PRESENTATION ON

OSWAL WOLLEN MILLS

 SUBMITTED BY –
The Nahar Group
 Nahar Group came into existence in 1949.

 It was established with the initial efforts of 3

Oswal Brothers Sh. Vidya Sagar Oswal, Sh.
Lachman Dass and Sh. Rattan Chand Oswal.

 Total turnover of Nahar Group is 6000 crore.

 There are 7 companies under Nahar Group.

Nahar Group of Companies
 OSWAL WOOLEN MILLS LTD.
 NAHAR INDUSTRIAL ENTERPRISES LTD.
 NAHAR SPINNING MILLS LTD.
 NAHAR POLYFILMS LTD.
 NAHAR CAPITAL&FINANCIAL SERVICES
LTD.
 MONTE CARLO FASHION LTD.
 COTTON COUNTY NAHAR RETAIL LTD.
VISION

“The excellence is always an ongoing

journey never Destination”

MISSION
“To give the best to the customers at most
competitive price”
 OSWAL WOOLEN MILLS LTD
 It was established in 1949 by Sh.Vidya Sagar
Oswal.

 It is manufacturing all type of Blended worsted

yarn, weaving yarns, blankets, lohis,
shawls, garments, etc .

 The main operations of the company are at

Ludhiana.
 MAJOR EVENTS OF OWM
YEAR EVENTS
1949  The Co. was incorporated as Public Ltd. Co.
with a woolen hosiery knitwear unit.

1968
 Commenced export of knitted hosiery.

 Launched ‘Monte Carlo’ brand.

1974-1985
 Established an OWM export house.
 Recognized as one of first five trading house
under EXIM policy 1981-1982.

1995  Launched ‘Canterbury’ brand.

 The first phase of Denim plant at Larlu was

2006 established.
 Started retail for franchises of retail outlets.
Board of Directors
 Mr. Jawahar Lal Oswal Chairman-Cum
Managing Director  
 Mr. Amarjeet Singh Director
 Mr. Dinesh Oswal Director
 Mr. Kamal Oswal Director 
 Mr. Sandeep Jain Executive Director
  Mr. Dinesh Gogna Executive Director
 Dr. (Mrs.) H.K. Bal Additional Director
 Mr. O.P. Sahni Additional Director
 Mr. K.S. Maini Additional Director
  Dr. Suresh Kumar Additional Director
PRODUCT PORTFOLIO

 Wool
 Yarns
 Textile fabrics
 Hosiery knitwear products
 Cotton Garments
 Denim fabrics
BRANDS OF OWM
EXPORT MARKET
 U.S.A.
 UNITED KINGDOM
 Germany
 Russia
 Japan
 Australia  
 Singapore
 Taiwan
 South Africa
 Canada
 New Zealand
 Thailand
 Hong Kong
COMPETITORS
 COMPETITORS OF WOOLEN/BLENDED WORSTED
YARN
 Vardhman Textiles Limited
 Jayshree Textiles Limited
 Malwa Cotton Mills Limited
 COMPETITORS OF DENIM FABRIC
 Arvind Mills Limited
 Aarvee Denims Limited
 Raymond Limited
VARIOUS DEPARTMENTS
 Quality control

 Human Resource Department

 Finance Department

 Marketing Department
Functions of Departments
Quality Control Human Resource

 To enhance customer  Maintaining employees

satisfaction records.

 Cost reduction in  Labour cost reporting.

operation.
 Time keeping.
 Regular review and
upgradation of  Various other functions like
technology. Recruitment, Selection and
training.
 Finance Marketing

 Financial planning &

 Market survey.
controlling.  Developing Marketing
 Financial Accounting. Strategy.
 Financial report.
 Providing feedback to
 Capital structure & production department.
decisions.  Handling enquiry orders
 Cash management. through letters & phone
calls.
 Audit &tax administration.
SWOT ANALYSIS
STRENGTHS WEAKNESS

 Extensive experience of  Long Hierarchy.

promoters.
 Good brand image.  Dependant upon foreign
 Automated machines of producers for greasy
latest technology. wool.
 Good training programs.  Risks in relation to
 Commitment of outsourcing of cotton
employees. segment of MC products.
 OPPURTUNITIES THREATS

 Fabrication for various  Mushrooming and

companies likes NIKE, upcoming of small
MARKS AND SPENCER, hosieries in Ludhiana.
GAP, WILLS, etc.
 Manufacturing of kids  Seasonal demand for
garments. their major product i.e.
 Best quality goods can pullovers.
quote for best selling
price.
 LEARNINGS
 Knowledge about financial analysis.

 Knowledge about Ratio analysis.

 Knowledge about Trend analysis.

FINANCIAL ANALYSIS
 Financial analysis is the process of
identifying the financial strength &
weaknesses of Co. by properly establishing
relationship between variables of balance
sheet and P& L account.

 The purpose is to judge liquidity,

profitability & financial soundness of
enterprise.
WORKING CAPITAL
 Working Capital is mainly difference between
current assets and current liabilities.
WC = CA – CL

 It tells about daily operations of the business.

 Concepts of WC – Gross working capital

Net working capital
NEEDS OF W.C
The need of W.C arises due to time gap
between production & realization of cash
from sales.
 For the purchase of raw material.
 To pay wages & salaries.
 To incur day to day expenses.
 To provide credit facilities to customers.
 To maintain the inventories.
RATIO ANALYSIS
 Ratios are mostly used in practice to
access financial performance and
condition .
 The main objective is to help
management in analysis the financial
statement to get adequate information
useful for performance of various
functions.
 CURRENT RATIO

YEARS 2012 2013 2014

Audited Provisional Projected
CA 43558.15 54059.51 87617.69
CL 14978.99 18281.59 28291.51
2.9 2.95 3.1

INTERPRETATION - The company’s current ratio is more than

standard (2:1) i.e. 2.9 in 2012 ,2.95 in 2013, 3.1 in 2014 so
company is in great position and current assets are well maintained
and liabilities are under full control.
 QUICK RATIO

Years 2012 2013 2014

Audited Provisional Projected
Liquid assets 19996.98 23084.88 34574.69
CL 14798.99 18281.59 28291.51
Ratio 1.33 1.26 1.22

INTERPRETATION - The company’s quick ratio is more than

standard ratio 1:1 i.e.1.33 in 2012 which is decreased to 1.26 in
2013 & 1.22 in 2014 still more than standard limit, shows company
has strong financial position.
 DEBTOR TURNOVER RATIO
YEARS 2012 2013 2014
Audited Provisional Projected
Debtors
-domestic 8947.39 11413.56 15434
-export 137 58 234.2
Sales 94781.96 129881.75 176536.42
35 33 33

INTERPRETATION - As the company’s debt collection period is

decreasing per year from 35 in 2012 to 33 in 2013 & 2014 which is
good for company & has no impact on slowdown of economy.
 GROSS PROFIT RATIO
Particulars 2012 2013 2014
Audited Provisional Projected
Gross Profit 12823.15 20114.55 32716.36
Sales 94781.96 129881.75 176536.42
Ratio 13.52 15.48 18.53

INTERPRETATION – Gross profit of the company is 13.52% in

2012 which increased to 15.48% in 2013 & 18.53% in 2014 which is
best for the company so company position is strong for all the
financial year.
 NET PROFIT RATIO

Particulars 2012 2013 2014

Audited Provisional Projected
Net Profit 4234.36 6547.46 12779.38
Sales 94781.96 129881.75 176536.42
Ratio 4.46 5.04 7.24

INERPRETATION - The company’s net profit is 4.46% in 2012

which increased to 5.04% in 2013 & 7.24% in 2014. Thus according
to company’s estimation & seeing the overall earnings ,company is
in good position.
 DEBT EQUITY RATIO
Particulars 2012 2013 2014
Audited Provisional Projected
Long term 29235.36 36531.77 46505.41
debt
Net worth 23945.14 30492.59 43271.97
Ratio 1.22 1.2 1.07

INTERPRETATION - As OWM has decreasing trend in d/e ratio thus

using own funds & not taking loans. Equity is more than debt and
lower debt decreases the cost as well as risk .Hence company is in
good position.
TREND
ANALYSIS
 NET PROFIT TREND
ANALYSIS

Net profit trend means analysis of changes in profits in different

periods . The period may be short , mid term or long term . Net profit
trend may go up or down.

Particulars 2012 2013 2014

Audited Provisional Projected

Net Profit 4234.36 6547.46 12779.38

 Net profit trend
16000

14000

12000

10000
Net profit

8000

6000

4000

2000

0
1 2 3

INTERPRETATION:- Net profit of the Co. is in increasing

trend in successive years which shows company is
holding good strategy.
NET SALES TRENDANALYSIS

A sales trend is key performance indicators during a specific period

of time .The purpose is to gain better understanding of past
performance & predict future performance.

Years 2012 2013 2014

Audited Provisional Projected

Sales 94781.96 129881.75 176536.42

 Net sales trend
200000

180000

160000

140000

120000
Net sales

100000

80000

60000

40000

20000

0
1 2 3

INTERPRETATION:- Net sales of an company follows

an increasing trend which means company’s business
is growing and scope for future contrast.
 CONCLUSION

 It is concluded that OWM has sufficient funds to

meet its current obligation every time which is
due to sufficient profits and management.

 Cash and receivable management are too good

because of centralized control on this.

 Safety measures for inventories are also quiet

sufficient in company.
THANK YOU