SIP Final Docx

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ORIENTAL INSTITUTE OF MANAGEMENT

A

Summer Internship Project Report

on

Submitted by:

NILESH PANDEY

MMS

Batch 2012-14

Under the guidance of

Mr. Sachin Sodani

(C.A.)

(Accounts Department)

RSWM Limited

Faculty Guide

(Prof. Ankita Srivastava)

1



DECLARATION

I hereby declare that the project work entitled “RE-EMERGENCE OF TEXTILE

INDUSTRY AFTER RECESSION

“submitted to “Oriental Institute of Management, Vashi, Mumbai-4000703 “is a record of

an original work done by me under the guidance of “Mr. Sachin Sodani“and this project work

is submitted as a Part of my Research Work Done During my Summer Internship. The results

embodied in this report have not been submitted to any other University or by any other

Student.

Nilesh Pandey

2



CERTIFICATE

This is to certify that Mr. ANKIT Nilesh Pandey student of second year Masters of

Management Studies (MMS) of Oriental Institute of Management Studies has successfully

completed the project work titled “ RE-EMERGENCE OF TEXTILE INDUSTRY, AFTER

RECESSION”

This project is the record of authentic work carried out during the academic year 2012-2013.

Date: _________________

Prof. Ankita Srivastava Prof. Dr. P.K. Bandgar

(Internal Project Guide) Director

Oriental Institute of Management

3



ACKNOWLEDGEMENT

It gives me pleasure to present this project report, which is an outcome of the study “ RE-EMERGENCE OF TEXTILE INDUSTRYAFTER RECESSION

.” for RSWM Ltd.

Completing a task is a never a one-man effort. It is often the result of valuable

contribution of a number of individuals in a direct or indirect manner that helps on

shaping and achieving an objective.

I wish to express my sincere gratitude to innumerable number of people who have been

associated with me throughout this project. I feel blessed to have the opportunity of

expressing my hearty gratitude to the following personalities, without the help of whom my

project could not have been hatched.

Source of firstly I would like to acknowledge my sincere thanks to Mr. Sachin Sodani

(Accounts Department), Angel Broking Mumbai who gave me an opportunity to carry out

this project and had been a constant inspiration

I am grateful to my faculty guide Prof. Ankita Srivastava (Faculty at Oriental Institute of

Management) for the Summer Internship Project, for their regular guidance without which

my project report would not have been completed.

I am also thankful to the other staff member of Angel Broking ltd. for their continuous

motivation throughout this program, which really helped me in completing this project.

I have no words to express my indebtness for the ungrudging and unfailing co-operation of

my parents. Finally I want to thank all the friends, colleagues for their constant co-operation,

encouragement, help and support throughout the study without which this work would not

have been possible.

Ankit Singh.

4



TABLE OF CONTENTS

Sr.No. Contents Pg. No

1 Executive Summary

1.1 Industry Profile

2. Company Profile

2.1 Background and Inception of the Company

2.2 Nature of the Business Carried

2.3 Vision, Mission and Company Policy

2.4 Products And Services

2.5 Area of Operations

2.6 Ownership Pattern

2.7 Competitors Information

2.8 Achievements and Awards2.9 WorkFlow Model

3.0 Mckinsey’s 7S Frame Work

4.0 SWOT Analysis

5.0 Analysis of Financial Information

6.0 Learning Information

PART B

EXECUTIVE SUMMARY

Rajasthan Spinning & Weaving Mills Limited (RSWM) is the core business company of

L.N.J Bhilwara group. RSWM is a major producer of blended yarns & specialty fabrics. It

produces different variants of blended yarns like P/V, P/C, cotton and mélange.

The primary objective of this project was to study “re-emergence of textile industry after

recession “and its impact on RSWM Limited. The finding of the study reveals that wheneconomic activities across the world have declined sharply, driven by the decline in

5



consumption and exports. In the past few years, around half of the total production of textiles

and garments in India has been exported; 60% of it to markets in the US, Japan and the

European Unions. The recession in the West had adversely impacted the Indian textile

industry. Due to low demand, competition, steep forex fluctuation, high cotton procurement

prices, high interest rates resulted in high cash flow outside. So despite rise in turnover there

has been decline in the companies’ financial performance during 2008-2009, the highlights

are:

• Net revenues from operations increased to Rs.1, 293Cr (20080-2009) from Rs.

1168Cr (2007-2008).

• Operating profit declined from 121.6 to 77 Cr in 2008-2009.

• Financial expenses increased from 43.8 to 68 Cr.

Another, important findings is that in spite of RSWM product being slightly costlier than

the industry rates, the clients do not mind paying this premium ,because of the superlative

quality of the products and services.

RSWM is a preferred supplier over its competitors as the clients perceive the organization

as being highly reliable, passionate about its service the personnel practice excellence as a

core value.

RSWM follows “Market Differentiation Strategy “where the clients are retained over a

period of years because of superior Quality of products & the brand name of the

company.

The pre and post sales services of RSWM both are perceived as “above average by most

of the clients. The maximum revenues are generated from sales of p/v & p/c yarns.

PART A

Industry Profile:

PROFILE OF TEXTILE INDUSTRY

1.1 Historical Background

6



The Indian textile industry has a great legacy, which is perhaps unmatched in the history of

India’s industrial development. India’s textile industry evolved and developed at a very early

stage and its manufacturing technology was amongst the best. Prior to colonization, India’s

manually operated textile machines were among the best in the world, and served as a model

for production of the first textile machines in newly industrialized Britain and Germany.

Indian textiles were sought after for their finesse, quality and design. According to Chouta-

Kuan, the Chinese observer preference was given to the Indian weaving for its and delicacy’

Prestige trade textiles such as Patola from Patna and Ahmedabad, coast were sought after by

the Malaysian royalty and wealthy traders of the Philippines. Textiles have historically

formed an important component of India’s exports. Marco Polo’s records show that Indian

textiles used to be exported to China and South-East Asia. Textiles have also comprised a

significant portion of the Portuguese trade with India. These included embroidered

bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground.

The attractiveness of the fast dyed, multi-colored Indian prints on cotton (chintz) in Europe

led to the formation of the London East India Company in 1600, followed by Dutch and

French counterparts. By the late 1600s there was overwhelming demand for their

governments to ban the import of these cottons from India. The legacy of the Indian textile

industry stemmed from its wealth in natural resources silk, cotton and jute. The textile

industry stemmed from its wealth in natural resources silk, cotton and jute, the technology

used was superior and the skills of the weavers gave the finished product a most beautiful and

ethnic look. The Indian textile industry with such a great pedigree could have gone only on

way from here. But same did not happen.

COMPANY’S PROFILE

ABOUT COMPANY:

7



it was founded by Mr. Laxmi Niwas Jhunjhunwala (LNJ) in 1961.LNJ Bhilwara group has

emerged as one of India’s leading corporate houses, in last four decades.

• Core business companies: LNJ Group is a multi product conglomerate with a global –

presence and with business interests spanning a diverse range of industries –like:

• Textiles:

8

http://www.bmdonline.net/

http://www.bslltd.com/

http://www.maraloverseas.com/



• Power Generation:

• Graphite-Electrodes:

• Information-Technology and IT –enabled services

•Sponge-Iron.

The Group has successfully integrated its operations into today’s Global – Economy, with

export earnings compromising over 46% of total revenues with over 20,000 employees and

17 production units strategically across the country.

9

http://www.malanamodelhep.com/

http://www.hegltd.com/





LNJB as a Brand: LNJB group holds leadership in textile industry .it `s popular Brand in the

market are

Mayur Suiting,

BSL Suiting

La Italia Fashion’s,

Geoffrey Hammond superfine suiting,

Buddy Davis Leisurewear.

The pioneering textile industry of the group is not only a key player in the industry but

also has many first to its credit. The textile division has the sole distinction of producing a

unique fire retardant yarn called Trevira CS (now known as Len zing, Austria).it is also

the sole licensee for the highly specialized yarn called Tencel. The group has been

acknowledged for its world class quality products.

Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS / ISO

9001 : 2000 certification for setting exemplary standards in quality.

Background and Inception of the Company

Rajasthan Spinning and Weaving Mills (RSWML) was incorporated in 1960. It was

promoted by the Bhilwara group which has interests in various group companies. The

10

http://www.svtgroup.in/images/brands/bsl.jpg



company is managed by Chairman L N Jhunjhunwala and Vice-Chairman and Managing

Director Shekhar Agarwal. RSWML came out with a Rs 157 cr Euro-issue in 1994 to finance

its ambitious plans to increase spindleage by 18,800, add 24 looms at each of the units and to

set up a process house at its Banswara unit with a capacity of processing 156 lac mtr of fabric

pa. The product-mix of the company includes blends like polyester/viscose, 100% viscose,

100% polyester, polyester sewing threads, 100% acrylic, polynosic blends, silk blends,

viscose/flax, polyester/cotton, 100% cotton melange yarn. In 1993-94, it signed a MoU with

Hydro Quebec International, Canada, to implement 86 MW Malana and 192 MW Allain

Duhangan projects in Himachal Pradesh. It markets its products under the well-known Mayur

brand in India and exports its products to the European and the US markets. It has opened

marketing offices in Italy, Belgium and the UK. During 1997-98, Bhilwara Melba De Witte

Ltd, a joint venture project promoted by the company with Australian and Belgian partners,

has established its leadership in the market for automotive furnishing fabric. In 1998-99, it

increased the installed capacity of spindles and looms to 1,31,376 nos and 157 nos

respectively and commissioned 4.2 MW each of power plant for captive consumption. Term

loan upto Rs. 24 crores has been sanctioned from PNB for Yarn Dyeing project at

Mandpam,Looms at Gulabpura and the modernisation scheme has already commenced. The

Board of the company has approved for acquiring Rishabhdev Textile Mills unit of HEG Ltd

and it was acquired with effect from 01.04.2003. The 2.8 MW at Mandpam at cost of Rs.

10.00 crores was installed in 2002-03 and operations has commenced during the year itself.

RSWM is an IS/ISO 9001:2001 and SA-8000:2008 accredited Company, which moved from

strength to strength and today, the largest manufacturer and exporter of synthetic spun yarns

from India. RSWM has built one of the most impressive textile manufacturing infrastructures

in the country: 8 state-of-the-art manufacturing plants; 4,10,000 spindles; 190 looms;

1,20,000 MTA yarn capacity; 30 MMA fabric capacities, including denim fabric. The

Company also owns a fabric process house at Mordi (Rajasthan).

RSWM is self-reliant in captive power generation of 46 MW that feeds to its integrated units

spread across the state of Rajasthan, located at Kharigram, Banswara, Mordi, Mandpam,

Rishabhdev and Ringas.

The main competitive strength of the Company is its innovative product range that includes

specialty, functional and technical yarns and fabrics. The Company recently has shifted its

11



focus to produce more and more eco-friendly and natural textiles in order to meet the

emerging needs of the market.

RSWM exports its range of yarn and fabric to over 73 countries worldwide.

The Company holds the prestigious ‘Golden Trading House’ status and, has received Export

Awards from the Synthetic and Rayon Textiles Export Promotion Council for several years.

The Company is a recipient of the “Rajiv Gandhi National Quality Award” received twice

from the Bureau of Indian Standards and many more quality certifications.

One of the leading brand from RSWM, `Mayur Suitings’, enjoys high brand equity in its

target segment in the country.

Nature of Business

1. To carry on the business of manufacturing, buying, selling, importing, exporting and

dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester,

worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or

merchandise whether textile felted, netted or looped.

2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated

fabrics, textiles, hosiery and silk or merchandise of every kind and description and other

production goods, articles and things as are made from or with cotton, nylon, silk, polyester,

acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any

process, whether natural or artificial and by mechanical or other means and all other such

products of allied nature made thereof.

Vision of the Company

12



Our Vision is to forge Ahead into the New Millennium with an Immediate sense of

Purpose and to be Seen as a Undisputed Leader, fully occupied to deliver the

best.

Business Philosophy

• Ethical practices & transparency in all our dealings

• Customers interest above our own

• Always deliver what we promise

• Effective cost managementQuality Assurance Policy

We are committed to being the leader in providing World Class Product & Services which

exceed the expectations of our customers Achieved by teamwork and a process

of continuous improvement

CRM Policy

A Customer is the most important visitor on our premises. He is not dependent on us but

we are dependent on him. He is not interruption in our work, but is the

Purpose of it. We are not doing him a favour by serving. He is doing us a

favour by giving us an opportunity to do so

13



14

Products and Services of RSWM LTD.

RSWM offers one of the broadest range of products in terms of fibre blends, counts and

shades. Fibres possessed by the Company include polyester, viscose, acrylic, cotton, wool,

rayon, silk, polyamide and linen. In addition the Company produces a range of speciality

products made out of both unorthodox fibres i.e. soya, protin, bamboo, and branded fibres

such as tencel and lycra

RSWM manufactures a range of blended suiting fabric and has a significant presence in the

domestic market with its Mayur brand. Apart from this, this segment includes a fabric

processing plant in Mordi (Rajasthan). The Company believes that there is a huge potential

for this business in the new market scenario and has plan to stratigecally move to the higher

value added products in fabric.

RSWM ventured into Denim Fabric manufacturing business in line with strategy to move to

higher value-added segments for wider based growth in the future. The Company has plant

to focus on producing high-end Speciality Denim fabric which has better realization and

demand in the international market. Keeping pace with the changing time, the company is

working closely with leading International Consultants to manufacture the finest products.



Area of Operation of RSWM Ltd.

1. To carry on the business of manufacturing, buying, selling, importing, exporting and

dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester,

worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or

merchandise whether textile felted, netted or looped.

2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,

stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated

fabrics, textiles, hosiery and silk or merchandise of every kind and description and other

production goods, articles and things as are made from or with cotton, nylon, silk, polyester,

acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any process, whether natural or artificial and by mechanical or other means and all other such

products of allied nature made thereof

The Shareholding Pattern of the Company as on 31st December 2012 is as Follows:

Shareholding Pattern - RSWM Ltd.

Holder's Name No of Shares % Share Holding

Promoters 6971884 30.12%

GeneralPublic 5866402 25.34%

ForeignPromoter 4934770 21.32%

OtherCompanies 2898120 12.52%

NBanksMutualFunds 1661008 7.18%

FinancialInstitutions 769953 3.33%

Others 44720 0.19%

CentralGovt 1732 0.01%

ForeignInstitutions 100 0%

15



Competitor’s Information:

Major Players in the Region

Raymond’s

Reliance textiles

GokaldasShari exports

Arvind mills

K. Mohan exports

and BSL limited.

Achievements and Awards

The coveted ISO 9001-2000 Quality Management System Certification was received in

January 1997, which speaks volumes about the Company's.

RSWM is the winner of SRTEPC Highest Export Award for polyester / viscose yarn

exports for the last 13 years

RSWM bagged ‘The 2007 Excellence Award for Financial Performance and Analysis’

instituted by Rajasthan Chamber of Commerce & Industries, Jaipur

RSWM’s Rishabhdev unit bagged National Export Award, and the SRTEPC Excellence

award for highest production in export of 100% Polyester Spun Yarn

An advanced machinery repertoire from world leaders, ensures flawless quality and more

versatility at each and every stage.

Rajiv Gandhi National Quality Awards Commendation certificate in Large Scale Textile

Industry to Banswara and Kharigram unit in year 2006 and year 2007 respectively.Our Banswara plant certified for producing and selling Organic Cotton yarn from "Control

Union Certification" (formerly known as SKAL)

Certificate of "Global Organic Textile Standard" (GOTS) for producing and selling

100% Organic Cotton yarn to our Banswara plant.

Certificate of "Organic Exchange" (OE)for producing and selling Blended yarns with

Organic Cotton to our Banswara plant.

Certificate of SA-8000 speaks that all the material produced by the RSWM Ltd. by

respecting the environment and ethical values for our Banswara unit.

16



Certificate of Fair Trade from Fair Trade Labelling Organisation for producing selling

100% Fair trade cotton and its Blended yarn, for Banswara unit.

Certificate of Global recycle standards (GRS) for producing selling the recycled cotton

and Blended yarn with and without recycled man made fibers.

Having Oekotex standard 100 certiifcate for most of the products

WOKFLOW MODEL

Buyer visits

chooses and place

a order

Samples checked

and sent to buyers

for approval

NO

YES

Buyer places order

for his requirement

17

Quality and

quantity check of

fabric

Laying& cutting

Suggested corrections

incorporated;

samples resubmitted if

buyer insists

Marking and

numbering

Appro

v -ed



Collection of

fabric/accessories

from ware

house /main

stores/receive

from supplier

Tagging,

labeling, Final

checking

Pre production

sample approval

Packing and

Dispatch

The workflow model of RSWM Ltd.limited starts with the buyer’s intent to visit the

showroom and places order and the approval for the same order is done through pre

production approval. The collection of fabric against the material requisition slip and quality

and quantity check of fabric is done at fabric department. Once the material is checked it

passes to various departments which consist of inline quality assessment .Finally the finished

products are checked and packed in the package department for order delivery and the same

will be passed into warehouse.

18

Sorting ,Sewing

and Ironing



3. Mckensy’s7s frame work with special reference to organization under study

McKinsey’s 7S Framework:

The 7-s frame work of Mc-kensy`s is a management model that describes how one can

holistically and effectively organize a company. Together these factors determine the way in

which a corporation operates. Managers should take into account all seven of the factors to be

sure of successful implementation of a strategy- large or small. They are all independent, so if

you fail to pay proper attention to one of them, it can bring the others crashing down around

you. On top of that, the relative importance of each factor may vary over time.

Those seven elements are distinguished in so called hard S’s and soft S’s. The hard elements

are feasible and easy to identify. They can be found in strategy statements, corporate plans,

organizational charts and other documentations. The 3’s across top of the model are described

as “Hard S’s”

Strategy: Thy direction and scope of the company over the long term.

Structure: The basic organization of the company, its departments, reporting lines, areas of expertise and responsibility.

19



Systems: formal and informal procedures that govern everyday activities covering everything

from management information systems, through to the systems at the point of contact with

the customer

The 4’s across the bottom of the model are less tangible and more cultured and were termed

as soft S’s by Mc-Kensey

Skills: the capabilities and competencies that exist within the company what it does best.

Shared values: the values and beliefs of the company ultimately they guide employees

towards valued behavior

Staff: the people resources and how they are developed trained and motivated.

Style: the leadership approach of top management and the company’s overall operating

approach.

20



SRUCTURE:

Board of

directors

Director

Sourcing and

development

Director-

Marketing&

Imports

Director(Gen.,

admin,finance

&logistics)

Director

Marketing

Director

Production

Manager

internal

audit

Manager

sampling

production

Manager-LC

payments&

cargo

clearance

Head of

dept:

Personnel

IT

Manager

s

Various

departmen

ts.

Asst. manager

network

admin

System

analyst

Network

admin

EDPassistants

Programmers Supportstaff

Directors(sourcing

and Development)

21

Purchase

manager(accessories)

Production

Coordinators

Quality control

managers

AssistantsManufacturing

units

Quality

controllersF1 F2A F2B F3 F4



Manager(sourcing

and

Development)

Purchase

manager

Fabric

Manager

fabric

godown

Manager

sampling

Manager

sampling

godown

Laboratory

assistant

Purchase

manager

fabric

Fabric

inspector

Merchandisers Assistants

Godown

assistants

STRUCTURE:

Business needs to be organized in a specific form of shape that is generally referred to as

organizational structure. Organizations are structured in a variety of ways, dependent on their

objectives and culture. The structure of the company often dictates the way it operates and

performs. Traditionally, the businesses have been structured in a hierarchical way with

several divisions and departments, each responsible for a specific task such as human

resources management, production or marketing. Many layers of management controlled the

operations, with each answerable to the upper layer of management.

VARIOUS DEPARTMENTS:

This is to know that the function of Gokaldas exports limited control has been clubbed for the

following department.

1. Marketing department

2. Finance department

3. Personnel department

4. Planning and control department

22



5. Production department

A) Merchandising department

B) Sampling department

C) CAD department

D) Cutting department

E) Sewing department

F) Quality department

G) Finishing department

H) Packaging department

MARKETING DEPARTMENT:

Products are well accepted in India as well as foreign markets and focusing more

clearly on the future to ensure long growth and leaping towards market leadership.

The objective of all economic activities is for the satisfaction of human needs.

Marketing is a process of planning and executing the conception, pricing, promotion

and distribution of ideas, goods and services to create exchange that satisfy individual

and organizational objectives.

Functions of marketing department:

1) Analyze various market opportunities and threats.

2) Collect marketing information and anticipate to the demand.

3) Scan the marketing environment

4) Develop market richer strategies.

5) Sales promotion through advertising and maintain good public relations.

ACCOUNTS DEPARTMENT:

23



The department is playing vital role by providing and maintaining the entire details of

each and every financial activities of the company.

Functions:

1) To provide accurate and complete systematic information of financial activities.

2) To maintain all the books of accounts and other financial documents.

3) To prepare periodic financial statements of the company like P&L Account and

Balance sheet.

PERSONAL DEPARTMENT:

It is a branch of personal department (HRD). Time office is a key to personnel office.

It maintains the arrival and departure time of all the staff members including

managerial staffs. The workers are also requiring signing in the attendance register to

avoid the mis -representation or escaping trick of workers while going out of the

department. The time office sends these records to the personnel department. This

records will help in wage fixation, salary fixation, granting of leave and allowances to

workers.

Salary administration:

There are skilled, semi-skilled and un -skilled workers in the organization and they are pay

according to ability and qualification and with consideration of government regulation.

Attendance:

The department records the time (i.e., the time of workers in and out of the company) through

punch card system write at the entrance by the time officer.

Employee’s data:

The personnel department keeps the records of employees.

Policies of HR department:

Child labor free:

24



No child labor is engaged in any our unit, as they give more importance during childhood.

They motivate on compulsory education for children.

Involuntary labor:

They will not use any forced or involuntary labor, whether prison, bonded, indentured or

otherwise

Coercion and harassment:

In Gokaldas exports limited , they treat each employee with dignity and respect as among

their own family members , and will not use corporal punishment, threat of violence or other

forms of physical, sexual, Psychological or verbal harassment or abuse.

ESI and PF benefits:

All their employees of Gokaldas exports limited are covered under ESI and PF benefits, as a

part of social responsibilities.

Non discrimination:

Gokaldas exports limited will not discriminate in hiring employment practices, including

salary, benefits, advancement, discipline, termination or retirement, on the basis of race,

religion, age, nationality, social or ethnic origin, sexual orientation, gender, political opinion

or disability.

Association:

GEL will respect the rights of employee to associate, organize and bargain collectively in a

lawful and peaceful manner, without penalty or interface.

Health and safety:

GEL provide employees with a safety and healthy work place in compliance with all

applicable laws and regulations, ensuring at a minimum reasonable access to purifier water

and sanitation facility, Electric shock preventer with the help of an automatic tripping switch

system, lightening the protector with adequate lightening and ventilation.

PLANNING AND CONTROLLING DEPARTMENT

25



In co-ordinates and arranges for preventive and break down maintenance of machinery and

equipment. It identifies the needs of the training people at all levels of production planning

and control department and communications to management and information system and

training department.

The monthly machine shop requirement is worked out referring to procedure plan the plan for

material indent is done considering the following points.

1. Stock of components

2. Pending purchase order and indents as on the day

FUNCTIONS OF PPC

1. To organize material procurement, production, planning and periodic review with all

concerned heads. To plan for man power and equipment for production and control purposes.

To plan and organize the layouts of RPD and assembly for effective operations.

2. To co-ordinate and arrange for the prevention, break down and maintenance of machinery

and equipment. Conducting periodic meetings for continual improvements in quality of

products by giving guide lines at needed stages and finding out the requirements for training

and functional improvements for performance enhancement of workers. Conducting design

review meetings, non-conformance reviews meetings, customer complaints meeting and

quality audits for finding out solutions.

3. Keeping track of material requirements bases on various work order and inspecting and

controlling the flow of incoming materials, rejections and updating the records. To give

drawing requirements to design and development department and follow –up.

PRODUCTION DEPARTMENT:

A) MERCHANDISING

Merchandising department is one of the most important departments of any garment industry,

because it functions for getting orders from buyers. This department works as a link between

buyer and manufacturer. They convey what the entire buyer expects from manufacturer. This

department plays a main role as communicator.

B) SAMPLING

26



Before actually making any samples, it is required to develop the patterns for it. The pattern

masters at GEL were equipped with expertise in the pattern making, evident by the fact that

they never required any mannequins for developing the patterns as per the measurements sent

by the buyer.

C) CAD

The best fit sample which has been approved by the buyer comes to the CAD department;

here GEL uses the Electra system. With the help of the digitizer the pattern is designed. Than

the minor adjustments which have to be made using Electra system.

C) CUTTING

Cutting room is one of the core areas in any garment organization. As a unit cutting room has

a greater effect on excessive manufacturing cost than any other department concerned with

the actual production of garments.

D) MATERIALS FROM STORE

According to the schedule fabric comes from store department to cutting department. Fabric

is issued in accordance with the style type, designated with a number, which is different for

different garments.

E) PATTERN PLACEMNT

The final step in the spreading is placing the marker on the lay. After the fabric is relaxed, the

marker planner is provided by the cad department, which mentions the lay width and length

and number of lays, efficiency, pattern placement and number of patterns.

F) SEWING

The heart of garment unit is the department where the actual production takes place: sewing

department which is divided into batches. The sewing department has two quality inspection

wings.

1. In line checking

2. End line inspection

H) FINISHING

27



Finishing process is to check the garment for any defect and make them appealing through

pressing. Garments are checked according to quality system approved by a particular buyer.

I) PACKAGING:

The finished garments are packed in the cartons as per the packing plan. Each carton has

specified number of garments and the quantity can neither be increased nor be decreased after

it is planned.

SYSTEM:

Every organization has some systems or internal processes to support and implement the

strategy and run day-to-day affairs. For example, a company may follow a particular process

for recruitment. These processes are normally strictly followed and are designed to achieve

maximum effectiveness. Traditionally the organizations have been following a bureaucratic-

style process model where most decisions are taken at the higher management level and there

are various and sometimes unnecessary requirements for a specific decision (e.g.

procurement of daily use goods) to be taken. Increasingly, the organizations are simplifying

and modernizing their process by innovation and use of new technology to make the

decision-making process quicker.

Quality monitoring system:

Pre-production check:

Risks are reduced by checking material components, accessories/ user manuals etc. at this

stage itself.

Fabric inspection:

The fabric is received from the warehouse whenever it’s required and it is checked for the

100% quantity and 10% quality. The 10% 0f the total fabric received is checked for the

quality using Fabric inspection machine based on four points system.

The fabric is also checked for the shrinkage after it has been send for washing (Dry wash,

enzyme wash and chemical wash)

Initial production check:

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First finished projects are checked against buyer’s specification and prototype sample.

Deviations are identified and brought out for correction.

During production check:

Inspection during production carried out to check and verify that the initial discrepancies

have been rectified and to ensure that the average quality standard of production runs

Inline pre-final& final inspection:

Final random inspection is carried out when the total consignment is packed and ready for

shipment. FRI is performed according to the International Inspection Standards.

The detailed physical inspection of the samples selected at random is based on specifications

of the buyers and it cover the criteria such as design/style, shrinkage, accessories, appearance,

markings, colour, labeling, material, assortments, workmanship, measurements and packing

etc.,

7S AS APPLIED TO RSWM Ltd.

1. STRATEGY:

Their duties of being textile major RSWM ltd which has been recently going through a bad

patch owing to reducing exports and falling margins is undertaking a business transformation

in a bid to become a billion dollar company. The second criteria is Arvind ltd is now giving

more focus to brands and retail which until now contributes 19% of total revenue. It will also

move to become an integrated textile player by producing fabric as well as retailing it. Major

emphasis would be on the value store format ‘Mega Mart’ which is targeted to achieve Rs

1000crore sales in 3yrs. Other than that Gokaldas exports plans to set up more formats by

2012. The strategy may work out to be rewarding for the company as it has a good portfolio

of domestic and international, and has been a national player the move also helps it toward

off any risk it faces from the recession in exports markets.

2. STRUCTURE:

Gokaldas exports has adopted an organizational structure called the "Strategic Business Unit

structure" Under this structure, a company groups under one business unit, distinct product

groups comprise product groups targeted for distinct market segments and using distinctive

technologies in the manufacturing process. A company puts each business unit under the

command of a different person. The person heading a business unit is responsible for the

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effective and efficient operation of the unit. This pattern of organization allows the company

to concentrate its energies on all the important business.

3. SYSTEMS:

All the systems used in the company, to get things done, also needed change to keep pace

with the changes in strategy and structure. These systems comprise performance appraisal

and counseling systems, compensation systems, other planning and monitoring systems. We

have thoroughly revamped all these systems to meet the new organizational demands.

4. SKILLS:

Company is good at the designs of apparel which go along with the recent trend it has

passionate young fashion designers with innovative skills who intend to give healthy

competition

5. SHARED VALUES:

Shared values refer to the same guiding values amongst the employees. It explains what does

the organization stand for and what it believes in. Its central beliefs and attitudes. It explains

the vision, mission and goals of the company.

6. STAFF:

They follow different methods for recruiting the staff and workers. Telephonic Interview is

followed for staff followed by meeting the heads of the branch. They follow a unique method

to recruit the workers. The production heads visit villages and motivate them to join and so

there is no process which the workers have to undergo. Motivation may find a way by

providing transportation facilities and frequent hikes.

7. STYLE:

There the leadership journey starts with setting a clear direction, gaining commitment and

aligning people, and ensuring passion driven execution in Gokaldas exports mills operations

4. SWOT ANALYSIS OF RSWM :

Strength

• RSWM is pioneer Company of LNJ Bhilwara Group which is largest Exporter of

Polyester / Viscose Yarn.

• RSWM Products are known as Quality products and bagged the premier in

comparison of competitor’s product.

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• Its fabric is marketed with the well-known brand name of MAYUR.

• Textiles future better after opening of Quotas.

• RSWM accorded with certificate of IS/ISO 9001:2000 and weighted for quality

commitment.

• Time To Time Expansion & modernization of plants.

• Availability of highly trained manpower in both, management and technical

Weakness

• Competition with the local process house/independent loom units in piece dyed

suiting qualities in view of their lower administering and other cost continuous

product development will enable to compete with them.

• RSWM is not able to compete with Bhilwara local market with the reference of

Trading Channel.

Opportunity

• RSWM has well known establish arrangement to sell its Yarn all over the world and

worldwide.

• Having vision to penetrate in the Readymade market.

• Entering into the Thermal Power Project.

• Export to USA.

Threats

• Opening of Import and Duty Reduction in the Country.

• Increase trend of readymade garments and fashion fabric viz. Cotton fabrics as against

individually stitching change.

5. Analysis of Financial statement

Profit loss account

(Rs crore)

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Income

Operating income 2,453.29 1,987.00 1,950.59 1,530.77 1,292.55

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Expenses

Material consumed 1,501.50 1,375.92 1,161.73 928.42 848.65

Manufacturing expenses 230.87 198.18 182.33 182.93 159.41

Personnel expenses 204.25 164.20 154.11 123.01 112.90

Selling expenses - - 75.08 71.12 73.58

Adminstrative expenses 208.33 110.04 48.26 44.29 27.66

Expenses capitalised - - - - -

Cost of sales 2,144.96 1,848.35 1,621.51 1,349.78 1,222.20

Operating profit 308.34 138.65 329.08 180.99 70.35

Other recurring income 22.84 22.33 12.70 10.20 7.15

Adjusted PBDIT 331.17 160.99 341.78 191.19 77.50

Financial expenses 121.29 104.04 72.96 57.87 68.89

Depreciation 108.45 89.10 80.15 87.64 72.67

Other write offs - - 0.48 0.42 0.53

Adjusted PBT 101.43 -32.15 188.18 45.27 -64.59

Tax charges 33.56 -6.51 58.26 12.48 -31.48

Adjusted PAT 67.87 -25.64 129.93 32.79 -33.11

Non recurring items - - -16.61 2.36 -31.34

Other non cash adjustments - 3.85 9.65 0.88 0.60

Reported net profit 67.87 -21.79 122.96 36.03 -63.85

Earnigs before appropriation 144.06 76.19 156.03 65.85 43.30

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Equity dividend 23.15 - 34.72 5.79 -

Preference dividend - - 0.08 1.75 0.84

Dividend tax 3.93 - 5.74 1.25 0.14

Retained earnings 116.98 76.19 115.48 57.06 42.32

Balance sheet

(Rs crore)


Sources of funds

Owner's fund

Equity share capital 23.15 23.15 23.15 23.15 23.15

Share application money - - - - 3.05

Preference share capital - - - 5.00 25.00

Reserves & surplus 303.61 263.75 287.64 206.08 172.36

Loan funds

Secured loans 1,179.87 1,191.27 1,138.47 1,030.61 1,072.43

Unsecured loans 1.23 1.70 2.55 1.79 0.95

Total 1,507.86 1,479.87 1,451.80 1,266.62 1,296.94

Uses of funds

Fixed assets

Gross block 1,806.93 1,574.19 1,518.87 1,444.01 1,427.34

Less : revaluation reserve - - - - -

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Less : accumulated depreciation 841.12 794.28 716.85 647.18 567.64

Net block 965.81 779.91 802.02 796.83 859.70

Capital work-in-progress 11.15 250.93 29.00 5.24 6.33

Investments 110.67 60.27 60.15 60.15 64.44

Net current assets

Current assets, loans & advances 762.84 642.09 850.14 600.57 513.29

Less : current liabilities & provisions 342.60 253.34 289.52 196.65 147.72

Total net current assets 420.23 388.76 560.62 403.92 365.57

Miscellaneous expenses not written - - - 0.48 0.90

Total 1,507.86 1,479.87 1,451.80 1,266.62 1,296.94

Notes:

Book value of unquoted investments 51.64 17.64 17.64 17.64 20.42

Market value of quoted investments 39.57 43.06 40.25 46.74 17.62

Contingent liabilities 624.42 198.68 375.62 134.55 73.07

Number of equity sharesoutstanding (Lacs) 231.49 231.49 231.49 231.49 231.49

6. Learning Experience

Internship has helped a lot to understand the practical side of job, which is different from the textbook theories.

It has also helped me to improve my communication skills. Customer handling was one of the important

learning that I gained from my internship. From the customer point of view, it is easy. But not so when in the

position of a staff or employee. Was also able to maintain a good relationship with the employees on and

off the shop floor.

It is very well said that ―Finance always need a theory backup‖.

One needs to really know what finance is all about and how much it is important for the

company‘s smooth functioning.

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OBJECTIVE AND SCOPE

The objectives of the research are as follows:

SPECIFIC OBJECTIVES:

• To analyze the effect of recession in textile industry.

• To analyze the performance of RSWM during and after recession.

• To understand the market position of the company and how the company is managing

their target market areas(competitors & its marketing department).

• To understand the processing of fiber.

• To understand the clients choice through questionnaire.

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RSWM is one of the largest textile companies in terms of turnover. Getting the original

experience of the business and understanding the business under situation like recession

and strategies to sustain under such situation was the scope of my project.

RESEARCH METHODOLOGY

RESEARCH DESIGN

The research design used for this project is descriptive design. It focused on the following:

• The objectives of the study are clearly formulated.

• The techniques of data collection were designed in advance.

• The processing and analysis of data worked out in anticipation.

• The finding of the reports is per guidance of management.

DATA COLLECTION METHODOLOGY

The source of information is gathered through the primary and secondary data. While

resorting to these two sources of information, major emphasis is laid on primary source as

it gives first hand information in the area of survey. Primary Data collected was done

using the questionnaire method. A copy of the questionnaire attached as an annexure. The

open ended data analyzed qualitative.

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Secondary data collection was done by referring to various generals, magazines and

internet. The secondary data collection has been used to address the research objective-To

understand the textile industry as a whole including fiber to processing .These sources of

secondary data have been acknowledged in the bibliography section of this report.

DATA ANALYSIS

The sampling design highlights the sample size and sampling technique that is

used for this study. A modest sample size of 30 respondents was selected for

the study. The sample was selected using the convenience sample technique.

This sample comprise of the existing clients of RSWM Ltd .These respondents

were selected by references given directly through the company personnel.The entire sample population is from the Bhilwara district of Rajasthan state.

OBSERVATION AND FINDINGS

Economic downturn

The year 2008 -2009 has been an exceptional year in the last 60 years because of

exceptionally challenging economic scenario. Across the world, the economic activity has

declined sharply, driven mainly by the decline in consumption and exports. The advanced

economies are facing a severe and synchronized contraction with unprecedented 7.5

%decline in real GDP during the Q4 of 2008.Reflecting sharp demand contraction,

consumer price inflation has reached near zero in several advanced countries, raising

concerns about sustained deflation on the way forward. Unemployment rates in the US,

EU, UK and Japan have increased significantly.

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The slump in export demand and tighter trade credit caused deceleration in aggregate

demand, reversal of capital flows led to equity market losses and currency depreciations;

global liquidity tightening resulted in lower external credit to Emerging Market

Economies (EME) and market rigidities and erosion of confidence led to widening of

credit spreads.

QUESTION-WISE ANALYSIS OF THE CUSTOMER -SURVEY

A. In which type of manufacturing segment, you deal with?

Piece Dyed: …….

Fiber Dyed: ..........

Fancy Dyed: …….

• ANS: The respondent of this survey were thirty clients of RSWM Ltd. They

preferred Piece & Fiber dyed segment. The P/c and P/V are the most products of

RSWM followed by 100% cotton. It can be implied that RSWM follows the

“marketing differentiation strategy” where their clients are retained over a period of

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years because of the superior quality of the product and the brand name of the

products.

B. In which type of market, you deal?

Domestic: ………..

Export: ………….

• ANS: There was mixed reaction. Most of the clients, purchased for sales in domestic

market.

C. Are you regularly associated with RSWM?

YES: ………

NO: ……….

• ANS:

D. Are you satisfied with the quality of RSWM yarn?

YES:……

NO: ……

• ANS: the product of the RSWM is better in quality and well accepted in the market

.Customers are satisfied with the quality of the product and that’s why its rate is

39



higher than the other mills producing the same product .Also there is consistency in

the quality.

N.Are you satisfied with price structure of RSWM yarn?

YES: …….

NO: ………

• ANS: the clients felt that the prices of the RSWM products are slightly higher than the

prices of similar products available in the market.

The flowing table illustrates this point with factual data.

PRODUCT NAME RSWM PRICES AVERAGE INDUSTRY

PRICES.

2/24 PV GREY 143.00 141.00

2/24 PV 128.00 126.00

2/32 PV 133.00 131.00

2/50 PV 65/35 DYED 217.00 205.00

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O. How would you rate RSWM with other manufacturer in terms of Quality & Price?

(please number:1,2,3…)

RSWM: ………

Sangam: ……….

Birla group of industries: ……….

Orient syntax: ……….

• ANS: On the basis of quality RSWM was rated as number 1 and on the basis of price,

it was ranked as 2nd & SANGAM as no1.

P. How will you mark, the Pre and Post services, provided by the RSWM Marketingoffice to the clients?

Excellent: ………..

Good: …………….

Average: ………….

• ANS: it was marked as good.

Pre-sales services: The clients appreciated the promptness with which the marketing

manager would attend the needs of the clients. they also liked the fact that the manager

would satisfy all the queries and concerns of the clients before closing the deals.this we

can say the performance of the pre sales services of the RSWM are rated as “more than

satisfactory”.

Post sales services: The post sales services of RSWM are an indispensable aspect of the

clients experience with the company .this is especially so, as the clients are required to

41



make a full advance payment, while placing the order. Usually the clients are happy with

the product ,but if any dis -satisfaction with regards to the color or tenacity of the yarn

,the company is known for quick adequate replacement .this post sales services of the

RSWM makes it as a preferred supplier.

Q. According to you which are the most effective media?

T.V. : ……….

Magazines : ……….

News Paper : ……….

Radio : ………..

Mouth Publicity : ……

• ANS: 40% of the respondent felt that “word of mouth” publicity is the most effective

media for the yarn industry.

42



43



R. Any suggestions,you would like to give for improvement?

……………………………………………………………………………………

……………………………………………………………………………………

……………………………………………………………………………………

…………………………………………………………………………

• ANS :The respondent have given many suggestion to improve various aspects of the

RSWM business process ,as follows:

a. Company should increase the production cycles to reduce delivery time.

b. Company should revise the payment terms to make it more flexible .eg.50% at the

time of booking and the remaining at the time of delivery of the goods.

c. The yarn industry currently operates primarily on the basis of personal

network.RSWM being a major player in this industry can transform the way of doing

business by adopting a more professional approach. This will help smaller

organizations to benefit by RSWM products.

44



LIMITATIONS OF THE STUDY

a. The survey is based on a small sample size .Thirty respondents is an insufficient

number to draw conclusions about RSWM Ltd and Its clients perception s about its

operations. A large sample size would have made the study more accurate.

b. Since the primary study is based on customer –feedback through questionnaire

Methodology, the limitation of the respondent, bias creeps in. some respondent may

not be honest in giving their opinions or may have factors like respondent

fatigue,respondent dis-interest ,which may yield factually incorrect information in the

survey.

c. The data analysis techniques are basic and the research lack s the use of highly

sophisticated statistical tools.

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SUGGESTIONS AND RECOMMENDATIONS

Based on the data obtained, the qualitative feedback gives two major insights which have

been explained as suggestions and recommendations.

1. The objective of the company must be to maintain the optimum balance of

inventory.RSWM Ltd should provide goods immediately on demand of customers to gain

reliability and retain loyal customers with the company. The clients of the company have

expressed their dissatisfaction with the time taken by the company to deliver the products.

This is a concern and can be addressed as quickly as possible so that the customers –as a key

stakeholder of the business remain “happy” with the organization.

2. Being a major player in the industry, RSWM Ltd should follow a professional

approach to get new business. A company of this long standing and credibility has the

influence to change the traditional ways of doing business.RSWM, known to be a Learning

Organization can create formal channels of attracting new customers and not depends on

informal or personal networks alone .this is important as it will allow smaller firms to take

benefits of the superlative quality yarns produced by RSWM Ltd.

46



BIBLIOGRAPHY AND WEBLIOGRAPHY

BIBLIOGRAPHY:

• Strategic marketing problems –cases and comments by Roger kerin,Robert .A

• Magazine-reliance publication.

• Local newspaper

WEBLIGRAPHY:

• www.rajasthanspg.com

• www.lnjbhilwara.com

• www.rswm.in

• www.wikipedia.org

http://www.rajasthanspg.com/

http://www.lnjbhilwara.com/

http://www.rswm.in/

http://www.wikipedia.org/

http://www.rajasthanspg.com/

http://www.lnjbhilwara.com/

http://www.rswm.in/

http://www.wikipedia.org/

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