SUMMER PROJECT, DONEAR INDUSTRIES LTD.

2011

INDUSTRY PROFILE
India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Various Categories
Indian textile industry can be divided into several segments, some of which can be listed as below:

Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

Textile Industry
India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades: 1

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Area in lakh hectares 56.48 76.78 76.05 78.24 74.39 85.76 87.30 76.67 76.30 87.86 86.77 91.44 94.39 93.73 Production in lakh bales of 170 kgs 30.62 56.41 47.63 78.60 117.00 140.00 158.00 136.00 179.00 243.00 244.00 280.00 315.00 290.00 Yield kgs per hectare 92 124 106 170 267 278 308 302 399 470 478 521 567 526

Year 195051 196061 197071 198081 199091 200001 200102 200203 200304 200405 200506 200607 200708 200809

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet managed to retain its position as world's second highest cotton producer.

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

STRENGTHS

Vast textile production capacity Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems

WEAKNESSES

Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost with respect to other Asian competitors

Cotton Exports from India

Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Quantity (in lakh bales of 170 kgs) 16.82 3.50 1.01 0.65 0.60 0.50 0.83 12.11 9.14 47.00 Value (in Rs./Crores) 1655.00 313.62 86.72 52.15 51.43 44.40 66.31 1089.15 657.34 3951.35

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

2006-07 2007-08 2008-09

58.00 85.00 50.00

5267.08 8365.98 N.A.

Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Quantity (in lakh bales of 170 kgs.) 0.30 4.13 7.87 22.01 22.13 25.26 17.67 7.21 12.17 5.00 5.53 6.50 7.00

Value (Rs./Crores) 56.42 497.93 772.64 1967.92 2029.18 2150.01 1789.92 880.10 1338.04 695.77 752.29 986.33 N.A.

Current Facts on India Textile Industry

India retained its position as worlds second highest cotton producer. Acreage under cotton reduced about 1% during 2008-09. The productivity of cotton which was growing up over the years has decreased in 200809. Substantial increase of Minimum Support Prices (MSPs). Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices. Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

COMPANY PROFILE

Donear was created in the significant year of 1977, promoted by Vishwanath Agarwal, Rajendra Agarwal and Ajay Agarwal. Within a short span of time it became a household name along with other Indian brands. The company is engaged in the manufacture of fabrics like Suiting, Trouser & Shirtings created by Donear in a wide variety and range meant for Menswear & Womenswear. Donear, with its three decades of expertise in the textile industry, is a reputed and fastest growing fashion fabric brand creating a wide variety of exotic; Suitings, Trouser & Shirting Fabrics. Donear has flourished into one of the largest textile-business enterprise in India One of the top three well-known brands in India in its product category; Donear primarily caters to the middle and the premium segments with high quality apparel fabrics that are woven with Natural Fibres, Synthetic Fibres and its Various Blends. As a brand, Donear has succeeded by maintaining pace with the changing demands of the local and global fashion trends, and primarily due to the company's; innovative approach in continuously developing newer products, using state-of-the-art-technology along with highly-skilled workforce, strong logistics, by being perpetually quality conscious, and thereby creating world-class fabrics. These highly ingenious fabrics are available in a wide range of colour, texture and comfort along with contemporary designs. Donear fabrics are simply a luxury affordable that suits every desire! Fabrics created by Donear have steadily captured the domestic textile markets as a result of its wellplanned and expanding sales network consisting of; 44 Agents, 290 Wholesalers and 12000 Retailers, that are spread in all the 29 States & 7 Union Territories of India. Similarly, fabrics created by Donear have a wider reach in the overseas markets too, with exports to over 28 countries across the globe. Donear currently produces 11 million metres of fabric annually at its production unit located at Silvasa UT of Dadra & Nagar Haveli. To augment the production capacity further, another plant with an investment of $27 million is being set up at Surat - the textile hub of western India. This will lead to an increase in the total production capacity up to 17.5 million metres of fabric per annum. Presently, Upperwear & Bottomwear fabrics account for 20% and 80% of the total production created by Donear, and considering the expansion project, this would increase up to 45% and 55% respectively. Nearly 10% of the total production is currently exported and this percentage will increase up to 25% with the underlying opportunities created by the post WTO scenario, and also due to the expansion plans for

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

creating 100% High Value Cotton Fabrics. The companys product range includes: Polyester Viscose Blended Fabrics Polyester Cotton Blended Fabrics 100% Polyester Fabrics 100% Cotton High Value Plain and Yarn Dyed Shirting Fabrics 100% Cotton Plain and Yarn Dyed Bottomwear Polyster Wool, Wool Rich & All Wool Fabrics

Future plans With mounting demands for Donear's premier products and as a part of its future plan, DIL has taken concrete steps to increase its production by investing $27 million in a greenfield integrated textile-unit project at Surat - based on the western region of India in Gujarat, with facilities for Yarn Dyeing, Weaving, Processing and garment manufacturing. The upcoming production unit at Surat is spread over an area of 7.7 Hectares (19 Acres), and is about 300 km from Mumbai City. The first phase has already been operational since December 2007.

Product Range Sales Sales

Product Name

Year Month

Quantity Value(Rs.Million) 2001.14

% of STO

2010 Fabrics 2010 Garments - Traded 2010 Fabric Processing 2010 Yarn Dyeing 2010 Fabric Packing Job

03 19217148.00

82.41

03

737113.00

316.37

13.03

03

6729841.00

102.16

4.21

03

444626.00

8.42

0.35

03

57588.00

0.29

0.01

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Brands

Donear is a flagship brand which represents a diversified range of fabrics that are unmatched for its; Range, Style, Variety and Versatility. The latest state-of-the-art equipment and weaving and finishing technology are applied in bringing out various fabrics under this brand that is meant for : Trousering Suits Shirts Casual Safari Also, these fabrics have its application in womens wear too. Donear as a brand has a High Recall and is immensely popular both in India and world wide due to its Highly Effective Communications & Excellent Product Qualities. As a brand Donear has registered exponential growth!

It was the first organized effort in offering the market with ready to stitch fabric for styling along with accessories that come in a special packaging. Conceptualized as a product in keeping pace with the modern lifestyles, Donear QSF is offering ready to stitch Trousers and Suit lengths that provide instant access to the latest fashion styles. Under the technical guidance of experts from international consultants as well as its own technical team, the company has used special yarns in the fabric to provide; Optimum Comfort, Excellent Durability along with an Aesthetic Feel

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Is a luxury premium offering in Suitings fabrics from Donear. Donear Royal Classico attempts to make a bold & painstaking effort to bring the Suiting Fabrics with; Texture, Fall, Drape & Luxury of Woolen Fabric along with Convenient Durability & Quality Assurance of the Superfine Blended Fabrics. Royal Classico is the first ever specially tropicalized fabric having breathing properties, so as to suit all kinds of climatic changes. Unique blending proportions, customized manufacture of fine yarns, researched selection of shades & state of art finishing technology are applied to make this Luxury Suiting offered to the market that strives for perfection.

Is a highly successful and unique concept for gifting of various kinds of fabrics on special occasion like Events, Festivals, Weddings, Special Occasions, and so forth...Gifts 4 U is a collection of Suitings, Shirtings, Trouser fabric, Finely Crafted Suit Lengths as well as Safari Lengths in elegant gift packs. It also offers matching pair of Shirts & Trousers in blends where 100% Cotton, Plain or Check Shirt lengths are packed accordingly, and are made available with ingenious packaging. Special care is taken to improve Permanent Finish, Bulkiness and Excellent Fall for fabrics used in DONEAR Gifts 4 U.

It is the result of new technology and a dedicated team effort to bring revolutionary Soft and Smooth fabric. Donear has taken the domestic market as well as international market with its Suiting fabrics by storm, offering Soft & Smooth super fine fabric. This fabric has incorporated a blend of best available technologies, and is a result of team-work from Donears technical department. Donear Soft & Smooth is incredibly soft & smooth ! It has the Fall and Bounce of Woollen & Classic Comfort such as; Cotton, Soft Touch of Silk, and yet Easy to Maintain along with Wash & Wear qualities of polyester. Superlative designing efforts on part of the companys development team is guaranteed
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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

to leave high impact on the purveyor of this fabric.

It is designed for the global connoisseur of exceptional quality of light weight fabric. This fabric has a superlative look in its Aesthetics as well as in its Feel, Fall & Grace. Donear international is a result of its global vision, team work and dedication to quality as well as access to the latest international technologies. Micro fibres and finest yarns are used in this fabric. The fabric has, Superb Dimensional Stability, Crease Recovery, Excellent Smoothness, Lustre, Fall as well as Durability. It is especially appropriate for Suits, Blazers, & Trousers for both Men & Women

Drawing upon the eternal charm and sophistication of Linen, this is a fine offering of various blends of Linen. Linen Fiesta is an attempt to use the eternal Luxury and Sophistications of linen fibre and its blends to achieve distinctive linen look for both formal and casual wear. Design creativity has been given maximum license in creating products based on this concept. The products are especially appropriate for Suits for both Men and Women as well as for Trousering. It is really the stuff the designers of the world aspire to use.

Donear International with Fabric Integrated Technology i.e. F.I.T. is light weight fabric, made from micro fibres spun into a two ply yarn which is finest of the suiting yarn available. It is treated with a special weight reduction finish for added softness and comfort. Superb dimensional stability and crease recovery, excellent smoothness, luster, uniformity and durability.

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

RETAIL MARKET IN SUITINGS & SHIRTINGS FOR

With a new positioning platform of Fabric to Fashion, the Siyaram's brand has announced its foray into readymade garments with the launch of its new Siyaram's MSD . Siyaram's MSD claims to offer the latest in design trends to the Indian male and has a complete range of garments and accessories catering to the lifestyle, aspirations and tastes of the neo-Indian. Targeted at the young Indian, Siyaram's MSD comprises of formals, semi formals, evening wear, casuals and club wear. Dhoni will feature in all new Siyaram's brand as well as the MSD brand campaigns. His appearance will be given a fresh makeover and he will be presented in a completely new imagery and avatar, states an official release. Siyaram's MD and vice chairman Ramesh Poddar said, "Dhoni is the perfect brand fit for us. Our research across the category shows us that he represents the four key attributes of style, passion, dynamism and timelessness and is also an ideal role model for young India. These four attributes form the core of our new brand personality and we feel that the synergy is complete." Adding to this, Siyaram's senior president marketing S.P Shah said, "The MSD brand has three distinct advantages over any other brand in the market - a 30,000 strong distribution network of Siyarams to choose from, fabric expertise of Siyarams that ensures quality and value for the consumer and the brand equity of the Siyaram's brand itself. In the next five years, we hope to make MSD the largest menswear brand in the country." Recognising the ever-changing profile and psychographics of young India, Siyaram's too is undertaking a metamorphosis in its style, personality and imagery. A new, more dynamic logo, the addition of a new visual mnemonic called the 'flarrow' and a new Siyaram's campaign that is designed to communicate this new incarnation - all these form the core of the future strategy that the Siyaram's brand is adopting, adds the

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release. Siyaram's MSD is targeted at today's youth and aims to provide its customers, good quality at affordable prices, claims the company.

Grasim Bhiwani Textiles Ltd is a subsidiary of Grasim Industries Ltd having strong presence in manufacturing of Polyester Viscose fabric catering the market under brands GRASIM & GRAVIERA as also exporting its fabric to various reputed brands. The company has its manufacturing facility in Bhiwani Haryana and its Marketing & Sales Office at New Delhi. The company is spread across the geography through a large network of dealers , agents and retail outlets. The company utilizes strong manufacturing facilities comprising of Fibre Dying , Yarn Spinning , Weaving , Processing and Folding with state-of-the-art machines , processes and professional environment. The company also has strong presence in International market catering to the fabric need of International brands. The company has strong Design and Development team which conceptualizes and develops designs as per fashion standards and market needs. The company also has its product range of RMG Readymade Garments with exclusive design and qualities

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Mayur Suitings is a brand from the Rs 600 crore Rajasthan Spinning &Weaving Mills( RSWM) and is one of the famous Indian textile brand. This 30 year old brand is famous for its penchant for celebrity endorsements. Mayur is having a market share of about 7 % in the 10,000 crore Indian suitings market. Mayur shot into limelight during 1995 when the brand roped in Shah Rukh Khan to endorse the brand. Later the brand was endorsed by Chandrachur Singh, Sharad Kapoor , Lisa Ray and Virendra Sehwag.

The brand is in the "Value for Money " category which itself makes " Stars Ki Pasand" unbelievable. For Lux, Celebrity is in the brand's DNA. But unlike Lux, Mayur could not build that to its DNA even after 30 years of existence. The reason is that Lux is endorsed by all the leading ladies in the Bollywood while Mayur could not afford that luxury. Mayur tend to use only one celebrity at a time ( till the contract expires).

The company has big plans for this brand. Currently Mayur is a Rs 100 crore brand and company wants it to be Rs 300 crore brand in five years time. The brand has been updating its product with the latest innovations in the category. Mayur already has a Nano tech collection and is slowly extending to ready-to-wear segments. The brand also has plans to move into premium category and has launched a collection branded Glazano.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

COMPETITORS ANALYSIS
Company Sales Current Change P/E Market 52-Week (Rs.Million) Price (%) Ratio Cap.(Rs.Million) High/Low 21810.78 SRF 26913.10 JBF Inds. 158.25 2.33 8.41 11058.86 228/133 288.75 2.38 3.52 17003.87 444/227

Indo Rama

27960.60

42.25

2.55

4.47

6224.71

81/35

Synth 55.92 Nirlon 48.50 -1.42 99.45 2864.26 84/44

Nahar 11104.70 Spinning 78.25 1.82 2.35 2813.09 152/74

Mills

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Sutlej

11469.15

186.65

-0.40

1.78

2031.47

372/152

Textiles

Banswara

6309.65

130.05

0.42

4.30

1955.22

152/101

Syntex

Shri 13709.48 Lakshmi 82.50 5.77 1.73 1645.32 210/74

Cotsyn

Sangam

8522.48

38.35

0.79

2.59

1464.51

63/33

India

Donear

2428.37

24.00

2.13 33.84

1201.20

48/22

Inds

Sarla

1316.17

110.35

-2.17

6.30

781.91

165/89

Perform.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Fibre 3677.90 Indus Fila 18.80 -9.40 19.17 406.88 36/20

Futura

3778.43

5.73

-7.28

0.00

339.11

11/5

Polyesters 2730.26 GTN Inds 15.65 7.56 3.04 289.42 37/14

Raj Rayon

3276.77

11.40

-0.44

5.23

212.18

20/11

Industries 272.93 NRC 5.55 1.46 0.00 208.53 14/5

Paras

962.01

0.58

0.00

5.15

187.16

1/1

Petrofils 1075.66 Cons.Fibre 1.59 0.00 0.00 164.61 2/2

GSL Nova

2201.40

3.50

0.00

0.00

94.50

9/3

Petrochem
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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Hind

735.45

4.18

4.76

0.00

53.42

8/3

Syntex

OBJECTIVE OF THE STUDY

1. To know DONEARS position with the retail dealers regarding its brands equity, quality, development of designs and pricing. 2. The company also wants to know as to what is the main motivation for retailers for giving a particular brand reference over another and also why retailer would like to patronize unbranded products and what are the benefits v/s risks they see in that policy. 3. The company has setup its latest plant at Surat thereby greatly improving its quality/finish/appearance. How does the retailer relate to this change in company's products & consistency of quality being given by the company. How does the retailer rate our company viz a viz our closest competitor i.e. Siyaram on a scale of 10 for Siyaram. 4. The company has made some efforts towards brand building through ATL & BTL activity. Are these efforts being noticed by the retail dealers or till now there is not much of an impact? 5. What is the retailers view about the retailing support being given by the company to the wholesalers and how does he compare this service in terms of regularity / quality of staff / sampling vs. other competitors like Siyaram / Grasim / Mayur etc. 6. The company feels that it has got a very strong position in gift packaging products like jodi/safari/suit length etc. The company feels that it has got the best position in terms of quality/variety/novelty and prices in this segment. Does the
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retailer endorse this perception on the part of the company and what needs to be done to further consolidate and build upon this vertical?

RESEARCH METHODOLOGY
The RESEARCH METHODOLOGY used in this internship program was QUANTITATIVE where surveys are conducted in various cities to record the response of different retailers to the questionnaire.

Quantitative Research Considerations SURVEYS Surveys are the primary method of quantitative research research with some claim to statistical accuracy. There are several types of surveys and several key considerations within each. This segment will discuss two important factors in surveying sampling and return rate and give short descriptions of survey types with pros, cons, and cautions. The next segment will discuss questionnaire design.

Types of Surveys There are four basic types of surveys: 1) mail, 2) telephone, 3) online, and 4) in person. In addition, some of these might be self-administered or done by interviewers. There are also hybrid techniques. Each format is the most appropriate in a given circumstance.

Mail Surveys. Mail surveys are paper and pencil instruments that are mailed to respondents. They are self-administered by the recipient, which means there is little control over the feedback. However, they are the most convenient for respondents, who can complete them in the place and time of their choosing. Mail surveys are best for the collection of sensitive information, because they provide anonymity for the respondent. They provide the best opportunities for both random samples and targeted

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

random samples. They are the least expensive way to collect data from large numbers of people. Telephone Surveys. Surveys by telephone might be conducted by trained interviewers or by automated systems. Data collected through telephone surveys usually has minimal missing or erroneous data, primarily because it offers the opportunity for personal assistance. New automated random dialing systems increase the randomness of the sample, although only people with telephones are included in the sample. Telephone surveys offer a good opportunity to reach low incidence respondents populations of people that are very small within general population. They also allow for relatively quick data collection. New IVR (Interactive Voice Response) provides researchers with the opportunity to branch take respondents to questions based on previous responses and otherwise customize the survey. Computer/Online Surveys. Surveys can also be administered by computer and the Internet. All provide the potential to conduct complicated research because help menus can assist respondents through the survey. You can also include visual aids or images as part of these surveys. And perhaps most importantly, they are the least expensive format and have the quickest speed of data collection and reporting. In addition they offer technical advantages, such as control of order bias, etc. The most convenient type of computer/online survey is the Disk by Mail DBM) survey. These are self-administered, with respondents pre-recruited. They allow respondents to work at their own pace and to find answers to questions, such as brand names or number of utensils, as needed. Surveys (CATI) with similar features can be administered by computer with keyboard, touch screen, electronic pen, or voice-activated response. Computerized surveys administered from a central location (CASI) offer all the same benefits. The downside of computer/online surveys is the skewed or limited sampling. Only participants with access to computers outside the work environment can be reasonably be expected to respond. This sample is further limited by technophobes, who either wont respond or who have so many problems their data is unusable. Hybrid Methods. You can combine any of the methods and additional technologies to help you get better, faster, and more responses. The most common ones are Telephone Mail Telephone (TMT), in which you recruit, screen, instruct respondents by phone and then send them a survey. They can either mail the questionnaire back or call an interviewer. The same method can be used with a fax machine or computer. Online bulletin boards are another hybrid method. Respondents are recruited, screened, and instructed by phone and then respond online often to comments by other respondents as well as survey questions.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

THE QUESTIONNAIRE
RETAILER SURVEY FORM Name of the Shop ....................................... Proprietor's Name ....................................... Name of Interviewee .................................. Address ....................................................... Tel Nos. ....................................................... Good .............! I am .............. conducting a study among retailers like you in this area for a project I am pursuing on what retailers are doing today about fabrics in the face of readymade garments revolution which is taking place across markets. Please name the popular newspaper in your area (in priority order) a) ...................................... d)........................................... b).......................................... c)...........................................

Which are the most watched TV channel (in priority order) a) ...................................... d)........................................... b).......................................... c)...........................................

Q1. PLEASE ASK AND NOTE DOWN ALL THE BRANDS OF SUITINGS AND FABRICS BEING STORED IN THE SHOP. NOTE DOWN BRANDS AS STOCKED IN A SPECIFIC AREA OF THE SHOP Which Suiting brand available in stores? (list down with names and % of stock he maintain) Brand name a)........................ b)........................ % of Total Stock ...................... ......................

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011 c)........................ d)........................ e)........................ f)........................ ...................... ...................... ................... .......................

Which Shirting brand available in stores? (list down with names and % of stock he maintains) Brand name a)........................ b)........................ c)........................ d)........................ e)........................ f)........................ % of Total Stock ...................... ...................... ...................... ...................... ................... .......................

Q2. ASK FOR EACH BRAND SEPERATELY You said you stock ....... (MENTION BRAND OF FABRIC / SUITINGS STOCKED). Can you tell me what are your reasons for stocking.......... (MENTION BRAND OF FABRIC / SUITINGS STOCKED)? Reasons Suitings for stocking -

Popular Brand Has a range of good colours Quality of the fabric is consistent Good relationship with supplier Good Margin Good incentive Good replacement policy Good designs Good quality fabrics for special occasions Make fabrics for all occasions Other specify 20

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Reasons Shirting's Popular Brand

for

stocking-

Has a range of good colors Quality of the fabric is consistent Good relationship with supplier Good Margin Good incentive Good replacement policy Good designs Good quality fabrics for special occasions Make fabrics for all occasions Other specify

Q3. When a customer walks to your shop what exactly does he / she says? PROBE IN DETAIL. .............................................................................................................................. Q4. On an average, how many persons accompany the buyer of fabrics at your shop? ................................................................................................................................. Q5. Out of every 10 selling occasions, how many times do you sell something to the customer according to what he / she wants and how many times do you manage to sell the customer what you wants to sell? Customer gets what he wants Shopkeeper sells what he wants ignoring customers wants ......................... ..........................

Q6. Of the fabrics stored, can you tell me in terms of value(Rupees), what is the proportion of suit material, trouser material, shirting material and uniform fabrics? Suit materials Trouser materials Shirting materials .................... .................... ................. 21

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Uniform fabrics

.....................

Q7. Do you have tailoring facilities in your shop for those who buy fabrics? Whether internal or outsource? Yes No 1 2

Q8. Do you recommend to the consumer any tailor located nearby your shop? Yes No 1 2

Q9. Do you feel that by providing tailoring facilities in your shop will help you save competition from readymade garments? Will save Will not save 1 2 Go to Q.11.

Q10. Which local Sales promotion effort of a textile company helps you the most in pushing your sales? Hoarding Wall painting Signboards on shop front Posters TV advertising Newspaper advertising Magazine advertising Radio advertising Local announcements using announcers Others SPECIFY ................................. ..................................... 10 11 4 5 6 7 8 9 1 2 3

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011 Q11. What new things manufacturer should bring in the market? ............................................................... Q12. How do you evaluate Donear? (PROBE IN DETAIL) .................................................................. Q13. Do you keep Donear Fabrics? Yes ........; Are you happy with the product, any suggestion ? ...................................................................................................................................... No .........; Would you like to sell Donear products? What support do you need? ......................................................................................................................................

Q14. How much importance does the consumer give to the following factors. Rank them in priority order. 1. 2. __ 3. 4. 5. 6. Fabric which may give him good social status in his society due to its distinctiveness. __ Latest fashion/design. Good feel, fall & finish in the product. Quality parameters. Maintenance after washing. Guarantee on product quality. __ __ __ __

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

DATA ANALYSIS & INTERPRETATION

The DATA is collected by recording the retailers response for the above questionnaire from the following cities

1.

MADHYA PRADESH 1. Indore 2. Dewas 3. Ujjain 4. Nimuch 5. Mandsore 6. Nagda 7. Dhar 8. Rajgarh 9. Shivpuri 10. Gwalior 11. Satana 12. Rewa, 13. Katni 14. Jabalpur 15. Bhopal 16. Sagar 17. Jhansi 18. Damoh CHATTISGARH 1.Raipur
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2.

SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

2. Bilaspur 3. Raigarh 4. Durg 5. Raj Nardgoan 6. Bhilai 7. Dhamtari

From the survey being conducted in the cities of MADHYA PRADESH & CHATTISGARH we can easily identify DONEAR status in these states. MADHYA PRADESH & CHATTISGARH: Madhya PRADESH has always been a textile hub for most of the companies. It is one of the highest cotton producing State in India 14.50 lac bales of production in 2009-10. With more than 55 Textile mills in the State, Textiles exports from Madhya Pradesh worth US$325 million per annum.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

As these states hav very potential market in each & every cities. DONEAR status can be calculated as the upcoming strongest brand in POLYESTER VISCOUS segment. There is a need of more advertising for DONEAR so that they could reach to the mass. Even some of the retailers have very little knowledge about the SURAT plant. Due to very less media interface of the company in this part of INDIA customers have no idea about the rich quality of product it is providing. Moreover, due to this various other brands such as SIYARAM, GRASIM have gained a decent amount of P.V. market segment. The pie chart below shows the market segment of 4 major players in M.P. of P.V. segment

% share in MARKET
1 3.5 2.5 SIYARAM GRASIM DONEAR MAYUR 3

There are few cities such as UJJAIN, INDORE, GWALIOR, NEEMUCH, JABALPUR, BHOPAL, and SAGAR in M.P. & BILASPUR, RAIPUR in CHATTISGARH who have very strong market in terms of area as well as in terms of money transaction. Therefore there is no harm in investing some good amount in market of these cities.
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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

GRAPHICAL DESCRIPTION OF DATA Q1. Please name the popular newspaper in your area (in priority order)
D.BHASKAR NAV BHARAT PATRIKA OTHERS TOTAL M.P. 60 32 12 7 111 CHATTISGARH 28 12 8 2 50

60 60 50 40 32 30 20 12 10 0 M.P. CHATTISGARH 7 12 8 2 28 D.BHASKAR NAV BHARAT PATRIKA OTHERS

A1. The popular news paper in MADHYA PRADESH & CHATTISGARH in ascending order is PATRIKA < NAV BHARAT < D.BHASKAR.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Q2. Which are the most watched TV channels?

NEWS CHANNEL

ENTERTAINMENT
COLORS 20% STAR NETWORK 40% 10% ZEE NETWORK DISCOVERY

35% 25%

40%

AAJ TAK ZEE NEWS STAR NEWS

30%

A2. From the above pie chart it is evident that in news channel category AAJ TAK is preferred more & in entertainment category STAR NETWORK has the highest share. Q3. Which Suitings & Shirtings brands are available in store?

CHATTISGARH (OUT OF 50 RETAILERS)

30% 40% 30% 30% SIYARAM GRASIM MAYUR DONEAR GWALIOR 25% 15%

M.P. (OUT OF 111 RETAILERS) SIYARAM

20% 40% 30% 30% GRASIM DONEAR MAYUR GWALIOR

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

A3. Therefore we can infer from the above pie charts that in CHATTISGARH region out of 50 retailers 40% keep SIYARAM 30% keep GRASIM another 30% DONEAR 30% GWALIOR 25% MAYUR.

MADHYA PRADESH Region out of 111 retailer 40% keep SIYARAM 30% keep GRASIM another 30% DONEAR 20% GWALIOR 15% MAYUR.

Q4. When a customer walks to your shop what exactly does he/she says?

SAMPLE SIZE 161 RETAILERS

35% SPECIFIED RANGE 65% OCCASION

A4. The diagram above shows that most of the customers when enter in a retail outlet ask the retailer to show fabric in specified range i.e. 75% of the customers. Whereas 35% of the sample size ask for fabrics for different occasion.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Q5. Does the retailer have tailoring facilities at his shop for those who buy fabrics? Whether internal or external?

SAMPLE SIZE OF 161 RETAILERS

48

yes no

113

A5. Most of the retailers do not prefer providing tailoring facilities in there own shop. Most of them feel that providing tailoring facility can be risk to their shop.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

CONCLUSION
SWOT ANALYSIS OF BOTH STATES

MADHYA PRADESH
Strengths
MADHYA PRADESH is one of the largest exporters of Yarn and contributes around 25% share of the global trade in Cotton Yarn. MADHYA PRADESH is one of largest revenue contributor and holds 12% of the country's total export. It has large and diversified segments that provide wide variety of customers for each & every product. Provides Manufacturing Flexibility that helps to increase the productivity as well demand for fabric in this part of country is 8% higher than eastern states. Since in this region of country most of the people are depended on agro based industry therefore there is very less influence of trendy readymade culture & people still prefer stitched fabric over ready-mades. The customers are much more aware of the product they chose to buy therefore better quality product is more likely to survive in the market for longer run.

Weakness
It is highly Fragmented Industry.

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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Industry is also dependent on local players. Poor tailoring in various areas. There is Declining in suiting & shirting Segment. Lack of URBAN INTERFACE affects the buying behavior and other activities in whole value chain.

Opportunities

Growth rate of Domestic Textile Industry is 6-8% per annum. Large, Potential Domestic Market. People are prone towards all kind of media interface. Elimination of Quota Restriction leads to greater Market Development. Threats Competition from other brands such as RAYMONDS, REID & TAILOR and DIGJAM etc. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. Elimination of Quota system will lead to fluctuations in Export Demand. Threat for Traditional Market for Power loom and Hand loom Products and forcing them for product diversification. CHATTISGARH
Strengths
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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Post 2005, removal of quota restrictions to give a major boost. Export target in FABRIC at USD 50 Billion by 2011. Low per capita consumption in India (2.8 vs. Global average of 6.8). Cost competitiveness.

Weakness

Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time. Unfavorable labor Laws. Lack of Trade Membership, which restrict to tap other potential market. Lacking to generate Economies of Scale. Higher Indirect Taxes, Power and Interest Rates.
Opportunities

Increased Disposable Income and Purchasing Power of Indian Customer open New Market Development. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry. Greater Investment and FDI opportunities are available. Threats
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SUMMER PROJECT, DONEAR INDUSTRIES LTD. 2011

Geographical Disadvantages. International labor and Environmental Laws. To balance the demand and supply. To make balance between price and quality. Market is gradually shifting towards Branded Ready-made Garment.

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