ocm project(1)
TRANSCRIPT
MANUFACTURING PROCESS
OF
OCM INDIA LIMITED
A Project Report
Submitted to Guru Nanak Dev University, Amritsar
for the Partial Fulfillment of the Degree of
Master of Commerce II
Submitted to Submitted by:
Dr. Bhushan K. Sharma Shikha Sharma
POST GRADUATE DEPARTMENT OF COMMERCE,
HINDU COLLEGE, AMRITSAR
DECLARATION
I hereby certify that project entitled MANUFACTURING PROJECT OF
INDIA LIMITED submitted for the completion of summer training to the
Hindu College, Amritsar under G.N.D.U., Amritsar is an authentic record of
my work carried out under the supervision of Sh. S.S.KHERA at OCM
India Limited.
Shikha Sharma
This is to certify that the above statement made by the candidate Shikha Sharma
is correct to the best of my knowledge.
Dr. Bhushan K. Sharma
ACKNOWLEDGEMENT
Nobody in this world is perfect in the field of study. One needs to be guided
and supervised by experienced and intelligent persons at every step. So, I must
preface my report by expressing sincere and deep gratitude to those who made it
possible for me to complete my project report.
I pay my thanks to Mr. Saravjit Maheshwari(VP, Sales) who give me the
opportunity to undergo training in OCM INDIA LIMITED.
I am very thankful to Mr. Balpreet Singh(Manager, Dyieng), Mr. Vikas
Shukla(Manager, Spinning), Mr. N.K Khanna(Manager, Post Spinning), Mr.
Ravi(Manager, finishing), Mr. Ravi Kumar(Manager, Inspection) for their kind and
valuable guidance.
My special and sincere thanks are reserved for Dr. Bhushan K. Sharma (Sr.
Professor, Hindu College) for her highly valuable guidance and unceasing
encouragement and last but not least Dr. Rakesh Mehra (Principal, Hindu College)
for their cooperation.
CONTENTS
S.NO. PARTICULARS PAGE NO.
1.
2.3.4.
5.
6.7.8.9.
INTRODUCTION OF OCM INDIA LTD.
COMPANY PROFILE HISTORY OF COMPANY TEXTILE INDUSTRY IN INDIA
OBJECTIVES OF PROJECT REPORTRESEARCH METHODOLOGYVARIOUS DEPARTMENTS IN COMPANY
FINANCE DEPARTMENT MARKETING DEPARTMENT PERSONNEL DEPARTMENT PRODUCTION DEPARTMENT
MANUFACTURING PROCESS OF PRODUCTION DEPARTMENT
DYEING SPINNING POST SPINNING WEAVING FINISHING INSPECTION
SWOT ANALYSIS OF THE COMPANYCONCLUSIONSUGGESTIONBIBLIOGRAPHY
INTRODUCTION OF OCM INDIA
LIMITED
COMPANY PROFILE
OCM India Limited, popularly known as OCM, a leading Multi National
Company, is a unit of International Textile Group. A British company for
manufacturing high quality carpets established it in 1924. OCM, then known as
Oriental Carpet Manufacturers, have enjoyed the highest goodwill for this fine quality
and vibrant designs both in home and foreign market.
In 1972, the British Company divested its holding and Mr. S.K Birla,
belonging to the renowned business family- of India, assessment its control and since
then OCM has become a synonym for quality suiting. In fact, OCM is the first
worsted mill in India to get ISO-9001 certification. The company has its edge not only
in domestic market hut is also exporting to several countries like Canada, USA,
Middle East and others. The company is like one of the main suppliers of woolen to
the armed forces and meets 80% of this requirements which itself speaks about the
OCM quality.
OCM is one of the India’s most modern and composite worsted mills, it has
the facility to execute all stages of production via spinning, weaving, dying, and final
finishing. OCM at Amritsar is bringing in the most sophisticated machinery from
France, Germany, Switzerland, UK, and Italy. To produce world’s finest fabrics the
company has also installed spinning machines from Germany, South Korea and
Switzerland.
OCM is the state of art worsted suiting manufacturing plant, situated at
Amritsar, in Punjab. “OCM”, the name stands for quality in Woolen, worsted and
blended fabrics. Keeping pace with the international brands, OCM modernized and
expended its production capacity to produce 10 million meters of finished fabric
annually, installation of highly sophisticated latest machines from Germany,
France, Belgium, Italy and Switzerland, have catapulted OCM into the world
panorama of fashion.
Spread over an area of 45 acres, OCM is one of the largest composite plans
in the world having an infrastructure for spinning, dyeing, weaving and finishing
under one roof. High quality wool imported from Australia flags off the production
process starting from fully air conditioned spinning unit. Vibrant colors are added
on fully automated microprocessor controlled dyeing machines. High quality yarn
manufacturing in state of the art spinning plant takes the shapes of fabric on
improved waving machines from Germany and Belgium. Finally, with the sprinkle
of the finishing effects, the high class fabric is presented to the Indian and
international connoisseurs adding one more feature to their scintillating
personality.
OCM began its illustrious pursuit over 80 years ago, with the manufacture of
handmade carpets and carpet yarn and was gradually transformed to worsted fabric
manufacturing.
One of the leading worsted mills with an annual capacity of 8.4 million
meters, OCM utilizes the most modern equipment to produce some of the finest
technological innovations that the textile industry has to offer.
From fiber to finished fabric, the mill is completely vertical and offers
customers a varied product range from the finest worsted fabrics for tailored
garments to diverse blends for a sportier look. The mill has a stellar reputation for
maintaining color continuity - especially in the segment of suit separates -
empowering the end customer with the ultimate in buying flexibility.
On its sprawling 36-acre site, OCM has the distinct advantage of having;
under a single roof, the facility for every process - right from the fiber to the
finished fabric and is the first worsted mill in India to get the prestigious ISO: 9001
certification.
OCM has worked with companied policies at the heart and is in the forefront
in the export field, export field, exporting various overseas markets with a film
match established in USA, Canada, Mexico, Middle East, Thailand, Hongkong,
New Zealand and Australia. OCM is already making inroads to step up their export
and outer competitive scenario.
The company has been declared as the largest export of woollen fabrics from
India five times in the last seven years. At the domestic front also, OCM has been
very successful and ranked among the top five players in Indian textile market.
At present the company’s capacity includes 34064 Spindles and 182 high speed
shuttle less looms thereby giving spinning capacity of 12000 kgs yarn and weaving
capacity of 25000 Meters of fabric per day. OCM is amongst few companies which
provide a huge variety of fabric ranging from pure wools to wool blends in 50/50,
65/35, 70/30, 75/25, 85/15. Wool is blended with various exotic fibres like cashmere,
silk, linen, cotton, mohair, viscose, bamboos, camel hair etc.
OCM’s Mission:
Mission of OCM is as follow and it is trying its very best in achieving that
target it as follow:-
The company is committed to achieve, sustain and internally acceptable
level of quality for its product, activity and service.
Satisfaction of our esteemed customers is our supreme goal.
All employees and all other supplier must relentlessly strive as a team for
achieving our quality objective all the time.
ABOUT WILBUR.L.ROSS
Wilbur .L. Ross, Jr. is an American investor known for restructuring failed
companies in industries such as steel, coal, telecommunications, foreign
investment and textiles. He specializes in leveraged buyouts. In 2005, Forbes
magazine listed Ross as one of the world's billionaires for the first time. WL Ross
and Co., a private equity firm, made its first investment in India and acquired
OCM, a textile company, for $37 million in an all cash deal.
According to Reuters: “OCM establishes us in India’s textile sector and
further adds to the resources and synergies of our textile holdings,” said Wilbur
Ross, chairman and CEO of WL Ross, in a statement.”
OCM is a spin-off from Birla VXL (Digjam brand) of the SK Birla group
company. OCM is known for its all-wool worsted and wool-blended worsted
suitings and was acquired by the Birlas Group in the early 1970s.
Mr. Wilbur Ross who heads WL Ross & Co is well-known for his investment in
failed or distressed companies and turning them around. WLR has sponsored
investments exceeding US$4.5 Billion. Notable initiatives include:
International Steel Group
Kansai Sawayaka Bank (Japan)
International Textile Group
International Automotive Components Group
International Coal Group
In the textile sector WL Ross is known for its International Textile Group that
was formed by combining Burlington Industries and Cone Mills.
Cone Denim – one of the world’s largest denim manufacturers.
Burlington Industries – one of the world’s largest worsted wool
manufacturers
According to Businessweek (2003) “… in 2000, Ross left his comfortable
office at Rothschild and opened WL Ross & Co. in New York with $440
million(170-180 crore) in investor money and a staff that included four top
managers who, along with Ross, make up the firm’s investment committee: David
H. Storper, who runs trading; David L. Wax, a longtime workout specialist;
Stephen J. Toy, an Asia expert; and Pamela K. Wilson, a J.P. Morgan & Co.
veteran.”
HISTORY OF COMPANY
1924 Oriental carpet manufactures (OCM) set-up by the
British at Amritsar, the wool center of India.
1924-1972 Mule spindles set-up to cater to the carpet unit. Looms
added and surplus yarn woven into heavy fabrics,
army uniform, blankets, etc.
Worsted spinning added to cater to the surplus
weaving capacity.
Overall expansion of OCM-mainly towards worsted.
OCM taken-over by Ralli’s brothers, then a part of
UK’s Slater Walker empire.
1970s OCM taken-over by the Birlas.
1973-1993 The unit expanded and modernized in a phased
manner.
Modern shuttle-less looms installed.
Handmade carpets discontinued.
OCM established itself as one of the leading brands in
India.
1994 Major expansion and modernization.
First Woollen mill to get ISO 9001 certificate in India.
2004 Takeover by WILBUR.L Ross.(51% share)
TODAY A world class mill with growing international
presence.
Since its inception in 1924 as a manufacturer of hand-knotted carpets, OCM
has come a long way to become one of the largest worsted-suiting producer. A
forerunner in adopting new and efficient methods and technologies, OCM has the
rare distinction of being the FIRST worsted composite mill in India to achieve both
the ISO: 9001 Certification as well as implement an ERP solution.
A completely vertically integrated plant, OCM has in-house production
facilities to convert tops to finished fabrics through dyeing, spinning, weaving and
finishing using state-of-the-art machinery. All the materials pass through stringent
checks at every stage and help in delivering outstanding quality.
At present the company’s capacity includes 34064 Spindles and 182 high
speed shuttle less Looms thereby having spinning capacity of 12000 kgs yarn per
day and weaving capacity of 25000 Meters of finished fabric respectively The
above mentioned spindles have been imported from Zinser France and other
supporting equipments from NSC & Schlafhorst, Germany, Leewha, South Korea
and looms from Dornier, Germany, Sulzer, Switzerland and Picanol Begium which
are the leading manufacturers of Textile machinery in the world.
TEXTILE INDUSTRY IN INDIA
Textile word comes from Latin word textile, which means woven. In textile
science, however a textile is freely defined as any product made from fiber.
From ancient eras, until the eighteenth century, all fabrics were constructed
and decorated by hand. Weaving took place in small workshops. Some artist
weavers of those centuries achieved great skills. Their beautiful examples as
oriental carpets and rugs, huge tapestries portraying intricate scenes and early
Coptic textile, now hang in museums all over the world as treasured exhibits.
It is well known that textile industry is one of the oldest and most firmly
established industries in the world. Being one of the oldest industries it has history
of over 150 years.
The first textile mill in India was started in 1854 under the name “Bombay
spinning and weaving company”. During 1871-75 at least 17 new mills were
established. In 1971, there were 1054 mills in the country (771 spinning mills and
composite mills) with 126 million spindles and over 2 lakh looms. At present,
textile industry of India accounts for 20% of total industrial output. The industry
currently provides direct employment to about 15million people, the 2nd largest
employer in the country next to Indian railways.
The Indian textile industry produces and handles nearly all type of fibbers(both
natural and synthetics). However the industry is pre-dominantly cotton based with
70% of the raw material being cotton. The Indian spinning industry has witnessed
large capacity additions and is highly modernized. It has an installed capacity of
nearly 35 million ring spindles and around 320 thousand open-end rotors. The
industry has the capacity of producing any count (fitness) range and specification.
In 2001-2002approximately 2800 million kgs of yarn were produced, of this cotton
accounted for about 72%, blended yarn around 21% and the balance were
synthetics.
The textile industry commands a unique and significant presence in the Indian
economy by virtue of its contribution to the national production employment and
foreign exchange earnings.
Currently it accounts for about 3.5%of the GDP 14% of the industrial
production and over 35%of the export earnings of the country with estimated of 35
million and million more. Indirectly this is the second largest provider of
employment after agriculture.
Textile is the only industry that is self relevant and complete in the value chain
i.e. from raw material to the highest value added product like garments and make
up's the growth of this as a significant bearing on the development of economy.
The textile industry is extremely complex and varied with the hand spin and
hand woven sector on one end of the spectrum and the capital intensive
sophisticated mill sector on the other hand. With decentralized power looms
kidding sector coming in between.
The complex and varied structure of the industry coupled with its close linkage
with ancient Indian culture and tradition provides it with a unique capacity. To
produce it with the help of the latest technological inputs a wide variety of
products suitable to the varying customer taste and preference both with in country
and overseas.
OBJECTIVES OF THE
STUDY
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research refers to the work of collecting data from various sources. For
making this project report, information has been collected from various resources.
PRIMARY RESOURCES
Primary Resources for making this report are the interactions with Mr.
Saravjit Maheshwari (VP, Sales), Mr. Pardeep Puri (Manager, Sampling Dept.),
Brig R.S. Randhawa (General Manager) Mr. N.K. Khanna(GM, Post Spinning),
Mr. K.J. Bhardwaj (Sr. Manager, Dyeing) and other managers and workers of
Production department. This project is based on manufacturing process of
Production Department.
SECONDARY RESOURCES
The information has been collected from:
Company Website.
Reports.
VARIOUS
DEPARTMENTS
OF THE
COMPANY
DEPARTMENTS OF OCM
FINANCE
MARKETING
PERSONNEL
PRODUCTION
DEPARTMENT WISE STAFF STRUCTURE
General Manager⁄ Deputy General Manager
↓
Manager ⁄ Senior Manager
↓
Assistant Manager
↓
Technical Officer
↓
Staff In-Charge
↓
Technical Assistant
↓
Supervisor
FINANCE DEPARTMENT
The finance department has three basic departments:
Finance department
Finance department looks into the cash inflow and outflow of the company
finance department headed by assistant vice president who responsible for three
main activities like; Banking transactions including day dealing with the banks and
updating the books of account dealing with financial institutions for short term
financing of the company realization activities including for short term and long
term financing of debtors after the sale of goods on credit.
General accounts
This department maintains all the books of accounts. It maintains the annual
accounts that are audited secretly. It also looks into dues to the Government taxes
excise duty etc.
MIS-Management information system
MIS fives a periodic report about the financial matters of the company to
the head office and board of directors. MIS also handles the budgeting on the last
two year experience and the predictions of the next three year based on that this it
also works out of the company policy and helps in its implementation.
MARKETING DEPARTMENT
Marketing with the Indian market moving in to a new era of global trade
partnership OCM works with the country’s policies at heart and is in the forefront
in the export field exploring various overseas markets leading manufacturers
worldwide rely on OCM to supply to the USA, Canada, Mexico, Hong Kong, New
Zealand and Australia and many awards to their credit. OCM is already making
inroads to setup their exports and enter the prestigious markets of Japan, South
Africa, Indonesia and South Korea.
The garments under top labels like Marks, Spencer Garden, Haggars and
Barlington are being exported to the foreign market.
Product range
The OCM sales team presents regular market reports of trends as they
develop and change and OCM buyers encouraged to contribute to the designing
process. OCM has more than 70 years of experience in production technology. In
the India and abroad who search for new style develop new material and upgrade
fabrics and produce samples as for buyers needs.
Distribution
The company’s marketing expertise lays a strong emphasis on distribution.
The firm has strong dealership network, one of the strongest in India-sends regular
feedback about market trends, brand acceptability and areas of innovation. A range
of whole sellers are serviced by agents who in turn lease with the area managers
with the company retailers and leading stores can thus pick up their stock from
OCM. The introduction of quick response system has helped to eliminate
distribution bottlenecks and assisted the OCM mills to respond to customer and
trade quires promptly and precisely.
Demand
This is done on the basis of
Past experience
Dealer’s needs
Agents conferences
Market research
Demand by foreign companies and other concerns
Advertisements
a) F.S. advertising and contract advertising is the formal advertisement agency in
Delhi to carryout strategies.
b) The company holds regular fashion shows to exhibit their production as per
season.
c) They depend on publicity office for their hoardings.
PERSONAL DEPARTMENT
The vice president is overall responsible for the functioning of the
Department. The manager personal is in for co-ordinates the function assistant
personal officer, chief labour officer and the head time keeper.
Recruitment/selection/training methodology
The company has systematic recruitment and selection procedure so that it
get the right person. For the right job and its resources and benefits are not
satisfied.
Workers
Demands of workers depend upon the vacancies that exist in the
department. The department incharges submit their demands of workers to the
personal manager as and when they require. The personal manager forwards their
demands to the trade union. Employment exchange and ITI etc. and obtain workers
on arrival. The personal manager examines their civil qualification and physical
fitness. If found fit they are sent to the concerned department on the trail for two
days. After completion of the trail their employment forms are filled and then
workers are produced before the president for final approval.
Supervisor
Demands of candidate will depend upon the vacancies that exist in the various
departments. The department incharges submit their demands to the personal
manager as and when require. The personal manager calls the candidate from the
employment exchanges, polytechnics, textile institutes etc. an advertisement is also
given in the mill for calling the candidates. The candidates are finally interviewed
by the interview board proceeded by the president. The other members of the board
are the JT. President, vice president, department incharge concerned. The selected
candidates are then asked to report for work on dates agreed upon other formalities
as given below
a) Medical
b) Filling in to gratuity/ nomination forms
c) Nomination for pf and PPF
d) Nomination form for ESI
e) Appointment letter.
In case of senior appointment chairman and the managing director
can take decision directly.
Training
For the proper working of the organization and for proper handling of the
machines training and is coordinated by the personal manager OCM provides the
facility of providing distance education under Pillani bits system where in a
diploma holder after working some time in the organization becomes a degree
holder.
Retirement
Employees seeking voluntary retirement submit their request to their
department incharges. They submit the same to the personaldepartment. The
personal manager prepares memos and distributed time officer, security officer,
cashier/accounts and PF department. A similar procedure is adopted in case of
individuals who retire in the normal case on obtaining the age of supernuetion.
However such individuals are informed through a memo prepared by the personal
manager three months to the retirement. All retirements or superannuating are
executed on 31st march.
Welfare
The company takes keen interest in welfare of its employees like providing
of economized canteen facilities. Proper arrangements of drinking water and
urinals, systematic arrangement of pay packages and providing gifts on special
occasions. The company gives out Diwali gifts, cycles and sewing machines on
retirement to permanent workers and education to child.
PRODUCTION DEPARTMENT
Based on the orders that are booked, a tentative raw materials requirements
schedule is prepared by the department. According the raw material is ordered as
purchased.
The purchased raw material is sent to combers for converting it into
continuous length of fibres called sliver. These sliver are then converted into a
continuous length of processing. The process of production starts with dyeing and
ends with inspection of the finished product. Production department includes:
Dyeing
Spinning
Weaving
Finishing
Inspection
MANUFACTURIN
G PROCESS OF
THE COMPANY
MANUFACTURING PROCESS
DYEING
Color is the most indispensable aspect of fabric production. A careful
selection of various colors make-up the final recipe of fabric dyeing.
Dyeing is carried out in the following forms
Fibre dyeing
Top dyeing
Yarn dyeing
Piece dyeing
Top dyeing is done followed by radio frequency drying. All wool
dyeing is carried out on soft flow jet dyeing machine. Poly wool fabric dyeing is
done in jet drying machines.
The wool tops are dyed or are used as white depending on the
requirement. The dyed tops are back washed for removing the superficial dyes and
chemicals used during dyeing and then they are dried.
NEW SPINNING
After dyeing the material is passed to the New Spinning Department. The flaw
flexes of a particular fabric depends upon the exactness of the spinning in which
100% wool and viscose polywool blend or terry wool etc. can be processed. The
basic raw materials required are polyester wool and viscose. The material can be
dyed or white and thus needs to be separately processed. The material received
from the dye is first stored in dyed top godown from where it goes for spinning.
The required specifications such as blend %, color, quantity, quality etc are written
on as sample chart that moves along with processed material.
PROCESS OF NEW SPINNING:
BLENDING is performed, in which different yarns are mixed to get a required
shade of the yarn. These are kept in big cans.
COMBING here the mixed yarns are combed. It is like combing the hair. It is
performed by the machines. Various defects are removed. Eg. Residual dye. It
makes the yarn smooth for further processing.
After combing the yarn is pass through the ROVING process in which the
combed yarn is wrapped on the Big Robbins from the cans it weights
approximate 2.7kg. The yarn now takes the shape of thread but it is not of
desired breadth.
After making Big Bobbins the thread is wrapped on Small Bobbins it weight
about 100gm. Now the thread takes the desired breadth. But it contains
undesired nodes, which is a barrier in the good and smooth look of the fabric.
The nodes are removed by AUTOCONNER. It removes the defects of thread.
Its capacity is 2.1kg. It removes the nodes of the threads by breaking and
rejoining the threads smooth. About 12 ton thread is prepare daily.
FLOWCHART OF NEW SPINNING DEPARTMENT
Blending
↓
Combing
↓
Recombing
↓
Drawing
↓
Spinning
↓
Single yarn store
POST SPINNING
After new spinning, the yarn is sent to post spinning.
PROCESS OF POST SPINNING
In first step single yarn came from new spinning.
In second step two single yarns are parallel wound on cheeses which is
known as Assembly Winding. In this step the yarn remains untwisted.
In third step the yarn is twisted and wound on required package. This is
known as Two For One Twister (TFO) in which there is two twists for one
rotation of spindle.
In fourth step steaming is carried out in which yarn is steamed under certain
temp and pressure to set the twist to avoid snarling.
In fifth step conditioning of yarn is done for four hours.
In sixth step winding of yarn is carried out now yarn is ready for issuing to
packing section in which spinning is done on commission for other fabric
industry and to issue the weaving section of the OCM for weaving. The
winding is done by a machine called slicer.
FLOWCHART OF POST SPINNING
DEPARTMENT
AUTOCORNER
↓
ASSEMBLY WINDER
↓
TWO FOR ONE TWISTER(TFO)
↓
YARN STREAMING
↓
AUTOCORNER
WEAVING
In this section after setting the required woven yarn issued wrap is made and
load on to the looms for weaving. After weaving the fabric, it is sent to the Greasy
Perch section for inspection of faults and accordingly the corrective measures are
taken if required
From the Greasy Perch section the pieces are sent to the mending department
where the ready fabric thoroughly checked for flaws and are rectified. Then the
piece move in for the finishing process.
Weaving is basically placement of wrap (the thread which runs down the length of
the cloth) & weft (the thread which lies at alright angle to wrap, crossing the fabric
from salvage to salvage.
FUNCTIONS PERFORMED IN WEAVING DEPARTMENT
SHEDDING:-
It means the vertical separation of wrap threads.
PICKNG:-
It is inspection of weft yarn through the warp sheds.
The speed of picking decides the speed of loom. It is done with the help of shuttle,
projectile and rapier.
BEATING UP:-
It means the pushing the weft yarn into the fell of the cloth by means of read
mounted on the oscillatory slab.
LETTING OFF:-
It is releasing the thread of wrap on the wrap beam.
Some important faults that can occur during weaving are:-
1. Missing end 8. Read mark
2. Broken end 9. float
3. Wrong end 10. Tight end
4. Missing pick 11. draft
5. Broken pick 12. Brunch
6. Wrong pick 13. Yarn bar
7. Temple cut 14. Abrasion mark
FINISHING
It is the most critical part of the whole process gives the required feel texture and
flow that it lacks. The woven fabric taken up from the looms appears wrinkled,
dirty, sticky, rough and lacks luster. The objective of finishing is to make neat,
smooth and shiny and imparts shape to the fabric. Special features are also
imparted to the fabric through finishing such as resistance to wrinkle and shrinkage
etc
PROCESS OF FINISHING DEPARTMENT
First of all the fabric is passed through Greasy Heat Setting in which fabric
is ironed at high temperature to kill the microbes.
Then after it the fabric is sent to singeing machine it closes all the pores of
the clothes.
Then the fabric is washed with detergent and chemicals to maintain the
colors and smoothness of the clothes.
Fabric after washing is put into hydro extracts machines where water is
removed and the fabric is made dried.
After removing water, fabric is again sent to the Greasy Heat Setting to iron
the fabric at low temperature. After ironing the fabric, it is sent to Semi
Finished where defects are removed at first step.
After Cropping process is performed, in which the machine, which have two
sided cutters, remove all the bushes of the fabric, it make the clothes
smoother.
After the fabric is passed through Dalal Machine which provide the moisture
to the fabric. After the fabric is made it is again pressed by Paper Press. It
gives luster to the fabric. It works 14hrs a day.
There is another press Rotary which work continues. The fabric which is
pressed by this machine has not need to be passed through the Dalal
Machine. It means the fabric is directly passed from the cropping process to
the Rotary Press.
Now the fabric have luster. But it has not the smoothness or compactness.
The fabric is made smooth or compact according to its demand. Fabric is
made smooth by the Super finish process and it is made compact with
contiblans.
Now the fabric is ready, it has shine and does not contain any wrinkle and dusty
look. After the Finishing Department fabric is sent to the Inspection Department.
INSPECTION
The inspection department is where the finished fabric finishes its journey and is
prepared for the final dispatch. Inspection refers to the final checking of the fabric
inch for any kind of stain or fault. The inspection is done manually by qualified
experts. After proper inspection the material is rolled on to rectangular planks called
phable or rollers and sealed in polythene packs for final dispatch. The specifications
of the fabric are also embedded on the packs.
PROCESS OF INSPECTION DEPARTMENT
The defects of finished fabric are checked in this Department. It is called
Perching. These defects are checked by experts. Defects are recognized as
minor defects and major defects. These are seen inch by inch. The
removable defects are removed.
Next is the measuring table, here the shades and total length of fabric is
measured. It is necessary to get the desired shade. If the weight is much
lower than it is sent back to the finishing department & it is not accepted.
E.g. If a piece of 100m is sent to the inspection department by the finishing
department it is not accepted if it is 10m less. If it is 2 or 3 m less it can be
accepted only. Now the accepted fabric is sent for further processing.
Then the manual cutting is performed. The total piece is cut into small
required lengths. E.g. A piece of 100m is divided into 10 pieces of 10m
fabric.
Then these pieces are again weighted by measuring scale. It is seen that
total fabric is divided into required lengths or not.
Now the measured pieces are folded and labeled. After it Stamping,
Wrapping and bar coding is performed. Now the fabric is sent for sale.
Here the cloth completes its journey and fabric is ready for sale
SWOT ANALYSIS
OF THE
COMPANY
SWOT ANALYSIS
STRENGTH
The biggest strength of OCM woolen mills is its latest technology and
imported machinery. Moreover, versatility is synonymous to OCM, since
the company has diversified into production of carpet yearn, blankets,
tweeds and trouser making to become one of the leading names in high-
quality fabrics.
In North India, the brand is perceived to be a premium and reliable brand
because of its presence in the market for over eight decades.
The production capabilities of OCM are tremendous so as to meet the
growing demand with ease. Its total current production is 12.9 million
meters and can go up to 23 million meters at full maturity. OCM would
then be the fifth largest worsted mill at full maturity.
Another major is that the company’s operations are fully integrated, i.e.
Every operation is in-house right from manufacturing of yarn to fabric
production.
WEAKNESSES
The main weakness of OCM is a conventional distribution channel. The
company relies mainly on the agents for sales promotion.
The company spends less money on advertisement as compared to other
brands. Due to this reason the OCM brand is not competable to the other
brands.
The brand’s positioning is wrong, it is still perceived to be an older brand.
This perception goes against it when compared with more known brands
such as Raymond and Grasim and a few other foreign brands.
The company’s capacity is too high thus the fixed cost remains the same at
any amount of production.
OPPORTUNITIES
The biggest opportunity, in India and the overseas market, is the growing
popularity of readymade units. The company can set up its own ready-made
unit to increase the utilization of its finished product.
Secondly, in today’s phase of recession, small units are rather lacking back.
And thus OCM can take advantage of this situation.
The other opportunity for OCM is the rural consumer because they are not
as much targeted by the big players.
THREATS
The biggest threat to the is the growing popularity of the cotton fabric and
thus the cotton producing units in India and abroad.
Raymond suiting has been a major competitor of OCM. With a market share
of 44% Raymond (turnover – 1200 crore) today stands at the number one
position in the Indian worsted market. It has achieved such popularity
through its innovations, a strong distribution channel and a positive brand
image.
The converters i.e. units established exclusively to convert fabric into
readymade garments pose the biggest threat to OCM, since they usually buy
cheaper material of not so known brands.
CONCLUSION
SUGGESTIONS
SUGGESTIONS
1. The company largely depends upon the short term sources of funds. Instead
there should be a more systematic procedure of investing in the short term
securities. So far such decisions are centralized and lie in the hands of the head
office. There needs to be more decentralization in this respect so that more
could be invested in short term securities, which can be realized at any time to
pay the short term liabilities.
2.For cash management the company largely depends upon the short term sources
of funds. Instead there should be a more systematic procedure of investing in
the short term securities. So far such decisions are centralized and lie in the
hands of the head office. There needs to be more decentralization in this respect
so that more could be invested in short term securities, which can be realized at
any time to pay the short term liabilities.
3.The company’s ratio analysis shows too much of surplus liquidity in the hands
of the company. This cash should not be left idle and should be invested.
4.The company should make disbursement from a centralized account, so that a
smaller cash balance would be needed at each branch. And secondly, the
company would be able to control the schedule tightly and it would be easier to
make disbursement on the right day. In order to speed up accounts receivable,
the company can adopt the lock box system. That would ensure quick recovery
of receivables. The main advantage of lock box system to OCM would be:
The banks of OCM can handle the remittances prior to deposits
at lower cost.
The processing time of such remittances is reduced since their
collection process faster than if OCM would have processed them for
internal accounting purpose prior to their deposits in the box. This job could
still be done by OCM later on by the information supplied by the banks
without delaying the collection.
The major advantage of accelerating the collection is to reduce the
firm’s total financing requirements. And by transferring the clerical function
to the bank, the may reduce its cost.
Another important strategy for speeding accounts receivables could
be that the company takes advantage of the factoring technique. This would
help in converting its receivable into productive assets.
BIBLIOGRAPHY
BOOKS
I.M. Pandey, “Financial Management” Prof. Indian Institute of
Management, Ahmedabad.
Prasanna Chandra, “Financial Management-Theory and Practice”,
Indian Institute of Management, Banglore.
S.K. Bhattacharya, “Accounting for Management” Chief executive,
Management Structure and System Private Ltd., Mumbai.
""Ross completes ITG integration"". The Business Journal of the
Greater (NC) Triad Area (August 3, 2004).
Annual reports of ocm 2007-06
Annual reports of ocm 2006-05
WEBSITES
www.birlagroup.com www.ocmbirlavxl.com www.ocmwoolenmills.com
