Edp Project

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MINI PROJECT ON ENTREPRENEUR DEVELOPMENT AND PROGRAM

C H A P T E R

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INTRODUCTION TO ENTERPRISE

INTRODUCTION

HISTORY OF FIRM

SWOT ANALYSIS

INTRODUCTION

KEN ENTERPRISES PRIVATE LIMITED, a private limited company promoted by Bagdia Group, consisting of Mr.Hariprasad Bagdia and his two sons, was incorporated in June 1998, vide Certificate of Incorporation no. 25‐12572 issued by the Registrar of Companies, Pune as a Textile SME.

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The company is engaged in the business of weaving cotton and synthetic

fabrics, etc having its manufacturing facility located at Parvati Co‐op Industrial Estate, Yadrav‐416 145. The company was earlier a family running partnership firm and later on converted into Private Limited Company in 1998.

Situated in the heart of the Indian weaving industry at Ichalkaranji, Maharashtra, for over 3 decades, has helped the organization tremendously to build goodwill among a vast network of buyers, regular suppliers & its employees, which is the most vital asset to the group. Ken has also consciously built a network of associate fabric manufacturing units (also known as job workers’ in the industry parlance) who produce fabrics under complete guidance and adherence to Ken’s quality standards.

The Company has a unique blend of traditional skills and understanding of the textile industry along with qualified young and technology savvy professionals on the board of directors, bringing its customers contemporary professionalism in one of the most traditional business.

Today, KEN has earned itself a credible position as one of the fastest growing and the largest textile SME in the region because of its very competitive prices, timely delivery schedules and its rapid progress in quality assurance and human resource and development systems.

The present the production capacity of the company is six million square meters per annum. The company is running at 100% capacity utilization since its inception.

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History OF FIRM

Ken Textiles Private Limited was incorporated on 5th June, 1998 after being in existence as a family-run partnership firm for over two & half decades.

The firm has started with an initial investment of Rs. 45.6 Million of which Rs. 15 Million was promoters’ capital and Rs. 30.6 Million was taken as a loan.

Situated in the heart of the Indian weaving industry at Ichalkaranji, Maharashtra, for over 3 decades has helped the organization to build goodwill among employees, suppliers and a vast network of buyers. The firm is basically producing cotton fabrics for apparels, industrial & furnishing applications. And it has in-house capacity of 50 Sulzer Projectile Weaving machines. There are 125 workers and the annual turnover of the company is nearly about Rs. 240 million.

The major customers of the company are

The Bombay Dyeing & Mfg. Ltd., Mumbai,

Welspun India Limited, Mumbai

Lippert Unipol India Ltd.

And many more.

For starting the business there was no government subsidies provided. Also, there is no excise duty to be paid on the finished goods.

Vision: “To be the supplier of first choice for our customers”.

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SWOT Analysis:

STRENGTHS

Extremely competent team and strong organizational setup to execute bulk & value added orders.

Large, modern and cost efficient manufacturing setup.

Very good network in the industry and high credibility amongst large buyers.

Over 3 decades of experience and understanding of the textile manufacturing process.

Understanding of Customer needs and ability to service institutional customers.

In‐house 50 wider width Projectile & Rapier weaving facility.

Technically qualified & competent team to execute the orders.

One of the first and largest companies at Ichalkaranji to implement ISO 9001:2000 quality systems in this sector.

WEAKNESSES

× Plagued by general issues facing the decentralized industry as a whole.

× Textiles are a capital intensive business, hence large requirements of capital at low rates for growth.

× Not fully integrated in manufacturing compared to composite mills.

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OPPORTUNITIES

Global opportunities on the rise in cotton textiles and manufacturing shifting to India.

Large buyers preferring to outsource fabrics.

Highly scalable business.

Opportunities towards vertical integration for higher cost efficiency and scale.

THREATS

× Increased competition as very high investments begin done in this sector.

× Change in government policies on exports, subsidies & foreign exchange rate fluctuations.

× Inefficient infrastructure to compete globally.

× Ineffective & very poor labor policies, which add to the cost and make labor management very tough.

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C H A P T E R

II

COMPANY PROFILE

ENTREPRENEUR PROFILE

DIFFERENT DEPARTMENTS

FIRST EXPANSION

PRESENT STATUS

FUTURE PROSPECTS

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ENTREPRENEUR PROFILE

01. NAME OF THE ENTREPRENEUR : Mr. NIKUNJ BAGDIA

02. QUALIFICATION : B.E. (Textiles)

03. NAME OF THE COMPANY : KEN ENTERPRISES PRIVATE LIMITED

04. DATE OF INCORPORATION : 5th June, 1998

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_

_

ADDRESS

REGISTRED OFFICE

WORK ADDRESS

:

:

9/621, Industrial Estate, Near Kalyan Kendra, Ichalkaranji – 416115 (M.S.)

Plot nos. 47‐49 & 62‐64, Phase I, Sector F, Parvati Co‐op Industrial Estate, Yadrav 416145 (M.S.)

06. LEGAL STATUS : Private Limited Company 07. NATURE OF INDUSTRY : Textile SME (Small and Medium

Enterprise)

08. PRODUCT

:

Fabrics used in bed sheets & bed‐linen fabrics, Voiles Drills, Twills for garments, Dobby & Structured fabrics, Canvas for Industrial applications, Industrial work‐wear, Blended fabric used for Tyre cord applications after rubber coating, Strength specified cotton drills and ducks for military & defense applications etc.

09. AREA OF INDUSTRY : 45,000 Sq. ft.

10. PRODUCTION CAPACITY : Six million square meters per annum

11. MAJOR BUYERS : Bombay Dyeing, Ashima Dyecot Ltd., Alok Industries Limited, Welspun India Ltd, Indo‐count & Industries etc.

12. WORKING DAYS : 360 Days per Year, 3 Shifts

13. TURNOVER PER ANNUM : Rs. 240 Million

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DIFFERENT DEPARTMENTS

Departments play a very important role in any industry. Departmentalization is done on the basis of different functions. These departments are responsible for handling of materials which starts from handling of raw materials and end with transportation and logistics. Different departments in Ken Enterprises Private Limited are:

PRODUCTION/WEAVING DEPARTMENT:

Production department has undertaken the activity of production of the fabrics.

The production department is handled by workers which include 30 weavers, 3 helpers and 7 cleaners which are inspected by Mr. Sunil Pardeshi. There are 4 main technicians in the industry viz. Dhananjay Singh, Kannu Sabat, Vijay Kadam and Hrishikesh Yadav which is further supervised by Mr. Abhijeet Prabhavalkar.

BACK - UP FACILITY:

KEPL has a powerful and awesome back – up facility i.e., Diesel Generator. But as KEPL had only 38 looms in the year 2006-07, the firm purchased a generator which provides a back – up facility to seize 39 looms, 2 Air Conditioners of 10 hp each, 2 Compressors of 5 hp each along with general lighting up to 2 hp included in it. It possesses a power of 200 kVA (kilo Volt Ampere). It consumes 30 liters of diesel per hour. It has an in-build fuel tank of up to 500 liters. Other substitutes for the diesel are:

LDO (Liquid Diesel Oil),

SKO (Super Kerosene Oil)

But the genset engine requires small alteration for the consumption of the above fuels. These fuels are not easily available and they cost very high. This genset is assembled by the well-known brand Caterpillar, Mysore. The cost for this genset is Rs. 1.1 Million.

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FINANCE DEPARTMENT:

Finance department is handled by Sachin Mulay. Finance department includes accounting, preparing of balance sheets. It is done manually as well as computerized. The management team timely consults the chartered accountant Mr. S.K.Nibandhe.

STORE DEPARTMENT:

Store department is handled by Mr. Arvind Jadhav. It is divided into 2 main parts:

I. Raw Materials Storage.

II. Finished Goods Storage.

I. Raw Materials Storage:

Raw materials storage department is inspected by Mr. Abhijeet Prabhavalkar and handled by 4 persons, including helpers and employees per shift.

II. Finished Goods Storage:

Finished goods storage department is handled by 4 workers, 3 helpers and 7 cleaners to enhance the quality of the product. If any mistakes have been taken place during production of fabric, menders are responsible to rectify and correct those defects in the fabrics. In KEPL, the menders are hired on contract basis and are 4-5 in number per shift. Mr. Sudhir Patil is head of godown and stores department.

CLOTH CHECKING AND FOLDING DEPARTMENT:

This department includes 5 workers to handle it, under supervision of Mr. Keshav Gupta. Here, folding of cloth is done and is handled manually as well as automatically.

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FIRST EXPANSION

After the establishment of KEPL, the owner of the firm had decided to increase the number of Sulzer Ruti Looms at the existing factory at Parvati Co-op. Industrial Estate, Yadrav, under the same name of firm. Till then, the firm had 38 Sulzer Projectile Weaving Machines which were not sufficient to produce fabric in the required quantity i.e., the demand was much more than the actual production capacity.

As the demand for production of fabrics went on increasing, KEPL started facing problems of low capacity of production.

Thus, the main aim of expansion of 12 more Sulzer Ruti Looms in the year 2008 is that the firm can be able to maximize the production, profit and customers’ satisfaction.

PRESENT STATUS

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NO. OF LOOMSInitially, there were 38 looms, but then the firm diversified and added 12 more looms under the same name of the firm.

INVESTMENTThe firm has invested Rs. 14.4 Million for 12 newly added looms.

TURNOVERAnnual turnover of the firm was Rs. 240 Million.

PRODUCTION (in Meters)

Production in meters was 6.15 Million meters.

NO. OF WORKERSThe firm possesses 125 workers.

MAIN CUSTOMERS The Bombay Dyeing & Mfg. Ltd., Mumbai,

Welspun India Limited, Mumbai,

Lippert Unipol India Ltd.

MAJOR COMPETITORS ARVIND COTTSPIN PVT. LTD.,

ICHALKARANJI,

LOYAL TEXTILE MILLS, KOVILPATTI (TAMILNADU),

MOHATA MILLS, HINGHANGHAT,

HINDOOSTAN MILLS, KARAD/MUMBAI.

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FUTURE PROSPECTS

Ken has a unique business module which enables it to profitably exploit the tremendous product diversity on the textile value chain by skillfully combining its marketing and networking capabilities with its diverse manufacturing setup.

Ken is transforming itself from a pure fabric manufacturing company to a single point sourcing destination for all kinds of fabric requirements of institutional customers. Its strength is its very strong marketing network which is not dependant on any single product or market or customer.

It has a very diverse product range from fabric widths of 18” to 140” catering to:

Ready‐made Garment Exporters,

Domestic garment manufacturers,

Exporters of Home furnishings made‐ups,

Bed Linen & Sheeting manufacturers,

Domestic manufacturers of Shirting fabrics,

Shoe manufacturers,

Bags makers,

Industrial fabric manufacturers,

School uniform & institutional wears suppliers, etc.

Ken specializes in procuring orders of various qualities of fabrics and executes the same either at its in‐house manufacturing facility or at the associate weaving units (AWU) under its umbrella. Ken plans to increase its marketing effort from the current level of 10 million square meters per annum to 25 million square meters. Presently 6 million square meters is in‐house production while the rest is manufactured at AWU. Once the marketing reaches 20 million square meters, the company plan to create further in‐house capacity of 2.5 million square meters at the cost of Rs.50 Million.

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The company’s philosophy is to have an in‐house facility of around 50% to 60% of its marketing capability. This is the most capital efficient way for scaling up and growing further. Ken has identified ‘Technical Textiles’ as its growth driver for the future.

With a view to capitalize on the ever growing demand for ‘Technical Textiles’ and the limited knowledge and availability in the domestic markets, Ken is planning to add another 12 high‐end, pre‐owned imported Projectile looms for its proposed foray into ‘High‐performance Technical fabrics’.

The imported equipment will be on the same platform as its existing unit and will be using the latest generation of Projectile weaving mechanism from SULZER, Switzerland. Moreover, the machine will be equipped with double reinforcement mechanism or ‘2R’. This will provide the KEPL machines with unique ability to weave very heavy fabrics which cannot be woven on any other equipment installed locally.

The use of Projectile technology will help in reducing the overall cost of production at the same time there will no requirement of additional technical expertise and the same in‐house team will operate the new plant as well. This will also greatly cut down the start‐up time and the learning curve to operate the plant.

‘Technical Textiles’ is also a thrust area for investments under the Government of India’s ‘TUFS – Technology Up‐gradation Funds Scheme’. The investment will be eligible for one‐time 10% capital subsidy and 5% interest subsidy on the term loan component of the project.

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C H A P T E R

III

THEORETICAL BACKGROUND

INTRODUCTION TO ENTREPRENEUR

CHARACTERISTICS OF ENTREPRENEUR

MANUFACTURING PROCESS

INFORMATION ABOUT MACHINERIES

METHODOLOGY

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INTRODUCTION TO ENTREPRENEUR

An entrepreneur is very often considered as a person who sets up his own business or firm. He has initiative, drive, skill and spirit of innovation who aims at high goals. Entrepreneurs are action oriented, highly motivated individuals who take risks to achieve goals.

Entrepreneur creates wealth, generate employment and income and increase the standard of living of the people. Hence, the development of an entrepreneurial class is very essential for the economic growth of a country.

The sociological and environmental factors, job opportunities, mobility, support from parents, economic development and governmental policies help to create an entrepreneurial class to great extent.

Definitions:

Richard Cantillon: “An entrepreneur is the agent who buys factors of production at certain

prices in order to combine them into a product with the view to selling it at uncertain prices in future.”

Jean Baptiste:“An entrepreneur is one who combines a land of one, labor of another

and capital of yet another and thus produces a product. By selling the product in the market, he pays the interest on capital, rent on land and wages to labors and what remains is his profit.”

Entrepreneur is a person who tries to create something new, organizes factors of production and undertakes risk and handles economic uncertainty involved in enterprise.

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Four Key Elements Of Entrepreneurship Are:

Innovation

Risk Taking

Vision

Organising Skill.

CHARACTERISTICS OF AN ENTREPRENEUR

Entrepreneur is the person with a vision, with the drive and with the ability to bear risk. He is in the “spark plug” who transforms the economic scene. Following are some characteristics of an entrepreneur:

Hard Work,

Desire for high achievement,

Highly optimistic,

Independence,

Foresight,

Good organizer,

Innovative.

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MANUFACTURING PROCESS

INPUT OF WARP AND WEPT YARN

SIZING OF THE WARP YARN

WARP YARN CONVERTED INTO BEAMS

WEPT YARN IS SEND TO PERN WINDING MACHINE

BEAM AND PERNS ARE PROCESSED AND WEAVING IS CARRIED

MENDING, INSPECTION AND CHECKING OF FABRIC IS DONE

DISPATCHING

PACKING INTO BALES

CUSTOMERS

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ELABORATION OF THE MANUFACTURING PROCESS:

The raw materials needed for production of fabric from Sulzer Ruti Looms is mainly warp yarn and wept yarn which is purchased from Rajapalayam Mills, Nahar Industries Limited, Gangotri Textiles. Raw materials are brought weekly from the suppliers with a credit of 25 days through different logistic media like road transport viz. Navkar Transports, National Logistics & Transports, Shivshakti Transport, etc. All the above suppliers belong to Ichalkaranji.

After the above step, sizing on this warp yarn is performed. This process is carried outside the firm.

This sized warp yarn is converted into beams.

The purchased wept yarn is sent pern-winding and pern is created.

Thus, the beam and perns are processed under Sulzer Ruti Looms and weaving is carried.

After weaving, these looms produce the cloth in various varities.

After the production of cloth, mending, checking and inspection is carried out manually.

After inspection, folding of cloth is done with the help of both folding machine and manually.

And at last, folded cloth is packed into bales and then dispatched with the help of transportation.

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INFORMATION REGARDING MACHINERIES:

1. SULZER RUTI LOOMS:

The length of one Sulzer Ruti Loom is 236” and the speed of this machine is 225 – 300 rpm and 36” – 148” cloth can be produced with the help of this machine. The looms were imported from different countries viz. Japan, Tunisia, U.S.A., Italy and Romania which are assembled in Switzerland. Each machine was purchased 2nd hand with varying price of € 7000 to € 30,000 as the new machine costs € 100,000.

For the production of fabrics, other than Sulzer Ruti Looms, other major supporting machines which are used are as follows:

2. DUCTING PLANT:

Ducting plant is used for humidity control in the production and weaving department. This machinery is purchased from Duratech Engineering Quota and the investment for this machinery is Rs. 4.8 Million.

The textile requires dump climate for the production of fabric; but in this production area dump climate is not available. Therefore, artificial dump climate is created with the help of ducting plant.

3. PERN WINDING MACHINE:

For creating perns from wept yarn, pern winding machines are used. KEPL possess 3 pern winding machines which are purchased from Mumbai.

4. FOLDING MACHINE:

After inspection and mending of cloth, folding is carried out with the help of folding machine. Also, folding is done manually. There are 3 folding machines which costs Rs. 41,000 each.

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METHODOLOGY

Methodology helps us to furnish the project report with significant facts and information about materials management process in short period of time.

There are two types of data available for the preparation of project which is:

Primary

Secondary

Primary:

Primary data means the first hand data about the company’s working environment, availability of raw materials and information about the production process which is corrected from personal discussions with management team, HR manager and supervisors of the firm, personal interviews of workers.

Secondary:

Secondary data is the data collected from different sources other than primary sources. The secondary data such as company profile, sales data is collected from the company’s internal reports and records. The theoretical background for the project report is collected from the sources like company brochures, internet, etc.

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C H A P T E R

IV

FINDINGS AND OBSERVATIONS

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FINDINGS AND OBSERVATIONS

KEN ENTERPRISES PRIVATE LIMITED is one of the major fabric producing units of Ichalkaranji, which has its own 50 Sulzer Ruti Looms. KEPL is famous for its quality fabric at competitive rates. Besides that, it is also famous for its fair dealing in the market.

Entrepreneur structured the organization in highly formalized and centralized way. Departmentalization is done on the basis of different functions. Every employee clearly knows his responsibility and authority, which is why the jobs are well-defined. In KEPL, every employee or authority has a willingness to work hard for business. There is good co-operation between sales order and production schedule, which is why an order never gets late. One of the major finding was that, there is zero wastage in the fabrics produced, as it is also properly utilized for some other uses.

Previously there was less emphasis on the promotional activities but now the entrepreneur is very much concerned about it. But there is still long way to go.

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C H A P T E R

V

SUGGESTIONS AND CONCLUSION

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SUGGESTIONS and CONCLUSION

We feel that there is a vast scope for the business. Therefore, there is strictly a need for entrepreneur to focus strategically to face the present intense competitive situation. The market for textile products is becoming more competitive every year. The customers are emphasizing on quality over all other things and easily search for the most cost effective supplier anywhere in the world. Keeping this in mind, KEPL should focus on meeting its customers’ demands and requirements, improving its competitiveness, increasing productivity and enhancing its existing quality control systems.

The firm can use advanced machines of Projectile Weaving Technology for the production of fabrics. This would, in turn, increase the speed of production, quality and variety of the fabric. Labors needed to be trained and skilled a little more in order to enhance the quality of the fabrics. The handlers of the inventories need to be trained with some more skills for better handling of the materials which may further help KEPL to reduce the overall production cost.

The firm can go for sizing unit as their next expansion stage.

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C H A P T E R

VI

BIBLIOGRAPHY

BIBLIOGRAPHY

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Personal Interview of the entrepreneur, Mr. Nikunj Bagdia,

Raw data of KEPL from primary and secondary sources,

Entrepreneurial Development – S. S. Khanka

WWW.GOOGLE.CO.IN ,

http://WWW.GOOGLE.CO.IN/

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Edp Project