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Characteristics of textile spun yarn

composed of short staple fibers of definite length
Made from natural cotton, flax or wool staple fibers
Made from natural or man-made filaments which are chopped or cut into short
lengths and referred to as filament staple yarns
Individual fiber length vary
Bigger and wider in diameter than filament fiber yarns
Fuzzy appearance and feel, fiber ends protrude from yarn
neven number of fibers throughout
!ange from soft, loose construction to hard finished, fine twist yarns
"hic# and thin areas highly twisted
Fall apart when untwisted
$ull or flat in appearance
!ough to touch
%atural textural appearance and feel
Bul#ier to the feel
&rovide good covering power
'nagging Yarn is a long continuous length of interloc#ed fibres, suitable for use in the
production of textiles, sewing, crocheting, #nitting, weaving, embroidery, and ropema#ing(
"hread is a type of yarn intended for sewing by hand or machine( Modern manufactured
sewing threads may be finished with wax or other lubricants to withstand the stresses
involved in sewing( )mbroidery threads are yarns specifically designed for hand or
machine embroidery(
'pun yarn is a #ind of yarn made by gathering together a bundle of staple by spinning the
spindles at a very high speed to twist the staples together to form a piece of yarn( "he
usual length of the staple of any #ind, such as wool, ramie, or any type of synthetic fiber
for spinning should be less than *( Cotton staple is usually between +,- and .- / long(
Cotton staple of less than 0 long is usually not used for 1uilt, padding or spinning into
yarn because spun yarn of such short staple will have very wea# tensile strength which is
not suitable for these fabrics( "he 1uality of cotton is determined by the length of staple(
2ong staple means high 1uality and vice versa(
By 1uality cotton is basically divided into the following four ma3or groups(
4( 'ea Island Cotton5 "his is the best 1uality cotton in the world( It has the longest and
finest staple reaching .- / which is the maximum length by nature( It is named so
because this type of cotton is particularly found in 'outh Carolina, 6eorgia and Florida
and many islands off the coast of these states(
.( &ima Cotton 5 It is the name given to the cotton of the second longest staple reaching 4-
+,7( It is grown in &eru and )gypt 8also called as &eruvian and )gyptian Cotton9(
:owever, it is also grown in the south western ('(
+( (' Cotton 5 generally refers to cotton in nited 'tates other than 'ea Island cotton
Cotton 'pun ;arn and Cotton 'taple8Fiber9

("he staple length varies but may reach 4- 0(
7( <sian Cotton 5 "his cotton is grown in <sia, =apan, China, &a#istan and India( "he
staple length is usually not longer than 4- 4,-
>ther than the length of cotton staple which is of great importance, the thic#ness of it is
important too because only cotton of long and fine staple to ma#e high 1uality fine
fabrics( "he wool thic#ness varies depending on the #ind of wool and origin of it(
'ynthetic fiber is made by machine and we can ad3ust the thic#ness usually between ?(?4
mm and ?(?7 mm based on our needs( "he staple length of each #ind of the above
mentioned cotton, can be substantially shorter than indicated(
Before spinning yarn, cotton of different staple length are sorted into groups such as5
4( Cotton of all long staple length 8called as fully combed cotton9 are sorted for
ma#ing fully combed yarn(
.( Cotton of medium length staple 8called as semi combed cotton9 for ma#ing semi
combed yarn(
+( Cotton of all short staple 8called as carded cotton9 for ma#ing carded yarn(
Fabrics of fully combed yarn would have a smooth sil#y surface where as fabrics made of
carded yarn would have nubs or dead cotton on the surface, which are usually less color
absorbent( <s a result it is coarse and not very soft( "herefore, we usually use combed
yarn to ma#e light weight fabrics such as shirting@s etc( but use carded yarn which is
cheaper to ma#e heavy fabrics such as heavy denim canvas( "heoretically, a piece of yarn
can be made of any size, usually from 7 count to 4.? count or even heavier than 7 count
or finer than 4.? count(4 count yarn means -7? yards to weigh 4 lb( . count yarn means
4,A-? yards 8twice as long as 4 lb9, and of 4? count yarn means -7?? yards 84? times as
long9 to weigh 4 lb and so on( "herefore split the one count yarn into almost any number
and call it yarn of that count ("his is the system used to control the size of the spun yarn
of 4??B cotton, polyester, wool, acrylic, ramie, rayon or any mixture of them(
depends on fabrics structure
2.3.1 Indias Textile Industry Structure
Cotton textiles continue to from the predominant base of the Indian textile industry,
through other type of fabric have gained share in recent years( In 4CDD-CA, the share of cotton
and manmade fabric was A?B and .*B respectively( More recently, cotton fabrics accounted
for 7AB of the total fabric produced in .??D-?A, while man made fibred held a share of 74B(
"his represents a clear shift in consumer preferences towards man- made fabric(
The Textile and Aarel Suly Chain
$istribution Channel 8)xport E $omestic Mar#ets9
6arments E <ccessories
&rocess :ouse
norganised 'egment Composite Mills
&owerlooms :nadlooms Fnitting
Man- Made Filament )xtraction &rocess
Gool,'il# &etrochemical
2.3.2 Ra! "aterial #ase and Caacity in India
Cotton5 Cotton is one of the ma3or raw materials for the Indian textiles industry( India is
the second largest producer of cotton in the world, has the largest cultivated area ofoverC
million hectares and accounts for around .?B 87(- million tons9 of globalproduction 8over .D
million tons9( "he performance of the cotton sector has been increasing over the years and
during the cotton season 8<ug-'ept9 .??*-?-, the output recorded was +4? la#h bales 84*? #g
each9( )ven the consumption has been increasing over the years from 4CD(?+ la#h bales in
.??7-?D to .7D la#h bale sin .??*-?-, by both mill and non -mill sectors( $uring .??*-?-,
India exported AD la#h bales of cotton( "echnology Mission of Cotton 8"MC9, Mini mission
III, and Mini Mission 4H are some of the developmental measures ta#en by the 6overnment
in this sector( "he cotton sector provides employment to more than D? million people in
various activities starting from cultivation to trade and processing(
$ Sil%& In the world sil# production, India is a distant - second largest producer, with a share
of around 4DB, next to China, which holds a share of -.B in the world Gith a total sil#
production of aroundl-, D?? M" in .??A-?*, India has the distinction of producing all
varieties of sil#, vizI mulberry, en, tasar and muga( Mulberry accounted for nearly C?B of
total sil# production in India( "he sil# sector provides employment to around six million
persons in rural and semi urban areas, and the ma3ority belonging to the economically wea#er
sections of the society, including women( Gith =apanese technology and cooperation, Indian
sericulture industry is able to evolve and popularize Bivoltine sil#worm races, which can
yield raw sil#, matching the international standards(
'((l& India is the *th largest producer of raw wool in the world accounting for little
over .B of the world production( with about 7(.B of the total sheep population( <lthough
the woolen textile and clothing industry is relatively small compared to the cotton and
man-made fibre based textiles and clothing industry, yet the woolen sector plays an
important role as it is lin#ing the rural sector with the textile manufacturing sector( "he
product portfolio is also diverse, ranging from textile intenried(uas to finished textiles(
garments, #nitwear, blan#ets and carpets Indian woolen sector has also a small presence
in manufacture of technical textiles, catering to the civil defense re1uirements for warm-
clothing Most of the u ??4 produced in India 8around -D9 is of course 1uality used
mainly in the manufacture of hand-#notted carpets( and D a is of apparel grade, and 4?B
is of course grade( used mainly for production of blan#ets(
)ute& India is the largest producer and consumer of raw 3ute in the world( In the year
.??A-?*, India imported raw 3ute worth ' ' .D million 8over-+, ??? tons9( $uring the
period <pril-February .??*-?-, India imported raw 3ute valued ' J+4 Amillion 8over
44C,??? tons9()xport of 3ute products 8including floor coverings9 from India was around '
J .D* million in .??A-?*, which has reached to ' J .CAmilIion, for the period <prilK
February .??*-?-( "here are **3ute mills in IndiaI A? in Gest Bengal, + each in Bihar and
ttar &radesh, * in <ndhra &radesh and one each in <ssam, >rissa, "ripura and Chhattisgarh(
L Manmade Fibres5 "he man-made fibre industry comprises fibre and filament yarn
manufacturing units of cellulosic and non-cellulosic origin( "he production of man-made
fibres in India has shown an increasing trend in .??*-?-, a growth of around 4?B over the
previous year( India also imports man-made fibres and synthetic E regenerated fibres for
processing and value addition( In the year .??A-?*, India imported man-made fibres valued
' J DDD million, and synthetic and regenerated fibres worth ' J M*million( In the year
.??*-?-, during the period <pril-February, India@s imports of man-made filament and spun
yarn amounted to ' J D*-rnillion, and India@s import of synthetic and regenerated fibres
amounted to ' J 4?? million(
Current Scenari(
"he Indian "extile Industry has an overwhelming presence in the economic life of the
country <part from providing one of the basic necessities of lifeI the textiles industry also
plays a vital role through its contribution to industrial output, employment generation, and the
export earnings of the country( "he Indian textile industry contributes about 4 7 per cent to
industrial production, 7 per cent to the countries gross domestic product 86$&9 and I per cent
to the country@s export earnings( "he industry provides direct employment to over +D million
people and is the second largest provider of employment after agriculture(
"he total cloth production is increased by 4?(. percent during 'eptember .?4? as compared
to 'eptember .??C( "he highest growth was observed in the power loom sector 84+(. per
cent9, followed by hosiery sector 8C 4 per cent9( "he total cloth production during <pnl-
'eptemher.89 4? has increased by . 4 per cent compared to the same period of the previous
year( "he total textile exports during <pril =ulay .?4? 8provisional9 were valued at ' J *(D-
billion as against s J *(.4 billion during the corresponding period of the previous
year( registering an increase of D .? per cent in rupee terms( , 4 he share of textile exports in
total expois was 44(?7 per cent during <pril-=uly .?4?( Cotton textiles has registered a Nowth
of -(. per cent during <pril-'eptember .? 4?-lI, while wool, sil# and man-made fibre textiles
have registered a growth of .(. per cent while textile products including wearing apparel
have registered a growth of + per cent(
India has the potential to increase its textile and apparel share in the world trade from the
current level of 7(D per cent to - per cent and reach 'J -? billion by .?.?( "extiles and
apparel industry exports(valued at 'J .?(?. billion 8"%! CA+(?D billion9, contributed about
44(D per cent to the country@s total exports in .??-K?C( "hus, the growth and all round
development of@ this industry has a direct bearing on the improvement of the economy of the
"he textile sector comprising of spinning and handloom is the single largest industry in the
state( "he textile industry is dominated by handlooms, which en3oy a huge production base
and account for 4? per cent of the country exports( "otal sales of the sector accounted for 4(-
per cent of sales by industry in the state in .?4?( "he handloom industry dominated by
cooperative societies, accounts for -A per cent of the looms and produces C* per cent of the
state@s textiles( Cotton yarn is the most popular product in the state followed by #nitted
garments and fabrics such as cotton and wool( "he textile-processing complex at
Fan3i#ode,(the International <pparel &ar# at "hiruvananthapuram and the Industrial )xport
&ar# at Fochi offer wal#- in-and-manufacture environments(
L :ardly .?B of the textiles re1uirement of the state is met by local production( which +
Coniprises principally of the handloom and #ha#i sectors, the power loom sector 8Ghich
produces over *DB of the re1uirement nationally9 not having been encouraged <de1uately in
Ferala for fear of aggravating the already problematic traditional 'ectors( "he 6overnment
desires to con-act this policy on the lines of the 6overnment of India@s "extile &olicy with
ade1uate safeguards to prevent massive redundancies in the handloom and #ha#i sectors(
2.*.1 -r(.ile (. Textile Su/,Sect(rs
$ Or0anlied "ill Sect(r& <s of $ecember +4( .??*( there were 4*?? conon->bre and man-
made >her textiles mills 8noii-''89 in the country with a capacity of round +D milion
spindles, and around ?(D million rotors( lndas organized mill sector produced about 7???
million #gs of yarn and oer 4 *?? million s1( mirs of cloth(
L -(!er l((1s Sect(r& "he power looms sector provides a wide variety of cloth, both grey as
well as processed fabrics( <s on =anuary + 4, .??-, there was .?(-+la#h power looms
distributed in over7(A7 la#h units, constituting overO?B of the global power loom age( "he
sector also contributes aroundA.B to the total cloth production in the country, provides
employment to about D? la#h people, which constitutes around 47B of the total employment
in the textiles sector and contributes A?B of the fabric, meant for exports(
L :andlooms5 "he handlooms sector has been playing an important role in creating an
awareness of the Indian cultural diversity and fashion, which is uni1ue only to the Indian
textile industry( "he handloom cloth production was AD+A million s1uare meters in .??A-?*
and dunng.??*-?-, the production of cloth by handlooms sector was over *??? million
s1uare meters(
L !eadymade 6arments5 "he clothing sector is fragmented and predominantly in the small
scale sector( It is estimated that there are over 4+,??? apparel units 8excluding tailoring units9
in India, ma3ority of which are in the 'M) sector( "he total production of clothing sector was
around - billion pieces with a value of !s( 4 trillion during .??D-?A of which over one fourth
in 1uantity terms are being exported( "he clothing sector is concentrated primarily in -
clusters ,viz(, "irupur, 2udhiana, Bangalore, $elhi %oida 6urgaon, Mumbai, Fol#ata, =aipur
and Indore( "irupur, 2udhiana and Fol#ata ate ma3or centers for #nitwear, while Bangalore,
$elhi,%oida,6urgaon( Murnbai(=aipur and Indoreare ma3or centers for woven
clothing(India@s exports of ready-made garments(consisting of cotton, sil#, man-made fibres,
wool arid other textile materials showed a marginal increase of ?(-B, from .??D-?A to.??A-
?*I and it is expected toperform marginally better in the year .??*-?-(
L "echnical "extiles5 "extile materials and products, which are used for industrial purposes
and manufactured primarily for their technical performance and functional properties, rather
than for decoration, are called technical textiles( "he maximum consumption of technical
textiles is in the '<, Gestern )urope, China and =apan( "hese regions account for ADB of
the total consumption of technical textiles in the world( In India, the production of different
items of the technical textile industryha been slowly and steadily increasing <ll the twelve
items are produced in India in varied 1uantities( India has also made notable contribution in
the production of textile for strategic applications viz( national security( e(g( parachute
canopy fabric used the carrying human, dropping of supply bra#e parachute application etc(
that are indigenized and exposed to other countries as well, "he mar#et size and potential of
technical textiles was estimated at !s 4C,4+? crores in .??+M7, and it is estimated to have
reached !s +?,??? crores in .??*-?-(Being an emerging field, 6overnment of India is
launching a 8!s 4??? crore9 "echnology Mission on "echnical "extiles 8"M""9 to ensure
that there are necessary profitable benefits from the enduring investments( "oK combat the
issue of technology bac#wardness and infrastructure issues, "he Ministry of "extiles,
6overnment of India, plans to create clusters on technical textiles, so that thenecessary
textiles may be produced with ade1uate technology, thereby ma#ing the products
technologically competitive too(
6"% ")P"I2)' 2"$ is incorporated on <ugust .nd 4CA. at <luva, near Cochin in Ferala
state and commissioned in 4CA7( "he company has its registered office )rumathala near
<luva in )rna#ulum district( "he company was started for the manufacture of cotton yarn
with a capacity of 4.??? spindles( Company has got roots in the textile business for almost
4?? years( 6" %arayana 'wami was the founder of 6"% ")P"I2)' 2"$( In 4CAA, the
company was ta#en over by the present management of the company( "he founders were
from the raw cotton and yarn trading family business( "hey entered into manufacturing of
cotton in 4CAD by starting 6"% ")P"I2)' 2"$ in the small town of <luva, Ferala, in the
southern part of India(
"he 6"% group which started with a single unit at <luva has gradually grown into multi
location multi-unittextile group with a spindlage nearing, 4,A?(??? 6"% "extiles 2td( <luva
unit has an installed capacity around D?,??? spindles( 6"% "extiles ltd is an I'>

6"% "extiles is one the largest cotton yarn exporting organization from
india and is currently exporting at most 4??B of its total production to countries li#e
=apam,Italy,'outh #orea("aiwan,Indonesia,'ingapore,Malaysia and Gest 6ermany("he
company pioneered exports of cotton yarn to =apan and Italy where it has maintained its
6TNs -r(duct Ran0e
6"% group manufacture 4??B cotton yarn, #nitted fabrics5
;arn of count +?@s to 47?@s
"wo for one twisted E !ing double
Fnitting E Geaving yarn
6assed yarn
6assed and processed yarn
Fnitted garments
Manufacturer, )xporters E Importers of Cotton ;arn, Fnitted Fabric and 6arments(
)gypt, nited 'tates, <ustria, 6reece
=apan, Italy, 'outh Forea, China, :ong Fong, <ustria, Belgium, Israel, <ustralia, "aiwan,
Malaysia, Mauritius, "ur#ey
"he ob3ectives of the study are divided into two(
-ri1ary O/8ecti9e
"he primary ob3ective of the study is to #now the organization structure and the functions of
different department(
Sec(ndary O/8ecti9es
"o #now about the textile industry
"o study the structure of the company
"he functions of various department
"o analyze the strengths wea#nesses opportunities and threates of the company
"o provide suitable suggestions of the effective functioning of the company
"o #now the interaction between different departments(
C(llecti(n (. Data
1. Area (. Data C(llecti(n
"he area of data collection is from 6"% "extile 2td <luva(
2. S(urce (. Data
"he data can be classified as5
. &rimary data
For this study the primary data were collected from different departments, by direct
interview( &rimary data are those which are collected for the first time( &rimary data
collected through discussions and interviews with management personnel@s of varioys
departments( Ge collect primary data during the course of doing experimental
research but in case we do research of the descriptive and perform surveys whether
sample survays or census surveys(
. 'econdary $ata
For this study secondary data were collected from published reports of the company
magazines and websites(
&eriod of study
"his study in 6"% "extiles 2td manufacturing company was done from D
<ugust to 4?
'eptember( "he data was mainly collected through the primary source by interviewing or
having a conversation with the executives and the wor#ers of the organization(
D+-ART"+NTA3 -RO2I3+
4( !aw Material $epartment
.( Muality <ssurance $epartment
+( &roduction $epartment
7( 'tores $epartment
D( Maintenance $epartment
A( Management Information 'ystems $epartment
*( Finance $epartment
-( :! $epartment
C( 'ales, )xport, Mar#eting $epartment
4?( 'ecurity $epartment
44( !esearch and $epartment
:.1 RA' "AT+RIA3 D+-ART"+NT
Cotton is the sole raw material for the manufacture of cotton yarns( 'ince it is a
seasonal product and is available only during the months from >ctober- March, the re1uired
1uality is purchased and stoc#ed for the production of cotton yarn( "he fiber processors see#
to ac1uire the highest 1uality at the lowest price, and attempt to meet processing re1uirements
by blending bales with different average fiber properties(
Blends that fail to meet processing specification show mar#ed increase in processing
distribution and product defect that cut into the profits of the yarn and textile manufacture(
"he cotton pic#ed folds are ginned and ta#en to the factory site from the ginning
centres through agents( "he purchase is done on a massive scale, before which the material
undergoes a series of tests( "he basic sample considered should satisfy three parameters viz(,
sample length, strength and value( >nce the sample clears this high volume instrument
testing, the company goes for bul# purchase on lot basis( "hese samples again undergo the
1uality chec# which once cleared for delivery( "he approval lot again undergoes :HI tests(
>nce cleared these lots are accepted for manufacturing(
Herification of properties
Finding suppliers
Import of cotton
&urchase of raw materials
Gaste management
1. 5eri.icati(n (. -r(erties
'uccessful processing of cotton depends on appropriate management during and after
harvest of those highly variable fibre properties that have been shown to affect finished
product 1uality manufacturing efficiency( If fibre- blending specific end uses and
profitability, production managers in textile mills need accurate and effective descriptive and
predicative 1uantitative measures of both the means and ranges of these highly variable fibre
"he components of cotton fibre 1uality are usually defined as those properties
reported for every bale which currently include length, length uniformly index, strength,
micron ire, and yellowness 8Qb9, and trash content, all 1uantified by the :igh Holume
Instrument 2ine 8:HI9(
2. 2indin0 Suliers
Cotton is produced from different cotton producing states of India i(e(, 6u3arat,
Maharashtra, Farnata#a, <ndhra &radesh, "amil %adu, &un3ab, :aryana, etc( "he various
varieties of Indian cotton are =+7, 'A-'7, ;-4, =<;<$:<!, M)C:, B!<:M<, $C:,
$I6HI=<;, :-7 etc( < part from these <merican supima giza7., 6iza*?, 6iza**, 6iza*A,
6iza-D, and 6iza-? which are imported from <merica, )gypt and 'udan are used for
processing cotton yarns(
)arlier the company used to depend solely on Indian cotton, but the 1uality was not
up to the mar# as it was contaminated with foreign particles( 2ater imported cotton was used
and now C?B of <merican cotton is used(
3. I1(rt (. C(tt(n
"he company purchase more than 7?B cotton raw materials from foreign countries
li#e <merica and )gypt( "he main reason or import is better 1uality and productivity( !aw
material used for production is 'uvin( >ne of the finest extra-long staple cottons available in
the world( 'uvin cotton is superior in all aspects li#e fineness 'taple length, sil#iness, and
luster( "he exclusive cotton of India orgin is a luxury and its products are considered
premium and niche worldwide(
) Sui1a
It is a superior, extra-long staple variety of cotton growth in <merica( ;arns produced
from 'upima cotton are used to produce softer and more lustrous fabrics( 'upimarepresent
highest 1uality in cotton yarns( 6"% is the first spinning company in India to obtain a
'upima trademar# license(
) +0yt 6i;a
6iza cotton is a true mar# of excellence with extremely superior 1uality in the extra-
long staple and long staple variety( "hese varieties are also renowned for their excellent
fitness and feel(
) Indian C(tt(n
6"% use high 1uality verity of MC' and 'han#er cotton #nown for their superiority
in terms of fitness and goodness(
) Australian C(tt(n
Medium staple contamination free, varieties of cotton and one of the best grades of
raw materials from among the best suppliers(
) A1erican s89 Acala
6"% was the first Indian spinner to be given a cotton '< license( Medium staple
contamination free, varieties of cotton and one of the best grades of raw materials from
among the best suppliers(
*. -urchase (. Ra! "aterials
"he purchase is based on three production plan made the departments according to the
forecasted re1uirements for production( "he production plan does not allow shortage as it can
lead to heavy loss( !andom samples of purchased cotton, is tested in the 1uality lab for fiber
1uality specification( "est for fibre fitness is conducted as spinning larger number of fitness
fibre together results in stronger, more uniform yarn than if they hard be made up of fewer,
thic#er fibers( "he 7 ultimate acceptance tests for fibrecolour as well as for finished yarns and
fabrics is the human eye( "herefore instrumental colour measurement must be correlated
closely with visual 3udgment(
<. 'aste "ana0e1ent
2ong fibres are best suited for yarn production( 'hort fibre content is defined as the
percentage of fiber less than 4.(*mm the short fibers obtained as waste from processing is
pac#ed and sold(
=ey .act(rs .(r success
&rocurement of the right 1uality at right time(
<bility to procure large 1uantum of raw material and #eep long time stoc# which
ensures consistent 1uality(
"he 6"% has an associated concern trading in cotton for the last 7? years which gives
it added advantage(
Organization Structure- Raw Material Department
'enior >fficer
Gor#ers Gor#ers
"his department is responsible for the 1uality assurance of raw materials, 1uality
assurance in process and 1uality of finished goods( "he department is also responsible for
implementation of research and development 1uality improvement activities in the
organization and also tries to establish and maintain procedure for inspection, calibration of
measuring and testing e1uipment(
"he department is situated inside the factory with state- of art laboratory for testing
the 1uality of cotton yarn at various stages of production and the finished goods( 'ome of the
machines used in the 1uality assurance department and ')! 'pin 2ab excusing these
machines, testing is done for the raw materials and finished goods( 6"% "extiles 2td(, <luva
is I'> C??. for 1uality assures in production, installation and servicing( "he company has a
1uality manual that ma#es commitments to the customers that they shall comply with all their
re1uirements for improvement in all the activities to serve them(
Muality assurance department is the department where the 1uality is chec#ed and there
are various parameters that affect the 1uality of cotton fiber, some of them are length,
evenness, fiber strength( "hese parameters are tested in the 1uality assurance lab(
>uality -(licy
6"% textiles would ensure manufacturing and mar#eting of cotton yarn by complying
6"% "extiles ltd( Gould achieve the highest level of customer satisfaction by
meeting their stated and perceived re1uirements manufacturing consistency and
timely delivery(
6"% 74 endeavours continual up gradation of product 1uality and technology
supported by ! E$ efforts in a cost effective manner(
"o meet changing global demands and stay headed in competition 6"% would adapt,
innovate methods in its manufacturing activities(
6"% would inculcate a sense of 1uality awareness at all levels by using appropriate
training and motivation techni1ues(
6"% would aim at preserving the environmental conditions y adopting eco- friendly
measures in its manufacturing and other activities(
"he man activities of >AD are5
!aw material selection and stoc#
Bale management
>nline process monitoring of production and 1uality(
4??B zero, 1uantum clearer
H lamp testing
Duties and res(nsi/ilities
Seni(r "ana0er& "a#es care of the overall administration of the 1uality assurance
Or0ani;ati(n Structure, >uality Assurance Deart1ent
Seni(r "an0er
<ssistant Manager
<ssistant Manager
'upervisors >perators >perators
&roduction department is the most important part of this organization( :ere
production is carried out in re1uired 1uality at minimum cost( "he production department in
coordination with the mar#eting divisions does managing and controlling of the production
process( Customer re1uirement in terms of 1uality, 1uantity, delivery, pac#aging are obtained
an analyzed as per the sales contract from the export division(
-r(ducti(n caacity
6"% have 4AD??? 'pindles Capacity, consisting of +???? Compact spindles and
4+D??? !ing 'pinning in addition process li#e twisting 6assing, $ye pac#age winding,
Fnitting etc( in- house in order to server different customer@s re1uirements effectively(
"he reason for success in this competitive environment I that all the products are
customized and are produced on a Nmade to order bases@
6TNs -r(duct Ran0e
6"% group manufacture 4??B cotton yarn, #nitted fabrics5
;arn of count +?@s to 47?@s
"wo for one twisted E !ing double
Fnitting E Geaving yarn
6assed yarn
6assed and processed #nitted yarn
Fnitted garments
"ain c(unts
>ver C?B of products are fine and superfine 4??B yarns carded and combed with
counts ranging from +?s to 47?s, both single and multi-fold, as well as gassed, suitable for
#nitting and weaving(
2l(! chart (. r(ducti(n r(cess
-r(ducti(n r(cess
"he production process is mainly going through five stages5
49 #ale (enin0& In this process cotton are opened, foreign matters are segregated and
processed in the bale- opening machine( From this process, cotton is sub3ect to
.9 "ixin0& :ere different varieties of cotton are blended in define proportion( "he
ob3ective of blending different varieties of cotton is to spin the re1uired yarn
Bale >pening Mixing Blow !oom
$rawing Combing Carding
!ing 'pinning <utomatic Cone
Conditional ;arn 'ingeing Gaxing
economically( nimix is the machine that is used to mix the cotton and to convert in
to chute(
'tac# mixing is the best way of doing the mixing compared to using automatic bale
openers which pic#s up the material from 7?-*? bales depending on the length of the
machine and bale size, provided stac# mixing is done perfectly( Improper stac#
mixing will lead to shade variation problem, stac# mixing with bale opener ta#es care
of short term blending and two mixers in series ta#e care of long term blending(
+9 #l(! R((1& In this, the mixed cotton is opened, cleaned and made in to a continuous
sheet in the wound from( "his product is called Blow !oom 2ap(
79 Cardin0& In carding operation, the Blow !oom 2ap material is cleaned, fibers are
made parallel and then wastes are extracted from fibers and assemble in to a
continuous stand( "his stand is called card 'liver( "his silver are coiled and stored in
cans( "here are two rules of carding(
"he fibre must enter the carding machine, be efficiently carded and ta#en from it in as
little time as possible(
"he fiber must be under supervision from entry to exit(
"he purpose of carding5-
"o open the floc#s individual fibers(
Cleaning or elimination of impurities(
)limination of dust(
)limination of short fibers
Fiber blending
Fiber orientation or alignment
'liver formation
D9 C(1/in0& "he carded sliver is then prepared for combing in 'liver 2ap and !ibbon
2ap machines( "he product thus prepared is called !ibbon 2ap( "his !ibbon 2ap are
then fed to comber machine( In comber, the short fibers and minute impurities are
removed and the fibers are made parallel and assembled in fro of sliver(
A9 Dra!in0& In drawing process, s definite number of combed sliver is doubled and
drawn together to ma#e the resulting sliver more even and parallelized fibers( "he
sliver is stored in cans in coiled form(
*9 Si1lex& "he ob3ect of simples or speed frame process is to attenuate the drawn sliver
into a finer strand, twist and wind it on a plastic tube this product is called !oving(
-9 Sinnin0& In ring spinning process the roving is attenuated with the help of drafting
system and the drafted fibers strand is twisted and wound on a tube( "he twisting and
winding operations are performed with the help of !ing "raveler and spindle( "he
yarn count s also set at this stage( "he arrangement is being progress to sin the latest
form of compact yarn by the employment of )lite and Com7 machines(
C9 Aut(1atic C(ne 'indin0& In the automatic cone winding process, yarn from the
ring frame cops passed through electronic yarn cleaners to detect and remove
ob3ectionable fault in the yarn( "he yarn ends are 3oined with the splicing provision( <
definite length of yarn will be wounded on ones( Gaxing can also be done in this
4?9 D(u/lin0& In doubling process, two or more single yarns are twisted together( "his
consists of two processors- assembly winding and twisting( In assembly winding the
re1uired number of single yarns of definite length is wound in parallel to a single
pac#age( "wisting may be carried out either with !ing $oubling machine or two- for
one twister(
449 C(n9enti(nal !indin05 In conventional winding a definite length yarn is wounded on
ones( $uring winding yarn is passed through electronic yarn cleaner to detect and
remove ob3ectionable yarn fault waxing also can be done in this process(
4.9 Sin0ein0& In singeing process yarn is passed through a flame at high speed to remove
the protruding fibres( "he ob3ect of singeing is to ma#e the yarn lustrous, which can
be used for some special end uses( "he flame and speed of the should be constant as
ay change can cause damage to the yarn(
4+9 C(nditi(nal yarn& <part from gassed yarn conditional yarn is also produced(
<ccording to the customer re1uirement the yarn is conditioned in a conditioning
machine( "he yarn conditioned for half n hour in specific temperature and moisture(
"he time limit is imported as over conditioning may lead to absorption of moisture by
the yarn and hence may result in poor 1uality(
479 -recisi(n 'indin0&, In this process yarn is passed through a special type of tension
assembly to get the pac#age more softly so as to get the dye pac#age directly( "he
softness can be increased or decreased as per the re1uirement(
Or0ani;ati(n structure, -r(ducti(n Deart1ent
'tores department is the department whose main service is maintaining several
types of inventories( <lso it functions as maintenance of materials, spare parts and general
store as re1uired( &urchase is made with reputed companies who offer good 1uality of
products at reasonable cost(
<ssistant Manager
&roduction -4
Seni(r "ana0er
<ssistant Manager
&roduction -.
<ssistant Manager
&roduction -+
<ssistant Manager
&roduction -7
>fficers >fficers >fficers
'upervisors 'upervisors 'upervisors
'toring of purchased raw material
Issuing reorder level
Material inspection
2isting and selling of scrap
'toring of raw material
It is the duty of the stores department to store the purchased raw material( <ll the
purchase are made online( '<& is the software used for this purpose( "he purchases are made
through 1uotations for a period of six months( Muotations are received from dealers who
provide maximum discount(
Mainly + type of material are purchased and stored(
Mill stores5 this inculds spear parts, bearings, consumable goods etc(
&ac#ing goods5 "hese include material which is used for pac#ing(
tility item5 "his include engineering items, electric items etc(
<ll purchases are made within the limit of --4. days and on the same day itself it is fed into
the computer(
Issuin0 Re Order 3e9el
<ll the purchase and issue of raw materials are entered in the computer and computer will
show the re order level(
2irst release
"he re1uirement of each department is listed out by the respective department staff(
"his list is then sent to the department head(
Sec(nd release
"he list prepared b the department is approved by the department head and then sent
to the vice- chairman(
Order -lace1ent
<fter the second release, the re1uirement list is sent to the stores department, where
the order is placed( "he description and 1uality of the product is specified in the order
Order release
"he store manager places the order with the suppliers and is #nows as order release(
"he re order time and lead time is estimated with the help of past record( "ax free
goods are specified
Order accetance
"he order acceptance is the receipt of goods ordered( "he 1uality of the item is
chec#ed by the stores department(
"aterial Insecti(n
"he 1uality of the items delivered by the suppliers is inspected by the investigation in the
1uality assurance department( "hen the materaisl are issued to the respective departments(
"he purchase entry is also made during this time( "he items received by the stores department
are stoc#ed in the stores(
Monthly reports are generated( Consumption reports are generated to find out the
consumption rate( "he reports are alsso used to tally the physical stoc# with consumption(
3istin0 and sellin0 (. scra
"he scrap materials are listed out once in every six months( < call for 1uotation is made to
find the best price that can be obtained for scarp( <BC analysis is used for regular items,
which directly affect the 1uality li#e pac#aging materials and machinery spares(
Or0ani;ati(n structure, st(res Deart1ent
6"% being a manufacturing concern, the number of e1uipment and machines are
involved directly with production process and hence the effective functioning of maintenance
department is inevitable(
"he ob3ective of maintenance department includes minimizing long run
maintenance cost, minimizing brea#downs to #eep operation stable, providing reliable
conditions for e1uipment to perform at specified technical conditions through service, repairs
replacement and modifications( "hey conduct the maintenance program at tervals intended to
reduce the li#e hood of e1uipment conditions falling below a re1uired level of acceptability
and also modernization wor#s are done by the department(
In order to assist maintenance department, computer are provided with the details
and reminder dates of the maintenance of a machine in a department and details of its
services and replacement( <ll the machines are cleaned periodically and their functioning is
'tores Manager
chec#ed in order to assure that the machines are wor#ing smoothly with no troubles( >ther
than daily chec#s, wee#ly, monthly or yearly chec#s are carried out( < time interval is set for
all machines( < monthly schedule is prepared to see which machine is to be attended first and
then at the time the concerned foreman will attend the machine(
6"% "extiles being a manufacture of fine and super fine 1uality cotton threads,
modernization has become the inevitable part of the production( !eplacement of machines
and machine parts also is done by this department( 6ood 1uality machines are selected
according to the count rate(
Minimizing maintenance cost
Minimizing brea#downs of machines(
!eplacement and modification of machine(
!eplacement and modification of machines
&roviding safer wor#ing condition(
)nsure machine are wor#ing properly
"he maintenance operations are divided into two(
-re9enti9e "aintenance
"he manger and other concerned officers will fix the life of all machines spare
parts and will replace the particular spare part at the end of the period( <ll the machines
used in the company CIndian as well as imported ones9 are under the annual maintenance
contract( 'o the serious mechanical problems are rectified by the company, who supplied
the machines.
#rea%d(!n 1aintenance
If any faults occur at any part of the machine, the assigned person from the
maintenance department will chec# out the problem repair the part(
3e9els (. 1aintenance
"echanical "aintenance
"o ensure the protection is carried out in a controlled condition(
+lectrical 1aintenance
)nsure that process e1uipment or machinery are maintained and fit for the purpose(
Or0ani;ati(n Structure, "aintenance Deart1ent
<bout C?B of the organization is computerized( "he main networ# is the '<&,
)!& implemented within the raw material finance, export and stores department( >ther
applications li#e &ayroll software in Fox &ro and production Control in Hisual Basic are
implemented in the organization(
'enior Manager
<ssistant Manager
8Mechanical Maintenance9
<ssistant Manager
'upervisors 'upervisors
>perators >perators
"aintenance& "he system has to be maintained and updated according to the increasing
needs of the organization(
-r(cess "(nit(rin0& "he production process is completely monitored by the department(
"he &ayroll 'oftware is handled by the personnel department( "he wage and salary
calculation is done using this software( "he organization provided intranet facilities for ease
of access of information( "he intranet is accessible by the top level management( "he main
server is at Cochin through which the transactions are communicated( "he information
regarding the transactions are shared and passed to the organization through routers(
>rganization 'tructure5 Management Information 'ystem $epartment
"his department has to raise necessary funds, mange them, prepare finance budgets
and administer its wor#ing capital( "he department functions on public issue of capital,
maintains records for helping the finance manager access the appropriateness of capital
structure( It provides data for the preparation of budget and various financial statements( "he
accounting function of the department includes the preparation of trial balance on a yearly
'ystem <nalyst 'ystem <dministrator &rogrammers
basis( "hey also prepare managerial reports regarding expenditure of travelling, postal
telephone and courier transactions(
2uncti(ns (. 2inance Deart1ent
"he company maintains a clear and perfect accounting system( "he main activity
of the finance department is wor#ing capital management( &reparation of fund flow
statement, cash flow statement, balance sheet, profit and loss accounts are also the activities
of finance department( 'ecretarial wor# relating to board comes under the finance
department( Most the activities carried out by the finance department are preparing to long
term and short term re1uirement of the operation, closing purchase bill, maintaining the
account contractors, subcontractors, income tax, deduction, salary discrepancy, dealing with
the financial institutions with import and exports(
"aintainin0 #((%s (. Acc(unts li%eA
a. -urchase Rec(rds
"he finance department of the company #eeps the account of raw material and
accounting entries are made in the boo#s of accounts of the company( "he department
analyses the details of purchase afterwards(
/. Salary acc(unts
"he main function of the department is preparation and disbursement of salary of
officers, office staff and wor#ers( "he department #eeps salary register pertaining to each of
the above said person and facilities charges in salary due to granting of annul increment and
deduction from the salary( "he department is maintaining sub ledgers for deduction made in
the salary such as &F, insurance premium advance and income tax( <nother important
function is computation of income tax(
c. Sales and Re9enue Acc(unts
"he department functions on calculation of paying sales tax and central excise duty
to the concerned government every year, provision for current tax is made on the basis
estimated taxable income for the current accounting year in accordance with income tax
d. Cash and /an% acc(unts
"he department does all the matters relating to the day to day cash transactions(
"hey receive and ma#e payment for purchase and sales(
e. C(st sheet
<nnual budget and cost sheet is prepared at the outset of every year and the
company is following &rocess costing method( It helps the company to ascertain the cost of a
product at each stage of the production, i(e(, cost at each process through which the raw
cotton passes through for the production of fine years( "he total incurred at each stage of
production is carried out to ascertain the final cost( "he pricing policy adopted by 6"%
textiles is Cost plus- pricing and hence a certain percentage of the profit is added to the final
cost incurred(
.. Dereciati(n
$epartment has been provided at the rates and in the manner prescribed in
'chedule PIH to the Companies act 4CDA( &lant and machinery and electrical installation
have been, on technical assessment, considered as continuous process(
Acc(untin0 syste1
"he financial statements are prepared on historical cost and convention(
<ll fixed assets are states at cot ad3usted by revaluation in case of certain land,
building, land and machinery and electrical installation, less accumulated
2ong term investments are stated at cost less provision
Halues of fixed assets are devalued by technicians
Haluation of investment is done at cost(
$epreciation is done as per the company@s act 4CDA(
"ana0e1ent (. -aya/les and Recei9a/les&
<s C?B of the sales are as exports, it ta#es place with the support of letter of credit
or ban# guarantee( "herefore, management of payables and receivables has not been a
problem for the company( In this total amount, D?B of the total amount is written off as bad
depts( 2i#ewise -?B of the raw cotton purchased is imported( 'o 2,C is made us here too(
2ocal purchase is made by the company for a credit period of +? to C? days( "he company
claims to have an efficient management of both payables as well as receivables(
Acc(untin0 -(licies&
#asis (. resentati(n&
"he financial statements have been prepared to comply with the mandatory
<ccounting 'tandards issued by the Institute of Charted <ccountants of India and the
relevant provisions of the Company@s <ct 4CDA( "he financial statements have been prepared
under the historical cost convention, ? the basis of a going concern, on accrual basis(
Use (. +sti1ates&
"he preparation of financial statements re1uires Management to ma#e estimates and
assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent liabilities on the de of financial statements and reported amounts of revenue and
expense of that year( <ctual result could differ from these estimates( <ny revision accounting
estimates is recognized prospectively in current and future periods(
2ixed assets&
i( <ll fixed assets are stated at cost less accumulated depreciation( )xpenditure during
construction period in respect of new pro3ect, expansion is allotted to the respective
fixed assets on their being ready for commercial use( <lso refer &olicy 6 and = below(
ii( Impairment of assets the company assesses at each Balance sheet data whether there is
any indication that any asset may be impaired( If any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the impairment
loss is charged to &rofit and 2oss account( If at the Balance sheet data there is any
deduction that@s previously assessed impairment loss on longer exists, then such loss
is reversed and the asset is restated to that effect(
2ong term investments are stated at cost les provision, if any, for other than
temporary diminution in the value of investments(
Inventories are valued at lower of cost or net reliable value( Cost of !aw Materials is
computed by using R'pecific identificationS method and for other inventories RGeighted
<verageS method( "he cost includes costs of purchase, cost of convention and other costs
incurred in bringing the inventories to their present location and condition(
'ales are recognized as and when ris#s and rewards of ownership are passed on to the
buyer and ultimate realization of price is reasonable certain( )xport sales are inclusive of
deemed exports while local sales a re net of sales "ax, H<"(
#(rr(!in0 C(st&
Borrowing Cost attributable to ac1uisition and construction of 1ualifying assets are
capitalized as a part of the cost of such asset up to the date when such asset is ready for its
intended use( >ther borrowing costs are charged to profit and 2oss <ccount(
+1l(yee /
'hort N"erm employee benefits including accrued liability for leave )ncashment
8other than termination benefits9 which are payable within 4. months after the end of the
period in which the employee render service are paid, provided during the year as per the
!ules of the company(
2(rei0n currency transacti(ns&
"ransactions in foreign currency are recorded at the rate of exchange in force at the
date of transactions( Foreign currency assets and liabilities are stated at the rate of exchange
prevailing at the year- end and resultant gains, losses are recognized over the life of the
contacts( In accordance, with the <'-44 8revised .??+9 the exchange difference arising on the
contacts, transactions enters into on or after ?4-?7-.??7 on the settlement of monetary items
or on reporting monetary items at rates different from those at which they were initially
recorded during the period, or reported in previous financial statements, is recognized as
income or expenses in the period in which they arise(
Income tax expense comprises current tax and fringe benefit tax 8i(e( amount of tax
for the period determined in accordance with the Income "ax 2aw9 and deferred tax charge
or credit reflecting the tax effects of timing difference between accounting income and
taxable income for the year9( $eferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been enacted or substantively
enacted by the balance sheet date( $eferred tax assets are recognized only if there is a virtual
certainly of realization of such assets( $eferred tax assets are reviewedat each balance sheet
date and written up to reflect the amount that is reasonably I virtually certain as the case may
be to be realized( "ax credit is recognized in respect of Minimum <lternative "ax 8M<"9 as
per the provisions of section II'=<< of the Income "ax <ct, 4CA4 based on evidence that the
company will pay normal income tax within the statutory time frame and is reviewed at each
balance sheet date(
C(stin0 and ricin0&
<s 6"% textiles 2imited is a manufacturing concern and involves a large number of
processes, process costing method is followed( It helps the company ascertain the cost of a
product at each stage of production, i(e( cost at each process through which the row cotton
passes through for the production of fine yarn( "he total cost incurred at the each stage of
production is carried out to ascertain the final cost( "he pricing method adopted by the 6"%
"extile is cost- plus- pricing and hence a certain percentage of the profit is added to the final
cost incurred(
#ud0et and /ud0etary c(ntr(l&
Budgets are prepared by this department on a 1uarterly basis and based in this the
annual budgets are prepared( "he budgets can be sales budget, production budget, expenses
budget and the total budget( <t the month end, a comparison is made between budgets and
actual right from the raw cotton procurement till the last process( "he reasons for variations
8if any9 will be found out(
Or0ani;ati(n structure, .inance Deart1ent
&ersonnel $epartment plays a crucial role in the management of the company( "he
department try to create and utilize an able and motivated wor#force to accomplish the
organizational goal, and try to satisfy individual and group needs by providing ade1uate and
<ssistant Manager
<ssistant Manager
>fficers >fficers >fficers
e1uitable wages and incentives, employee, benefit and social security and measures for
challenging wor# prestige, recognition security, status etc(
"he personal department is responsible for recruitment, selection, placemen training
performance, appraisal, promotion and separation( "his department is headed by $6M
8industrial relations9( :e is in charge of implementation systematic recruitment procedures
for providing facility for the overall development and motivation of all the employees( :e is
also in charge of ensuring safety aspect in the mill and maintaining cordials industrial relation
with the wor#ers( "he categories of wor#ers employees in 6"% are permanent and
temporary( "he recruitment, employment, leave disciplinary actions, retirement etc( are done
as per the standing order( "his department is also responsible for training, performance
appraisal compensation and separation(
'(r% sta..s
"he company wor#s round the cloc# in three shifts
shift 5 - am- 7 pm
shift 5 7pm- 4. pm
shift 5 -am
'taff shift 5 C am- D(+? pm
)mployees 5 *.4
'taff 5 4?C
For each shift there would be + supervisors5 4 shift in charge and supervisors(
2uncti(ns (. ers(nal deart1ent
!ecruitment and selection
Induction training procedure
&erformance appraisal
Gage and salary <dministration
Recruit1ent and selecti(n
6"% textile 2td recruits its manpower resources through recruitment agencies and
advertisement in leading newspapers( "he other sources are form reference service and
relatives of employees and from apprentices( !ecruitment is done b the 6(M( of personnel
and industrial !elation $epartment( <t 6"% textile selection is done through tests and
Inducti(n Trainin0 -r(cedure
"echnical and non technical fresh recruits are given general exposure to the overall
activities of the organization during initial days( "here after they are given in depth training
in assigned areas of wor# followed by on the 3ob training(
Gor# men fresh recruits are given general exposure to the overall activities of the
organization( "hey are on the 3ob training under the supervision of the 3obber, mastery,
guided by supervisors or deputy Manger 8training9(
Introduction &rogram
Induction !eport
>n the =ob >ff the =ob
"raining is given to all wor#ers for developing their s#ills and proficiency in wor#(
"he probationary period for also wor#ers and office staff is six months( < formal induction
training program is provided for fresh recruits as per the program given in the induction
training manual( <lso training is given to each wor#er when a new machine is installed
respective to their department(
>n completion of training an evaluation regarding effectiveness of training received is
sought from the department concernedS(
-er.(r1ance Araisal
&erformance appraisal is systematic evaluation of the capacity for development( It is
usually done by the supervisors at 6"%( Chec# list method is used for personnel evaluation(
It helps the superior or the manager to 3udge the honesty, sincerity, loyalty and responsibility
of the employees( It is usually done in the duration of six months( "he performance of each of
the wor#ers, their strengths, merits, wea#ness etc( is discussed in detail with them and these
are considered for their promotion( :owever at the managerial level, the through maintains
the performance appraisal system, does not discuss with the officers( It is not carried out in a
transparent manner(
'a0e and Salary Ad1inistrati(n
6"% follows time rate wage system( For this purpose the attendance records are
maintained strictly also there is card punching system for recording entry and exit of the
employees and wor#ers( "he remuneration for the wor# of service rented by the employees is
paid in the form of salaries, wages or fringe benefit( Gages include both monetary benefits
and non monetary benefits( "he employees pay, wage includes basic pay, $", "<, :!<,
2"C, &F and )'I for .A days( < certain percentage of annual earning is distributed as bonus,
of the total pay 4. B is for &F and 4(*DB is for )'I( >ver time wor# is also paid at the rate of
4(*D times that of a normal day@s pay( "here is no &F and )'I for over time and holiday
+1l(yee !el.are sche1es
"he company provides all the statutory welfare measure as per the factory@s act 4C7-(
"here are general measures and the company also administers activities that come under non-
statutory items(
+1l(yee c(,(erati9e s(ciety
"here is an employee co-operative consumer stores to cater the re1uirement of
provisions stationary and textile articles( "hey also arrange for supple of household
appliances li#e "H, "wo wheeler, sewing machines et coin installment basis
+1l(yee credit s(ciety
6"% "extile employees credit society advanced loans to the employees ranging from
!s( .???,- to .D???,- for various purposes on a reduced rate of interest( "hey also run
recurring deposit schemes for the employees(
Sil9er )u/ilee educati(nal Assistance
nder the sliver 3ubilee educational assistance scheme, employees can avail benefits
up to . children towards their educational expenses, it ranges form !s( A??,- up to HII std(
student, !'( .D??,- to medical, engineering students per year
"arria0e assistance
Interest free loans of !s( 4????,- are being given to the employees in the event of
marriage of their daughter(
Insurance lin%ed 0ratuity sche1e
"he company has adopted insurance li#ed gratuity scheme for the benefit of the
employees( nder the scheme, in case of death of an employee, his dependents will be
eligible to receive full gratuity for the total calculated period of service including the
balance of years of service after death(
)ach employee can avail 4+ paid holidays in a calculating year( 2ist of holidays will
be notified each year(
< subsidized canteen managed by the employee representatives is ta#en care of
catering needs of the employees( Meals, snac#s, coffee, tea are available in the canteen
during the prescribed timings(
>uality Circles
Muality circle activities are being organized in <luva nit with the effective
participation of the employees(
'afety, house#eeping activities are arrived out on a continuous basis( < part from the
statutory complianceI a safety committee is effectively wor#ing(
6TN textiles e1l(yee !el.are .und
"here is fund constituted for the welfare of the employees( "here are different benefits
li#e death benefit, retirement benefit, disablement benefit, loans assistance, etc( contemplated
under the scheme
Assistance .(r the handicaed children
"here is a scheme to assist the handicapped children of employeesI this includes
supply of artificial limbs, aids or any other assistance to such cases(
#l((d D(n(r 6r(u
Blood 6roup of almost all employees has been ascertained( In case of emergency,
employees will come forward to donate blood(
Su00esti(n sche1e
"he company conducts suggestion scheme in the areas of productivity, house#eeping,
1uality, safety, etc( employees who submit suggestions are being properly rewarded
Attendance a!ard
"o recognize the employees to attend word regularly special prices given every year(
"e1/ershi in r(.essi(nal /(dies
"he company has membership in various professional bodies viz( 'IM<, <"I!<,
'<'MI!<, 'I"!<, Ferala state productivity Council )tc(
Su/scriti(n t( Ne!s -aer and )(urnals
Harious %ews papers and 3ournals are being subscribed for the benefit of employees
Anti addicti(n r(0ra1
"he company provides all assistance to employees who wish to come out form their
addiction habit(
'(r%er +ducati(n thr(u0h !(r%er
In association with central board of wor#ers education, employees are given classes in
batches for a period of .-+ months on various sub3ects( "here are trained wor#er teacher who
ta#e such classes(
Standin0 (rders
"here is an approved standing order, which regulates the conditions of employment
+xcursi(n t(urs
)xcursion tours are arranged regularly for the staff member and for the participation
the wor#ers education classes
T!enty years ser9ice a!ard
<s a to#en of appreciation for the continuous service put in, the employees are given
memento after completion of .? years of service(
2a1ily lannin0 r(0ra1
)ncouragement li#e special level of finance incentive is given to employees in the field of
family planning activities(
C(n9eyance .acility
'ubsidized conveyance facility is provided between <lwaye and factory for the
second and third shifts(
'ocial <ctivities
"he company ta#e care of the need of the local people with due consideration( "his
includes construction of building ,waiting shed ,donation to various charitable organization
etc( 'teps are ta#en for pollution control(
2irst Aid 2acilities
"he company has direct touch towards he nearby hospital the company can use the
service of the hospital in case of emergence(
'el.are (
Gelfare activities are under the supervision of the welfare officer M!( Gilson =oseph
appointed by the company(
7ealth and sa.ety
"here is a safety committee for loo#ing after the safety of the wor#ers drin#ing water
drin#ing water facilities are priced different spots inside the company(
+1l(yee state insurance sche1e
)'I scheme is uni1ue multidimensional self financing social security scheme in which
every contributor is a benefactor and beneficiary( "his integrated scheme of health insurance
prides comprehensive medical cover and cash benefit in contingencies of sic#ness, maternity,
disablement and health(
Trade uni(ns
"here are four registered and one unregistered union in the organization
I%"C 8<lwaye "extiles )mployee <ssociation9
<I"C 8<lwaye "extiles Gor#ers nion9
CI" 8<lwayeMe#hala $istrict "extiles 2abour nion9
BM' 8BharathiyaMasdoor'angam9
"he unregistered union is 6"% Gor#ers 8=obbers9 <ssociation
Or0ani;ati(n structure, ers(nnel deart1ent
6M &ersonnel
'ecurity >fficer
&ersonnel >fficer Manager "raining
'ecurity 6uards
=unior >fficer
"ime Feeper
)xport department is serving as a lin# between the customers( "he main duties of the
department includes sales en1uiry conformation, sales contract, preparation of wor# order
which in turn aids the preparation of production plan sending samples and finally shipment(
"hus the export department does not have separate mar#eting department( >nce the lot is
ready the production department ma#es arrangements for lot dispatch( "he goods are shipped
in containers, which undergo house stuffing or port stuffingI the cartons are covered with
:essian Cloth and loaded in to truc#s by experienced personnel under the supervision of the
factory trained expert more over the truc# is covered with water proof tarpaulins to protect
the cartons while transpiration( "he containers used for transportation is of international
standards, which are leased and provided to shipping line(
"he customer of the company include consumer who are directly use the product for
further processing and trader who sell it to other customers( "he company promotion efforts
include M$@s visit to foreign countries and participation in "extile exhibition abroad( "heir
ma3or customers are Italy, 3apan, China, <ustralia, 'pain and F etc(
"he payments of almost of all the transactions are through the letter of credit system(
"he export department office is at Cochin where the transaction re carried out( "he
information regarding the transaction are shared and passed to the organization through
routers( "he main server of the company is at Cochin(
India continues to be dominant supplier of cotton yarn in the world( :owever,
&a#istanis closely following India and it may outpace India because of its advantageous
factors li#e favourable exchange rate, cheaper power tariff and lower wages( >f late, &a#istan
has started importing extra long staple cottons for manufacture of finer counts of yarn for
exports( "herefore, India will have to become more cost- effective to withstand &a#istani
competition in this segment( China@s imports of cotton yarn are raising Cotton( India is now
poised to become a prominent exporter of raw cotton and cotton yarn(
)xport procedure
"he export transaction of 6"% textiles ltd starts with the receipt of an intent or order
from the foreign importer( <fter obtaining the license and complying with the exchange
regulations, they proceed to assemble the product as per the terms of the indent( >nce the lot
is ready, the production department ma#es necessary arrangement for lot dispatch and
arrange the secure shipping space on convenient terms and obtain shipping order after
complying with the customer formalities, i(e( paying customs duty and obtaining customs
export pass the company goes for bill or lading certificate of origin and insurance policy(
Finally they prepare invoice showing the price, 1uantity and description of the product and
negotiates with the ban# with necessary documents for securing payment under letter of
credit agreement( "he procedure is5
+x(rt r(cedure chart
!eceipt of Indent ,>rder
&roduction, &ac#ing E
Forwarding of 6oods
'ecure 'hipping >rder
Customer Formalities
"he 6"% textiles ltd has a well established and managed export department under the
control of well 1ualified professionals( Its strict delivery schedules, consistent 1uality and
after sales service had given the company an important position in the textile export area(
)ven though there is no separate mar#eting department for the company the mar#eting
activities of the company are performed by the export department(
6"% textiles ltd continues to maintain its leadership in exports of fine and superfine-
combed cotton compact yarns( It has export to cover .D countries across the world selling
high value and high 1uality products to the niche mar#et( Gith a substantially large export
mar#et and a growing domestic presence, 6"% certainly has its 1uality control measure and
production standards in place( %ot surprisingly the company has been the recipient of
"exprocil 6old award excellence in exporting for 4- years(
"he company has been constantly focusing its efforts to carter to high priced end user
in sophisticated mar#ets( <part from predominant exports of cotton yarn to =apan and Italy@s
company@s yarn has also been well received in other countries viz( 'outh Forea, China, :ong
Fong, '<, <ustria, Belgium, Israel, <ustralia, "aiwan, Malaysia, Mauritius among others(
"he company en3oys excellent relations with all its overseas customers, which have been
assiduously 1uality and providing prompt after sales service( For the past few years, the
company has been aggressively mar#eting its products to high end users in the domestic
mar#et who have set up downstream pro3ects for export of high value fabrics, made- ups and
>btain B,2, Certificate of
>rigin E Insurance
%egotiates with Ban# for
&ayment 2,C
"he tie up with =apan has not only helped in penetrating the =apanese mar#et, but also
in other parts of the oTworld where I">C:, the mar#eting conglomerate has officers( "he
connection has helped the company is sewing up business opportunities(
Sulier t( 7i0her and 1ar%et
sed for- shirting, stretch fabrics, voiles, velvets, velour, fine bed liner, fashion
#nitwear, lingerie
Gorldwide customer list- mar# E spencer, gap, Benetton, Hictoria@s secret, <nn
"he payment of almost all the transaction is through the letter of credit of credit
system( "he export department office at Cochin, where the transactions are shared and passed
o the organization through routers( "he main server of company is at Cochin(
"a8(r 1ar%ets
'l %o Mar#ets B 'hare
4( =apan +A
.( Italy 4D
+( Forea 4.
7( Israel 4?
D( China A
A( :ong Fong 4
*( "aiwan 4
-( Malaysia 7
C( F 4
4?( &ortugal .
44 6ermany 4
4. <ustria .
4+( <ustralia .
47( Mauritus 4
4D Chile .
4A 'ri2an#a D
Or0ani;ati(n structure ex(rt deart1ent
6eneral Manager 8)xport9
Manager 8)xport9
$eputy Manager 8)xport9
<ssistant Manager
"hrough security is a part of the personnel department, the functions performed by
them are above that of 3ust as guard( "he main functions of security department are5
'ecurity #eeping
Fire finding
First- aid
"he company has only one gate through which entry and exit of men and material is
permitted( "he wor#ers should compulsorily punch during entry and exit( se of rugs and
smo#ing is strictly prohibited inside the company( Breath analysers are used for this purpose(
Hehicles are also chec#ed during entry and exit for inflammable materials
"here are 4*+ free extinguishers placed at various places inside the company( <part
from this, the guards are trained for fire finding(
Five guards are trained for administering first- aid in case of any accidents( < first aid
#it is available in the security officer@s room
"here is one security officer, one head guard and 4. guards( "here will be four guards
in each shift( $uring the night shift to ensure that the guards are going for patrolling an <nglo
'wiss watch is used( "his is placed at different laces outside the company( "he time of
patrolling is recorded using this, at times of accidentsI immediate action is ta#en by the
security officer(
:.11 R+S+ARC7 AND D+5+3O-"+NT D+-ART"+NT
"he research and development department of 6"% "extiles 2td is well e1uipped with
latest testing and measuring e1uipment( "he !E$ Manger is the :ead of the $epartment(
"he supervisors follow him the technicians assist them(
-r(duct desi0n
>ne way to build the image of the product is done through its design( < distinctive
design may be the only feature that significant differentiates the product many firms and done
product design by considerable glamour and general promotional appeal in product design
and designers name( In the case of 6"% product design is done as operate re1uirements of
the customers(
-r(duct de9el(1ent
>rganizations are increasing by recognizing the necessity and advantage of regularly
developing new products and services( &roduct development must be done because of
declining their product sale the department head should control it(
Duties research and de9el(1ent 1anner
"he person who manages the !E$ $epartment has the role to translating customer@s
1uality re1uirements in to achievable specification and to continuously improve product
1uality and reliability based n information feedbac# on product performance(
The res(nsi/ilities (. R4D "ana0er are&,
$istribute the various stage wise wor#s among the staff in the department and ensure
timely completion(
!egularly oversee the wor#s carried out by the staff and guide them to achieve the
desired goals(
Clear the techni1ues doubts arising during the designing of re1uirement by interacting
with the Managing director(
$iscuss the testing procedures of prototype samples with managing $irectors@ and
Conduct reviews between various stages of design and manage all the verification and
validation processes(
Herify drawing, product specifications and records maintained by research and
development department
Control of documents and amendments to such documents(
6r(!th r(.ile
1B?2, 6"% "extiles ltd was incorporated for the manufacturing of Cotton yarn(
1B??, "he company was ta#en over by the promoters, the &atodia family of 6"%
1B:3, "he company ltd has established a unit at Chit#ul Hillage, Meda# $istrict in
<ndhra &radesh(
4CC+- "he company had promoted &atspin India 2imited, a 4??B )> as a 3oint
venture along with an e1uity participation of I">C: Corporation, =apan and
F'I$C, "rivandrum(
4CCD- "he company had ac1uired Cotton 'pinning nit %agpur, Maharashtra during
4CC7-CD by* virtue of amalgamation of &erfect 'pinners 2imited with the company(
4CC*- It further set up a yarn dyeing and mercerizing unit at 'hadsnagar, <ndhra
.??7- "he company was ran#ed A+
in the BB 4?? Cross Forex listing(
"he company ran#ed +.*
in Industry .(?@s second annual listing of top D??
manufacturing companies in India
"he company had received a compostie score of 4. out of a possible 4D in Industry
.(?@s 'CM Metrics study(
.??D- 6"% Industries was incorporated as a public 2imited company on .-
.??D under the Companies <ct, 4CDA(
It obtained the certificate for commencement of business on A
<pril .??D(
6"% Industries 2imited had changed its name to 6"% "extiles 2imited and vice
versa through the fresh certificate of incorporation .*
$ecember .??D, issued by the
!egister of Companies Ferala(
.??*- >n .A
=uly .??*, company had authorized the board to borrow money for and
on behalf of the company in any manner from time and without pre3udice(
2uture -lans
!educe cost of production
'ell improved 1uality cost efficient products(
Focus more on export of cost efficient cotton yarns and less on promotional activities(
pgrading the present 1uality of products to international 1uality standards(
"he overall evaluation of Company@s strengths, wea#ness, opportunities and threat is
called 'G>" analysis( In general, a business unit has to monitor #ey macro environment
forces 8demographic, economic, technological, political- legal and socio cultural9 and
significant micro environment factors 8customers, competitors, distributors and suppliers9 the
affect its ability to earn profits each business needs to evaluate its internal strength and
wea#ness periodically(
2atest technology
Gell accepted brand
Mar#et leader
Financially sound, profit ma#ing company
)xperienced and committed personnel
CDB capacity utilization
Foreign collaboration
I'> Certified
2arge reserve
$ecades of experience in trading cotton and yarn before venturing into this line of
!aw material prices are increasing
2ac# of commitment
2abour unrest
2ess transportation facility of employees
<bsence of user interactive system
2ess interaction between mar#eting and other departments
Money machines have become obsolete
"he operating expenses are on the higher side(
India has the largest cultivation and hence a great scope in the textile mar#et(
6lobalization increased opportunity for export of textile(
Increased demand of cotton garments in India and abroad(
<vailability od cheap labour
"echnology can be adopted to maximize 1uality production(
6rowing competition from foreign brands
!ising prices of raw materials
Inflexible 6overnment policies and regulations
6lobal warming and the resultant changes in the climate have affected the cotton
Changing technology
)ntering of new players from outside
"he pro3ect entitled organization study with reference to 6"% "extiles <luva, gives
information about the organization( "he study gives information about the manufacturing
process, organizationalI structure of the company, departmental functions and gives a good
#nowledge about the financial position of the company( "he company continues to be a
significant player in the medium, fine and superfine segment in the world cotton yarn mar#et
and is continuously innovating new value- added products, li#e compact yarn and other
specialty yarns( Gith at most respect to human values, company served its human resources
with integrity, through a variety of services by giving appropriate training, moti-vation
techni1ues and employee welfare activities( "he co-operation and interactions extended by
the employees and management of 6"% have made it possible for the in depth organisation
study, which would be of much use in the future(
Mar#eting management- &hilip Fotler
:uman !esource management- &( 'ubb!ao
#usiness Research "eth(ds, 'illian 6 Ei%1und(Business research methods the
Dryden press series in management , editionD- illiutrated, reprint, publisher- $ryden
Oerati(n "ana0e1ent F N(r1an 6aitherA 6re0 2ra;ier8)ditionC, Illustrated,
&ublisher- south western, "homas learning, .??.9
7u1an Res(urce "ana0e1ent, 5S- Ra( 8Publisher- Excel Book, 20029
<ccounting !eports of 6"% "extiles limited
'tanding orders of wor#ers U 6"% "extiles
C7A-T+R , 1
C7A-T+R , 2
C7A-T+R , 3
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<. O#)+CTI5+S O2 T7+ STUDY
?. R+S+ARC7 "+T7ODO3O6Y
:. D+-ART"+NTA3 -RO2I3+
Ra! 1aterial deart1ent
>uality assurance deart1ent
-r(ducti(n deart1ent
St(res deart1ent
"ana0e1ent in.(r1ati(n Syste1 Deart1ent
2inance Deart1ent
7R Deart1ent
+x(rt 4 "ar%etin0 Deart1ent
Security Deart1ent
Research 4 De9el(1ent