The Winter Project Report on Textile

Industry

Northern Institute of Integrated Learning in

Management – Center for Management
Studies

Submitted To: Submitted by:

Mr. Mohit Agrawal Roshan Kumar Jha
 PREFACE

I made this project on textile industry in order to know about that

how manufacturing process and management is done. This project is
mainly centralized on how various departments are working for
management.

For a management student the career of the student depends upon

many things and one of them is practical knowledge. Practical
knowledge helps to implement the theoretical aspects into the
practical world.
For practical exposer I done this project. This project contains overall
management structure of the companies doing the textile products
(like Suiting & shirting).this project is basically for knowing how
textile manufacturing concerns are run their businesses and how
they contributing to the Indian economy.
 ACKNOWLEDGEMENT

I heartily thankful to SANGAM INDIA LTD. BSL LIMITED and SHARDA

SPUNTEX PVT LTD. Which has given me the golden opportunity to
prepare or analyze project report on “TEXTILE INDUSTRY”.
I am also thankful to honourable sir Mr. Mohit Agrawal who has
leaded me to enlighten ourselves in preparing of this project. His
inspiration and encouragement leaded me to come with a successful
task.
I am also thankful to management faculty without whose constant
guidance this work would have been an impossible task to complete.
 INDEX
1) Objective
2) Introduction of Indian textile industry
3) History of the Indian textile industry
4) Department workings
5) Market Size
6) SWOT Analysis
7) Marketing Mix
8) Problems faced by the industry
9) Government initiatives towards textile industry.

OBJECTIVE

 To study the current position and situation of the Textile

industry.
 Find out the possible ways of solution to weaknesses.
 To find out the strengths and weaknesses of the suiting and
shirting.
 To identify the key opportunities and threats in the textile
business.
 To find out the problem faced by the various departments
manager and labours.
  To study the Marketing Mix (Product, Price, Place and
Promotion) of the textile business.

INTRODUCTION

The textile industry in India traditionally, after agriculture, is the only

industry that has generated huge employment for both skilled and
unskilled labour in textiles. The textile industry continues to be the
second largest employment generating sector in India. India’s textiles
sector is one of the oldest industry in Indian economy. Indian Textile
Industry occupies a very important place in the economic life of
India. The Indian textile industry is one of the largest in the world
with a massive raw material and textiles manufacturing base.
It offers direct employment to over 35 million in the country. The
share of textiles in total exports was 11.04% during April–July 2010,
as per the Ministry of Textiles. During 2009-2010, Indian textiles
industry was pegged at US$55 billion, 64% of which services
domestic demand. In 2010, there were 2,500 textile weaving
factories and 4,135 textile finishing factories in all of India. According
to AT Kearney’s ‘Retail Apparel Index’, India is ranked as the fourth
most promising market for apparel retailers in 2009.
The textile industry is primarily concerned with the design and
production of yarn, cloth, and their distribution. Cotton is the world's
most important natural fiber. The textiles industry is also labour
intensive and is one of the largest employers.
Government of India passed the National Textile Policy in 2000. The
major functions of the ministry of textiles are formulating policy and
coordination of man-made fiber, cotton, jute, silk, wool industries,
decentralization of power loom sector, promotion of exports,
planning & economic analysis, finance and promoting use of
information technology. The advisory boards for the ministry include
All India Handlooms Board, All India Handicrafts Board, All India
Power looms Board, Advisory Committee under Handlooms
Reservation of Articles for Production and Co-ordination Council of
Textiles Research Association. There are several public sector units
and textile research associations across the country.

HISTORY
The archaeological surveys and studies have found that the people of
Harrapan civilization knew weaving and the spinning of cotton four
thousand years ago. Reference to weaving and spinning materials is
found in the Vedic Literature. There was textile trade in India during
the early centuries. A block printed and resist-dyed fabrics, whose
origin is from Gujarat is found in tombs of Fostat, Egypt. This proves
that Indian export of cotton textiles to the Egypt or the Nile
Civilization in medieval times were to a large extent. Large quantity
of north Indian silk were traded through the silk route in China [5] to
the western countries. The Indian silk were often exchanged with the
western countries for their spices in the barter system. During the
late 17th and 18th century there were large export of the Indian
cotton to the western countries to meet the need of the European
industries during industrial revolution. Consequently, there was
development of nationalist movement like the famous Swadeshi
movement which was headed by the Aurobindo Ghosh.

DEPARTMENT WORKINGS IN THESE

COMPANIES
On the basis of my observation these departments are generally in
the companies-
1. Accounts Department
2. Finance Department
3. Marketing Department
4. Sales department
5. Production Departments
6. Human Resources Departments
Generally marketing and sales departments are working together but
if there is requirement then they establish separate department.
Segments of Indian Textile
Industry
Indian Textile Industry can essentially be categorized into two segments:

1. Organized Textile Industry

2. Unorganized Textile Industry

1.Organized Textile Industry

Organized Textile Industry is a highly organized one with immense

importance on capital intensive production process. This sector is
characterized by sophisticated mills where technologically advanced
machineries are utilized for mass production of textile products

2.Unorganized Textile Industry:

Unorganized Textile Industry sector is the dominant part in this industry

which mainly utilizes the traditional practices woven or spun in cloth
production and hence is labour intensive in nature. This industry is
characterized by the production of clothes either through weaving or
spinning with the help of hands. The decentralized nature is considered
as another important feature of the unorganized textile industry in India.
 Market size of the industry

 The Indian textiles industry, currently estimated at around US$

108 billion, is expected to reach US$ 223 billion by 2021.
 The industry is the second largest employer after agriculture,
providing employment to over 45 million people directly and 60
million people indirectly. The Indian Textile Industry
contributes approximately 5 per cent to India’s Gross Domestic
Product (GDP), and 14 per cent to overall Index of Industrial
Production (IIP).
 The Indian textile industry has the potential to reach US$ 500
billion in size according to a study by Wazir Advisors and PCI
Xylenes & Polyester. The growth implies domestic sales to rise
to US$ 315 billion from currently US$ 68 billion. At the same
time, exports are implied to increase to US$ 185 billion from
approximately US$ 41 billion currently.

 The Indian textiles industry, currently estimated at around US$

108 billion, is expected to reach US$ 223 billion by 2021. The
industry is the second largest employer after agriculture,
providing employment to over 45 million people directly and 60
million people indirectly.
 The Indian Textile Industry contributes approximately 5 per
cent to India’s Gross Domestic Product (GDP), and 14 per cent
to overall Index of Industrial Production (IIP).
 The Indian textile industry has the potential to reach US$ 500
billion in size according to a study by Wazir Advisors and PCI
Xylenes & Polyester. The growth implies domestic sales to rise
to US$ 315 billion from currently US$ 68 billion. At the same
 time, exports are implied to increase to US$ 185 billion from
approximately US$ 41 billion currently.

SWOT Analysis
SWOT analysis is a tool for auditing an industry and its environment.
It is the first stage of planning and helps marketers to focus on key
issue. SWOT stand for strengths, weaknesses, opportunities, threats.
Strengths and Weaknesses are internal factors. Opportunities and
Threats are external factors. It involve specifying the objective of the
business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective.
 Strengths

Threats SWOT Weaknesses

ANALYSIS

Opportunities

Strengths of cotton cloth Production industry

 Local labour availability
 Effective distribution system
 Location of your business
 Quality process and procedures
 Your specialist marketing expertise

Weaknesses of cotton cloth production

 Unskilled labour
 Poor training capacity
  Mismanagement on the part of the owner
 Poor technical support
 Less promotional activities
 Less availability of Capital or capital sources
 High power tariffs with uncertain power supply

Opportunities of cotton cloth production

 Untapped market
 High demand
 Estimated need
 International market

Threats of cotton cloth production

 New competitors
 Price wars with competitors
 Increasing cost of raw material
 Trends of western cloth culture
 Environmental threats : winter and rainy season
 Threats of substitute product
 The bargaining power of customers (Buyers) and suppliers

Marketing Mix
The 'Marketing Mix' (also known as the four Ps) is a
foundation concept in Marketing. The marketing mix has been
defined as the "set of marketing tools that the firm uses to
pursue its marketing objectives in the target market" The 4Ps
make up a typical marketing mix - Price, Product, Promotion
and Place. However, nowadays, the marketing mix increasingly
includes several other Ps like Packaging, Positioning, People
and even Politics as vital mix elements.
All the elements of the marketing mix influence each other.
They make up the business plan for a company and handled
right, can give it great success. But handled wrong and the
business could take years to recover. The marketing mix needs
a lot of understanding, market research and consultation with
several people, from users to trade to manufacturing and
several others.

• features, Brands,services,innovation,style and images

Product

• List price, discount, terms & conditions, cross selling

Pri ce

• Inventory, distribution, Channel

Pl a ce

• sales , packageing, Advertising,

Promoti on

1.Product
It refers to the item actually being sold. It is a tangible object that
is mass produced or manufactured on a large scale with specific
volume of unit. To retain its competitiveness in the market , product
differentiation is required and is one of the strategies to differentiate
a product from its competitors.

2.Price
In case of setting the price of cotton cloth, it is basically set by the
businessman while keeping the demand of the product in the mind.
The demand of these product rise in summer season in which the
businessman get good profit as compare to the winter season profit
margin.

3.Place
In case of cotton cloth products distribution is done basically through
intermediaries i.e. wholesalers. And than the whole seller distribute
them to the end customers or consumer through their respective
Retail Stores.

4.Promotion
In cotton cloth business I find some personal selling by medium and
lower level of businessmen. This contribute a lot in their overall sales
volume. While sales promotion activities are very few.

Government Initiatives towards

industry
The Indian government has come up with a number of export
promotion policies for the textiles sector. It has also allowed 100 per
cent FDI in the Indian textiles sector under the automatic route.
 The Clothing Manufacturers' Association of India (CMAI) has
signed a memorandum of understanding (MOU) with China
Chamber of Commerce for Import and Export of Textiles (CCCT)
to explore potential areas of mutual co-operation for
increasing apparel exports from India

Subsidies on machinery and infrastructure

 The Revised Restructured Technology Up gradation Fund

Scheme (RRTUFS) covers manufacturing of major machinery for
technical textiles for 5 per cent interest reimbursement and 10
per cent capital subsidy in addition to 5 per cent interest
reimbursement also provided to the specified technical textile
machinery under RRTUFS.

 Under the Scheme for Integrated Textile Parks (SITP), the

Government of India provides assistance for creation of
infrastructure in the parks to the extent of 40 per cent with a
limit up to Rs 40 crore (US$ 6 million). Under this scheme the
technical textile units can also avail its benefits.

 The major machinery for production of technical textiles

receives a concessional customs duty list of 5 per cent.
 Specified technical textile products are covered under Focus
Product Scheme. Under this scheme, exports of these products
are entitled for duty credit scrip equivalent to 2 per cent of
freight on board (FOB) value of exports
 The Ministry of Textiles has approved a 'Scheme for promoting
usage of geotechnical textiles in North East Region (NER)' in
order to capitalise on the benefits of geotechnical textiles. The
scheme has been approved with a financial outlay of Rs 427
crore (US$ 63.67 million) for five years from 2014-15.

 With a view to raise India's share in the global textiles trade to

10 per cent by 2015 (from the current 3 per cent), the Ministry
of Textiles proposes 50 new textile parks. Out of the 50, 30
have been already sanctioned by the government (with a cost
of US$ 710 million). Set up under the Scheme for Integrated
Textile Parks (SITP), this initiative will not only make the
industry cost competitive, but will also enhance manufacturing
capacity in the sector.

Problem faced by the industry

The following are the main problem which are being faced by textile
industry:-
 Electricity problem
 Labour problem
 Raw material problem
 Problem related to the production process
 Market problem
 Poor technological support
 Lack of promotional activities
  Less availability of capital or capital sources
 Problem of demonetization
o Before demonetization three are working , Now only two

shift are working

o Payment to labours

o Collecting the money

factors Influencing productivity

Internal factors

1) Plant & Equipment : The increased availability of the plant

through proper maintenance and reduction of the time increase
the productivity . Productivity can be increase by paying proper
attention to utilization, cost, investment etc.

2) Technology: Innovative and latest technology improves

productivity to a greater extent. The various aspects of technology
factors to be consider are
a) Size and capacity of plant
b) Timely supply and quality of inputs
c) Production planning and control
d) Repair and maintenance
e) Waste reduction
3) Material: Effort to reduce material bring about improvement in
productivity.
a) Selection of quality material and right material
b) Control of wastage
c) Effective stock control
d) Development of sources of supply

4) Human factor: Productivity is basically dependent upon human

competence and skill. Ability to work effectively is governed by
various factors such as education, training, experience etc. of the
employees. Motivation of employee will influence productivity.

5) Product factor: In terms of productivity means the extent to

which the product meets output . The cost benefit factor of a
product can be enhanced by increasing the benefit at the same
cost or by reducing cost for the same benefit.

6) Work method: Improving the ways in which the work is done

improves productivity.

7) Management style: This influence the organization design, policy

and procedures. A flexible and dynamic management

External Factors
1) Structural adjustments: It include social changes. Social
changes such as women’s participation in the labour
force, culture value, are some of the factors that play a
significant role in the improvement of productivity.

2) Natural resources: Man power, raw material and land are

vital to the productivity improvement.

3) Government and Infrastructure: Government policies and

programme are significant to productivity practices of
government agencies, transport , fiscal policies (Interest
rate, taxes) influence productivity to the greater extent.

4) Economic factor: Economic factors can have both positive

and negative impacts on the clothing industry. During
economic boom periods, people have more disposable
income. Hence, they may buy more clothing, increasing
sales for clothing manufacturers, wholesalers and
retailers

5) Legal and Political Factors: A number of legal and political

macro environmental factors affect small businesses in
the clothing industry. The industry has repeatedly been
affected by issues such as workers' rights and child labor
laws. Union workers in clothing manufacturing plants may
picket their employers, especially if their wages or
medical benefits are less favorable than workers in
comparable industries.
SUGGESTIONS AND
RECOMMENDATIONS

1) Cone system instead of unprocessed yarn

The main raw material for cotton cloth is thread/yarn that is in
its pure raw form without processing or finishing it.
Government should provide it in cone form at cheaper rate so
that the producers can include this in their budget.

2) Availability of electricity
Electricity is only the source by which power loom are
operated. Hence the state government must provided
sufficient and regular electricity at a cheaper rate to the cloth
producer.

3) Trained professional (waste management)

Cotton cloth production involves various steps form processing
of raw material to finished goods. And at all the steps there is
some wastage , if the entrepreneur and government take
managing all these wastage seriously by applying different
modern techniques of waste management in the field of cotton
cloth production.
EXPECTED SALES (APPROX) OF THESE
COMPANIES:
BSL LTD. – Rs.107 crores (Domestic)

Rs.225 crores (export)

SHARDA SPUNTEX PVT.LTD. – Rs.144 crores (domestic & export both)

This sales is done by bhilwara manufacturing unit.

EXPECTED GROWTH OF THE
COMPANY:
BSL LIMITED – 7% TO 10%
BSL Ltd is follows the traditional method for selling the product
and not follow any specific marketing strategy.

METHODOLOGY

1) Source of data
a) Primary data is collected by me
 Interview of manager
 observation
b) Secondary data is collected by
 Internet

2) Area of study: SANGAM INDIA LTD, BSL LIMITED and SHARDA

SPUNTEX PVT LTD.
 CONCLUSION
The main purpose of doing this project is to know the how textile
industries are finances and what helps them to achieve sales targets.
There may be some problems are raises by implementation of new
policy but they are doing their work frequently.
The main reason For successful running of the industry is the
support of state government. The state government is helps to these
companies by financing or lending.