mini project report of maruthi knitterss

MARUTHI KNITTERSS (HOSIERY MANUFACTURERS & EXPORTERS)

PRESIDENCY BUSINESS SCHOOL 1

Chapter – I

INDUSTRIAL PROFILE

1.1 International Scenario

Clothes are an epitome of a culture. People in different parts of the world have their own styles of dressing which symbolize their culture and status. The last two centuries have seen an upsurge in the use of manmade textiles like polyster, nylon, PP, acrylic etc in almost every part of the world.

Forty years ago, the industrialized countries dominated global exports in this area. Today, developing countries produce half of the world’s textile exports. Moreover, the economic performance of the apparel and textiles industry in developing countries has large impacts on employment opportunities, especially for women. Though Ready-made garment (RMG) industry caters to one of the basic needs of human beings, it came into existence as an industry,( i.e. the manufacture of garments using industrial methods of production) only at the turn of the 20th century with the introduction of sewing machine on a commercial scale. In India too, though it is considered an offshoot of our textile industry which dates back to about the middle of the nineteenth century, and though of all the manufacturing activities in the economy it calls for ordinary technical skills and low capital investment, there was no readymade garment industry worth the name till about the dawn of Independence (1947). A widely accepted definition of Ready Made Garment Industry is contained in the International Standard Industrial Classification of all economic activities adopted by the United Nations including the ILO and followed by the Government of India. It indicates that ‘those establishments which do not make fabrics or knitted fabrics but only cut and make garments out of them, could be covered under the garment industry’.

Global Evolution of Clothing Industry

There were various stages - from a historical perspective - where the textile industry evolved from being a domestic small-scale industry, to the status of supremacy it currently holds. The ‘cottage stage’ was the first stage in its history where textiles were produced on a domestic basis. During this period cloth was made from materials including wool, flax and cotton. The material depended on the area where the cloth was being produced, and the time they were being made. In the later half of the medieval period in the northern parts of Europe, cotton came to be regarded as an imported fibre.



During the later phases of the 16th century cotton was grown in the warmer climes of America and Asia. When the Romans ruled, wool, leather and linen were the materials used for making clothing in Europe, while flax was the primary material used in the northern parts of Europe.

New innovations in clothing production, manufacture and design came during the Industrial Revolution - the new wheels, looms, and spinning processes changed clothing manufacture forever. In the later phases of the 20th century, shuttles that were used in the textile industry were developed and became faster and thus more efficient. This led to the replacement of the older shuttles with new ones.1 Thus, modern techniques, electronics and innovation have led to a competitive, low-priced textile industry today, offering almost any type of cloth or design a person could desire.

Outsourcing in the textile and apparel industry began in the late 1950s and 1960s when Western buyers turned to Japan for the procurement of good quality fabric and textiles at low costs. Later, the motivation of outsourcing to developing countries was not driven by cost considerations alone; rather it followed as a response to change in the structure of demand as well. Garment industry worldwide has been undergoing significant restructuring since the final phase‐out of the Multi‐fibre Arrangement (MFA) on January 1, 2005. The changes have been taking place in terms of relocating production sites on the one hand and coping with the new competition on the other

The Indian textile market and its future growth potential has been captured aptly by the Italian Trade Commission’s observations made in 2009 reproduced as follows :

Clothing, textile and fashion accessories form 39 per cent of the Rs 55,000 crore organized retailing in India.

Consumer spending on apparel in India has grown over the last five years, touching the global benchmark of 5 per cent of the total income

Europe continues to be India's major export market with 22 per cent share in textiles and 43 per cent in apparel; the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32.6 per cent share respectively.

Readymade garments are the largest export segment, accounting for 45 per cent of total textile exports and 8.2 per cent of India's total exports.

Future

The demand for ready-made garments in rural India will surge at an annual rate16.50% to reach Rs. 42,918 Crore or US$10.41 billion by 2010.



Readymade garments exports from India are expected to touch US$ 14.5 billion by 2009-2010 with a cumulative annual growth of 18 to 20 per cent, according to Apparel Export Promotion Council.

The Indian fashion industry is expected to rise at a stupendous pace of 22.67% through 2012

There are several Readymade Garments centre in India, of which the major ones are Mumbai, Coimbatore and Tirupur, Ahmedabad, Ludhiana, Bangalore, Indore. It was thought expedient to focus on two of these in the present project- Tirupur, which is in the process of expanding its existing base, and Bangalore, which is an emerging centre that has grown at an accelerated pace over the last few years and has a dominant presence of women workers.

1.2. National Scenario

The textile industry including readymade garments occupies a unique position in the Indian economy. Its predominant presence in the Indian economy is manifested in terms of its significant contribution to the industrial production, employment generation and foreign exchange earnings. The RMG or also called as the apparel sector is the final stage of the textile value chain and the maximum value addition takes place at this stage. In India RMG industry is fragmented and pre-dominantly in the small/scale sector. Therefore, the sector is low investment and highly labour-intensive industry. This industry is environment friendly as it is least polluting and it could provide employment to the rural population, as this sector does not need sophisticated skill sets.

The RMG industry contributes around 8 per cent of India’s exports, 7 per cent of industrial output and is the largest employment generator after agriculture. It contributes about 14% to the industrial production and about 4% to the GDP. It has immense potential for employment generation particularly in the rural and remote areas of the country on account of its close linkage with agriculture. The contribution of this industry to the gross export earnings of the country is about 37% while it adds only 1 – 1.5% to the gross import bill of the country. It is the only industry which is self reliant and complete in value chain i.e. from raw material to the highest value added products i.e. garments/made ups. As a corollary to this the growth and promotion of this industry has asignificant influence on the overall economic development of our country.

India‘s textile products, including handlooms and handicrafts, are exported to more than a hundred countries. However, the USA and the EU, account for about two-



third of India‘s textiles exports. The other major export destinations are Canada, U.A.E., Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc.

Structure of the Industry

Production Units –Garment production units in India are spread across the country but mainly concentrated in manufacturing clusters. The clusters are also specialized in terms (a) types of garments manufactured (either woven or knitted) and (b) variety of products produced (i.e. Men’s Women’s of Children’s). Major manufacturing centres (19) are Kolkata, Mumbai. Tirupur, Indore, Banglaore, Chennai, Okhla, Gurgaon, Noida, Jaipur, Ludhiana, Bellary, Kanpur, Ahmedabad, Jabalpur, Salem, Erode, Madurai and Nagpur.

Number of Units-Estimated number of units in 19 centres are 33400, that account for 95% of total production of the country. Almost 92% of total units situated in the following 12 bigger centres account for 85% of total production.

Challenges for the Industry

Labour supply – Garment industry depends on migrant labourers. Labour comes from UP and Bihar. However, large clusters like Tirupur, Kolkata, Chennai etc. depend upon local labour force, from nearby villages, due to easy availability. There is greater tendency to employ contractual labour rather than permanent labour. The wages paid are as per the prevailing minimum wages standards. The average reported wage rate is Rs.4000 per month for the labour. One of the major problems faced by the industry is huge shortage of appropriately trained manpower.

Fragmentation – the key problem

According to industry associations, the garment industry in India has not grown to its potential and the main reason for this is the fragmented structure of the industry. Smaller sizes of the production units has led to several drawbacks for the industry such as-

Uncompetitive scale in globalized environment

Low technological development

Lower production

High raw material cost.



Human Resource Development

There is a gap of 2,50,000 managers between the availability and requirement of personnel in the areas of management, merchandising and vendor management. To bridge this gap, the Government has set up

1. Sardar Vallabhhai Patel Institute of Textile Management (SVPITM), Coimbatore

2. Institute of Apparel Management (Through AEPC), Gurgaon

These institutes are expected to create managerial cadre professionals in the apparel, textiles and fashion retail sectors.

3. Apparel Training and Design Centres (ATDCs) for creating skilled manpower

Apparel Training & Design Centres (ATDCs) are running various courses/ programmes to meet the skilled manpower requirements of the textile industry, especially apparel, in the field of design, merchandising and marketing. The Apparel Industry employs approximately 6 million workers, of which approximately 3 million are employed in the export sector. Fifty two Apparel Training and Design Centres (ATDC) are being run by the Apparel Export Promotion Council (AEPC). ATDCs have trained over 21,000 workers since inception.

1.3 Garment Industry in Tirupur

Tirupur, an obscure town in Coimbatore District in Tamil Nadu has been placed in the knitwear map of global garment industry, apart from catering to the whole India. The first knitwear unit in Tirupur was set up in 1925 but the growth of the industry was slow till late 1930s. A series of strikes in late 1930s in knitting factories in the neighbouring towns of Salem and Madurai resulted in the opening of new firms in Tirupur. Subsequently, it emerged as the prominent centre for knitwear in South India by 1940s. In 1942, only 34 units were engaged in the production of knitwear. All these units were composite mills and the production was carried out in the same unit . There are also references to some units performing specific tasks / operations like bleaching and dyeing, located in the larger units. By 1961, the number of units rose to 230 and till early 1970s, the industry catered only to the domestic market. These units were mostly composite mills without any subcontracting system of production. It was in the 1980s, the export market began to expand and subsequently Tirupur emerged as the largest exporter of



cotton knitwear from the country, accounting for roughly 80 percent of the total cotton knitwear exporters.

There exist local representative institutions and support bodies that initiate the development of the knitwear sector in Tiruppur. Textile Committee under the Ministry of Textiles, Apparel Export Promotion Council (AEPC), The South Indian Hosiery Manufacturer’s Association (SIHMA), Tirupur Exporters Association (TEA), Knit Cloth Manufacturer’s Association (KCMS) are some of the most important associations operating in Tiruppur extending a trade related help to the entrepreneurs.

Tirupur is now a leading exporting centre of knitted garments and undergarments. It is a well integrated cluster with maximum number of units in to garment making followed by knitting, dyeing and bleaching, fabric printing, other ancillary units and compacting and calendaring units.

Since Tirupur is an export oriented cluster, machines used at various stages of production are largely imported to match the international standards of production. Different types of machines are imported from Europe/USA and Far East like Japan/Taiwan/Korea. Of late Tirupur exporters have started using machines of Chinese origin due to cost considerations. TUF & EPCG schemes are used extensively to import technology. Exports through Buying Houses in India and direct exports to importer/wholesaler in India are the preferred channels of distribution. However, there are several units who are using commission agents. Some units are also directly targeting retailers abroad.



Chapter -II

COMPANY PROFILE

The project entitled “Organizational Study on MARUTHI KNITTERSS

(HOSIERY MANUFACTURERS & EXPORTERS), TIRUPPUR” help me to know

more about the functions, structure, policies and different procedures of that organization.

The above said company is a partnership firm and has been into exports for the last

14years. They are the largest knitters in Coimbatore, with over 180 employees and

8million USD$.

Maruthi was founded by Mr. Sathish and began garment business on 1999 as

manufacture and exporter. Maruthi Knitterss, Hosiery manufacturers and Exporters

company was started as a “Partnership Firm” in the year 2001. They are one of the

leading garment manufacturer and exporter in India. We have own Knitting, Printing,

Washing, and cold Pigment dye unit. Maruthi Knitterss are doing all type knitted and

woven garments. Like Knitted T-shirts, Polo-shirts, Pants, Woven boxer shorts, Kids

styles. We have well experienced for washing garments,(acid wash, Stones wash, Denim

wash) and Cold pigment dye, Garment dyed. They are specialized for emblissement

works.

Maruthi Knitterss production capacity is 50,000pcs/month. We have well set-up

and communication for our raw materials suppliers and processing suppliers. The main

motive is On- time delivery, Keep Quality, Continuously improvement and Satisfaction

Service to Customers.

Vision

To offer the world the best in knitter.

To create customers satisfaction and hence customer delight.

To provide quality service and products.



Mission

Quality

Service

Consistency

Quality

Maruthi Knitterss is an ISO 9001:2000 certified company; it follows international standards of quality.

Consistency

On- time delivery, Keep Quality, Continuously improvement and Satisfaction Service to Customers

2.1. Infrastructure

Maruthi Knitterss, Hosiery manufacturers and Exporters are located in Tirupur, Tamilnadu. The total built up area is 2500 sq meters, apart from this the company directly employs over 180 employees and at least another 100 are outsider of the company.

Contemporary technology and state of the art infrastructure make the difference in providing an environment which inspires high level of performance. They use tools such as Computer Aided Layer Optimization in order to check material consumption and costs and to remove wastages. Their offices are equipped with complete amenities to facilitate a relaxed and cheerful working atmosphere for the employees.

2.2. Technology

It is Maruthi’s policy to make sure that every part of the product is tested to comply with the material requirements of the importing country, customer and end user. They use services of the best testing labs in ITS, SGS & others. Our technologists check that the materials and reports are as per various parameters defined by our customers and only then give the approvals.



2.3. Quality Policy & Principle

Internal charter of ethics

A charter of ethics was written by us in order to guarantee a responsible approach and the level of service that results from it.

• Independence and integrity of our teams

We also assure a daily monitoring of inspectors in order to detect any insufficiency in this essential point of its charter

• Compliance with local standards

The local laws are well known and compliance with them is carefully analyzed.

2.4. Product Profile

Be it fashionable ensembles for Kids, trendy wear for women or Comfort wear for men, Maruthi knitterss have them all. In addition to mass production of fashion garments for men & ladies, all types of knit and woven. Our special products Corporate wear, Organic & Mercerized wear and Promotional & Event product etc.

Men’s wear

Casual wear

Sleep wear

Sports Wear

T-shirts

Polo-shirts

Pants

Woven boxer

Jackets

Sweaters

Shorts



Ladies Wear

Casual Wear

Pyjama Sets

Sleep Wear

Sweaters

Jackets

Product Range

Various kinds of Yarns being used to manufacture a wide range of sweater, Tops, T-Shirts, Jackets, Etc

Compact cotton, Combed cotton Mercerised Cotton, Lambswool/Nylon, Angora/Nylon, Cotton Slub, Cotton boucle, Space Dyed Cotton, Cotton Thick & Thin, Fancy Blended Boucle.

Various Kinds of Embroidery:

Machine embroidery, Hand Work, Beads Work, Needle Punch Embroidery

Various Kinds of Knit Structure:

Plain jersy, Ribs, Jacquard, Intarsia, Pointels, Cables, Transfer, Fancy Structure, etc

Customers of Maruthi Knitterss

Diesel

Soliver

Scorpion Bay

Lumber Jack

Old Khaki

Name it

Belika



Chapter - III

ORGANISATION STRUCTURE

3.1. Importance of organization

A group of people who are bound together in formal relationship to achieve a common goal Examples are schools, hospitals, institutions, social clubs etc. Organization is a structural process of defining and grouping and regrouping the activities through organization. In an organization manager is able to perform the function like planning, organizing, directing and controlling which are the basis for management.

If an organization is not properly designed and reveals a number of problems then the division will become in effective. The result will be slow and poor division, lack of co-ordination of activities, conflict among members. Therefore leadership, motivation and co-ordination should be achieved. Types of organizations are formal, informal and project organization.

3.2. Organization structure of Maruthi Knitterss

The formal structure of Partnership Firm with two partners head Maruthi Knitterss, one partner (Admin and Finance) and second Partner (technical)

The concerned department heads have under them a team of specialist officer’s designation as managers. Below them are assistant and helpers.

Departments and their functions

1. Purchase Department2. Production Department3. Personnel Department4. Accounts Department5. Marketing Department6. R &D Department7. Quality Control Department8. Supply Chain Management

MARUTHI KNITTERSS

PRESIDENCY BUSINESS SCHOOL

Organization structure of Maruthi

Admin & Finance section

Personnel DeptPurchase Dept

Account Dept

Marketing Dept

KNITTERSS (HOSIERY MANUFACTURERS & EXPORTERS)

Organization structure of Maruthi Knitterss

Partnership firm

Admin & Finance

Personnel DeptPurchase Dept

Account Dept

Marketing Dept

Technical

Production DeptDesign Dept

Planning Dept

Quality Control Dept Export Dept

(HOSIERY MANUFACTURERS & EXPORTERS)

12

Production Dept

Planning Dept

Quality Control Dept

MARUTHI KNITTERSS


Personnel(Admin)

Manager

Assistant

Purchase

HOD

Assistant Manager

Staff


Partner(Admin and

Finance)

Purchase

HOD

Assistant Manager

Staff

Accounts

HOD

Staff

Marketing

HOD

Assistant Manager

Staff


13

Marketing

HOD

Assistant Manager

Staff

MARUTHI KNITTERSS


Production

Manager

Asst Manager

workers

Designer

Asst Manager


Partner (technical)

Designer

Manager

Planning

Manager

R & D

Asst Manager

Quality Control

Manager

Staff


14

Quality Control

Manager

Staff



3.3. Departments and their functions

1) Research and Development departmentThe R & D Department is under the partner (Technical) and is headed by

qualified developers who reports directly to R & D assistant manager and the line is followed up by the chain of command.1. The R& D dept was established in the year 2005 as a separate Business Unit at

Maruthi Knitterss, to satisfy the growing need to develop and control textile raw material quality.

2. Maruthi Knitterss has established itself as a harbinger of new yarn quality developments, reliable source of quality yarns & textile materials.

3. Research & Development in collaboration with key fibre suppliers, and top spinning companies new yarn quality & set standard.

4. Finalizing fibre and yarn process parameters for selected quality.

2) Design & Development departmentA manager heads this department and he has under him fashion designers

and draft men. He is responsible for the following:1. The design team develop those trends in close collaboration with our customer

according to their specific market needs.2. They constantly work on new fabrics and trims and experiment with new

washes and finishes to suit our customer styles.3. All fabrics, artwork, trims and labels are customised to fit this collection, to

inspire our customer and match their market segment.

3) Supply Chain Management1. The aim is that through improved visibility, tracking and performance, impacts

and risks will be better managed in the supply chain. Sustainability and business resilience also drive innovation.

2. To further sustainability in our supply chain, we are developing tools and programs, and working with our partners, to improve working conditions and environmental performance, and also provide sustainable sourcing options.

3. They will continue to work with our customers, suppliers and industry partners to improve our collective knowledge and capabilities around sustainable sourcing, products and packaging.



4) Quality controlManager heads this department followed by manager and qualified

assistants. Its functions can be summarized as follows:1. They belief is that good quality is achieved by quality in our systems and

processes.2. They basic process correspond to customers requirements.3. These processes enable us to have an uninterrupted work flow and achieve the

high quality levels required by our customer.4. The process of quality management commences at the earlier stages of the

product development, with evaluation and selection of relevant materials and components.

5) Purchase Department

Purchase manager heads this department. The responsibilities entrusted to him are:

1. Material and equipment purchase bill adhering to the company purchasing policy.

2. Studying the market for prices trends and delivery times and maintaining records of source of material etc.

3. Buying materials at lower cost consistent with service and qualify required.4. Avoid any waste while maintaining the lowest possible outlay on stock

consistent with making the material needed for production as and when required.

6) Production departmentThis department is headed by a manager, his functions includes:1. Regular checking of process and operation to establish the correct way to carry

out production activities to reduce fatigue and to eliminate necessary operation.2. Reporting and investigation excess costs and being aware of modern trends in

manufacturing methods and machines.

7) Personnel departmentThis comes directly under Partner (Admin and Finance) and Manager

(Personnel and Admin) heads the department. The objectives of the personnel department is,1. Assess the manpower requirement of the organization.2. Recruit the appropriate candidates.3. Induct the candidates and develop them to the requirement of the organization.4. HRD is one of the important functions of this department.



8) Planning departmentThis is headed by a manager and is assisted by an assistant manager. This

department is entrusted with the job of development. This department looks after the expansion programme of the company.

9) Accounts departmentFinance manager who has under him an assistant manager and staff heads

of the account department. This department is concerned with maintaining proper method of book keeping, recording transaction and maintaining books of account and preparation of financial statements i.e. Profit and Loss account and finally the balance sheet.

10) Marketing departmentA Marketing and Sales of Maruthi Knitterss product is taken care by a

marketing manager and staff. Marketing department not only checks out dispatch date but also offers after sales service.

This department accepts orders directly from the customers then verifies it and passes the same to the design department. The design is based on the specification of marketing department, which are of two types i.e. standard product and other is non- standard product. Both these specification as per requirements, passed into the production department where the specification as per requirements are passed into the production department where the specified product is manufactured.

11) Order execution departmentOrder execution department is under the direct control of partners (both

admin and technical). It comes under the marketing department with two assistant managers. When the order for goods are received from within the country it is responsibility of manager concerned to supply the goods demanded as per received, quality prescribed and dispatch them with the approval of partners.



12) Merchandising Team

• The merchandising is the key to successful execution of a customer’s request. Thebusiness team is the main contact point of the customers and the key members of this team often travel to the customer to improve their understanding of the customer needs and the market.

• The merchandisers' have specific factory experience which enables them to understand the requirements of the customer.

• The business team is expected to contribute to the customer, not only in terms of communication and follow-up, but also in terms of making a better product which sells well at the point of sale.

MARUTHI KNITTERSS


STUDY ON DIFFERENT DEPARTMENT

5.1 Personnel department

Department chart of HRM

Selection and Recruitment in Maruthi Knitterss

The function of selection is one of the most important functions of personnel &admin department and recruitment is job on the right time at the place.

In Maruthi Knitterss, various department heads are entrusted with the responsibility of assessing the present and future manpower requirement in their departments. If any manpower requirement is known, the concerned Manager, projects it to the personnel department. Hence,to personnel department. Once they are convinced about the justification of manpower requirement they take the responsibility of finding the suitable person.

The personnel department of Maruthi Knitterss uses two manpower requirement, namely internal and external sources.

Receptionist Administration


STUDY ON DIFFERENT DEPARTMENT

Department chart of HRM

Selection and Recruitment in Maruthi Knitterss

The function of selection is one of the most important functions of personnel &admin department and recruitment is the process of placing the right man on the right job on the right time at the place.

In Maruthi Knitterss, various department heads are entrusted with the responsibility of assessing the present and future manpower requirement in their

y manpower requirement is known, the concerned Manager, projects it ent. Hence, the Manager will give the job specification

to personnel department. Once they are convinced about the justification of manpower hey take the responsibility of finding the suitable person.

The personnel department of Maruthi Knitterss uses two sourcesrequirement, namely internal and external sources.

Partner

Manager

Assistant Manager

Administration Driver Security Keeping


19

Chapter - IV

The function of selection is one of the most important functions of personnel the process of placing the right man on the right

In Maruthi Knitterss, various department heads are entrusted with the responsibility of assessing the present and future manpower requirement in their

y manpower requirement is known, the concerned Manager, projects it will give the job specification in detail

to personnel department. Once they are convinced about the justification of manpower

sources to fulfill their

House Keeping



Internal Source

Internal search is made to identity surplus manpower in certain departments in areas of shortage. This can be done through transfer and promotion.

External Source

Sometimes it may not be possible to find a certain type of skilled labor within the organization. Then they go for external source.

The major external sources used by Maruthi Knitterss

1. Advertisement in leading newspapers.2. Campus recruitments in colleges.3. Direct hiring personnel.

1) Screening the application The application forms of the candidates are verified by personnel

department and details such as educational qualification, work experience and other relevant documents are considered.

2) Preliminary InterviewOnce the candidates are selected on the merit basis, they are called for an

interview. Hence the candidates are interviewed to know whether they meet the job specification, requirements given by the concerned Manager.

3) Group discussion The selected candidates are called for a group discussion. In this particular

topic relevant to their job is given for discussion and the various aspects of the candidates like, profession competence, knowledge about subject, group dynamics and leadership qualities are noticed.

4) Final InterviewAfter group discussion, shortlists of selected candidates are made and they

are called for the final interview. At Maruthi Knitterss, the interview technique used is planned interview. In this they set certain fixed parameters according to the post and test whether the candidates meets their standard.



5) Selection and placement Hence the selected candidates are sent offer letters confirming their

selection and the responding candidates are given appointment orders.

6) Induction In this the candidates is placed on a specific job and introduced with

organization structure and other policies, benefits and procedures.

7) Follow upThis is to confirm whether the right man is placed on the right job. In

Maruthi, a continuous monitoring of the performance of a new employee is done and the performance is reviewed once in three months. After the successful completion of probationary period of 6 month the candidate is placed as a permanent employee in the company.

Compensation and reward systems at Maruthi Knitterss

The Maruthi Knitterss has well-established compensation and reward system for the productivity and well being of its employees. These are about 180employees in the company. The system includes basic pay, PF, bonus, DA, gratuity, annual increment, ESI, pension, accommodation etc.

1. SalaryThe salary of the employee of the Maruthi Knitterss from Rs. 3000 and Rs. 20,000 and it gives annual increment of 8%.

2. DAThe DA is fixed according to the consumer price index of each period.

3. Bonus In Maruthi Knitterss, the bonus rates 10% of the basic pay during the festival seasons.

4. Provident fundCompany provides PF facilities for their employees. This contribution from employees and employer to the PF is 12% of the basic pay.

5. ESIAll the employees of Maruthi Knitterss are covered under ESI scheme. In certain cases medical reimbursement is also given. In case of an accident or death of an employee ESI pays compensation.



6. Cash rewardsThe concerned Manager of every department finds out the quality workers from their department. The Manager evaluates the selected employees performance and selects best among them and gives cash reward of Rs. 500 to Rs. 2000 for a fixed period.

7. Non-Financial rewardOther than financial rewards, Maruthi Knitterss offers non-financial rewards also; these rewards are mostly given to the managerial staff. It includes providing vehicle, telephone, accommodation facilities etc, or re-imbursement of certain expense.

8. Promotion and transferIn Maruthi Knitterss, promotions are given strictly on merit basis and efficiency. The management has full authority to promote or demote an employee.

9. Disciplinary actionsMaruthi Knitterss follows strict disciplinary method and there is no discrimination among the employees in case of disciplinary actions. Disciplinary actions are taken according to the genuinely of cases. In certain cases humanitarian consideration are also given.

MARUTHI KNITTERSS


5.2. Finance department

Finance manager or the accounts manager is the head of finance department. As per department chart he is followed by assistant manager, two junior office assistants follow him.

Senior office assistants have differesponsibilities of personnel section. any clarification and report to him.

Junior office assistants also have many responsibilities on their shoulders as shown inresponsibilities of personnel section. They are also supposed to clarify their doubts and report to HOD. He will in turn report to partners about functioning of the whole department.


Department chart of Finance

Finance manager or the accounts manager is the head of finance department. As per department chart he is followed by assistant manager, two senior office assistants and two junior office assistants follow him.

Senior office assistants have different tasks to be performed as shown below in responsibilities of personnel section. They are supposed to meet assistant manager for any clarification and report to him.

Junior office assistants also have many responsibilities on their shoulders as shown inresponsibilities of personnel section. They are also supposed to clarify their doubts and report to HOD. He will in turn report to partners about functioning of the whole

Partner

HOD

2 Sr. Staff 2 Jr. Staff


23

Finance manager or the accounts manager is the head of finance department. As per senior office assistants and two

rent tasks to be performed as shown below in They are supposed to meet assistant manager for

Junior office assistants also have many responsibilities on their shoulders as shown in the responsibilities of personnel section. They are also supposed to clarify their doubts and report to HOD. He will in turn report to partners about functioning of the whole



Responsibilities of personnel in accounts department

Senior office assistants

1. Assisting bank reconciliation’s 2. Yearly finalization of accounts.3. Monthly and annual P.F returns.4. Assisting in Sales Tax and income tax assessment.5. Sales tax, entry taxes monthly and annual reports.6. Submission of monthly stock statement to bankers.7. Partial data entry8. Board resolutions.9. Providing details to the auditors10. Maintaining of rough documents and bank book.11. Preparation of cheques and bank vouchers12. Assisting sales taxes and incomes tax assessment.13. Submitting of buyers documents and statement to bankers.

Junior office assistants

1. Filling2. Partial data entry 3. Salary statements4. Commissions payable statements5. Calculation of incentives6. Preparation of monthly clean bills statement7. Preparation of receipts.8. Maintaining of daily cashbook, suspense register.9. Filling of sales tax, income tax, P.F, E.S.I., R.O.C & return.10. Bank work deposits, withdrawals, bank guarantees, clearing of documents etc.

E.S.I. – Employee State InsuranceROC – Register of CompaniesP.F. – Provident Fund.

MARUTHI KNITTERSS


4.3. MARKETING DEPARTMENT

Department chart of marketing

Market

A market is an area for potential exchanges i.e. a group of buyers and sellers interested in negotiation the terms of purchase and sales of goods and service.

Marketing

Marketing is a societal process, by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of the others.

Marketing process of Maruthi Knitterss

Marketing and sales of Maruthi Knitterss products is taken both the Partners. The marketing process in the marketing division takes place in the following ways.

Marketing department accepts orders from the their orders by visiting personally/phone/fax,

Details are noted by receptionist of Maruthi Knitterss.

Purchase manager


NG DEPARTMENT

Department chart of marketing

A market is an area for potential exchanges i.e. a group of buyers and sellers interested in negotiation the terms of purchase and sales of goods and service.

process, by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of the

Marketing process of Maruthi Knitterss

Marketing and sales of Maruthi Knitterss products is taken care by a Managers under both the Partners. The marketing process in the marketing division takes place in the

Marketing department accepts orders from the customers; customersvisiting personally/phone/fax, through agents.

Details are noted by receptionist of Maruthi Knitterss.

Partner

HOD

Assistant Manager

Executive Manager

Executive customer support


25

A market is an area for potential exchanges i.e. a group of buyers and sellers interested

process, by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of the

a Managers under both the Partners. The marketing process in the marketing division takes place in the

customers; customers will place



Marketing department passes order taken from the customers to the HOD.Planning and customer support, who examines this information for adequacy of specification and other relevant requirement, such as type, quality, price, delivery schedule, inspection requirement, terms of payment, test method/standards and capability to ensure regularity and confirms whether these can be met.

Any amendments in the contract, HOD Planning and Customer support, arrange to resolve the same by reviewing with concerned department.

During the review whether the product is standard is also discussed.

The manager concerned will give quotation and specification based on the type of the product. In mean time customer can classify and confirm his order.

Once the customer confirms his order the file is placed in contract review meeting, where HOD’s from different department like planning, design, production, quality control, order execution and technical advisor discuss to find out the ambiguity or short coming in the order is taken into consideration.

After the contract review meeting, the order is passed to the planning department for registration allotting a job order.

HOD of planning department sends to the customers, the standardized order acceptance form or standard letter.

Quotation submitted to export department for further documentation and shipment.

MARUTHI KNITTERSS


Marketing Process

7.Receive Purchase

8.Documentation

9.Shipment (clearing and forwarding

agency)

10.Delivery documents


1. Identify customers

2. Enquiry review

5.Contract

6.Payment terms

7.Receive Purchase

order

8.Documentation

10.Delivery documents


27

2. Enquiry review

3.Quotation

4.Negotiation

5.Contract review



Competitors

To prepare an effective marketing strategy a company must consider its competitor as well as its actual and potential customers, which is especially necessary in slow growth and winning them from competitors.

There are many competitors of Maruthi Knitterss in Tirupur and outside the Tirupur area. Most of the competitors are collaborated with the foreign companies and functioning as an MNC’s some of them is:

Aviram knitters

Rajpriya Exports

UK Textiles

CCZ Knitters

Sriyansh knitters Exports of Fashion Apparels

J S Knitting and Exports pvt. Ltd.

Anmol Knitters

Plucky Knitters

Texcity Apparels

Eswari Knitting

Knitters Nightmare

Desi Knitter

Euro Impex

Major customers of Maruthi Knitterss

Diesel

Scorpion Bay

Old Khaki

S.Oliver

DRM TM

BELIKA

Name It

Clippers-San Diego

LumberJack

MARUTHI KNITTERSS


4.4. Production department

Department chart of Production

As per the department chart under production there are two section i.e. production

managers and fashion designers.

The production process starts with procurement of raw material,

according to the customer specification and further changes in the samples given by the

foreign buyers.

MANUFACTURING PROCESS

The fabric in different colors/ designs is cut with scissors as per required design size and product. The cut pieces are stitched with the help of stitching/ interlocking machine. These stitch pieces are packed after inspection for dispatch.

MANUFACTURING PROCESS:

1. Raw material: Grey yarn – 100% cotton, Blends, Mélanges, etc to outsource.

2. Circular Knitting: Grey fabric, various structures: via, Single Jersey, Pique, Rib, Interlock, Waffle, etc can be converted at the in

Manager

Assistant manager

Workers


Production department

Department chart of Production


managers and fashion designers.

The production process starts with procurement of raw material, then the design are made


MANUFACTURING PROCESS

The fabric in different colors/ designs is cut with scissors as per required design size and cut pieces are stitched with the help of stitching/ interlocking machine.

These stitch pieces are packed after inspection for dispatch.

MANUFACTURING PROCESS:

100% cotton, Blends, Mélanges, etc to outsource.

ing: Grey fabric, various structures: via, Single Jersey, Pique, Rib, Interlock, Waffle, etc can be converted at the in-house facility.

Partner

Manager

Assistant manager

Workers

Designer

Assistants

Supervisors


29


then the design are made


The fabric in different colors/ designs is cut with scissors as per required design size and cut pieces are stitched with the help of stitching/ interlocking machine.

100% cotton, Blends, Mélanges, etc to outsource.

ing: Grey fabric, various structures: via, Single Jersey, Pique, Rib,



3. Processing: To be outsourced (Includes: Heat setting, Washing, Scouring, Mercerizing, Dyeing, Slit opening Brushing, Raising, Rotary printing, Transfer printing, finishing, etc).

4. Finished Fabric: After processing finished fabric is received in roll form or flat folded which will be issued to Apparel Industry.

5. Fabric Inspection: Checking for fabric parameters, color matching & visual quality.

6. Cutting: Cutting of fabric into different parts of a garment based on the styling with a computerised cutting machine.

7. Bundling: Bundling together all the parts of a garment into a bundle of 30 to 40 garments to avoid mix-up of different rolls & lots in a color.

8. Placement print /Embroidery: If the motif of the print / embroidery is large, the same is done in panel form.

9. Sewing: Stitching together all the fabric cut panels to form a garment in the required styling with the respective accessories / trims.

10. Printing / Embroidery: Small motifs are printed / embroidered on to the garment.

11. Snap/Button hole/ Buttoning: Attaching the snaps / buttons onto the garment.

12. Trimming/ Checking: Cutting of extra & unwanted threads / Checking of garments for any defects.

13. Ironing: Steam pressing of Garment for better finish & appearance.

14. Inspection: Final inspection of garments for measurements, visual appreance, etc.

15. Folding: Folding the garment as per customer’s requirements.

16. Metal detector: Passing the garments thru a metal detector for any metal parts viz, broken needles, etc).

17. Packing: Pack the garment with required materials into cartons, seal the cartons & store it in a secured ware house.

MARUTHI KNITTERSS


STEP IN MANUFACTURING PROCESS

Raw material

Knitting

Fabric

Processing

Embroidery


STEP IN MANUFACTURING PROCESS

Cutting

Bundling

Embroidery

Sewing Ironing

Inspection

Folding

Packing


31

Dispatch

container

Port

shipment



4.5. EXPORT DOCUMENTATION AND PROCEDURES

Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country.

1. Commercial invoice2. Bill of lading 3. Consular invoice 4. Certificate of origin 5. Inspection certification 6. Dock receipt and warehouse receipt 7. Destination control statement 8. Insurance certificate 9. Export license 10. Export packing list

STEP1: Enquiry:

The starting point for any Export Transaction is an enquiry.

An enquiry for product should, inter alia, specify the following details or provide the following data

1. Size details - Std. or oversize or undersize

2. Drawing, if available

3. Sample, if possible

4. Quantity required

5. Delivery schedule

6. Is the price required on FOB or C& F or CIF basis

7. Mode of Dispatch - Sea

8. Mode of Packing

Terms of Payment that would be acceptable to the Buyer - If the buyer proposes to open any Letter of Credit, any specific requirement to be complied with by the Maruthi Knitterss.

Is there any requirement of Pre-shipment inspection and if so, by which agency Any Certificate of Origin required - If so, from what agency.



STEP 2: - Proforma Generation:

After studying the enquiry in detail, the export manager of Maruthi Knitters, Hosiery, Manufacturer and Exporter will provide a Proforma Invoice to the Buyer.

STEP 3: Order Placement:

If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the Buyer will then place an order, giving as much data as possible in terms of specifications, Part No. Quantity etc. (No standard format is required for such a purchase order)

STEP 4: Order acceptance:

They immediately acknowledge receipt of the order, giving a schedule for the delivery committed.

STEP 5: Goods Readiness & Documentation:

Once the goods are ready duly packed in Export worthy cases/cartons (depending upon the mode of dispatch), the Invoice is prepared by the manager.

If the number of packages is more than one, a packing list is a must.

Even If the goods to be exported are excisable, no excise duty need be charged at the time of Export, as export goods are exempt from Central Excise, but the AR4 procedure is to be followed for claiming such an exemption.

Similarly, no Sales Tax also is payable for export of goods.

STEP 6: Goods Removal from Works:

There are different procedures for removing Export consignments to the Port, following the AR4 procedure, but it would be advisable to get the consignment sealed by the Central Excise authorities at the factory premises itself, so that open inspection by Customs authorities at the Port can be avoided.

If export consignments are removed from the factory of manufacture, following the AR4 procedure, claiming exemption of excise duty, there is an obligation cast on the exporter to provide proof of export to the Central Excise authorities.

STEP 7: Documents for C & F Agent:

They are expected to provide the following documents to the Clearing & Forwarding Agents, who are entrusted with the task of shipping the consignments, either by air or by sea.

Invoice



Packing List

Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.

AR4 - first and the second copy

Any other declarations, as required by Customs

On account of the introduction of Electronic Data Interchange (EDI) system for processing shipping bills electronically at most of the locations - both for air or sea consignments - the C&F Agents are required to file with Customs the shipping documents, through a particular format, which will vary depending on the nature of the shipment. Broad categories of export shipments are:

Under claim of Drawback of duty

Without claim of Drawback

Export by a 100% EOU

Under DEPB Scheme

STEP 8: Customs Clearance:

After assessment of the shipping bill and examination of the cargo by Customs (where required), the export consignments are permitted by Customs for ultimate Export. This is what the concerned Customs officials call the ‘LET EXPORT’ endorsement on the shipping bill.

STEP 9: Document Forwarding:

After completing the shipment formalities, the C & F Agents are expected to forward to the Exporter the following documents:

Customs signed Export Invoice & Packing List

Duplicate of Form SDF

Exchange control copy of the Shipping Bill, processed electronically

AR4 (original duplicate) duly endorsed by Customs for having effected the Export

Bill of Lading or Airway bill, as the case may be.

STEP 10: Bills negotiation:

With these authenticated shipping documents, they will have to negotiate to the relevant export bill through authorized dealers of Reserve Bank, viz., Banks.

Under the Generalized System of Preference, imports from developing countries enjoy certain duty concessions, for which the exporters in the developing countries



are expected to furnish the GSP Certificate of Origin to the Bankers, along with other shipping documents.

Broadly, payment terms can be:

DP Terms

DA Terms

Letter of Credit, payable at sight or payable at... days.

Step11: Bank to bank documents forwarding:

The negotiating Bank will scrutinize the shipping documents and forward those to the Banker of the importer, to enable him clear the consignment.

It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds, which factor has to be intimated to the Reserve Bank by means of periodical Returns.

STEP 12: Customs obligation discharge:

As indicated above, Exporters are also expected to provide proof of export to the Central Excise authorities, on the basis of the Customs endorsements made on the reverse of AR4s and get their obligation, on this score, discharged.

STEP 13: Receipt of Bank certificate:

Authorized dealers will issue Bank Certificates to them, once the payment is received and only with the issuance of the Bank Certificate, the export transaction becomes complete.

It is mandatory on the part of the company to negotiate the shipping documents only through authorized dealers of Reserve Bank, as only through such a system Reserve Bank can ensure receipt of export proceeds for goods shipped out of this country.



4.6. Planning Department

The department acts as a mediators design and production department. The planning process starts from marketing department, which is in charge of noting down the specifications as per customer demands. There specifications are passed on to design department, which is in charge of designing the product as per specification. Report is sent to the planning department and this department sets up a final dispatch date as per the complete design and producing the product. The whole process is planned and executed with in a specified date of planning department. This department also plans for future development also plans for future development and expansion of company.

4.7. Quality control department

• ISO 9001:2000 is a series of quality standard formulated by international organization for standardization. The belief is that good quality is achieved by quality in Maruthi Knitterss systems and processes.

• The basic processes correspond to customers requirements. These processes enable us to have an uninterrupted work flow and achieve the high quality levels required by our customer.

• The process of quality management commences at the earliest stages of product development, with evaluation and selection of relevant materials and components.

4.8. Research and Development department

• R& D dept was established in the year 2005 as a separate Business Unit at Maruthi Knitters, to satisfy the growing need to develop and control textile raw material quality.

• Maruthi Knitters has established itself as a harbinger of new yarn quality developments, reliable source of quality yarns & textile materials.

• Research & Development in collaboration with key fibre suppliers, and top spinning companies new yarn quality & set standard.

• Finalizing fibre and yarn process parameters for selected quality.



Chapter- V

SWOT (Strength, Weakness, Opportunity and Threat) Analysis:

Strengths

Market:

Strong presence in the export market

Developing trust and relationship in the long run

Technology:

Availability of customised machines

Availability of imported high speed machines of international standard Demonstration effect

Inputs availability:

Raw material and allied items available in sufficient quantity since source is located close to Tiruppur.

Skills:

Workers are skilled and working very hard.

Skilled laborers are trained from reputed institutes.

Weakness

Markets:

Losing ground in the international market because of the infrastructure problem.

Price competition in the international market

Middlemen/traders enjoying most of the profits in the value chain Technology:

Traditional method of production

Low level of technological development



Manufacturing defects and rejection

Problems with quality and productivity


Most of the raw materials are procured outside Tiruppur like from Salem, Erode, Coimbatore

High duties

Hardly any changes in design, technology process and marketing

Skills:

No skill upgradation training for the workers in large-scale unit.

Scarcity of skilled laborers

Business Environment:

Business environment is changing

Buyer’s requirement is on higher side and SSI sector has to invest more. Competition is going to increase between entrepreneurs

Innovative capabilities.

Opportunity:

Markets

Globalization can provide tremendous market potential for the competitive firms

Tariff and non-tariff barriers are depleting

Quality and productivity is the rule of the game

Enterprises can join hands together for international marketing, brand building and participation in trade fairs



Technology:

Advent of latest technology with the intervention of various departments/firms

Creation of technological awareness among entrepreneurs

Prospects of establishing common display centre at cluster is becoming brighter


Competition is going to make availability of inputs cheaper and sufficient

Innovation capabilities:

Exposure visits, participating in exhibitions may make the entrepreneurs and technicians more innovative and problem solving

Demonstration effect Skills:

Increased awareness is likely to improve the skill base of the worker


Changing business environment can provide opportunity for enterprising firms

Threat

Markets:

Competition is going to increase

Overseas importers are smart enough to change their sourcing country since the quota system removed

Imports is going to increase in the coming years since local supplier is not able to supply in time and time constraints from outside

Technology:

Low level of technological development

Technology can impose a major threat unless it is changes/modernized



Technology is an ever changing process


Difficulty in encountering competition unless raw material are made cheaper, abolish or reduce duty

Quality of raw material

Innovation capabilities:

Innovation is required in every facet of business operations

Skills:

Skill base of the workers need upgradation to adopt latest technology


The changing business environment is always a problem for the less enterprising firms.



Chapter -VI

FINDINGS, SUGGESTIONS AND CONCLUSION

Findings

• Presence in Making Region With 14 years experience in making from the region

• Value Addition They add value to your product and it's development with our pre-existent and longstanding relationships through the complete supply chain

• Strong technical Know-how They have a good understanding of all the technical aspects of the manufacturing of a product (garment or others) including cutting and sewing operations.

• Quality Assurance : They are competent in assuring that the manufacturer is following the right process during the product development and production stage

• Smooth Administration Processes : The service departments including finance, accounts and logistics ensure smooth administration of all financial and logistics processes.

• Social and Technical Compliance : Quality Products manufactured in Clean & Hygienic environment and in accordance with all applicable legislations of the State / Country of manufacture regarding industry minimum standards.

Suggestions

The various departments should be supplied with more specialized work force so that efficiency can be increased.

The company should consider exporting its products by collaborate with foreign companies in technology and marketing in order to keep up with the competition.

The pricing policy and marketing strategies must be reviewed.

The top management should monitor the productivity of its employees. If the level of productivity is higher than expected level the employees should be rewarded. This will enable him to perform in future and it will also motivate his colleagues.



The company senior should guide their subordinates at times of difficulty. The seniors should encourage the sub ordinates to do what feel is best for the organization. This will help to develop effective communication between various levels of management and employees in the organization.

The company should have some sports or recreational facilities for its employees.

Conclusion

To conclude the study it may be express the given suggested measures will help the MARUTHI KNITTERSS to improve the overall performance of the company.

Each team has resources dedicated to Design, Product Development, Fabric, Merchandising, Order and Production Management, Technical and Quality assurance.

These teams have the expertise and resources to fulfil customer requirements and are structured to work exactly as per the needs of the customer.

They add value to the product and it's development with our pre-existent and longstanding relationships through the complete supply chain.

They are one of the leading garment manufacturer and exporter in India.



BIBLIOGRAPHY

a) MARKETING MANAGEMENT - Philip Kotler Millennium Edition.

b) HUMAN RESOURCE MANAGEMENT- K Aswathappa

c) ORGANISATION BEHAVIOUR - K Aswathappa

d) WEBSITES www.ipaindia.comwww.fibre2fashion.comwww.indiaexports.com

mini project report of maruthi knitterss

Education