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A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
CHAPTER-1 INDUSTRY PROFILE

THE TEXTILE INDUSTRY The information presented in this section has been extracted from publicly available documents which have not been prepared or independently verified by the Company, the Lead Manager, or any of their respective affiliates or advisors.
Overview of Global Textile Industry

The global textile and clothing industry was a US$453 billion business and Comprised approximately 5.1% of total international merchandise trade. The garment industry, one segment of the textile industry, was a US$258 billion business in 2004 and comprised approximately 2.9% of total international merchandise trade. The textile and garment sectors are closely related, with textiles providing the major input to the garment industry.
The labour intensive nature of the textile industry has caused it to shift its manufacturing base several times during the last fifty years, ultimately concentrating in those countries that offered the most competitive labour cost structure. Developed markets such as in the U.S. and Europe have started downsizing capacities in view of their higher manufacturing costs compared to countries such as India, Pakistan, China and Indonesia. This relocation of the industry is expected to provide developing countries with an opportunity to penetrate U.S. and European markets and to enhance their export share in these markets. The migration of textile capacity, however, will be influenced by objective competitive factors, and may be hampered by domestic challenges and the relatively weaker infrastructure of the developing countries.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD The Agreement on Textiles and Clothing (ATC) has also created opportunities for developing countries. With full implementation of the ATC on January 1, 2005, all trade barriers (both tax and non-tax) imposed by the developed countries on imports from developing countries were eliminated, giving way for a free trade regime in the global textile trade. The ATC has opened the way for the most competitive Developing countries to develop stronger clusters of textile operations. Developing countries that have both downstream and upstream facilities in textiles have an opportunity to prosper in this new competitive environment.
Overview of Indian Textile Industry The Indian textile industry occupies a unique position in the Indian economy. Not only does it provide one of the most basic needs of people, it operates as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-additions at each stage. Textiles also contribute significantly to the countrys overall economy. Currently, the textile industry accounts for some 14% of industrial production and about 4% of Indias GDP. The textile industry is the second largest provider of employment in India after agriculture, providing direct 106 employments to about 35 million people. Moreover, due to its close linkage with agriculture, the textile industry also has immense potential for employment generation, particularly in the rural and remote areas of the country, textile and garments account for 16.63%. Consequently, growth and development of this industry may have a significant bearing on the overall development of the Indian economy. The India textile industry has been fragmented historically. Recognizing the importance of this sector, the Indian government adopted a separate policy for development of the Indian textile industry in 1985. Further, in 2000 the government
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD formulated a comprehensive textile policy aimed at developing a globally competitive textile industry in India through modernization and consolidation. This policy was called Vision 2010 and is intended to take advantage of the free quota regime and increase Indias export turnover to US$50 billion by 2010.
Quota Regimes in the Textile Industry and Removal of Quotas Textiles constitute an important segment of global trade. Until very recently, however, global trade in textiles was subject to many tax and non-tax based trade barriers and had experienced various transitional phases, which can be broadly summarized as follows: In 1995, the Uruguay Round of the World Trade Organization brought the Multi- Fibre Agreement (MFA) to an end, giving way for a free trade regime in the global textiles trade to emerge. When the ATC came into existence on January 1, 1995, it provided that restrictions on the textile trade imposed by World Trade Organization members be phased out in four steps over a period of 10 years, starting in January of 1995. Date Minimum Volume Integrated Accumulated Volume.
THE INDIAN TEXTILE INDUSTRY The textile industry is one of the oldest and largest industries in India and is highly fragmented. It is divided into four segments: spinning, weaving, processing and garmenting. The Indian textile industry is also comprised generally of two sectors. The First, the organized sector, consists of modern and highly mechanized mills. The second, the unorganized sector, consists of the small-scale power loom operators and the highly fragmented handloom (hand spinning and hand weaving) operators. The unorganized textile sector has dominated the industry in India for several years and accounts for some 93% of the countrys total fabric production. The preferences and protections accorded to this sector by the government, however, are being 109
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD eliminated now to give way for integrated players in the organized sector, which will be able to modernize and improve the quality of the weaving sector and give the industry a major boost.
Cotton abundance India is the third largest producer of cotton, with the largest area under cultivation, in the world. Since cotton is the key raw material for the textile industry, India enjoys an advantage as a producer of low cost raw material compared to other countries.
Low-cost skilled labour In developed countries, the average cost of labour in weaving is around 39% of the Manufacturing costs of a finished product, which is substantially higher than the labour cost in India. Labour costs in India are some of the lowest in the world. Indias lower labour costs give the Indian textile industry an edge.
Designing skills and Fashion capabilities It is generally difficult to forecast the demand for garments on a global basis, and Buyers therefore prefer to place small orders tied to seasonal trends. Order flow in the Industry depends upon the ability of manufacturers to recommend design changes that match trends in the marketplace. Skilled designers play an important role by analysing existing trends and creating new designs to suit the preferences of end users. Indias ability to effectively translate the latest fashion trends into final products gives the Indian textile industry an edge over other countries.
Fabric Production
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Since 1999, the proportion of man-made fibers in Indias total fabric production has continually increased. Total production of different types of fabric along with their growth rates are shown in the following table:
THE GARMENT INDUSTRY The garment industry is one of the fastest growing industries in India. This industry is structurally a labour-intensive, low wage industry with some variations across market segments. Pricing in the industry depends upon the extent of value addition in the end product, the more the value addition the higher per unit price realization. The competitive advantage of companies in this market segment is related to their ability to create designs that capture tastes and preferences, and even better influence such tastes and preferences in addition to cost effectiveness. This industry has also seen a significant amount of relocation of production and outsourcing to lower-cost producers. The size of the Indian textile and clothing market is currently estimated to be US$46 billion. The domestic market accounts for approximately US$30 billion and the export market is approximately US$16 billion.
COMPANY PROFILE.
Company History - Bombay Rayon Fashions Our Company was incorporated as Mudra Fabrics Private Limited (MFL) on May 21, 1992. On October 13, 1992 our Company was converted into a public limited company. Subsequently, on September 30, 2004, name of our Company was changed to Bombay Rayon Fashions Limited (BRFL). In March 2005, with a view to consolidate business of our Group, Bombay Rayon Private Limited (BRPL) was amalgamated with our Company and two
partnership firms of the Group, i.e, B R Exports and Garden City Clothing were taken over by BRPL and our Company respectively.
The Bombay Rayon Group The Bombay Rayon Group started in 1986 with the incorporation of BRPL. The Group is in the textile industry having facilities for manufacture of fabrics, garments, design development, sampling etc. Presently, our Group is engaged in carrying out the activities of manufacture of fabrics for domestic sale and export and manufacture of garments for export. The Bombay Rayon Group was promoted by Mr. Janardan Agrawal. Subsequently Mr. Aman Agrawal and Mr. Prashant Agarwal, sons of Mr. Janardan Agrawal joined the Group and are now in charge of the management of the Company as well as our Group companies. Key Events in the History of the Bombay Rayon Group/BRFL Year Key Events 1986 Bombay Rayon Private Limited, the first company of
Bombay Rayon Group incorporated for undertaking the business of manufacture of woven fabric
Back ground and inception of the company:The Company is vertically integrated businesses engaged in the manufacture of a variety of fabrics and garments and have state of the art, modern production facilities. Its business was founded by Mr. Janardan Agrawal in 1986, with the incorporation of Bombay Rayon Private Limited. The Company started out producing cotton, manmade and blended fabrics and has since expanded into manufacturing garments, predominantly designer shirts for men, women and children. The business has also commenced the manufacture of home textiles. The business is focused on capitalizing on the vertical integration of our production process, from initial design to fabric production to the manufacture of garments, taking advantage of the higher profit margins offered by the designer shirt segment and the elimination of quotas in the international marketplace. The Company is currently one of the largest shirt manufacturers in India. At present, the Company exports all of our garments to the U.S. and Europe. It also sells fabrics in the domestic and international markets. The Company has positioned itself as a multi-product, multi-fibre and multi-market player, ensuring that our target market is a diverse mix of the domestic fabrics market and the international fabrics and garments market. Our eight manufacturing units are located in Navi Mumbai, Silvassa, Sonale in the Thane district and Bangalore. Each of these units are fully supported by facilities for product development, design studios and efficient sampling infrastructure, which allow us to provide quality services to our customers in India and abroad. We currently employ over 5,800 people. With our current manufacturing capacity, we can produce some 50 million meters of fabric and 12 million garments annually.
Nature of business
We are a vertically integrated company engaged in the manufacture of a variety of fabrics and garments at modern production facilities.
Our Manufacturing Capacities We are primarily in the business of manufacturing woven fabrics and garments for export. We currently have facilities for yarn-dyeing, weaving, processing grey fabric and manufacture of garments, including the packaging thereof. We are also expanding our current manufacturing capacity by constructing an additional manufacturing unit in Bangalore which is expected to become operational by December, 2010. It will help us increase our current production by some 22,000 pieces of garments per day.
Manufacture of Woven Fabric For nearly two decades we have been manufacturing woven fabric. We currently have weaving machines at three locations: the village of Sonale in Thane district, Navi Mumbai and Silvassa. These facilities manufacture woven fabric (both shirting and suiting) of different varieties using cotton, man-made fibres and their blends. All of these manufacturing facilities use modern, imported technology. In addition to the weaving machines, we have also invested in and installed at our plants modern preparatory machines used for winding, sizing, and direct and sectional warping. The table below lists some of our manufacturing equipment.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Procurement of Grey Yarn and Yarn Dyeing We purchase grey yarn from various suppliers, depending on the order volume for the manufacture of woven fabric. After procurement, the yarn is inspected for quality and stored in the warehouse. We use grey or dyed yarn depending on the nature of the orders we receive. If the yarn needs to be dyed, we currently outsource that process.
Sizing and Warping Some man-made warp yarns are sized to improve their strength and to minimize breakage before weaving. The threads are compressed to the proper size as they pass between rollers and then dried with large, steam heated cylinders. Warping is a process by which yarn is assembled onto a beam to be used on weaving machines. We use humidification plants to eliminate excess heat and provide humidity in the weaving sections.
Weaving and Grey Fabric Inspection After warping, the beam is put on the weaving machines, which produce woven fabric. The fabric produced by weaving is grey in nature and is not suitable for garment production or for any other purpose. It has to be processed further to give it both an attractive look and stability. We inspect the grey fabric and mend blemishes wherever required. Afterward, we pack the fabric and send it to the process house.
Fabric Processing and Finished Fabric Checking Our Integrated Facility contains a modern process house, which has facilities for washing, bleaching, mercerising, printing, dyeing, calendaring, treating brightness,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD shrinkage and wrinkling. After such processing, the fabric is sent to the packing units, where it is re-inspected for quality and then packed and dispatched.
Procurement of fabric Depending on the customer order and design, we determine the appropriate fabric and fabric source and assess the quantity required, based the consumption of fabric per garment. This assessment is made by a team of skilled professionals. Most of the fabric we use comes from our integrated manufacturing facility in Bangalore. Depending on demand, we also may source grey fabric from the local market or finished fabrics from overseas markets.
Fabric Checking The procured fabric is checked for both quality and quantity with the aid of machines that help to visualise the extent of any damage that may have been caused to the fabric and to minimise waste. The fabric is then approved by the quality control department, which ensures that the fabric matches the specifications stipulated by the production/design department. Fabric accessories are also thoroughly checked for damage and defects.
Fabric Cutting and Garment Stitching The fabric is laid on a cutting table and then plotted according to the specific patterns using CAD/CAM machinery. The system ensures optimum usage of fabric, keeping cutting wastage at a minimum level. After plotting, the fabric is cut by cutting machines. The component parts of the shirt are then labeled for identification of size and shade. This process is known as sorting. The sorted fabric is then bundled and
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD sent for fusing of the three main components, collars, cuffs and plackets. The collars and cuffs are then attached to the main body of the shirt, completing the first stage. Then buttonholes are made and the buttons are attached. This is performed with the help of specialized machinery. After the manufacturing process is completed, the finishing process begins. The shirt is manually checked for loose threads and other blemishes. We also use thread-removal machines, which vacuum loose, superfluous thread from the shirt.
Final Inspection All the garments we manufacture are subjected to stringent quality control measures to ensure that every piece is manufactured in accordance with the order specifications and requisite quality standards. A separate quality assurance department is solely responsible for ensuring that all finished goods are inspected and free from defects and stitched according to specification. Any piece that varies from acceptable limits is rejected.
Finishing and packing After the products pass the quality inspection, they are then folded as specified in the fold diagrams given to the factory. The necessary folding accessories, such as stiffeners, colour inserters and barcodes, are inserted, and the products are then packed in appropriately sized vinyl zipper bags. The packaged pieces are placed in cartons for shipping. In some cases, the goods are bulk-packed and shipped.
Product Profile
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD FABRIC
Every fabric in the Bombay Rayon collection must pass the ultimate comfort test. Thats why we take the time and expense to ensure it stays so unbelievably soft and comfortable. Our commitment to genuine Bombay Rayon quality shows in the fabrics we use. Along with our incredible fabrics and size offerings, at Bombay Rayon you'll find colour! Vibrant and subdued, classic and contemporary, be on the watch for the new SummerMonsoon collection to unfurl short Bombay Rayon is a leading supplier of quality fabrics worldwide. We at Bombay Rayon understand the needs of this exciting industry and are committed to supporting our customers requirements. Our line combines quality and style with an extensive offering of mens styling.
You're sure to find the perfect jacket while browsing through our on-line catalogue. We offer a large variety of fabrics to choose from and pricing options to fit every budget. We feature premium Shirting, Suiting, Voiles and Fashion Garments - all of which co-ordinate wonderfully with every fabric.
APPAREL
Comfortable, pure and simple - thats what the Apparel Collection from Bombay Rayon is all about. Great clothes in easy, contemporary styles made from soft, durable fabrics that youll enjoy wearing to the office, on the road and over the weekendwhenever and wherever your active life takes you. Our collections are made up of true wardrobe essentials for todays work environment. Whether you need a uniform for your team, a gift or program item, Bombay Rayons apparel collection has just the right looks to fit both casual and more formal occasions.
The corporate casual collection reduces the time and effort spent in looking great with natural coordinating combinations you'll love for both work and leisure. In this collection of Bombay

Rayon apparel, we're proud to offer apparels of the highest quality, with construction details that are evident in every style we make. Our styles have the look and functionality of outdoor apparel, but are made in everyday friendly fabrics that easily transition into the workplace.
And the best part is, we're priced right. Value is a large part of the equation that's kept the Bombay Rayon Apparel Collection so popular over the years. You can afford the best! For the most comprehensive selection of quality corporate casual apparels, take a close look at our collection.
Brief Description of different steps involved in garment manufacturing is as follows. 1. Procurement of fabric Based on the order and design, the fabric and appropriate fabric source are identified and the quantity required is assessed based on the consumption of fabric per garment,. We have a team of skilled professionals who makes this assessment. We source majority of the fabric required from our fabrics weaving plants at village sonale in Thane district, Navi Mumbai and silvassa.
2. Fabric checking Besides fabric, the accessories are also thoroughly checked for defects and damages.
3. Fabric cutting and garment stitching The fabric is laid on the cutting table and then plotted with the help of CAD /CAM machinery as per the specific patterns. This is a system for consumption planning and ensures optimum usage of fabric keeping the cutting wastage at the minimum level. After plotting the fabric is cut with the help of cutting machines. Different parts of shirt are then stickered for identification of size and shade. This process is known as sorting of fabric. The sorted fabric is then
bundled and sent for fusing of the three main parts namely collars and plackets. Then collars and cuffs are attached to the main body completing the first stage
4.Final checking of garments We subject 100% of the garments that we manufacture to stringent quality control measures. To ensure that every piece manufactured is as per specification and the required quality standards, responsible for ensuring that all finished goods are free from defects and stitched as per measurement. This team compares the final product with the measurement chart and style chart given by the design department. Any variance beyond acceptable limits is rejected. Manufacture of Made Ups Very recently we have ventured into the value added segment of home textiles i.e. Bed sheets, fitted sheets, pillow covers, Quilt covers, Duvet covers etc. mainly for direct exports. The size of global trade in this segment is expected to be over US 12 billion. The market for home textile products as been growing at a rapid pace over the last few years. With the removal of quota restriction the segment offers great opportunity for growth.
Our competitive Strengths 1. Experience of our promoters 2. Flexibility in manufacture of garments 3. Designing capabilities 4. Lower turnaround time 5. low labour cost 6. Economies of sale
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD 7. High productivity 8. Quality assurance 9. Sampling capabilities
1. Experience of our promoters Our promoters and we have adequate experience in the textile industry and we have successfully implemented expansion project earlier. We also have adequate technical and commercial staff to handle implementation of the proposed new expansion project 2. Flexibility in manufacture of garments We are in the business of manufacture of woven fabric and for the last fifteen years it as been our main stay. We have over the period of time developed expertise in the manufacture of any customer desired variety involving complex design of woven fabrics of superior quality. 3. Designing capabilities Designing is a critical element of fabrics and garments both. Development of innovative designs is one of our main strengths. It is also our USP (UNIQUE SELLING PROPOSITION) . We are into the high end products we have in house teams of experienced designers in weaving garmenting and home textiles. We have installed software packages CAD/CAM systems for generating designs on computers .At least 4-5 new designs are developed on a daily basis in each of the divisions.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD 4. Lower turnaround time Garment manufacturing is highly fashion oriented. Fashion is time bound and delay in meeting deadlines results in loss of businesses. Meeting customer deadlines on a consistent basis is important for business. Our in house facilities of design studio, sampling of fabrics and garments, weaving, and garmenting allows us to plan and deliver the order in shortest turnaround time.
5. Low labour cost We are located on the outskirts of Bhiwandi, where skilled labour is available in abundance. Thus our labor costs are maintained at realistic levels. Added to that we have kept ourselves updated on the latest available technologies and continuously look for new attachments and value adding equipment to enhance the performance of our machines such that the labor input required is maintained while the production/ productivity is improve
1. Economies of scale The companys production capacity in each of our units / divisions can be considered mid to large size. It allows us the advantage of economies of scale. Although the units are spread over different locations, the raw material procurement and purchase functions are centralized. we can therefore take advantages of bulk discounts
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD 7. High productivity High level of modernization, trained work force and managerial expertise results in consistent high level productivity. We have established modern production facilities at each of our plant and we are continuously on the lookout for new / updated technologies. Our investment in value adding equipments/ attachments to our machines as resulted in twin benefits of consistent high quality and improves productivity
8. Quality assurance Each of the companys products passes through stringent quality checks. The quality assurance measures taken by the company include through checking of all raw material and other inputs right down to finished goods to ensure quality, statistical methods to identify and analysis areas of improvement, experienced man power for quality assurance activities, creation of data base for future reference and analysis etc.
9. Sampling Capabilities. We have all the facilities like desk looms, sample dyeing, sample printing, washing and processing facilities to produce fabric samples per designs developed by our design studio. In the initial stages of the order the design and sampling department continuously interacts with the buyers till the fabric sample is approved. Sample Yardages are made for making garments and in our dedicated fabric sampling unit, garment samples are made, remade, design changes are incorporated till the customer
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD finally approves the garment sample. This entire process is very time consuming and can take 2 months our dedicated in house facilities enable us to compress this time substantially.
CUSTOMERS PROFILE
Federated stores U S A V F (WRAGLER) U S A Liz Claiborne U S A DKNY U S A ECKO U S A MARK ECKO U S A Guess Italy Roberto Cavalli Italy Tom Tailor Germany Ottos Germany & Switzerland C & A Chain of Stores Germany Kiabi Stores France WR Replay Italy BHS UK Burtons UK Topman - UK Kickers UK Next UK GEORGE UK
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Business Operations Yarn Dyeing The Companys yarn dyeing operations are carried out at the integrated textile unit in Doddabalapur, Bangalore. Nearly 1.4 million kgs of yarn (approx. 4,000 kgs a day) is dyed annually at this facility. The expansion programme initiated by the Company will by setting up new facilities in Maharashtra see a further increase in capacity to the extent of 10.5 million kgs, totaling the capacity to 11.9 million kgs per annum. Fabric Processing Fabric processing of largely woven fabrics is carried out at the Companys integrated manufacturing facilities in Bangalore having capacity of producing 55 million meters per annum. The expansion programme being set up in Maharashtra is expected to increase the capacity by a further 180 million meters per annum. The weaving facilities for grey fabrics are located at Thane, Silvassa, Navi Mumbai and Bangalore. New greenfield facilities are now coming up in Maharashtra. Finished fabrics are supplied in the domestic market through 70 distributors and more than 2000 retailers under the brand name Bombay Rayon and to the manufacturers of garments as per their required specifications and designs. Exports are largely to the Middle-East and EU countries. Bombay Rayon Fashions Limited (BRFL) is Indias foremost, vertically integrated textile group, engaged in the manufacture, exports and retail of high-end designer ranges of fabrics and garments. BRFL enjoys a strong presence across the entire value chain of yarn dyeing, weaving, fabric processing, design, garment manufacturing and retail. The Company owns 13 manufacturing facilities, including 1 sampling unit across the country.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Garment Manufacturing Casual and formal wear garments for men and women are manufactured at different locations in Bangalore. These are exported to international buying houses and retailers across the EU and USA. While the current facilities produce 30 million pieces per annum, our various acquisitions and expansion programme will substantially add to the existing capacity. Leela Scottish Lace (P) Ltd, which was acquired in August 2007 has 16 facilities at different locations with a total capacity of more than 50,000 pieces per day. LNJ Apparel of RSWM Ltd, whose operations we acquired in October 2007 has a capacity to produce 8000 pieces of casual and formal trousers, while at Maryan Apparels Private Limited, which we acquired in March 2008, has a capacity of 8,000 pieces per day. With the expansion programme, the total capacity will reach to 75 million pieces per annum. Retail The Company recently acquired the European brand GURU and other retail business of Jam Session Holding S.r.l (Jam). This acquisition will enable BRFL to set its footprints into the global retail scenario and move up the value chain to emerge as a significant global textile entity.
Awards and Achievement:-
BRFL was aptly honoured as the 'largest shirt maker in India'. We also received Dun & Bradstreet - Rolta Corporate Award as one of India's top 500 companies. Our Doddaballapur mill won the Prestigious National safety Award for "Outstanding Performance in Industrial safety as winner for the performance year
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD 2008 based on the lowest average frequency rate." This award was presented by Mr. Mallikarjuna Kharge, honorable Minister for Labour and Employment Government of India which was received by our Vice President Mr M Gopi on 27 Sept 2010 at New Delhi.
MILESTONES OF THE BRFL
1986 Mr. Janardhan Agrawal establishes the Bombay Rayon Group. 1990 Maharashtra gets its first fabric manufacturing facility. 1998 Bombay Rayon group commences export of fabrics. 2001 Launch of the Garment Division. 2005 Bombay Rayon Groups business is consolidated into BRFL. The company makes a successful IPO with a listing on all the stock exchanges 2005 in India. 2005 BRFL acquires DPJ Clothing UK, supplying to high street retailers in UK. Set up of 7 garment manufacturing facilities in Bangalore with around 7000 2005 machines. 2007 BRFL acquires "Leela Scottish Lace", one of the largest garment manufacturing units set up in India, making BRFL one of the largest apparel groups in India. 2007 BRFL acquires "LNJ Apparel" a 1000 machine specialized bottoms plant. 2007 BRFL marks the commencement of the mega USD 250 million Textile and Garment Project under a special MOU signed with the government of Maharashtra.
2007 BRFL establishes a fully integrated textile mill in Doddaballapura, Bengaluru with a capacity to process 1 lakh meters/day. 2008 BRFL acquires the iconic brand Guru. 2009 BRFL is sanctioned the project under the Scheme for Integrated Textile Park (SITP) by the Govt. of India. BRFL establishes the worlds largest fabric processing capacity of 5 lakh 2010 meters/day at Tarapore. 2010 BRFL acquires STI India Ltd, a world class producer of 100% cotton yarn.
Management Pattern by Bombay Rayon

Si. No. 01 02 03 04 05 06 07 08 09 10 11 12 Name Janardan Agrawal Naseer Ahmed A R Mundra B S Bhesania Pravin P Shah Mukul Sarkar Aman Agrawal Prashant Agrawal Uday Mogre S B Agarwal Suresh Vishwasrao M M Agrawal Designation Chairman / Chair Person Jt. Vice Chairman Executive Director Director Director Nominee Director Vice Chairman Managing Director Executive Director Director Director Director
Area of Operations
Bombay Rayon Fashions Limited (BRFL) is Indias foremost, vertically integrated textile group, engaged in the manufacture, exports and retail of high-end designer ranges of fabrics and garments. BRFL enjoys a strong presence across the entire value chain of yarn dyeing, weaving, fabric processing, design, garment manufacturing and retail. The Company owns 13 manufacturing facilities, including 1 sampling unit across the country.
Opening of overseas offices

Our first wholly owned subsidiary was incorporated in the Netherlands under the trade name of BRFL Europe B.V. BRFL Europe B.V. has a showroom in Almere, which mainly caters to the needs of our European customers. We intend to open more overseas offices to make products more readily available and accessible to our customers. Our strategy is to give our overseas buyers the comfort and benefit of dealing with a company with an international presence.
Competition
In the domestic market we face competition from other corporate textile companies and from businesses that have capacity in fibres (natural and manmade), yarn (spinning and text rising), weaving, processing (yarns and fabrics) and garments but which do not have a vertically integrated capacity in all areas (the "Non-Corporate Sector"). There are many medium and small size units manufacturing synthetic blended/cotton fabrics in India. Our products face competition from this large number of fabrics manufacturers in the Non-Corporate Sector. Further, in the free trade regime phased in by the Agreement on Textile and Clothing, there has been intense competition in the international markets. Mexico, Turkey and Eastern Europe benefit from their proximity to our main target markets of the U.S. and Europe and have the ability to deliver products to these customers in shorter turnaround times. Here our competitive strengths are significantly lower labour costs in India and our economies of scale.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD We also face competition from manufacturers in other cost efficient supplier countries such as China, Pakistan, Bangladesh, Sri Lanka and Vietnam. We are able to compete more effectively with such countries due to our quick turnaround times supported by our in-house sampling capabilities. We intend to meet and overcome this competition through product differentiation (offering a value added, design based product in the mid-to-high end market segment), establishing state-of-the-art facilities across the textile chain (from weaving to processing to garmenting), and expanding into home textiles (an area of potential growth in the free trade regime).
Our Marketing and Sales Our Customers Our fabric customers include leading garment exporters in India, leading garment makers in the overseas markets, domestic garment manufacturers, domestic wholesalers and traders, and retailers. In addition, we have developed a strong network of marketing agents who sell fabrics to various small sized units and traders, thereby ensuring greater penetration of the retail market. Our garment customers include top brands from the U.S. and Europe.
Our Market Segments The following table indicates our presence by market segment:
Our Distribution channels
Products/market segments Fabrics-Domestic sale
Distribution channel BRFL-Marketing agents/wholesalers/Garment
manufactures/Retailers BRFL- overseas garment manufacture/ Exporters/ International buying houses BRFL- Buying Houses /international brands/ Germents-Exprot Retailers
Fabrics-Exports
Domestic Sale of Fabrics to Readymade Garment Manufacturers/Exporters This is a fast growing market segment for the sale of fabrics. The fabric is custommade for garment manufacturers/exporters. These are often bulk and repeat orders. In many cases, once the exporters have approved the fabric, they refer the manufacturers directly to us for their orders. Domestic Sale of Fabrics to Readymade Garment Manufacturers operating in the Domestic Market This is another segment gathering significance in the domestic garment industry. With the popularity of readymade garments on the rise and with the increase of retail shopping malls, the demand for fabrics from this segment has increased.
Domestic Sale of Fabric to the Retail Market The local retail market is well developed and we have been catering to this market for two decades. We have a network of over 10 agents and 70 distributors catering to more than 2,000 retailers throughout India.
Export of Fabric We are an established fabrics exporter to various overseas markets. Suiting fabrics are exported to Europe and shirting fabrics to countries in the Middle East and to Europe.
Export of Garments Our strategy for the export of garments is to focus on medium-to-high class garment labels to ensure our per unit price realization is maximised. We offer garments based on seasonal fashion trends and colour choices. Our expertise in the design of fabrics to customer specifications, garment designs and garment samples meeting stringent quality standards has helped us to attract well-known brands from Europe and the U.S. We regularly participate in international trade fairs to develop new relationships and to keep abreast of contemporary fashion trends.
Use of Information Technology ("IT") We are a technology-oriented organisation and use information systems extensively across our operations. Most of our critical functions, such as operations, supply chain, finance and accounts and human resources, are linked through a computer network. This has enabled us to improve operational efficiency, reduce our costs of operations, and enhance overall cost efficiency.
Fabrics Division: In our fabrics divisions, we have implemented a Textile Enterprise Resource Package software system designed and customized by M/S Prime Technologies, Coimbatore, India. The system has fully integrated modules covering:
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Indenting and Purchase Stores Inventory Production Planning and Order Tracking Job work Costing Finished Product Inventory Dispatch and Invoicing Supplier and Customer Ledgers The system covers all of our operating units involved in the fabrics line, such as yarn dyeing, weaving and fabric processing and all six of our fabrics warehouses, including grey yarn and finished yarn stores, general stores and spares, dyes and chemicals stores, grey fabrics, and finished fabrics stores. The system has been implemented at our Integrated Facility at Doddaballapur.
Garment Division: In our garment divisions, we are in the process of implementing an Enterprise Resource Package software system developed by TAAB Software and Solutions Pvt. Limited, New Delhi This system has following fully integrated modules: Costing and Quotation Sample Order Processing Purchase Order and Progress Monitoring Merchandise Suite Procurement Manager (Bill of Material) Material Inventory and Audit
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Production Suite Invoice and Packing List Management Information System Reports Business Accounting The system will link the marketing office and production units through two sets of Servers and will provide for on-line interactions. The system is under implementation and will be ready for testing and roll out by January 31, 2007. Data transfer linkages Between the fabrics divisions Prime Technology software and the garments divisions TAAB software is under implementation
Work flow Model Longitudinal Cutting
Longitudinal Hemming
Cross Cutting
Cross Hemming
Inspection
Packing
The Environment Good environmental practice has always been a primary consideration in the development of our business, leading us to seek practical and environmentally sound solutions to avoid waste production. Our business activity inevitably has an impact on the environment. We seek to minimise this impact as far as possible by operating a policy of sustainable development and constantly researching new ways to reduce pollution, wastage and the amount of resources used, while recycling as much as we can. Our environmental approach comprises the following: We are committed to actions to restore and preserve the environment; We are committed to developing safe and clean technologies using the best environmental practices; We are committed to minimizing waste and pollutants, conserving resources, and recycling materials at every stage of the product life-cycle; We will continue to work with customers and public authorities, vigorously pursuing the development and implementation of improved technologies and products to minimize impact on the environment; and We will develop effective methods and procedures, and will promote a culture in which all employees share their commitment.
Future Prospects Of The Company

Bombay Rayon Fashions Ltd plans to invest Rs 1,100 crore in Maharashtra for setting up fabric and garment making facilities. The company signed a memorandum of understanding with the Government of Maharashtra. New
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD facilities will come up at Tarapur, Islampur, Ichalkaranji, Latur, Nanded, Osmanabad and Amravati.About 32,000 direct and 50,000 indirect jobs will be created. The company has Rs 400 crore as equity capital, the balance will be obtained as debt, which has already been tied up. Yarn dyeing and fabric processing will see an investment of Rs 450 crore each while garment manufacturing will get Rs 200 crore. Production at two of the garment plants at Osmanabad and Ichalkaranji in Maharashtra has already started.
CHAPTER 3 ORGANISATIONAL REVIEW

According to Waterman, organization change is not simply a matter of structure, although structure is significant variable in the management of change. Again it is also not a simple relationship between strategy and structure, although strategy is also a critical aspect. In their view effective organizational change may be understood to be a complex relationship between strategy, structure, system, style, skills & shared values. The first three elements-strategy, structure &system are considered the "hardware" of success. The next four style skills, staff, and shared values are called the "software".
BRFL STRATEGY: 1. To strengthen the fabric business in order to have full control of entire fabric supply chain- from yarn dyeing, weaving to processing of fabrics. They intend to achieve this through implementation of new project facilities. This would not only help them to achieve total quality control at each stage, it would enable them to cut out delays in delivery of fabrics to their garment units. These apart there stress on building & enhancing their design capabilities enables them to present their own collections & offer total package solutions to the customers. 2. To rapidly expand garments capacity to meet the growing opportunity in the market place and in the process actively consumes 30-50% of their own production of fabric.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD 3. Position there selves in the mid to high end garment segment such that they enhance their acceptance and improve their capabilities to meet the stringent compliance stipulated by such customers once this is achieved, entering the commodity market would pose little difficulty. 4. Our marketing and selling strategy
We have positioned our company in a reasonably strong position in all the business segments in which we operate due to our quality, consistency, pricing and delivery schedules. Our customer profile for fabrics include leading garment exporters in India. Leading garment makers in the overseas markets, domestic garment
manufactures, domestic wholesalers and traders and retailers. In addition, we have developed a strong network of marketing agents who sell fabrics to various small sized units and traders thereby ensuring greater penetration of markets. As far as garment customers go, top labels in garments in the European and US markets are on our customer list.
Organisational Structure:
Senior Factory Manager
Cutting
HRD
Printing
EMB
Washing
Fabric
Manager
Manager HR Executives
Encharge
Manager ]
Manager Boiler Operators Chemical Store Helper Helpers
Manager
Operators Supervisors QC operators Helpers Helpers
Pattern master In charge
Encharge
HR Assistant welfare
Assistants Runner Helpers.
cutters Nurse CAD
Designer
QC
Designer Assistant Designer Dispatch
Later
Relayes
Helpers
Dispatch Runner Framers
Organisational System:
At BRFL, internal control systems and procedure are adequately commensurate with the size and structure of the business. The operating and business control procedures have been planned and implemented in a manner that ensures efficient use of resources, as well as compliance with procedures and regulatory requirements. The Company has set up its own internal audit department and has also engaged a firm of Internal Auditors to carry out audits extensively throughout the year with the objective of testing the adequacy and effectiveness of internal controls and recommending improvements. The Audit Committee hold discussions with auditors periodically about internal control systems, the scope of audit including the observations and reviews of the quarterly, half yearly and annual financial statements before submission to the Board. The Audit Committee ensures compliance of internal control systems. Management system for Human Resources: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices.
Technology Initiatives:
Bombay Rayon Fashions Limited has partnered with Datatex and SAP to implement a companywide Enterprise Resource Planning tool (ERP) to cover all textiles and garmenting processes under one roof. Datatex specializes in the Textile and Garment industry.
Today there are over 11500 workstations using datatex ERP in 38 countries in 14 different languages. Its customers include some of the world's largest and most
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD important textile manufacturers. Datatex serves its international customers through its offices in Italy, Israel, the USA, Germany and Switzerland.
FINANCE DEPARTMENT
Sanctions Rs. 400 m loan for project Exim Bank invests Rs. 50 mn in Bombay Rayon Fashions Equity
MUMBAI, 25th July 2005: Bombay Rayon Fashions Ltd. becomes the first Indian company to receive direct Equity Investment of Rs. 50 million from Export Import Bank of India (Exim Bank). The Bank is subscribing 10,00,000 equity shares of Rs. 10 each at a premium of Rs. 40 per share, announced Mr. S. Sridhar, ED of Exim Bank, here today.
Bombay Rayon Fashions Ltd., a Rs.150 crore company engaged in Manufacturing of fabrics and garments for Exports, is setting up Rs.161 crore greenfield integrated textiles Unit with production Facilities for yarn dyeing, weaving, processing and garment mfg. at Apparel Park, Doddabarllapur and Bangalore. Exim Bank has also sanctioned a term loan of Rs. 40 crore for this Project.
Bombay Rayon Fashions Ltd. (BRFL) has been allocated 20.26 acres of land in Industrial Township developed by Karnataka Government at Doddaballarpur Apparel Park, 30kms from Bangalore. The Apparel Park has been modeled on international lines with modern infrastructure and dedicated power and water supply and common
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD effluent treatment plant. The other leading companies coming up to set up their projects in the Park includes Raymonds, Gokaldas Images and Himatsingka Seide.
Bombay Rayon Group established by Mr. Janardan Agarwal in 1986 with a modest beginning in manufacturing of fashion fabrics at present is considered amongst Indias leading manufacturers and exporters of fashion fabrics and garments with a State-of-the-art manufacturing facilities at New Mumbai, Silvassa, Sonale and Bangalore fully backed by the facilities of product development, design studio and efficient sampling infrastructure to provide the quality service to its customers in India and abroad.
Presently the group has a strong presence in fashion fabrics and garment segment and is catering to various international brands from Europe and U.S.A. such as C & A, DKNY, Liz Claiborne, Wrangler (VF Group), Federated Stores, Tom Tailor, Guess and Kiabi. With multifold expansion of garment capacity on the anvil, negotiations are on with premium labels in international market, said Bombay Rayon Fashions MD Mr. Prashant Agarwal. The main reason that the group is able to attract such well known names in fashion garments, is the groups ability to offer fabric collections based on seasonal fashion trends and colour choices, expertise in design of fabrics as specified by the customers, garment designs and samples meeting the stringent quality required by discerning customers in Europe and U.S.A, he added. BRFLs new project with integrated facilities of weaving, process house and garments has been approved by the High Level Committee of Karnataka Government headed by the Chief Minister. This project as Composite Textile Unit will have the production capacity of 4000 kg. per day of yarn dyeing, 104 looms of weaving, 93,999 meters per day of processing and 22,000 pieces per day of garments. The total
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD cost of the project is envisaged at Rs. 246.72 crores as per the detailed TechnoEconomic Feasibility Report prepared by M/s. Gherzi Eastern Limited. The loans for the project have been tied up with the Banks under TUFS making the Company eligible for interest subsidy of 5% and for processing machinery a direct subsidy of 10% of the investment amount.7
Sanctions Rs. 400 m loan for project Exim Bank invests Rs. 50 mn in Bombay Rayon Fashions Equity
Bombay Rayon Fashions Ltd. becomes the first Indian company to receive direct Equity Investment of Rs. 50 million from Export Import Bank of India (Exim Bank). The Bank is subscribing 10,00,000 equity shares of Rs. 10 each at a premium of R s. 40 per share, announced Mr. S. Sridhar, ED of Exim Bank, here today.
Bombay Rayon Fashions Ltd., a Rs.150 crore company engaged in Manufacturing of fabrics and garments for Exports, is setting up Rs.161 crore greenfield integrated textiles Unit with production Facilities for yarn dyeing, weaving, processing and garment mfg. at Apparel Park, Doddabarllapur and Bangalore. Exim Bank has also sanctioned a term loan of Rs. 40 crore for this Project.
Bombay Rayon Fashions Ltd. (BRFL) has been allocated 20.26 acres of land in Industrial Township developed by Karnataka Government at Doddaballarpur Apparel Park, 30kms from Bangalore. The Apparel Park has been modeled on international lines with modern infrastructure and dedicated power and water supply and common effluent treatment plant. The other leading companies coming up to set up their projects in the Park includes Raymonds, Gokaldas Images and Himatsingka Seide.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Bombay Rayon Group established by Mr. Janardan Agarwal in 1986 with a modest beginning in manufacturing of fashion fabrics at present is considered amongst Indias leading manufacturers and exporters of fashion fabrics and garments with a State-of-the-art manufacturing facilities at New Mumbai, Silvassa, Sonale and Bangalore fully backed by the facilities of product development, design studio and efficient sampling infrastructure to provide the quality service to its customers in India and abroad.
Presently the group has a strong presence in fashion fabrics and garment segment and is catering to various international brands from Europe and U.S.A. such as C & A, DKNY, Liz Claiborne, Wrangler (VF Group), Federated Stores, Tom Tailor, Guess and Kiabi. With multifold expansion of garment capacity on the anvil, negotiations are on with premium labels in international market, said Bombay Rayon Fashions MD Mr. Prashant Agarwal. The main reason that the group is able to attract such well known names in fashion garments, is the groups ability to offer fabric collections based on seasonal fashion trends and colour choices, expertise in design of fabrics as specified by the customers, garment designs and samples meeting the stringent quality required by discerning customers in Europe and U.S.A, he added. BRFLs new project with integrated facilities of weaving, process house and garments has been approved by the High Level Committee of Karnataka Government headed by the Chief Minister. This project as Composite Textile Unit will have the production capacity of 4000 kg. per day of yarn dyeing, 104 looms of weaving, 93,999 meters per day of processing and 22,000 pieces per day of garments. The total cost of the project is envisaged at Rs. 246.72 crores as per the detailed TechnoEconomic Feasibility Report prepared by M/s. Gherzi Eastern Limited. The loans for
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD the project have been tied up with the Banks under TUFS making the Company eligible for interest subsidy of 5% and for processing machinery a direct subsidy of 10% of the investment amount.7
Marketing Department Marketing and Selling strategy The company in a reasonably strong position in the entire business segment in which we operate due to our quality, consistency, pricing and delivery schedules our customer profile for fabrics include leading garment exporters in India. Leading garment makers in the overseas markets, domestic garment manufacturers, domestic wholesalers and traders and retailers. in addition, we have developed a strong network of marketing agents who sells fabrics to various small sized unit and traders there by ensuring greater penetration of markets. As far as garment customers go, top labels in garments in the European and US markets are on our customer list. The local retail market is well developed and we have been catering to this market for almost 2 decades. We have a network of over 10 agents and 70 distributors catering to network of more than 2000 retailers spread across India. Presently in the domestic retail division, we have a turnover of around Rs 200 lacks per month, which we plant to increase to Rs. 300 lacks per month.
The weaving capacity is to be increased by 48 machines to 198. The garment capacity win go up more than four times to 28,000 pieces per day. The prospectus also mentions that, along with other intermittent expansions, the garment capacity win increase 10 times to 60,000 pieces per day by April 2006. Presently BRFL exporting 100% of our garments. However supply fabrics to the
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD domestic garment exporters we have positioned ourselves as a multi product, multi fiber and multi market player ensuring that our target market is a diverse mix of the domestic fabrics market, garment export trade and international market. Our manufacturing facilities are spread across four locations at Navy Mumbai, silvers, Somali in Thane district and Bangalore, fully backed by the facilities for product development, design studio and efficient sampling infrastructure to provide quality services to its customers in India and abroad. We currently employed over 5000 people. Presently BRFL has 250 weaving machines producing approximately 20 million meters of woven fabric. Per annum 2800 sewing machine with production capacity of 8-4 millions garments per annum. A functional structure is well uniting to organizations which have a single or dominant core product because each subunit becomes extremely adept at performing its particular portion of the process. The organization is structured according to functional areas instead of product lines. The functional structure groups specialize in similar skills in separate units. This structure is be t used when creating specific, uniform product_ they are economically efficient, but lack flexibility. Communication between functional areas can become efficient if there is proper coordination between HR, Customer Service & Operation, IT, Finance, Sales and Marketing team etc
HUMAN RESOURCES
CEO
MANAGING DIRECTOR
GENERAL MANAGER
ASST.GENERAL MANAGER
MANAGER
MANAGER-HR
PERSONAL OFFICER
WELFARE OFFICER
HR-EXECUTIVE
PERSONAL ASSISTANT
PERSONAL ASSUSTANT
MANAGER-ASSISTANT
SUPERITENDENT
SECTION HEAD
WORKER
ASSISTANT
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD HR structure of the company
MANAGER-HR
WELFARE OFFICER HR-EXECUTIVE
Human resources are an integral and important part of any organization. One of the key pillars of the Companys success has been its people. BRFL has always recognized the importance of human capital and valued it highly. The Company has put in place sound policies for the growth and progress of its employees. Lot of emphasis and efforts are made to create a working environment that will encourage innovation, enhance work satisfaction and build a merit driven organization. The Companys human resource vision is to create a committed workforce through people enabling 43 processes and knowledge sharing practices based upon its value system. As on 31st March 2008, BRFL consolidated had 24,233
Skills
Employee Development Policy and Training
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Our human resource vision is to create a committed workforce through people enabling processes and knowledge sharing practices based upon our value system. We believe that learning and development is an integral part of our business. We have annual assessment processes for every level within the organization, including top130 level management. Under this system, employees are subject to performance appraisal and are assessed on specific skill requirements. For each employee, areas of development are identified and training is given in those areas, based on the employee's career plan. We also use these assessment processes to carry out promotions at all levels, through a completely transparent process.
Compensation Policy
Our compensation policy is based on the qualifications, age, experience and level of the employees. The policy also takes into account standards industry practices. Compensation is serves as main tool attract and retain talent in the Company.
Health and Safety
We follow a strict code of health and safety practices in the workplace. The code is monitored regularly by internal management reviews, which involve representatives from all areas of the business. The Company reviews and updates the code regularly, ensuring that new legislation and recommended practices are incorporated and followed. We constantly strive to remain eco-friendly by adhering to the highest international standards of manufacturing, effluent treatment and by using azo-free
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD dyes and chemicals to ensure the welfare of our consumers and the sanctity of our natural environment.
Initiatives i. Social initiatives:-
Bombay Rayon has initiated the implementation of SA8000 for its Doddaballapur Mill. SA8000 is a global social accountability standard for decent working conditions, developed and overseen by Social Accountability International (SAI). SAI offers training in SA8000 and other workplace standards to managers, workers and auditors. It contracts with a global accreditation agency, Social Accountability Accreditation Services (SAAS) that licenses and oversees auditing organizations to award certification to employer that comply with SA8000. SA8000 is based on the UN Universal Declaration of Human Rights, Convention on the Rights of the Child and various International Labour Organization (ILO) conventions. SA8000 covers the following areas of accountability:
Child labour:- No workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working.
Forced labour:- No forced labor, including prison or debt bondage labor; no lodging of deposits or identity papers by employers or outside recruiters.
Workplace safety and health:- Provide a safe and healthy work environment; take steps to prevent injuries; regular health and safety worker training; system to detect threats to health and safety; access to bathrooms and potable water.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain collectively; where law prohibits these freedoms, facilitate parallel means of association and bargaining.
Discrimination: No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment
Discipline: No corporal punishment, mental or physical coercion or verbal abuse
Working hours:- Comply with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement.
Remuneration: Wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions.
Management system for Human Resources:- Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices.
Health and Safety:- We follow a strict code of Health & Safety practices at conditions in the workplace and beyond. The code is monitored continually by internal management reviews, which involve representatives from all areas of the business. The group also reviews and updates the code regularly. Ensuring that all legislation and recommended practice is complied with. We constantly strive to remain eco-friendly by adhering to the highest international standards of
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD manufacturing, effluent treatment and by using azo-free dyes and chemicals to ensure the welfare of our consumers and the sanctity of our natural environment. The Environment:- Good environmental practice has always been a prime consideration in Bombay Rayons development, leading us to seek practical solutions to avoid the production of waste. Our business activity inevitably has an impact on the environment. We seek to minimize this impact as far as possible by operating a policy of sustainable development and constantly researching new ways to reduce pollution, wastage and the amount of resources used, while recycling as much as we can.
We view all environmental regulations and legislation as the minimum standard to be attained and strive to exceed them significantly where possible as the needs of the retail industry have changed. Bombay Rayon has worked closely with our retail partners to develop economic and environmentally friendly solutions to their waste problems.
In The Community:- We take our responsibility to contribute to the community in which we operate seriously. We make every effort to support our staff and the wider society in improving our local community. The company has always taken an active role in local communities in which it operates, supporting many worthy causes.
Bombay Rayon recognizes that its employees have an important role to play within the wider community and seeks to provide every effort to support its staff with charitable endeavors and local community initiatives. These activities have included promoting and sponsorship of individual and social activities, fund raising for hospitals and schools and coordinating with aid agencies and local authorities for projects around the nation.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Corporate Values:- We are committed to actions to restore and preserve the environment. We are committed to developing safe and clean technologies using the best environmental practices. We are committed to minimizing waste and pollutants, conserving resources, and recycling materials at every stage of the product life cycle. We will continue to work with customers and public authorities, vigorously pursuing the development, and implementation of improved technologies and products by minimizing their impact on the environment. We will develop effective methods and procedures, and will promote a culture in which all employees share this commitment.
Technology
Bombay rayon fashions limited has partnered with datatex & SAP to implement a company wide enterprise resources planning tool (ERP) to cover all textile & garmenting processes under one roof.. Datatex specializes in the textile & garment industry. Today there are over 11500 workstation using datatex ERP in 38 countries in 14 different languages. Its customers include some of the world\s largest & most important textile manufacturers. Datatex serves its international customers through its offices in Italy, Israel, the USA, Germany & Switzerland. The financial expertise will come from SAP through their SAP FKO module. The ERP will sit on state of the art IBM servers which will be housed in fully redundant in house data center in the Doddaballapur facility. BRFL plans to invest Rs 1100crore in Maharashtra for setting of fabric & garments making facilities. The company signed a memorandum of understanding with the government of Maharashtra. New facilities will come up at Tarapur,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Islampur, Ichalkaranji, Latur, Nanded, Osamabad, & Amaravati about 32000 direct & 50000 indirect jobs will be created the company has Rs 400 crore as equity capital the balance will be obtained as dedt. Which has already been tied up. Yarn dyeing & fabric processing will see an investment of Rs 450 crore each while garment manufacturing will get Rs 200 crore. Production at two of the garment plants at Osamanabad and Ichalkaranji in Maharashtra has already started the Greenfield units at Tarapur, Islampur, Latur & Nanded would raise the companys daily fabric
processing capacity by 500000 metres & garment capacity by 100000 units.
Shared Values
We are committed to give back to the society. Our employees in the factory or office are of utmost priority. We strive to provide them with a sound work environment. We are committed to actions to restore and preserve the environment. We are committed to developing safe and clean technologies using the best environmental practices. We are committed to minimizing waste and pollutants, conserving resources, and recycling materials at every stage of the product life cycle. We will continue to work with customers and public authorities, vigorously pursuing the development, and implementation of improved technologies and products by minimizing their impact on the environment. We will develop effective methods and procedures, and will promote a culture in which all employees share this commitment. In this way, we aim to have an environmental performance we can be proud of, to earn the confidence and respect of customers, shareholders, and society at large, and to contribute to sustainable development.
Balance Sheet of Bombay Rayon Fashions
------------------- in Rs. Cr. -----------------Mar '12 12 mths Mar '11 12 mths Mar '10 12 mths
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 134.60 134.60 49.31 0.00 2,797.86 0.00 2,981.77 2,869.74 364.10 3,233.84 6,215.61 Mar '12 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors 4,243.50 518.67 3,724.83 51.75 168.41 1,773.10 461.07 3,169.81 301.63 2,868.18 637.57 222.72 1,262.87 479.12 2,091.44 165.52 1,925.92 554.26 439.48 695.58 377.25 127.90 127.90 86.02 0.00 2,451.24 0.00 2,665.16 2,765.55 364.24 3,129.79 5,794.95 Mar '11 12 mths 111.90 111.90 20.27 0.00 1,797.42 0.00 1,929.59 2,146.72 333.42 2,480.14 4,409.73 Mar '10 12 mths
Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) Interpretation:-
118.48 2,352.65 1,006.15 0.00 3,358.80 0.00 1,051.33 36.85 1,088.18 2,270.62 0.00 6,215.61 21.77 217.86
7.08 1,749.07 817.46 27.84 2,594.37 0.00 478.50 49.41 527.91 2,066.46 0.00 5,794.93 91.77 201.65
3.06 1,075.89 680.88 23.02 1,779.79 0.00 267.19 22.52 289.71 1,490.08 0.00 4,409.74 158.62 170.63
From the above we can observe that total share capital of the firm is increased year to year, due to expansions of business operation in the year 2009-2011. BRF Ltd firm has to be increased outside Debt Loans to meet the Liquidity Requirements of the firm. Firm also a increase the Fixed assets and Current Assets has to be continually increases year to year.
Bombay Rayon Fashions Profit & Loss account
------------------- in Rs. Cr. ------------------Mar '12 12 mths Mar '11 12 mths Mar '10 12 mths
Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 1,771.96 70.67 230.16 5.03 0.00 246.55 0.00 2,324.37 Mar '12 12 mths Operating Profit PBDIT 732.10 746.41 1,462.63 72.05 212.80 68.27 80.59 23.22 0.00 1,919.56 Mar '11 12 mths 540.94 564.36 1,020.20 40.23 172.93 48.83 72.82 20.82 0.00 1,375.83 Mar '10 12 mths 388.99 403.20 2,737.13 2.17 2,734.96 14.31 321.51 3,070.78 2,254.84 0.00 2,254.84 23.42 205.66 2,483.92 1,614.77 0.00 1,614.77 14.21 150.05 1,779.03
Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
221.53 524.88 217.23 0.00 307.65 0.11 307.76 101.24 206.51 552.41 0.00 0.00 0.00
145.21 419.15 136.67 0.00 282.48 0.00 282.48 55.78 226.70 456.92 0.00 19.82 3.29
93.54 309.66 68.07 0.00 241.59 -0.32 241.27 65.33 175.91 355.64 0.00 16.79 2.85
1,346.00 15.34 0.00 217.86
1,279.00 17.72 15.00 201.65
1,119.00 15.72 15.00 170.63
From the above Table analyses that Profit and Loss Account showing the overall financial position of Company. The BRF Ltd showing the increasing the overall financial position of the company. Textiles industry growth trend in present scenario, also wide demanded for garments products.
RISKS AND CONCERNS

As the Company gets into the expansion mode in a competitive environment, it is bound to undertake risks as it capitalizes on several new opportunities. The Company ensures that the risks it assumes are commensurate with better returns. Economic Risk The business is substantially affected by the prevailing economic conditions in India. Factors that may adversely affect the Indian economy and in turn the business include slowdown in GDP growth, rise in interest rates, inflation, changes in tax, trade, fiscal and monetary policies, etc. However, given the estimate of at least 8% growth in the economy till 2010, rising per capita disposable income, burgeoning consumer spending, rapid change in consumer preference towards high-end, value added products and increased organized retail penetration with global majors sourcing from and setting up base in India, the Company does not expect to be significantly affected by this risk. Labour Risk This risk arises from being a labour intensive business and consequently being exposed to the vagaries of the work force. India is one of the cheapest countries in the world in terms of labour cost. Over the years, the Company has had no history of labour disputes. All of its units enjoy cordial industrial relations. Thus, the Company feels that the risk is substantially mitigated, if not completely. Fashion Risk
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD This risk arises as the Company is in the fashion business where designs have a short shelf life. BRFL has an in-house Design Unit where a team of designers come out with 5 new designs on a daily basis, based on current fashion trends in the domestic and international market. The Company has a lower lead time of 60 days in comparison to the industry average of 90 days, which for fast track delivery is even lower at 30 days. BRFLs manufacturing diversity implies that machines are compatible with a wide variety of fabrics including cotton, nylon, polyester, linen and blends, thus always retaining full capacity. This hedges against changing trends in fashion. BRFL also works closely with its customers. Thus, the Company believes it has sufficient mitigation in place.
Currency Risk This risk arises from the exposure to foreign currency and the volatility associated with the underlying currencies. The Company follows the normal prudence of hedging it receivables. Short order lead times also protect the Company from the effects of currency fluctuations. Further, BRFL is working towards reducing contract cycles as well as the cost of production. Simultaneously, the Company is entering into forward contracts and increasing prices and raw material imports as measures to mitigate currency risk.
Competition Risk This risk arises from more players wanting a share in the same pie. The textile and apparel industry in India is growing at a fast pace. With the phase-out of the quota system since 1st January 2011 and the incentives given by the
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Government, the industry has become even more competitive. BRFL has generated considerable brand goodwill in the market. The Companys significant market share, long-term relationships with clients, high productivity, low labour costs, short lead time, manufacturing flexibility, in-house Design Unit and experienced management team give BRFL a considerable edge over its peers. Significance expansion of capacities is also in the pipeline. The Company is also moving up the value chain by offering higher value added products, thus differentiating itself from its competition. Hence, BRFL believes that this risk is sufficiently mitigated.
Concentration Risk This risk arises from excessive dependence on any customer or segment for business. The Companys client base consists of garment manufacturers, retailers and dealers in the domestic market as well as reputed international buying houses and retailers in the overseas market. No buyer accounts for more than 10% of the Companys sales. Besides, BRFLs multi-market, multi segment presence mitigates the risk of downturn in demand from any particular market or segment. Thus, the Company does not expect to be significantly affected by this risk. Concerns like shortage of skilled manpower and technological obsolescence remain. However, these are threats faced by the entire industry. With superior methodologies and innovative processes and systems, the Company is well positioned to lead a high growth path. Internal control systems and their adequacies The Companys well defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD compliance with internal policies and applicable laws and regulations as well as protection of resources. Moreover, the Company continuously upgrades these systems in line with the best available practices. The internal control system is supplemented by extensive internal audits, regular reviews by management and standard policies and guidelines to ensure reliability of financial and all other records to prepare financial statements and other data. 8. Discussion on financial performance Material developments in human resources Human resources are an integral and important part of any organization. One of the key pillars of the Companys success has been its people. BRFL has always recognized the importance of human capital and valued it highly. The Company has put in place sound policies for the growth and progress of its employees. Lot of emphasis and efforts are made to create a working environment that will encourage innovation, enhance work satisfaction and build a merit driven organization. The Companys human resource vision is to create a committed workforce through people enabling processes and knowledge sharing practices based upon its value system. As on 31st March 2008, BRFL consolidated had 24,233 employees on its payrolls.
Cautionary statement Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD demand/supply and price conditions in the domestic and overseas markets in which the Company operates changes in Government regulations, tax laws, statute and other incidental factors.
Chapter-4 Vision, mission and Objectives

Vision:To be a Complete Fashion Apparel Company focused on Total Customer Orientation, attaining a Position of Pride for stakeholders through creation of Congenial Business Environment, offering Products and Services Par Excellence. Mission:1. Enhancing our design capabilities enables us to present our own collections and offer a total package solution to the customer 2. To rapidly expand garment capacity to meet the growing opportunity in the market place and in the process actively consume 30-50% of our own production of fabrics. 3. Position ourselves in the mid to high end garment segment such that we enhance our acceptance and improve our capabilities to meet the stringent. 4. Compliances stipulated by such customers once this is achieved, entering the commodity market would pose little difficulty.
Objectives Our corporate VISION is to be a complete apparel company. We have three pronged strategy to realize our vision. To be the-

Most innovative - sought after Fashion Apparel and Fabrics Manufacturer. Most dependable for shortest turnaround time. Most reliable for quality, service and deliveries. Most permanently bonded with customers, suppliers and other stake holders. Most valued employer. Most looked up to for transparency, governance and social responsibility. To strengthen our fabric business in order to have full control of entire fabric supply. Chain- from yarn dyeing, weaving to processing of fabrics. We intend to achieve this through implementation of new project facilities. This would not only help us achieve total qualit5y control at each stage, it would enable us to cut out delays in delivery of fabrics to our garment units.
Our competitive Strengths 1. Experience of our promoters 2. Flexibility in manufacture of garments 3. Designing capabilities 4. Lower turnaround time 5. Low labour cost 6. Economies of sale 7. High productivity 8. Quality assurance

9. Sampling capabilities
Quality Assurance:Internal quality control management systems and quality improvement systems exist in all our plants. Quality audit teams review all aspects of quality assurance at all of our units. Additionally, a dedicated in-house management team oversees our implementation and adherence to stringent quality control policies across all of our manufacturing facilities. Our quality assurance measures include: standard operating procedures at each of our garmenting units to make them quality compliant;
Statistical methods to identify and analyse areas of needed improvement; A team of qualified and experienced professionals to manage quality control for the entire manufacturing process, from the receipt of fabric to the dispatch of garments; and Compiling databases for future reference and analysis. Each of our divisions is equipped with modern quality equipment to test for quality assurance and functions in accordance with our philosophy of providing quality products to our customers.
SWOT ANALYSIS
Strength SWOT ANALYSIS Oppurtunity
Weakness
Threats
Strengths
Self reliant industry producing the entire supply chain from fiber/cotton to garments/home textiles Large and growing domestic market Second-largest textile producer in the world Adequate raw material supplies Low labour cost and availability of skilled and Technical labour force Excellence in fabric and garment designing.
Weakness Small size and technologically outdated plants result in lack of economies of scale, low productivity and weak quality control Cotton availability is vulnerable to erratic monsoons and low per hectare yield With the exception of spinning, other sectors are fragmented
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD Labour laws and policies lack reforms Infrastructure bottlenecks for handling large volumes
Opportunities
End of quota system and full integration of the textile industry. Shift in domestic market towards readymade garments, and domestic textile consumption increasing with growing disposable incomes.
Threats Survival of the fittest-in terms of quality, size, delivery and cost Pricing pressures Stiff competition from other Asian countries Increase in regional trade could reduce share of markets opened for India, China and other countries.
FINDINGS: The production of Garments has seen tremendous fluctuations over the period and increased only during 2011-2012 and dropped off marginally in the subsequent year. There has been steady increase in the sales of BRF Ltd by the company over the period of study which is just satisfactory. It is found that number of direct labour employees has increased in 3years in both production houses. The BEP stands at (1.43%) level as of now and meets improvisation in the future. In comparison it production levels the BEP seems to be very moderate for maximization of the returns for the company this has to increase accordingly. On the expenses front both the variable and fixed cost have increased at levels higher than production a need better control. The profit on sales is stable except during the second year. Growth refers to continuous increase in profits also which is not the present case. All rejected materials will be sent back to the vendors within one week from the date of purchase. It is observed that transfer of price is based on the cost price
SUGGESTIONS: The company should put in best efforts to increase production at a better rate when compared to the present. The increase in sales needs to be substantial and not just minimal which the case with the company as now is. A higher increase in the sales would better the companys prospects of contributing towards the profit. BEP being dependent on variable cost and fixed cost needs a better control so that the BEP can be improvised upon for the growth of the company. Different costing methods and techniques have to be adopted to check the growing costs to improve the contribution for the company. Efforts have to be put in by the company to enhance profits every year continuously by bringing down costs, increase in production as well as sales. If the company is looking at the prospect of increasing its efficiency, it has to increase the production and implement various core control methods and techniques. In fierce competitive environment it has to put all resources to optimal usage to get the maximum profits.
CONCLUSIONS
BRFL is an established organization. All the workers in the organization are ground proud of the fact that, they are serving the number one company in the world of garments production. The main strength of the company is the manpower and the positive image which they have towards the company. The employees in BRFL are dedicated and determined in their job. They are actively participating with the management to achieve the companys goal. The employees have got such a positive image towards the organization, its because the company takes due consideration for the Human Resources. BRFL Company Ltd. Is trying its best to make its employees happy, by providing to make its employees happy, by providing statutory and non-statutory welfare facilities because the company believes that Productivity of an organization depends upon the people who work in the unit. Management should create awareness among the employees regarding the expenditure incurred on welfare facilities because most of the employees are not aware of it, most of the employees have also agreed that, they are ready to share a portion of expenditure with the management, increase of the management introduces new welfare facilities. This study mainly focuses on the importance of work environment and its significances in the development of an organization and some important aspects to the organization to maintain better work environment in an organization.

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A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

CHAPTER-1 INDUSTRY PROFILE

Overview of Global Textile Industry

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD FABRIC

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Awards and Achievement:-

MILESTONES OF THE BRFL

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Management Pattern by Bombay Rayon

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Opening of overseas offices

Our Distribution channels

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Products/market segments Fabrics-Domestic sale

Distribution channel BRFL-Marketing agents/wholesalers/Garment

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Work flow Model Longitudinal Cutting

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Future Prospects Of The Company

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

CHAPTER 3 ORGANISATIONAL REVIEW

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Manager Boiler Operators Chemical Store Helper Helpers

Operators Supervisors QC operators Helpers Helpers

Pattern master In charge

Assistants Runner Helpers.

cutters Nurse CAD

Designer Assistant Designer Dispatch

Dispatch Runner Framers

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD HR structure of the company

WELFARE OFFICER HR-EXECUTIVE

Health and Safety

Initiatives i. Social initiatives:-

Discipline: No corporal punishment, mental or physical coercion or verbal abuse

processing capacity by 500000 metres & garment capacity by 100000 units.

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Balance Sheet of Bombay Rayon Fashions

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Bombay Rayon Fashions Profit & Loss account

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

1,346.00 15.34 0.00 217.86

1,279.00 17.72 15.00 201.65

1,119.00 15.72 15.00 170.63

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

RISKS AND CONCERNS

Chapter-4 Vision, mission and Objectives

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

Strength SWOT ANALYSIS Oppurtunity

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD

A PROJECT REPORT ON BOMBAY RAYON FASHION LTD