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KG DENIN LIMITED

INTRODUCTION OF ORGANIZATION

COMPANY PROFILE:

We established the creative boutique in 2005 and combined fashion, textile and graphic
design backgrounds to produce comprehensive design outcomes, rich with edgy
originality, beauty and distinction. We a are a Sydney based design trio of print and fabric
surface treatment specialists, whose primary focus is to deliver original, exclusive and
bespoke designs for a broad range of visual applications, particularly textiles. We are
committed to uncovering and servicing clients’ needs while promoting environmental
sustainability and Australian based production in an inspiring and creative way. We also have
a design library, seasonally updated with a range of original artwork that is available for
purchase on an exclusive basis for use in fashion, interiors and lifestyle product design.

We provide our clients with the textile concept as artwork [99% illustrator files] and leave
the production up to our clients’ discretion. We provide technical services also in making the
files’ production ready if suppliers need this. We forecast trends, color and pursue original
concepts with stylistic diversity to produce hand-worked and computer generated Croquis.
These include for fabric and other surfaces. We also do a lot of custom design development
as well as our seasonal collection.

Contact Information:

Company Name: KG DENIN COTTONTEXTILES

Address : No:135,kovai bypass road,

Karur- 639 001.

Tamil Nadu

India

Contact Number : 919095341966


Line of Business:

Parent Line of Business and Top Line of Business has been extracted from National
Industrial Classification code KG DENIN CottonGarments. If company has registered
business with incorrect code or has changed the line of business without informing ROC,
provided information will be incorrect. We take no warranties about accuracy of these
classifications. Sree KG DENIN CottonTextiles Pvt Ltd. is the principle supplier to Sree
Garments, fulfilling their total yarn requirements. Established in 2005, SSMT sources
cotton domestically and from reputable African growers, Using State-of-the-art machinery,
the raw material is woven into the finest quality cotton yarn. Efficient inventory management
systems are in place to ensure a continuous.

The cotton is purchased in KG DENIN Cotton& Africa and processed step by step through
these highly sophisticated machineries to ensure the best quality yarn. Efficient management
of inventory ensures uninterrupted production process for the company. ShriKG DENIN
CottonTextiles Pvt Ltd is the least carbon emitting spinning mill in KG DENIN Cottonas
declared by ETI. It is also certified by FLO Fair Trade, CMIA, Organic Cotton and Oeko-Tex
Certifications. The knitting plant is equipped with hi-tech machines capable of producing a
wide variety of knit finishes and structures. Jacquard, Flat and Circular machines provide a
diverse range of garments in Jersey, Rib and Fleece. A continuous programmed of research
and development ensures that the knitting unit has the capability required to meet the latest
fashion trends.

KG DENIN Cotton Spinners Private Limited Profile:

Corporate Identification Number : U17111TZ2005PTC012112

Company Name: SHRI KG DENIN COTTONTEXTILES

Company Status: Active

ROC: ROC-Coimbatore
Registration Number: 12112

Company Category: Company limited by Shares

Company Sub Category: Non-govt company

Class of Company: Private

Date of Incorporation: 01 September 2005

Age of Company: 10 years, 8 month

Activity: Spinning, weaving and finishing

Company Founder T.Manivannan

Managing Director A.Meenatchi

Total Employees 450

About KG DENIN CottonTextile:

KG DENIN CottonTextile Company LTD though a relatively new venture, has made
remarkable progress in spinning quality yarn. KG DENIN COTTON has an huge production
capability, productivity and a committed team of skilled workers and efficient staff
numbering approximately 1000. Under the guidance of its promoter, Shri Ramesh Kumar
Tibrewal, who personify the true spirit of enterprise, KG DENIN COTTONhas established a
distinct identity in the textile market within a decade of its existence. KG DENIN
COTTONhas a unique inspirational work culture. KG DENIN COTTONrests on strong
ethical and moral foundations, relying on the deeds of wisdom propagated by Swami
Vivekananda, Mahatma Gandhi, and Rabindranath Tagore and our Former President, His
Excellency Dr. A.P.J. Abdul Kalam.

With strong business acumen, successfully demonstrated by its Promoter, the


company has progressed steadily from dealing in cotton waste to the position of eminence it
holds in manufacture of Superior Quality yarn. The location has been chosen to promote
employment generation in the interior and rural areas of Coimbatore district. KG DENIN
COTTONcommitments are not purely business centric. It encompasses a wider societal
obligation. The promoter have chosen, Karuvalur, Karumathampatti, near Coimbatore, as the
plant location. The small underdeveloped village has been chosen to promote a social cause
of, “Enabling Progress through Enterprise”. Further, the plant location meets the business
requirements. The plant is close to major consumption centres like Tirupur, Somanur,
Palladam, Karur, Madurai, and Erode, thereby promising enormous scope for expansion of
the company. At KG DENIN COTTONGARMENTS, learning and sharing of knowledge
becomes an integral part of its work culture. This unique work culture has been able to spin
the work force together. Swami Vivekananda words of wisdom form the back bone of the
entire workforce at KG DENIN COTTONGARMENTS, spinning its success story without
any major hiccups.

INTRODUCTION ABOUT TEXTILES INDUSTRIES

Definition for Textile:

“Pertaining of weaving or to wove fabrics; as textile arts; woven, capable of being woven; formed by weaving;
as textile fabric”
Descriptive of textiles as defined of the raw materials, process, machinery, building, craft, technology,
personnel used in, and the organizations and activities connected with their manufacture. A Latin word
originated from texere, it means to weave. Any cloth or fabric made by weaving or knitting.

Introduction:

The textile industry occupies a unique place in our country. One of the earliest to come into
existence in KG DENIN CottonGarments. It accounts for 14% of the total Industrial production,
contributes to nearly 30% of the total exports and is the second largest employment generator
after agriculture.The KG DENIN textile industry is one of the largest in the world with a
massive raw material and textiles manufacturing base. Our economy is largely dependent on
the textile manufacturing and trade in addition to other major industries. About 27% of the
foreign exchange earnings are on account of export of textiles and clothing alone. The textiles
and clothing sector contributes about 14% to the industrial production and 3% to the gross
domestic product of the country. Around 8% of the total excise revenue collection is
contributed by the textile industry. So much so, the textile industry accounts for as large as
21% of the total employment generated in the economy. Around 35 million people are
directly employed in the textile manufacturing activities. Indirect employment including the
manpower engaged in agricultural based raw-material production like cotton and related trade
and handling could be stated to be around another 60 million.

KG DENIN Textile Industry:


Textile is one of the KG DENIN CottonGarments’s largest industries after
agriculture. It provides direct employment to about 350 lacks people.Besides this, there are a
large number of ancillary industries, which are dependent upon this sector such as
manufacturing various machines, accessories, stores, ancillary item and chemicals. Known
globally for its skilland craftsmanship, the KG DENIN textile industry from soaring to the
height it iscapable, but this is expected to change post January 2005, as the quota are striation
have been removed.

Textiles covers the following sub-segment: -


1) Synthetic fiber/filamentprocessing vise, drawing, texturizing, twisting etc.
2) Yarn: spinning cotton &blends on rotors and ring frames.
3) Weaving/Knitting, Processing and Distribution.

The KG DENIN textile industry is large and divers, unique for its coverage of the entire
gamut of activities ranging from production of raw material to providing the consumers
high value added products, such as fabrics and garments. The key segment of KG DENIN
textiles are divided into Fiber, Yarn, Fabrics and made-ups. The multi- fiber base of KG
DENIN textile comprise natural fibers from polyester, viscose, acrylic, polypropylene and
nylon. Though primarily cotton based textile industry has a growing polyester sector and
is active in processing linen wool and silk.

Overview Textiles Industry:

The KG DENIN textile industry is one the largest and oldest sectors in the
country and among the most important in the economy in terms of output, investment and
employment. The sector employs nearly 35 million people and after agriculture, is the
second-highest employer in the country. Its importance is underlined by the fact that it
accounts for around 4% of Gross Domestic Product, 14% of industrial production, 9% of
excise collections, 18% of employment in the industrial sector, and 16% of the country’s
total exports earnings. With direct linkages to the rural economy and the agriculture sector,
it has been estimated that one of every six households in the country depends on this sector,
either directly or indirectly, for its livelihood.

A strong raw material production base, a vast pool of skilled and unskilled
personnel, cheap labour, good export potential and low import content are some of the
salient features of the KG DENIN textile industry. This is a traditional, robust, well-
established industry, enjoying considerable demand in the domestic as well as global
markets.

Global Textiles:

The glssobal textile and clothing industry is estimated to be worth about US$
4,395 bn and currently global trade in textiles and clothing stands at around US$ 360 bn.
The US market is the largest, estimated to be growing at 5% per year, and in combination
with the EU nations, accounts for 64% of clothing consumption.

The KG DENIN textile industry is valued at US$ 36 bn with exports totalling US$ 17 bn in
2005-2006. At the global level, KG DENIN CottonGarments’s textile exports account for
just 4.72% of global textile and clothing exports. The export basket includes a wide range of
items including cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics,
made-ups and a variety of garments. Quota constraints and shortcomings in producing
value-added fabrics and garments and the absence of contemporary design facilities are
some of the challenges that have impacted textile exports from KG DENIN
CottonGarments.

KG DENIN CottonGarments’s presence in the international market is significant in the areas


of fabrics and yarn.

 KG DENIN Cottonis the largest exporter of yarn in the international market and has a
share of 25% in world cotton yarn exports.
 KG DENIN Cottonaccounts for 12% of the world’s production of textile fibers and
yarn
 In terms of spindle age, the KG DENIN textile industry is ranked second, after China,
and accounts for 23% of the world’s spindle capacity
 Around 6% of global rotor capacity is in KG DENIN CottonGarments

 The country has the highest loom capacity, including handlooms, with a share of 61%
in world loom age.

Textile Industry Structure:

Cotton textiles continue to form the predominant base of the KG DENIN textile
industry, though other types of fabric have gained share in recent years. In 1995-96, the
share of cotton and manmade fabric was 60% and 27% respectively. More recently, cotton
fabrics accounted for 46% of the total fabric produced in 2005-06, while man-made fibers
held a share of 41%. This represents a clear shift in consumer preferences towards man-
made fabric.
The Textile and Apparel supply chain
The fiber and yarn-specific configuration of the textile industry includes almost all types of
textile fibers, encompassing natural fibers such as cotton, jute, silk and wool; synthetic /
man-made fibers such as polyester, viscose, nylon, acrylic and polypropylene (PP) as well as
multiple blends of such fibers and filament yarns such as partially oriented yarn (POY). The
type of yarn used is dictated by the end product being manufactured.The Man-made textile
industry comprises fiber and filament yarn manufacturing units of cellulosic and non-
cellulosic origin. The cellulosic fiber/yarn industry is under the administrative control of the
Ministry of Textiles, while the non-cellulosic industry is under the administrative control of
the Ministry of Chemicals and Fertilizers.

As in January 2006, there were 1779 cotton/man-made fiber textile mills in the organized
sector, with an installed capacity of 34.1 million spindles and 395,000 rotors. Of these, 218
were composite mills which accounted for just 3% of total fabric production, with 97% of
fabric production happening in the unorganized segment. Cloth production in the mill sector
has fallen from 1,714 million sq mtrs in 1999-2000 to a projected 1,493 million sq mtrs in
2005-06, declining at a rate of 2% per annum. As a result, the number of sick units in the
organized segment has also been growing rapidly.

The competitiveness of composite mills has declined in comparison to the power looms in
the decentralized segment. Policy restrictions relating to labour laws and the fiscal
advantages enjoyed by the handloom and power loom sectors have been identified as two of
the major constraints responsible for the declining scenario of the mill sector.Nonetheless,
overall cloth production in the country has been growing at 3.5% per annum since 2000,
with growth driven largely by the power loom sector. Being the largest manufacturer of
fabric in the country, the power loom sector produces a wide variety of cloth, both grey as
well as processed.

KG DENIN TEXTILE HISTORY:

KG DENIN Cottonhas a diverse and rich textile tradition. The origin of KG DENIN textiles
can be traced to the Indus valley civilization. The people of this civilization used homespun
cotton for weaving their garments. Excavations at Harappa and Mohenjo-Daro, have
unearthed household items like needles made of bone and spindles made of wood, amply
suggesting that homespun cotton was used to make garments. Fragments of woven cotton
have also been found from these sites. The history of textile is almost as old as that of human
civilization and as time moves on the history of textile has further enriched itself. In the 6th
and 7th century BC, the oldest recorded indication of using fiber comes with the invention of
flax and wool fabric at the excavation of Swiss lake inhabitants.

In KG DENIN Cottonthe culture of silk was introduced in 400AD, while spinning of cotton
traces back to 2 3000BC. In China, the discovery and consequent development of sericulture
and spin silk methods got initiated at 2640 BC while in Egypt the art of spinning linen and
weaving developed in 3400 BC. The discovery of machines and their widespread application
in processing natural fibers was a direct outcome of the industrial revolution of the 18th and
19th centuries. The discoveries of various synthetic fibers like nylon created a wider market
for textile products and gradually led to the invention of new and improved sources of natural
fiber. The development of transportation and communication facilities facilitated the path of
transaction of localized skills and textile art among various countries.
The first literary information about textiles in KG DENIN Cottoncan be found in the Rig
Veda, which refers to weaving. The ancient KG DENIN epics the Ramayana and the
Mahabharata also speak of a variety of fabrics of those times. The Ramayana on the one hand
refers to the rich styles worn by the aristocracy and on the other the simple clothes worn by
the commoners and ascetics.KG DENIN Cottonhad numerous trade links with the outside
world and the KG DENIN textiles were popular in the ancient world. The KG DENIN silk
was popular in Rome in the early centuries of the Christian era. Hoards of fragments of
cotton material originating from Gujarat have been found in the Egyptian tombs at Fostat,
belonging to 5th century A.D. Cotton textiles were also exported to China during the heydays
of the silk route.

THE COTTON TEXTILE INDUSTRY:

The cotton textile industry is one of the oldest and most firmly established major industries.
There is reason to believe that cotton was first grown and put to use in KG DENIN
Cottonbefore where else in the world. KG DENIN Cottonhas been a manufacturing nation
and an exporter of cotton fabrics to all nations. Thus, the cotton textile industry acquired the
characteristics of trusty KG DENIN and later to travel to other parts of the world. The dignity
of man is raised to an appreciable level due to the evolution of textiles industry. It consists of
Handloom, Power loom and Composite mills (Spinning and Weaving) sectors. The industry
has been exporting its products for more than 3,000 years and is now strengthened with the
collaboration of other allied industries.
The industry is spread across all the states of KG DENIN Cottonbut two thirds of the textile
mills are concentrated in Gujarat, Maharashtra and Tamilnadu with 1,460 organized units, 32
million spindles, 1.7 million power looms, 4 million handlooms and a large number of small,
medium and large processing houses. The cotton textile industry is mainly a private sector
industry, Gujarat and Maharashtra account for 50 per cent of the total spindles installed and
70 per cent of the tota1 100ms in the cotton textile industry.

ALL ABOUT TEXTILE INDUSTRY:

The major categories of textiles are linens and domestic products towels. Shower curtains,
bathroom ensemble, table linen / damask and bed spread are categorized under linens,
product such as sheets cases mattress pads, blankets and blanket covers comforters and quilts,
embroidery and lace are coming under domestic products. However based on exports are HS
code, Home textiles can broadly be classified in the following categories.

1. Bed lines

2. Bath liner

3. Table linen & Kitchen linen

4. Curtains, drapes and furnishing fabr5. Blankets

6. Carpets & Floor covering

7. Made Ups

Textiles industry

1)Cottage stage:

Textile manufacturing by pre-industrial methods


There are some indications that weaving was already known in the Paleolithic. An indistinct
textile impression has been found at Pavlov, Moravia. Neolithic textiles were found in pile
dwellings excavations in Switzerland and at El Fayum, Egypt at a site which dates to about
5000 BC.

The key British industry at the beginning of the 18th century was the production of textiles
made with wool from the large sheep-farming areas in the Midlands and across the country.
This was a labor-intensive activity providing employment throughout Britain, with major
centers being the West Country; Norwich and environs; and the West Riding of Yorkshire.

The export trade in woolen goods accounted for more than a quarter of British exports
during most of the 18th century, doubling between 1701 and 1770. Exports of the cotton
industry – centered in Lancashire – had grown tenfold during this time, but still accounted for
only a tenth of the value of the woolen trade. Before the 17th century, the manufacture of
goods was performed on a limited scale by individual workers. This was usually on their own
premises and goods were transported around the country. clothiers visited the village with
their trains of pack-horses. Some of the cloth was made into clothes for people living in the
same area, and a large amount of cloth was exported. Rivers navigations were constructed,
and some contour-following canals. In the early 18th century, artisans were inventing ways to
become more productive.

In Roman times, wool, linen and leather clothed the European population, and silk,
imported along the Silk Road from China, was an extravagant luxury. The use of flax fiber in
the manufacturing of cloth in Northern Europe dates back to Neolithic times. During the late
medieval period, cotton began to be imported into northern Europe. Without any knowledge
of what it came from, other than that it was a plant, noting its similarities to wool, people in
the region could only imagine that cotton must be produced by plant-borne sheep. John
Mandeville, writing in 1350, stated as fact the now-preposterous belief:

"There grew in KG DENIN Cottona wonderful tree which bore tiny lambs on the endes of its
branches. These branches were so pliable that they bent down to allow the lambs to feed
when they are hungry."
Spindles or parts of them have been found in archaeological sites and may represent one
of the first pieces of technology available. They were invented in KG DENIN Cottonbetween
500 and 1000 AD.

2) Industrial Revolution:

Textile manufacture during the Industrial Revolution

The woven fabric portion of the textile industry grew out of the industrial revolution in the
18th Century as mass production of yarn and cloth became a mainstream industry. In 1734 in
Bury, Lancashire, John Kay invented the flying shuttle — one of the first of a series of
inventions associated with the cotton woven fabric industry. The flying shuttle increased the
width of cotton cloth and speed of production of a single weaver at a loom. Resistance by
workers to the perceived threat to jobs delayed the widespread introduction of this
technology, even though the higher rate of production generated an increased demand for
spun cotton.

19th century developments:

With the Cartwright Loom, the Spinning Mule and the Boulton and Watt steam engine, the
pieces were in place to build a mechanized woven fabric textile industry. From this point
there were no new inventions, but a continuous improvement in technology as the mill-owner
strove to reduce cost and improve quality. Developments in the transport infrastructure; that
is the canals and after 1831 the railways facilitated the import of raw materials and export of
finished cloth.
Thirdly, also in 1830, Richard Roberts patented the first self-acting mule. Stalybridge mule
spinners strike was in 1824,this stimulated research into the problem of applying power to the
winding stroke of the mule. The draw while spinning had been assisted by power, but the
push of the wind had been done manually by the spinner, the mule could be operated by
semiskilled labor. Before 1830, the spinner would operate a partially powered mule with a
maximum of 400 spindles after, self-acting mules with up to 1300 spindles could be built.

20th Century:

Major changes came to the textile industry during the 20th century, with continuing
technological innovations in machinery, synthetic fiber, logistics, and globalization of the
business. The business model that had dominated the industry for centuries was to change
radically. Cotton and wool producers were not the only source for fibers, as chemical
companies created new synthetic fibers that had superior qualities for many uses, such as
rayon, invented in 1910, and DuPont's nylon, invented in 1935 as in inexpensive silk
substitute, and used for products ranging from women's stockings to tooth brushes and
military parachutes.
Industry integration and global manufacturing led to many small firms closing for good
during the 1970s and 1980s in the United States, during those decades, 95 percent of the
looms in North Carolina, South Carolina and Georgia shut down, and Alabama and Virginia
also saw many factories close.

21st century:

In 2002, textiles and apparel manufacturing accounted for $400 billion in global exports,
representing 6% of world trade and 8% of world trade in manufactured goods. In the early
years of the 21st century, the largest importing and exporting countries were developed
countries, including the European Union, the United States, Canada and Japan.The countries
with the largest share of their exports being textiles and apparel were as follows (2002):
OVERVIEW OF KG DENIN TEXTILE INDUSTRY

Background:
KG DENIN CottonTextile Industry is one of the leading textile industries in the world.
Though was predominantly unorganized industry even a few years back, but the scenario
started changing after the economic liberalization of KG DENIN economy in 1991. The
opening up of economy gave the much-needed thrust to the KG DENIN textile industry,
which has now successfully become one of the largest in the world. KG DENIN Cottontextile
industry largely depends upon the textile manufacturing and export. It also plays a major role
in the economy of the country. KG DENIN Cottonearns about 27% of its total foreign
exchange through textile exports. Further, the textile industry of KG DENIN Cottonalso
contributes nearly 14% of the total industrial production of the country. It also contributes
around 3% to the GDP of the country. KG DENIN Cottontextile industry is also the largest in
the country in terms of employment generation. It not only generates jobs in its own industry,
but also opens up scopes for the other ancillary sectors. KG DENIN Cottontextile industry
currently generates employment to more than 35 million
people. KG DENIN textile industry can be divided into several segments, some of which can
be listed as below:
 Cotton Textiles
 Silk Textiles
 Woolen Textiles
 Readymade Garments
 Hand-crafted Textiles
 Jute and Coir

Government initiatives and regulatory framework

Government Initiatives
The Government of KG DENIN Cottonhas promoted a number of export promotion policies
for the Textile sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14.
This also includes the various incentives under Focus Market Scheme and Focus Product
Scheme; broad basing the coverage of Market Linked Focus Product Scheme for textile
products and extension of Market Linked Focus Product Scheme etc. to increase the KG
DENIN shares in the global trade of textiles and clothing. The various schemes and
promotions by the Government of KG DENIN Cottonare as follows - It has allowed 100 per
cent Foreign Direct Investment (FDI) in textiles under the automatic route.
Welfare Schemes:
The Government has offered health insurance coverage and life insurance coverage to 161.10
million weavers and ancillary workers under the Handloom Weavers' Comprehensive
Welfare Scheme, while 733,000 artisans were provided health coverage under the Rajiv
Gandhi Shilpi Swasthya Bima Yojna.
E-Marketing:
The Central Cottage Industries Corporation of KG DENIN Cotton(CCIC), and the
Handicrafts and Handlooms Export Corporation of KG DENIN Cotton(HHEC) have
developed a number of e-marketing platforms to simplify marketing issues. Also, a number
of marketing initiatives have been taken up to promote niche handloom and handicraft
products with the help of 600 events
all over the country.
Skill Development:
As per the 12th Five Year Plan, the Integrated Skill Development Scheme aims to train over
2,675,000 people within the next 5 years (this would cover over 270,000 people during the
first two years and the rest during the remaining three years). This scheme would cover all
sub sectors of the textile sector such as Textiles and Apparel; Handicrafts; Handlooms; Jute;
and Sericulture.

Credit Linkages:
As per the Credit Guarantee program, over 25,000 Artisan Credit Cards have been supplied to
artisans, and 16.50 million additional applications for issuing up credit cards have been
forwarded to banks for further consideration with regards to the Credit Linkage scheme.
Financial package for waiver of overdues:
The Government of KG DENIN Cotton has announced a package of US$ 604.56 million to
waive of overdue loans in the handloom sector. This also includes the waiver of overdue
loans and interest till 31st March,2010, for loans disbursed to handloom sector. This is
expected to benefit at least 300,000 handloom weavers of the industry and 15,000
cooperative societies.

Textiles Parks:
The KG DENIN Government has given approval to 40 new Textiles Parks to be set up and
this would be executed over a period of 36 months. The new Textiles Parks would leverage
employment to 400,000 textiles workers.The product mix in these parks would include
apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles
including medical textiles, carpet and power loom parks.

VISION AND MISSION

Vision of Textiles Industry:

 The KG DENIN Cottontextile industry has strength across the entire value chain from
natural to man-made fiber to apparel to home furnishings. Its share in the nation’s
GDP is 6% and in exports is 13%. The sector is the second largest employer after
agriculture. After the phasing out of export quotas in 2005 KG DENIN
CottonGarments’s export performance has been below expectations. Its share of
global exports is around 5% whereas it was expected to rise quickly towards China’s
level. The Chinese share in global exports is 39%. Vietnam and Bangladesh have
shown remarkable success. Vietnam could achieve a peak export growth rate of 30%
while Bangladesh could achieve a growth rate of 18%.
 Taking innovative measures in partnership with the industry and learning from
experience, KG DENIN Cottoncould aspire to achieve 20% growth in exports over
the next decade. In any case the achievement of 15% growth rate in exports should be
feasible. In the domestic market, sustaining an annual growth rate of 12% should also
not be difficult.
 This implies that with a 12% CAGR in domestic sales the industry should reach a
production level of US$ 350 billion by 2024-25 from the current level of about US$
100 billion for the domestic market. With a 20% CAGR in exports KG DENIN
Cottonwould be exporting about US$ 300 billion of textile and apparel by 2024-25
while with the lower15% CAGR in exports, KG DENIN Cottonwould be exporting
about US$ 185 billion of textile and apparel by 2024-25.Considering the targeted
growth in exports, KG DENIN Cottonshould by then have a market share of 15% to
20% of the global textile and apparel trade from the present level of 5%.
 During this period KG DENIN Cottonshould also attempt a structural transformation
whereby it becomes a net exporter of finished products. This would imply that growth
rates in exports of fibers and yarn should start declining and growth rates of apparel,
homes furnishing, technical textiles and other finished products should grow very
rapidly. This would maximise employment generation and value creation within the
country and the fulfilment of the Prime Minister’s Vision of “Make of KG DENIN
CottonGarments”.

Mission of the Industry:

We believe in an inspiration that us to stretch ourselves, to challenge the limits and overcome
them. We also believe that, as time changes, one must evolve in thinking.Each
accomplishment marks a new beginning and inspires us to focus on tomorrow in terms of
new possibilities.Cutting edge technologies that will cater to the. Interests of the customers
and investors. Be innovative not only to invent new technology but also to fulfill the ever-
changing needs of society and environment.

KG DENIN CottonTextile And Industries Limited. Is amongst the most efficient textile
companies in textile industry, As a company we strive to:-

 To excel in our core areas of competence i.e., manufacture of Yarn And Home
Textiles.
 To uphold and nature the core values of transparency, empowerment, accountability,
independent monitoring and environmental consciousness.
 To give highest priority to customer satisfaction.
 To develop new varieties of yarn.
 To upgrade production facilities and technology continuously.
 To grow globally through cost competitiveness and excellence in quality.
 To fulfill the aspiration of customers, employees, financers and of the society in
general.
 To recruit and retain skilled manpower, reward superior performance.
 To maximize shareholder`s wealth through good corporate Governance.

COMPETITORS

 Ahmedabad Spinning and Weaving Company Limited

 Binny and Co.


 Birds Jute and Export
 Bombay Dyeing

 Fabindia
 Filatex India

 Grasim Bhiwani Textiles

 Kalyan Sarees
 Kalyan Silks
 Kapotex Industries
 Kesoram Rayon
 Khatau
 Kinfra Apparel Park

 Lakshmi Machine Works


 Lakshmi Mills

GLOBAL SCENARIO

The Ministry significantly stepped up external economic engagement with the other
information and negotiated a number of bilateral agreements to gain significant market
access. Various procedural bottlenecks in exports were also addressed while supporting the
textiles exports sector through various provisions of the Foreign Trade Policy and the other
policy initiatives to enable the sector to increase market share in the global textiles markets.

As a result of focused efforts made by the Ministry of Textiles, not only the declining trend
of textile exports was arrested but a significant growth in export was witnessed during 2013-
14. The Government of India is encouraging investments through increasing focus on
schemes such as Technology Up gradation Fund Scheme (TUFS) and cluster development
activities.

The Ministry of Textiles has commenced an initiative to establish institutes under the public-
private partnership (PPP) model to encourage private sector participation in the development
of the industry. Current Scenario of

Textile Machinery. Page 16 Textile Machinery Industry Machinery Production Status World
production of textile machinery annually is over The major manufacturers of textile
machinery are Italy, Germany, Switzerland, France and now China. With the growing
demand in the export market of textile products, India can avail of this opportunity by
upgrading its textile industry especially in the area of modernization of its weaving and
processing sectors. China is leading in the field of textile exports today because they installed
a large set-up of spindles, rotor and shuttle less weaving machines. Today, China is
manufacturing the entire range of machineries for the textile industry, not only spinning
weaving and processing but also knitting, embroidery and plants for the non-woven industry
MARKET SHARE OF THE COMPNAY:

The “MARKET SHARE ” area contains a quick snapshot of what is currently happening
with the major stock markets that we cover. The yellow chart shows you the intraday
price action for one full trading day. A dashed line on the chart shows you where
yesterday's closing value occurred so you can compare it to today's trading action.

Initially, the chart shows you the action for the Dow Jones Industrial Average, but you
can use the tabs above the chart to change the display. You can also click on any of the
indexes listed in the table below the chart to see that index.

The table below the chart shows you gain/loss for each of the averages listed. When the
market is open, the gain/loss is for the current day's price action. When the market is
closed, it is for the price action on the most recent trading day.

.
CHAPTER –II

INTRODUCTION

An internship is an opportunity offered by an employer to potential employees,


called interns, to work at a firm for a fixed, limited period of time. Interns are usually
undergraduates or students, and most internships last for any length of time between one
week and one months.

Internships also called "placements", "work placements" or "industrial placements" may be


part-time or full-time. They are usually part-time if offered during a university semester and
full-time if offered during the summer, winter or Easter holidays, when they typically last 4-
12 weeks. Placements are usually full-time, and take place irrespective of term time or
holiday time.

Internships offer students a period of practical experience in the industry relating to their field
of study. This experience is valuable to students as a means of allowing them to experience
how their studies are applied in the "real world", and as work experience that can be highly
attractive to potential employers on a candidate's

Why companies offer internships:

Companies offer students internships for a variety of both short and long-term reasons:

Short-term: In the short-term, internships provide employers with cheap and sometimes even
free labor, for what is usually low-level office based tasks, such as photocopying, filing or
report drafting.

Long-term: Long-term, employers can use internships as an effective way of advertising their
graduate jobs and/or schemes to students. Graduate job surveys suggest that almost half of all
graduate employers hire at least 20% of their ex-interns for graduate jobs and training
schemes. It is highly likely that graduates will return to the organization that hired them as an
intern for full-time employment after leaving university.

The prospect of hiring ex-interns after graduating is also very appealing to employers because
these graduates already understand the company and the job they will be doing. Ex-interns
require little or no training.

SCOPE OF THE STUDY:

An internship provides a great opportunity for prospective employees to gain experience in a


particular field or industry, determine if they have an interest in a particular career, create a
network of contacts, or gain university module credits. Interns may also have the possibility
of putting themselves forward for forthcoming opportunities for paid work, during their
internship.

OBJECTIVE OF INTERNSHIP TRAINING:

Student and graduate internships are very important, because they substantially
increase the chance of graduates finding employment. To an employer, a candidate who has
spent time working for a firm within a particular industry shows dedication to a particular
career, enthusiasm for a particular job and importantly, has experience.

1. Internships are Great Experience

Internships are also very useful to interns themselves as they offer the chance to find
out what working for a particular company, or within a certain industry, is really like.
Internships also allow interns to make contacts with managers and recruiters, which
can later be used to negotiate full-time employment.

2. Getting an Internship

Internships can be highly competitive, in fact most internships receive more


applications than employer's graduate schemes themselves. Often candidates are
required to visit companies for interviews and/or assessment days where they must
impress recruiters sufficiently in order to be offered the internship.
3. Internships can get you Hired

It is not unusual for graduates to return to the organization who hired them as an
intern, for full-time employment. Graduate recruitment surveys have found that
almost half of all employers convert at least a fifth of their interns into
permanent staff members.

LIMITATION OF STUDY

There were some limitations in conducting the organization study at Nutro vessels indo
groups Ltd. Those are Following

1. There were difficulties in obtaining data from executives and managers due to their
busy work schedule.
2. An in-depth study of the company could not be carried out due to shortage of time.
3. The reliability of data used for study is largely depends upon the companies reports
and the information given by executives.
4. The company has the limitation to disclose their financial details, so a detailed
analysis of financial performance of the company is not possible.

CHAPTER – III

KG DENIN ORGANIC COTTON INDUSTRY

FUNCTIONAL DEPARTMENT
1. Production Department
2. HR Department
3. Finance Department
4. Marketing Department
5. Sales Department
6. Purchasing Department
7. Export and Imports Documentation

PRODUCTION DEPARTMENT

Production:
Textile manufacturing is a major industry. It is based on the conversion of fiber into yarn,
yarn into fabric. These are then dyed or printed, fabricated into clothes. Different types of
fiber are used to produce yarn. Cotton remains the most important natural fibers, so is treated
in depth. There are many variable processes available at the spinning and fabric-forming
stages coupled with the complexities of the finishing and coloration processes to the
production of a wide ranges of products. There remains a large industry that uses hand to
achieve the same results.

Ever expanding apparel and clothing industry poses new challenges before the
textile manufacturers and producers. Clothing industries have to consider the needs of all-
men, women, kids, infants and animals too. Newer kinds of textiles and upcoming producers
other than the traditional ones call for judicious selection of products. Here you can source
factories and companies according to your business needs for better profit margins.

Production Department Chart:


Types of Fibers in Textiles Industry:

1. Plant Fibers
2. Animal Fibers
3. Man-made fibers
4. Synthetic Fibers

Fiber production:

All textiles are made up of fibers that are arranged in different ways to create the
desired strength, durability, appearance and texture. The fibers can be of countless origins,
but can be grouped into four main categories. Natural fibers, with the exception of silk, have
a relatively short fibers length, measured in centimeters. Silk and man-made fibers have on
the other hand very long fiber lengths (filaments) ranging from hundreds of meters to
kilometers long.

Plant Fibers:
Plant fibers consists of cellulosic material, normally derived from cotton, linen,
hemp or bamboo, but more or less any plant with extractable cellulose can be used. Cotton is
by far the most commonly used plant fibers and the cultivation of cotton is enormously
resource-intensive, with high inputs of water, pesticides, insecticides and fertilizers leaving a
large toxic footprint where grown, if not cultivated organically or under specific sustainable
conditions.

Animal fibers:

Animal fibers consist of proteins. Wool and silk are the most commonly used fibers
from this group, but the wool can come from a number of different animals. In order to make
animals grow faster and produce higher yields of wool, pesticides and insecticides are used to
prevent disease. Dipping is a common practice to control parasites in sheep farming, making
use of both organic phosphates as well as synthetic pyrethroid. After the wool fibers have
been sheared they are treated with chemicals during the scouring and washing process.

Man-made fibers:

Man-made fibers such as viscose (rayon) or lyocell are based on cellulosic raw material,
normally from wood pulp. They are heavily treated with chemicals before the new fibers is
spun. The whole process of producing fibers from wood pulp is very resource-intensive,
involving the use of several hazardous substances.
Synthetic fibers:

Synthetic fibers are made from monomers sourced from fossil oil feedstock’s,
which are subsequently polymerized into different fibers. Given all the possible monomers
that can be made from a synthetic feedstock, the possible combinations are endless. However
the most common synthetic fibers is polyester, followed by polyamide, polyacrylic and
aramide. Depending on the monomer used to produce the fibers, an endless number of
chemicals may be used in the process. For some of the synthetic fibers such as polyester,
dyeing can be accomplished already when the fibers is manufactured.

Yarn production:

When the fibers has been harvested or produced the next step is to spin the
fibers into a yarn. It is easy to believe that this step, which is a mechanical one, uses no
chemicals. But in order to increase the strength of the fibers, increase fibers cohesion and
reduce friction during the spinning process, spinning oils are added.

Fabric production

The core of textile manufacture is fabric production. Fabrics can be created in


many different ways, the most common being weaving, knitting or through production of
non-woven fabrics. To prevent the yarn from breaking during these processes, it is important
to strengthen the yarn and reduce friction. Sizing chemicals and lubricants are therefore
added.

Dyeing and printing:

During dyeing and printing both hazardous chemicals and dyestuffs are used. Dyes
used for dyeing, can also be used for printing, but must then undergo the same fixation and
washings steps as after the dyeing process. The most common way to print a fabric in full
width is to use pigment prints, where the pigments stick to a surface using polymeric resin or
a binder. No washing processes are needed. For garment printing , plastisol printing is very
common. The PVC-based paste often contains hazardous chemicals, such as phthalates, but
there are also alternatives based on acrylate or polyurethane.
Dyeing can take place in several steps when processing the textile. It can be done when
spinning the synthetic or man-made fibers, as loose natural or regenerated fibers and in the
form of yarns or fabrics. Garment dyeing is also common.

For fiber blends, two types of dyed fibers can be spunned together e.g. viscose and wool.

Full-width printing is carried out on pre-treated fabrics, but it is also possible to put a print on
a garment or manufactured textile product by screen or transfer printing. Digital printing is
another method.

There are other printing techniques as discharge and resist print using dyes and chemicals.
This includes washing to get rid of surplus dyes and residues.

Finishing treatments:

This step of the process is all about adding special technical properties or an
aesthetic appeal to the finished fabric. Depending on the properties desired, such as flame
retardance, enhanced water resistance, antibacterial treatment, protective coatings or specific
fashion treatments, a diverse range of chemicals are used. Some examples are given below.

Handle modification

When the fabric has the desired colour and properties, it is made into finished
products such as sweaters, jeans, shoes or other special items like carpets, furniture or car
seats. This step includes processes such as cutting, sewing and the addition of buttons and
zippers, for example. In some cases dyeing and printing of the finished garments, with the
fabric only pre-treated, occurs at this step. In garment dyeing there are a lot of dyestuff and
chemicals used. Some times dyestuff with quite bad wash permanence are chosen to give the
clothing in fashion a worn out look. For garment printing, Plastisol prints (PVC) are very
common, but there are other types available for example based on acrylate or polyurethane.

Auxiliary chemicals:
A range of chemicals is normally used in most steps of the production process to
assist the tasks of other chemicals. Such general auxiliaries include:

• Acids

• Bases

• Salts

• Detergents

• Surfactants

• Sequestrates

• Stabilizers

• Solvents

• Enzymes

HR DEPARTMENT

Introduction:

Training & Employee Welfare Competent and committed workforce is at the core
of our success as an internationally acclaimed organization. Our employees are our most
valuable assets. We continuously strive to keep them updated with the latest in trends and
technology by means of training programmers scheduled at periodic intervals. Therefore,
they are kept attuned to the constantly changing requirements of a demanding and discerning
market. Human resources strategies play a key role in the development of textile enterprises,
both in day-to-day activities and long-term objectives. HR is responsible for enhancing the
capacity of the sales department in negotiation and contract management, motivating staff
through benefits programs and creating conditions that facilitate technological advancement.
Whether your company operates in the United States or has subsidiaries in other countries,
your human resources strategies should be designed to meet your objectives.
HR Department Chart:

Recruitment:

Textile industries promote the work of fashion designing, product pattern and
styles, so your human resources strategy should focus on recruiting suitable skilled
manpower for the production function as well as sales and marketing departments. Personnel
in these areas are crucial to the productivity, performance and bottom line of your company.
If you operate globally, recruit talented local candidates whose overall compensation will
likely be several times lower than deployed personnel with similar skill levels from the home
office.

SOURCES OF RECRUITMENT
The company recruit, train, develop and rewarded employees within the
organization in such a way so that they can prove themselves as assets for the
company. Company has professional management and skilled technical staff and trained
labor force. A present figure of total employees in organization is approximately 200
including management staff and labor force. Company gives on job training to employees.

Training:

Human resources personnel have to develop programs to train employees to


adapt to new technology that improves production operations in a changing garment market.
Typically, such training courses help employees enhance their career growth and update new
products for competitiveness. You also will need soft skills training courses on sales and
marketing as a strategic management endeavor for increased sales volumes. Human resources
should have a qualification system for existing and new employees to determine their
respective training needs. For best results, align the training programs in home and overseas
subsidiaries with your firm’s strategic goals and objectives.

Compensation Policy:

Your human resources strategy should establish a salary and compensation policy
to encourage your existing workforce to stay and attract qualified candidates to your firm.
Perform periodic reviews of salary levels to ensure workers are remunerated competitively.
Incorporate an incentive system based on employees’ performance, such as instant bonuses
for the sales team once they get contracts or year-end bonuses for reaching performance
targets. Determine compensation for overseas subsidiaries based on company regulations and
the dynamics in the labor market.

Work Environment:

Human resources should ensure a favorable working environment. Implement safety


and security measures, such as having fire alarms, first aid and monitoring systems in place.
Establish a professional working environment. Spell out job descriptions to avoid confusion.
An open door policy can improve communication and productivity when implemented
correctly. Integrate diversity by accommodating cultural values such as religious holidays or
prayer times, especially for overseas branches. Hold regular team-building events to connect
workers across departments and management, as well as reduce working stress.

Working OF HR Department:

Human resources is a somewhat vague term that doesn't capture well the scope of the duties
in the department. While human resources staff handles many of the matters pertaining to the
employees of a company, such as recruiting and benefits management, they also work with
management to help develop long-term strategies for the growth and development of a
company. HR departments often act as a middleman between employees and management
and should be where employees go for KG DENIN company information.

The Following are Working of HR Department:

 Hiring
 Compensation
 MOTIVATION METHODS
 LABOUR WELFARE FACILITIES
 PAY ROLE PROCESSING

Hiring:

The first point of contact a prospective employee has with a company is generally
through the HR department. Specific duties vary depending on the size of the company and
department, but HR typically places advertisements for new employees and may attend job
fairs and handle other recruiting duties. Staff will screen resumes, check references and
perform any necessary background checks, and often conduct first interviews with applicants,
coordinating follow-up interviews with other company departments and managers. HR
performs orientations of new hires, informing them of policies, procedures, benefits and other
relevant information.
Compensation:

Some companies offer new employees letters of employment or employee


contracts, which are drafted by HR staff. In some companies, particularly small businesses,
HR will take on some payroll duties, such as tracking vacation time and pay, maintaining a
holiday schedule, creating policies on flexible work hours and updating records when
employees are promoted or transfer departments. Employee benefits, such as health
insurance, retirement plans, transportation subsidies and other perks, are considered part of
the overall compensation package and are administered by the HR department. In the big
picture, HR monitors salary and wages within the company's industry to ensure compensation
remains competitive. The department also helps management map out pay structures within
the company.

MOTIVATION METHODS

There are motivation classes and all conducted by various persons and attendance
award is given to all employees who are present in the mill for a certain number of days.

LABOUR WELFARE FACILITIES


There are several welfare facilities some are canteen, rest room recreation room, library etc.

PAY ROLE PROCESSING


Pay role is according to the hierarchy of the organization. For the Managers and for
the staff as per the Government norms the salary will be there, for the permanent workers the
daily wages will be about 175 and for the trainees 125 excluding the other beneficial
payments and allowances.

HR POLICIES & FRAME WORKING


General Manager, H R and his team in consultation with Management develops HR
policies.

OUTSOURCING OF HRM PROCESS


They are not doing outsourcing process. In future they are plan to this process.
GRIEVANCE HANDLING METHOD
They are giving to counseling to their employees. Union policy framework Arbitration
process Workers participation management

Employee Relations and Performance:

In addition to the initial training in company policies, the HR department often


helps coordinate training and mentoring programs to further develop employee skills.
Training programs may be developed in-house, depending on the resources within the
company, or might be outsourced. HR staff may play a role in employee performance
reviews, handle employee complaints, help resolve disputes and monitor employee
remediation programs. For companies with union employees, HR often oversees union
contracts and assists management with union negotiations. Many companies offer employee
assistance programs that provide counseling and help for a variety of personal issues. While
the programs are generally outsourced in small businesses, the HR department monitors
compliance, contract and privacy issues with the organization handling the program.

Compliance:

A number of compliance issues are important for a company to monitor, regardless of


size. The HR department keeps track of federal and state laws regulating benefits and
compensation, such as the Family Medical Leave Act and laws regarding overtime. The
department also is tasked with ensuring a company complies with the federal regulations of
the Equal Employment Opportunity Commission, including auditing and reporting duties. It
also typically handles disputes between employees, or any claims of sexual harassment or
workers' compensation injuries.
MARKETING DEPARTMENT

Marketing is the main function because without the market the goods cannot be sold out. But in the
field of textile the role of the marketing department is not much necessary, because the entire produced good
are not the finished goods and it should take away for the further process. In Thangam textile they are
marketing the two varieties of yarn as 40and 30 based on their thickness. The 40 is used for making shirts and
60 are used for making pants. In Thangam textile the manager directly deals with the other nearby buyers. So
the marketing department is not done in full effort.

Marketing Department Chart:


Textile Marketing Management:

Apparel and textile marketing management encompasses the design, manufacture


and distribution of goods within the fashion and textile industry. This is a complex business
that requires knowledge in the areas of product development, market research, distribution
and pricing strategies.

To be a successful marketing manager within a fashion and textile enterprise


requires a keen understanding of the consumer and an ability to spot current and upcoming
fashion trends. The marketing manager must be able to identify the potential consumer and
maximize profits through smart buying and efficient pricing. Many job titles exist within the
field, including fashion marketing manager, retail merchandise manager, apparel production
supervisor, fashion buyer, market researcher, visual merchandiser, and fashion forecaster.

Education Information:

According to the U.S. Bureau of Labor Statistics (BLS), most employers


prefer applicants who hold bachelor's or even master's degrees. Students may major in
apparel and retail merchandising, fashion marketing and management and other related areas,
such as business management with an emphasis on the fashion and apparel industry. Students
who wish to pursue degrees in this field may expect to take classes covering a wide array of
topics, such as statistics, mathematics, apparel and textile research methods, consumer
response evaluation and fashion theory.

Fashion and textile marketing is a small part of the broad area of marketing management.
Thus, some of the degrees listed below may also include a wider range of merchandising and
management programs, but they're still applicable to marketing management in the fashion
and textile industry.

 B.S. in Fashion Marketing and Management


 Degree Programs in Fashion Management
 B.A. in Merchandising Management
 M.S. in Fashion

Distance Learning Options

Online learning is another option for the student who wishes to work in marketing
management. Several different types of online degrees are applicable to the fashion industry.
Take a look below to see if you'd be interested in some of the distance learning options that
are available.

 Fashion and Retail Management Online Degrees


 Textile Course Online
 Online Master's Degree in Retail Management

Career Options

While not all of the following jobs are specifically marketing management positions, they're
all related to the fashion industry. Take a look at the Study.com articles below to see if any of
these careers pique your interest.

 Apparel Production Supervisor


 Apparel Manufacturing Career Options
 Fashion Marketing Manager
 Retail Merchandise Manager

Employment Information:

The BLS doesn't report statistics for fashion marketing managers specifically.
However, it was reported that marketing managers across all industries in May 2013 had a
mean annual wage of $133,700, with employment expected to grow by 13% from 2012 to
2022. In the related field of fashion design, employment is expected to decline by 3% during
the same time period. An overall employment decrease in the apparel manufacturing industry
is a contributing factor, according to the BLS.
Every Marketing Manager has the same work. The main motive is to promote the
brand or the product by doing various advertisement campaigns to increase sales of the
company and also make sure that the product satisfies the need of the customer.

In a textile company it won't be any different. The MM needs to understand the needs of the
retailers and the wholesalers and also he needs to understand the pricing and promoting
strategies of his competitors. And accordingly he will do his promotional activities. Textile
companies usually provide raw materials (unfinished product) to its buyers. And the buyers
are actually not the real consumers. These buyers will then take these products and make a
new product like shirt, pant etc. And then they will sell it to the market. So the main job of
the Marketing Manager (MM) of Lakshmi Mills Textile Company is to identify potential
buyers who will further process their material for better product.

FINANCE DEPARTMENT
Necessity of Finance in Textile Industry:

Finance is necessary for the every business. The Thangam textiles have invested over 4.5 cores of
the capital and the other raw materials which include all expenses. This textile has borrowed over a loan from
KG DENIN Organic CottonGarmentsn bank and Vijay bank. Credit purchases are avoided due to proper
financial assistance. Credit purchases make the rate of yarn very high. 70% of the capital is contributed by the
directors and the remaining 30% are borrowed from bank as the loan. They have borrowed the money by
giving proper documents of the company assets to the bank. The KG DENIN Organic CottonGarmentsn
bank is charging about 15% of he interest per annum. Hence it is easy to borrow the money from the banks.
So this firm borrows all their needs with the bank. Hence the finance is the very important for the growth and
development of the business in the field of the textiles. High level investment leads to the more profit
percentage of this type of the business. So, finance is the blood of textiles

KG DENIN Organic Cottonhas been in the midst of a great social, political and economic
change ever since reforms were introduced in various spheres of activity. The country has
greater confidence to take on the competition from developed countries and has attracted
global investors in ever increasing measure. The Textile industry is one of the oldest
industries in KG DENIN Organic CottonGarments. The sector has made significant
contributions in terms of forex earnings and employment and is one of the mainstays of the
economy. KG DENIN Organic CottonGarmentsn Textile Industry occupies a very important
place in the economic life of KG DENIN Organic CottonGarments. It contributes to the KG
DENIN Organic CottonGarmentsn Economy through generation of employment, output and
export earnings. In the financial year 2006, it has been found out that the contribution of this
industry amounts to 14% of the total output generation by the industrial sector. KG DENIN
Organic CottonGarmentsn Textile industry's contribution towards GDP has been estimated to
be hovering around 4% which itself is a commendable one. Fixed asset:
a) Fixed asset stated at cost, net if excise and custom duty where Moved credit on capital
goods is availed except fixed assets taken over as a result of nationalization, which are
stated at values then approved by the board and revalue price less accumulated
depreciation and impairment loss, if any.
b) Cost includes freight and insurance duties and taxes, installation and commissioning
charges and other charges the date of commissioning. In case of imported fixed asset,
it includes in addition above, other charges payable as per foreign exchange contract.
Investment:
a) Long term investments are stated at the cost of acquisition. However
provisions for diminution are made to recognize a decline, other than
temporary in the value of long-term investment.
b) Current investments are stated at the lower of cost or fair market value.

Depreciation:
a) Depreciation of fixed asset/other than costing upto Rs. 5000/- has been provided pro-
vata on straight line method, in accordance with circular no : 14(93), file no :
1/12/92CL-W dated 20th Dec 1993 of the Government of KG DENIN Organic
CottonGarments, Ministry of Law & Justiceand Company Affairs, Department of
Company Affairs at rates specified in scheduleXIV of the Companies Act, 1956.
b) Depreciation on fixed asset costing Rs. 5000/- or less at the time of acquisition has-
been provided 100% for the full year, irrespective of the date of acquisition’s
c) Premium paid on leasehold properties and amortized over the respective lease period.

Inventory valuation:
a) Raw materials in stock at variety wise monthly Weighted Average Cost on net
realizable value whichever is lower.
b) Raw material in transit and finished goods (packed yarn ): at cost or net
realizablevalue whichever is lower.
c) Finished goods at depot (yarn): at lower cost of realizable value.
d) Finished goods at related depots/duty paid godowns - cost including excise duty paid
or net realizable value whichever is lower.
e) Stores and spares: at Weighted Average Cost or net realizable whichever is lower.
f) Materials in process: at cost or net realizable value whichever is lower. At expenses
tobe incurred to make them ready for sale.
g) Scrap and saleable wastes: at net realizable price.
h) Usable waste: at net realisable price whichever is lower.

Analysis of Financial Efficiency:


Financial efficiency is a measure of the organizations ability to translate to its
financial resources into mission related activities. Financial efficacy is desirable in all
organization of individual mission. It measures the intensity with which a business uses it
assets to generate gross revenue and the effectiveness of producing, purchasing, pricing,
financing, and marketing decisions. At the micro level financial efficiency refers to the
efficiency with which resources are correctly allocated among competing uses at a point of
time. Financial efficiency is a measure of how well an organization has managed certain trade
of (risk and return, liquidity and profitability) in the use of its financial efficiency.

The present study has been made in order to analysis the efficiency through the
profitability ratio of the textile group of companies in KG DENIN Organic Cottonand also of
the individual textile Group of companies. The profitability ratios which have been discussed
in this chapter are:
 Gross profit ratio
 Operating profit ratio
 Net profit ratio
 Return on gross capital employed
 Return on net capital employed
 Return on net worth
 A study of earning per equity share of the company under study has been also made.
STORE DEPARTMENT

DEFINITION:

For a bulk production industry it is essential to maintain a well-organized & well


equipped inventory system. The main responsibility of this department is to store all the raw
material necessary to produce garments. This department is sub divided into three sections.

Working Flowchart of Fabric Store Department:

Working Procedure:
1. Receiving Fabric roll
i. Woven fabrics are supplied in roll package. Once these rolls of fabric
are delivered the store in-charge receives the incoming consignment.
This is the first phenomenon which is done in fabric store.

2. In-house Inventory

Once these rolls are received, the store in-charge matches the packing list of the
fabric consignment with the original quantity of the fabric rolls (i.e. fabric width, fabric
length). He also keeps the all the record in a log book. This inventory maybe done alone
by the store in-charge or with the presence of a representative of the fabric supplier.

3. Cutting for inspection

At the time of inventory a piece of fabric is cut form every roll. The piece is of full
width of the fabric and of a length depending on buyer (i.e. for H&M 22 inch of length, for
others 12 inch of length). These cut piece is send for inspection tests like shrinkage, blanket
making for shade segregation.

Frequency of inventory control

o Monthly inventory control

o Annual inventory control

SALES DEPARTMENT

Introduction:
Sales are the activities involved in selling the product. Sales are the most important part of every
business. It means the goods are transferred for money. The prices of finished products are determined by the
managing director. The sales manager sells out the product through the brokers, commission agents etc. sales
are made at various places in KG DENIN Organic Cottonlike Kolkatta, Mumbai, Pune, Jaipur etc. The sales
are made at regular intervals. The goods are sent by railways and roadways. The yarns are sold to old as well
as new customers. The cash discount is made to the buyer who buys for large amount, cash and credit sales
are made. Cash sales Cash sales means selling finished products for ready cash. The payments are made
during the sales because while selling large quantity there will be a cash discount. The direct payments are
made through cashes and cheques Credit sales Credit sales means selling the goods under the credit basis.
Credit sales are normally allowed only to the normal regular buyers. Credit sale is made only when there is a
sufficient capital to run the business. The firm allows only15 days for payment. In case of delay interest will
be charges.

Definition of Sales:

A person or organization expressing an interest in acquiring the offered item of


value is referred to as a potential buyer, prospective customer or prospect. Buying and selling
are understood to be two sides of the same "coin" or transaction. Both seller and buyer
engage in a process of negotiation to consummate the exchange of values. The exchange, or
selling, process has implied rules and identifiable stages. It is implied that the selling process
will proceed fairly and ethically so that the parties end up nearly equally rewarded.

From a management viewpoint it is thought of as a part of marketing, although


the skills required are different. Sales often form a separate grouping in a corporate structure,
employing separate specialist operatives known as salespersons. Selling is considered by
many to be a sort of persuading . Contrary to popular belief, the methodological approach of
selling refers to a systematic process of repetitive and measurable milestones, by which a
salesman relates his or her offering of a product or service in return enabling the buyer to
achieve their goal in an economic way. While the sales process refers to a systematic process
of repetitive and measurable milestones, the definition of the selling is somewhat ambiguous
due to the close nature of advertising, promotion, public relations, and direct marketing.

Sales Managers Work in Textiles:

A Sales Manager is responsible for selling a company's products to customers,


working with their team of Sales Representatives. They usually cover a specific region. Sales
Managers may also be responsible for recruiting Sales Representatives, setting sales targets
and monitoring achievements and client feedback. They also analyze sales data to uncover
any trends and identify new information.

Sales Managers sometimes have to deal with major customers on a personal basis. They
attend meetings, conferences and trade fairs on behalf of their client. Sales Managers spend
most of their time in an office environment but may travel frequently to meet clients and
attend trade shows. Overnight stays and trips abroad may be necessary. A driving licence is
highly advantageous and may be essential for some jobs.

Demand

When the grey procurement department receives demand from PPC to purchase grey
cloth or yarn, now it is their responsibility to arrange required quality and construction of
cloth. So they adopt three ways:

 Purchase of grey cloth from the local manufactures

 Providing own yarn and manufacturing grey from outsider with that yarn.

 Using CTM own grey and yarn.

Entry in register and computer

After receiving demand grey procurement department enters the demand in to the register and
computer and 1 copy of these reports send to the CEO

Contract with local parties

Now production department contract with the different mills to provide them required
construction of grey cloth either with their yarn or yarn provided by SKOC.

If the party agrees to take yarn from SKOC and ready to make cloth with that yarn on their
machines that is a power loom or auto looms then a contract is finalized after setting a
suitable price with the approval of CEO.

Maintain record
When a contract is finalized then production department is responsible to maintain record of
yarn, which is supplied to the parties and grey cloth, is received against that yarn from these
parties. Similarly it also maintain the record of SKOC yarn and grey delivery to PPC
department. For this purpose the production department updates two reports daily and submit
them to CEO.

Qualification:

An increasing number of employers are now recruiting applicants with higher education
qualifications. You will find an HND or degree in a subject related to sales, marketing,
business, fashion or textiles to be most relevant. If you are considering taking a fashion
design course in higher education, the following courses have been rigorously assessed by the
fashion industry and awarded the Creative Skillset Tick for the high standard of education
they provide and the degree to which they prepare you for a career in fashion.

You could consider taking an ABC in Fashion Retail; Buying and Merchandising for
Fashion; or, Fashion and Textiles. There is also an NOCN course in Skills for the Fashion
Industries; and a Edexcel course in Fashion and Clothing. Industry-recognised professional
organisations also offer specific qualifications for those working in fashion and textiles,

for example:

o The Chartered Institute of Marketing offers a range of part-time qualifications, which


lead to membership status.

o The Institute of Sales and Marketing offers relevant qualifications, such as Level 2
certificates in sales.

o The Managing and Marketing Sales Association (MAMSA) offers certificate and
diploma - level qualifications in sales marketing and sales management.
The relationships between sales and marketing:

Marketing and sales differ greatly, but generally have the same goal. Selling is the final, stage
in marketing, which also includes pricing, promotion, place and product. A marketing
department in an organization has the goals of increasing the desirability and value to the
customer and increasing the number and engagement of interactions between potential
customers and the organization. Achieving this goal may involve the sales team using
promotional techniques such as advertising, sales promotion,publicity, and public relations,
creating new sales channels, or creating new products (new product development), among
other things. The sales department would aim to improve the interaction between the
customer and the sales facility or mechanism (example, web site) and/or salesperson. Sales
management would break down the selling process and then increase the effectiveness of the
discrete processes as well as the interaction between processes. For example, in many out-
bound sales environments, the typical process includes out-bound calling, the sales pitch,
handling objections, opportunity identification, and the close. Each step of the process has
sales-related issues, skills, and training needs, as well as marketing solutions to improve each
discrete step, as well as the whole process.

Sales and marketing alignment and integration:

Another area of discussion involves the need for alignment and integration between
corporate sales and marketing functions. According to a report from the Chief Marketing
Officer Council, only 40 percent of companies have formal programs, systems or processes in
place to align and integrate the two critical functions.Traditionally, these two functions, as
referenced above, have operated separately, left in siloed areas of tactical responsibility. Glen
Petersen's book The Profit MaximizationParadox[10] sees the changes in the competitive
landscape between the 1950s and the time of writing as so dramatic that the complexity of
choice, price and opportunities for the customer forced this seemingly simple and integrated
relationship between sales and marketing to change forever. Petersen goes on to highlight that
salespeople spend approximately 40 percent of their time preparing customer-facing
deliverables while leveraging less than 50 percent of the materials created by marketing,
adding to perceptions that marketing is out of touch with the customer and that sales is
resistant to messaging and strategy.

Sales agents:

Agents in the sales process can represent either of two parties in the sales process for
example:

1. Sales broker, seller agency, seller agent, seller representative: This is a traditional role
where the salesman represents a person or company on the selling end of a deal.
2. Buyers broker or Buyer brokerage: This is where the salesman represents the
consumer making the purchase. This is most often applied in large transactions.
3. Disclosed dual agent:This is where the salesman represents both parties in the sale
and acts as a mediator for the transaction. The role of the salesman here is to oversee
that both parties receive an honest and fair deal, and is responsible to both.
4. Transaction broker: This is where the salesperson represents neither party but
handles the transaction only. The seller owes no responsibility to either party getting
a fair or honest deal, just that all of the papers are handled properly.
5. Sales outsourcing involves direct branded representation where the sales
representatives are recruited, hired, and managed by an external entity but hold
quotas, represent themselves as the brand of the client, and report all activities back
to the client. It is akin to a virtual extension of a sales force

PURCHASING DEPARTMENT

Purchasing Raw Materials:

The first function of textile mills is purchasing the raw materials. Raw materials
include purchasing of cotton. Before purchasing the samples of cottons are received after
checking it the purchasing order is sent. The purchase is done through the brokers,
commission agents or through the direct dealing of the spinning mills. While receiving the
yarn bags the manager has to check for the quality. Then after receiving the yarn bags the
weight of the bags are checked. There are usually two types of yarn wrap and weftyarn. The
counts are usually 20’s, 30’s and 40’s type of cottons They are purchasing verities of cotton.
They areMech-1Shivana-superLraRchThey purchase the cotton as bale wise. They are
purchasing nearly 200 bales at onetime. They are using Lorries and tempos as their mode of
transport for their delivery of raw material. The required raw materials are also purchased
form various cities and towns. Mode of payment Cash purchase Cash purchase means
purchasing raw materials for ready cash. The payments are made during the purchase because
while purchasing large quantity there will be a cash discount. The direct payments are made
through cashes and cheques. Credit purchase Credit purchases means buying the yarns on the
credit basis. When the credit purchase is made the rate of the raw materials will be high and
there will be no discount on the purchase of the raw materials. Credit purchases are made due
to the in sufficient of cash. There will a specific time for payment of cash from the purchased
day.

Purchasing Of fabrics and garments by the traders:

Purchase of fabrics garments by the traders The traders at the wholesale level
purchase fabrics/ garments through factory agent, directly from power loom and readymade
garments household units. Whereas a small wholesaler purchases directly from any other
large wholesaler some times an agent exist between big wholesaler and small wholesaler.
Main cause of purchasing fabric through agent is that the factory does not sell directly to a
wholesaler because the latter purchases in small quantities; the agent provides fabric to
wholesaler at factory price against a commission, which is provided by the factory. An agent
usually has contacts with more than one factory.

Purchasing by specification:

Many companies were not using specifications and did not communicate well with
their suppliers. Numerous problems were noted of handling unworkable materials and of
producing unserviceable garments. The properties of raw material affect not only its handling
characteristics during production, but also the quality of final product as well.

Thus if there is to be any continuity in production and product quality from lot to lot,
and style to style, there must be some assurance that little or no change takes place in raw
material properties. This can be guaranteed only by establishing a rigid set of practical
specification.

Once specification has been established, there is no reason to restrict their use to vendor and
purchaser. They can also enhance the communications between the designer and the selector,
between local management and quality inspectors, and between fabric producer and fabric
finisher, trims suppliers.

The four ingredients of a fabric specification:

1. Physical characteristics:

Details should be stated about fibers, yarns, material construction,


finishing treatment, finished width and acceptable tolerances.

2. Performance characteristics:
All important characteristics need to be specified, together with
tolerances. Typical areas are shrinkage, colorfastness to light, washing, laundering,
rubbing etc, strength, care characteristics, flame retardants features.

3. Visual defects:

The grading system to be used should be specified, together with the level of
acceptance. Ex: 4-Point system, 10-Point system.

4. Shade specification:

The colors of the purchased materials should be specified, together with


tolerances between batches and pieces and within pieces.

The raw material specification sheet provides an effective means of


communication; it should never be made the exclusive channel of information flow.
Companies who are implementing a policy of continual improvement are seeking to
promote long term relationships with reliable suppliers, and are recognizing the need
for direct communication at managerial level. This suggests the need for vendor rating
and for clear policies on communication in the context of quality assurance. However,
the fashion business is dynamic and every season sees new combination of cloth and
trims. The selection, inspection and testing of materials has to be done very carefully.

Auto mated Fabric Inspection:

Fabric inspection has proven to be one of the most difficult of all textile
processes to automate. It has taken decades for computer and scanning technology to
develop to the extent that practical, consistent and reasonably user-friendly systems
could be produced.

Today's automated fabric inspection systems are based on adaptive, neural


networks. They can learn. So instead of going through complex programming
routines, the users are able to simply scan a short length of good quality fabric to
show the inspection system what to expect. This coupled with specialized computer
processors that have the computing power of several hundred Pentium chips makes
these systems viable.

Purchasing Reporting includes:

 comparing actual and estimated values


 calculating purchasing task and project statistics
 sorting, grouping or filtering tasks by attributes
 creating charts to visualize key statistics and KPIs

THE IMPACT OF PURCHASING MANAGEMENT

A large study based on 175 company surveys with a respond rate of 22%
performed by Carr and Pearson (2002) shows that the factors strategic purchasing and
Purchasing Management have a positive impact on the firm’s financial performance in both
small and large firms. Carr and Pearson (2002) also write that Purchasing Management and
supplier involvement does affect the success of a new product introduction. This study also
shows that a link exist between implementation of strategic Purchasing Management and
achievements of a firm’s comprehensive goals. It is also stated in the report by Carr and
Pearson (2002) that it is believed that most firms recognize the importance of strategic
purchasing, because they spend a large percentage of their sales on purchased inputs. Carr
and Pearson (2002) also finish their study with the words “Based on this study, management
should better understand the importance of Purchasing Management, supplier involvement,
strategic purchasing and its relationships with firm’s financial performance
Organization Chart:
EXPORTS AND IMPORTS DOCUMENTATION

KG DENIN Import / Export Procedures

KG DENIN Export Procedures


1. Market Research and Setting Objectives of Distribution
 Selecting target markets, methods of exportation and channels
 Setting foreign market objectives on pricing and terms
2. Trade Regulations
 Export regulations and requirements
 Overseas import regulations and requirements
 Patent, trademark and copyright
3. Making Contacts
 Enquiries from interested overseas buyers
 Checking buyer's background from ECIC and / or banks
4. Quotation and Terms
 Making offers and quotation for potential buyers
 Costs, quotations and pro forma invoices, and terms of sale
5. Sales Contract
 Confirming the sales contract and terms of transaction such as payment terms
6. Contract Execution
 Producing or sourcing goods
 Packing and labelling
 Arranging shipment
 Preparing exports documentation
 Arranging insurance, if necessary
7. Customs Clearance
 Arranging export declaration and applying for export licence when necessary
8. Getting Paid
 Subject to the payment terms specified in the sales contract, the exporter should present the
required documents to the relevant parties for payment

KG DENIN Import Procedures


1. Setting Market Objectives
 Setting market objectives on pricing and terms
2. Sourcing Products
 Identifying potential suppliers
 Sourcing channels of distribution
3. Trade Regulations
 Import regulations and requirements, and checking whether import licence is required
 Patent, trademark and copyright
4. Making Contacts
 Sending enquiries to suitable suppliers
5. Settling Quotation and Terms
 Analysing the supplier's quotation and offers
 Costs and terms of sale
6. Financing the Purchase
 Preparing for working capital
 Types of bank financing and application, such as exporter credit or other bank facilities
7. Sales Contract
 Confirming the sales contract and terms of transaction such as payment terms
8. Preparing Payment and Insurance
 Preparing payments and insurance specified in sales contract (eg. when payment term is D/C,
submit D/C application to the issuing bank; when trade term is FOB, arrange cover note with
an insurance company)
 Preparing insurance, cover note, when necessary
9. Acquiring Goods
 Receiving shipping advice and arrival notice
 Receiving export documents from the exporter
 Collecting goods from the specified shipping company or forwarder
10. Customs Clearance
 Arranging customs clearance and import declaration

KG DENIN Outward Processing Procedures


1. Manufacturing Base
 Setting up / liaising for overseas production facilities (e.g. a joint venture partner)
2. Confirming Contract
 Confirming the outward processing contract with the processing partner
3. Transporting Materials
 Arranging shipment of the raw materials, parts or semi-manufactures to the overseas
processing partner
 Arranging imports of the finished / semi-finished products
4. Manufacturing Completed
 Further processing the products into the final end-product
 Inspecting the finished / semi-finished products
 Arranging exports of final products to the Hong Kong consignor
5. Preparing Payment
 Preparing payments of the processing fee to the overseas processing partner
Brief Perspective of Export Documentation

Now a days export license is no more required to export. Only the following initial
documents are required to export:

1) NTN National Tax Number Certificate, which is issued by the Income Tax Department on
filing of application form accompanied with one attested copy of NIC.

2) Sales Tax Registration Commercial exporter is not required to register with Sales Tax
Department. But if you pay the sale tax on the goods from local market it will be better for
you to get yourself registered with sales tax department so that you may claim your input tax
deducting on your purchases. Once you are registered in sales tax department you will be
obliged to the monthly sales tax return irrespective of the fact that you have been involved in
any sales tax activity or not.

3) Bank Account Current Bank Account is required for export proceedings and documents

. 4) Chamber Membership Membership certificate of Chamber of Commerce and Industries


or any relevant trade association is required.

5) Documents For Clearing Agent Once the consignment, to be exported arrives at the port,
usually a clearing agent services are sought. The following documents are required to provide
to clearing agent to clear the consignment.

i) Packing List.

ii) Commercial Invoice.

iii) Letter of Credit (L/C).

iv) Certificate of Origin which is issued by Chamber of Commerce.

v) National Tax Number Certificate. 6) Form “E” Form “E” (State bank form): All exports
from Pakistan which are subject to Foreign Exchange Regulations are required to be declared
on form „E‟ which is in sets of four copies each.

The exporter should submit the full set of Form „E‟ to the bank after it has been completed
and signed by the exporter himself or his authorized agent. While certifying Form „E‟, bank
should ensure that exporters give only one address in Form „E‟. After the form is certified by
the bank, it should be submitted to the Customs/Postal authorities at the time of shipment
along with the shipping bill. The Customs authorities will detach the original copy and after
filling in the portion relating to them and affixing their seal and signature thereon forward it
to the State Bank.

The Customs authorities will return the duplicate, triplicate and quadruplicate copies to the
exporter or his authorized agent who will retain the quadruplicate for his own record and
submit the duplicate and triplicate copies to the Authorized Dealer along with the shipping
documents within 14 days from the date of shipment.

7) Submission of Export Documents to the bank. All shipping documents covering goods
exported from Pakistan and declared on form „E‟ must be passed through the medium of
bank within 14 days from the date of shipment. The exporter must submit the duplicate
(bearing Customs seal and signature of Customs Officials with Code number) and triplicate
copies of form „E‟ along with the shipping documents, invoices etc.,

Brief Perspective of Import Documentation

Now a days import license is no MORE required to import into Pakistan. Only the following
initial documents are required to import into Pakistan:

1) NTN National Tax Number Certificate, which is issued by the Income Tax Department on
filing of application form accompanied with one attested copy of NIC.

2) Bank Account Current Bank Account is required for import proceedings and documents.
3) Sales Tax Registration Sales Tax Registration is required to import into Pakistan. For
registration, Form ST-1is required to send to the local sales tax registration office via post
with acknowledgment due (courier is preferable). The local registration office shall transmit
filled up applications to the Central Registration Office based in CBR Islamabad. The
previous requirements of furnishing supporting documents have been done away now there is
no need to attach any document with the application. The Central Registration having on line
access to database of NTN as well as of NADRA shall verify the particulars declared in the
application with database. On verification, it shall generate and issue registration certificate to
the applicant directly on his given address.

4) Chamber Membership Membership certificate of Chamber of Commerce and Industries or


any relevant trade association of Pakistan. SALES TAX ON IMPORT Sales Tax Chargeable
On Import into Pakistan. Every importer is required to pay sales tax on taxable goods at the
rate of 15% at the time of importation. "Taxable Goods" means all goods other than those
which have been exempted from Sales Tax. The 6th Schedule of the Sales Tax Act, 1990
describes such goods on which Sales Tax is exempted. The Sales Tax in respect of goods
imported into Pakistan shall be paid by the importer at the same time as making payment of
customs duty.

The Sales Tax on imported goods is chargeable on assessed import value of the goods.
"Assessed import value" means the value of imported goods determined under section 25 of
the Customs Act, 1969 (IV of 1969), including the amount of customs duties and federal
excise duty, if any, levied thereon; 5 Every importer is required to get himself registered with
the sales tax department. For registration, Form ST-1 is required to send to the local sales tax
registration office via post with acknowledgment due (courier is preferable). The local
registration office shall transmit filled up applications to the Central Registration Office
based in CBR Islamabad

. The previous requirements of furnishing supporting documents have been done away now
there is no need to attach any document with the application. The Central Registration having
on line access to database of NTN as well as of NADRA shall verify the particulars declared
in the application with database. On verification, it shall generate and issue registration
certificate to the applicant directly on his given address. In general, Sales Tax is chargeable at
the rate of 15% but the section 4 of the Sales Tax Act, 1990 provide that the goods specified
in the said section shall be charged to sales tax at the rate of zero per cent: (0%). Every
commercial importer shall pay Sales Tax in Value Addition Mode. "commercial importer"
means an importer who imports goods for the purpose of further supply to other persons and
is registered as commercial importer whether exclusively or otherwise; "value addition"
means the difference between the assessed import value of the goods and the value of supply
for which the goods, in the same state, are supplied by the importer. A commercial importer
shall pay sales tax on supplies of imported goods, at the rate of 15%, on a value addition of
not less than ten per cent, through a challan in triplicate, at the same time as making payment
of customs duty and sales tax in the Goods Declaration (GD) for such imported goods,
calculated as shown in the Example below:
CHAPTER – IV

COMPANY SWOT ANALYSIS

Growth of Textile Industry:

The textile policy of 1985 and the economic policy of 1991 accelerated the economic
growth during 1990s. Textile sector growth has been led by the spinning and the manmade
fibers industry. The number of cotton/ manmade fibers textile mills rose from 1035 in 87-88
to 1741 by December 1997. The number of spinning mills number rose to 1461 in December
1997 from 752 in 87-88. Liberalization led to the installation of open-end rotors and setting
up of Export Oriented Units (EOU). KG DENIN Organic Cottonhas the second highest
spindle age in the world after China. Aggregate production of cloth during 1996-97 was
34,265 million sq. meters, an increase of nine percent over 1995-96. KG DENIN Organic
CottonGarments's contribution in world production of cotton textiles was about 12 per cent a
decade back, while currently it contributes to about 15 per cent of world cotton textiles KG
DENIN Organic Cottonhas the second-largest yarn-spinning capacity in the world (after
China), accounting for roughly 20 percent of the world’s spindle capacity. cent over 2004.
The growth was fuelled by a 22 per cent rise in production of other textiles (including
apparels). Cotton textile also posted an increase of nine per cent.

Textile Trend:

India is the world’s second largest producer of textiles and garments after China. It is the
world’s third largest producer of cotton-after China and the USA - and the second largest
cotton consumer after China. The textile and garment industry in KG DENIN Organic
Cottonis one of the oldest manufacturing sectors in the country and is currently the largest .
The textile and garment industry fulfils a pivotal role in the Indian economy. It is a major
foreign exchange earner and, after agriculture, it is the largest employer with a total
workforce of 35 mn. In 2005 textiles and garments accounted for about 14 per cent of
industrial production and 16 per cent of export earnings. In cotton yarn production India has
made a mark in the world textile scenario. It is the largest exporter of the cotton yarns in the
world. Besides yarn exports, India’s growing garment industry is working as a driving force
to improve the yarn quality and to increase the production of cotton yarn.

1. STRENGTH
I. Raw material base

KG DENIN Organic Cottonhas high self sufficiency for raw material particularly
natural fibers. KG DENIN Organic CottonGarments’s cotton crop is the third largest
in the world. KG DENIN Organic CottonGarmentsn textile Industry produces and
handles all types of fibers.

II. Labour

Cheap labour and strong entrepreneurial skills have always been the backbone of the
KG DENIN Organic CottonApparel and textile Industry.

III. Flexibility

The small size of manufacturing which is predominant in the apparel industry allows
for greater flexibility to service smaller and specialized orders.

IV. Rich Heritage

The cultural diversity and rich heritage of the country offers good inspiration base for
designers.

V. Domestic market

Natural demand drivers including rising income levels, increasing urbanisation and
growth of the purchasing population drive domestic demand.

2. WEAKNESS

I. More dependence on cotton


Due to over specialization in cotton, the bulk of the international market is missed out,
synthetic products in KG DENIN Organic Cottonare expensive and fabric required for
items like swimsuit, sky-wear and industrial apparel is relatively unavailable.

II. Spinning Sector

Spinning sector lacks modernization and there is a need of introducing new


technology.

III. Weaving Sector

KG DENIN Organic Cottonhas relatively less number of shuttle-less loom.

IV. Fabric Processing

Processing is the weakest link in the KG DENIN Organic Cottontextile value chain,
adversely affecting its ability to compete in exports.

V. Poor Infrastructure

High power costs and long export lead times are eroding KG DENIN Organic
CottonGarments’s export competitiveness across the textile chain.

VI. Low Labour Productivity

Productivity levels for manufacturing various apparel items are far lower in KG
DENIN Organic Cottonin comparison with its competitors.

OTHER WEAKNESSSES

VII. Less attention on man power training

VIII. Poor quality standards


IX. Distance of the potential market

X. Lower average consumption in domestic market

XI. Lack of professionalism and integration of supply chain

XII. Dependence on quota system

XIII. Very low investment on R&D

XIV. Limited exploitation of economies of scale

3. OPPORTUNITIES

I. Growing Industry

World textile trade would continue to grow at a rate of 3-4% to reach $200-210 billon
by 2010.

II. Market access through bilateral negotiation

The trade is growing between regional trade blocs due to bilateral agreements
between participating countries.

III. Integration of Information technology

‘Supply Chain Management’ and ‘Information Technology’ has a crucial role in


apparel manufacturing. Availability of EDI (Electronic Data Interchange), makes
communication fast, easy, transparent and reduces duplication.

IV. Opportunity in High Value Items


KG DENIN Organic Cottonhas the opportunity to increase its UVR’s (Unit Value
Realization) through moving up the value chain by producing value added products
and by producing more and more technologically superior products.

4. THREATS

I. Decreasing Fashion Cycle

There has been an increase in seasons per year which has resulted in shortening of the
fashion cycle.

II. Formation of Trading Blocks

Formation of trading blocks like NAFTA, SAPTA, etc; has resulted in a change in the
world trade scenario. Existence of bilateral agreements would result in significant
disadvantage for KG DENIN Organic Cotton Garmentsn exports.

III. Phasing out of Quotas

KG DENIN Organic Cotton will have to open its protected domestic market for
foreign players thus domestic market will suffer.

CHAPTER – V

SUGGISTION

As a researcher on the basis of analysis, the researcher has found the following
suggestions for the betterment of the selected textile group of companies.
1. The company like DCL, SKNL and MFTL did not have good gross profit margin.
Therefore these companies should lower down their labour cost, and other
manufacturing cost. The companies should use raw material properly to increase
material productivity.

2. SKNL, MFTL and DGL should try to operate over and above their rated capacity so
as to reduce the percentage of factory overheads and administrative over heads.

3. The proportion of administrative overheads in SKNL and DGL should be reduced by


decreasing its travel and conveyance expenses as it had increased considerably during
the study period.

4. The textile companies like DGL, OS & WML, SKML and MFTL should reduce
power and fuel consumption by using low ash content coal, lignite and agro waste
product especially ground nut husk and beggass should be used as coal substitute.

5. The operation break downs due to mechanical problems and labour problems should
be avoided.

CONCLUSION

KG DENIN Organic Cottonis now a fast emerging market inching to reach half a billion
middle income population by2030. All these factors are good for the KG DENIN Organic
Cottontextile industry in the long run. Even though the global economic crisis seams to
be worsening day-by-day, as long as economies are emerging and growing as those in South
and South East Asia, textile industry is here to grow provided it takes competition and
innovation seriously.

While going through the available literature it was found that almost each country that has a
growing textile sector is trying to tackle with the problem of deciding the efficient Inventory
level. Many researchers have shown interest in the field of inventory management and have
come up with beautiful work. As the field of inventory management is not very old, so many
aspects are yet believed to be explored. The textile sector is again a growing sector which
gained its importance in recent past. Not much amount of work has been done on this area of
managing inventories in Textile sector. So it leaves an ample scope for this study.

FUTURE WORK:

The global apparel manufacturing industry is expected to grow more than ever in
times to come. According to an estimate, the global apparel industry will reach a value of
US$ 1,781.7 billion by the end of 2010. The apparel manufacturers are no w adopting
new techniques to increase their trade. New business models and competitive strategies
are used to enhance profits and growth. The consumer is more aware and more demanding
with the development of media like television and Internet. They have more choices in
quality, price and design. This is the reason why apparel chains all over the world are
focusing more on improving the quality of the product and offering in varied range of fashion
designs. Apparel manufacturers are developing methods to keep up with the pace of change
like offering on wholesale prices to survive in the global competition.

Reference

Book Reference:

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The World Bank, United Nations Industrial Development Organization, United
Nations Environmental Programme. March 1994
Anil Somani, Ralph Luken, Fritz Balkau, Frank Van den Akker and Martyn Riddle.
 [2] “Industrial Prevention in the Textile Industries “
L.J. Snowden-Swan
In: Industrial Pollution Prevention Handbook
Harry M. Freeman
Ed. McGraw Hill. New York. 1995
 [3] “Industrial Water Use and Treatment Practices “
J.B. Carmichael and K.M. Strezepek
UNIDO. Cassell Tycooly, 1987
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Anthony J. Buonicore
In: Air Pollution Engineering Manual
Ed. Air & Waste Management Association. A.J. Buonicore, W.T. Davis
Van Nostrand Reinhold. New York 1992
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Nelson L. Nemerow
Addison-Wesley Publishing Company, 1978
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in Textile Industry
UNIDO, 1992
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Pollution Technology Review No.2
Noyes Data Corporation. New Yersey, 1973
 [9] “Energy Conservation in Textile and Polymer Processing “
Ed. T.L. Vigo and L.J. Nowacki. ACS Symposium Series 107.
American Chemical Society. Washington, 1979
[10] “The Textile Industry and the Environment“
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