ORIENTAL INSTITUTE OF MANAGEMENT

A Summer Internship Project Report on

Submitted by: NILESH PANDEY MMS Batch 2012-14 Under the guidance of Mr. Sachin Sodani (C.A.) (Accounts Department) RSWM Limited Faculty Guide (Prof. Ankita Srivastava)

DECLARATION I hereby declare that the project work entitled RE-EMERGENCE OF TEXTILE INDUSTRY AFTER RECESSION submitted to Oriental Institute of Management, Vashi, Mumbai-4000703 is a record of an original work done by me under the guidance of Mr. Sachin Sodaniand this project work is submitted as a Part of my Research Work Done During my Summer Internship. The results embodied in this report have not been submitted to any other University or by any other Student.

Nilesh Pandey

CERTIFICATE This is to certify that Mr. ANKIT Nilesh Pandey student of second year Masters of Management Studies (MMS) of Oriental Institute of Management Studies has successfully completed the project work titled RE-EMERGENCE OF TEXTILE INDUSTRY, AFTER RECESSION This project is the record of authentic work carried out during the academic year 2012-2013.

Date: _________________

Prof. Ankita Srivastava (Internal Project Guide)

Prof. Dr. P.K. Bandgar Director Oriental Institute of Management

ACKNOWLEDGEMENT It gives me pleasure to present this project report, which is an outcome of the study RE-EMERGENCE OF TEXTILE INDUSTRYAFTER RECESSION . for RSWM Ltd. Completing a task is a never a one-man effort. It is often the result of valuable contribution of a number of individuals in a direct or indirect manner that helps on shaping and achieving an objective. I wish to express my sincere gratitude to innumerable number of people who have been associated with me throughout this project. I feel blessed to have the opportunity of expressing my hearty gratitude to the following personalities, without the help of whom my project could not have been hatched. Source of firstly I would like to acknowledge my sincere thanks to Mr. Sachin Sodani (Accounts Department), Angel Broking Mumbai who gave me an opportunity to carry out this project and had been a constant inspiration I am grateful to my faculty guide Prof. Ankita Srivastava (Faculty at Oriental Institute of Management) for the Summer Internship Project, for their regular guidance without which my project report would not have been completed. I am also thankful to the other staff member of Angel Broking ltd. for their continuous motivation throughout this program, which really helped me in completing this project. I have no words to express my indebtness for the ungrudging and unfailing co-operation of my parents. Finally I want to thank all the friends, colleagues for their constant co-operation, encouragement, help and support throughout the study without which this work would not have been possible. Ankit Singh.

TABLE OF CONTENTS Sr.No. 1 1.1 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 4.0 5.0 6.0 Contents Executive Summary Industry Profile Company Profile Background and Inception of the Company Nature of the Business Carried Vision, Mission and Company Policy Products And Services Area of Operations Ownership Pattern Competitors Information Achievements and Awards WorkFlow Model Mckinseys 7S Frame Work SWOT Analysis Analysis of Financial Information Learning Information PART B Pg. No

EXECUTIVE SUMMARY Rajasthan Spinning & Weaving Mills Limited (RSWM) is the core business company of L.N.J Bhilwara group. RSWM is a major producer of blended yarns & specialty fabrics. It produces different variants of blended yarns like P/V, P/C, cotton and mlange. The primary objective of this project was to study re-emergence of textile industry after recession and its impact on RSWM Limited. The finding of the study reveals that when economic activities across the world have declined sharply, driven by the decline in
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consumption and exports. In the past few years, around half of the total production of textiles and garments in India has been exported; 60% of it to markets in the US, Japan and the European Unions. The recession in the West had adversely impacted the Indian textile industry. Due to low demand, competition, steep forex fluctuation, high cotton procurement prices, high interest rates resulted in high cash flow outside. So despite rise in turnover there has been decline in the companies financial performance during 2008-2009, the highlights are: Net revenues from operations increased to Rs.1, 293Cr (20080-2009) from 1168Cr (2007-2008). Operating profit declined from 121.6 to 77 Cr in 2008-2009. Financial expenses increased from 43.8 to 68 Cr. Rs.

Another, important findings is that in spite of RSWM product being slightly costlier than the industry rates, the clients do not mind paying this premium ,because of the superlative quality of the products and services. RSWM is a preferred supplier over its competitors as the clients perceive the organization as being highly reliable, passionate about its service the personnel practice excellence as a core value. RSWM follows Market Differentiation Strategy where the clients are retained over a period of years because of superior Quality of products & the brand name of the company. The pre and post sales services of RSWM both are perceived as above average by most of the clients. The maximum revenues are generated from sales of p/v & p/c yarns. PART A Industry Profile: PROFILE OF TEXTILE INDUSTRY 1.1 Historical Background

The Indian textile industry has a great legacy, which is perhaps unmatched in the history of Indias industrial development. Indias textile industry evolved and developed at a very early stage and its manufacturing technology was amongst the best. Prior to colonization, Indias manually operated textile machines were among the best in the world, and served as a model for production of the first textile machines in newly industrialized Britain and Germany. Indian textiles were sought after for their finesse, quality and design. According to ChoutaKuan, the Chinese observer preference was given to the Indian weaving for its and delicacy Prestige trade textiles such as Patola from Patna and Ahmedabad, coast were sought after by the Malaysian royalty and wealthy traders of the Philippines. Textiles have historically formed an important component of Indias exports. Marco Polos records show that Indian textiles used to be exported to China and South-East Asia. Textiles have also comprised a significant portion of the Portuguese trade with India. These included embroidered bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground. The attractiveness of the fast dyed, multi-colored Indian prints on cotton (chintz) in Europe led to the formation of the London East India Company in 1600, followed by Dutch and French counterparts. By the late 1600s there was overwhelming demand for their governments to ban the import of these cottons from India. The legacy of the Indian textile industry stemmed from its wealth in natural resources silk, cotton and jute. The textile industry stemmed from its wealth in natural resources silk, cotton and jute, the technology used was superior and the skills of the weavers gave the finished product a most beautiful and ethnic look. The Indian textile industry with such a great pedigree could have gone only on way from here. But same did not happen.

COMPANYS PROFILE ABOUT COMPANY:

it was founded by Mr. Laxmi Niwas Jhunjhunwala (LNJ) in 1961.LNJ Bhilwara group has emerged as one of Indias leading corporate houses, in last four decades. Core business companies: LNJ Group is a multi product conglomerate with a global presence and with business interests spanning a diverse range of industries like:

Textiles:

Power Generation:

Graphite-Electrodes:

Information-Technology and IT enabled services

Sponge-Iron.

The Group has successfully integrated its operations into todays Global Economy, with export earnings compromising over 46% of total revenues with over 20,000 employees and 17 production units strategically across the country.

LNJB as a Brand: LNJB group holds leadership in textile industry .it `s popular Brand in the market are Mayur Suiting,

BSL Suiting

La Italia Fashions, Geoffrey Hammond superfine suiting, Buddy Davis Leisurewear.

The pioneering textile industry of the group is not only a key player in the industry but also has many first to its credit. The textile division has the sole distinction of producing a unique fire retardant yarn called Trevira CS (now known as Len zing, Austria).it is also the sole licensee for the highly specialized yarn called Tencel. The group has been acknowledged for its world class quality products. Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS / ISO 9001 : 2000 certification for setting exemplary standards in quality. Background and Inception of the Company Rajasthan Spinning and Weaving Mills (RSWML) was incorporated in 1960. It was promoted by the Bhilwara group which has interests in various group companies. The
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company is managed by Chairman L N Jhunjhunwala and Vice-Chairman and Managing Director Shekhar Agarwal. RSWML came out with a Rs 157 cr Euro-issue in 1994 to finance its ambitious plans to increase spindleage by 18,800, add 24 looms at each of the units and to set up a process house at its Banswara unit with a capacity of processing 156 lac mtr of fabric pa. The product-mix of the company includes blends like polyester/viscose, 100% viscose, 100% polyester, polyester sewing threads, 100% acrylic, polynosic blends, silk blends, viscose/flax, polyester/cotton, 100% cotton melange yarn. In 1993-94, it signed a MoU with Hydro Quebec International, Canada, to implement 86 MW Malana and 192 MW Allain Duhangan projects in Himachal Pradesh. It markets its products under the well-known Mayur brand in India and exports its products to the European and the US markets. It has opened marketing offices in Italy, Belgium and the UK. During 1997-98, Bhilwara Melba De Witte Ltd, a joint venture project promoted by the company with Australian and Belgian partners, has established its leadership in the market for automotive furnishing fabric. In 1998-99, it increased the installed capacity of spindles and looms to 1,31,376 nos and 157 nos respectively and commissioned 4.2 MW each of power plant for captive consumption. Term loan upto Rs. 24 crores has been sanctioned from PNB for Yarn Dyeing project at Mandpam,Looms at Gulabpura and the modernisation scheme has already commenced. The Board of the company has approved for acquiring Rishabhdev Textile Mills unit of HEG Ltd and it was acquired with effect from 01.04.2003. The 2.8 MW at Mandpam at cost of Rs. 10.00 crores was installed in 2002-03 and operations has commenced during the year itself.

RSWM is an IS/ISO 9001:2001 and SA-8000:2008 accredited Company, which moved from strength to strength and today, the largest manufacturer and exporter of synthetic spun yarns from India. RSWM has built one of the most impressive textile manufacturing infrastructures in the country: 8 state-of-the-art manufacturing plants; 4,10,000 spindles; 190 looms; 1,20,000 MTA yarn capacity; 30 MMA fabric capacities, including denim fabric. The Company also owns a fabric process house at Mordi (Rajasthan). RSWM is self-reliant in captive power generation of 46 MW that feeds to its integrated units spread across the state of Rajasthan, located at Kharigram, Banswara, Mordi, Mandpam, Rishabhdev and Ringas. The main competitive strength of the Company is its innovative product range that includes specialty, functional and technical yarns and fabrics. The Company recently has shifted its
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focus to produce more and more eco-friendly and natural textiles in order to meet the emerging needs of the market. RSWM exports its range of yarn and fabric to over 73 countries worldwide. The Company holds the prestigious Golden Trading House status and, has received Export Awards from the Synthetic and Rayon Textiles Export Promotion Council for several years. The Company is a recipient of the Rajiv Gandhi National Quality Award received twice from the Bureau of Indian Standards and many more quality certifications. One of the leading brand from RSWM, `Mayur Suitings, enjoys high brand equity in its target segment in the country. Nature of Business 1. To carry on the business of manufacturing, buying, selling, importing, exporting and

dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester, worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or merchandise whether textile felted, netted or looped. 2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,

stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated fabrics, textiles, hosiery and silk or merchandise of every kind and description and other production goods, articles and things as are made from or with cotton, nylon, silk, polyester, acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any process, whether natural or artificial and by mechanical or other means and all other such products of allied nature made thereof.

Vision of the Company

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Our Vision is to forge Ahead into the New Millennium with an Immediate sense of Purpose and to be Seen as a Undisputed Leader, fully occupied to deliver the best.

Business Philosophy

Ethical practices & transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management Quality Assurance Policy

We are committed to being the leader in providing World Class Product & Services which exceed the expectations of our customers Achieved by teamwork and a process of continuous improvement CRM Policy A Customer is the most important visitor on our premises. He is not dependent on us but we are dependent on him. He is not interruption in our work, but is the Purpose of it. We are not doing him a favour by serving. He is doing us a favour by giving us an opportunity to do so

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Products and Services of RSWM LTD.

RSWM offers one of the broadest range of products in terms of fibre blends, counts and shades. Fibres possessed by the Company include polyester, viscose, acrylic, cotton, wool, rayon, silk, polyamide and linen. In addition the Company produces a range of speciality products made out of both unorthodox fibres i.e. soya, protin, bamboo, and branded fibres such as tencel and lycra

RSWM manufactures a range of blended suiting fabric and has a significant presence in the domestic market with its Mayur brand. Apart from this, this segment includes a fabric processing plant in Mordi (Rajasthan). The Company believes that there is a huge potential for this business in the new market scenario and has plan to stratigecally move to the higher value added products in fabric.

RSWM ventured into Denim Fabric manufacturing business in line with strategy to move to higher value-added segments for wider based growth in the future. The Company has plant to focus on producing high-end Speciality Denim fabric which has better realization and demand in the international market. Keeping pace with the changing time, the company is working closely with leading International Consultants to manufacture the finest products.

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Area of Operation of RSWM Ltd. 1. To carry on the business of manufacturing, buying, selling, importing, exporting and

dealing in textiles, cotton, silk, art silk, rayon, nylon, synthetic fibers, staple fibers, polyester, worsted, wool, hemp and other fibre materials, yarn, cloth, linen, rayon and other goods or merchandise whether textile felted, netted or looped. 2. To carry on the business of importers, exporters, buyers, sellers, dealers and as agents,

stockists, distributors and suppliers of all kinds of ready made garments, coverings, coated fabrics, textiles, hosiery and silk or merchandise of every kind and description and other production goods, articles and things as are made from or with cotton, nylon, silk, polyester, acrylics, wool, jute and other such kinds of fiber by whatever name called or made under any process, whether natural or artificial and by mechanical or other means and all other such products of allied nature made thereof The Shareholding Pattern of the Company as on 31st December 2012 is as Follows:

Shareholding Pattern - RSWM Ltd.

Holder's Name Promoters GeneralPublic ForeignPromoter OtherCompanies NBanksMutualFunds FinancialInstitutions Others CentralGovt ForeignInstitutions

No of Shares 6971884 5866402 4934770 2898120 1661008 769953 44720 1732 100

% Share Holding 30.12% 25.34% 21.32% 12.52% 7.18% 3.33% 0.19% 0.01% 0%

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Competitors Information: Major Players in the Region Raymonds Reliance textiles GokaldasShari exports Arvind mills K. Mohan exports and BSL limited. Achievements and Awards The coveted ISO 9001-2000 Quality Management System Certification was received in January 1997, which speaks volumes about the Company's. RSWM is the winner of SRTEPC Highest Export Award for polyester / viscose yarn exports for the last 13 years RSWM bagged The 2007 Excellence Award for Financial Performance and Analysis instituted by Rajasthan Chamber of Commerce & Industries, Jaipur RSWMs Rishabhdev unit bagged National Export Award, and the SRTEPC Excellence award for highest production in export of 100% Polyester Spun Yarn An advanced machinery repertoire from world leaders, ensures flawless quality and more versatility at each and every stage. Rajiv Gandhi National Quality Awards Commendation certificate in Large Scale Textile Industry to Banswara and Kharigram unit in year 2006 and year 2007 respectively. Our Banswara plant certified for producing and selling Organic Cotton yarn from "Control Union Certification" (formerly known as SKAL) Certificate of "Global Organic Textile Standard" (GOTS) for producing and selling 100% Organic Cotton yarn to our Banswara plant. Certificate of "Organic Exchange" (OE)for producing and selling Blended yarns with Organic Cotton to our Banswara plant. Certificate of SA-8000 speaks that all the material produced by the RSWM Ltd. by respecting the environment and ethical values for our Banswara unit.
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Certificate of Fair Trade from Fair Trade Labelling Organisation for producing selling 100% Fair trade cotton and its Blended yarn, for Banswara unit. Certificate of Global recycle standards (GRS) for producing selling the recycled cotton and Blended yarn with and without recycled man made fibers. Having Oekotex standard 100 certiifcate for most of the products

WOKFLOW MODEL Buyer visits chooses and place a order Quality and quantity check of fabric

Laying& cutting

Samples checked and sent to buyers for approval

Appro v -ed

NO

Suggested corrections incorporated; samples resubmitted if buyer insists

Marking and numbering

YES Buyer places order for his requirement

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Sorting ,Sewing and Ironing Collection of fabric/accessories from ware house /main stores/receive from supplier Tagging, labeling, Final checking

Pre production sample approval

Packing and Dispatch

The workflow model of RSWM Ltd.limited starts with the buyers intent to visit the showroom and places order and the approval for the same order is done through pre production approval. The collection of fabric against the material requisition slip and quality and quantity check of fabric is done at fabric department. Once the material is checked it passes to various departments which consist of inline quality assessment .Finally the finished products are checked and packed in the package department for order delivery and the same will be passed into warehouse.

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3. Mckensys7s frame work with special reference to organization under study McKinseys 7S Framework: The 7-s frame work of Mc-kensy`s is a management model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of the factors to be sure of successful implementation of a strategy- large or small. They are all independent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. On top of that, the relative importance of each factor may vary over time.

Those seven elements are distinguished in so called hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The 3s across top of the model are described as Hard Ss Strategy: Thy direction and scope of the company over the long term. Structure: The basic organization of the company, its departments, reporting lines, areas of expertise and responsibility.
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Systems: formal and informal procedures that govern everyday activities covering everything from management information systems, through to the systems at the point of contact with the customer The 4s across the bottom of the model are less tangible and more cultured and were termed as soft Ss by Mc-Kensey Skills: the capabilities and competencies that exist within the company what it does best. Shared values: the values and beliefs of the company ultimately they guide employees towards valued behavior Staff: the people resources and how they are developed trained and motivated. Style: the leadership approach of top management and the companys overall operating approach.

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SRUCTURE: Board of directors

Director Sourcing and development

DirectorMarketing& Imports

Director(Gen., admin,finance &logistics)

Director Marketing

Director Production

Manager internal audit

Manager sampling production

Manager-LC payments& cargo clearance

Head of dept: Personnel

IT Manager s

Various departmen ts.

Asst. manager network admin

System analyst

Network admin

EDP assistants

Programmers

Support staff

Purchase

Production Directors(sourcing manager(accessories) Coordinators and Development)

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Quality control managers

Assistants F1

Manufacturing F2A units F2B

Quality controllers F3 F4

Manager(sourcing and Development)

Purchase manager Fabric

Manager fabric godown

Manager sampling

Manager sampling godown

Laboratory assistant

Purchase manager fabric

Fabric inspector

Merchandisers

Assistants

Godown assistants

STRUCTURE: Business needs to be organized in a specific form of shape that is generally referred to as organizational structure. Organizations are structured in a variety of ways, dependent on their objectives and culture. The structure of the company often dictates the way it operates and performs. Traditionally, the businesses have been structured in a hierarchical way with several divisions and departments, each responsible for a specific task such as human resources management, production or marketing. Many layers of management controlled the operations, with each answerable to the upper layer of management. VARIOUS DEPARTMENTS: This is to know that the function of Gokaldas exports limited control has been clubbed for the following department. 1. Marketing department 2. Finance department 3. Personnel department 4. Planning and control department

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5. Production department A) Merchandising department B) Sampling department C) CAD department D) Cutting department E) Sewing department F) Quality department G) Finishing department H) Packaging department

MARKETING DEPARTMENT: Products are well accepted in India as well as foreign markets and focusing more clearly on the future to ensure long growth and leaping towards market leadership. The objective of all economic activities is for the satisfaction of human needs. Marketing is a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives. Functions of marketing department: 1) Analyze various market opportunities and threats. 2) Collect marketing information and anticipate to the demand. 3) Scan the marketing environment 4) Develop market richer strategies. 5) Sales promotion through advertising and maintain good public relations. ACCOUNTS DEPARTMENT:
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The department is playing vital role by providing and maintaining the entire details of each and every financial activities of the company. Functions: 1) To provide accurate and complete systematic information of financial activities. 2) To maintain all the books of accounts and other financial documents. 3) To prepare periodic financial statements of the company like P&L Account and Balance sheet. PERSONAL DEPARTMENT: It is a branch of personal department (HRD). Time office is a key to personnel office. It maintains the arrival and departure time of all the staff members including managerial staffs. The workers are also requiring signing in the attendance register to avoid the mis -representation or escaping trick of workers while going out of the department. The time office sends these records to the personnel department. This records will help in wage fixation, salary fixation, granting of leave and allowances to workers. Salary administration: There are skilled, semi-skilled and un -skilled workers in the organization and they are pay according to ability and qualification and with consideration of government regulation. Attendance: The department records the time (i.e., the time of workers in and out of the company) through punch card system write at the entrance by the time officer. Employees data: The personnel department keeps the records of employees. Policies of HR department: Child labor free:

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No child labor is engaged in any our unit, as they give more importance during childhood. They motivate on compulsory education for children. Involuntary labor: They will not use any forced or involuntary labor, whether prison, bonded, indentured or otherwise Coercion and harassment: In Gokaldas exports limited , they treat each employee with dignity and respect as among their own family members , and will not use corporal punishment, threat of violence or other forms of physical, sexual, Psychological or verbal harassment or abuse. ESI and PF benefits: All their employees of Gokaldas exports limited are covered under ESI and PF benefits, as a part of social responsibilities. Non discrimination: Gokaldas exports limited will not discriminate in hiring employment practices, including salary, benefits, advancement, discipline, termination or retirement, on the basis of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, political opinion or disability. Association: GEL will respect the rights of employee to associate, organize and bargain collectively in a lawful and peaceful manner, without penalty or interface. Health and safety: GEL provide employees with a safety and healthy work place in compliance with all applicable laws and regulations, ensuring at a minimum reasonable access to purifier water and sanitation facility, Electric shock preventer with the help of an automatic tripping switch system, lightening the protector with adequate lightening and ventilation. PLANNING AND CONTROLLING DEPARTMENT

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In co-ordinates and arranges for preventive and break down maintenance of machinery and equipment. It identifies the needs of the training people at all levels of production planning and control department and communications to management and information system and training department. The monthly machine shop requirement is worked out referring to procedure plan the plan for material indent is done considering the following points. 1. Stock of components 2. Pending purchase order and indents as on the day FUNCTIONS OF PPC 1. To organize material procurement, production, planning and periodic review with all concerned heads. To plan for man power and equipment for production and control purposes. To plan and organize the layouts of RPD and assembly for effective operations. 2. To co-ordinate and arrange for the prevention, break down and maintenance of machinery and equipment. Conducting periodic meetings for continual improvements in quality of products by giving guide lines at needed stages and finding out the requirements for training and functional improvements for performance enhancement of workers. Conducting design review meetings, non-conformance reviews meetings, customer complaints meeting and quality audits for finding out solutions. 3. Keeping track of material requirements bases on various work order and inspecting and controlling the flow of incoming materials, rejections and updating the records. To give drawing requirements to design and development department and follow up. PRODUCTION DEPARTMENT: A) MERCHANDISING Merchandising department is one of the most important departments of any garment industry, because it functions for getting orders from buyers. This department works as a link between buyer and manufacturer. They convey what the entire buyer expects from manufacturer. This department plays a main role as communicator. B) SAMPLING
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Before actually making any samples, it is required to develop the patterns for it. The pattern masters at GEL were equipped with expertise in the pattern making, evident by the fact that they never required any mannequins for developing the patterns as per the measurements sent by the buyer. C) CAD The best fit sample which has been approved by the buyer comes to the CAD department; here GEL uses the Electra system. With the help of the digitizer the pattern is designed. Than the minor adjustments which have to be made using Electra system. C) CUTTING Cutting room is one of the core areas in any garment organization. As a unit cutting room has a greater effect on excessive manufacturing cost than any other department concerned with the actual production of garments. D) MATERIALS FROM STORE According to the schedule fabric comes from store department to cutting department. Fabric is issued in accordance with the style type, designated with a number, which is different for different garments. E) PATTERN PLACEMNT The final step in the spreading is placing the marker on the lay. After the fabric is relaxed, the marker planner is provided by the cad department, which mentions the lay width and length and number of lays, efficiency, pattern placement and number of patterns. F) SEWING The heart of garment unit is the department where the actual production takes place: sewing department which is divided into batches. The sewing department has two quality inspection wings. 1. In line checking 2. End line inspection H) FINISHING
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Finishing process is to check the garment for any defect and make them appealing through pressing. Garments are checked according to quality system approved by a particular buyer. I) PACKAGING:

The finished garments are packed in the cartons as per the packing plan. Each carton has specified number of garments and the quantity can neither be increased nor be decreased after it is planned. SYSTEM: Every organization has some systems or internal processes to support and implement the strategy and run day-to-day affairs. For example, a company may follow a particular process for recruitment. These processes are normally strictly followed and are designed to achieve maximum effectiveness. Traditionally the organizations have been following a bureaucraticstyle process model where most decisions are taken at the higher management level and there are various and sometimes unnecessary requirements for a specific decision (e.g. procurement of daily use goods) to be taken. Increasingly, the organizations are simplifying and modernizing their process by innovation and use of new technology to make the decision-making process quicker. Quality monitoring system: Pre-production check: Risks are reduced by checking material components, accessories/ user manuals etc. at this stage itself. Fabric inspection: The fabric is received from the warehouse whenever its required and it is checked for the 100% quantity and 10% quality. The 10% 0f the total fabric received is checked for the quality using Fabric inspection machine based on four points system. The fabric is also checked for the shrinkage after it has been send for washing (Dry wash, enzyme wash and chemical wash) Initial production check:

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First finished projects are checked against buyers specification and prototype sample. Deviations are identified and brought out for correction. During production check: Inspection during production carried out to check and verify that the initial discrepancies have been rectified and to ensure that the average quality standard of production runs Inline pre-final& final inspection: Final random inspection is carried out when the total consignment is packed and ready for shipment. FRI is performed according to the International Inspection Standards. The detailed physical inspection of the samples selected at random is based on specifications of the buyers and it cover the criteria such as design/style, shrinkage, accessories, appearance, markings, colour, labeling, material, assortments, workmanship, measurements and packing etc., 7S AS APPLIED TO RSWM Ltd. 1. STRATEGY: Their duties of being textile major RSWM ltd which has been recently going through a bad patch owing to reducing exports and falling margins is undertaking a business transformation in a bid to become a billion dollar company. The second criteria is Arvind ltd is now giving more focus to brands and retail which until now contributes 19% of total revenue. It will also move to become an integrated textile player by producing fabric as well as retailing it. Major emphasis would be on the value store format Mega Mart which is targeted to achieve Rs 1000crore sales in 3yrs. Other than that Gokaldas exports plans to set up more formats by 2012. The strategy may work out to be rewarding for the company as it has a good portfolio of domestic and international, and has been a national player the move also helps it toward off any risk it faces from the recession in exports markets. 2. STRUCTURE: Gokaldas exports has adopted an organizational structure called the "Strategic Business Unit structure" Under this structure, a company groups under one business unit, distinct product groups comprise product groups targeted for distinct market segments and using distinctive technologies in the manufacturing process. A company puts each business unit under the command of a different person. The person heading a business unit is responsible for the

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effective and efficient operation of the unit. This pattern of organization allows the company to concentrate its energies on all the important business. 3. SYSTEMS: All the systems used in the company, to get things done, also needed change to keep pace with the changes in strategy and structure. These systems comprise performance appraisal and counseling systems, compensation systems, other planning and monitoring systems. We have thoroughly revamped all these systems to meet the new organizational demands. 4. SKILLS: Company is good at the designs of apparel which go along with the recent trend it has passionate young fashion designers with innovative skills who intend to give healthy competition 5. SHARED VALUES: Shared values refer to the same guiding values amongst the employees. It explains what does the organization stand for and what it believes in. Its central beliefs and attitudes. It explains the vision, mission and goals of the company. 6. STAFF: They follow different methods for recruiting the staff and workers. Telephonic Interview is followed for staff followed by meeting the heads of the branch. They follow a unique method to recruit the workers. The production heads visit villages and motivate them to join and so there is no process which the workers have to undergo. Motivation may find a way by providing transportation facilities and frequent hikes. 7. STYLE: There the leadership journey starts with setting a clear direction, gaining commitment and aligning people, and ensuring passion driven execution in Gokaldas exports mills operations 4. SWOT ANALYSIS OF RSWM : Strength RSWM is pioneer Company of LNJ Bhilwara Group which is largest Exporter of Polyester / Viscose Yarn. RSWM Products are known as Quality products and bagged the premier in comparison of competitors product.
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Its fabric is marketed with the well-known brand name of MAYUR. Textiles future better after opening of Quotas. RSWM accorded with certificate of IS/ISO 9001:2000 and weighted for quality commitment. Time To Time Expansion & modernization of plants. Availability of highly trained manpower in both, management and technical

Weakness Competition with the local process house/independent loom units in piece dyed suiting qualities in view of their lower administering and other cost continuous product development will enable to compete with them. RSWM is not able to compete with Bhilwara local market with the reference of Trading Channel. Opportunity Threats Opening of Import and Duty Reduction in the Country. Increase trend of readymade garments and fashion fabric viz. Cotton fabrics as against individually stitching change. 5. Analysis of Financial statement
Profit loss account
(Rs crore) Mar ' 13 Income Operating income 2,453.29 1,987.00 1,950.59 1,530.77 1,292.55 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

RSWM has well known establish arrangement to sell its Yarn all over the world and worldwide. Having vision to penetrate in the Readymade market. Entering into the Thermal Power Project. Export to USA.

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Mar ' 13

Mar ' 12

Mar ' 11

Mar ' 10

Mar ' 09

Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation 1,501.50 230.87 204.25 208.33 2,144.96 308.34 22.84 331.17 121.29 108.45 101.43 33.56 67.87 67.87 144.06 1,375.92 198.18 164.20 110.04 1,848.35 138.65 22.33 160.99 104.04 89.10 -32.15 -6.51 -25.64 3.85 -21.79 76.19 1,161.73 182.33 154.11 75.08 48.26 1,621.51 329.08 12.70 341.78 72.96 80.15 0.48 188.18 58.26 129.93 -16.61 9.65 122.96 156.03 928.42 182.93 123.01 71.12 44.29 1,349.78 180.99 10.20 191.19 57.87 87.64 0.42 45.27 12.48 32.79 2.36 0.88 36.03 65.85 848.65 159.41 112.90 73.58 27.66 1,222.20 70.35 7.15 77.50 68.89 72.67 0.53 -64.59 -31.48 -33.11 -31.34 0.60 -63.85 43.30

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Mar ' 13 Equity dividend Preference dividend Dividend tax Retained earnings

Mar ' 12 23.15 3.93 -

Mar ' 11

Mar ' 10 34.72 0.08 5.74

Mar ' 09 5.79 1.75 1.25 57.06 0.84 0.14 42.32

116.98

76.19

115.48

Balance sheet
(Rs crore) Mar ' 13 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve 1,806.93 1,574.19 1,518.87 1,444.01 1,427.34 1,179.87 1.23 1,507.86 1,191.27 1.70 1,479.87 1,138.47 2.55 1,451.80 1,030.61 1.79 1,266.62 1,072.43 0.95 1,296.94 23.15 303.61 23.15 263.75 23.15 287.64 23.15 5.00 206.08 23.15 3.05 25.00 172.36 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

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Mar ' 13 Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

Mar ' 12

Mar ' 11

Mar ' 10

Mar ' 09 567.64 859.70 6.33 64.44

841.12 965.81 11.15 110.67

794.28 779.91 250.93 60.27

716.85 802.02 29.00 60.15

647.18 796.83 5.24 60.15

762.84 342.60 420.23 1,507.86

642.09 253.34 388.76 1,479.87

850.14 289.52 560.62 1,451.80

600.57 196.65 403.92 0.48 1,266.62

513.29 147.72 365.57 0.90 1,296.94

51.64 39.57 624.42 231.49

17.64 43.06 198.68 231.49

17.64 40.25 375.62 231.49

17.64 46.74 134.55 231.49

20.42 17.62 73.07 231.49

6. Learning Experience Internship has helped a lot to understand the practical side of job, which is different from the textbook theories. It has also helped me to improve my communication skills. Customer handling was one of the important learning that I gained from my internship. From the customer point of view, it is easy. But not so when in the position of a staff or employee. Was also able to maintain a good relationship with the employees off the shop floor. It is very well said that Finance always need a theory backup. One needs to really know what finance is all about and how much it is important for the companys smooth functioning.
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on and

OBJECTIVE AND SCOPE

The objectives of the research are as follows: SPECIFIC OBJECTIVES: To analyze the effect of recession in textile industry. To analyze the performance of RSWM during and after recession. To understand the market position of the company and how the company is managing their target market areas(competitors & its marketing department). To understand the processing of fiber. To understand the clients choice through questionnaire.

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RSWM is one of the largest textile companies in terms of turnover. Getting the original experience of the business and understanding the business under situation like recession and strategies to sustain under such situation was the scope of my project.

RESEARCH METHODOLOGY

RESEARCH DESIGN The research design used for this project is descriptive design. It focused on the following: The objectives of the study are clearly formulated. The techniques of data collection were designed in advance. The processing and analysis of data worked out in anticipation. The finding of the reports is per guidance of management.

DATA COLLECTION METHODOLOGY The source of information is gathered through the primary and secondary data. While resorting to these two sources of information, major emphasis is laid on primary source as it gives first hand information in the area of survey. Primary Data collected was done using the questionnaire method. A copy of the questionnaire attached as an annexure. The open ended data analyzed qualitative.
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Secondary data collection was done by referring to various generals, magazines and internet. The secondary data collection has been used to address the research objective-To understand the textile industry as a whole including fiber to processing .These sources of secondary data have been acknowledged in the bibliography section of this report. DATA ANALYSIS The sampling design highlights the sample size and sampling technique that is used for this study. A modest sample size of 30 respondents was selected for the study. The sample was selected using the convenience sample technique. This sample comprise of the existing clients of RSWM Ltd .These respondents were selected by references given directly through the company personnel .The entire sample population is from the Bhilwara district of Rajasthan state.

OBSERVATION AND FINDINGS

Economic downturn The year 2008 -2009 has been an exceptional year in the last 60 years because of exceptionally challenging economic scenario. Across the world, the economic activity has declined sharply, driven mainly by the decline in consumption and exports. The advanced economies are facing a severe and synchronized contraction with unprecedented 7.5 %decline in real GDP during the Q4 of 2008.Reflecting sharp demand contraction, consumer price inflation has reached near zero in several advanced countries, raising concerns about sustained deflation on the way forward. Unemployment rates in the US, EU, UK and Japan have increased significantly.

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The slump in export demand and tighter trade credit caused deceleration in aggregate demand, reversal of capital flows led to equity market losses and currency depreciations; global liquidity tightening resulted in lower external credit to Emerging Market Economies (EME) and market rigidities and erosion of confidence led to widening of credit spreads.

QUESTION-WISE ANALYSIS OF THE CUSTOMER -SURVEY

A. In which type of manufacturing segment, you deal with? Piece Dyed: . Fiber Dyed: .......... Fancy Dyed: . ANS: The respondent of this survey were thirty clients of RSWM Ltd. They preferred Piece & Fiber dyed segment. The P/c and P/V are the most products of RSWM followed by 100% cotton. It can be implied that RSWM follows the marketing differentiation strategy where their clients are retained over a period of
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years because of the superior quality of the product and the brand name of the products.

B. In which type of market, you deal? Domestic: .. Export: . ANS: There was mixed reaction. Most of the clients, purchased for sales in domestic market.

C. Are you regularly associated with RSWM? YES: NO: . ANS:

D. Are you satisfied with the quality of RSWM yarn? YES: NO: ANS: the product of the RSWM is better in quality and well accepted in the market .Customers are satisfied with the quality of the product and thats why its rate is

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higher than the other mills producing the same product .Also there is consistency in the quality.

N.Are you satisfied with price structure of RSWM yarn? YES: . NO: ANS: the clients felt that the prices of the RSWM products are slightly higher than the prices of similar products available in the market. The flowing table illustrates this point with factual data.

PRODUCT NAME

RSWM PRICES

AVERAGE INDUSTRY PRICES.

2/24 PV GREY 2/24 PV 2/32 PV 2/50 PV 65/35 DYED

143.00 128.00 133.00 217.00

141.00 126.00 131.00 205.00

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O. How would you rate RSWM with other manufacturer in terms of Quality & Price? (please number:1,2,3) RSWM: Sangam: . Birla group of industries: . Orient syntax: . ANS: On the basis of quality RSWM was rated as number 1 and on the basis of price, it was ranked as 2nd & SANGAM as no1.

P. How will you mark, the Pre and Post services, provided by the RSWM Marketing office to the clients? Excellent: .. Good: . Average: . ANS: it was marked as good.

Pre-sales services: The clients appreciated the promptness with which the marketing manager would attend the needs of the clients. they also liked the fact that the manager would satisfy all the queries and concerns of the clients before closing the deals.this we can say the performance of the pre sales services of the RSWM are rated as more than satisfactory.

Post sales services: The post sales services of RSWM are an indispensable aspect of the clients experience with the company .this is especially so, as the clients are required to
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make a full advance payment, while placing the order. Usually the clients are happy with the product ,but if any dis -satisfaction with regards to the color or tenacity of the yarn ,the company is known for quick adequate replacement .this post sales services of the RSWM makes it as a preferred supplier.

Q. According to you which are the most effective media? T.V. : .

Magazines : .

News Paper : .

Radio : ..

Mouth Publicity :

ANS: 40% of the respondent felt that word of mouth publicity is the most effective media for the yarn industry.

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R. Any suggestions,you would like to give for improvement? ANS :The respondent have given many suggestion to improve various aspects of the RSWM business process ,as follows: a. Company should increase the production cycles to reduce delivery time. b. Company should revise the payment terms to make it more flexible .eg.50% at the time of booking and the remaining at the time of delivery of the goods. c. The yarn industry currently operates primarily on the basis of personal network.RSWM being a major player in this industry can transform the way of doing business by adopting a more professional approach. This will help smaller organizations to benefit by RSWM products.

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LIMITATIONS OF THE STUDY a. The survey is based on a small sample size .Thirty respondents is an insufficient number to draw conclusions about RSWM Ltd and Its clients perception s about its operations. A large sample size would have made the study more accurate.

b. Since the primary study is based on customer feedback through questionnaire Methodology, the limitation of the respondent, bias creeps in. some respondent may not be honest in giving their opinions or may have factors like respondent fatigue,respondent dis-interest ,which may yield factually incorrect information in the survey.

c. The data analysis techniques are basic and the research lack s the use of highly sophisticated statistical tools.

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SUGGESTIONS AND RECOMMENDATIONS

Based on the data obtained, the qualitative feedback gives two major insights which have been explained as suggestions and recommendations.

1. The objective of the company must be to maintain the optimum balance of inventory.RSWM Ltd should provide goods immediately on demand of customers to gain reliability and retain loyal customers with the company. The clients of the company have expressed their dissatisfaction with the time taken by the company to deliver the products. This is a concern and can be addressed as quickly as possible so that the customers as a key stakeholder of the business remain happy with the organization.

2. Being a major player in the industry, RSWM Ltd should follow a professional approach to get new business. A company of this long standing and credibility has the influence to change the traditional ways of doing business.RSWM, known to be a Learning Organization can create formal channels of attracting new customers and not depends on informal or personal networks alone .this is important as it will allow smaller firms to take benefits of the superlative quality yarns produced by RSWM Ltd.

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BIBLIOGRAPHY AND WEBLIOGRAPHY BIBLIOGRAPHY: Strategic marketing problems cases and comments by Roger kerin,Robert .A Magazine-reliance publication. Local newspaper

WEBLIGRAPHY:

www.rajasthanspg.com www.lnjbhilwara.com www.rswm.in www.wikipedia.org

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