CHAPTER-1(INTRODUCTION OF COMPANY)11

about Chenab Textile MillsChenab Textile Mills, having more than four decades of experience and expertise in manufacturing spun yarn, is one of the flagship unit of Sutlej Textile and Industries Ltd. and a part of the world renowned K K Birla group. From the very beginning CTM focused on customer need which laid the foundation for success year after year.

Starting with cotton yarn and 100% viscose yarn, CTM diversified into quality synthetic blended yarn in wide range of dyed shades, investing in the most sophisticated machines and technology by installing Blowroom (Trumac, LMW),Card (Crosrol of UK, LC-300A of LMW, DK-800 of Trutzschler),Draw frame, D-35 of Reiter, LRSB of LMW, TD-03 of Trutzschler), Comber, LK-54 & LK-64 of LMW), Ring Frame (LMW & KTTM), Polar & Orion Auto-coners from Savio Italy equipped with Uster quantum clearers and TFO from Prerna and Vijay Lakshmi. Some of the highlighted aspects of CTM are Biggest single location spinning mill to produce dyed yarn in synthetic as well as cotton. Unit is equipped with most modern and state-of-the-art machinery and testing instruments. All spindles are less than 10 years old. Having ISO-9001-2000, Usterized, Oeko-tex and GOTS/ EKO & Organic Exchange certifications. Also practicing SAP Managed by committed team of highly qualified and experienced professionals Strong R & D and Quality assurance team highly responsive to customer needsChenab Textile Mill is one of the leading company in the textile industry. This company is situated in the mid heart of beautiful city Kathua. Chenab Textile Mills, equipped with most modern and state of the art textile machines and sophisticated quality control equipments, started its operations in 1978 and today is well established and known for its quality products. Mill's strength lies in its trained and dedicated workforce and continuous upgrading of human resources skills. It has been selected by the Government of Jammu & Kashmir for the special award for its contribution towards generation/promotion of employment in the State and contribution to State revenue. At present this Mill is divided in 10 units running with the capacity of 170000 spindles Approx. This will be producing 110 tonne of yarns per day. The main production of this mill is synthetic yarn (Polyester, Acrylic, Viscose, cotton, cotton mlange, polyester\acrylic yarn, viscose\acrylic yarn, polyester/viscose yarn, acrylic/cotton yarn & viscose/cotton yarn) as well as cotton yarn. This mill is fully determined to get ISO-9002 certificate for quality. This mill is equipped with high production machines of latest techniques. This mill is on the path of progress by its slogan:-"WORK IS WORKSHIP

HistoryChenab Textile Mills (CTM) being the largest and Oldest industrial unit of J & K stands proud member of this group. It was set up at Kathua in 1962 with initial capacity of 12,600 spindles with first foundation stone laid by LateJenab Bakshi Ghulam Mohammad, the then Prime Minister of J&K on 12th October 1962. Since then mills has been continuously investing on modernization and expansion of capacities.The Mill has capacity of 1,70,600 spindles as on 31st March,2012 producing Synthetic blended Grey & Dyed Yarn, Cotton Dyed & Melange yarn.CTM Has created direct employment avenues to over 9000 persons and thousands others as indirect employment and has been contributing to the cause of economic development and creation of environment of industrialization in the state.OUR FOUNDERS

Late Dr. K K Birla - Chairman Emeritus{1918 - 2008}Krishna Kumar Birla was a noted Indian industrialist of the Birla family, and the second son ofGhanshyam Das Birla. He also served as a Member of the Rajya Sabha. Birla was one of the industrialists who supported economic reforms in India in 1991Industrialist, Parliamentarian, Educationist, Writer, Philanthropist. Above all a humanist. Dr.Krishna Kumar Birla Chairman Emeritus, left for his heavenly abode on 30thAugust,2008.Dr.K.K.Birla (Doctor of Letters Honoris Causa) was a member of the Rajya Sabha for three successive terms from 1984-2002. He had also served on Board of SBI, ICICI and as a President of FICCI, Indian Chamber of Commerce, Kolkata, Indian Sugar Mills Association, Sheriff of Kolkata and also Member of Shri Mata Vaishno Devi Shrine Board. He was trustee of Birla education trust, which runs number of Institutions like B.I.T.S (a deemed University) at Pilani.Activities of the company:

1)Spinning:Sutlej is the biggest producer and is one of the largest exporters of valueaddedsynthetic and blended dyedspun yarn in the country. It is also one of the prominent manufacturers of cotton and cotton blended dyed and melange yarn in the country.Sutlej isa onestopshop for all types of spun yarns for its customers because of a broad product range. The company is a pioneer in developing a large number of blends and shades to meet the ever changing requirement of its customers.

2)Weaving:Sutlej manufactures woven fabrics, which are mainly used for suiting and trousers. Sutlej strength to offer a vast product range stems from its ability to blend various yarns to ensure the right texture, style and above all, the right valueformoney products to its clients. It has stateoftheart technology with computer aided designing equipments, enabling wider range of design executed with precision, ensuring wider choices and lower.

3)The Home Textiles Project:The Home Textiles project has started commercial production since July 2006 to produce 1.8million metres of home furnishing fabrics per annum. The product range comprises furnishing fabrics and madeups of Jacquard and Dobby weaves of various types of fibre like cotton, polyester, rayon blends, chenille, flax, silk, jute, linen and other blends.The product range also includes curtain fabrics, upholstery fabrics, seats and seat covers; mattress covers, bed spreads and covers; quilts and quilting materials; table linen and kitchen linen, etc. It offers further valueadded fabrics in terms of hand painted fabrics and embroidered fabrics.

4) Garments:The garments production unit hascommenced commercial production in October, 2006 with a capacity of 1.5 million trousers per annum.Vision and Philosophy To become a world-class mill in manufacturing all kind of dyed Spun Yarn To give highest priority to customer satisfaction. To grow globally through cost competitiveness and excellence in quality To fulfill aspiration of employees, financers and of the society in general To up-to-date production facilities and technology continuously. To develop new varieties of yarnProductsChenab Textile Mills has a large verities of Ring Spun Yarn counts ranging NE 8 to NE 72, in both Raw white, Dyed and Melange.100% COTTON YARN

100% ACRYLIC YARN

100% COTTON MELANGE

100% POLYESTER YARN

100% VISCOSE YARN

OTHER MISC BLEND

Organisation StructureOrganization is a group of persons working together to achieve a common goal. Organization indicates conscious combinations of systematic arrangement of various resources in the term 6 Ms Men Machine Material Money Management information MarketingAn organization structure means establishment of a hierarchy according to the authority and responsibility. Every decision of work has to follow the channel and no activity of anenterprise can go out of it.A BRIEF REVIEW OF ALL DEPARTMENTSThe Chenab Textile Mills is spread of canals, has been acquired on lease basis for a period of 99 years. It has been functioning smoothly and employs about 9000 workers and 750 staff members.Chenab Textile Mills has the following departments; Marketing Department Sales & Excise Department Financial Department Raw Material Department Time Office Department Store Department Human Resource Department IT (Information Technology) Department Budget & costing Department Typing Department Report Section Process House Spinning Quality Control Department General Department Finishing Department Finishing Cotton Department Finishing Maintenance Department Mixing & Waste Department Building & Engineering Department Outstation Staff Department Watch & Ward Department Other Subordinate Departments.

Achievements: Chenab is the biggest producer and is one of the largest exporters of valueaddedsynthetic and blended dyedspun yarn in the country Itis alsoamongst few exclusive spinners in India for specialty yarns such as Modal, Lyocell and Tencel in the country. The company has emerged as a preferred supplier of fabrics on account of its colours, blends, textures and finishes in more than 26 countries. Chenab started a pilot plant in the fourth quarter of 20052006 to test market its products. The trousers produced and exported have been well received. Chenab is expanding its capacities to produce suits and blazers, as well.Values: CARE: -Giving back to the society, servicing the community and providing respectful conduct to the public and our peers. CRAFT: -Treating the science of textile yarns with dedication and reverences of an art form, we believe in our work as a merger of technology and craft. COMPETENCE: -For us, our customers comes first. Giving them the best in class product maximum output and most convenient schedule.

Overview:

Chenab has emerged as a sustainable profitmaking company in a cyclical industry. In the cyclical business of textiles manufacturing and marketing, success is derived from the ability to remain liquid and profitable across all industry cycles.The Company vindicated its longstanding business strategy in 201213. It reported a 9.32% increase in topline and a 142.58 % growth in its profit after tax. This positive divergence indicates that the Company was one of the quickest to respond to the sectoral improvement, with profitability increasing faster than revenue growth. This volumevalue play vindicates the Company's enduring strategy ofinvesting during sectoral downtrends and capitalising on the sectoral rebound.The year 201213 was marked by declining growth the world over. The growth in the World Gross Product (WGP) was estimated to be 2.3% in 2012. Many large developing countries including Brazil, China and the Russian Federation, saw a significant deceleration in GDP growth in the past two years. This deceleration was attributed to a combination of weak external conditions and domestic impediments.India was no exception. The Indian economy, Asia's thirdlargest, slowed sharply to 5% in FY 201213 from the scorching growth notched a few years ago due to a string of factors including high inflation, high interest rates, decelerated global economy, delay in project implementation, policy logjam, industrial growth slump, declining business sentiment and high current account deficit. In 201213, farm sector grew 1.9% and manufacturing sector grew 1% compared with 3.6% and 2.7% respectively in 201112.Despite this challenging scenario, Chenab strengthened its performance in 201213 through the following achievements:9.32% growth in topline to Rs. 1,680 crore142.58% growth in bottomline to Rs. 77 crore5.58% growth in EBIDTA margin on capital employed to 23.20%3.5% growth in average yarn realisation to Rs. 207 per kgCountering challengesThe global textile industry was affected by volatile raw material and finished goods prices, result was that the exchange rate fluctuations, increase in costs and inconsistent governmental policies. The Indian market also witnessed a decline of 7.2% (April, 2012 to January, 2013) in textile exports over the corresponding period in the previous year.The Indian storyThe demand for textile and clothing is on the rise globally with the Indian market on the forefront. Despite the upheavals which we have witnessed globally and within India, the state of Indian textile and clothing industry has remained strong and it will continue to become stronger owing to the burgeoning domestic market.The catalyst for the Indian economy will be increasing consumption rates. Much of the demand in Asian countries comes from exports to the developed world, while in India most demand is based on domestic consumption growth.Considering that Indian GDP will continue to remain upwards of 6% and India having the world's largest population below the age of 40 years and having significant purchasing power, the business opportunities will touch new echelons. The growth of our economy and the rising desires and aspirations of the Indian youth will ensure that the demand for textile and clothing keeps on surging year after year.