AN ORGANIZATIONAL STUDY (PROJECT FILE)

An Internship Project Report on

“SPL INDUSTRIES PVT LTD”

FARIDABAD

Submitted to

BANGALORE UNIVERSITY

in partial fulfillment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

By

HARSH YADAV

(Reg.no.10DKCMAO34)

Guide

Dr. D.K. MURTHY

SESHADRIPURAM INSTITUTE OF MANAGEMENT STUDIES

Yelahanka New Town, Bangalore- 560 106

DECLARATION

I declare that this internship project report on SPL Industries Private Limited,

Faridabad is an original and bonafide work carried out by me during 2010-2011 under the

supervision of Dr. D.K. Murthy, Prof and Director of Seshadripuram Institute of

Management Studies. This report is submitted in partial fulfillment of the requirement

of Master of Business Administration of Bangalore University.

I also declare that no part of this representation has been previously published or

submitted as a project representation for any Degree or Diploma of Bangalore University.

Place: Bangalore HARSH YADAV Date: (Reg.No.10DKCMA034)

SIMS “SPL INDUSTRIES LTD.”

GUIDE CERTIFICATE

This is to certify that Mr. HARSH YADAV bearing university register number 10DKCMA034 has

completed this internship project on “SPL Industries LTD” under my guidance. This project is based

on original study conducted by him and the report has not formed a basis of awarding any other Degree/

Diploma/ Certificate by this University or any other University.

Place: Bangalore Dr. D.K. Murthy

Date: (Prof & Director)


ACKNOWLEDGEMENT

Internship programmed at the “SPL INDUSTRIES LTD, Faridabad has been truly a memorable and

knowledgeable experience.

Firstly of all I would like to thank our Principle Dr. M. Prakash, Director Dr. D.K MURTHY and all

faculty member of MBA department, SESHADRIPURAM INSTITUTE OF MANGEMENT STUDIES,

YELAHANKA NEW TOWN, BANGALORE- 106 for their guidance and support for the project work.

I express my gratitude to my guide Dr. D.K MURTHY for his keen interest and valuable guidance

during the course of this project.

I also thank Mr. R.N Yadav (Manger –HR), Mr. Nitin Gupta (HR Executive) my organizational guide

and all the staff member of “SPL INDUSTRIES LTD, Faridabad for providing the required information

and all the respondents without whose co-operation it would not have possible to undertake this project.

It is my for most duty to thank my beloved parents and friends for being the source of inspiration and

having rendered me all the support that I need.

Place: - Bangalore HARSH YADAV

Date: - (Reg. No: - 10DKCMAO34)


Contents

Chapter Details Page

1 Economic Scenario 1

2 Industry Analysis 9

3 Company Analysis 14

4 Functional Analysis:-

4.1 Production Department 23

4.2 Marketing Department 31

4.3 Finance Department 36

4.4 Human Resource Department 43

4.5 EDP Department 52

5 SWOT Analysis of the company 54

6 Summary of Findings, Conclusion & Suggestions 56

7 Learning Experience 58

Bibliography 60

Annexure 61



Chapter – I

ECONOMIC SCENARIO

ECONOMIC SCENARIO IN INDIA

Over the last couple of decades, India has established itself as one of the fastest growing economics in

the world. India is also advancing towards the economical growth and improvement in literacy.

In the first five year plan India had attained an average annual growth rate by 3.5 percent and during the

90’s India economy showed an average growth rate of 6.4 percent, which was 5.9 percent in the 80’s.

In the consecutive three Five Year Plans (2nd,3rd and 4th), India had experienced an increasing growth

rate and eventually at the end of the 8th Five Year Plan, the annual growth rate of India reached 6.9

percent.

During the period from 1991-92 the Indian economy passed through a tough time, when almost every

macroeconomics indicators showed poor performance. The overall economic growth in this period

declined to 1.1% and the total fiscal deficit became 8 percent of the GDP (Gross Domestic Product).

The Government of India adopted various effective programs of structural reforms with an objective to

encourage external trade, industrial policy and exchange rate. The recent years have been another year

of strong growth for the Indian Textile and Clothing Sector. The domestic economy has exhibited robust

growth which is also reflected in the clothing sector where expansions and enhanced manufacturing

activity dominated the scene. This was driven by both, the increased export opportunity from India with

dismantling of quota as well as the robust domestic demand. Apparel export from India grew by almost

20 percent to 25 percent. The main areas of growth being the Europe and United States markets.

1.4 CURRENT RATES

Bank rates :- 6%

Repo rate :- 8 %

Reverse Repo rate :- 7%


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1.4(a) Ratios

CRR:- 6%

SLR:- 24%

1.5 Functioning of the Capital Market

The main function of the capital market is to channelize investments from the investors who have

surplus fund to the investors who have deficit funds. The different types of financial instruments, which

are traded in the capital markets, are equity instruments, insurance instruments, foreign exchange

instruments, hybrids instruments and derivative instruments.

1.6 Exchange rate as on 9th September 2011

INR/1 USD:- 46.10

INR/ Euro:- 64.1362

INR/100 Japanese YEN:- 100

INR/1 pound sterling:- 73.5556

The Government has not conducted any study to assess the impact of global slowdown on Indian Textile

and Clothing industry. However, the confederation of Indian Textile Industry and other Textile Export

Promotion Councils has conducted a study on “Impact of Economic slowdown on Indian Textile and

Clothing Industry”. The study showed decline in textile production and textile exports, decline in textile

imports by India’s major trade partners and deterioration in the financial performance of textile and

clothing companies during 2008-2010.

1.7 Union Budget 2011-12

Finance minister Pranab Mukherjee today unveiled the Union Budget for the financial year 2011-12 in

the Parliament. The Union Budget 2011-12 aims to sustain economic growth, strengthen infrastructure,

moderate the price rise, particularly of agricultural produce and reduce social imbalances through

inclusive development.

Presenting the budget 2011-12, the Finance Minister Shri Pranab Mukherjee said that the budget is a

transition towards a more transparent and result oriented economic management system in India.


2

The Finance Minister said that huge differences between wholesale and retail prices are at the expense

of remunerative prices for the farmers and competitive prices for consumers.

Following are the salient points and proposals made by Mukherjee in his budget speech: -

• For sustaining growth tax reform will continue with the Direct Taxes Code (DTC) to be

operationalised from April, 2012 while a Constitution Amendment Bill is proposed to be introduced

during the current session of Parliament as a step towards roll out of the Goods and Services Tax (GST).

• He said the introduction of DTC and GST will result in moderation of rates, simplification of laws and

better compliance.

• Rs. 3000 crore will be provided to NABARD to help handloom weaver cooperative societies to

become financially viable.

• A nominal 1 per cent central excise duty is being imposed on 130 items. The basic customs duty has

been reduced from 30 to 5 per cent on raw silk, from 5 to 2.5 per cent on certain textile intermediates

and from 7.5 per cent to 5 per cent on certain inputs for manufacture of technical fabric and yarn.

• For readymade garments and made-ups of textiles, the optional levy has been converted into a

mandatory levy at a unified rate of 10 per cent. The levy would however, apply only to branded

garments or made-ups and not to those tailored or made to order for a retail customer. Credit of tax paid

on inputs, capital goods and input services would be available to manufacturers of these products.

Export o these items would continued to be zero-rated.

• Excise tax on diapers and sanitary napkins reduced from 10% to 1%.

• Need to improve agricultural demand

• Next Budget will be more transparent


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• Budget will set the tone for a vibrant Indian economy

• Taxes, tariff procedures will be simplified

• Economy expected to grow at 9%

• GST bill in current session

• Liberalization of FDI policy

• Agricultural credit limit raised to Rs 4,75,000 crore

• Allocation for farm development increased to Rs 7,860 cr

• Revenue deficit is estimated at 3.4%

• Service tax to boost revenue by Rs 4,000 cr

• The fiscal deficit is estimated at Rs. 4,12,817 crore which works out to 4.6 per cent of the GDP.

• The minimum alternate tax rate has been hiked from 18 per cent to 18.5 per cent of book profits.

Developers of Special Economic Zones as well as units operating MAT in SEZs have been brought

under MAT.

1.8 GDP Trends

The choice of economic indicators is a sensitive issue as the forecast performance depends on the quality

of the indicators. The indicators should cover all the broad sectors in the economy, viz, real sector,

financial sector, government sector, external sector, etc. The Gross Domestic Product (GDP) in India

expanded 7.7 percent in the second quarter of 2011 over the previous quarter. Historically, from 2000


4

until 2011, India's average quarterly GDP Growth was 7.45 percent reaching an historical high of 11.80

percent in December of 2003 and a record low of 1.60 percent in December of 2002. India's diverse

economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of

modern industries, and a multitude of services. Services are the major source of economic growth,

accounting for more than half of India's output with less than one third of its labor force. The economy

has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about

10 percentage points.

India's economy grew 7.7% in the three months from April to June, compared with the same

period of 2010.

It was India's weakest growth for six quarters, but still better than had been expected.

The gross domestic product (GDP) growth figure from the finance ministry compares with the

annual rate of 7.8% in the first three months of the year.

The slowdown is expected to continue as India's central bank continues to raise interest rates to

control inflation.

The Reserve Bank of India (RBI) has raised interest rates 11 times since March 2010. The next

rate-setting meeting is on 16 September, when many economists expect rates will rise again.

Inflation in July was 9.22%, which was well above the RBI's target rate of 4% to 4.5%.

The sector breakdown showed that the construction sector had been one of the worst-performing

parts of the economy.

Construction grew at an annual rate of 1.2% in the second quarter, down from 8.2% in the

previous quarter, as rising interest rates and delays in planning approvals held up building

projects.

Farm output rose 3.9%, which was down from the previous quarter but above the level of 2.4%

in the same period last year.


5

6

The manufacturing sector grew 7.2%, an improvement from the previous quarter, but well below

the 10.6% in the second quarter of 2010.

1.8 (a) Estimated GDP Growth Rate:- India's Economy Grows 7.7%

1.8 (b) Per Capita Income in India :- increased by 14.5%

India's per capita income, often used to measure a country's standard of living, increased by 14.5 per

cent during 2009-10 to Rs 46,492, Parliament was informed today.

In 2008-09, the per capita income, which measures the income per person in a population, was Rs

40,605, Statistics and Programmed Implementation Minister M S Gill said in a written reply in the Lok

Sabha.

"The per capita income at factor cost during 2008-09 and 2009-10 are estimated as Rs 40,605 and Rs

46,492, respectively, at current prices," said Gill.

In response to a query, he said, the separate per capita income figures for rural and urban areas are

available till the base year 2004-05, as the data is compiled only in the base year of the National

Accounts Statistics.

As per the base year 2004-05, the per capita income in rural areas was Rs 16,327, while in the urban

areas it stood at Rs 44,223.

1.9 Monetary and Fiscal Polices

1.9(a) Monetary Policy:-


7

Monetary Policy can be defined broadly as any policy relating to the supply of money. It is common to

speak of monetary policy as being “tight” or even of being “neutral”.

Monetary Measures

Money Supply Growth: - because the growth in aggregate demand depends heavily on the

growth in the supply of money, it would be logical to measure the posture of monetary policy is

said to be easy when, during a sustained period, the supply of money increases at a rate that is

high or rising relative to a recent trend. Alternatively, policy is said to be tight when the rate of

money growth is low or falling relative to a trend.

Interest Rates: - A logical reason for focusing on interest rates in judging monetary policy is

that they are an important link by which changes in money supply are transmitted to real

economy. That is, changes in money supply growth lead to changes in market interest rates and

these changes then influence households in their decisions to buy homes, automobiles,

appliances, and the like, and businesses in their decisions regarding inventories, plant and

equipment pare purchases.

Annual Variations in Monetary Aggregates as of MAY increased by 14.5 2011(%)

1.9(b) Fiscal Policy


8

India’s fiscal sector reforms help to raise the rate the rate of saving and investment in India. This further

help to enhance the productivity of public expenditures.

Components of India’s Fiscal Sector Reforms

Some of the major components of India’s fiscal sector include expenditure reforms, tax reform

measures, and public sector reconstructing and systematic reforms in government’s borrowing process.

Fiscal Situation of the Central Government (%of GDP)

ITEM 2008-09 2009-2010 2010-2011

1. Gross Tax Revenue 11.8 10.9 9.32

2. Total Expenditure 16.9 17.4 13.58

(a) Revenue Expenditure 15.1 15.3 12.23

(b) Capital Expenditure 1.8 2.1 1.35

3. Fiscal Deficit 6.2 6.8 5.1

4. Revenue Deficit 4.6 4.8 4.6

5. Primary Deficit 2.6 3.0 3.2


Chapter – 2

INDUSTRY ANALYSIS

The textiles industry in India enjoys a distinctive position due to the pivotal role it plays by way of

contribution to industrial output, employment generation (second largest after agriculture) and export


9

earnings of the country. The industry is rich and varied, embracing the hand-spun and hand-woven

sector at one end and the capital intensive, sophisticated mill sector at the other. Its association with the

ancient culture and tradition of the country lends it a unique advantage in comparison with textiles

industry of other countries, thus giving it an uncommon edge to cater to a vast variety of products and

market segments both domestically, as well as, globally.

The industry currently contributes about 14 per cent to industrial production, 4 per cent to GDP, and 17

per cent to the country’s export earnings, according to the Annual Report 2010-11 of the Ministry of

Textiles. The industry accounts for nearly 12 per cent share of the country's total exports basket. It

provides direct employment to more than 35 million people.

2.1 Industry sub-sectors

The textile industry comprises the following:

Organized Cotton/Man-Made Fiber Textiles Mill Industry

Man-Made Fiber / Filament Yarn Industry

Wool and Woolen Textiles Industry

Sericulture and Silk Textiles Industry

Handlooms, Handicrafts, the Jute and Jute Textiles Industry

Textiles Exports

2.2 Market size

The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12) sees India securing

a 7 per cent share in the global textiles trade by 2012. At current prices, the Indian textiles industry is

valued at US$ 55 billion, 64 per cent of which caters to domestic demand.

The export of textiles and clothing (T&C) aggregated to US$ 22.42 billion in 2009-10. The Government

fixed the target for 2010-11 at US$ 25.48 billion. So far during the period April- September 2010,

exports of T&C have been achieved at US$ 11.26 billion.

2.3 Production


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During February 2011, total cloth production rose by 5.8 per cent year-on-year (y-o-y). During April-

February 2011 cloth production increased by 4.5 per cent y-o-y.

2.4 Export

Total textile exports during April-December 2010 registered an increase of 16.54 per cent in rupee terms

at Rs 87,582.83 crore as against Rs 75,149.98 crore during the corresponding period of the previous

year, according to the latest data released by DGCI&S, Kolkata. The same were valued at US$

19,217.12 million as against US$ 15,695.07 million during the corresponding period of the previous

year, registering an increase of 22.44 per cent.

The share of textile exports in total exports was 11.29 per cent during April-December 2010 as against

12.34 per cent during April- December 2009.

2.5 Technical Textile Segment

The technical textiles segment is expected to grow by 11 per cent per annum till 2012-13 and is likely to

grow at 6-8 per cent per annum till 2020 without any policy interventions. If the government intervenes

by way of regulatory push, the growth of technical textiles industry can be estimated at 12-15 per cent

per annum till 2020, according to Rita Menon, Secretary, and Union Ministry of Textiles. She added that

the technical textiles segment in India has the potential to attract investment and create additional

employment opportunities in coming years. She further said that investments of US$ 1.1 billion are

expected by 2012 and employment is expected to increase to 1.2 million by 2012.

Textile business is one among the largest foreign exchange earners in India and this sector has been

significantly benefitted from the termination of Multi-Fiber Arrangement in the year 2005. Out of the

total exports in India, 17% is contributed by the textile industry in India and this industry account for

14% of its industrial production.

More than 35 million people are employed in this sector. When it comes to India’s exports, carpets and

readymade garments offer larger contributions. The names of top players in the Indian Textile Industry

are given below:


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Top companies in Textile industry in India:

• Bombay Dyeing

• Fabindia

• Grasim Industries

• JCT Limited

• Lakshmi Mills

• Mysore Silk Factory

• Arvind Mills

• Raymonds

• Reliance Textiles

2.6 Textile industry in India

2.6 (a) History

The history of textile is almost as old as that of human civilization and as time moves on the history of

textile has further enriched itself. In the 6th and 7th century BC, the oldest recorded indication of using

fiber comes with the invention of flax and wool fabric at the excavation of Swiss lake inhabitants. In

India the culture of silk was introduced in 400AD, while spinning of cotton traces back to 3000BC. In

china, the discovery and consequent development of sericulture and spin silk methods got initiated at

2650 BC while in Egypt the art of spinning linen and weaving developed in 3400 BC. The discovery of

machines and their widespread application in processing natural fibers was a direct outcome of the

industrial revolution of the 18 th & 19 th centuries. The discoveries of various synthetic fibers like nylon

created a wider market for textile products and gradually led to the invention of new improved sources

of natural fiber. The developed of transportation and communication facilities facilitated the path of

transaction of localized skills and textile art among various countries.


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Indian textile enjoys a rich heritage and the origin of textile in India traces back to the Indus valley

Civilization where people used homespun cotton for weaving their clothes. Rigveda, the earliest of the

Veda contains the literacy information about textiles and it refers to weaving. Ramayana and

Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India.

These epics refer both to rich and stylized garment worn by the aristocrats and ordinary simple clothes

worn by the common people. The contemporary Indian Textile not only reflects the splendid past but

also cater to the requirements of the modern times.

There has been a distinct and positive shift from quality to quality to quality. Earlier Indian textile were

considered cheap and of low quality. The industry was at that time driven by large volumes, which were

of paramount importance. The best quality was produced in Europe and Japan. Since then, India has

come a long way, emerging as a manufacturer of quality yarns and fabrics. The leading mills such as

Raymond’s, Read &Taylor, Aravind mills etc, improved their quality standards prevailing into the

world.

2.7 Number of Competitors

The competitors for Indian Export oriented textile industry are:-

Pakistan

China

Bangladesh

Vietnam

2.8 Growth Rate of Textile Industry

Textile industry growth rate to reach 16%. The textiles sector is expected to attract an investment of Rs

1,50,600 crore by the end of 11th Plan and it would generate employment opportunities for a 17.35

million workforce, of which 5.2 million will be skilled, according to the Minister of Textiles, Mr

Shankersingh Vaghela.

Textile exports are expected to grow by 22 percent and would earn USD 55 billion by the year 2012.


13

2.9 Suppliers of Raw Materials in INDIA

Fabrics for textile industry are supplied by: loyal textile mills, PMA Hand Weave Pvt LTD, V.N

Dyers and Processors Pvt. Ltd.

Kints and knitted fabrics are supplied by: Vel textile, Alpha clothing company, Glory House

Apparels, and Daisy Apparel Designers etc.

Colours and chemicals are supplied by: Bhatia colour company, Yoshiaki chemicals company

Pvt. Ltd, Triveni chemicals, Ava Chemical Pvt. Ltd.

Machines are supplied by: Pradeep Industries, Tanishq Enterpries.

Threads, Laces, Yarns and other accessories are supplied by: Narendra Corporation, Viken Tape

Industries, Shivam Narrow Fabrics, Rahil Foam Pvt. Ltd., Anil associates etc.

2.10 Key Success Factors in textile Industries

Some of the key success factors are:-

1. Willingness to Invest and re-invest in the company.

2. Cultural Openness to changes.

3. Focus to excellence and differentiation.

4. Being stable ground.

5. Understanding of the work environment and the Items to be produced and marketed.

6. Having the operational basis.

7. Well defined target markets.

8. Quality and diversity, Resources to execute changes.

9. Implementing change proactively.

10. Innovation and Technological change.


Chapter – 3

COMPANY PROFILE


14

3.1 Introduction to “SPL INDUSTRIES LTD.”

SPL INDUSTRIES LTD. is a privately owned company of Garment Manufacturing. Starting from the

modest turn over in 2007 it has a Group turnover of forty million USD with garment export of over 10

million units annually. SPL INDUSTRIES LTD is a favored supplier of garments not only in countries

but in continents.

3.2 Company Name : SPL INDUSTRIES LTD

3.3 Type of Organization : Private Limited Company of Textiles / Garments / Accessories.

3.4 Year of Incorporation : 1994

3.5 Company Profile : Three Star Export house exporting fabric, knitted garments.

3.6 Mission:-

“As a textile group we value for our customers, to earn a long term loyalty. To attain this we are here as

a vertically integrated textile group.

3.7 Goals:-

SPL INDUSTRIES LTD always strives to achieve greater heights

Back integration into Processing of knitted fabric with an outsourcing knitting and yarn.

Domestic foray a small start through opening of their first shop ‘SAM & SALLY’.

Almost doubling of capacity from 20,000 pieces per day to 40,000 pieces per day.

Home textile.

Setting up of art garment wet dry processing plant.

3.8 OBJECTIVE OF COMPANY

The objectives of SPL INDUSTRIES LTD are achieved through the implementation and maintenance of

well document system to meet the requirement of buyer’s standards.


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Objectives establish the goals and the aims of business and determine its shape of future event.

Objective are they way of achieving motives for profit or self service. Objective represents a clear

picture of activities which are sought to be achieved. Main objectives of SPL INDUSTRIES LTD as

given memorandum of association are: -

1. To introduce new products and create new markets.

2. Increasing productivity of work force.

3. Customer service and Customer satisfaction.

4. Increasing work culture among the employees.

5. Capitalizing on company strengths and use of corporate assets.

6. Increase quality products and services.

7. Continuous innovation.

8. To provide a growth rate of about 10% per annum.

9. Improve the advertising effectiveness.

10. To ensure that large proportion of sales in directed towards the rural sectors and urban

sectors.

SPL INDUSTRIES LTD has become favored supplier of high fashion garments to leading customers in

many countries and continents. Efforts are made from the stage of raw materials arrived at the units of

the heart manufacturing facilities along with the professional team of stitching consultants all lead to

high productivity and efficiency.

The SPL INDUSTRIES group has a passion for innovation at every stage of sampling and production

coupled with fully equipped laboratories for continuous research and development that ensure that the

final product.

3.9 Promoters of the Company

Mr. H.R. GUPTA

Mr. VIJAY JINDAL


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SPL INDUSTRIES LTD is privately owned company being managed by promoters. Mr. VIJAY

JINDAL in 1994 started this company. He hails from a family of entrepreneurs. He alone managed his

business for many years.

Mr. H.R. GUPTA is a nephew of Mr. Vijay Jindal who joined hand in the business, who is a mechanical

engineer. He gave a whole new out look to the business &expanding business demand.

3.10 Number of Employees Working

The company has a work force of six thousand (6,000) employees spread across its branches

located in Faridabad -Industrial Sector -37, Sector -6, Sector-24, Sector- 57

In SPL INDUSTRIES LTD, Faridabad sector-6, the total numbers of employees working are

3160 in plant including 372 administrative staff.

3.12 Classification of Employees

The classification of employees is done according to the following factors:-

Skilled labours : 1990

Semi-skilled labours : 1000

Unskilled labours : 170

3.13 Market Share

Market share of the company differs from country and it is not determined by the company and

hence not known.

3.14 Organization Structure

SPL INDUSTRIES LTD


DIRECTORS

17

3.15 Size of Land and Building

The overall complex has spread over an area of twelve acres and plant building has a built up area of ten

thousand square feet. The plant has advanced in house laboratory for research and development and

quality control. The plant site includes extensive facilities for all employees including proper housing,

canteen facilities etc. SPL INDUSTRIES have their own knitted fabric processing plant where they can

control the entire production process and able to match their own standards and requirements.

Geographical Location

Following is the Geographical Location of SPL INDUSTRIES Ltd.


GM PRODUCTION

SHIPPING MANAGER

SAMPLE INCHARGE

PERSONNEL MANAGER

MARKETING MANGER

FINANCE MANGER

SHIPPING OFFICER

PATTERN MASTER

SAMPLING CORDINATAR

PERSONNAL/ WELFARE OFFICER

PERSONNAL ASSISTANT

SERNIOR MERCHANT

ASSISTANT MERCHANT

ACCOUNTS OOFICER

EDP INCHARGE

ACCOUNTS ASSIATANT

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State City Industrial Sector

Haryana Faridabad Sector -37, Sector -6, Sector-24, & Sector- 57

3.16 Product Produced at SPL INDUSTRIES LTD.

Fabric knitting

Fabric Singeing

Fabric Mercerizing

Fabric Dyeing / Processing

Fabric Shedding and Peaching

Fabric Printing

Garments Printing & Dyeing

Knits Garments Manufacturing: Men, Women & kids

Garment Washing

Computerized Embroidery

Machine and Hand Embroidery

Home furnishing

3.17 Suppliers of Raw Materials

Raw Materials used: - The basic raw materials used are fabrics which they acquire from Gujarat and

every day a truck is sent to Faridabad plants to acquire the raw materials from locally.

Other raw materials are sourced from: -

- Taiwan

- Hong Kong

- Singapore.

3.18 SPL AT A GLANCE

SECTION CAPACITY

KNITTING - 24 TONS/day

DYEING - 28 TONS/day

FINISHING - 28 TONS/day


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MERCERIZING - 05 TONS/day

FABRIC PRINTING - 100,000 Mtr./day

GARMENT WASHING& DYEING - 60000 PCS/day

KNITTED GARMENTS - 1.7million pcs

HOME TEXTILE - 100,000sets/ month

3.19 SPL CUSTOMERS

Our high profile customers are not happy but also satisfied which has earned us recognition &

unflattering loyalty from prominent buyer’s worldwide.

Customers Countries

GAP Inc - USA

J.C. PENNY - CANADA

KOHL’S CORPORATION - MEXICO

FEDERATED DEPARTMENT - UK

PHILLIPS- VAN HEUSEN - GERMANY

HARTMARX CORPORATION - SPAIN

SEARs, ROEBUCK & CO. - NETHERLAND

3.20 Bankers and Financial Institutions

Sourced from SIDBI

Transactions with Corporation Bank

IDBI

UTI

3.21 Transporters and Dealers/ Agents


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The company has its own well established road transportation facilities. The forward agent of this

company is VRL agents.

3.22 Key Success Factors

Well defined target markets.

Well defined Quality standards.

Openness to change.

Innovation and technology.

Willingness to invest and re-invest.

Good relationship with the suppliers and clients.

Coordination between the employees.

3.23 SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

Strength


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Automated technology. Good financial strength. Multi skilled employees. Eco friendly business. Flexibility in adopting Innovation technology. Quality certified company. Highly experienced top level managers.

Weakness

Scope for expansion. Expansion of exports across the globe. Explored option in SEZ industrial area. Government subsidies and special schemes. Difficulty in adopting product pricing strategies. Difficulty in understanding the western customer’s expectations. Barriers to understand Cultural differences from one country to country. Opportunities. Tax exemptions.

Threats

Cut throats competition from the rival companies. Difficulty in adopting product pricing strategies. New entrants. Ever changing demand. Instability in currency values. Fast changing fashions.

Starting from the modest turnover, in 2007 SPL INDUSTRIES LTD has a turnover of $40 million with

garments export of over ten million units annual. SPL INDUSTRIES LTD is currently doing turnover of

six million garments every year and increasing constantly (turnover- 200 Crores). In expansion mode to

double Turnover by 2009-10.

The management of SPL INDUSTRIES LTD recognized the need for expansion and after having

explored the various options to set up the expanded capacities at Faridabad it is here that the government

has started a SEZ for textile industry. On completion of Faridabad projects the production capacity was

grown from the existing 7 million to 20 million garments per annum. In addition to garments

manufacturing plant they have planned to expand the kit fabric capacity to 25000lbs per day.


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The set up of the garments manufacturing and knit processing units at Faridabad was carried out in

phased manner which are as follows:-

Phase I (2007-08):- Garments manufacturing plant - 500 machines, 1000 employees (completed)

Phase II-(2008):-Processing plant begins production -12000lbs per day – (started in September 4, 2008)

Manufacturing plant capacity – 1500 machines per day, 3000 employees (completed)

Phase III 2009:- Processing plant- 25000lbs per day

Manufacturing capacity- 3000 machines.

Employees – 6000.

Phase IV 2010:- Manufacturing capacity -4000 machines, (Knitting Plant operations) employess-8000



PART- 4.1

FUNCTIONAL ANALYSIS

PRODUCTION DEPARTMENT

PRODUCTION is the functional area responsible for turning inputs into finished outputs through a

series of production processes. The Production Manger is responsible for making sure that raw materials

are provided and made into finished goods effectively. He must make sure that work is carried out

smoothly, and must supervise procedures for making work more efficient and more enjoyable.

Production department plays a very crucial role any of manufacturing organization. It is the department


23

which gives life and meaning to the products. The role played by a production department in SPL

INDUSTRIES LTD is very vital. SPL INDUSTRIES LTD decides to accept a client a complete team is

assigned to the task at hands. The machineries required in the production process are imported from

Italy, America, UK, and Turkey.

Organizational Chart of Production Department

Production department is headed by Mr. H.S YADAV; he has vast experience in handling of that

department.

FIVE PRODUCTION SUB-FUNCTIONS

In this company the production function are divided into five sub-functions:-

1. Production Planning: - the production and planning department in SPL INDUSTRIES LTD

will set standards and targets for each section of the production process. The quality of products

coming off from a production line will be closely monitored. Focusing on lean production,

quality will be monitored by all employees at every stage of production, rather than at the end.


GENERAL MANAGER

PRODUCTION MANAGER FLOOR IN CHARGE

FLOOR IN CHARGE

QUALITY ASSURANCE MANAGER

SUPERVISOR

SUPERVISOR FEEDER

FEEDER OPERATORCHECKER

TAILOR

QUALITY ASSURANCE ENGINEER

QUALITY CONTROL

24

2. Facilitating Material Acquisition:-the purchasing section in the production department is

responsible for providing the materials, components and equipment required to keep the

production process running smoothly. Time officer is responsible for a vital role of ensuring

stocks arrive on time and to the right quantity.

3. Stock Maintainers: - The stores section of the production department will be responsible for

stocking all the necessary tools spares raw materials and equipment required to services the

manufacturing process. Buffer stocks are kept and the use of computerized stock control systems

helps keep stocks at a minimal but necessary level for production to continue unhindered and

smooth flow.

4. Designing and Technical support:- The design and technical support section in the production

department will be responsible for reaching new products or modifications to existing ones,

estimating costs for producing in different quantities and by using different methods. The

technical support officer in the department may be responsible for work study and suggestions as

to how working practices can be improved.

5. Maintenance: - the works departments will be concerned with the manufacture of products. This

will include the maintenance of the production line and other necessary repairs. The work

department may also have responsibility for quality control and inspection.

With the aim of producing processed fabric that is of good quality and international standards

complying with ISO 9001 parameters using eco-friendly products and processes SPL INDUSTRIES

LTD has set up the most advanced processing plant in the country. The plant uses the latest

technology all the machines represents the state of the art.

The facilities at Processing Plant

Bleaching, dying, printing, compacting and stone washing are the activities done at process house. The

process does not use any dyes, chemicals / auxiliaries which contains banned amines (AZO group dyes)

i.e., those which leaves traces of carcinogenic allergic / toxic elements in the final product.

Plant Capacity

The plant employee 350 people and has an installed capacity for producing and processing 7 tons of

fabrics per day. It has in house facilities for hand embroidery and also it has computerized embroidery

machines which are capable of producing 10000 pieces per day.


25

Product Produced

The main range is of garments are made from knitted fabric.

SPL INDUSTRIES LTD recently ventured into ladies fashion garments in woven fabrics. This was

mainly due to consistent insistence from our existing buyers. Now they are in verge of expanding our

dimension in woven garments also.

The types of products are:-

Kids Wear

Woman fashion garments

Men’s wear

Woolen garments

SPL INDUSTRIES LTD has their own knitted fabric processing plant where they can control the entire

production process and able to match their own standards and requirement.

Type of transportation used

Road transport

Airways

Shipping

Types of Manufacturing Equipments

Type of machinery Quantity in numbers

Ordinary + edge cutter 729

Sprit bar 36

4 thread 268

6 thread 215

Piping roll 6

Snap attach machine 14

Kanasai machine (elastic attaching) 6

Button hole machine 12


26

Button machine 12

Zig zag 4

Cutting machine 20

Ironing machine 120

Needle detector 2

Fusing detector 7

Fabric spreader machine 1

Computer embroidery machine 18

Laser cutting machine 4

Pattern CAD machine 4

Raw materials used

The basic raw materials used are Knitted fabrics, threads, buttons certain chemicals, colors

Inventory Management System

For inventory control organization is using ERP software called “VISUAL GEMS” it record all

transaction of movement of material include inward & outward.

Total Quality Management

The term Quality in SPL INDUSTRIES LTD. means standard of the product what is expected of it by

the consumers. In production department the employees are committed to their work in a prompt and

effective sense that their efficiency and capability and commitment have helped the SPL INDUSTRIES

LTD. to supply good quality and standard products to its clients and customers. So the department is

focused in maintain and improving the quality of the garments, and they are following the Total Quality

Management principles.


27

Every employee is expected to take responsibility for managing quality issues in order to make sure that

waste minimized and quality issues in order to make sure that waste is minimized and quality

maximized. The total quality management is part of the lean production methods used in this industry.

Safety Program

The safety of the programs in SPL INDUSTRIES LTD is felt importance and hence the following are

the programs undertaken in the organization for the safety purpose:-

Recognized need to protect the environment and conserve natural resources for the well being of

the surroundings.

Training for proper handling and use of equipments and chemicals.

On call ambulance

Visiting doctors.

Full time nurse

Practice of yoga and meditation every day.

Challenges faced by the production manager due to recession

Due to recession in Economy, organization is getting order in less rate so to achieve cost this

challenging job for all production team to manufacture the product at low cost.

Due to recession production team has to produce product in limited manpower with less wage

rate

Vendor Management

Vendor rating is done on the basis of:-

Quality

Supply

On time Delivery of Raw materials

Periodicity of Rating: Quarterly Evaluation Parameters


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S.No Description Weight age

1. Quality 40

2. Delivery 40

3. Service 60

.

Production Process


FABRIC CHECKING

CUTTING

(Cutting, layering and ticketing)

CARTON PACKING

29

SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

Strengths

Low cost labour


PANEL CHECKING

SEWING

CHECKING

PRESSING

FINAL CHECKING

SPOT CLEANING

TRANSPORTATION

REPRESSING

FOLDING

AQL INSPECTION

PLY BAGGING

30

Flexibility in adopting in innovative technology.

Safety Instruments.

Planned lay out

Easy material handling.

Systematic processing activity.

Weakness

Machinery and technological obsolescence.

Improper utilization of resources.

Wastages.

Opportunities

Scope for product diversification.

Flexibility in adopting Automated and highly sophisticated machineries

Scope for plant expansion.

Threats

Competitors may adopt better technology which the organization has not adopted.

Workers with skill may switch to the other job due to less remuneration and long working hours.


PART 4.2

FUNCTIONAL ANALYSIS

MARKETING DEPARTMENT

SPL INDUSTRIES LTD. is following business to business marketing system. It quotes to its customers

as: - “If you have imagination we will give a form and make it viable for production; both commercial

on cost and fashionable enough to sell and wear. Be it any kind of fabric or style, ‘SPL is ONE

STOPSHOP’ and marketing department works on the basis of above”.


31

Structure of Marketing Department

Marketing department is headed by Mr. Vivek Agarwal; he has vast experience in handling of that

department.

Functions of Marketing Department

This company is an Export company so the marketing functions involved are:-

Pricing the garments: - Sales department is not in the organization because it Exports the

garments to star Trading Exporters.


MARKETING MANAGER

MERCHANDISING TEAM SAMPLING TEAM SHIPPING TEAM

SAMPLING TEAM

SAMPLING COORDINATOR

DOCUMENTATION

MERCHANDISER

JUNOIR MERCHANDISER

SHIPPING MANAGER

SHIPPING COORDINATOR

DOCUMENTATION

32

Marketing research: - Marketing Research team collects the customer data by attending the

International Fair of Garment buyer in different countries. They also attend the fashion shows to

select the style and design of garments.

Sampling: - Sampling team demonstrates the company product and on base of that gets the

order. There is no promotional team in the company because the promotional activities are not

needed to make the sales, as they export the garments.

Transporting to the ports: - Distribution: distribution of the garments is done by using road

transportation and shipping.

Product Design Department: - is involved in designing the products as per the clients order and

requirement.

Price of the Product: - Price of product is depending on country wise buyer and type of

Garment.

Examples of few types of garments and their price are:-

COUNTRIES BUYER GARMENT TYPE RATE PER PIECE

Denmark UPIM 100% cotton single jerseys 2.5 Euro

USA GAP Polar Fleece 12.00 (USD)

USA Tomy Hilfiger Rib Crue neck 3.00 (USD)

USA Triburge Single jerky 2.50 (USD)

Objectives of Marketing Department

1. Focus on the customers and clients,

2. Monitor the competition.

3. Find and Direct Outside Vendors.

4. Involved in creating new ideas and modification in the existing ones.

5. Keeping in mind improvement in the quality of product.

6. Communicate Internally.

7. Set the strategy and executes the plan which is set.


33

Customers and clients

SPL INDUSTRIES LTD work with leading sportswear and active wear labels such as NFL, HARLEY

DAVIDSON, MOUNTAIN Warehouse etc. At SPL impossible is always made possible made possible

by default. They believe that customer’s base gives them immense pride and motivates them to set their

standards at sky levels.

Major Competitors

Arvind Mills.

Shih Exports.

Bhilwara Groups.

Asian Knitwear’s Export house.

Delhi Baby Wears.

Marketing Strategy of the Company

Measures of B2B Adoption Attributes

(a) Operation Efficiency - Potential Customer Identification

-Identify New Clients & to tie the business

(b) Cost Saving -Reduces Cycle time

-Increase marketability

-Reduces administration costs


34

(c) Inventory Control - Reduce stock holding

- Leads to just-in-time purchasing

- Provide flexible manufacturing system

(d) Manufacturing Supply Chain - Improves communication & coordination

- Build up a global logistic network

- Provide integrated information systems

(e) Customers focus - Makes product available to global customers

- Improves customer support

- Helps to identify global market trends

(f) Supplier Relationship -Help to identify alternative supply sources

-Help to link its main suppliers through information systems

SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

Strengths

Market leaders in garments manufacturing


35

Good International strategies.

High product demand.

Weakness

Slow in updating as and when global market changes.

Slow in updating the International fast changes style.

Opportunities

Expanding demanding

Research and development

Widening of exports

Fast changing life style in the International level will give several numbers of opportunities.

Threats

Competition from the global textile company.

Competition from the home companies which are involved in textile exports.

New entrants

Duplicate branding.


PART- 4.3

FUNCTIONAL ANALYSIS

FINANCE DEPARTMENT

Finance department handles all the important issues related to finance, accounts, taxation etc. cost

reduction and profit maximization is the main objective of this department. Financial management is

concerned with the efficient & effective use of economic resources namely capital fund. Finance is that

business activity which is concerned with the acquisition & conservation of capital funds in meeting the


36

financial needs & all objectives of business enterprises. The finance function deals with the procurement

of money at the time it is needed & its effective utilization in the enterprise.

Finance department is headed by Mr. Pushpakh Bansal; he has vast experience in handling of that

department.

The main functions performed in finance department of SPL INDUSTRIES LTD are:-

Investment of funds from consolidated funds.

Resources mobilization through loans, Institutional finance, small savings.

Following rules, procedures concerning financial transactions.

Preparation of budget, appropriation of accounts, re- appropriations.

Controlling the expenditure.

Administration of tax and export duties.

It provides a payment system for the exchange of goods and services.

It enables the pooling of funds.

It provides mechanisms for managing uncertainty and controlling risk.

It generates information that helps in coordinating decentralized decision making.

Different aspects of Finance include:-

Short Term Finance

In order to fill the gap of requirement of immediate funds the firm uses the sources of short term finance

from banks or the previous profits.

Asset Accounting

It is nothing but the total assets along with the depreciation along with them. Depreciation of assets is

done through Diminishing Balance Method.

Taxes

The company is enjoying the TAX benefits of 10 years as SPL INDUSTRIES LTD is located at

Industrial area.

Credit Period


37

Credit period allowed to the customers depends on the customer’s good will. Normally credit period

allowed is 30 days, 45 days and 90 days. The payment period allowed for the suppliers is 60 days.

Accounting software

Now each and every organization is automated. Every organization is reaping the advantages of

technology. Even the SPL Industries is using SAP Package for its effective accounting system.

The finance department handles all its financial activities through software called Electronic Data

Processing. The various sections in finance department are:-

Book and budget: - budget allocation and assets valuation

Sales: - Invoice generation, Billing and collection

Costing: - cost minimization, wages and salary administration

Bill payable

Initial Investment:

Initial Investment made in

SPL at Faridabad Sector-37: - 38 crore for processing plant and

SPL at Faridabad Sector-24: - 47 crore in stitching plant and building.

Financing Resources of the Organization

The financing resources of the organization are:-

Self investments.

Bank: - Sourced from SIDBI

Import & Export

(a) Imports: - They import the automated machineries costing lakhs of rupees from Singapore,

Hong Kong, Taiwan.


38

(b) Exports: - SPL INDUSTRIES LTD is garment manufacturing and export company, hence all

the products produced are exported to its clients spread across the globe.

Documents used in Export & Import:-

Indent: - An indent is an order sent to another country for the import of goods.

Letter of Credit: - It contains promise or guarantee by the importers bank on the behalf of the

importer to make payment to the exporter on presentation of the documents mentioned in the

L/C.

Bill of Lading: - It is a receipt containing details of goods shipped by the exporter. It is also a

contract between exporter and the shipping company.

Charter Party: - A charter party is a formal agreement in writing between the ship owner and

the exporter under which the whole ship or a substantial part of it is hired to carry goods for a

specified voyage or for a particular time period.

Performa Invoice- It is a kind of quotation sent by the seller to the potential foreign buyer

inviting him to place an order.

Commercial Invoice: - It is the seller’s bill of goods. It contains a detailed description of the

goods supplied by the exporter. This document is required for obtaining clearance from various

authorities. It serves as an evidence of sale and purchase.

Consular Invoice: - It is a special type of invoice required in case of imports made by a few

countries e.g., Philippines and South America. It enables the importer to obtain prompt clearance

of goods when they arrive at the spot of destination.

Customs Invoice- It is required in case of imports made by countries like U.S.A and Canada. It

is to facilitate entry of goods into the importers country at concessional rates of duty.

Certificate of Origin- It is a document issued as a proof of the genuine origin of the goods. With

it, the importer can get preferential treatment in the matter of import duties.

Bill of exchange: - It is an unconditional order in writing, signed by the person giving it,

requiring the person to whom it is addressed to pay on demand or at fixed date a specified sum of

money to a specified person or to the bearer.

Insurance Policy: - It is a contract of insurance under which the insurers agrees to pay

compensation in case of goods covered by the policy suffers any lost theft or damage.


39

Export Declaration Forms: - In India details of all goods exported from India are too given in

the prescribed export declaration forms.

Export Certificate – It is necessary when goods to be exported are subjected to quantity

restrictions.

Mate’s Receipt: - If these goods are delivered at the docks, a dock’s receipt is issued. If the

goods are delivered to the captain of the ship, he will satisfy himself about the condition of

packing. If he is satisfied he will issue a clean mate’s receipt otherwise a foul mate’s receipt is

issued.

Certificate of Inspection: - It is issued by the export inspected agency. It certifies that the

consignment has been inspected as required by the quality control and inspection act.

Shipping Order: - It is issued by the shipping company to intimate the exporter about

reservation of space on the board of the ship.

Application for Certificate of Origin: - It is submitted to the authorized chamber of commerce

that shows the origin of goods from a particular country. In the import procedure, bill of entry is

important document which clears imported goods. Bill of entry may be for home consumption or

for warehousing.

Net sale: -

Sales and profit are not revealed as it is a private company. However the approximate figure given by

them are as follows:-

Total sales for 2009-10:- 120 crore

Estimated sales for 2010-11:- 150 crore

Working Capital

The working capital is an combination of Current Asset & Current Liabilities. The required of necessary

working capital has been worked out as under.

Current Assets

Inventories 8, 33,000

Cash and bank balance 7, 35,000

Debtors 9, 78,000

Advance to suppliers of Raw material 4, 41,000


40

Other current assets 2, 82,000

Total 32, 69,000

Current Liabilities and Provisions

Sundry creditors 4,37,000

Provision for taxation 2,82,000

Total 7, 19,000

Working Capital Gap 25, 50,000

Financed By:-

Working capital funds from Bank 5,30,000

Own Funds 10,95,000

Organization Chart Finance Department


FINANCE MANAGER

SENIOR ASSISTANT

EDP MANAGER

JUNIOR OFFICER

41

SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

STRENGTHS

Smooth working capital flow.


EXECUTIVE ACCOUNTANT

ACCOUNTANTS ASSISTANTS

42

Good fixed capital

WEAKNESS

Leakage of confidential records.

Improper allocation of budgets.

Delay in receiving the bills.

OPPRTUNITIES

Proper allocation and maintenance of records

Governmental subsidies.

THREATS

Money value variation at International level.

Changes in Government polices as well as Export policies.


PART -4.4

FUNCTIONAL ANALYSIS

HUMAN RESOURCE DEPARTMENT

Human resources department is the important department which is very essential for the betterment of

the organization. For this textile organization, a little bit difference in the scope, approach in HR concept

is required, because here people think differently and expect differently, around 80% mangers spend


43

time in handling of human resources. A very common problem always exist is conflict in intra-

department or in worker and management, so HRM play as a tool to resolve this problem efficiently.

Human resource department is playing a very crucial role in the organization and it is helping out to

carry out the all the functions in the organization effectively. In SPL INDUSTRIES LTD. department

Heads will forecast man power requirement and send the report containing detailed information

regarding – the required number of candidates, qualification required. The report will be sent to the HR

department. Issue is discussed with the management and decision is taken after a detailed discussion. If

the requirement of human resources is confirmed then the HR department will take proper steps.

Organizational chart of HUMAN RESOURCE DEPARTMENT

Human Resource department is headed by Mr. R N YADAV; he has vast experience in handling of this

department.

FUNCTIONS of HR

The various function performed are:-

Recruitment

Selection

Orientation

Induction


HR MANAGER

OFFICE BOY TRAINING OFFICER HR EXECUTIVE

TRAINING INSTRUCTOR

GARDNER

HOUSE KEEPING STAFF

SECURITY

HR ASSISTANCE

44

Training

Human Resource Department

Promotion polices

Compensation- reward, reward for best services, earned leave.

Performance appraisal.

Motivation

Welfare

Other disciplinary aspects.

Recruitment

In SPL INDUSTRIES LTD after HR need is analyzed the HR department will give advertising in

papers, local city channels, employee referrals, approaching consultancies.

Selection

The selection process followed in SPL INDUSTRIES LTD, Faridabad:-

(a) Receiving the applications and resumes.

(b) Screening the applications

(c) Personal direct interview.

(d) Medical examination

(e) Placement

Orientation

After selection Induction program will be conducted by the welfare officer to help the new employee to

understand the working environment. Introduction with the work place, colleagues, giving information

about the nature of job, leave benefits, salary, provident fund, insurance, welfare benefits, position in

hierarchy etc are given. They are also briefed on their roles and responsibilities and their direct reports.

Induction

SPL INDUSTRIES LTD welcomes its new employees through a process of induction where the new

recruits are briefed about the organization focus on social compliance and education, health & safety

measures, rules and regulations, DO’s and Don’ts etc., before taking up the work.


45

Training

Identification of the training needs at 3 levels is done:-

At individual level

At department level

At organization level

On the job training and in house training are followed to train the newly hired employees. Annually

training section in the HR department prepares its own training calendar, monthly training schedule with

the help of time officer.

Human Resources Development

Human resources development (HRD) is phenomenal for this Industry. HRD deals with up gradation of

skills for labour and executives, planning and allocation of work, monitoring and assessment of

performance. One of the most important tasks is upgrading the skills and knowledge of the human

resources from to time. This up gradation is done through training and workshop/ seminars. HRD

activities result in increased productivity, reduced cost and wastage, rightsizing of labour and staff at the

organization, organizational stability to adapt to future changes. At the managerial level different

developmental programs are scheduled and compulsorily undertaken.

Compensation Polices

Here a major issue is the wages and salary with time so HR takes care about that and makes structure in

such way that it satisfies both worker (employees) and management. This function is taken care by

wages and salary administration section of HR department. It is computerized, and calculated on the

basis of attendance. In case of unpaid wages salary reconciliation is made, in case of resigns full and

final settlement of his/ her account is made.

Reward for Best Services

Outstanding performances: - cash prize or other benefits implies to workmen to the grade up to juniors

managers.


46

Earned Leave

Permanent worker who have actually worked in a particular leave year for 240 days would be entitled

for 12 days earned leave. For the days worked in excess for 240 days concerned workmen would be

entitled to 1 earned leave for every 20 days actually worked.

Disablement Benefit

If temporary disablement due to employment injury: then if the person were injured he/ she

would be compensated with about 70% of daily average wage.

If permanent disablement due to employment injury: then periodical payment is paid for the

person who is injured / to the dependent of the injured person.

Performance Appraisal

Performance appraisal of the employees is doe quarterly, half yearly and annually 360 Degree

performance appraisal of an employee is done in the organization in order to increase his / her work

efficiency.

Motivational Activities

Motivating the employees to make them perform their better is one of the major functions in the

performed here. Awarding the best performers of the week in each section of the departments is one of

the best motivating factors. It helps in motivating the employees in operational level and managerial

level.

Empowerment and Welfare Program for employees

The employee’s comforts are satisfied by:-

(a) The special medical facilities:-

Visiting doctors

Full time nurse on premises

On call ambulance

Day care centre

Need based loans


47

Educational opportunities for their families

Canteen facilities on contractual basis which provide subsidized, clean, hygienic food at

reasonable cost

First aid facilities- First aid facilities at cupboards well equipped with the prescribed medicine

are provided in all departments. Each box is in charge of responsibility of the person who holds

certificate in first aid treatment.

Maternity benefit is given for maximum of 12 weeks in case of confinement and minimum 6

weeks.

Crèche to look after the children of personnel during their working hours(age group of 1-4 years)

every child’s birthday is celebrated by cutting cake and gift from the company.

Fire exit, and emergency exists facilities.

(b) The different committees are formed for the well being of the employees. The committees

are

Canteen committee of 10 members- every month end meeting are held and feed back is collected

from the personnel.

Sexual harassment committee- this committee consists of 70% of women employees of the

organization.

Health and safety committee- this committee takes care of gadgets and educates the personnel

about the safety measures to be followed in different situations.

Workers committee – this committee is formed and functions as per Industrial Disputes Act.

(c) Employee Welfare Officer arranges regular workshops, demos, lectures and seminars etc.

to empower regarding the following:-

Monthly awareness program for new employee.

Safety measures thought to the employees

Personnel hygiene

Extinguish fire


48

Women’s day celebration.

(d) Other Disciplinary Functions :-

Visitor identity card for outsiders.

Attendance register is strictly maintained.

Identity card is must inside the premises.

Child labour is strictly prohibited (age below 18)

Commencement of work at his/her assigned end place.

Starting and closing of interval period shall be notified from time to time, and signaled by the

sound of siren.

Employees after completion of work/shifts should leave the factory premises immediately within

15 minutes from the close of shift hours.

If any employee is late to work whether at commencement of shifts/working hours or after lunch

intervals for more than 5 minutes in the month during 2 successive or for more than 5 times in

month shall be declared a habitually late and shall be liable for disciplinary action.

Yoga and mental mediation is practiced before the tea break.

(e) Entry and Exit

All employees shall enter or leave factory premises by the gate specified for the purpose

No employees shall enter the established factory premises except when on duty, without the

permission of the security / any other officer authorized by the management in this behalf.

No employee shall take with him /her inside the factory any outsider person/friend/relative

without the permission of the officer authorized on behalf.

Any employee who has granted off duty, or has resigned or is not working for any reason shall

immediately leave the factory premises and shall not enter without the permission there after.

No employee shall factory premises during duty hours except after obtaining written permission

of the authorized officer and with a gate pass. If any employee desires to leave the factory

premises during the hours of work notified for him/ her, he/ she shall obtain the prior consent of


49

the absence of managers, from the in charge manager for any other officer authorized in this

behalf.

Retrenchment

Attendance is taken and checked and irregular employees are kicked out. Those who are indiscipline are

also removed from the job.

Number of employees working in the organization are 3160

Data acquisition -48

Fabric and stores -52

Cutting section -372

Stitching- 1078

Maintainence-37

Finishing- 789

Quality-578

Accounts and Audit- 15

Industrial engineer – 74

ERP (Enterprise resource planning) - 44


50

EDP (Electronic Data processing) - 36

Human resources and administration – 37

Classification of Employees

The classification of employees is done according to the following factors:-

Skilled labours : 1990

Semi-skilled labours : 1000

Unskilled labours : 170

SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

Strengths

Increase two- way communication, coordination and involvement.

Good working condition.

Educated and experienced staff.


51

Attracts and retain right person at right job with right remuneration.

Skillful, technical and experienced employees.

Participative management.

Friendly environment

Weakness

Conflicts.

Language barrier.

Opportunities

Empowering the employees.

Scope for motivational activities.

Threats

Job hopping



PART- 4.5

EDP DEPARTMENT

EDP means Electronic Data Processing. Here data is collected and fed to computer.

All transactions relating to receipt / supply of material, equipments and services are duly codified. All

jobs connected to accounts namely, sales accounts, purchase accounts, debtors and creditors accounts,

material accounting, cash and bank transactions general ledger and subsidiary ledgers, wages and

salaries are dealt by this section. The input data from various divisions are received and processed and

computerized accounts are submitted to Finance and Accounts department.

This section is headed by an EDP manager duly assisted by one junior officer and one Senior Assistant

To back support SAP R/3 and to facilitate team members with a latest and state of art IT hardware they

are operating fully fledged EDP Dept. The dept. comprises with team of qualified IT professionals to

assist team members wherever the IT support is needed.


52

By and large each of the members is interconnected with the help of latest and fastest available

hardware component for ease of internal communication needs. All three of the plants are

interconnected with a fiber optical channel. While designing such communication channels

redundancy is kept in mind to cope with any hardware failure instances.

Exclusive server room is provided with latest technological equipments like high end server

products for fastest operational efficiency and redundancy. Server room is facilitated with

Precision air conditioner and backed by most reliable UPSs. Each of the team members enjoys

independent internet facility on their PCs. Proper backup mechanism ensures the safety of data

and provisions are undertaken to secure the data from various viruses and other corruptions.


53


SWOT ANALYSIS:-

S STRENGTHS

W WEAKNESS

O OPPRTUNITIES

T THREATS

STRENGTHS

Flexibility in adopting innovative technology.

Quality certified company.

Well established infrastructure.

Planned layout of process house and stitching plant.

Willingness to invest and re-invest.

Multi skilled labour at low cost.

Eco-friendly business.

Adopting Japanese principle such as six sigma and kaizen to improve the quality of product.

WEAKNESS

Difficulty in adopting product pricing strategies.

Difficulty in understanding western customers.

OPPORTUNITIES

Scope for expansion.

Expansion of Exports across the globe.

Increasing demand.

Explored options in SEZ Industrial area.

Tax exemptions and Governmental subsidies.

Promotion of New Brands effectively with introducing new varieties in textile.


55

54

THREAT

Cut throat competition from rival companies.

Ever changing demand

New entrants

Language barrier and misunderstandings.

Change of Government Policies in Export and Import.

Increasing cost of human capital.


FINDINGS


56

The company has well established infrastructure and healthy environment which attracts the

Human resources’ willingness to work over there.

The company is enjoying the Governmental subsidies and Concessions given in SEZ Industrial

area.

Tax exemption up to five years is one of the advantages which the company is enjoying.

Low cost labours with multi skills in various backgrounds are available easily.

Well established transportation facilities.

SPL is one of the biggest companies manufacturing and exporting the quality knitted garments.

It has a separate HRD section for maintaining its manpower resources.

Intensive measures have been undertaken for pollution control and environment.

The culture of SPL is informal, where every person can directly meet to high authority without

any systematic way which I considered was good because it encourages employees at work.

Organization structure of SPL Industries is well formatted in which each and every department

plays important role.

All the employees and laborers work very hard towards achieving the goal. Even the higher

authorities work hard without wasting time always they take steps towards achieving the

organizational goal.

Administrative head role in an organization very important to make good working environment

the practice which I observed was that he was very hard working person and he does his work

very efficiently.

CONCLUSION


57

From the above SWOT analysis it is clear that the strengths as well as opportunities of company are

more. It is due to the efforts made by all the levels-top level, managerial level, and operational level of

the organization. The initial investments were 25 crore and every year they increased the investments

this willingness of the entrepreneurs shows the plus point of the organization. The ever expanding

business every year is the indicator of success and its bright future; it shows the company’s commitment

to future growth and improvement. The company’s opportunities need to be grabbed and for

improvement and further success. The company is not only has profit Human resources and society.

Starting from the modest turnover, in 2007 SPL INDUSTRIES LTD. has a turnover of $40 million with

garments export of over ten million units annual. SPL INDUSTRIES LTD is currently doing turnover of

six million garments every year and increasing constantly (Turnover-200 Crores). In expansion mode to

double turnover by 2009-10 the board of directors has set up the plant in Faridabad sector-37.

SUGGESTIONS

The company should grab various opportunities for future perspective and growth.

Proper allocation of funds in various activities.

Maximum utilization of resources.

They should undertake some steps to minimize the wastages.

They must undertake some steps to remove employee absenteeism.

The R&D department should concentrate more efficiently in developing new types of products

according to the fashion of 21st century.

SPL Industries are more focusing its exporting to International markets, where it should also

focus in domestic markets also.


LEARNING EXPERIENCES


58

1. The experience in the organization during my internship project was great. In the organization I

learn how the activities take place in real world in the business organization. It helped me to

relate and understand the practically with theoretical concept which I have learnt in class room. I

saw over there how issues are discussed and decisions are take place. In all the functional

departments the employees with multi skills and their commitment and job effectiveness are

utilized. Each employee has the freedom to give his opinion for the betterment of the

organization.

2. Getting permission in the any company to undertake internship even for four weeks it was very

difficult. In some companies the gate keeper sent us back not letting me to speak with either HR

manager to Training Officer. The reasons they gave are many. Then I tried in SPL INDUSTRIES

LTD & finally I got permission to do my internship project in the various department of the SPL

INDUSTRIES LTD. The day I got permission HR manager Mr. R.N Yadav introduced me with

HR Executive, Mr. Nitin Gupta who was my guide in the organization. He explained me about

the timings and other rules to follow during my internship.

3. I was able to get maximum information from each section of the company. It happened due to

the good coordination and fantastic guidance of my Guide Mr. Nitin Gupta. He helped me in

updating my knowledge & skill, he also told me in which area of skills I should work on such

as:-

Good communication skills,

Computer Knowledge of hardware & software

Extra course like- SAP Modules, NCFM Certification, AMFI certificate for mutual fund

license.

Read daily newspaper in order to remain with current knowledge as global which is

required tool of modern life.

4. Things I have learnt the various managerial skills, time management, coordination, confidence,

decision making and execution, and communication skills. I learnt from the employees the

cooperation, commitment and dedication in work environment.


59

5. I would like to work in the same organization with the same person who has coordinated in my

training.

From all overall experience I realized that still what I have to work on more on required areas and the

life outside the class room is difficult. The duties, responsibilities, commitments we need to understand,

follow and we also required listen to commands from the higher authority under which we work.


BIBLIOGRAPHY


60

Books:-

Company Boucher & records of SPL Industries LTD.

K.Aswathapa –Human Resource and Personnel Management.

K.Aswathapa – Production & Operations Management

J.C. Gandhi – Marketing Management

Pradip Kumar Sinha – Financial Management

Web site:-

www.spllimited.com

www.rbi.org.in

www.ibef.org

www.txcindia.com

www.fibre2fashion.com

www.allbankingsolutions.com

www.forex-rates.biz



61

SPL INDUSTRIES LTD

A WORLD CLASS RESOURSE FOR FABRIC KNITTING, PROCESSING, FINISHING &

GARMENT MANUFACTURING.

INDIA OFFICE: Plot No. 21

Sector-6, Faridabad

Haryana-121006

Phone: 91-129-2240411

Fax: 91-129-5069978, 2243340

WEB: www.spllimited.com

US OFFICE: 4011, W.PLANO PARKAWAY,

SUITE# 107 PLANO, TX 75093

PHONE- 972- 964-0068.

REGD. OFFICE: 5/66, K.C House, 3rd Floor,

Padam Singh Road, Karol Bagh,

New Delhi - 110005

Phone : 91- 11- 25789729, 25716150


http://www.spllimited.com/

ANNEXURE

QUESTIONNAIRE

NAME:……………………………………………………………….........................


DESIGNATION:…………………………………………………..........................

DIVISION:………………………………………………………….........................

DEPARTMENT:…………………………………………………….........................

NOTE: Please tick below the Ans of the following questions.

1) Which type of Training you have attended?

Skill development

Management development

IT

Spiritual

Project management

2) Training Program helps you in

Personal development

Job

Both

Nothing

3) Who identifies Training needs?

Your reporting officer

Your self to reporting officer

Only self appraisal system

Self appraisal & management

None of the above

4) How was the Training instruction in terms of resources & environment?

Poor

Fair

Good

Very good


Excellent

5) Applicability of Training and Development programme is

Poor

Fair

Good

Very good

Excellent

6) Training program increases your

Potential only

Potential ability

Skill only

Potential and ability

Useless

7) After Training, what has been the improvement in your interpersonal relation with your peers

subordinates & Management?

Null

Least

Little

To some extent

To large extent

8) To what extent Training and Development helps you in -

i) improving in Productivity output

Null

Least

Little

To some extent

To large extent

ii) reducing Absenteeism rate

Null


Least

Little

To some extent

To large extent

iii) providing Any ground for innovations and creativity

Null

Least

Little

To some extent

To large extent

iv) improving Communication skills

Null

Least

Little

To some extent

To large extent

v) in Decision making

Null

Least

Little

To some extent

To large extent

vi) in Making team spirit

Null

Least

Little

To some extent

To large extent

9) Are you provided with regular, constructive feedback concerning your performance during

training of newly acquired abilities?

No


Least

Little

To some extent

To large extent

10) Is any system to check your performance in the implementation of the newly acquired abilities

after completing training programme?

No

Least

Little

To some extent

To large extent

11) Does the T&D programme help you to see the benefits you may achieve by completing

training?

No

Least

Little

To some extent

To large extent

12) Did your training helps you in solving the problems in your jobs?

No

Least

Little

To some extent

To large extent

13) Is the Training programme oriented to the specific needs of trainees?

No

Least

Little

To some extent

To large extent/fully


14) How much you are satisfied with Training and Development programme you have attended?

Satisfied

Very satisfied

Neutral

Dissatisfied

Very dissatisfied

15) What motivates you to complete your Training programme?

Increased career prospects

Increased job satisfaction

Chance to meet other

What to get back in to learning

Others

16) Are you satisfied the course content of Training?

No

Least

Little

To some extent


17) Did you know training objective before starting the Training programme?

No

Least

Little

To some extent


18) How was your learning experience?

i) From the point of view of your work situation

Relevant

Very relevant

Relevant to some extent

Least relevant

Irrelevant


ii) From the point of view of personnel growth

Poor

Fair

Good

Very good

Excellent

19) Time allotted to the Training & Development was

Too little

Little

Appropriate

Much

Very much

20) Drawbacks of Training & Development programme (if any)-

21) Any suggestions to improve Training process and make it more effective -
