summer project. ketan

8/6/2019 Summer Project. Ketan

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Project Finance Report on 100 Garment Stitching Machines

Summer Project Report

At

Gopi synthetics private limited, Ahmedabad

Submitted to

Prof .Satish nair(Course Chairman)

In partial fulfillment of

POST GRADUATE PROGRAMME IN

MBA FB & E

(2007-2009)

Submitted by

Ketan maheshwari


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STUDENTS & COMPANY DETAILS

Student

Student Name: Ketan maheshwari

Roll Number: 074128Institute: Institute of Management, Nirma University,

Sarkhej-Gandhinagar Highway, Ahmedabad. 382481

Company

Name: Gopi synthetics private limitedAddress: Narol vatwa road, Narol,Ahmedabad 382405Tel: 079-25732981-86Fax: 079-25732972/74e-mail: [email protected]

Regd. Office: 212, new cloth market, ahmedabad - 380002

Project Guide

Name: Mr M.K.Bihani

Purchase officer

Project Details

Date of Joining: April 15, 2008Date of Completion: June 14, 2008
mailto:[email protected]:[email protected]


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ACKNOWLEDGEMENT

The time that I have spent at Gopi Synthetics pvt Ltd, has been very fruitful andI have heartily enjoyed my stay. My successful completion of the project is

indebted to the support of all the departments involved directly or

indirectly.

I would like to extend my thanks to Mr Champalalji Agarwal, the director of the

company, who accepted my stay for training purpose in his company, Gopisynthetics pvt limited. He made this project possible by untiring encouragement,

advice and guidance.

I would like to express my thanks to Mr. Mr M.K.Bihani, sales officer under

whom I was trained,who gave me the opportunity to take up the project of my

choice and provided the most conscientious and valuable mentoring possible.

He directed me and coached me, and thus contributed invaluably to the

successful completion of my project.

Moreover I would also like to thank the staff at Gopi synthetics at each level as

I worked and touched almost all the departments excluding the finance

department. I received good support and encouragement from all of them which

led me to the conclusion of my project.

I am deeply indebted to Professor Harismita trivedi, who provided valuable

guidance to me throughout the entire course of completion of my project.


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Executive summary


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INDUSTRY AS A WHOLE

The Indian textile industry is one of the largest and most important sectors in

the economy in terms of output, foreign exchange earnings and employment in

India. It contributes 20 percent of industrial production, 9 per cent of excise

collections, 18 per cent of employment in industrial sector, nearly 20 per

cent to the countrys total export earnings and 4 per cent to the GDP. The sector

employs nearly 35 million people and is the second highest employer in the

country. The textile sector also has a direct link with the rural economy andperformance of major fibre crops and crafts such as cotton, wool, silk,

handicrafts and handlooms, which employ millions of farmers and crafts

persons in rural and semi-urban areas. It has been estimated that one out of

every six households in the country depend directly or indirectly on this sector.

India has several advantages in the textile sector, including abundantavailability

Of raw material and labour. It is the second largest player in the world cottontrade. It has the largest cotton acreage, of about nine million hectares and is

the third largest producer of cotton fibre in the world. It ranks fourth in terms

of staple fibre production and fourth in polyester yarn production. The textile

industry is also labour intensive, thus India has an advantage.


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The industry has been performing strongly across key areas:

India has been experiencing strong performance in the textile industry, across

different segments of the value chain, from raw materials to garments. Domestic

production has been growing, as well as exports. The performance in each

segment is discussed in following sections.

Abundant availability of Raw Materials

Cotton

Cotton is the predominant fabric used in the Indian textile industry nearly 60

per cent of the overall consumption in textiles and more than 75 per cent

production in spinning mills is cotton. India is among the worlds largest

producers of cotton with nearly 9 million hectares under cultivation and an

annual crop of around 3 million tonnes. In the year 2004-04, India produced

nearly 17.7 million bales of cotton.

Silk

India is the second largest producer of silk in the world, contributing about 18

per cent to global production. The value of silk fabrics produced in India in

2002-2003 was over US$ 1.78 billion. India also exported over US$ 190

million of silk goods and over US$ 357 million of silk yarn, fabrics and

madeups. Growing demand for traditional silk fabrics and exports of handloom

products have spurred growth in silk demand.

Jute

Jute industry occupies an important place in Indias economy, being one of the

major industries in the eastern region, particularly in West Bengal. It supports

nearly 4 million farming families, besides providing direct employment to

260,000 industrial workers and livelihood to another 140,000 people in the

tertiary sector and allied activities. Nearly 1 million hectares of land is underjute cultivation.


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Favourable factor conditions:

Favourable factor conditions give India a strong comparative advantage over

other competing countries in the textile industry. Specifically, India has thefollowing strengths:

Ample low priced supply of domestically produced cotton -this is a significant

advantage that is currently not matched by other key countries with competitive

labour costs, including China and Brazil. India not only has the largest acreage

under cotton cultivation, but also produces nearly twenty three varieties of

cotton. This diversity makes India capable of catering to various segments in the

world trade. Further, this inherent strength in raw material availability prevents

any supply side shocks.

Predominance of small-scale units with skilled workmen provides increased

flexibility in production.

Availability of low cost skilled labour - provides a significant advantage for

the textile industry in India in terms of increased productivity at lower costs

Manufacturing flexibility

The fragmented industry structure and small average scale of operation in

Indias textile industry has created the capability for enhanced flexibility in

production. Indian firms are used to handling small-runs, and have skilled

manpower with the ability and willingness to work on complex designs.

Therefore India has the ability to produce not only large orders but also smaller

and complex orders. In contrast, the textile industry in other countries like

China are more industrialised, and production lines are mostly geared to handle

relatively simple designs that can be easily broken down and mass-produced.

The flexibility offered by Indias textile industry can be a significant advantage

for the fashion industry, which typically demands small lots of complex

designs. India also offers flexibility in its ability to handle different materials

such as cotton, wool, silk and jute, with equal skill. These advantages also

enable the Indian industry to produce high value customised apparel that is

increasingly finding demand in several exports markets.


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Textile machinery

The Indian textile engineering industry, which began as an offshoot of the

textile industry, is today reckoned as the largest segment in the country. Indian

textile machinery manufacturers are able to produce at competitive prices

sophisticated machines of higher speed and production capability.The textile

industry also gets significant support from the well developed IT capabilities of

Indian firms.

Industry competition promotes innovation

Despite a large and growing market, the presence of a large number of small

scale players makes the Indian textile Industry highly competitive. A number of

MNCs have also entered India in different areas. The high level of competition

in the industry impels the firms to work to increase in productivity and

innovation. India today is one of the lowest cost manufacturers of quality

textiles, not only due to its inherent strengths, but also because industry rivalry

has prompted firms to focus on quality improvement, cost reduction and

productivity increase.

Conclusion

Indias textile industry is an attractive sector that is poised for higher growth.

The industry enjoys significant advantages, aided by Indias key strengths in

availability of raw materials, labour, domestic market and supportive

government policies. While the domestic market has been growing consistently

and offers attractive growth potential, exports are poised for a quantum

increase after the removal of quotas under MFA.


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ORGANIZATION PROFILE

History:

The unit was started by owner late shri Gopiram agarwal with production in the

year 1983 with only dying department. Though at that time the market was not

much competitive. There were only few Processing units based in Ahmedabad.

He was assisted by his son Champalal agarwal who is the chairman of the board

of directors at present and Mr Omkar agarwal who is one of the five directors at

present. At that particular time, unit was processing their own cloth and selling

in the market. Now the company is mostly into job work but has its own

production as well simultaneously , but in small proportions.Gopi synthetics is

now a big process house which is involved in the processing of raw grey cloth

to finished cloth for various purposes. It has its own production of grey as well

and it also purchases from outside for job work. The processes which lead to

final production of finished clothes include combing, weaving, manufacturing ,

bleaching, dyeing, mercerizing, calendaring, printing, polymerizing.

Current scenario:

Thereafter company has also expanded its business by setting a dyeing and

printing department. Now at present company has two flatbeds on which

printing on grey cloth is done. After the grey cloth once reaches the factory

premises the process is carried like after checking of grey a report is been

prepared and one copy of the report is handed over to the customer and other

copy remains with the factory staff. Then after seeing the meters of cloth the

customer gives programmed whether the process of dying or printing is to be

done on the cloth to the masters. Then after masters ( Technical staff ) is the one

who decides when and in which machine the cloth should be allotted. After the


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dying and printing of the cloth then the cloth is been turned for its finishing.

Finishing process is been carried on as per the requirement of the customer. The

finishing is done as per the samples given by the customers. After the process of

finishing the cloth is transferred to packaging department.

The processing unit does dying and printing on various types of fabrics differs

from different weights to different weights. The main production of the unit is

of the grey named P.C ( Polyester * Cotton ) . Though the demand for such kind

of fabric remains throughout the year. Unit also is into the process of grey cloth

100% cotton fabric. The weight of such kind of cloth is from 20 kgs to 50 kgs.

Though the dying process for such kind of fabric is very high but even the unit

charges much higher job rate as compared to the other fabrics.

The company is able to get the raw-materials from the local suppliers of the

market i.e. dyes and chemicals. Varieties of dyes is used by the unit at present

weather it Disperse, Pigment, Vat or Reactive dyes. Most of the machines workwith the input of steam which is generated in a huge boiler which requires

pet-coke as fuel. Pet-coke is residue left after petroleum is being refined from

natural oil. It is used immensely on everyday basis, which even goes to few tons

per day.


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Top Management Board Of Directors

Mr. Champalal agarwal Director

Mr. Shankarlal agarwal Director

Mr. Omkar agarwal Director

Mr. Subhash Chandra agarwal Director

Mr. Kishan kumar agarwal Director

The directors have power at any time and from time to time to appoint any other

person as director as an addition to the board so that total number of directors

shall not at any time exceed the maximum number twelve in this case, and any

person so appointed as an additional director shall retain his office only until the

next annual general meeting , but shall then be eligible for re-appointment.

The board may from time to time appoint any director to be the chairman of the

board.

Mr. Champalal agarwal is the existing chairman of the board.


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VISION AND MISSION

The company inherits the words and the spirit of their mission from the founder

shri Gopiram agarwal. His emphasis on superior quality means striving for

excellence in technology, in products and services, and in all our activities.

7 S Framework to analyze different aspects of the organization

Through 7S analysis the following things are been analyzed in the context of

Gopi synthetics.

Used for internal analysis of Gopi synthetics.

Strategic characteristics of Gopi synthetics.

A tool to determine do ability of strategies.

Examine effect on change on company.

Analyzing the successful & dysfunctional aspects of

organization.

1. Structure

The structure of organization is a functional form. Mr.Champalal agarwal along

with his son Mr. Sumit agarwal are the owner-manager. Company is mainly in

job work for other parties but is also indulged in self production which is in the

ratio of 80:20 respectively. During peak seasons where there is good demand


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the company raises this ratio sometimes to 50:50. Company heavily invests in

technology and keeps on changing its product line as per market demand. In its

every unit there is a manager who is in charge for production, accounting,

personnel and engineering. There is separate R&D department in the firm for

new products development.

2. Strategy

Over the past few years company has heavily invested in R&D department as it

is on its maturity stage. But now after the recent split between the two

companies i.e. Gopi synthetics and Omkar industries, the company is investing

heavily to increase its production capacity and to get back on the track with a

upward shift in the cycle.

Gopi synthetics-Key Strategies Factor

Quality of products with minimum of wastage.

Focused Research & Development.

Goodwill in market.

3. System

Company is using systems and interconnectivity is fine but still there lies more

scope for systems penetration as there are various departments which are not

helped with systems, where if they are introduced it will certainly help.

Although the company is now introducing new systems and planning for more

in the near future. Many departments are there where still manual entry is done

and whole reports are prepared manually making it a monotonous and

cumbersome job.

These systems will help changing the organization without disruptive

restructuring and the organization is devoted to educate its employees about

these new software and make familiar the non-IT staff of the company.


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4. Style

The style in the organization is very informal and there is an air of

cooperativeness and team work among the employees of the organization. The

managers and sub-ordinates works with complete faith and togetherness with

one another.

5. Staff

Out of the total strength 70% staff is marwadi cast and generally from rajasthan.

Mr. Champalal agarwal has a tendency to promote rajasthani, marwadi people

as he originally belongs to rajasthan. Most of the staff is uneducated and is

below its senior secondary level. It somehow does reflects on the efficiency of

the organization. So far less professionalism is there and the work culture is also

somewhat conventional and time consuming.

The following were the observations made about the staff at Gopi synthetics.

In recruiting new employees regionalism is the biggest factor, even if the

employee is not educated or competable for the job he is employed.

The staff working here is not promoted for years or there is very less

increment in the salary per year which is a demoralizing fact for many

employees. They work here with full loyalty for years but they gain

nothing in return.

Its a marwadi conventional atmosphere in the business where boss is

always right and even qualified personnel have very less say about

anything.


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6. Skills

Only grey department is labor intensive rest all are capital intensive

where labor need not to be skilled as the work is easily adaptable and

monotonous.

Optimum utilization of the machinery is done which increases

production of the company.

It is very well characterized company and always believes in doing

what it is best at.

7. Super-ordinate goals

These goals at Gopi synthetics are in complete line with its mission statement

and company is dedicated to work to provide best quality fabrics at cheaper rate

and without any defects. And everyone in the organization regard these super-

ordinate goals to be;

Focus.

Clear Line Responsibility.

Growth and service oriented approach.

Best quality fabrics at cheaper rate.

Competitive Position in the Industry (Using Porters

Framework)

Porters Framework; to analyze the nature and intensity of competition in a

given industry, a renowned management expert, Michael E. Porter, developed

the five competitive forces model. These five competitive forces are; rivalry,

bargaining power of customers, bargaining power of suppliers, threat of new

entrants, and threat of substitute products and services. The long-term

profitability or return on investment of a firm in a particular industry is directly


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affected by the collective strength of these forces.

Rivalry:

The competition is immense in this business. There are mainly two types of

markets, one which is producing high quality products. Other one which do not

produce quality product and they sell it at lesser price. The sales of the fabrics

depend on the demand of the market. Here the key is bulk production with

continuous and good efficiency of the machinery i.e. optimum utilization of the

resources since the market is highly competitive with many existing and

established players are there with threat of new entrants constantly. The rates of

the finished product are fluctuating as per the market scenario. Its a price

taking industry.

The bargaining power of customers:

The quality fabrics and proper supply is been done by the firm. As a result of itthe customer are ready to pay the marginal price which is charged by the firm.

Unless the same kind of product is been manufactured by other manufacturer

then firm will have to sell at competitive price.

The bargaining power of suppliers:

This is the extent to which suppliers can threaten either to increase the price orreduce the quality of their goods and services. Suppliers tend to be powerful

when there are only a few players in the industry, when there are no substitutes

for their products or services, or when their products or services are critical to

the buyers business. In the industry concerned the main raw material is grey

which has a highly competitive market, so there is no major fight by suppliers.

The grey from south India is of good quality with very competitive prices. The

profit potential of the businesses operating in an industry is reduced if the


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bargaining power of suppliers is high.

The threat of new entrants:

This refers to the ease with which new competitors can enter the market. New

entrants may have substantial resources and bring in additional production

capacity. This can trigger price wars and increase the cost of doing business for

existing businesses due to the higher expenditures they will have to incur (for a

larger sales force, advertising, better service, etc.) to retain their market

position. The threat of new entrants depends on how difficult it is to enter the

relevant market. The barriers to entry are high when; (i) a firm needs large

capital investment to start a business (ii) established competitors have loyal

customers who consider the products or services offered by these companies to

be unique and are reluctant to buy products or services offered by other

companies. The company manufactured the best quality fabrics and havingproduction capacity quite high. The threat of the new entrants currently for the

company is not there.


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Part B

EXPERIENTIAL LEARNING PROJECT


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1. INTRODUCTION:

Processes in the Gopi Synthetics:

1) Pre-processing stage: - The raw cotton is brought in and piled up in a

stack. A suction machine sucks up the cotton through graters and

intermeshing screws so as to avoid the impurities to enter in the system. It

is sent to a trubulent container where the cotton is subjected to a stormy

vortex. This helps in seggregating the cotton from impurities such as dust

and metal particles. This is then sent to a pressurized container where the

cotton is subjected to a narrow opening. The pressurized cotton comes

out in form of colluded thick thread. This is wounded inside a hollow

container which would be subsequently sent to the spinning machine. The

cotton thread may either go through several processes strengthening the

yarn at every stage and intertwining them so as to make stronger threads.

The number of intertwining depends upon the requirement by the

customer.

2) Spinning: - Spinning is the process of creating yarn (or thread, rope,

cable) from various raw fiber materials. In spinning, separate fibers are

twisted together to bind them into a long, stronger yarn. Characteristics of

the yarn vary based on the material used, fiber length and alignment,

quantity of fiber used and degree of twist.


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The above picture represents a single stage where the colluded thread

wrapped in a hollow container and is being sent through a spinning unit,

where it is thinned and threads are intertwined with each other. Thethread is then wound around onto the drums.

3) Various such drums called yarns are mounted onto a bigger spinning

machine where 6 to 12 threads are then spun in such a way so as to be

intertwined with each other and the final output is wound around onto a

bigger drum. This bigger drum is then sent to the weaving unit.

4) Dyeing: - Dyeing is the process of imparting colour to a textile material

in loose fibre, yarn, cloth or garment form by treatment with a dye.

Firstly the raw yarn is wound on spring tube to achieve package suitable

for dye penetration. Then, these packages are loaded on a dyeing carrier's

spindle one on the other. Then, the packages are pressed up to a desired


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height to achieve suitable density of package. Then, the carrier is loaded

on dyeing machine and yarn is dyed. After dyeing, the packages are

unloaded from the carrier in to a trolley. Then, all the packages are hydro

extracted to remove maximum amount of water. Then, all the packages

are dried to achieve the final dyed package. At last the dyed yarn

packages are packed and delivered.

In order to remove natural or unwanted colour from material, the opposite

process of bleaching is carried out.

If things go wrong in the dyeing process the dyer may be forced to

remove the dye already applied by a process that normally known as

stripping. This normally means destroying the dye with powerful

reducing agents (sodium hydrosulphite) or oxidising agents (Hydrogen

peroxide or sodium hypochlorite). The process often risks damaging the

substrate (fibre), where possible it is often less risky to dye the material a

darker shade, black is often the easiest or last option.


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5) Weaving: - In general, weaving involves the interlacing of two sets of

threads at right angles to each other: the warp and the weft. The warps are

held in parallel order. The loom is warped with the warp threads and the

weft thread is wound onto spools called bobbins. The raising / lowering

sequence of warp threads gives rise to many possible weave structures

from the simplest plain weave (also called tabby), through twills and

satins to complex computer-generated interlacings.

Both warp and weft can be visible in the final product. By spacing the

warp more closely, it can completely cover the weft that binds it, giving a

warp-faced textile. Conversely, if the warp is spread out, the weft can

slide down and completely cover the warp, giving a weft-faced textile.

There are a variety of loom styles for hand weaving and tapestry. In

tapestry, the image is created by placing weft only in certain warp areas,

rather than acro


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ss

the entire warp width.

In Gopi synthetics I was given the option to choose a project of my choice and I

opted for the learning and understanding the business as a whole. The reason

for it was that this company produces finished textiles which is used for various

purposes and the base of my family business is also textiles as we are into

handy-craft exports. As per my project selection they agreed to shuffle me in

various departments with a duration of almost ten days in each.

The various departments and the learning offered by the same are:

Grey department

(Worked and understood this department for 14-16 days under the

supervison of Mr. devilalji.)

Grey means raw unprocessed cloth which could be cotton, polyester,

viscose etc. This department forms the base for the industry as in this

industry grey is used as raw material. This department is concerned with


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the purchase of grey material from the suppliers. After its purchases it is

cleaned and polished so that it can be easily used in other sophisticated

processes. Cleaning and polishing is done with the help of processes

called sharing, peeching and crushing. Each is done with a specific and

different output. These are done on the demand of the parties i.e. parties

generally customize what they want in the final outcome.

In this department regular inspection is being done by measuring the

read, peak of the grey i.e. yarns are counted whether the cloth supplied is

authentic or not. If the grey is not upto the mark it is a defaulter and it is

either sent back to the supplier or respective amount is deducted from the

payment to be made. A specialist is appointed for this particular

inspection who does it for many other parallel firms.

Stores and Spares

(worked and understood this department for 12-14 days under the

supervisor Mr. Kamlesh swami)

This department is concerned with the allotment of spare parts for various

machines. Every machine or a group of similar machines has a master or

supervisor on it who takes care of it and ask for any spares or parts for the

respective machine. This is done with the concern of the engineer Mr.

Patil who is full time employed in the company.Every part allotted is being recorded manually in the register. One thing

lacking in this department is a software or a system which shows the exact

picture of the available parts and the spares that are to be ordered through

purchases department. This manual entry is prone to errors in count and

other aspects aswell.

Reconciliation department


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(worked for 14-16 days under the guidance of Mr. Sandeep who works as

reconciliation officer)

This is an important department in a process house like this. In this

industry at various stages and processes cloth shrinks or expands which

may result in net shrinkage or expansion in the final finished goods.

This department is concerned with keeping track of shrinkages or

expansion of cloth at various processes by taking daily reports from

machine supervisors and then calculating the net deficit or surplus in the

finished product. Generally there is deficit of 3-4% of the raw material i.e.

grey cloth , in the form of wastage at different stages. Wastages are bound

to be there but there are certain percentages set for different types of grey

cloth. For cotton it is 2-4%, polyester 1-3% , even expansion takes place

in fabric like liacra from 2-5% depending on the quality.

Purchases department

(worked and understood how purchases department worked for 12-14

days under Mr. M.K.Bihani who were my guide as well during the tenure

of my training.)

This department analyzes the reports of grey department, colors &chemical stores and spares & stores department, which includes the

requirement in the near future according to the program and the work

load. The purchases officer takes quotation from few suppliers and

compares them and orders from the best supplier which is providing at the

most competitive prices. There are few fixed suppliers and few are

flexible i.e. according to the requirement and quantity needed.


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2. METHODOLOGY:

Company image from inside:

When I joined the company there were too many rumors about

splitting up of the company between the two brothers and this went

true when the two companies Gopi synthetics and Omkar

industry split up. Earlier the working used to be in the same

premises with common resources being used but after that premises

were almost separated and everything was divided between the two

companies whether it is man power or machines or other resources.

Companys image is not too sound from inside considering few

factors such as:

Many employees were highly dissatisfied with the

promotion policy and salary increments. It was highly

uncertain about promotion and increments.


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Company did not had a sound creditability in the

market which was due to some failures in the payment

to the suppliers.

Labor contractors were not on the happy side as

according to them they put in a lot of efforts but they

were not paid well accordingly and on time as well.

The lack of professionalism was depleting companies

performance.

Thumb rule boss is always right many times

worked against favor of the company.

Self image of employees and employee satisfaction:

Most of the employees as they were undereducated they preferred

to complete the job in hard working and time consuming way.

They worked with hard work but not smart work which decreased

their efficiency and companys efficiency as a whole. Employees

were not too satisfied with the promotion policy and salary

increments.

Effectiveness of instruments for motivating employees:

As such there were no special measures taken in the company to

motivate the work-force except diwali bonus. It seems that few

members of the staff who were close to boss were given various

perks and monetary support , rest of the staff was never given such


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support. There was a clear atmosphere of partiality in the

organization which resulted in back biting and negative aroma in

the company.

Power equations and hierarchy:

The company worked on the conventional and desi principles

where thumb rule no.1 is boss is always right and rule no.2 is

that after boss his favorites are always right. Here powers were

generally at the top management with direct delegation of work to

lower management and department managers. Hierarchy was

simple to comprehend which is shown in the next page.


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Work culture- co operation, creativity, openness and transparency:

The work culture is fine after the recent division between the two companies. Earlier

it used to be fussy with less transparency as two companies shared same resources

but now everything is being divided. Employees are now working in more co

operative way as they know they are the only one with whom they have to work.

Since there is lack of openness as the same rule applies and junior level managers and

officers have a very less say for the betterment of the organization. Company is

planning to expand its production and there are few creative heads being recruited for

the same and there are certain existing employees who have a good say in the top

management and are good at their creative skills which is bringing positive synergy

in the company for their expansion plans.

Sources of conflict:

The biggest source of conflict arises at the top level between the members of the

family who are in the business. This hinders companys performance in a great deal

as rest of the employees are diverted towards this fuss and rumors in the organization

dilute the efficiency in a great deal. The recent division of the two companies is an

example of conflict between two brothers. From the day of conflict to the day of

division, rumor market was always on in the company and employees were diverted

off their work. Now that everything has happened the work force is back on track and

there seems to be positive synergy flowing in the organization.Other conflicts in the organization are between the employees which arise due to

back biting and misunderstandings which are small and short timed conflicts which

are generally resolved by supervisors.

There are few conflicts between the company and the suppliers due to non-payment

of due amounts on time or the quality aspect which results in change of suppliers and

entry of new ones in the business.


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Issues for future competition:

The company Gopi synthetics private limited is also a small player in this highly

competitive industry where they are trend followers set by huge giants of the industry

and the market scenario. For the company to survive it has to be updated with the

technological changes and has work in the lowest rates possible. But there lies a

positive aspect as well ,that is big companies are these days opting for job work at

various levels of manufacturing process and then that production is sold under its

brand name. Now as the company is mostly in job work it has sufficient work from

big companies as well.

Still the future in this industry is highly competitive and the huge giants are going to

pose great threat in the near future. Some of them are:

Arvind Mills Ltd.

Arvind Mills Limited is the flagship company of the US$550 million

lalbhai Group. It is engaged in the production of the widest range of

textiles. It is the worlds largest exporter of denim and Asias largest denim

producer. Ranking among the top denim manufactures of the world, 120

million metres of denim roll out every year from Arvind plants and is

stitched into leading international denim brands in more than 70 countries.

The company is also in the garment and mens shirting business under the

brand names of Newport, Flying Machines, Lee, Arrow. Besides

textiles, the company also has EPBAX unit.


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Raymond Ltd.

Incorporated in 1925, the Raymond Group is a US$ 300 million plus

conglomerate having businesses in textiles, readymade garments,

engineering files & tools, prophylactics and toiletries. The group is the

leader in textiles, apparel, files and tools in India and enjoys a pronounced

position in the international market. Raymond Textile produces pure wool,

wool blended and polyester viscose fabrics and blankets along with

furnishing fabrics. The denim division produces high quality ring denims.

Raymond believes in excellence, quality and leadership.

Alok Industries

Established in 1986 as a private limited company, Alok Textiles began as

fabric traders and suppliers to the garment industry.Beginning with

texturising of yarn, the company steadily expanded into weaving, knitting,processing, home textiles and readymade garments. In 1993, it became a

public limited company. In less than two decades, it has grown to become

a diversified manufacturer of world-class apparel fabrics selling

directly to garment manufacturers and exporters.

Vardhman Spinning & General Mills Ltd.

The Vardhman Group, established in 1965, under the entrepreneurship of

Late Lala Rattan Chand Oswal has today blossomed into one of the largest

textile business houses in India. At its inception, Vardhman had an

installed capacity of 14,000 spindles. Today its capacity has increased

multifold to over 550,000 spindles. Today Vardhman Threads is the

second largest producer of sewing thread in India. The grey fabric


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weaving unit at Baddi (HP), commissioned in 1990 with a

capacity of 20,000 metres per day, has already made its mark as

a quality producer of grey poplin/sheeting/shirting in the domestic

as well as foreign market. This was followed by entry into fabric

processing by setting up Auro Textiles at Baddi, which currently

has a processing capacity of 100 thousand metres/day.

Welspun India

Beginning with a small texturising unit in 1985, the group has significantly

expanded and diversified its business. It now has interests in terry towels,

LSAW pipes, pipe coating, cotton yarns, PFY, bathrobes and buttons. The

group has ties with 12 out of top 20 retailers in the world namely Wal-

Mart, K-Mart, JC Penny and Target to name a few. LSAW pipe clientele

includes names such as Shell, Gazprom, ExxonMobil, etc.

Bombay Dyeing

Bombay Dyeing is one of Indias largest producers of textiles. The

company is one of the largest and oldest textile companies in the country.

It manufactures cotton and blended textiles. Product mix comprises

suitings, shirtings, sarees, towels and bed linen. It manufactures Vivaldibrand of mens clothing. It is also a manufacturer of DMT. The company

was formed on 23 August 1879 by Nowrosjee Wadia, a dye works near

Mahim. This was the mill, which first started dyeing of yarn in India.

Textile Mfg. Co. Ltd. was set up in 1895. Nowrosjee Wadia & Sons

become the managing agents in 1898.


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Century Textiles

Century Textiles & Industries was incorporated in 1897. Till 1951, it had

only one industrial unitCotton Textile Mills. It has Asias largest

composite 100 per cent cotton textile mill. Century has diversified into

other businesses as well. At present, Century is not only the trend setter

in cotton textiles, but also a presence in yarn, denim, viscose filament

rayon yarn, tyrecords, caustic soda, sulfuric acid, salt, cement and pulp &

paper.

Himatsingka Seide Ltd.

The company commenced its operations on 15 February 1985. It was

promoted by. It manufactures natural silk fabrics under a 100 per cent

export oriented unit scheme. The company undertook to set up a composite

silk mill with an annual capacity of 7,50,000 square metres for producingnatural silk fabrics. It produces a wide range of regular and fancy 100 per

cent silk and silk blended yarns. Its weaving division - Himatsingka Seide,

offers yarn dyed decorative, bridal and fashion fabrics. The entire

operation of winding, doubling, twisting, dyeing, weaving and finishing is

integrated under one roof.


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3. IDENTIFICATION OF PROBLEMS AND CRITICAL

ISSUES :

Quality management :- To maintain the quality throughout the hard

process of producing finished textiles needs to be kept under check at various

stages so that the cloth doesnt gets damaged or the quality does not hinders. It

is certain that some percentage of wastage inevery lot will be there, still it

should always be under inspection that it does not exceeds standards.

Inventory Control :- The problem in inventories in the company is that

the records are not entered in systems through software and they are recorded

manually through reports of different departments. It results in frequent

mismatch of inventories.

Allocation of Resources :- Till the recent times before the two companies

got split up, allocation of resources was very confusing and haphazard, but now

it is getting back on track with clear cut allocations of resources to both the

companies.

Improper Assembly line :- The biggest problem I find in the company is

that they dont have proper assembly line. After grey is put into production , it

must take 3-4 days (standard) to get the final product. But right now it takes 6-7days at an average and sometimes it does stretches to 12-15 days.It happens

because the semi-finished goods are lying in the warehouse with no further

program i.e.

Time management

Proper utilization of energy


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Low cost skilled labor

summer project. ketan

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