Welspun Report

eer

Welspun

AProject Report on industrial visit

atWelspun Textile ltd.

SUBMITTED BY :- GUIDED BY:-

Name:- Rajendra.K.Prajapati. Miss. Dipty Humbal

Year:-F.Y B.B.A

Roll no:-10 B.B.A. 27

SUBMITTED TO:-

DNV INTERNATIONAL EDUCATION ACEDAMY,

KRANTIGURU SHYAMJI KRISHNA VERMA KACHCHH

UNIVERSITY, BHUJ

Academic year (2010-2011)

DNV INTERNATIONAL ADUCATION ACADEMY GANDHIDHAM. Page 2certificate

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THIS IS TO CERTIFY THAT

Mr./Miss………………………………………………………………

Of …………………………Class, Roll No,…......................................

Exam No,…………………………………………….has satisfactorily

Completed his/her term work

In……………………………………………………………………for

The term ending in……………………………………… 2010 -2011

Date :-………………..

Signature

PREFACE

DNV INTERNATIONAL ADUCATION ACADEMY GANDHIDHAM. Page 3

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This report is on the industrial visit conducted at Welspun India

Ltd. (Textile). By the collage as it is included in the syllabus of F.Y

B.B.A.

This is to fulfill the purpose of feeding the practical knowledge to

the students. By this report students could know that how any industry

works in practice in day-to-day routine.

We the students are very much thankful to the concerned faculty

Mis. Dipty Hambal for her kind effort to make out the proper

arrangement for industrial visit and preparation of this report.

ACKNOWLEDMENT


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We would like to convey our heartfelt thanks to Mis. Deepti

Humble, our business management teacher who always gave valuable

suggestions and guidance for completion of our project. She helped us

to understand and remind important details of the project that we would

have otherwise left. Our project has been a success one only because of

her guidance.

INDEXSR.NO. PARTICULARS PAGE NO.


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1. General Information 1.08

1.1 Industry profile 1.09

1.2 Location Domestic and International, Reasons 1.15

1.3 Mission Statement, Vision of Company 1.15

1.4 Establishment Year, Market Share 1.18

1.5 Product Profile 1.19

1.6 Brief History of Company 1.23

2. Manufacturing/ Production/ Processing Department 2.24

2.1 No. of Employees in This Department 2.25

2.2 Production Process 2.25

2.3 Use of Technology or Machinery 2.39

2.4 Quality Control during Production Process 2.40

2.5 Raw Materials 2.42

2.6 Measures taken for Pollution Control 2.42

3. Purchasing And Store Department 3.43

3.1 Selection of Raw Material Suppliers 3.44

3.2 Storage of Raw Materials 3.44

3.3 Steps Taken for Safety of Raw Materials 3.44

4. Personal Department 4.45

4.1 Recruitment and selection 4.46

4.2 Sources of recruitment 4.46

4.3 Training welfare and motivation 4.48

4.4 Human resource development 4.50

4.5 Management levels 4.51

4.6 Attendance and identity card 4.52

4.7 Code of conduct 4.52

5. Marketing Department 5.53

5.1 Umbrella of Products, Brand Name & Positioning 5.56


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5.2 Segmentation and Targeting 5.56

5.3 Market Research 5.57

5.4 Competitors 5.58

5.5 Marketing Strategy 5.59

6. Finance Department 6.60

6.1 Company Profile 6.61

6.2 Ratio Analysis 6.62

7. Annexure 7.63

7.1 Profit and loss a/c 7.

7.2 Cash flow 7.

7.3 Balance sheet 7.

8. BIBLIOGRAPHY 8.65

9. EVALUTION SHEET 9.


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Industry Profile

This report have been made on a textile company.


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What is Textile…?

A textile is any kind of woven, cloths or a non-woven fabric. Textile also refers to the

yarns, threads and wools that can be spun, woven tufted, tied and otherwise used to manufacture

cloth. The production of textiles is an art , whose speed and scale of production has been altered

almost beyond recognition by mass-production and the introduction of modern manufacturing

techniques.

Many textiles have been in use for millennia, while others use article fibers and are recent

inventions. The range of fibres has increased in the last 100years. The first synthetics were made

in the 1920s and 1930s.

Textiles can be made from a variety of materials. The following the partial list of the

materials that can be used to make textiles….

Animal Origin :- In this we can take Rabbit hair, Camel hair , Cashmere, Mohair,

Silk, Wool, etc.

Vegetable :- Coir (fiber from coconuts.), Cotton, Grass, Rush and Straw, Hemp

(mostly used in rope making, Jute, Kapok, Linen(made from flax), Ramie, Seaweed{a

water soluble fiber (alginate) is produced}, Sisal, etc.

Derived from plant products :- Paper

Mineral :- Asbestos(now has limited uses), Glass fibres, Metal fibre, Metal wire, Metal

foil, etc.

Man made fibres :- Acrylic fiber, Lurex, Spandex( Tactel, Lycra and other ‘strech’

fabrics), Nylon fiber, Polyester fiber, Polypropylene, Rayon fiber, etc.


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What is the position of textiles in India…?

WORLD TEXTILE MARKET

Currently, the global textile and apparel trade is estimated to be over US$ 450

billion3.The global market for textile trade includes yarns, fabrics, apparel and non-apparel

finished products. Welspun estimates that the global home textiles market is around US$ 22- 27

billion, accounting for 5-6% of the total global textile market. The home textiles market includes:

1. Household textiles :-

Rugs, bed linen, table linen, bathroom and kitchen linen, etc.

2. Furnishing textiles : -

Curtains, bedspreads and other furnishing articles for home interiors, etc.

Post the expiry of the Agreement on Textiles and Clothing in 2005, India's share of

textile imports into the EU and the US has significantly increased. India is among the top3

leading suppliers of bed and bath linen in the EU4. India along with China and Pakistan is

amongst the top 3 suppliers of textile globally.

Company profile

Name : - WELSPUN TEXTILE INDIA LTD.


Welspun

Address : - Welspun City, Taluka Anjar,

Kutch,

Gujarat -370110

Tel: 02836-661111 Fax: 02836-279010

Email: [email protected]

Website: http://www.welspuntowels com.

Chairman : - B.K. Goenka, (Chairman and Managing Director)

Board of directors : - B.K. Goenka, R.R. Mandawewala, Mr. Murarilal Mittal,

Mr. Atul Desai, Mr. Raj Kumar Jain, Mr. M.K. Tandon

Auditors : - Price Waterhouse & Co-Company, Pannalal Silk

Mills Compound

Bankers : - Bank of Baroda, State Bank of Bikaner & Jaipur

Company secretary : - Mr. Sunil Zore Asst. Company Secretary

Units : - Vapi and Anjar

Type of company : - Public company

Type of Industry : - Textile Company

Main promoters : - B.K. Goenka, R.R. Mandawewala, and Dipali Goenka


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Welspun City , a 2500 acre township set up in the heart of Anjar is the backbone of

Welspun. It was established in 2004 with an initial investment of Rs. 13,500 million.

Today Welspun City houses a state-of-the-art Line Pipe mill which is capable of

producing Spiral Arc Welded (SAW) Pipes – both Helical and Longitudinal pipes of the finest

grades and international standards. This is in addition to the ERW pipes which it manufactures.

The one-of-its-kind Textile Mill produces Terry Towels and Bed linen of the finest and

the best quality in the World. These products are mostly exported to the top retailers of the Globe

which includes most of the Fortune 100 Companies like Wal Mart, Target and J.C. Penny

amongst others.

Welspun City takes pride in housing one of the only three Plate-cum-coil mill of its kind

in the World. This mill with a capacity of producing plates up to 4.5 meters width and Coil up to

2.8 meters wide is all set to improve Welspun's operational capabilities.


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What is Welspun..?

Welspun is a public company. Which provided the yarn and iron pipes business.

Welspun India Ltd. (WIL) started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a

synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally,

Welspun India Limited emerged in the year 1995.

Today, WIL is Asia's largest and the 2nd largest Terry Towel producers in the World.

Welspun’s facilities are located in India (Anjar and Vapi at Gujarat), Mexico, Portugal and in

UK. The Company recently demerged its Sales & Marketing and Investment divisions to two

separate Companies - Welspun Global Brands Ltd. and Welspun Investments Ltd respectively.

WIL is Asia 's largest and amongst the top 2 Terry Towel producers in the World.

Business is spread across continents and a distribution network in 32 countries, like U.S.A. ,

U.K, Canada , Australia , Italy , Sweden and France . 94% of the total products are exported.

Offers a variety of Products like Towels in different sizes and qualities, Bed linen using

state of the art technology and the best quality of Egyptian cotton, Bath Rugs and Bath Robes.

Launched organic products utilizing the benefits of Soya, Seaweed, milk and Bamboo.


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The visualization depicts the flight to greater heights at the same time remaining in touch

with ground realities.

Reasons for Selecting this Location :-


Our Logo

The insignia is a creative visualization of a flying pair of sea gulls.

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Located near two crucial ports, Kandla and Mundra on the Western coast of India ; Kutch

offers several location advantages besides its abundant natural resources. Easily available cotton

and skilled manpower are a few to begin with. The two international ports and national highways

are connected with a well development bank and World Bank, Kutch is ready to emerge as an

industrial capital.

Mission Statement, Vision of

Company :-

Mission Statement

Our Mission

We endeavor to reach the leadership position in each Segment / Sector of our Product /

Service.

We are committed to satisfy our customers by providing best quality and service, which

gives the highest value for money.

We believe that employees are our most important asset through which we can reach the top

in each category of our Product / Service. Therefore, we will emphasize on their continuous

improvement through upgrading relevant knowledge and training.

We commit ourselves to continuous growth, so as to fulfill the aspirations of our Customers,

Employees and Shareholders

Vision of Company


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Vision – By the year 2012

Welspun India Limited envisions to become a fully integrated home textile Company

(Bed and Bath) – and provide one-stop-shop solution to customers across the World.

Welspun is the leader in terms of embracing new technologies, product innovations,

market intelligence etc. and offering competitive end-to-end solutions to customers at globally

competitive prices with effective supply chain management. It aims to become the preferred

partner in Home Textiles for any global initiative. It targets Cost Optimization and aims to also

become the lowest cost producer of home textiles globally.

We aim to…

Emerge as a global leader…

Preferred by every home serve…

With passion grow….@ speed innovate…

With quality excel… with ethics delighting all stakeholders…

We are… WELSPUN

”Our Motto”

'Dare To Commit' It is the vigour and commitment of all at Welspun that has brought it so far and helped to

reach the zenith of success in whichever business they are in. It is through this quality that the

motto of Welspun is ‘Dare to Commit’. Welspun doesn’t create products, it engineers

satisfaction. Within Welspun, quality of product and service is of paramount importance.


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Welspun's state-of-art manufacturing facilities reaffirm world-class quality products and nothing

less. Each and every project is treated as an opportunity and every achievement as a platform to

set new goals. This strategy has enabled Welspun to have delighted customers in 50 Countries.

“We dare to commit and deliver on our promises.”


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Establishment Year, Market

Share :-

Establishment Year :-

Welspun India Ltd. (WIL) :- started its activities in 1985 as Welspun Winilon

Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become Welspun Polyesters

(India) Ltd. and finally, Welspun India Limited emerged in the year 1995.

Market Share: -

Market, which contributes 30% of home textile demand from 17% to 24% In Terry towel

segment and from 15% to 20% in cotton sheet segment over 2003-2008. We feel India to be

preferred supplier for international vendors therefore increasing its market share further. Being

largest exporter we expect Welspun to be major beneficiary of this scenario, which accrues

global share: After witnessing 1.4% demand slump In 2008, $34bn home textile industry is back

on revival path. India is the Largest beneficiary of the consolidation in the Western world as

home Textile manufacturing capacities in those counties have shrunk at a CAGR of 25% over

2003-2009. India has increased its market share in the US around 90% topline through exports.


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Product Profile, Future Plan and Acts Plan

“Product Profile“

Welspun Products:-

Welspun has a wide ranging portfolio of home textile products comprising terry towels,

bed sheets, bath robes, bath rugs, basic bedding and decorative bedding.

1. Terry Towel :-

Welspun manufactures terry towels in different shapes and sizes. Some of the towels are

intended for use in a particular setting, such as beach towels, or for a particular purpose, such as

kitchen towels and baby hood towels, or in sizes convenient for a special use, such as hand

towels, face towels and bath sheets. Being woven out of 100% cotton yarn, these fabrics acquire

significant hygroscopic property, which is a prime reason for using terry fabrics in home textiles

in general and towels and bath robes in particular.


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2. Bed Sheets :-

Welspun manufactures bed sheets in different shapes and sizes based on different bed

sizes and mattress depth. Our bed sheets are made from cotton or various blends, such as

polyester cotton, cotton bamboo and cotton eucalyptus. The main reason for using blends is the

cost and ease of maintenance of the product by the consumer.

3. Bath Robes :-

Welspun manufactures bath robes in different designs, shades and weights as per customer

requirements. It has the ability to make piece dyed, yarn dyed, jacquard and velour bath robes.

The bath robes are manufactured in different styles such as “kimono", "hood", "zipper", and

"shawl". Welspun specializes in the manufacture of a specific category of bath robes called


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“wraps". It also provides embellishments, embroidery and prints as per customer requirements.

The fabric for our bath robes is similar to the fabric of our towels, which enables us to leverage

the product development and innovation undertaken in the production of terry towels.

4. Bath Rugs :-

Welspun is able to make rugs of various designs using its multi-level cut loop machine to

create multiple fiber lengths within a rug. Our bath rugs are generally made of cotton, nylon or

micro fiber and can be latex-backed, depending on consumer preferences. Based on customer

requirements, we make rugs of different sizes and weights including reversible rugs.

5. Basic Bedding and Decorative Bedding :-


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Our basic bedding products includes mattress pads, blown and garneted pillows and basic

comforters while our decorative bedding products includes comforters, bed skirts, shams,

decorative pillows and bolsters. Most of these products are made of polyester fiber fill wadding.

The fill we use for each product varies according to customer requirements. Since the decorative

products provide the look and feel to the bedroom, the products are design-oriented.

6. "Value Added" Products :-

In addition to these products, Welspun also manufactures "value added" products such as

"quick dry towels" and "the perfect sheet". Welspun believes that these product offerings are

examples of how consumer research-driven innovation can enhance functionality in its product

offerings.


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Brief History of Company: -

Brief History: -

Located near two crucial ports, Kandla and Mudra on the Western coast of India;

Kutch offers several location advantages besides its abundant natural resources. Easily

available cotton and skilled manpower are a few to begin with. The two international

ports and national highways are connected with a well development bank and World

Bank, Kutch is ready to emerge as an industrial capital.

Today, thanks to government initiatives to make power supply and water available, Kutch

has received a fresh lease on life .The strength and determination of the people here has

put Anjar on the map of progress and prosperity. A success story that is an inspiration to

all.


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No. of Employees in This Department: -


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The Number Of Employees In The Manufacturing And Production Department Are 5 –

6Thousand. They works in the three shifts .

“Production process”

There are five stages :-

1. Cultivating and Harvesting :-

2. Preparatory Processes :-

3. Spinning :-

4. Weaving :-

5. Finishing :-

1. Cultivating and harvesting

Cotton is grown anywhere with long, hot dry summers with plenty of sunshine and low

humidity. Indian cotton, gossypium arboreum, is finer but the staple is only suitable for hand

processing. American cotton, gossypium hirsutum, produces the longer staple needed for

machine production. Planting is from September to mid November and the crop is harvested

between March and May. The cotton bolls are harvested by stripper harvesters and spindle

pickers, that remove the entire boll from the plant. The cotton ball is the seed pod of the cotton

plant, attached to each of the thousands of seeds are fibers about 2.5 cm long.

Ginning :-


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The seed cotton goes in to a Cotton gin. The cotton gin separates seeds and removes the

"trash" (dirt, stems and leaves) from the fiber. In a saw gin, circular saws grab the fiber and pull

it through a grating that is too narrow for the seeds to pass. A roller gin is used with longer staple

cotton. Here a leather roller captures the cotton. A knife blade, set close to the roller, detaches

the seeds by drawing them through teeth in circular saws and revolving brushes which clean

them away.

The ginned cotton fiber, known as lint, is then compressed into bales which are about 1.5

m tall and weigh almost 220 kg. Only 33% of the crop is usable lint. Commercial cotton is priced

by quality, and that broadly relates to the average length of the staple, and the variety of the

plant. Longer staple cotton (2½ in to 1¼ in) is called Egyptian, medium staple (1¼ in to ¾ in) is

called American upland and short staple (less than ¾ in) is called Indian.

The cotton seed is pressed into a cooking oil. The husks and meal are processed into

animal feed, and the stems into paper.

Issues :-

Cotton is farmed intensively and uses large amounts of fertilizer and 25% of the world’s

insecticide. Native Indian variety were rainwater fed, but modern hybrids used for the mills need

irrigation, which spreads pests. The 5% of cotton-bearing land in India uses 55% of all pesticides

used in India. Before mechanization, cotton was harvested manually and this unpleasant task was

done by the lower castes, and in the United States by slaves of African origin

1.

2. processes- preparation of yarn DNV INTERNATIONAL ADUCATION ACADEMY GANDHIDHAM. Page 26

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Ginning, bale-making and transportation is done in the country of origin.

Opening and cleaning

Platt Bros. Picker Cotton mills get the cotton shipped to them in large, 500 pound bales.

When the cotton comes out of a bale, it is all packed together and still contains vegetable matter.

The bale is broken open using a machine with large spikes. It is called an Opener. In order to

fluff up the cotton and remove the vegetable matter, the cotton is sent through a picker, or similar

machines. A picker looks similar to the carding machine and the cotton gin, but is slightly

different. The cotton is fed into the machine and gets beaten with a beater bar, to loosen it up. It

is fed through various rollers, which serve to remove the vegetable matter. The cotton, aided by

fans, then collects on a screen and gets fed through more rollers till it emerges as a continuous

soft fleecy sheet, known as a lap.

Blending, Mixing & Scotching :-

Scotching refers to the process of cleaning cotton of its seeds and other impurities. A

scotching machine for cotton was first invented in 1797, but didn't get much attention until it was

introduced in Manchester in 1808 or 1809. By 1816 it had been generally adopted. The scotching

machine worked by passing the cotton through a pair of rollers, and then striking it with iron or

steel bars called beaters.

The beaters, which turn very quickly, strike the cotton hard and knock the seeds out. This

process is done over a series of parallel bars so as to allow the seeds to fall through. At the same

time a breeze is blown across the bars, which carries the cotton into a cotton chamber.


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Carding :-

Carding machine

Carding: the fibers are separated and then assembled into a loose strand (sliver or tow) at

the conclusion of this stage.

The cotton comes off of the picking machine in laps, and is then taken to carding

machines. The carders line up the fibers nicely to make them easier to spin. The carding machine

consists mainly of one big roller with smaller ones surrounding it. All of the rollers are covered

in small teeth, and as the cotton progresses further on the teeth get finer (i.e. closer together). The

cotton leaves the carding machine in the form of a sliver; a large rope of fibers.

Note: In a wider sense Carding can refer to these four processes: Willowing- loosening the

fibers; Lapping- removing the dust to create a flat sheet or lap of cotton; Carding- combing the

tangled lap into a thick rope of 1/2 in diameter, a sliver; and Drawing- where a drawing frame

combines 4 slivers into one- repeated for increased quality.

Combing:-

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


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A Combing machine

Drawing :-

The fibers are straightened several slivers are combined. Each sliver will have thin and

thick spots, and by combining several slivers together a more consistent size can be reached.

Since combining several slivers produces a very thick rope of cotton fibers, directly after

being combined the slivers are separated into roving’s. These roving’s (or slubbings) are then

what are used in the spinning process.

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

Drawing frame: Draws the strand out

Slubbing Frame: adds twist, and winds on to bobbins

Intermediate Frames: are used to repeat the slubbing process to produce a finer yarn.

Roving frames: reduces to a finer thread, gives more twist, makes more regular and even

in thickness, and winds on to a smaller tube.

3.Spinning- yarn manufacture


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Spinning :-

The spinning machines take the roving, thins it and twists it, creating yarn which it winds

onto a bobbin. In mule spinning the roving is pulled off a bobbin and fed through some rollers,

which are feeding at several different speeds. This thins the roving at a consistent rate. If the

roving was not a consistent size, then this step could cause a break in the yarn, or could jam the

machine. The yarn is twisted through the spinning of the bobbin as the carriage moves out, and is

rolled onto a cop as the carriage returns. Mule spinning produces a finer thread than the less

skilled ring spinning.

The mule was an intermittent process, as the frame advanced and returned a distance of

5ft.It was the descendant of 1779 Crompton device. It produces a softer less twisted thread that

was favored for fines and for weft.

The ring was a descendant of the Arkwright water Frame 1769. It was a continuous

process, the yard was coarser, had a greater twist and was stronger so was suited to be warp.

Ring spinning is slow due to the distance the thread must pass around the ring, other methods

have been introduced. These are collectively known as Break or Open-end spinning.Sewing

thread, was made of several threads twisted together, or doubled.

Checking :-

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

Folding and twisting :-


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Plying is done by pulling yarn from two or more bobbins and twisting it together, in the

opposite direction that in which it was spun. Depending on the weight desired, the cotton may or

may not be plied, and the number of strands twisted together varies.

Gassing :-

Gassing is the process of passing yarn, as distinct from fabric very rapidly through a series of

Bunsen gas flames in a gassing frame, in order to burn off the projecting fibers and make the

thread round and smooth and also brighter. Only the better qualities of yarn are gassed, such as

that used for voiles, poplins, venetians, gabardines, many Egyptian qualities, etc. There is a loss

of weight in gassing, which varies' about 5 to 8 per cent., so that if a 2/60's yarn is required 2/56's

would be used. The gassed yarn is darker in shade afterwards, but should not be scorched.

Mule spinning

Ring spinning

Measurements


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Cotton Counts: The number of pieces of thread, 840 yards long needed to make up 1 lb

weight. 10 count cotton means that 10x840 yd weighs 1 lb. This is coarser than 40 count

cotton where 40x840 yards are needed. In the United Kingdom, Counts to 40s are coarse

(Oldham Counts), 40 to 80s are medium counts and above 80 is a fine count. In the

United States ones to 20s are coarse counts.

Hank: A length of 7 leas or 840 yards

Thread: A length of 54 in (the circumference of a warp beam)

Bundle: Usually 10 lb

Lea: A length of 80 threads or 120 yards

Denier: this is an alternative method. It is defined as a number that is equivalent to the

weight in grams of 9000m of a single yarn. 15 denier is finer than 30 denier.

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

The worsted hank is only 560 yd

4. Weaving- fabric manufacture

The weaving process uses a loom. The lengthways threads are known as the warp, and the

cross way threads are known as the weft. The warp which must be strong needs to be presented

to loom on a warp beam. The weft passes across the loom in a shuttle, that carries the yarn on a

pirn. These pirns are automatically changed by the loom. Thus, the yarn needs to be wrapped

onto a beam, and onto pirns before weaving can commence.

Winding :-


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After being spun and plied, the cotton thread is taken to a warping room where the winding

machine takes the required length of yarn and winds it onto warpers bobbins

Warping or beaming :-

A Wrapper

Racks of bobbins are set up to hold the thread while it is rolled onto the warp bar of a loom.

Because the thread is fine, often three of these would be combined to get the desired thread

count.

Sizing :-

Slasher sizing machine needed for strengthening the warp by adding starch to reduce

breakage of the yarns .

Drawing in, Looming :-

The process of drawing each end of the warp separately through the dents of the reed and the

eyes of the healds, in the order indicated by the draft.

Pirning (Processing the weft) :-

Pirn winding frame was used to transfer the weft from cheeses of yarn onto the pirns that

would fit into the shuttle

Weaving :-


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At this point, the thread is woven. Depending on the era, one person could manage

anywhere from 3 to 100 machines. In the mid nineteenth century, four was the standard

number. A skilled weaver in 1925 would run 6 Lancashire Looms. As time progressed new

mechanisms were added that stopped the loom any time something went wrong. The

mechanisms checked for such things as a broken warp thread, broken weft thread, the shuttle

going straight across, and if the shuttle was empty. Forty of these Northrop Looms or

automatic looms could be operated by one skilled worker.

The three primary movements of a loom are shedding, picking, and

beating-up .

Shedding :-

The operation of dividing the warp into two lines, so that the shuttle can pass

between these lines. There are two general kinds of sheds-"open" and "closed." Open

Shed-The warp threads are moved when the pattern requires it-from one line to the other.

Closed Shed the warp threads are all placed level in one line after each pick.

Picking :-

The operation of projecting the shuttle from side to side of the loom through the

division in the warp threads. This is done by the Over pick or under pick motions. The

over pick is suitable for quick-running looms, whereas the under pick is best for heavy or

slow looms.

Beating-up :-

The third primary movement of the loom when making cloth, and is the action of

the reed as it drives each pick of weft to the fell of the cloth.


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A Draper loom in textile museum, Lowell, Massachusetts

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

looms are looms that have sophisticated methods of shedding. They may be separate looms, or

mechanisms added to a plain loom. A Northrop Loom was fully automatic and was mass

produced between 1909 and the mid 1960s. Modern looms run faster and do not use a shuttle:

there are air jet looms, water jet looms and rapier looms.

Measurements

Ends and Picks :-

Picks refer to the west, ends refer to the warp. The coarseness of the cloth can be

expressed as the number of picks and ends per quarter inch square, or per inch square. Ends is

always written first. For example: Heavy domestics are made from coarse yarns, such as 10's to

14's warp and weft, and about 48 ends and 52 picks.


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5. Finishing- processing of textiles

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

including warp size, but requires further treatment in order to develop its full textile potential.

Furthermore, it may receive considerable added value by applying one or more finishing

processes.

1. Design :-

Depending on the size that has been used, the cloth may be steeped in a dilute acid and then

rinsed, or enzymes may be used to break down the size.

2. Scouring :-

Scouring, is a chemical washing process carried out on cotton fabric to remove natural

wax and non-fibrous impurities (e.g the remains of seed fragments) from the fibers and any

added soiling or dirt. Scouring is usually carried in iron vessels called kiers. The fabric is boiled

in an alkali, which forms a soap with free fatty acids. (saponification). A kier is usually enclosed,

so the solution of sodium hydroxide can be boiled under pressure, excluding oxygen which

would degrade the cellulose in the fiber. If the appropriate reagents are used, scouring will also

remove size from the fabric although desizing often precedes scouring and is considered to be a

separate process known as fabric preparation. Preparation and scouring are prerequisites to most

of the other finishing processes. At this stage even the most naturally white cotton fibers are

yellowish, and bleaching, the next process, is required.

3. Bleaching :-

Bleaching improves whiteness by removing natural coloration and remaining trace impurities

from the cotton; the degree of bleaching necessary is determined by the required whiteness and

absorbency.


Welspun

Cotton being a vegetable fiber will be bleached using an oxidizing agent, such as dilute sodium

hypochlorite or dilute hydrogen peroxide. If the fabric is to be dyed a deep shade, then lower

levels of bleaching are acceptable, for example. However, for white bed sheeting’s and medical

applications, the highest levels of whiteness and absorbency are essential.

4. Mercerizing :-

A further possibility is mercerizing during which the fabric is treated with caustic soda

solution to cause swelling of the fibers. This results in improved luster, strength and dye affinity.

Cotton is mercerized under tension, and all alkali must be washed out before the tension is

released or shrinkage will take place. Mercerizing can take place directly on grey cloth, or after

bleaching. Many other chemical treatments may be applied to cotton fabrics to produce low

flammability, crease resist and other special effects but four important non-chemical finishing

treatments are:

5. Singeing :-

Singeing is designed to burn off the surface fibers from the fabric to produce smoothness.

The fabric passes over brushes to raise the fibers, then passes over a plate heated by gas flames.

6. Raising :-

Another finishing process is raising. During raising, the fabric surface is treated with sharp

teeth to lift the surface fibers, thereby imparting hairiness, softness and warmth, as in flannelette.

7. Calendaring :-

Calendaring is the third important mechanical process, in which the fabric is passed between

heated rollers to generate smooth, polished or embossed effects depending on roller surface

properties and relative speeds.


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8. Shrinking (Sanforizing) :-

Main article: Sanforization finally, mechanical shrinking (sometimes referred to as

sanforizing), whereby the fabric is forced to shrink width and/or lengthwise, creates a fabric in

which any residual tendency to shrink after subsequent laundering is minimal.

9. Dyeing :-

Finally, cotton is an absorbent fiber which responds readily to coloration processes. Dyeing,

for instance, is commonly carried out with an anionic direct dye by completely immersing the

fabric (or yarn) in an aqueous dyebath according to a prescribed procedure. For improved

fastness to washing, rubbing and light, other dyes such as vats and reactives are commonly used.

These require more complex chemistry during processing and are thus more expensive to apply.

10.Printing :-

Printing, on the other hand, is the application of color in the form of a paste or ink to the

surface of a fabric, in a predetermined pattern. It may be considered as localized dyeing. Printing

designs on to already dyed fabric is also possible.

Economic, environmental and political consequences of cotton

manufacture

The growth of cotton is divided into two segments i.e. organic and genetically modified.

Cotton crop provides livelihood to millions of people but its production is becoming expensive

because of high water consumption, use of expensive pesticides, insecticides and fertilizer. GM

products aim to increase disease resistance and reduce the water required. The organic sector was

worth $583 million. GM cotton, in 2007, occupied 43% of cotton growing areas. The

consumption of energy in form of water and electricity is relatively high, especially in processes

like washing, de-sizing, bleaching, rinsing, dyeing, printing, coating and finishing. Processing is

time consuming.


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The major portion of water in textile industry is used for wet processing of textile (70 per

cent). Approximately 25 per cent of energy in the total textile production like fiber production,

spinning, twisting, weaving, knitting, clothing manufacturing etc. is used in dyeing. About 34 per

cent of energy is consumed in spinning, 23 per cent in weaving, 38 per cent in chemical wet

processing and five per cent in miscellaneous processes. Power dominates consumption pattern

in spinning and weaving, while thermal energy is the major factor for chemical wet processing.

The techniques used to process these fibers in yarn are essentially the same as with natural

fibers, modifications have to be made as these fibers are of great length, and have no texture such

as the scales in cotton and wool that aid meshing.

Use of Technology or Machinery: -

EDI & RFID in Welspun USA.

SAP R/3 - Integrates operations, marketing supply chain.

Reverse auction HNS.

Welspun is a leading practitioner of safety and have received the

safety certification of OHSAS - 18001 (HSE) and the ISO 14001 for

environment consciousness.

Preserving the ecological balance - Effluent treatment plants and the

Waste dispersal plants located in and around the Welspun City.

Integration with Customers Market Intelligence: Conducts Grid

analysis of top retailers with respect to Product range.

Ongoing Market Research for evaluation of:

Fast Moving Items best selling SKUs.


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Profit margin expectation.

Collection of Samples to understand global developments.

Quality Control during Production

Process

Quality control is the more traditional way that business have used to manage quality.

Quality control is concerned with checking and reviewing work that has been done. Under

traditional quality control, inspection of products and services takes place during and at the end

of operation process.

There are three main points during the production process

when inspection is performed:

1. When raw materials are received prior to entering production.

2. Whilst the products are going through production process.

3. When products are finished – inspection or testing takes place before products are

dispatched to customers.

The problem with this sort of inspection is that it doesn’t work very well!

There are several problems with inspection during traditional

quality control:

1. The inspection process does not add any “value”. If there were any guarantees that no

defective output would be produced , then there would be no need for an inspection

process in the first place.


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2. Inspection is costly , in terms of both tangible and intangible cost. For example material,

labour, time, employee morale, customer goodwill and lost sales.

3. It is sometime done to late in the production process. This results into defective and non

acceptable actually being received by customers.

4. It is usually done by wrong people – e.g. by a separate “quality control inspection team”

rather than by the workers themselves.

5. Inspection is not often compatible with more modern production techniques.

6. Working capital tied up in stock which cannot be sold.

7. This is often disarrangement as to what constitutes a “quality products”. For example to

meet quotas , inspectors may approve goods that don’t meet 100% confirmation giving

the message to workers that it doesn’t matter if their work is a bit sloppy.

As result of above problems , many businesses focused their efforts on improving quality by

implementing quality management techniques which emphasizes the role of quality assurance.

As Deming wrote:

“ Inspection with the aim of finding bad ones and throwing them out is too late, inefficiently

and costly. Quality comes not from inspection but from improvement of the process.”


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Raw Materials

The First step in production process is of Buying Cotton from the other firms they Import

Cotton from many firms all over the world. Specially Nepal, Pakistan, China etc. From India

they import cotton from SANKAR firm. The Cotton which has been brought from these areas

has been in much quantity & has been refreshed or cleaned by other heavy machines with proper

under guidance of the supervisors. The Cotton which is brought is loaded in Spleasles. Cleaning

has been done with the help of employees.

Measures taken for Pollution Control

Welspun City is additionally a prime example of continuous efforts of protecting the

environment with a strong emphasis on a-forestation. The township is in the process of turning

itself in the creation of the largest green belt in the area, with a veritable forest of about 500,000

trees which includes the Jatropha tree, the drought resistant perennial whose seeds is used to

produce bio-diesel.


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Selection of Raw Material Suppliers: -

Self sufficiency of raw materials :-


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India has a vast pool of raw materials for textiles, both natural and man-made11.Cotton

textiles and clothing account for approximately one-third of global textile trade. China, India and

US accounts for approximately two thirds of global cotton production. Further, India is a country

which has a surplus cotton production as a result of its increased productivity in the last few

years. Other Asian countries such as China, Bangladesh, Pakistan, Thailand and Indonesia are

net importers of cotton. India's self sufficiency in cotton provides it a strong competitive

advantage in global textile and clothing trade

Storage of Raw Materials: -

Material is mainly stored in a huge warehouses which are situated at near the production

plant so it can be easily transported for processing in the plant.

Steps Taken for Safety of Raw Materials

Industrial center is your comprehensive source for safety and environmental product and

supplier information. You can view the latest safety and environmental product information,

articles, events, research and associations. Also search our Online Supplier Directory, which is

broken down into alarms, anti-fatigue, Emergency response, ergonomics, eye protection, fall

protection, foot protection, gates, hand protection, head protection, hearing protection, lockout,

tag out, machine guarding, mats, medical equipment, first aid, monitoring equipment, protective

clothes, rails, respiratory protection and safety software subcategories. It’s all here to help you

streamline your buying process, increase productivity, save time and save money.


Welspun

Recruitment and Selection: -

The process of recruitment has been undertaken for the appointment of the

employees. They give advertisement in newspapers or magazine or a journal with full


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information like person required for the particular post with special knowledge & Experience in

that field, & then select accordingly.

Sources of Recruitment, Promotion &

Transfer: -

The Welspun Company specially prefer to use the direct method of

requirement. So the main direct methods are as follows:-

(i) Inviting Applications from the employees within the organization

In this vacancies can often be filled by promotion from within. For this purpose

applications are invited from the present employees of the organization. The applications so

received are properly screened so that applicants who do not possess requisite qualifications

can be kept out. This practice or the work has been made by the special HR Departments.


Recruitment

Internal Forces

Recruitment Policy

HRP

Size of the firm

Cost

Growth and expansion

External Forces

Supply and Demand

Unemployeement rate

Labour Market

Image

Political and Social

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(ii) Waiting List: -

This company maintains the application files in which applications received from casual

applicants are kept pending. Similarly when the number of candidates found to be fit for job

exceeds the number of vacancies, surplus candidates are also kept on waiting list. Such records

are useful whenever the vacancies arise.

(iii) Friends & relatives of Present employees: -

This company prefer to use to get recommendation from their employees, the names of

their friends & relatives for employment. This method is the convenient method for labour

supply & helpful also in maintain goodwill and moral of the present employees.

(iv) Notice Exhibited at the factory gates: -

The Boards has been hanging at the gates of the factory, showing that certain

types of workers are required. This method of requirement can be safely used for the

unskilled only. It is hardly used for recruitment permanent employees.

(v) Advertisement in newspapers: -

When Experiences employees are not available through other sources, companies resort

to advertising. In this case, the most appropriate newspaper or journal can be used for the

post concerned.

Welfare, Motivation of Employees and

training : -

Welfare and Motivation of Employees:-


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The Company provides the safety for the workers like as Helmet, Mask, Hand Glows etc.

Company also not forgets about the Employees Welfare. It provides In its sincere efforts to

improve the lives of children “Welspun Vidya Mandir”, a school up to class 10, affiliated under

the Central board of Secondary Education, India (CBSE) and “Welspun Anganvadi”, a pre-

primary school for children has been set up for children of Welspun employees and local

families. It also provides the Canteen facility, Medical Facility, and also provides the

Insurance Facility.

1. Fair wages or salary has been provided to the employees working in various

departments.

2. They has been provided good working condition, like airy area with proper ventilation,

noise control instrument etc.

3. Employees’ safety measures have also been taken care like providing mask at a non-

conditioning department.

4. Helmets & Shoes has been given to the people for their safety.

5. Big Canteen facility has been given to the employees.

6. Proper & with regular time gap Interval has been made in various departments.

7. Quarters has been given to the people who are working in the top level of the company.

8. Regular PF has been taken from the employee’s salary for the future welfare.

9. BUS service has been provided to the employees who are living far from the Industry.

Motivational Policy of the company:-

o PROVIDENT FUND

o BONUS


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o RETIREMENT BENEFIT

o MEDICAL FACILITY

o GROUP TERM INSURANCE

o EMPLOYEMENT INSURANCE SCHEME

o CHILD EDUCATION SCHEME

Training of Employees :-

The employees which are selected & then they had been given the training

according to the work handled over to them like training to machine operators who are standing

over the machine, training to the person who checks the pieces produced, supervisors are also

given training to see that all the product had been finished without any default.

There is various other training like give knowledge of economics, human

relation, & Administration to the employees working over there.

Human Resource Development Strategies: -

Human resource development strategies:-


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Management Levels: -

Management Level:-

DNV INTERNATIONAL ADUCATION ACADEMY GANDHIDHAM. Page 50Top Level

Director

CEO

Middle Level

Welspun

Welspun

Working Hours

Daily three shift of 8 hours per shift

First shift 08:00 am to 04:00 pm

Second shift 04:00 pm to 12:00 am

Third shift 12:00 am to 08:00 am

In between every shift they provide recess of one 1 hour

Flexi timing policy (for corporate office)

o This policy is provided to staff members on need basis and will be considered on

case to case basis.

o The flexibility provided above should be used in consultation with immediate

superior without affecting the work and with a prior sanction from HR

department. All the employees are however required to be present in the office

during the core time mentioned above.

ATTENDENCE AND IDENTITY CARD

The company provides identification cum punching card. Apart from the company’s name and

address, the card has necessary details like employees’ name and code no. etc. This card is the purpose

for identity and security. In case of any damage or loss of the card by any employee he/she will have to

inform HR Dept. so that a duplicate card will be issued on extra charge. In case any employee resigns or

terminated from the service company. He/she has to return the card to HR Dept.


Labour Level

Labour

(Contractor)

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CODE OF CONDUCT

a. OBJECTIVE :-

To have mutual trust, sense of belongingness and bring team spirit in the organization

and to ensure continuous improvement.

b. POLICY :-

The management will ensure that the below is practice by all employees:

An endeavor to act at all time in the interest of the company

A serious of personal responsibility for quality output.

Adherence to the company’s rules and regulations, conditions of the services and

disciplinary provisions.

A sincere endeavor to established friendly relationship with fellow workers and faithfully

carrying out instructions given by the supervisor and managers Personal care of the

property and equipment and also amenities provided for use of the employees

Constructive co-operation in maintaining good relation in improving the quality of work

and working conditions.


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The Management Discussion and Analysis (MD&A) should be read in conjunction with

the Audited Consolidated Financial Statement of Welspun India Ltd ("Welspun" or the

"Company"), and the notes thereto for the year ended March 31, 2010. This MD&A covers

Welspun's financial position and operations for the year ended March 31,2010. Amounts are

stated in Indian Rupees unless otherwise indicated. The numbers used in the analysis are on a

consolidated basis, the corresponding number for the previous year have been regrouped and

reclassified wherever necessary.


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I. Forward-Looking Statements;-

This report contains forward-looking statements, which may be identified by their use of

words like 'plans', 'expects', 'will', 'anticipates', 'believes', 'intends', 'projects', 'estimates' or other

words of similar meaning. All statements that address expectations or projections about the

future, including but not limited to statements about the Company's strategy for growth, product

development, market position, expenditures, and financial results, are forward-looking

statements. Forward-looking statements are based on certain assumptions and expectations of

future events. The Company assumes no responsibility to publicly amend, modify or revise any

forward looking statements, on the basis of any subsequent developments, information or events.

"Welspun has performed exceedingly well in the last one year. We have not only

achieved the highest ever sales in all product categories, but are also looking at increased

production, by way of debottlenecking of our existing capacities. Our efforts in product

innovation, state-of-art designs and our dedicated effort on sustainability will help us to reach the

position of being the " largest Home Textile Company in the world.

Rajesh R. Mandawewala, Director

II. BUSINESS ORGANIZATIONWelspun India Limited (WIL) is a leading manufacturer of a wide range of home textile

products. WIL, through Welspun Global Brands Limited (WGBL), is a strategic vendor to

some of the top global retailers. Its manufacturing, sales and distribution network is spread

over 32 countries. Worldwide, it is ranked among the top 4 manufacturers of terry towels and


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rugs with capacities of 41,500 MT1 and 10,151 MT1 respectively. It is also one of the top

manufacturers' of bed sheets with a capacity of 45 million meters p.a. 1

WIL's major customers are WGBL and Welspun Retail Limited (WRL) who purchases

the terry towels, sheets and rugs manufactured by WIL for marketing and distribution in

international and domestic markets respectively. Pursuant to a scheme of arrangement, inter

alia, Marketing Division of the Company was transferred to WGBL with Appointed Date

being April 1, 2009. As mentioned in the scheme, WGBL acquired shares of WRL from the

Company and other promoters which resulted in WGBL's holding to 85% equity shares in

WRL. Resultantly, WGBL started operating as the international sales and marketing

intermediary of WIL. WIL's (through WGBL) major customers in the international market

are retail chains, specialty stores, fashion stores, merchants and importers. WRL caters to the

domestic market through a chain of company owned and franchisee retail outlets.

Umbrella of Products, Brand Name &

Positioning

In Welspun there is one of the kind textile mills which produce 2 products they are:-

(1) Terry Towels.

(2) Bed Linen.


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These 2 products are the finest & the Best quality in the world. These products are mostly

exported to the top retailers of the Globe which includes most of the Fortune 100 companies like

Wal-Mart, Target & P.C Penny almost others.

Segmentation and Targeting

Warehouse & Dispatch:-

All the finished products have been stored in warehouse & have been dispatched at the time of

requirement. These all products has been exported to the other countries by method of

transporting.

In this plant generally 24 tons product has been made in 24 hours. Welspun

generally does not Export their product in the general market but they export their product in

USA, JAPAN, CHINA, and various other countries of the world.

Market Research, Marketing Strategy

A. MARKET STRUCTURE

Consumers :-

A majority of purchases in the home textiles segment are made for replacement purposes

and are discretionary in nature. The purchase of home textiles, therefore, gets deferred during

periods of economic slowdown and a subsequent economic upturn tends to be steeper than the

normal rate of consumption growth. Consumption patterns of households vary substantially


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across geographies due to differences in culture, traditions and tastes. In the household textiles

sector, Welspun believes that brand awareness among consumers is limited, as can be derived

from the high market shares for interior department stores, specialty chains and variety chains

operating with their own private label and textile discounters, while super and hyper markets sell

unknown or fancy brand names.

Importers purchase products from manufacturers abroad and we estimate that they

generally add a 30-40% mark-up to cover commissions, credit risk, after-sales service and the

cost of carrying a local inventory to meet small orders. In contrast to the agent, this importer

holds his own stocks at his own risk.

Wholesalers cater to specialist shops as well as to department stores and home shopping

companies. The wholesaler also holds stocks at own risk. This non-importing distributor

purchases from domestic manufacturers and importers. The mark-up of wholesalers, Welspun

estimates approximately 20-30%. Large retail companies are increasingly purchasing from

abroad, thereby bypassing this intermediary.

Purchasing agents are widely used by retailers and wholesalers due to their wide network

of contacts and knowledge of foreign markets. They do not carry their own stock but purchase

solely on the request from their customers.

Domestic manufacturers either import the raw material required for the finishing

operations or are primarily manufacturing products which are freight unfriendly or difficult to

manage with long supply chains. These manufacturers have the advantage of proximity to the

source of raw material as well as the customer.

Sales agents are independent intermediaries between the (foreign) manufacturer and the

retailer or retail organization, receiving a commission from the former. The sales agents do not

take title to the merchandise, they have a responsibility limited to present samples to potential

clients, obtaining orders, and forwarding these to the exporters.


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Retailers constitute the final stage before products reach the consumer. A criterion for

dividing the market is the composition of the total assortment: wholly or partly specialized in

selling home textiles.

Competition:-

Welspun's efforts to sharpen competitive edge

Welspun has followed its defined strategy, improved product mix and optimized

utilization of assets. It has been successful in the optimization of raw material cost and major

input cost. Welspun is further expanding/modernizing its manufacturing capacities with an

objective to attain increase in volume with lower overhead, better quality and replacement /up

gradation of old technology with the world class technology.

Welspun targets cost optimization with an aim to become the lowest cost producer of

home textiles globally and further aims to become the preferred partner in home textiles for

global initiative with its business model.

II.5Market strategy

OVERVIEW OF THE INDIAN ECONOMY

India's GDP growth trend

Despite a challenging global economic environment, India's GDP grew at 7.2% in FY10,while

the manufacturing sector grew at 8.9%. It is expected to grow further at 8.5% inFY118 as per the

Economic Survey of India.


Welspun

GDP Growth Trend in India

The overall macro-economic trends have resulted in rising per capita income, increased

consumerism and higher consumer spending. A large proportion of this higher consumer

spending is towards textiles, apparel and lifestyle products. The chief reason for this has been

India's changing demographic profile. The disposable income in India is also expected to

increase significantly over the next decade. Welspun believes that the above factors strongly

suggest an ongoing structural shift in the demand pattern for textiles within the domestic

markets. This indicates that the textile industry is on the threshold of higher consumer demand

and consequently higher growth.

India's economy is on the fulcrum of an ever-increasing growth curve. With positive

indicators such as stable 8-9 percent overall annual growth, rising foreign exchange reserves and

rapidly expanding FDI inflows, India has emerged as the second fastest growing major economy

in the world after China.


Welspun

Company ProfileWelspun India, the flagship company of Welspun group was incorporated in the year

1985. Welspun India Ltd is the largest producer of Terry Towel in Asia and one of the 10 leading

in the world, possessing a state-of-the-art, fully integrated terry towel unit at Vapi, Gujarat. The

Company's Plant with state-of-the-art technology, has got ISO 9002 accreditation. Being an

environment friendly manufacturing process company, it has been awarded the OKOTEX

certification. The Company transferred the Spinning division with its assets and liabilities to

Welspun Cotton Yarn Ltd. WIL continues to manufacture terry towels, but the yarn spinning is

carried out by the new company - Welspun Cotton Yarn Ltd (WCYL). The demerger involved


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equity swapping in the ratio of 7:3. For every 10 shares of WIL, shareholders were issued seven

shares of WIL and three shares of WCYL.

In order to give impetus to the market share, the Company has embarked upon direct

marketing. The Company has set up a wholly owned subsidiary in the name of Welspun USA

Inc. in New York to focus on the US markets. It has started using Egyptian Cotton Yarn &

American Pima Cotton in the manufacture of premium quality towels and above same was

registered trademark user of 'Egyptian Cotton' & 'Supima'. The company has started direct

marketing by way of 100% subsidiary in USA and has made grounds for tie-ups with the best in

the market for floating the products in the market. The company chalked out a expansion plan by

setting up a 20 looms at an capital outlay of Rs. 35 crores which is under implementation and out

of which 11 looms have been installed and production has commenced. With this expansion the

capacity has been enhanced to 10800 MTPA.

The company has amalgamate Glofame Cotspin Industries Ltd with itself during May

2005. According to the scheme of amalgamation, Welspun India will issue 10 Equity Shares of

Rs. 10/- each for every 33 Equity Shares of Rs. 10/- each held by the shareholders of Glofame

Cotspin Industries Ltd. The Scheme became effective from 1st April 2004. During 2004-05 the

company has set up a new plant at Anjar, Gujarat at an investment of Rs.5.75 Billion.

This plant was set up for the new product category bed linens with a capacity of 35

million meters per annum. Further the company also undertook a capital expenditure for

construction of a commercial building and installation of processing equipments and Diesel

Generator Sets at Vapi at a cost of Rs. 6002.8 million. The company has also commenced its

commercial production of Toweling facility in March 2005, the spinning facility commenced its

commercial production in June 2005. The bed sheeting facility has commissioned and scheduled

to commence its commercial production at full capacity by September 2005. The company has

increased the installed capacity of Cotton Terry Towels by 12000 MTPA during 2004-05 and

with this expansion the total installed capacity of Cotton Terry Towels has increased to 23500

MTPA.


Welspun

A. Ratio Analysis

Welspun Group announced its results for the 3rdQuarter of FY 2011.

Consolidated Financial Summary (Figures in Rs. Millions)

particulars Q3FY11 Q3FY10 Growth% 9MFY11 9MFY10 Growth%

Sales 15862 16395 -3% 58604 57528 2%

Reported EBITDA

3154 3561 -11% 10493 10336 2%


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Interest 454 428 6% 1046 7190 -42%

Depreciation 653 511

PAT 1465 1668 -12% 5150 4439 16%

Cash PAT 2297 2300 7481 6191 21%

EPS 6.65 7.83 *-15% 23.26 20.19 *-11%

Reported EBITDA Margin

19.9% 21.7% 17.9% 18.0% 17.9% 18.0%

PAT Margin 9.2% 10.2% 11.3% 8.8% 15.12% 7.7%

Growth


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6 BIBLIOGRAPHY


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1. The whole information is collected from the following resources.

1. Live visit.

2. Internet.

3. www.welspun.com

2. With the costless help of teachers

Strengths of Indian textile Industry


http://www.welspun.com/

Welspun

1. India has rich resources of raw materials of textile industry. It is one of the largest producers of cotton in the world and is also rich in resources of fibres like polyester, silk, viscose etc.

2. India is rich in highly trained manpower. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.

3. India is highly competitive in spinning sector and has presence in almost all processes of the value chain.

4. Indian garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.

Weaknesses of Indian textile Industry


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1. Indian textile industry is highly fragmented in industry structure, and is led by small scale companies. The reservation of production for very small companies that was imposed with the intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. Smaller companies do not have the fiscal resources to enhance technology or invest in the high-end engineering of processes. Hence they lose in productivity.

2. Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India.

3. India seriously lacks in trade pact memberships, which leads to restricted access to the other major markets.

8.EVALUATION SHEET


Documents

Welspun Report