SHAHI

EXPORTS
PVT LTD.
MIS ASSIGNMENT

RHEA SEHGAL, SHIV PRATAP SINGH

SHAHI EXPORTS PVT LTD. 2015

INTRODUCTION
SHAHI Exports Pvt. Ltd. is engaged in the manufacture and export of readymade
garments in the International market. It is one of the largest export houses in
India. The company started its operations in the form of a small fabrication unit
with the help of 25 machines.
The company has grown from leaps to bounds from a simple fabrication unit to
present turnover of Rs. 2200 crore, around 55000 employees and spread over 27
locations. It has manufacturing units in six different states of India viz. Delhi,
Haryana, Uttar Pradesh, Tamil Nadu, Karnataka and Andhra Pradesh. The group
is into manufacturing of a wide range of Mens and Ladies wear and also home
products.
SHAHI group has all the modern units equipped with state-of-the-art technology
giving the best to its buyers.
Its manufacturing facilities includes Assembly line machines, Prima Vision system
print/fabric development, Meyer fusing press, Barudan and Tajima, Multi head
computerized embroidery machine, in house washing plant, automatic cutting
machines (F.K. Systems).
SHAHI has a well-equipped sampling division where latest patterns/designs/styles
of high standards are developed with the assistance of experienced designers.
It has a training center for tailors at Faridabad and Bangalore each to train and
develop them into vital human resource for efficient operations.
As regards to quality, SHAHI has been ranked one of the best in Asia by
J.C.Penny, the world-renowned departmental stores.

SHAHI EXPORTS PVT LTD. 2015

COMPANY PROFILE

Name: Shahi Exports Private Limited

Established: 1974

Owner: Mrs. Sarla Ahuja

Managing Director: Mr. Harish Ahuja

Address: Industrial Plot-1, Sector 28 Faridabad, Haryana

Work Force: More than 30,000

Capacity: Over 2 million high quality garments per month

Retail House: At Last & Co. , New York

Fabric Processing: Sarla Fabrics, Ghaziabad

Annual Turnover: INR 2200 crore (Group Turnover)

COMPANY MISSION
Exploring new dimensions of excellence. A path, where there was none. A new
horizon beyond yesterday. Excellence beyond today, touching tomorrow. Its a
world of relentless quest for quality. Its mindset, the action, and partners of Shahi
are ever reaching further, never resting on achievements. Yes! Milestone never
takes one there; it is the road that we create to reach excellence. Ever evolving
excellence. Shahi believes that its main strength is its people. The larger
investments made in the manufacturing units will give the desired results only if
backed by a committed human effort. The result will directly give us a sense of
pride for being a part of Shahi family.

SHAHI EXPORTS PVT LTD. 2015

CORPORATE VISION
Be the global best in bringing delight to human life by weaving dreams of
fashion & feelings of comfort.

CORPORATE VALUES
Guiding principles illuminate the path that leads to their destination. SHAHI
emphasizes on some guiding principles, which are indicative of the values it
believes in and would like to continue in the organization. These are the building
blocks of the organizational culture. The company believes in:

High level of honesty and a sense of responsibility.

Two-way communication channel for all purposes of communication.

In sharing the fruit of growth, prosperity with its partners i.e. the employees.

In giving each individual room to contribute and grow.

The company firmly believes that team spirit is the hallmark of success.

KEY STRENGTHS
Shahi Exports Private Limited (Shahi) is one of the largest vertically
integrated garment manufacturer and exporter in India.
Indias second largest apparel exporter by value of exports.
Shahi is one of the most successful professionally managed companies in
India.
Indias largest exporter by installed capacity.
Well qualified trained and committed professionals with a shared vision.
Highly qualified Design team, Product development skills and a Design
Studio.
High degree of adoption of advanced manufacturing technology MIS
and IT systems.
All factories and offices are electronically linked to facilitate all time
access to information
Focus on quality and a proven track record :
Short shipment: 0.50%
On time delivery: 98%

SHAHI EXPORTS PVT LTD. 2015

Quality claims: Nil.

PRODUCT PROFILE
The following are based and operated in NCR
1. LSD Ladies Specialty Division
2. LBAD Ladies branded Apparel Division
3. LFD Ladies Fashion Division (basically caters to Wal-Mart)
4. HFD Home Furnishing Division

MAJOR BUYERS

Tommy Hilfigher
Armani
Hugo Boss
Liz Claiborn
Abercrombie & Fitch (A & F)
J.C. Penny
Kohls

Gap
Target
Wal-mart
Calvin Klein
Espirit
Hennes & Mauritz (H & M)
NauticA

SUPPLIERS
The main markets for fabric supply for Shahi are Delhi, Panipat, Amritsar, Salem,
Mumbai.
Some of the fabric suppliers of Shahi (for both sampling & Production) are:
Muthu Corp, Erode
Picanova fabrics pvt ltd, Mumbai
New Diamond Woollen mills, Amritsar
Mafatlal Industries Ltd, Nadia
Ramkumar Mills Pvt Ltd, Bangalore

SHAHI EXPORTS PVT LTD. 2015

Netflex India Pvt Ltd, Mumbai
Priyanka Fabrics, Salem
Bhuvana Fabrics, Erode
Vincord Textiles, Delhi
Vijai Fabric Connection, Erode
L.K Woollen & Silk Mills, Amritsar
A.P Khanna & Sons Pvt Ltd, New Delhi
Himgiri Textiles, Faridabad
Rajindra Handloom Pvt Ltd, Panipat
Shiv Shakti Furnishing Pvt Ltd
KCS Fabrics Pvt Ltd (handloom, jacquard upholstery & curtains)
Mauryas, Delhi
Parkash textile Mills, New Delhi
Charu Enterprises, New Delhi
R.G Jindal & sons Pvt. Ltd.
The thread suppliers are:
Coats
Vardhaman
Pashupati
Oswal
Shahi has an in-house testing lab for measuring GSM, color fastness, rubbing
fastness, Dimensional Stability, stretchability and testing others properties of
fabrics
For labdips, strikeoffs and other approvals, fabrics are sent to testing laboratories
like:
MTL
ITS-International Testing service

SHAHI EXPORTS PVT LTD. 2015

ORGANIZATIONAL CHART

SHAHI EXPORTS PVT LTD. 2015

ORGANIZATIONAL STRUCTURES
Product design & development
HOD
Senior merchandising manager
Senior Designer
Assistant Designer
Junior designer

Merchandising Department
Merchandising manager
Divisional merchandising manager
Senior merchandiser
Junior merchandiser

Cutting
Manager
Spreader
Cutting master
Quality checker
Part checker
Supervisor
Ticketing
Bundling
Fusing
Part cutting

Production Department
Production Manager
Floor Manager
Line supervisor
Operators

SHAHI EXPORTS PVT LTD. 2015

Accessory Department
Accessory In charge
Store Assistant
Quality checker
Helper

Accounts Department
Senior Manager
Assistant Manager
Credit control manager

SHAHI EXPORTS PVT LTD. 2015

DEPARTMENTS
PRODUCT & DESIGN DEVELOPMENT
MERCHANDISING DEPARTMENT
SAMPLING DEPARTMENT
ORDER ANALYSIS DEPARTMENT
COMPUTER AIDED DESIGN DEPARTMENT
PRODUCTION PLANNING AND CONTROL DEPARTMENT
FABRIC SOURCING DEPARTMENT
PURCHASE & LOGISTICS DEPARTMENT
TESTING LABORATORY DEPARTMENT
FABRIC STORE AND INSPECTION DEPARTMENT
CUTTING DEPARTMENT
COMPUTERIZED EMBROIDERY DEPARTMENT
INDUSTRIAL ENGINEERING DEPARTMENT
SEWING DEPARTMENT
WASHING DEPARTMENT
FINISHING DEPARTMENT
PACKAGING AND DISPATCH DEPARTMENT
DOCUMENTATION
HUMAN RESOURCE

SHAHI EXPORTS PVT LTD. 2015

MERCHANDISING DEPARTMENT
A merchandiser is an interface between the buyer and the supplier who has to
ensure the quality of production and timely delivery. Merchandising is a process
through which products are planned, developed, executed and presented to
the buyers. It includes directing and overseeing the development of product
line from start to finish.

ROLE OF THE DEPARTMENT

To look for the appropriate market

To get the samples made according to the buyers specification

To estimate and quote the cost of the garment to the buyer and
negotiate with them

Getting orders

Constant interaction with the buyer for the approval

To get the fabric and trims in-house for bulk production

coordinating with the PPC and production

OBJECTIVE OF MERCHANDISER

To create market

Understanding buyers requirements

Sourcing of materials, fabrics

Select the range

Creating the product

Taking buyers approvals

Negotiation with buyer

Procuring the orders

Materializing the order

Execution the order

10

SHAHI EXPORTS PVT LTD. 2015

Coordination
department

between

Dispatching the shipment

production

and

production

planning

After shipment dispatching merchandiser is also responsible for buyer claims,

profit and subsequent orders. If buyer has any problem in quality of the product
then it is the responsibility of the merchandiser to resolve the problem with the
buyer.

FABRIC
DEPTT.
Q.A.

SHIPPING DEPTT.

DEPTT.

ACCESSORIES
DEPTT.

FINISHING DEPTT.

MERCHASNDISER

CUTTING

MERCHANDISING

DEPTT

DEPTT.

INDUSTRIAL
ENGG. DEPTT

SPREADING DEPTT

ORDER ANALYSIS
DEPTT.

11

PRODCTION
DEPTT.

SHAHI EXPORTS PVT LTD. 2015

HIERARCHY
PROFIT CENTER HEAD, MARKETING

DIVISIONAL MARKETING MANAGER

MARKETING MANAGER

SENIOR MERCHANT

MERCHANT

JUNIOR MERCHANT

CO-ORDINATOR

12

SHAHI EXPORTS PVT LTD. 2015

PROCESS OF MERCHANDISING:

The first stage of merchandising is when buyer sends either spec, sketch or
any garment pieces and asks for sample with costing or only costing using
different fabrics. The specs sent by the buyer are also called Tech Packs.

The merchandiser gets the approval of all things like fabric, trims, label,
costing etc. and either buyer gives the approval or gives the vendors
name.
-The allocation chart and FTP directory is received by the merchant from
the buyer online.
-The fabric CAD is also received from the buyer which has all the details of
the pantone shade and the repeat size.
-The prints are developed from their own mill, SFL (Sarla Fabric Limited) or
are subcontracted.
-A CD is developed which has the color picture of the fabric. This is sent to
the fabric department for development.
-Sample piece is developed.

Next, costing is done on the basis of the spec, sketch and garment which
are sent by the buyer for making the sample. Merchandiser does the
average costing/consumption of the garment. The quotation is sent to the
buyer/buying house and the approval is awaited. One thing is to be
noted that while giving the consumption, the cut-able width of the fabric
to be received (either mill made-developed in India or imported fabric)
has to be considered while costing. Also the marker utilization depends on
the style, which may affect the consumption greatly. The fabric
characteristic also matters vis--vis nap etc.

The merchandiser monitors the design from sampling to production and

13

SHAHI EXPORTS PVT LTD. 2015

then final dispatch. They are a link between the buyer and the company.
All correspondence that the buyer wants to do regarding his style will be
done through the merchandiser. Merchandiser monitors the total
sampling from development to the time the production sample is made
and goods go into actual production.

They also see that the fabric is developed on time and send it for
approval to the buyer and subsequently if all samples are made on time,
send them to the buyer for approval too. They are also in constant touch
with production to know the status of their styles.

Merchandising activities include:

1. To get order: Buyer directly communicates with the merchandiser in order to
place the order. Fixed buyers are allotted to merchandisers and the
communication is between the buyer and that particular merchant.
2. Costing: Costing of the garment in bulk is calculated on the basis of quality of
material and their requirement in the garment. It is one of the most important
activities of the merchandiser. To arrive at a perfect price to be quoted to
the buyer, following points are taken into consideration:
Costing is done considering these aspects of the cost.

COST
FIXED
COST

VARIABLE
COST

FIXED COST

1. Factory Cost - It is the fixed cost incurred for running the factory. It is
different for different
2. Standard Sewing Cost

14

floor.

SHAHI EXPORTS PVT LTD. 2015

Direct Labor: Operators Salary
Indirect Material: Lubrication Oil, Needles , Cleaning Material
Indirect Labor:

Staff & Maintenance Salary

Indirect Expenses: Power, Depreciation Of The Machinery

The standard sewing cost per operator per hour defined by Shahi for its Faridabad unit is

Rs 62.83.
VARIABLE COST

1. YY (Yields/yards) It is average consumption of the fabric. It is decided by

preparing a mini-marker which includes wastage of fabric due to laying,
cutting, fabric defect, end cutting loss, marker loss and the buffer that is
maintained to avoid shortage in future.
2. Trims Cost They are procured from local market as well as imported as
per buyers requirements.

Calculation of cost of fabric per garment

Calculation of cost of trims and threads

Cut-make cost

Poly bag cost

Cost of carton box

Calculation of consumption of fabric (yields per yard) and

threads to produce one garment

3. Sampling:

Merchandiser is involved in coordinating with the sampling

department. Based on the mutual agreement between the merchant and

the buyer, sampling department is involved in making samples. In every step
of samples, buyer sends back comments along with the tech pack.
4. Order confirmation: After the approval of all the samples, the order is
confirmed by the buyer. Merchandiser receives the PO sheet. Merchandising

15

SHAHI EXPORTS PVT LTD. 2015

department communicates with planning and production departments and
decides for the possible PCD (production cut date) for the required quantity.
Then he fixes up the PCD and delivery date with the buyer.
5. Preparing the time and action plan: This is prepared by the merchant stating
that all the different activities associated with the order should be complete
by the stipulated dates. It is like making sub goals to accomplish the ultimate
goal which is shipping of the order on the pre- decided date.
6. Preparing the bill of material: This enlists all the different materials required for
making the garment.
7. Execution: Merchandising department communicates with the buyer QA
during the production. He gets the approval of the quality or any changes in
the garment.
8. Shipment of goods: According to delivery date the goods are shipped on
time.
Documentation department is informed about the delivery date, the quantity
etc. In case of any delay, goods are sent through air on the companys cost.
For each order, the merchant has to prepare a file containing all the details and
relevant documents which is passed on to the subsequent stages in the
production process for reference purposes.

16

SHAHI EXPORTS PVT LTD. 2015

DOCUMENTATION IN MERCHANDISING
File prepared by merchant has following details:
Style Specification: contains a brief description of the style.
Style # : as mentioned by the buyer
Movex item # : Item number of the style by Movex
Buyer: Name of the buyer
PCD: Production cut date for the style
Merchant: Name of the merchant handling the style
The file contains the following:
Purchase order for the style
Garment techpack
Relevant communication with the buyer regarding proto, fit and preproduction samples. All the comments from the buyer for various samples
are included.
Thread consumption report
Fabric Test Report
Fabric and trim cards: Contains swatches of the fabric and trims to be
used
Mini marker with costing average
FOLDER SUMMARY

It consists of the general details like brand name, buyers name, size range and
the drawing of the garment.
1. Color / Trim Page: It consists of the details like description, size of the trims
like button size, material of which it is made of, no. of holes that it should
have.
2. Fabric Page: It consists of the details of the fabric like the count of the
yarn, construction (EPI, PPI) and color specifications. It also states the

17

SHAHI EXPORTS PVT LTD. 2015

value addition finishes and embellishments.
3. Packing and Labeling Details: It consists of the details like type of packing,
hanger type, polybag type, clips type of labeling.
4. Label Placement: It describes with figures where the label, hang tag,
spare button is to be attached.
5. Correct Balance : Basic and important tips for correct fit
6. How to Measure: It shows how to measure the important dimensions of the
garment.
7. Technical Sketch: It is a 2-D representation of the garment showing all the
stitch lines, panes, trims etc. symbolically.
8. Development Photos: It consists of the photos of the garment.
9. Specification Sheet: It consists of all the dimensions with tolerances and
increments for bigger sizes.
10. Bill Passing Reports: This is the report used in fabric receiving. It states
details like type, quantity, receipt no, item details, amount. It also has
goods receipt note attached. It contains fabric code, width, color,
quantity, rate, value etc.
11. Feedback: The feedback comes in the form of comments and
photographs of the garment on the dummy with its errors highlighted like
puckering and pinching.
12. Costing Sheet: Contains details like cost of fabric, trims, washing,
embroidery, sampling, testing, freight, duty, insurance etc.
13. Style Track Sheet: It is used to track the status of the order. It consists of
details like style no., merchants name, floor on which it is allocated, name
of the floor manager.
14. Initial Marker Planning Sheet: It consists of fabric width, total pieces,
pieces placed, efficiency and length.

18

SHAHI EXPORTS PVT LTD. 2015

15. Approval Form: Approvals can be for fabric, trims, slight errors which are
acceptable to the buyer.

Workflow of the Merchandising Department

Buyers enquiry / Tech-pack

Costing

Style finalization

Purchase Order received

Fit approval process

1st fit

Fabric/Material approval

2nd fit

Fabric/Material order

Pre production sample

Fabric/Material follow-up

Size set

Fabric/Material in-house

Production

Follow-up

Regular tracking and updating buyer

Order shipping

19

SHAHI EXPORTS PVT LTD. 2015

SAMPLING DEPARTMENT
Sampling department is the most vital department of the organization. It is the
department that develops the samples thus enabling the Product Development.
This department prepares samples on the basis of the requirements of the buyer.
The sampling department here caters to the need of all the other units of Shahi
as it was centralized.
Sampling was self-sufficient as it had its own stitching. Washing, trimming,
spotting, and ironing etc. dedicated for the construction of samples only. The
fabric and trims are sourced from the in house warehouse depending upon the
availability. The fabric which is sourced for the sampling purpose is called
yardage and is 25-30mts in length.

SAMPLING PROCESS:
The process of sampling goes through a series of sampling stages each of them
are explained below:
1. PROTO SAMPLE: It is the reflection of the first techpack received from the
buyer. The sample is sent to the buyer for the design approval. Proto sample is
made in the base size. Styling is important. The comments and second tech
pack is sent back referring changes in the sample.
2. FIT SAMPLE: The comments are received regarding the shape, size and
fullness. The sample is checked for fit on body forms. It is made in exact fabric,
though print maybe different, since the drape and fit are to be checked.
3. SECOND FIT SAMPLE: It is similar to the first fit sample made with a few changes
according to comments received from the buyer. Again a third or fourth fit
sample may be required to be made. After approval of fit sample, order is
confirmed along with all the specifications.

20

SHAHI EXPORTS PVT LTD. 2015

4. PRE-PRODUCTION/SEALER SAMPLE: This sample is known as the bible of
production. It is done for the base size of any one color and actual fabric and
actual trims are used.
5. SIZE-SET SAMPLE: The sample is made in actual fabric and trims in all sizes and
is sent to the buyer for approval.
6. GPT SAMPLE: These samples are made for garment testing for seam-slippage,
tearing strength; button pulling etc. it is the garment pack sample.
7. TOP (TOP OF PRODUCTION) SAMPLE: It is the best sample from first of bulk
production.
8. SALESMAN SAMPLE: It is made for the buyer to find out the opinion of the store
owners whether the style would sell in the market or not, and the demand of
that product.

21

SHAHI EXPORTS PVT LTD. 2015

WORKFLOW OF THE SAMPLING DEPARTMENT

Merchandiser orders for fabric Requisition

Patterns are made as per the PO

Raw material is issued on PO

Cutting

Embroidery (if any)

Sewing

Bar-tacking, B/H

Washing

B/A, Riveting

Alteration (if any)

Thread Trimming

22

SHAHI EXPORTS PVT LTD. 2015

Measurement Checking

Ironing

Initial Checking

Spotting

Final Checking (according to PO)

Packing

23

SHAHI EXPORTS PVT LTD. 2015

Fabric in-house in store

Star
t

Uploaded in system by floor

in charge

WORFLOW OF

Goods Received Note

provided by store in charge

THE FABRIC

Physical and technical

counter check by goods
received note

STORE AND

Test by lab

INSPECTION

Rejected

Accepte
Yes
d

DEPARTMENT

No

Is fabric
imported
/mill
made?

If
acceptable
N
o fabric
Report to
Yes

100%
lotting

store

100%
lotting
10% random
audit of each
lot

100% audit
of each
lots
Report
consolidation
Report to DMM

Report
accepted
?
Yes
Uploaded in
system
Ready to cut

24

Report to
DMM/Fabric
sourcing department

Report to fabric
store
N
o

Uploaded in
system
Return fabric to
party

End

SHAHI EXPORTS PVT LTD. 2015

WORKFLOW OF THE CUTTING DEPARTMENT
File, sample received from OAD
Fabric receiving from stores
Recording of fabric as per
lot/shrinkage/width
Sample cutting
Cutting approval
Cut order issue
Receiving of marker
Layering
Cutting (CAM/manual)
Checking
Numbering
Embroidery (if required)
Fusing (if required)
Re-cutting (if required)
Bundling
Quality audit
Pass
Dispatch to stitching unit

25

SHAHI EXPORTS PVT LTD. 2015

WORKFLOW OF THE FINISHING DEPARTMENT
Receive goods from sewing

Kaj / Button marking (manually)

Bartacking

Measurement check (10%)

Button hole stitching

Final checking
Washing
Re-pressing
Button attaching
Tagging
Thread Cutting
Shade matching
Thread suctioning
Folding and putting in poly bags
Ironing
Quality Audit
Initial Checking
Dispatching to packing section
Alteration (if any)

26

SHAHI EXPORTS PVT LTD. 2015

Erudition:

Finishing is one of the most important departments where the final

appearance of the garment is achieved.

Loose threads are deterrent to business

It is better to remove as many unwanted threads at the sewing stage as

possible

Proper carton packing needs to be done for avoiding problems in

shipping

27

SHAHI EXPORTS PVT LTD. 2015

SWOT ANALYSIS

Strength

Weakness

Vertical Integration

Centralized cutting

Specialized units

Technological Advancement

Quality adherence

Centralized Merchandising

Introduction of ERP

Inefficient use of ERP

Efficient planning Department

Communication gaps between team

members

Opportunity

Incentives and support from

government for export oriented units.
International presence
Low labor cost comparing to buying
countries

28

Lack of team work

Threat

International Competition

SHAHI EXPORTS PVT LTD. 2015

STRENGTH:
VERTICAL INTEGRATION
Shahi Export House Company started its operation way back in 1973. Earlier
established in Delhi (Okhla), now in Faridabad, Shahi stands vertically integrated
as one of the largest manufacturer/exporters in India offering ready-to-wear
garments for ladies, men and children. It consists of units including the areas of
Noida, Ranjitnagar, Gaziabad and in Bangalore. Though all the units are in
different areas of Delhi & surrounding areas, there is a smooth flow of work
between all the units. In total there are 18 integrated state-of-the art garment
production centers of Shahi. It has its own integrated unit of fabric mills,
processing units, printing & dyeing, embroidery, wash & finishes.
In the case of fabric capability Shahi has:
Integrated fabric base for both wovens and knits.
Both facilities equipped with German and Swiss state of the art processing
Machines which ensures a high level quality output
Sourcing office in China providing access to diverse fabric bases in the Far
East
Sourcing relationship with all leading mills in India like Arvind, Morarjee,
Ashima, Vardhman and several independents in auto-loom sector.
Sarla Fabrics (Earlier called as Palmprint Textiles), the fabric process house is one
of Indias foremost wet processing plant. All kinds of woven fabrics like poplin,
twill, canvas, gauge, corduroy, chiffon, moss crepe, Rayon, Georgettes, Nets,
Velvets, Cambric, satin, Bosky, lycra etc. are processed to international
standards.
Prints like reactive, vat color discharge on reactive grounds & pigments apart
from some special printing techniques like burnt out effects on polyester-cotton

29

SHAHI EXPORTS PVT LTD. 2015

blends are achieved here. In all, the unit produces about

90,000 mtrs of

processed fabric per day.

This puts Shahi at the top compared to the other export house. It cuts down the
lead-time & prices.
Consistency: when a company is vertically integrated there is a lot of
consistency in the fabric. As from the yarn stage to the weaving stage
medium remains one. Therefore there is no involvement from outside. It
eliminates

the

mediators,

excluding

the

provisions

of

wastages,

transportation costs etc.

Lead times: when every procedure is done under one roof, it abolishes the
time required to transport the material from one place to another.
Reduced transportation cost: transporting a product from one place to
another consumes time & money. For any value added service like
washes, sequins a company send the fabric or garment to other locations
but this is not a case with Shahi everything is done in house thus reducing
transportation cost.

Specialized units
Shahi has divided the Faridabad & Bangalore as woven & knits unit respectively.
By making the units specialized it has help the company in achieving better &
faster production. As the same work is repeated again, it helps staff to
understand faster & better which has led to efficient utilization of resources &
quality shipments.

QUALITY ADHERENCE
Shahi relates itself with quality. Quality department places checks at all the
required areas in all the production departments like, fabric department, cutting
department, sewing department, finishing & packaging department. Other than
this Q.As are also allotted for each specific brand within the organization. The

30

SHAHI EXPORTS PVT LTD. 2015

Q.A department also takes active part in the sampling as it is the base on which
order comes.

Focus on quality and a proven track record

Short shipment : 0.50%

On time delivery : 98%

Quality claims: Nil.

INTRODUCTION OF ERP M3
The whole computerization system helps keep all the departments in link with
each other. The software used is used for almost every function & process Sampling
Costing
Order capturing (job order details, fabric, trims requirements)
Production (Cutting, stitching, finishing, packing, consignment delivery)
Shipment (boxes, box no., place)
Buyers PO entry (Invoicing & Billing)
Accounts/Finance

(interlinking

of

bills,

vouchers,

payments,

salary

management, various allowances)

Time Management (leave records, calculation of bonus, reimbursement
amount etc.)
The top management people can keep track of the status of production just by
a single click. All departments can keep in touch with each other and can know
the status of orders.
Without this whole computerization system it would had been difficult for various
departments to interlink with each other.

EFFECIENT PLANNING DEPARTMENT

The planning department of the company has a very good team of members
which very carefully studies each garment. After the complete analytical study

31

SHAHI EXPORTS PVT LTD. 2015

of each garment the team makes different combinations of folders &
attachments in such a manner that it helps in faster & efficient production that
too with minimal wastage of time.

32

SHAHI EXPORTS PVT LTD. 2015

WEAKNESS
CENTRALIZED CUTTING
There is a centralized cutting in the head unit. Cutting for Delhi NCR production
units is done at the head unit. At times priority is given more to some orders than
that to the others. So, the cutting of the other orders is put to halt. At times when
the production units are short of cut pieces they have to wait for the cutting
department to work on their order, in turn wasting the time and delay in the
production.

TECHNOLOGY
Machines that are being used in the organization in the sewing department
even in the cutting department automatic spreader and cutting machines are
very old and need updating. Investment in the machinery is less.

TIME CONSUMPTION IN THE FINISHING DEPARTMENT (SAMPLING):

The sampling in Shahi has to go within 3 days of receiving the tech pack. The
pattern making, cutting & stitching is done within 2 days but the finishing
department takes more than 1 day to finish a garment. This at times becomes a
messy situation. As the sampling department is too big the finishing department
& the workers are less compared thus a merchant has to always be present
when his/her garment is in finishing department. This affects the efficiency of the
company.

CENTRALISED MERCAHNDISING
The production units are lacking of merchants to follow an order, all the work is
handled and taken care by the merchants in the Faridabad unit. At times it
becomes too messy to track one order as the merchant is sitting in Faridabad
and giving instructions at Bangalore. This creates confusion as the merchant in
Faridabad is not aware of what is going in Bangalore. This eventually increases
the lead time as everything has to be sent to Faridabad merchants for approval
and then sent back. As the lot approval has to be sent to Faridabad after the

33

SHAHI EXPORTS PVT LTD. 2015

approval it is again sent to the production unit, this activity is very time
consuming. Even the P.O. is made by the merchant in Faridabad so if there is
some shortage of fabric it has to be informed in Faridabad after which again a
P.O is raised after which only the fabric is generated.

INEFFICIENT USE OF ERP

The merchants & DMMs are not using the ERP system MOVEX efficiently. The
system is capable of doing lots of things which can reduce the lead time and
increase efficiency of an order, but this is not done. The system is used just to
generate the P.O which is a part of the ERP. The merchandisers have not taken
any classes for the same; they are working on hit & trial method or learnt
something from their seniors.

34

SHAHI EXPORTS PVT LTD. 2015

THREATS
International competition
China, which is the largest exporter, has substantially increased its market share.
Countries like Bangladesh and turkey are very cost effective. China excels in the
industry because of cheap labor, efficient management, higher productivity,
government policies, strong research and development and industrial base.

OPPORTUNITIES
Incentives and support from government for export oriented units:
The government pays duty-drawback i.e. you get the excise duty and import
duty back.

International presence:
SHAHI has an international presence in the global market. It is well-renowned for
its quality and facilities. It is one of the leading exporters of apparel.

35

SHAHI EXPORTS PVT LTD. 2015

Functional Analysis
Service: To make the samples of different stages on time for the approval of the
buyer
PURPOSE: TO ADHERE TO THE HIGH QUALITY AND PROVIDE ON TIME FABRIC &
ACCESORIES
FUNCTIONS
COMPETENCY
Function1
1. Highly skilled labor
To make samples according to
2. Fully equipped infrastructure
the techpack
at all stages
Function 2
1. High quality printing and fabric is used
To
get
approval
of
the
2. Shahi has its own factory for printing
fabric/print, color by the buyer
and mill for fabric
3. Highly organized software for ordering
i.e. MOVEX
Function 3
1. Skilled
personnel,
like
senior
To coordinate with buying house
merchandiser or the DMM do this
team and the buyer
Function 4
To strictly follow the time period
allocated for submission of the
desired sample
Function 5
To handover the production file
to production merchandiser
team

36

1. Lacks
team
management.

work

and

time

Highly organized files are made with details

like
PO
(PURCHASEORDER),TECHPACK,CONSTRUCTION
SHEET,MEASUREMENT
SPECS,MARKER,TEST,REPORT,FABRIC
CARD,TRIM CARD,PDS SHEET ( PRODUCTION
,OB ( OPERATION BULLETIN)

SHAHI EXPORTS PVT LTD. 2015

DEPARTMENT STUDIED: SAMPLING

Sampling procedure
It primarily consists of:
1) Sample making
2) COORDINATION
3) SOURCING
Also filing of techpaks, different patterns, making a cutting order, filling out
submission forms, preparing requisition sheets(for fabric and accessory),
downloading the purchase orders and filling out the necessary details.
A file is handed over by the pre-production department for sampling and
sourcing as the purchase order is received along with the approved proto
sample.
The fit sample is prepared and is sent to the buyer for approval.
Simultaneously, the order is made for the trims & fabric for production.
The fit is then approved and the final pattern is then sent for grading and
marker. The costing is done accordingly.
Follow up is done for the fabric which was ordered around 15 days back.
After approval the GPT samples are also made by the sampling department for
garment packaging test.
The pre-production sample (PP sample) is made and sent to the buyer for
approval.
The production file for the order is made and is handed over to the production
merchandiser for production along with the sealer sample and the sourced
fabric and trims.
BHANE is SHAHIs own online retail brand.
The responsibility for BHANE is:

37

SHAHI EXPORTS PVT LTD. 2015

To source the fabric and trims for the production.

To get approvals on the trims and fabric lots.
To get the grading and marker planning done for the fit samples (which
were given by the BHANE team).
In the end, to make the PP sample and get it approved.
Hand over the file to production manager for production along with the
sealer sample and trims and fabric.

FINDINGS: SAMPLING DEPT.

The most complex stage is getting the approval from the buyer on fabric,
shades, print and fit.

Any delay at any stage can delay the entire order.

The operators in the sampling department are very experienced and

highly skilled. They are explained the construction of any new sample by
the pattern master and the supervisor.

IT plays a crucial role in the merchandising department. All information

regarding the order status is fed into the ERP. This facilitates smooth flow in
the department.

The sampling department as a whole doesnt work on TNA calendar.

The maximum time is spent in the procurement and approval of trims and
fabric.

38

SHAHI EXPORTS PVT LTD. 2015

BIBLIOGRAPHY
1. http://www.scribd.com/doc/219791417/SHAHI-EXPORTS-PRIVATE-LIMITEDSAMPLING#scribd
2. http://www.slideshare.net/smadival/shahi-e
3. http://www.shahi.co.in/
4. Shahi Exports Pvt. Ltd. HR Policy Manual

39