is no process which the workers have to undergo. Motivation may find a way by
providing transportation facilities and frequent hikes.
7. STYLE:
There the leadership journey starts with setting a clear direction, gaining commitment and
aligning people, and ensuring passion driven execution in Gokaldas exports mills operations
4. SWOT ANALYSIS OF RSWM :
Strength
• RSWM is pioneer Company of LNJ Bhilwara Group which is largest Exporter of
Polyester / Viscose Yarn.
• RSWM Products are known as Quality products and bagged the premier in
comparison of competitor’s product.
30
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 31/47
• Its fabric is marketed with the well-known brand name of MAYUR.
• Textiles future better after opening of Quotas.
• RSWM accorded with certificate of IS/ISO 9001:2000 and weighted for quality
commitment.
• Time To Time Expansion & modernization of plants.
• Availability of highly trained manpower in both, management and technical
Weakness
• Competition with the local process house/independent loom units in piece dyed
suiting qualities in view of their lower administering and other cost continuous
product development will enable to compete with them.
• RSWM is not able to compete with Bhilwara local market with the reference of
Trading Channel.
Opportunity
• RSWM has well known establish arrangement to sell its Yarn all over the world and
worldwide.
• Having vision to penetrate in the Readymade market.
• Entering into the Thermal Power Project.
• Export to USA.
Threats
• Opening of Import and Duty Reduction in the Country.
• Increase trend of readymade garments and fashion fabric viz. Cotton fabrics as against
individually stitching change.
5. Analysis of Financial statement
Profit loss account
(Rs crore)
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Income
Operating income 2,453.29 1,987.00 1,950.59 1,530.77 1,292.55
31
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 32/47
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Expenses
Material consumed 1,501.50 1,375.92 1,161.73 928.42 848.65
Manufacturing expenses 230.87 198.18 182.33 182.93 159.41
Personnel expenses 204.25 164.20 154.11 123.01 112.90
Selling expenses - - 75.08 71.12 73.58
Adminstrative expenses 208.33 110.04 48.26 44.29 27.66
Expenses capitalised - - - - -
Cost of sales 2,144.96 1,848.35 1,621.51 1,349.78 1,222.20
Operating profit 308.34 138.65 329.08 180.99 70.35
Other recurring income 22.84 22.33 12.70 10.20 7.15
Adjusted PBDIT 331.17 160.99 341.78 191.19 77.50
Financial expenses 121.29 104.04 72.96 57.87 68.89
Depreciation 108.45 89.10 80.15 87.64 72.67
Other write offs - - 0.48 0.42 0.53
Adjusted PBT 101.43 -32.15 188.18 45.27 -64.59
Tax charges 33.56 -6.51 58.26 12.48 -31.48
Adjusted PAT 67.87 -25.64 129.93 32.79 -33.11
Non recurring items - - -16.61 2.36 -31.34
Other non cash adjustments - 3.85 9.65 0.88 0.60
Reported net profit 67.87 -21.79 122.96 36.03 -63.85
Earnigs before appropriation 144.06 76.19 156.03 65.85 43.30
32
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 33/47
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Equity dividend 23.15 - 34.72 5.79 -
Preference dividend - - 0.08 1.75 0.84
Dividend tax 3.93 - 5.74 1.25 0.14
Retained earnings 116.98 76.19 115.48 57.06 42.32
Balance sheet
(Rs crore)
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Sources of funds
Owner's fund
Equity share capital 23.15 23.15 23.15 23.15 23.15
Share application money - - - - 3.05
Preference share capital - - - 5.00 25.00
Reserves & surplus 303.61 263.75 287.64 206.08 172.36
Loan funds
Secured loans 1,179.87 1,191.27 1,138.47 1,030.61 1,072.43
Unsecured loans 1.23 1.70 2.55 1.79 0.95
Total 1,507.86 1,479.87 1,451.80 1,266.62 1,296.94
Uses of funds
Fixed assets
Gross block 1,806.93 1,574.19 1,518.87 1,444.01 1,427.34
Less : revaluation reserve - - - - -
33
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 34/47
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Less : accumulated depreciation 841.12 794.28 716.85 647.18 567.64
Net block 965.81 779.91 802.02 796.83 859.70
Capital work-in-progress 11.15 250.93 29.00 5.24 6.33
Investments 110.67 60.27 60.15 60.15 64.44
Net current assets
Current assets, loans & advances 762.84 642.09 850.14 600.57 513.29
Less : current liabilities & provisions 342.60 253.34 289.52 196.65 147.72
Total net current assets 420.23 388.76 560.62 403.92 365.57
Miscellaneous expenses not written - - - 0.48 0.90
Total 1,507.86 1,479.87 1,451.80 1,266.62 1,296.94
Notes:
Book value of unquoted investments 51.64 17.64 17.64 17.64 20.42
Market value of quoted investments 39.57 43.06 40.25 46.74 17.62
Contingent liabilities 624.42 198.68 375.62 134.55 73.07
Number of equity sharesoutstanding (Lacs) 231.49 231.49 231.49 231.49 231.49
6. Learning Experience
Internship has helped a lot to understand the practical side of job, which is different from the textbook theories.
It has also helped me to improve my communication skills. Customer handling was one of the important
learning that I gained from my internship. From the customer point of view, it is easy. But not so when in the
position of a staff or employee. Was also able to maintain a good relationship with the employees on and
off the shop floor.
It is very well said that ―Finance always need a theory backup‖.
One needs to really know what finance is all about and how much it is important for the
company‘s smooth functioning.
34
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 35/47
OBJECTIVE AND SCOPE
The objectives of the research are as follows:
SPECIFIC OBJECTIVES:
• To analyze the effect of recession in textile industry.
• To analyze the performance of RSWM during and after recession.
• To understand the market position of the company and how the company is managing
their target market areas(competitors & its marketing department).
• To understand the processing of fiber.
• To understand the clients choice through questionnaire.
35
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 36/47
RSWM is one of the largest textile companies in terms of turnover. Getting the original
experience of the business and understanding the business under situation like recession
and strategies to sustain under such situation was the scope of my project.
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design used for this project is descriptive design. It focused on the following:
• The objectives of the study are clearly formulated.
• The techniques of data collection were designed in advance.
• The processing and analysis of data worked out in anticipation.
• The finding of the reports is per guidance of management.
DATA COLLECTION METHODOLOGY
The source of information is gathered through the primary and secondary data. While
resorting to these two sources of information, major emphasis is laid on primary source as
it gives first hand information in the area of survey. Primary Data collected was done
using the questionnaire method. A copy of the questionnaire attached as an annexure. The
open ended data analyzed qualitative.
36
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 37/47
Secondary data collection was done by referring to various generals, magazines and
internet. The secondary data collection has been used to address the research objective-To
understand the textile industry as a whole including fiber to processing .These sources of
secondary data have been acknowledged in the bibliography section of this report.
DATA ANALYSIS
The sampling design highlights the sample size and sampling technique that is
used for this study. A modest sample size of 30 respondents was selected for
the study. The sample was selected using the convenience sample technique.
This sample comprise of the existing clients of RSWM Ltd .These respondents
were selected by references given directly through the company personnel.The entire sample population is from the Bhilwara district of Rajasthan state.
OBSERVATION AND FINDINGS
Economic downturn
The year 2008 -2009 has been an exceptional year in the last 60 years because of
exceptionally challenging economic scenario. Across the world, the economic activity has
declined sharply, driven mainly by the decline in consumption and exports. The advanced
economies are facing a severe and synchronized contraction with unprecedented 7.5
%decline in real GDP during the Q4 of 2008.Reflecting sharp demand contraction,
consumer price inflation has reached near zero in several advanced countries, raising
concerns about sustained deflation on the way forward. Unemployment rates in the US,
EU, UK and Japan have increased significantly.
37
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 38/47
The slump in export demand and tighter trade credit caused deceleration in aggregate
demand, reversal of capital flows led to equity market losses and currency depreciations;
global liquidity tightening resulted in lower external credit to Emerging Market
Economies (EME) and market rigidities and erosion of confidence led to widening of
credit spreads.
QUESTION-WISE ANALYSIS OF THE CUSTOMER -SURVEY
A. In which type of manufacturing segment, you deal with?
Piece Dyed: …….
Fiber Dyed: ..........
Fancy Dyed: …….
• ANS: The respondent of this survey were thirty clients of RSWM Ltd. They
preferred Piece & Fiber dyed segment. The P/c and P/V are the most products of
RSWM followed by 100% cotton. It can be implied that RSWM follows the
“marketing differentiation strategy” where their clients are retained over a period of
38
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 39/47
years because of the superior quality of the product and the brand name of the
products.
B. In which type of market, you deal?
Domestic: ………..
Export: ………….
• ANS: There was mixed reaction. Most of the clients, purchased for sales in domestic
market.
C. Are you regularly associated with RSWM?
YES: ………
NO: ……….
• ANS:
D. Are you satisfied with the quality of RSWM yarn?
YES:……
NO: ……
• ANS: the product of the RSWM is better in quality and well accepted in the market
.Customers are satisfied with the quality of the product and that’s why its rate is
39
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 40/47
higher than the other mills producing the same product .Also there is consistency in
the quality.
N.Are you satisfied with price structure of RSWM yarn?
YES: …….
NO: ………
• ANS: the clients felt that the prices of the RSWM products are slightly higher than the
prices of similar products available in the market.
The flowing table illustrates this point with factual data.
PRODUCT NAME RSWM PRICES AVERAGE INDUSTRY
PRICES.
2/24 PV GREY 143.00 141.00
2/24 PV 128.00 126.00
2/32 PV 133.00 131.00
2/50 PV 65/35 DYED 217.00 205.00
40
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 41/47
O. How would you rate RSWM with other manufacturer in terms of Quality & Price?
(please number:1,2,3…)
RSWM: ………
Sangam: ……….
Birla group of industries: ……….
Orient syntax: ……….
• ANS: On the basis of quality RSWM was rated as number 1 and on the basis of price,
it was ranked as 2nd & SANGAM as no1.
P. How will you mark, the Pre and Post services, provided by the RSWM Marketingoffice to the clients?
Excellent: ………..
Good: …………….
Average: ………….
• ANS: it was marked as good.
Pre-sales services: The clients appreciated the promptness with which the marketing
manager would attend the needs of the clients. they also liked the fact that the manager
would satisfy all the queries and concerns of the clients before closing the deals.this we
can say the performance of the pre sales services of the RSWM are rated as “more than
satisfactory”.
Post sales services: The post sales services of RSWM are an indispensable aspect of the
clients experience with the company .this is especially so, as the clients are required to
41
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 42/47
make a full advance payment, while placing the order. Usually the clients are happy with
the product ,but if any dis -satisfaction with regards to the color or tenacity of the yarn
,the company is known for quick adequate replacement .this post sales services of the
RSWM makes it as a preferred supplier.
Q. According to you which are the most effective media?
T.V. : ……….
Magazines : ……….
News Paper : ……….
Radio : ………..
Mouth Publicity : ……
• ANS: 40% of the respondent felt that “word of mouth” publicity is the most effective
media for the yarn industry.
42
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 44/47
R. Any suggestions,you would like to give for improvement?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
…………………………………………………………………………
• ANS :The respondent have given many suggestion to improve various aspects of the
RSWM business process ,as follows:
a. Company should increase the production cycles to reduce delivery time.
b. Company should revise the payment terms to make it more flexible .eg.50% at the
time of booking and the remaining at the time of delivery of the goods.
c. The yarn industry currently operates primarily on the basis of personal
network.RSWM being a major player in this industry can transform the way of doing
business by adopting a more professional approach. This will help smaller
organizations to benefit by RSWM products.
44
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 45/47
LIMITATIONS OF THE STUDY
a. The survey is based on a small sample size .Thirty respondents is an insufficient
number to draw conclusions about RSWM Ltd and Its clients perception s about its
operations. A large sample size would have made the study more accurate.
b. Since the primary study is based on customer –feedback through questionnaire
Methodology, the limitation of the respondent, bias creeps in. some respondent may
not be honest in giving their opinions or may have factors like respondent
fatigue,respondent dis-interest ,which may yield factually incorrect information in the
survey.
c. The data analysis techniques are basic and the research lack s the use of highly
sophisticated statistical tools.
45
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 46/47
SUGGESTIONS AND RECOMMENDATIONS
Based on the data obtained, the qualitative feedback gives two major insights which have
been explained as suggestions and recommendations.
1. The objective of the company must be to maintain the optimum balance of
inventory.RSWM Ltd should provide goods immediately on demand of customers to gain
reliability and retain loyal customers with the company. The clients of the company have
expressed their dissatisfaction with the time taken by the company to deliver the products.
This is a concern and can be addressed as quickly as possible so that the customers –as a key
stakeholder of the business remain “happy” with the organization.
2. Being a major player in the industry, RSWM Ltd should follow a professional
approach to get new business. A company of this long standing and credibility has the
influence to change the traditional ways of doing business.RSWM, known to be a Learning
Organization can create formal channels of attracting new customers and not depends on
informal or personal networks alone .this is important as it will allow smaller firms to take
benefits of the superlative quality yarns produced by RSWM Ltd.
46
7/29/2019 SIP Final Docx
http://slidepdf.com/reader/full/sip-final-docx 47/47
BIBLIOGRAPHY AND WEBLIOGRAPHY
BIBLIOGRAPHY:
• Strategic marketing problems –cases and comments by Roger kerin,Robert .A
• Magazine-reliance publication.
• Local newspaper
WEBLIGRAPHY:
• www.rajasthanspg.com
• www.lnjbhilwara.com
• www.rswm.in
• www.wikipedia.org