CHAPTER I

INTRODUCATION OF INTERSHIP TRAINNING

In plant training is an integral part of MBA program, because it gives us the practical

knowledge of what we have learnt during our study period. But practical knowledge is also

necessary along with the theoretical knowledge.

One can see how the theories and knowledge are being practically implemented. This

report is about a paper company. We prepared this report carried the information about all

department in the organization and necessary information’s of the company.

Training is the process of learning a sequence of programmed behavior. It is an

application of knowledge. It gives people an awareness of the rules and procedures to guide their

behavior.

Development is a related process. It covers not only those activities which improved job

performance, but also those which bring development of their personalities to help individual’s

progress towards the actualization of their potential capabilities.

Education is the understanding and interpretation of knowledge. Education imparts

qualities of mind and character and understanding of basic principles and develops the capacities

of analysis, synthesis and objectivity

As a MBA student, I inspired for studying various department and their contribution to

the successful running of a factory.

1
 CHAPTER II

INDUSTRY PROFILE

About the industry

We have heard of the traditional manufacture of silk in the Chinese culture. The art of spinning
linen and weaving was not unfamiliar to the Egyptians. It was 3400 BC that Egypt had
developed the art and was running it successfully. As a competition always creates a better
market, the competitive threat from synthetic fibres resulted in an in-depth research to develop
new and improved sources of natural fibre with greater yields. It further improved the production
and processing methods and modification of fibre yarn or fabric properties. New fibre plants
sprung up and its usage was extensively explored by products.

Textiles also refers to the yarns, threads and wools that can be spun, woven, tufted, tied and
otherwise used to manufacture cloth. The production of Textiles is an ancient art, whose speed
and scale of production has been altered Almost beyond recognition by mass-production and the
introduction of modern manufacturing techniques. An ancient Roman weaver would have a
problem recognizing a plan weave, twill, or satin.

The history of textile market using natural fibres is ancient. Starting from 500 AD the pages of
textile history have grown richer. With inventions and technical advancements to reach where it
stands today. Silk culture was introduced in India in times a ancient as 400 AD, while reports of
spinning of cotton date of Hemp, know perhaps as the oldest fibre plant that originated in south-
east Asia, and spreads to china, dates back to 4500 BC.

TEXTILES AS A GROWING INDUSTRY

Textiles and woven fabrics are used worldwide in a wide variety of applications such as the
apparel industry, household textiles, and furnishings medical items, industrial uses and technical
products. The global textile market stands high, with the fabric weaving consumption reaching

2
about 28 million tons of fibre every year.It has been predicted that global production of woven
products will grow by 25% between 2002 to 2010 reaching more than 35 million tons.
TEXTILES MACHINERY
The world economy is imprinted with rich history of the Textiles industry and its evolution and
progress since ages. Weaving is one of the oldest crafts that have surveved till date, dated back to
the Neolithic ages, at most 12000 years back. It is true that man’s need for clothing, since first
sign of civilization and the spinning of wool fibre into yarn and the weaving of cloth has led to
development of new technology for the textile industry.

EARLY SPINNING
The early textiles fibres available for spinning into yarn and then weaving into cloth was wool
from the sheep. The spinning process used to be divided into two primary stages. The fluce is
opened to create a silver of fibre which can be drawn out to produce a fine thread. It used to be
then twisted into yarn. The yarn was afterwards wrapped on to a stick a flywheel added at the
lower end to produce a spindle. This led to the development of spinning wheel in India first and
then reached Europe during the late 14th century.

THE LOOM HISTORY

The first loom history is believed to have been simple with a straight tree branch running parallel
to the ground. The lengthwise wrap threads were hung from the branch weighted at their lower
ends and weft threads interlaced to create a rough textured cloth. It was later switched to
horizontal orientation. Leonardo Da Vinci is known to have designed a mechanical loom to be
driven by water power during AD 1080. .

TEXTILES MECHANISM
Many important inventions took place during the 16 th century, often having important spin off
effects on other parts of the overall process of textile manufacture. Kay’s device became
immediately unpopular with weavers because of their fear of losing their jobs. It was soon
realized that the use of Kay’s invention would drastically change the world, make cloth
expensive and more readily available for masses. The first enhancement in the early spinning

3
machines came in 1737 when Lewis Paul and John Watt invented the roller method of spinning
which made the spinning of yarn possible without having to work it with the fingers.
The spinning mule was invented by the Spinner Samuel Crompton, from Boston, after year 1779.
The device combined the features of both the spinning Jenny and the water frame. The
improvement in the spinning technology soon made it possible to produce yarn much faster than
the woven yarn. During the middle of 1780, Edward Cartwright invented the first steam powered
loom to further enhance production.

PRESENT CONDITION OF THE INDUSTRY

The growth of the cotton spinning sector, in terms of capacity, received an impetus in 1991 with
the deli censing of spindle age. Installed spindle age has been rising steadily age has been rising
steadily since then, in 1991, the number of spindles installed was around 26.27 million and the
number of went up to nearly 50 million in 1995 (in the non-SSI units). The total spindles
installed by 2007 are estimated to have gone up to 400 million. However, adverse factors such
as the South Asian Crisis, worldwide economic slowdown and increased costs hit the spinning
industry which could not benefit from the expanded capacity. The phenomenal rise in raw
dimension to the economics of the spinning sector.

All these were reflected in stagnant production in the past eight years. Cotton spun yarn
production (excluding blended and 100 percent non-cotton yarn! Declined from 2.213
million kg in 1997-98 but recovered to 2.266.86 million kg in 2000-01 liable II). Spindle
capacity utilization, which was 76 percent in 1991-1992, had gone up to 86 percent in 1996-1997
fell to 79 percent in 2004-2005 before bouncing back to 83 percent in 2005-2006.

The share of spinning capacity of South Indian Mills (include small scale spinning units) in All
India capacity is estimated to be around 50 percent. As on march 31, 2006, the spinning capacity
was 57.41 million. During 2005-06, while the power loom sector had consumed around 24
percent was exported.

A major portion of cotton yarn exports is to the non-quota countries. While it started with fine
counts, a wide range of counts are being exported now. In 1991, exports to quota countries were

4
31.62 million kg and to non-quota countries 89.49 million kg. In 2006, these were 57.41 million
kg and 1521.33 million kg respectively. Thus the percentage of exports to quota countries came
down from around 2.6 percent in 1991 to about 17 percent in 2006. during 1994-2006, some of
the major destinations for Indian cotton yarn exports had been South Korea, Bangladesh and
Hong Kong. According to a report on “Achieving Breakthrough Growth in Cotton Textile
Export”. India has a large and modern spinning industry and a major portion of its capacity is in
the organized sector.

The cotton yarn spinning units could capitalize on the growth in yarn imports expected in key
Asian destinations. According to the Chairman of Southern India Mills Association (SIMA),
there has been a revival both in the domestic and export markets. However, if the revival is to be
sustained, certain issues need to be addressed, he feels.

The Chairman of Textile Export Promotion Council, says a major step needed is to reduce the
cost of production. The cost of almost all components---power, raw material, transport and
labour----has gone up during the last four or five years. The total cost of production of cotton
yarn in ring spinning (80s) in 1995 was about Rs. 178.40 a kg. In 2006, it had shot up to
Rs.1776.54 a kg. In order to make availability raw cotton of good quality at reasonable price, the
price, the thrust is on “integrated cotton farming” now. On the growth of the industry should get
power at international cost. India has a 24 percent share in the global cotton yarn market and this
can be increased further if the power cost is less, he claims.

There is also a need to increase the productivity to most international competition. Some of the
textile industries can be divided as follows:
 Awning, textile
 Blankets
 Bags or sacks, textile
 Blind textile
 Canvas goods
 Cordage piece good
 Rope (except wire rope)

5
  Sail cloth
 Sewing thread
 Soft furnishing
 String
 Elasticized fabrics
 Tarpaulins
 Fabrics textile
 Tents
 Felt (except floor covering)
 Textile n.e.c
 Glass fibre fabrics
 Thread
 Household linen
 Towels
 Lace
 Trimming, textile
 Narrow fabrics
 Yarns
 Netting textile

With advent of new techniques in the sphere of production, the meaning of word “Textiles” has
also undergone some changes. Textiles, therefore really means any materials made from the yarn
either by adopting a process of weaving or knitting. The textiles industry is very much
complex and have such an important bearing on our daily lives that everyone needs to know
something about them.

In India textiles is the second largest business giving employment field after agriculture and
largest foreign exchange earners. Mumbai is the Manchester of India. Manchester is the city in
U.K. which discovered many Textiles items like automation of handmade into machine made.
Mumbai, Chennai, Delhi, Kolkata, , Ahmedabad, Tirupur, Cannanore, Panipet, Madurai, ,
Bhavani are the main export centers of India.

6
Industry leaders
KKP Group of companies
KKP Group of companies is located at Namakkal. KKP Group has been serving international
customers for 20 years. The bulk of their customers are Garment manufacturers who are very
fastidious about quality, price & delivery schedule.

It is owned & operated by the family members itself but they promise friendly service and
commitment to customer satisfaction. made-ups, ability to understand the client’s needs,
perception of eye catching and attractive designs, deep knowledge and understanding of
technology involved, combined with hands on experience at the shop floor level, contributed to
the growth of clientele and expansion of the group. The product ranges are Cotton Yarn, Grey
Fabrics, and Made-Ups. Mr.K.K.Periyaswamy ventured into textiles by buying a small unit
having a capacity of 2000 spindles in 1983. Today KKP Group has grown from a 2000 spindle
unit to 80000 spindle unit parallel developing in house manufacturing facilities for Weaving and
Made-Ups.

Their passion is to achieve top quality in spinning, weaving and manufacture. The mill was
commissioned in the year 2008 with 12096 spindles as initial stage and finished with 16128
spindles and planned to go up to 32000 spindles within a very short period. The promoters of the
company have a long presence in the weaving industry.

They are into the manufacture of sarees, dhotis, garments, and some textile catering to
international and domestic markets. KKP group of companies is a brand new spinning mill with
state of art machineries from TRUTCHLER, LMW, SAVIO and very well designed with neat &
clean environment which is essential for getting high class yarn quality. The mill is situated in
Namakkal with very strong and vibrant team of Textile Professionals for the production of
“POLYESTER – VISCOSE” blended products with internationally acceptable quality with
"STATE OF THE ART" spinning technology, our infra-structure facilities are on par with
international textile standard.

7
Mouli Spinner Limited
Mouli Spinner Limited (MSL) was set mainly to cater to the Trends in the Manufacture of
Variety of Yarns. Basically, the Managing Directors and Directors of the Company are
integrated in Textile Business more than Twenty five years is well known Brands of Synthetic
Fashion Fabrics and Garments.

MSL is build on the vision of providing customers “ REAL VALUE FOR MONEY”. Mainly our
focus is on Value Addition rather than Volumes. We are known in the Market for our Hosiery,
wary, Twisted and Variety of Fancy Yarns. It has been able to keep its prices Competitive by
controlling the quality. It takes several cost effective measures at all levels of operation.A very
highly dedicated team and best systems was set up in MSL and it is mostly Concentrated on
Improving its product.

Operational efficiency of the spinning mill attained by taking effective preventive maintenance
of the role, improving the work practice and House keeping. A very high transparent and
effective communication at all the levels helped upto win the confidence of workers and get their
co operation in developing our MSL to great. Customer service got top priority, regular
feedback and surveys helped MSL in enhancing customers Relations.It is fully satisfied its
customers are exceeding their expectations and offering their innovative products at most
affordable prices. New Yarns having different blends shades, Structure were developed for the
customers should get “Value for Money”. Practical approach in decision making and mutually
beneficial supplier relation was the Reasons for the Success of our MSL

Gangotri Textiles Limited

Gangotri Textiles Limited, a vertically integrated textile unit has world class in- house facilities
from processing yarn to manufacture of finished garments. It was established at the year of 1989.
With a clear vision, a sense of purpose and sheer hard work, guided by a team of professionals
and steered by an enterprising management, Gangotri continues to diversify its products and
extend its customer reach.

8
Gangotri began its textile journey with dealings in cotton waste and today its world renowned for
its branded garments-tibre. Under the dynamic leadership of Sri. Manoj Kumar Tibrewal,
Managing Director of the Company, the promoters personify the true spirit of enterprise and
have in just over a decade established reputation par excellence with interests ranging from yarn
to branded apparel. GTL currently has an installed capacity of 5,904 rotors, which makes it a
large- sized player in the organized segment of the OE spinning industry.

GTL's business model is thus spread among home textiles (through open- ended yarn and ring
spun yarn), Knitting (hosiery yarn) and garments (tibre brand trousers). GTL has also set up
wind mills with a total capacity of 3.30 MW and an oil based power generation plant of 2 MW
capacity. The Spinning Division presently has 4 units out of which three units are located in
Tamil Nadu and one unit is located in the state of Maharashtra. The Garment units are also
located in the state of Tamil Nadu.

The Company started its manufacturing operations in the year 1993–94 for manufacturing low-
count/coarse yarn made from cotton and recycled waste using OE spinning. Over this period the
Company has steadily grown and expanded into other related segments of manufacturing yarn in
fine counts and RTW segment. Gangotri incorporates the latest technology with hi-tech
machinery to produce the finest variety of textile products.Our range of machinery includes the
latest from world renowned manufacturers like Trutzschler, Elitex, Schlafhorst, Rieter,
Volkmann, LMW Uster and Trumac in the spinning category and Durkopp Adler, Kansai, Juki,
Pegasus, Kumsung, Stalwart and Nagaishing in the ready made garments category.

Emes Textiles
Emes Textiles (p) Limited, a vertically integrated textile unit has world class in- house facilities
from processing yarn to manufacture of finished garments. It was established at the year of 1995.
With a clear vision, a sense of purpose and sheer hard work, guided by a team of professionals
and steered by an enterprising management, Emes Textiles (p) Limited continues to diversify its
products and extend its customer reach.

9
Emes Textiles (p) Limited began its textile journey with dealings in cotton waste and today its
world renowned for its branded garments-tibre. Under the dynamic leadership of Mr. R.
Subramanian, CEO of the Company, the promoters personify the true spirit of enterprise and
have in just over a decade established reputation par excellence with interests ranging from yarn
to branded apparel. Emes Textiles (p) Limited currently has an installed capacity of 5,904 rotors,
which makes it a large- sized player in the organized segment of the OE spinning industry.

Emes Textiles (p) Limited 's business model is thus spread among home textiles (through open-
ended yarn and ring spun yarn), Knitting (hosiery yarn) and garments (tibre brand trousers).
Emes Textiles (p) Limited has also set up wind mills with a total capacity of 3.30 MW and an oil
based power generation plant of 2 MW capacity. The Spinning Division presently has 4 units out
of which three units are located in Tamil Nadu and one unit is located in the state of
Maharashtra.

The Garment units are also located in the state of Tamil Nadu. The Company started its
manufacturing operations in the year 1995–96 for manufacturing low-count/coarse yarn made
from cotton and recycled waste using OE spinning. Over this period the Company has steadily
grown and expanded into other related segments of manufacturing yarn in fine counts and RTW
segment.

Thangavelu Textile Mills Ltd.,

The unit Thangavelu Textile Mills Ltd., was started during the year 1993 by the promoters who
were already owners of another Textile Mills at Dharmapuri District. The place where it is
started is though situated just six kilometers away from the heart of the city is not improved
financially and in respect of other areas. Besides, the working men and women of this area were
dependent for livelihood mainly on building construction work and loading and unloading
works.

Availability of employment for them was irregular and inconsistent which made their livelihood
precarious. When the company was started it had capacity 10,000 spindles and engaged in the
manufacturer of cotton yarn. These products catered to the fabric manufacturer in and around

10
Shree. With the sound knowledge of the promoters, the company could establish its brand.
During 1998, competition among cotton yarn spinning mills grew rapidly. In order to maintain
its performance in the area of sales and profitability, the company explored newer avenues.

It found slightly changing the product mix would be in tune with its existing operations the
product currently being manufactured is supplied to garment manufacturers. The classification
of the product are 40s, 50s, 42s, 52s, 56s in single, double, triple, ply. The ratio of men to women
is 2:1.

MARKET SHARE:

On the growth of the industry should get power at international cost. India has a 24 percent share
in the global cotton yarn market and this can be increased further if the power cost is less, he
claims. There is also a need to increase the productivity to most international competition.
The share of spinning capacity of South Indian Mills (include small scale spinning units) in All
India capacity is estimated to be around 50 percent. As on march 31, 2006, the spinning capacity
was 57.41 million. During 2005-06, while the power loom sector had consumed around 24
percent was exported. A major portion of cotton yarn exports is to the non-quota countries.

While it started with fine counts, a wide range of counts are being exported now. In 1991,
exports to quota countries were 31.62 million kg and to non-quota countries 89.49 million kg. In
2006, these were 57.41 million kg and 1521.33 million kg respectively. Thus the percentage of
exports to quota countries came down from around 2.6 percent in 1991 to about 17 percent in
2006. during 1994-2006, some of the major destinations for Indian cotton yarn exports had been
South Korea, Bangladesh and Hong Kong.

According to a report on “Achieving Breakthrough Growth in Cotton Textile Export”. India has
a large and modern spinning industry and a major portion of its capacity is in the organized
sector. The cotton yarn spinning units could capitalize on the growth in yarn imports expected in
key Asian destinations. According to the Chairman of Southern India Mills Association (SIMA),
there has been a revival both in the domestic and export markets. However, if the revival is to be

11
sustained, certain issues need to be addressed, he feels. The Chairman of Textile Export
Promotion Council, says a major step needed is to reduce the cost of production. The cost of
almost all components---power, raw material, transport and labour----has gone up during the last
four or five years.

The total cost of production of cotton yarn in ring spinning (80s) in 1995 was about Rs. 178.40 a
kg. In 2006, it had shot up to Rs.1776.54 a kg. In order to make availability raw cotton of good
quality at reasonable price, the price, the thrust is on “integrated cotton farming” now.

MARKET PERFORMANCE:
All these were reflected in stagnant production in the past eight years. Cotton spun yarn
production (excluding blended and 100 percent non-cotton yarn! Declined from 2.213
million kg in 1997-98 but recovered to 2.266.86 million kg in 2000-01 liable II). Spindle
capacity utilization, which was 76 percent in 1991-1992, had gone up to 86 percent in 1996-1997
fell to 79 percent in 2004-2005 before bouncing back to 83 percent in 2005-2006. With advent
of new techniques in the sphere of production, the meaning of word “Textiles” has also
undergone some changes.

Textiles, therefore really means any materials made from the yarn either by adopting a process of
weaving or knitting. The textiles industry is very much complex and have such an important
bearing on our daily lives that everyone needs to know something about them. The growth of the
cotton spinning sector, in terms of capacity, received an impetus in 1991 with the deli censing of
spindle age. Installed spindle age has been rising steadily age has been rising steadily since then,
in 1991, the number of spindles installed was around 26.27 million and the number of went up to
nearly 50 million in 1995 (in the non-SSI units).

The total spindles installed by 2007 are estimated to have gone up to 400 million. However,
adverse factors such as the South Asian Crisis, worldwide economic slowdown and increased
costs hit the spinning industry which could not benefit from the expanded capacity. The
phenomenal rise in raw dimension to the economics of the spinning sector.

12
In India textiles is the second largest business giving employment field after agriculture and
largest foreign exchange earners. Mumbai is the Manchester of India. Manchester is the city in
U.K. which discovered many Textiles items like automation of handmade into machine made.
Mumbai, Chennai, Delhi, Kolkata, , Ahmedabad, Tirupur, Cannanore, Panipet, Madurai, ,
Bhavani are the main export centers of India.

Estimation of earning
TNPL is setting up a 2 Lakh MT capacity Double Coated Multilayer Board Plant at a capital
outlay of Rs 1500 Crore in Mondipatti Village, Manaparai Taluk, Trichy District. The project is
expected to be completed by December 2015.

During the quarter ended 30/06/2014, TNPL has produced 90297Mts of Paper. The turnover
during the quarter is `479.01 Crore against `503.95 Crore in the previous year. Profit before Tax
(PBT) is ` 36.24 Crore against ` 42.65 Crore in the previous year. `38.03 Crore has been
provided for depreciation and 33.65 Crore for finance charges. Profit after Tax (PAT) is `
26.23 Crore against `32.18 Crore in the previous year.

Expected growth of industry

Globally, demand of textile is unevenly distributed as nearly 70% of the world's textile is
consumed by 22% of the world's population - in the US, Europe and Japan. The world demand
for textile is expected to grow by around 3.2% annually, reaching an estimated 500 million tons
by 2020, with significant growth coming out of Asia and Eastern Europe. There is a paradigm
shift in the global textile industry, with Asia continuing to grow faster than the rest of world.

This trend is expected to continue in 2017, with developing countries expected to grow by 6%.
More significantly, China and India are expected to outpace and register higher than the regional
average growth. Developed countries are expected to report a flat demand growth, as against a
2% decline they saw in the past two years. India is likely to be one of the fastest rising markets at
an estimated 6.5% growth. Such shift in demand, coupled with relatively low per capita
consumption of paper in India offers attractive opportunities for textile industries.  The Indian
economy made significant strides over the last few years with gross domestic product (GDP)

13
projected to grow at an average of 6.5% in 2013-14, keeping the country as one of the fastest-
growing economies of the world. India is the world’s third largest economy in terms of the
purchasing power parity (PPP) and has investments amounting to nearly USD 1 trillion lined up
in partnership with the private sector over the coming years.

The largely broad-based nature of the country’s economy is represented by the fact that
agriculture accounts for 17%, industrial 18% and services-based sectors 65% (Source : IBEF). 

Scope of the industry

The scope in textile consumption is directly related to GDP growth in the country. In the past, it
has shown the 1:1 relationship with the GDP growth rate. With expected GDP growth of 9-
9.5%, the demand for textile is expected to grow at the same rate. Continued availability of raw
materials would be a big challenge for the industry in the next 5-10 years.

According to textile Association (IPPTA), the textile industry is expected to fall short of demand
by 1.1 million tonnes by 2010-11 due to raw material constraints. According to ITC’s estimates,
the total demand for textile is around 8.0 million tonnes and is expected to grow to 10.0 million
tonnes by 2012 and 21.0 million tonnes by 2020. According to Indian textile r Manufacturers
Association (ITMA), consumption of textile in India is set to double from the current 7.0 million
tonnes per annum by 2015.

14
 COMPANY PROFILE

Shree Textiles (STL), incorporated in July 1964, was promoted by N Ramasamy Udayar and his
associates. It commenced production in 1967 with 6000 spindles. The capacity of the plant
increased over the years and reached 40,468 spindles and 744 rotors in 1992-93. The Main
objects of the company is to manufacture cotton and other types of yarn. Shree Textiles Limited
manufactures and sells yarn in India. It offers polyester blended yarn and polyester yarn. The
company is based in Shree, India.

The company produces cotton carded and combed yarn as well as special high-value-added yarn
with counts ranging from 16s to 100s.R Prabhakaran is the Managing Director. STL came out
with a public issue (premium: Rs. 30) aggregating Rs. 7.80 cr, in Mar.1993. The amount was
raised to set up a joint venture in Malaysia for dyeing and processing yarn with an installed
capacity of 11.2 lac kg p.a and to undertake a project for manufacture of melange yarn and
optical white yarn.

The project had been set up at a cost of Rs. 1.50 cr. The joint venture project at Malaysia faced a
setback due to the death of Malaysian Promoter and the depressed global markets. Due to erosion
of net worth the company has been referred to BIFR as per the provisions of SICA. The hearing
of the case is awaiting and the company is expecting that it will be declared as a Sick Industrial
company by the Board.

The expansion over the years was carried out by the company from term loans from financial
institutions and internal accruals. The company had also been continuously modernizing its plant
and machinery to include state-of-the-art equipment for the manufacture of high quality yarn to
conform to the international standards.

Location

The company’s unit is located at Selliyampalayam, Narasingapuram, Attur , with an area

measuring 4 acres of freehold land. The unit has an installed capacity of 45,732 spindles with
facilities provided with combed, corded and hosieries and double yarn. The unit has got adequate

15
existing infrastructure facilities such as labour, power and water. Shree is a leading center and is
also advantageously located for getting adequate supply of raw materials.

Buildings

The unit of the company is having a buildup area of 2,86,940 sqft of class I-type construction
with AC roofing. The company is responding its existing building are unit II by 1,68,000 sqft to
accommodate the additional machinery. The consumption is of class I type with AC roofing.
This unit is started with a spindle capacity of 3000,now it has grown into a unit having an
installed capacity of 45732 spindles. The unit has also obtained ISO 9001:2000 certifications
from SGS (INDIA) Ltd., for its high quality system.

This mills having the lab facility for testing (RDF) which was the only one in this mill in our
country. No other mill not having these facility which was only in medical company. National
Board of Lab was setup this lab facility. The company has sound track record of productivity
and profitability has been regular in modernizing its units. At present atmost all machines at its
existing units are fully modernized. The company’s products are well recognized in the local and
international markets.

Shree Textiles Limited is one of the leading 100 percentage quality cotton yarn product in south
India located in the heart of Shree, Tamil Nadu, India. Shree Textiles Limited has its successful
background for the past 20 – 30 years in the yarn market because of its following policies.

 Highest quality standard

 Absolute committed maintenance
 A dynamic infrastructure
 The vision of perceive and the ability to achieve
 Continuous result based refreshing and training
 Customer requirement and awareness in made to gross root level work force
 Fully equipped, ultra modern machines
 Cordial relationship with work force enjoyed over years.

16
Shree Textiles Limited has got its ISO 9002 certification for quality system and maintenance for
the past four years and there are marching towards TQM and TPM. The company has earned and
editable reputation. Commitment to quality in every aspect of operation is what has brought
Shree Textiles Limited into the lime light. Shree Textiles Limited has a growing client.

Turnover

Turnover is around approximately 5 crores per annum and be hope it will increase for following
years of its improved time stamp operation.

1986 - Till date 1,60,729 shares allotted as bonus shares (91,500 shares on 8.9.1975 ; 69,229
shares on 28.11.1981). 8,76,493 shares were allotted to promoters.

1990 - The company had taken up a modernization scheme which was financed out of term loan
from financial institutions and the balance from internal accruals. It raised funds through public
issues. The Main objects of the Public Issue is as follows:

(1) To part finance the investment in the proposed joint venture company.

(2) To extend deferred credit facility for purchase of Indian machinery for the proposed joint
venture company.

(3) To meet the cost of setting up a fore dyeing unit at Trichy.

(4) To meet a part of the working capital requirements and capital expenditures.

(5) To enable Company to have its shares listed on the Stock Exchanges.

1991 - The company received permission to set up 100% EOU for manufacture of cotton yarn
with an installed capacity of 10,560 spindles. In August the company issued privately to UTI
non-convertible debenture for Rs. 175 lakhs carrying interest of 20% per annum.

1992 - The company proposed to set up a processing unit at Mathur in Pudukottai district of
Tamil Nadu for dyeing of fiber with an installed capacity of 9,000 kgs. per month. The company
is planning to set up a spinning mill at Karaikal with an installed capacity 21,600 spindles.

17
These debentures are redeemable at a premium of 5% in three equal annual installments
commencing from 27th August, 1998.

A joint venture Company under the name Shree Textiles & Dyeing was incorporated at
Malaysia for dyeing and processing of yarn with an installed capacity of 11.20 lakh kgs. per
annum. This joint venture was promoted by the Company with foreign collaborators - Islamic
Council, a quasi Government body and Adam Abdul Ahad, Malaysian Industrialist.

The entire yarn requirement will be supplied by the company and processed by the joint venture
into dyed yarn for export to other countries.

Vision
"Together we create the enterprises of tomorrow".
Mission

" To decide setting up other units in several areas”

Main objective of the companies:

The objectives of the company are fully set out in the memorandum and articles of
association. The main objectives are as under.

 To carry on the business of wrapping and sizing, processing and finishing Mills in
cloth, cotton, yarn, silk, artificial silk, stable fiber, Polynesia fiber, polypropylene
fiver, Rayon, Wool, Flax, Hemp, Jute and other fibrous substance’s.

 The process comp, prepare spin dye and deal in cotton, waste cotton yarn, wool,
silk, artificial silk, stable fiber, polynoic fiver, rayon, flax, hemp, jufe and other
fibrous substances to weave or otherwise manufacture cloth silk linen, mercerized
yarn and other goods fabrics, whether textile, felted, netted are looped, sell and
such goods manufacture whether in whole sale or in retail.

18
  To carry on the business of cloth, cotton yarn, waste cotton silk, artificial silk,
staple fiber, polynoic fiber, polypropylene, rayon, flax, hemp, jute, worsted and
woolen merchant of yarn and cloth merchants and buyers, sellers, dealers,
commission agents, brokers, exporters and importers, whether in wholesale or in
retail of cloth waste cotton, cotton yarn, line, wool, silk, flax, hemp, jute and other
fibrous substance’s

SWOT ANALYSIS

   STRENGTHS: 

• standard quality of the product.

• Better working environment.

• Satisfied workers with good salary.

• Very high profit from International markets during peak season.

• Top level management involvement & coordination with employees.

    WEAKNESSESS : 

• Wastage of high level raw materials.

• No disciplinary action taken for late comers. 

• Less promotional activity.

• Shortage of power and water.

• There is no direct export to abroad.

  OPPORTUNITY : 

• Lot of unexplored markets.

• Proper time allocation. 

• By concentrating on promotional activities the company can increase the sales.

• To do direct exporting. 

19
   THREATS : 

• Frequent changes in government policies.

• More competitors (because with in our company locality there are 38 competitors)

• More wastages in raw materials.

Infrastructure

Knowing the fact that the progress of a company lies in its infrastructural base, we have
developed a robust infrastructure unit. Its sound infrastructural base is well furnished with latest
technology machines and equipments that assist us in providing high quality products to the
market. To bridge the gap between the need and supply, we constantly update the methodology
of production.

Strength of Shree Textiles (P) Ltd.,

 Profound Experience & Knowledge  Right Business Ethics

 Superior Quality Products  Worldwide Network

 On Schedule Delivery  Competitive Prices

Board of directors

Name Designation

R Prabakaran Managing Director

B Venkatesan Director

V Subramaniam Director

20
BANKERS

ICICI Bank, Chennai.

The Hongkong & Shanghai Banking Corporation Limited Chennai.

The Karnataka Bank Limited, Shree.

FINANCIAL INSTITUTIONS

ICICI Limited , Coimbatore.

IDBI Limited, Chennai.

IFCI Limited, Chennai.

IIBI Limited, Chennai.

AUDITORS

Messers. Elangovan & Natarajan

REGISTERED OFFICE

Selliampalayam

Narasingapuram Post, Attur - 636 108

Shree District, TamilNadu.

Goal of the company:

Striving for excellence in every sphere of company activities.

21
QUALITY POLICY

Good quality:
Best, which saves the cost and time for customer.

Best service:
Customer friendly in fulfilling their requirements.

Steady development :
Up gradation in technology and diversification for value addition.

Objectives of 5s system :
 A clean work place is high in ‘productivity’
 A clean work place has high ‘quality’
 A clean work place ensures delivery on ‘time’
 A clean work place is safe for people to ‘work’
A clean work place is high in ‘morale’

22
 ORGANISATION CHART

Managing Director

HR Produc QA Market Finan

Dept tion Dep ing ce
Dept t Dept Dept

General Manager

Operat Manag Materi Financ HR Market

ion er als e Manag ing
Manag Q&A Manag Manag er Manag
er er er er
Mainte
nance
Manag
er

Executives
Executives Executives

Officers
Officers Officers

Operators Technician

23
PRODUCTS

Home Furnishings

• Curtains

• Cushion covers

• Table linen

• Mats & throws

• Kitchen linen

• Bed linen

• Towels

• Bed sheet sets

• Cotton napkins

• Cotton bags

• Men’s garments

• Hotel linens

• Hospital bed linens

• Flexible intermediate bulk containers

OTHER PRODUCT PROFILES ARE AS FOLLOWS:

Bed Sheet Sets

As a trusted Cotton Bed Sheet Sets Manufacturer, it offers an exclusive collection of Bed Sheet
Sets. Its Bedding Sheet Sets are fabricated from the premium quality fabric to assure their easy
washing and maintaining. Bedroom Sheet Sets provided by it are available in varied attractive
designs and patterns to suit the ambience of its bedroom.

24
Cotton Napkins

It provides a large range of wonderful Cloth Napkin that is available in plethora of colors and
designs. Its Cotton Napkins are manufactured from the finest quality cotton, under the guidance
of experts. Organic Cotton Napkins, provided by it, are available in a variety of colors and
designs. Its Cotton Cloth Napkins are the fine blend of contemporary trends and imagination
that compliment any kind of decor.

Cotton Bags

It unveil a huge assortment of lovely Printed Cotton Bags that is in high demand in the market
for quality and utility. Its Cotton Shopping Bags are made up of superior quality cotton using
latest methods of production. Eco Friendly Cotton Bags, provided by it, are easy to wash and do
not loose their colors.

Men's Garments

It offers a wide variety of Men's Garments that are fabricated from quality cloth & material. Its
collection of men's Fashion Garments includes Full Sleeves Shirt, Half Sleeves Shirt, Formal
Shirts, Casual and Design Shirts skillfully stitched and comfortable to wear.

Hotel Linens

The company is listed at the apex in the list of the prominent Hotels Fine Linen Exporters from
Tamil Nadu, India. The Hotel Linen, offered by it, is widely demanded in the market as no
alternative is available in terms of quality and look. It specializes in manufacturing bedspreads,
bed linens and hotel supplies.

Hospital Bed Linens

It offers VAT and Reactive Dyed Hospital Bed Linen which is well renowned for highly
absorbent quality. It is listed at the apex in the list of the forefront Hospital Bed Sheets Linen
Manufacturers in India. The use of optimum quality fabrics in the manufacturing of the Hospital
Linen Products ensures lightweight, softness, easy wash and long lasting life.

25
 CHAPTER IV

FINANCE DEPARTMENT

FINANCE AND ACCOUNTS DAPARTMENT IN SHREE TEXTILES

Finance statement is primarily for decision making. It is an organized collection of data
according to logical and consistent accounting procedures. Information provided in the financial
statement are immense use is making decision through analysis and interpretation of financial
analysis is the process of identifying the financial strength and weakness of the firm by property
establishing relationship between the item of balance sheets and profit and loss account.

Finance is the life blood of an organization. Without finance we can’t do anything.

Finance is only part which brings together various segments of an organization which helps to
attain organizational goals. Finance manager is the top authority in financial work. He has equal
rights and responsibilities in general matters like the managing director of the company. The
finance manager has assistant and system officer under him to assist in his daily activities. Senior
assistant has accountant and office assistant under him. The account is responsible for the daily
financial transaction of the organization and payroll management.

STARATEGIES OF FINANCE DEPARTMENT IN SHREE TEXTILES

The strategies of the finance and accounts as follows
 To establish the amounts of funds required for achievement of the objective and
determine the obtaining funds
 To ensure that the profits earned by the company are disposed of the best advantages
of the share holders and company
 To achieve maximum efficiency in the enterprise through proper planning,
organization, control of financial resources.
 To achieve and secure safely investment
 To raise and maintain funds at the lowest cost possible

26
SWOT ANALYSIS:

Strengths:

 Very high profit from International markets during peak season.

 The company has a sound financial base mostly through plough back of earnings

Weakness:

 company’s plants are locating in south and west parts of the country resulting into higher
transportation cost to serve other geographical areas.
 Effect of Historical Government Policies
 Lower Productivity and Cost Competitiveness
 Wastage of high level raw materials.

Opportunities:

 Concern has reputation among financial institutions to get financial assistance

Threats :

 Frequent changes in government policies

 Govt. Taxation policy – against manufacturing sectors
 There is high incidences of taxes on products both direct and indirect taxes
 Industry attracts very high taxes as the govt. does not consider it high priority area.

FUNCTIONS OF FINANCE DEPARTMENT IN SHREE TEXTILES

The function of the financial department of Shree Textiles Ltd., are as follows:
 Collection all information’s from various monthly comparisons statement every
month
 Comparison of revenue accounts with the budget proposes.
 Capitalization of fixed assets projects and calculation of depreciation for them
 Preparation of bank reconciliation statement
 Checking cash flow position
 Verifying and making the payment for excise duty sales tax

27
  Computation of deduction of tax at source ,filing of forms issue of TDS certificate
 Tax planning and tax management of the company.

Structure of Distribution of Cash

Finance Department

Production Personnel Marketing Stores Sample

[sales &
purchase]

Structure of Finance Manager

Finance Manager

Accountant Auditors Cashier Clerks

Assistant

Accounting policies adopted by Shree Textiles Ltd:

1. Basis of accounting:
Financial statement is prepared under the historical cost conversion and on annual
basis.
2. Fixed assets:
Fixed assets are started at their historical and accumulated depreciation their own.
The cost of fixed assets comprises the acquisition cost and any attributable of
bringing the assets comprises those costs that relate that directly to the specific

28
 assets and overheads consistently allocated at predetermined percentage of direct
salaries and wages.

RECORDS / BOOKS MAINTAINED BY SHREE TEXTILES LTD:

Inspection

Posting in stock ledger

(Raw jute consumption Book)

(Daily record is maintained)

Monthly statement –How much stock is there.

Yearly statement

Per annum statement

PRESENT STATUS

1993 - 21,00,000 Shares issued (Prem. Rs. 30 per share) of which 43,750 shares to
UTI and 1,06,250 shares to ICICI were reserved and allotted on preferential basis. Of the
remaining 19,50,000 shares, 50,000 shares taken by employees, were offered to the public in
March. All were taken up.

29
 1995 - Due to depression in Global market and resource constraints faced, the
Company has shelved the project for the time being.

1996 - The company has proposed to disinvest its shareholding in the Malaysian Joint
Venture due to the death of Malaysian Promoter, Mr. Adam Abdul Ahad and the prevailing
recessionary trend in the global market. Consequent to restructuring of production, the company
has proposed to dispose off the processing plant at Trichy.

Shree Textiles Ltd. reported unaudited earnings results for the fourth quarter and year
ended March 31, 2012. For the quarter, the company reported net loss of INR 3.782 million on
net sales/income from operations of INR 15.609 million compared to net profit of INR 1.097
million on net sales/income from operation of INR 19.508 million for the same period of last
year. Loss from operations before other income, interest and exceptional items were INR 3.904
million compared to INR 0.250 million a year ago. Loss from ordinary activities before tax was
INR 3.782 million against profit from ordinary activities before tax of INR 1.097 million a year
ago.

For the year ended, the company reported net loss of INR 11.242 million on net
sales/income from operation of INR 69.052 million compared to net profit of INR 5.117 million
on net sales/income from operation of INR 83.078 million for the same period of last year. Loss
from operations before other income, interest and exceptional items were INR 11.649 million
compared to profit from operations before other income, interest and exceptional items of INR
2.79 million a year ago. Loss from ordinary activities before tax was INR 11.242 million against
profit from ordinary activities before tax of INR 5.117 million a year ago. Sales decline 20.00%
to Rs. 1.56 crore.

Shree Textiles reported net loss to Rs. 0.37 crore in the quarter ended March 2012 as
against net profit of Rs. 0.11 crore during the previous quarter ended March 2011. Sales declined
20.00% to Rs. 1.56 crore in the quarter ended March 2012 as against Rs. 1.95 crore during the
previous quarter ended March 2011.

For the Unaudited full year,net loss reported to Rs. 1.12 crore in the year ended March
2012 as against net profit of Rs. 0.51 crore during the previous year ended March 2011. Sales

30
declined 16.85% to Rs. 6.91 crore in the year ended March 2012 as against Rs. 8.31 crore during
the previous year ended March 2011.

Bonus Summary

The last bonus that Shree Textiles had announced was in 1992 in the ratio of 1:2.

31
 PRODUCTION DEPARTMENT

Structure of Production Department

Production department

Dyeing Weaving Stitching Packing

Lab Technician Technician Supervision Quality Control

Dyer Weaver Cutter Supervision

Dyeing Assistant Foremen Tailor Foremen

Foremen

32
 SWOT ANALYSIS

Strengths

 Products manufactured to international standards.

 The company enjoys a technical advantage by the appropriate investment in fixed assets
especially in the complete range of manufacturing, testing and captive-power
infrastructure.
 Flexible manufacturing systems
 Standard quality of the product.
 Abundant Raw Material Availability

Weakness

 There is inadequacy production capacity utilization

 It has to depend on few suppliers of critical raw materials
 Imports of cheap textiles from other Asian neighbors
 Use of outdated manufacturing technology
 Poor supply chain management

Opportunities
 competitor’s product’s quality is considered to be inferior as compared to our company
 Growing power sector machinery.
 Export potential growing.

Threats

 Competition in Domestic Market

 Ecological and Social Awareness
 Cut throat competition given the demand-supply imbalances in the markets.
 Frequent changes in government policies.
 Some of the critical raw materials to be imported

33
 DYEING DEPARTMENT

Dyeing
Purchasing
 It purchases yarns & fabrics from Tirupur. It also collect yarns from local agency
and spinning mills for dyeing.
 It collect chemical, wetting, oil and salt & soda from Bombay and also from local
agency.
 The chemical used for dyeing should be under MSDS.
 MSDS means Materials Safety Data Sheets. It is registered by the government.
 Steam boiler is operated by using wood. These woods are collected from local
forest.
 It reuse the waste water after reforming

Machineries
 Dyeing machine
7 big machine
2 Little machine
 Big machine capacity 500kgs.
 Little machine capacity 200kgs.
 Steam boiler -- one boiler
 Hydro extruder machine
 Dryer machine
 Salt recovery plant
 Water reforming tank

Dyeing machine
 Fabric dyeing
 Cabinet dyeing

34
  Fabric dyeing
It is used for dyeing the fabric cloth materials.
Company has totally a machine
 Cabinet dyeing
It is used to dye the yarns
Company contain totally a machines.

Steam boiler
 It capacity is 9 ½ tones
 It is operated by woods & other natural fuel.
 It produce steam and pressure to each dyeing machine.

Hydro extruder machine

 Company has totally 4 such machine
 It reduce the water content in the yarns, so it help to dry the yarn quickly.
 It is operated by electricity.

Dryer machine
 Company has only one dryer machine
 It dry the yarn & reduce the time

Salt recovery plant

 It is a group of machine & filters, which separate the salt from the waste water
 The salt separate from the plant is in the form of solution. It is reused for dyeing
process.
 It helps to reduce TDS amount in the waste water.

Water reforming tank

 It helps in purifying the waste water.
Dyeing procedure

35
  The yarn are taken in the stick based on the machine capacity
 The yarn should be first bleached by wetting oil and other chemicals. It helps to
remove the dust in the yarn. The bleaching changes the yarn into white in colour.
 Then the yarn is dyed before that they are washed in salt and soda water. The salt and
soda help to dye the yarn quickly.
 Finally the yarn is dyed by dyeing agent. When yarn should be kept at 60 oC in
colouring and at 90oc for whiting
 Dyeing machine are also called HTHP machine. It means High Temperature and
High Pressure. Machine, all the dyeing activities are done under high temperature
and high pressure.
 Then the dyed yarn is inserted in hydro the extruder machine to remove the water
content.
 After that the yarn is send to dryer machine. In that dryer machine the yarn will be
completely dried within one hour.
 Finally the yarn is altered and stored in yarn good own.

Yarn godown
It is a separate place for placing the unfinished and finished good. The unfinished
yarns are purchased form the purchased and are stored in the godown. It can be used for dying
process later.

Lab work
In lab the yarn can be dyed in small quantity. It is for reference. The order given by
the others gave a sample coloured yarn. To dye the high quantity of yarn, before which a small
quantity of yarn is dyed. It should be a grade simple of 4 to 4.5. The dyer should intimate it in the
invoice form.

Salt recovery plant

36
 It is the plant which separate the salt from the used water [waste water]. A
separate section is allotted for this plant. The waste water is stored in a tank. Time and Feson is
added to the waste water. It separate the salt content in the water. The salt are stored under the
bottom. The water is further filtered and finally a solution like water content is separate from the
waste water. These solution salt water is reused for dyeing process.

Water reforming tank

In normal water only 3 to 5 DTS of salt is found. It gives normal taste & sweetness to
drinking water. When the dyed water is dissolved in the normal drinking water, the water should
contain 40,000 to 45,000 TDS of salt ness. It is not used for drinking & agricultural activities.

The water is first sent to salt recovery plant, the salt content should be reduced, then the
remaining water should be transferred to a large tank for 4 dyeing factory. The jointly the waste
water and then they reformed that water.

Dyeing process
Insert yarns in the stick

Bleaching ( Whiting )

Colouring

Finishing

Hydro extradoring

Drying

Arranging packing

37
Weaving Section Process

Dying yarn

Winding

Rewinding

Warping

Beaming

Autoboming
Weaving Equipments
 Winding machine
 Rewinding machine
 Warping machine
 Beaming machine
 Auto looming machine –16 machine.
Weaving produce
Dyeing yarn is winded by winding machine. It is avoiding tarring of yarn in the yarn
bundle, the yarns are rotated in a small pipe, and then it is used for rewinding.
38
 Rewinding is the next process in weaving, section. It helps to avoid any damage in the
rotated yarn.
Warping machine is used to warp the yarn and also beaming the yarn. These beams are
later attached to the auto loom machine for weaving the fabrics.

Auto looming, in this process the frame are first setted then Repair way setting is done.
After that Repair ribbon setting is done, finally Repair wheel is setted.

In this weaving section, they prepare 50 meters fabrics. They prepare according the
design given by the buyers.

Number of workers in weaving section

 Winding section
25 labours
 Rewinding section
10 labours
 Warping section
5 labours
 Beaming section
4 labours
 Looming section
20 labours

39
 STITCHING DEPARTMENT

Stitching
 They have their own stitching division.
 There are 50 sewing machine and 5 locking machines.
 There are 50 tailors are worked in this division.
 They are well experienced.
 It is about 1000 squire feets with clean atmosphere.

Process
The weaving fabrics and cloths are next send to stitching section, Here the side of the
clothes are cutted by scissor and then they are stitched by high quality thread. In some clothes
button is to be stitched, so the stitch the high quality button in that clothes.

Number of labours

Chief organizer (1)

Supervisor (5) Inspector ( 1 )

Tailors(50) Other labours(10) Machines(2)

Sewing machine
 All the sewing machines are operated big Electricity.
 There are totally 50 sewing machines.
Quality thread is used in these sewing machine for stitching

40
PACKING DEPARTMENT

Packing
In this section packing of the Good for export is being carried out by experienced
employees as per order given by the buyer.

Packing

Fabric checking Packing

 Fabric checking
Quality controller is the person who control and check the quality of the Fabric.
There are different checking take place in this section.

 Greyon inspection
It is the first inspection done before the yarn is send for weaving before this
inspection colour yarn inspection and first piece inspection are done in the dyeing
lab.

 Receiving Inspection
It is done at the time weaving. In this inspection, the quality controllers check the
correct colour for weaving ordered by the buyer.

 Stitching inspection
It is take place at the time stitching. In this checking, the quality controllers check
the usage of correct and quality thread for stitching.
Finishing checking

41
 It is the final check-up made by the quality controller ofter finishing the all
process.

 Packing
The finishing products are packed in well quality carton box before that the
fabrics are put into the poly bag. A labed with all instruction is labeled in the
carton box.

AQL
“Acceptable Quality Level” [2.5]
They are three levels
 Level 1
 Level 2
 Level 3
 AQL is the grade level of the finished goods. It is given at the quality of product
is produced.

Number of labour

Packing manager

Supervisior (7) Inspectors

Workers (70)

Label content

42
 Part or Discharge :
Order Number :
Carton Number :
Cross Number :
Invoice Number :
Consignment Number :
Capacity during transport :
Delivery week :

Carton box
 It is buy from local company. The thinkness of the boxes are arranged according the
need of the buyer.
 IKEA—Swedon certified usage of quality carton box.

43
 Marketing department

MARKETING MANAGEMENT BY SHREE TEXTILES LTD.,

The marketing management of Shree Textiles Ltd., which has process through which goods and
services move from concept to the customer. As a practice, it consists in coordination of
four elements called 4P's: (1) identification, selection, and development of a product, (2)
determination of its price, (3) selection of a distribution channel to reach the customer's place,
and (4) development and implementation of a promotional strategy.

As a philosophy, marketing is based on thinking about the business in terms of customer

needs and their satisfaction. Marketing differs from selling because (in the words of Harvard
Business School's emeritus professor of marketing Theodore C. Levitt) "Selling concerns itself
with the tricks and techniques of getting people to exchange their cash for your product. It is not
concerned with the values that the exchange is all about. And it does not, as marketing invariably
does, view the entire business process as consisting of a tightly integrated effort to
discover, create, arouse, and satisfy customer needs."

Marketing department

Marketing Executive

Marketing manager

44
  The finished product are export to foreign countries like Sweden, USA and Australia
etc,.
 They have domestic markets also
 The company has made arrangements for fabrics and garments made out of yarn
manufactured by the company.
 The garments were launched initially in domestic market under the trade name
ARCADIA which received a good response.

Sales is one of the important in Shree Textiles Ltd., . The ultimate purpose of production is
to them in a high profit besides the primary objective of any business undertaking is to sell the
goods successfully. Secondly the ultimate goal of the proprietor or business undertaking is to
earn optimum profit. It can be achieved by either by increasing sales or decreasing the overheads
to some extends like production, purchasing, finance etc., Sales are making marketing and it
from major portion in these dynamic economics activities and effect to it. Hence sales plays a
viable part company as well in the competitive market.

Sales promotion and others are implemented by effective business and the second one is
waste control and cost control is implemented by the executives and worker of the company.

SWOT ANALYSIS OF MARKETING DEPARTMENT IN SHREE TEXTILES LTD.,:

Strengths:

 timely deliveries
 consistent supplies
 prompt services
 high quality product ranges
 It has a significant and consistent growth over the years.
Weakness:
 It has inadequacy to oppose to foreign market needs.
 It is evolving slowly from small-scale unit to a minimum large market player.
 Increased global competition in the post 2005 trade regime under WTO
 There is no direct export to abroad.

45
Opportunities:

 Globalization and liberalization in India has created new markets abroad for Indian
products
 Lot of unexplored market
 There is increase in scope for specialized and high quality products
 There is no immediate threat of entry by any technically superior company in this
industry sector
 Export potential growing
Threats :

 The rate of demand for increase is not very high

 There is chance to immediate entry after a longer period
 Competition in Domestic Market
Ecological and Social Awareness
Frequent changes in government policies
 Liberalization – Entry of MNC’s / private sector – More compensation

YARN SALES

Yarn is manufactured by spinning unit and taking into current total market requirements,
exports order and yarn required for the weaving unit. Accordingly yarn is manufactured in
opened, cut the sophisticated order machines and through ring frames as per monthly production
programmers chalked out.

DIRECT SALES

The sales concluded directly to the buyer from the seller without any mediator. The
company enters into a contract directly with the buyer. The goods must be sent to the buyer
within the stipulated period as per the contract. The contracts have been entered into the parties
as per the terms and delivery of goods and sending of invoices either directly or through bank
will made. Another copy is sent to accounts department. At the time of receipts of invoices,
accounts department debits the parties account and when the cheque is cleared credit the parties
account. If due means periodical follow – ups are made.

46
To control expenses

The sales of goods is the chief activity for every trading company. And every aspect of a
sales must be adequately and documented. The sequence of operation of sales is as follows.

The enquiries

It should be forward first to the managing director and to the office then he will forward
it to the sales manager who will take appropriate action to follow it up.

The quotation

For the necessary enquiries the company quotation will be given. This is an after to
supply at a price. Goods are of prescribed quantity and prescribed quality.

 EXPORTS
It exports for the finishing product to

 Australia
 Switzerland
 Scandinavian
 Far east & middle east
 USA and
 Other Europe countries.

The wide network of communication channels systematically well connected systems.

The receipt of weaving, stitching etc., are maintained by system. They are 14 system & laptop.
They have telephone connections with intercom Facility connected to various departments
through the receptionist & internet facility either STD / ISD facilities. Apart from this they have
separate e-mail connection and separate fax facility in their firm’s name making effective contact
with their buyers all over the world. They maintain correspondence with their buyers through e-
mail as well as fax.

47
Marketing
At Shree Textiles Ltd., marketing hinges around the simple concept of growing sales by giving
the customer what they want it. For it’s the business, the Company makes direct sales to major
publishing houses, which enables the Company to make prompt and timely delivery. In order to
achieve this, the daily production and dispatch schedule is circulated among all shop floor
members to integrate its manufacturing function with its marketing.

For its , the Company sells its output through a network of dealers located in Kolkata, Patna,
Ranchi, Raipur, Siliguri, Cuttack and Chennai. The strategic location of its dealers enables it to
adequately service demand emerging from these pockets. It also sells its writing and printing
paper through institutional sales to educational and government institutions. At Shree Textiles
Ltd , it empowers its customers to do so consistently through a rigorous supply chain
management that comprises the following features :
• The dedication of parts of our installed capacities to our customers, resulting in output
predictability.
• The replenishment of the customer's inventory as per their requirements (every day to
once a week)
• An ability to cater to unforeseen customer needs through the provision of an adequate and
fresh buffer stock at all times.
• The ability to cater to batches as small as 9 MT to as large as 16 MT
• A month wise production schedule that integrates the requirements of the marketplace
with the reality on the shopfloor.

• The supply of nearly 90% of the production within a 400km radius (across the states of
Orissa, West Bengal, Bihar and Jharkhand)

48
 HUMAN RESOURCE DEPARTMENT

The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administration, kept personal files
and other records, managed the hiring process, and provided other administrative support to the
business. Those times have changed.

The positive result of these changes is that HR professionals have the opportunity to play
a more strategic role in the business. The challenge for HR managers is to keep up to date with
the latest HR innovations—technological, legal, and otherwise.

Its strength is its team of highly dedicated and competent professionals, with a shared
vision of delivering only the best, every time. It is its firm belief that every individual's potential
should be constantly upgraded, through a series of well thought out training programs. It is with
this belief that we have every one of our employee trained in Yoga and Meditation, to uplift them
at both the physical and spiritual plane and importantly, make them better at concentrating
towards, total customer satisfaction.

 Human resource involves in all sources in each and every management activities.
 It is an utilization of human/manpower all the areas in organization i.e., supply of human
in all sources(till first to last stage)
 First step in human resource department is to maintain “ATTENDENCE” of the
employees/worker/labours of organization.

 The promoters are already well-trained in the labour management. The labour
requirement will be met as under :
 Recruiting labour from villages around the factory,
 Procuring labour by buses and vans from nearby villages,
 In-due-course workers’ quarters will be provided inside the factory where at least 60% of
the labour will be given quarters and subsidized, food thus assuring permanent and
quality man-power.

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 It is already reaping the rewards of our truly unique approach, in the shape of our ever
increasing list of satisfied clientele

 While person do over time they can get amount for their work.
 The main work of the HR is to select right person for right job in right time
 Major involvement of HR in all over the organization is necessary to stand best
 HR provides all the basis necessity for its workers
 Welfare schemes like
 ESI – Employee State Insurance
 PF - Provident Fund
 Medical facilities for their family members
 Providing loans etc.,
 When the new person joint into concern HR provides welfare for them in
following way:
 Training – training according to their knowledge and capacity
 Offer( placement) – fixing them in a job according to their eligibility

 Proper fans and lighting facilities is provided for each labour & staffs.
 Incentives are provided to the staff and labour.
 First and facility is provided.
 Company gives bonus to all the labours on the month of October only.
 It gives increment on the month of April in each year to the labours.
 It create transport facility to distance labours.
 Company gives shoes, masks & Helmets to dyeing labours.
 Company made a medical check-up to all the labours in each year.
 Company supply clean and taste drinking water.Every year increment and bonus
are provided for workers.
 Giving common uniforms for workers, cap, mask etc., for their welfare

 Transportation facilities are provided for them

 Each and every department trainer is appointed to train new employees
 In training period all safety measures are coached them

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  Maximum training period was 15 days
 According to casual person it increases
 According to their working capacity they get “permanent”(P.T)

SWOT ANALYSIS:

Strengths:

 Team work is one of the essences of its’s ability to success as a trusted preferred supplier.
 Highly motivated and well trained employees.
 Low Cost Skilled Labour
 Better working environment.
 Satisfied workers with good salary.
 Effective management systems with confidence and mutual faith, from the top to the
bottom of the organization structure.
 Top level management involvement & coordination with employees.

Weakness:
 Excess manpower
 Inadequate compensation payable to employees
 No disciplinary action taken for late comers
 Less promotional activity
 High remuneration leads to high cost of production
 Labourers are rarely availed in market

Opportunities:

 Number of trained and technically skilled employees are availed

 The company has a good working environment, which is helpful to a harmonious
industrial relations.

Threats :

 Frequent changes in government policies

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  Skilled and technically trained employees are induced with high remuneration by other
competitor concern.

Human resource management serves these key functions:

1. Recruitment & Selection

2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work
10. Career development

The following rewards are provided by the company to its employees:

 pensions/additional voluntary contributions

 permanent health insurance/critical illness cover
 bonuses and incentive pay
 benefits and non-cash recognition
 company cars
 sick pay
 pay reviews
 equal pay.

Recruitment of employees by Shree Textiles Ltd

Recruitment and selection are very important function of Human resource management. The
success of every organization depends upon how human resources are effectively or properly
managed and utilized because unless the right type of people are hired (selected) even the best

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plans of the organization cannot produce god results. Hence the right man for the right job and at
the right time is essential for the smooth flow of activities in the organization.

Shree Textiles Ltd., recruits its employees in the following manner:

There are also two sources of Recruitment, namely:
 Internal sources
 External sources

Internal sources
The internal sources refer to present working employees of the company. The company recruits
its own internal people though promotions and transfers. It means when vacancies arise, those
who have been already working in the institutions are promoted thereby filling the vacancies.
Some of the internal sources of recruitment include:
1. Present permanent employees
2. Present temporary or casual employees
3. Retrenched or Retired employees
4. Dependants of deceased, disabled, retired, and present employees
External sources
When the requirements of the recruitment cannot be meet from internal sources then in such
cases external sources can be adopted. It has to tap external source for various positions.
Running organizations have to recruit employees from outside for filling the position whose
specifications cannot be met by the present employees and for meeting additional requirement of
manpower.
Some of the external sources of recruitment include:
1. Advertisement in Newspapers, Journals, TVs and Radio.
2. Employment exchange and Agencies.
3. Placement cells in colleges, Universities and management institutions.
4. Deputation
5. Trade unions
6. Casual labour or Applicant
7. unconsolidated Applications

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Selection of employees by Shree Textiles Ltd
Selection is the process of finding out the most suitable candidates to the job out of the
candidates recruited. Selections are done compromising the requirement of a job with the
applicants’ qualifications.

Management should select the right employees for the right job at the right time. The main
objective of selection is to choose the best qualified and suitable candidates for performing the
job most effectively. Satisfying employee’s needs and wants as well as the fullest development
of his potential is part of the objective.

Interview
An interview is a face to face, observational and personal appraisal method of evaluating the
applicants. Interview is universally used tools in any selection procedure and interviews are
designed to serve important area of employment, training, human relation and labour relations.

The interview should bring out attitude rather than fact. There are various interviews carried out
by different organizations according to the nature of job. They include:
1. Informal interview
2. Formal interview
3. Planned interview
4. Group interview
5. Patterned interview
6. Panel interview
7. Depth interview
8. Non-directive interview
9. Walk in interview
10. Stress interview
11. Exit interview

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Among these interviews normally Shree Textiles Ltd follows a few interviews such as informal
interview, formal interview, panel interview and exit interview.

Medical Examinations
The selected candidates are medically examined by the company’s doctor or approved medical
practitioners. Medical tests depend upon the nature of the job because certain jobs require certain
physical qualities like clear vision, perfect hearing, strong stamina, tolerance of hardworking
conditions, and clear tone among others.

Reference checks:
The references given by the candidate in the application forms are verified and checked out. This
helps to ascertain facts given by the candidate in the application form.

Appointment order:
The selected candidates are issued with appointment letters after recommendation of the
selection board and approved compitenent authority in the company.

Placement:
The candidates are required to report on duty within a stipulated time. It is the duty of personnel
department to place the candidates in different departments or branches. While giving placement,
it is initially a probation period and finally placement is given on the successful completion of
the probation period.

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ISO Training Method:
Training is the process of increasing the knowledge and skills for doing a particular job.
It is an organized procedure by which people learn knowledge and skill for a definite purpose.
The purpose of training is basically to bridge the gap between job requirement and present
competence of an employee. Training is aimed at improving the behavior and performance of a
person. It is a never ending or continuous process. Training is essentially practical consisting of
knowledge and skills.
Training is a short - term process utilizing a systematic and organized procedure by which
non-managerial personnel to learn technical knowledge and skills for a definite purpose. It refers
to instructions in technical and mechanical operations like operation of a machine. It is for a
short duration and for a specific job-related purpose.
After selection, as per the ISO policy on Training, all the workers have to attend the
following Training programs.
1. Job orientation Training
2. Quality Management Training
3. First Aid Training
4. Safety Training

TRAINING METHODS AND TECHNIQUES

_________________________________________

On the job Training Off the job Training

1. JOB INSTRUCTION TRAINING:

It is a step by step learning process. It is widely used to prepare supervisors. JIT
method provides immediate feedback, permits quick correction of errors and provides extra
practice when required.

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 2. VESTIBULE TRAINING:
In this method a training centre called vestibule is set up and actual job
conditions are duplicated or simulated in it.

3. APPRENTICESHIP TRAINING:
In this method, theoretical instructions and practical learning are provided to
trainees in training institutes.

4. CLASS ROOM TRAINING:

In this method, training is provided in company class rooms or in educational
institutions. Lectures, Case studies, Group-Discussions and Audio Visual Aids are used to
explain knowledge and skills to the trainees.

5. INTERNSHIP TRAINING:
It is a joint programme of training in which educational institutions and business
firms co-operate. Selected candidates carry on regular studies for the prescribed period.
They also work in some factory or office to acquire practical knowledge and skills.

6. RETRAINING:

Retraining is the process of providing training to persons who underwent training

earlier in their job. Retraining programmes are generally arranged for employees who have
long been in the service of an organization.

Appointing the Trainee:

There is a criteria for selecting the Trainee to the textile. At least the Trainee should
know to reading, listening and hearing capacity. The Trainee should have under some conditions,
they are
 Age not less than 17
 Height minimum 135 cm
 Weight minimum 35 kg

The rules and regulations :

1. 3 watch man were appointed to check in and check out at employees per shift.

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2. No employees is permitted to use liquor, pan parag, snuff, match box, cigarette
and tobacco at any cost.
3. No employee is permitted to take out any property of the mills and expected to
maintain the property of the mills is of their own.
4. Punctuality is main criteria and all the employees should be in time for their shift.
5. While coming to the company, all the employees should bring with them Time
Card, Id Card, Waste bags etc., without fail.
6. The time card is to be submitted in the Time Office and while in returning home,
they have to check that whether Time Keeper has signed it or not.
7. While on duty they have to be in the uniform and are not permitted to wear lungi
or loose dress.
8. The civil dress worn by the employee while coming to the duty should be kept in
their appropriate places allotted for them.
9. Cycles and their two wheelers should be parked in the cycle stand properly
allotted for them.
10. Employees should use their own property like food, cloth, foot wears, etc., and
they should tend to use other properties.
11. Employees should co-operate to maintain cleanliness of their dining hall and rest
room.
12. Employees should not spit in the campus other than the provision provided for
them.
13. Employees should use the toilet properly and co-operate to maintain it clean and
hygiene.
14. Employees should avoid absenteeism, if leave required they have to approach
their respective supervisors or higher official and get permission for leave.
15. Employees should check the cash amount at the time itself while receiving from
the concern authorities.
16. Employee should understood that they are benefited by the Mill and vice versa.
They should attain the target allotted to them without causing any damage to the
machines or the company properties.

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 17. Employees should co-operate to develop themselves and the Mill by properly
utilizing the notices and the training programs conducted for them.

NO. OF STAFF & WORKERS:

Shree Textiles Limited has 10,500 employees totally. Out of which 2775 female
employees and 7,725 male employees are working. It includes skilled employees, unskilled
employees, labourers and technicians.

NUMBER OF WORKING HOURS AND NUMBER OF SHIFTS

The Factories Act 1948 established a 48-hour working week; in practice, however, office
employees normally work a five-day week of 37-38 hours. Factory workers have on average a
six-day week of 43-48 hours. The above working hours is followed by the company as per
Factory Act.
There are two shifts in the company

1. 8.30 am to 5.00 pm
2. 5.00 pm to 1.00 am

Breaks two times for 15 minutes and Rest time is ¾ hours for every shift.

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 CONCLUSION
The entire internship training proved to be of immense help in my learning process. I
came across the various practicalities existing in the Shree Textiles. During the internship
training I got to know various aspects of the training & development such as how it helps to get a
insight into the strong and weak areas of the employees in terms of the roles, activities, qualities,
impact on others etc since I take HR specialization in my couse. It also helps in performance
management system and preparing action plans accordingly to enhance the performance of
individual or group of individuals.
Hence I would like to conclude by mentioning, that the corporate experience which I got in
Shree Textiles how much importance is given to the production department, quality assurance of
yarn, training of employees in the company.
 This project in Shree Textiles helped me a lot in gaining experience which some time
related or unrelated to what we are studying presently in are books.
 While I am in training I came to know about the real situations held in the company & the
reactions given to them by different departments.
 Different staffs and workers whom I went for reference of their department and working
took it differently. Some gave overwhelming response & also helped us gave some
knowledge on how continue on it.
 While asking about plus and minus of Shree Textiles some ignored it, some give real
information and some started to say about their personal problems. So this also gave us
chance to know about industrial environment.
 This training made me to know about various production techniques, stock maintenance,
human resource problems, what are training requirements of the employees at Shree
Textiles working at each & every department from shop-floor worker to middle level
management.
 The experience of more than one month at Shree Textiles give me pride to say that it was
great working as a summer trainee at Shree Textiles.
This experience also helped in gaining a confidence level, approaching ways, working
hazards, making & maintaining more & more contacts. Which are helping me & will be helping
in future too.

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