A

PRODUCTION REPORT

ON

INDUSTRIAL VISIT OF

AARVEE DENIM & EXPORT LTD.

SUBMITTED BY

SOM-LALIT INSTITUTE OF BUSINESS ADMINISTRATION

(AFFILIATED TO GUJARAT UNIVERSITY TOWARDS PARTIAL

FULFILLMENT OF S.Y.B.B.A. PROGRAMME)

GUIDED BY: - TWINKLE TRIVEDI

SUBMITTED BY: - DARSHIT SEJAPARA

ROLL NO.:- 195

DIV.:- B

S.Y.B.B.A

CERTIFICATE
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This is to clarify that Darshit Sejapara has prepared the report company Aarvee
Denim & Export Ltd. submitted to GUJARAT UNIVERSITY towards partial fulfillment
of the partial study of S.Y.B.B.A.

--------------------- ---------------------

Prof. K. J. Patel Prof. Twinkle Trivedi

(Director) (Faculty Incharge)

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 ACKNOWLEDGEMENT

The successful completion of this report would not have been possible
without co-operative & support of my teacher, friends & my institute.

I am heartily thankful to my management for providing me the opportunity to

make a study of practical training in organization.

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 I am thankful to my college, friends, faculty members and all those who have
helped me directly or indirectly in the preparation of this report.

Place: Ahmedabad

PREFACE
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 “EXPERIENCE IS THE BEST TEACHER”
This saying has played a guiding role in including visit as a part of the
curriculum of the B.B.A. programmed of Gujarat University. This visit & a report on
this visit allows the student the practically visit the industry & study real business
environment.

This practical training at B.B.A. programmed develops a feeling about the

difficulties & challenges in the business world. Only theory knowledge does not
impart complete education, practical experience must accompany theoretical
knowledge to add meaning to education. To fulfill these objectives industrial visit as
a part of B.B.A. programmed.

In this direction, I have tried my level best to present a project report based on
this visit.
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 INDEX
No. PARTICULARS PAGE
NO.

1 BRIEF DETAILS ABOUT INDUSTRY 8

2 COMPANY PROFILE 10

3 PRODUCTION DEPARTMENT 17

4 HUMAN RESOURCE MANAGEMENT 24

5 MARKETING DEPARTMENT 32

6 FINANCIAL DEPARTMENT 38

7 SWOT ANALIYSIS 44

8 SOCIAL RESPONSIBILITY & FUTURE PLAN 46

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9 CONCLUSION 49

10 BIBLIOGRAPHY 51

CHAPTER-1 BRIEF DETAILS ABOUT INDUSTRY

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1.1 Size of the company:

Aarvee denims export Ltd. Its product includes denim fabrics, denim garments
& cotton garments. Denim garments which includes jeans, trousers, jackets & shirts
for men, women & kids.

1.2 Other player in this industry:

Aarvee denims export Ltd. Company is second largest denim fabrics

manufacturing company in India. It is also facing competition from other companies.
They are:

1) K. G. Denim Ltd.
2) Arvind Product Ltd.
3) Raymond

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CHAPTER-2 COMPANY PROFILE

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2.1 Name & Address of company:
Name: -Aarvee Denims & Export Ltd.

Address: - Green field Project (Unit-3) 191,

Moja Shavadi,
Narol – Sarkhej Highway,
Ahmedabad (382405)
Gujarat – India.
Wed site: www.aarvee-denims.com

Register office: - 188/2, Ranipur village

Opp. CNI church,

Narol,

Ahmedabad–382405

Gujarat – India.

Email: grievence@aarvee-denims.com

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2.2 Mission / Vision of the Organization:

To earn maximum profit and sell maximum “DENIM” garments in the market is
the main vision of the company. The company’s mission is very much consumers
satisfaction. A consumer would like to purchase a denim garments once again from
the market

2.3 History of the company:

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 Amtex India Pvt. Ltd. was established in 28 th March, 1988. The commercial
production of Denim fabric was started company and the name was changed to
Aarvee Denim & Export Ltd. on 7th April, 1994.

Denim fabrics facility at Narol, near Ahmedabad with a capacity to

manufacture 2.16 million of denim fabrics per annum. The company is committed to
conducting business in accordance with highest standards with applicable laws rules
& regulation.

The company setup facilities for dyeing 21.6 lacks meter per annum of yarn &
processing of 21.96 lacks meter per annum of grey fabric at Ranipur & Narol.

The company Aarvee Denims signs MOU with Government of Gujarat. The
company indigo Denims fabrics are sold under the brand name “Amtex Indigo Blue
Denim”.

2.4 Organization Structure:

Chairman

↓
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 Manager Director

↓
Departmental In charge

_____________________↓__________________
↓ ↓ ↓ ↓
Production H. R. Finance Marketing
Manager Manager Manager Manager
↓ ↓ ↓
Supervisor Factory Supervisor
Manager

2.5 Location advantage:

Benefit of location:-
 A factory is located in a remote area.
 Aarvee Denims Company is situated on the Sarkhej road, Narol. In
Ahmedabad. Because of this place, they get easily raw material, transport
facility.
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  In environment is good.

Limitation of location:-
 A factory is away from city so; the employees feel very uncomfortable for
transportation from home to company & company to home.

2.6 Achievements:

Aarvee Denims has achieved lot of success and became 2nd largest
manufacturer in India.

Aarvee Denims has variety of products with fashion, colors & patterns.

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 CHAPTER-3 PRODUCTION DEPARTMENT

3.1 Production classification:

(A) Denim fabrics

(B) Cotton fabrics

(C) Denim garments

(D) Cotton garments

Ladies Wear Men’s Wear

Shirts
Jeans
T-shirts
Trousers

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3.2 Production process:
Floor room

↓
Spinning
↓
Weaving & Warping
↓
Seizing
↓
Finishing
↓
Packing
↓
Garment Department
↓
Ware House

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 ↓
Garment Finishing Department
↓
Show Room

1) Floor room:

i) Carding:
Raw material is converted into silver form.
ii) Drawing:
From above silver it is parralised to make it as unit form.

2) Spinning:

Two steps of spinning.

i) Ring Frame:
Yarn is made to use in Inter or simplex frame.
ii) Open-End:
Yarn is made & finished directly by using latest technology.

3) Weaving & warping:

The chases are mounted on warping machine to form a bean to be fed to

dying-sizing machines.

4) Seizing:

Seizing
↓
Clean Wash
↓
Drying
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 i) Seizing:-

In this step various seizing of trade, colors, shops, shape, design &
pattern to be made are decide.
ii) Clean Wash:

Once the fabric is made it is sent for clean wash where chemical is used
along with drink water.

iii) Drying:

It’s a process includes grying, cylinder where finished fabric is a starched

with the help of maize floor.

5) Finishing:

The cloths are passed through heating produced & finally taken up for
finishing in pad finishing machines. Paring the finishing process the cloth
shrinkage is around 12% to 14%. The fabrics are inspected & the packed.

6) Packing:

i) A-grade:
For cuttable defects are allowed on every 800 meters of cloth.

ii) B-grade:
5 to 12 cuttable defects are allowed & cloth is said to be moderate.

iii) C-grade:
More than the 12 cuttable defect & cloth is fully damages.

7) Garments Department:

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 a) Cutting
b) Stitching
c) Quality
d) Embroidery
e) Washing
f) Finishing

8) Garment Finishing Department:

a) Bare tack machine

b) P. V. label & alternation
c) Button pressing table
d) Steam pressing table
e) Stain remover
f) Folding
g) Check table
h) Packing

3.3 Production Capacity:

Manufacturing Capacity:

Spinning 30,000 Metric Tones per annum

Weaving 72 Million meters per annum
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Garment Division 15, 00,000 pieces per annum

Machines Capacity:

Machines Capacity
Felt 44 speed per minute
Yarn stock machine 30 speed per minute
45 speed per minute
Tsudakoma machine 900 RPM
Average 48 per minute
Sampling side loading machine Minimum 10 kg
Maximum 50 to 70 kg
Hydro acceleration machine Maximum 80 kg
Sample dryer 70 kg
Production dryer machine 200 kg
120 kg
Production washing machine 300 kg

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 CHAPTER-4 HUMAN RESOURCE MANAGEMENT

4.1 No. of employees and shift:

 In Aarvee Denim industry no. of employees are 250.
 Every attendance within the organization is known as system should be
maintained in office for proper function of the administrative generally the
shift is three months.

 8:00 am to 2:00 pm
 3:00 pm to 12:00 am
 12:00 am to 7:00 pm

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4.2 Training and development:

Internship training in this method this training is usually meant for such person
& such jobs where advance therical knowledge is to be backed by practical
experience on the job.

Development of an employee, refer to those activities that prepare the

people.

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4.3 Recruitment and selection:
i) Recruitment:

Recruitment is the process of searching for prospective employees &

obtaining application for jobs from a many which the right people can be selected
thus finding & attracting capable for employment.

ii) Selection:

Selection is second step of placement of people. In selection process,

detail about job, required qualification or other related information provided to HR
manager to fulfill vacant position.

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4.4 Promotion & transfer:
Promotion is an important area for changing the position of the employee. It
helps an employee to upgrade himself in responsibility higher status & high
position.

Transfer polices it is necessary to proper job description & job analysis care
should be taken to ensure that frequent or large scale transfer are avoided by laying
down adequate selection & placement procedure for the purpose.

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4.5 Performance appraisal:
Organization is established to achieve certain objective achievement of goal or
targets. Normally, the workers & supervisor sit together & do appraisal to avoid any
prejudice. The PA system is transparent.

Performance appraisal is important part of every company.

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4.6 Wealth fare measure:
Aarvee denims & export limited is welfare measure provided that:-

a. Women & child welfare

b. Provision of drinking water
c. They give also medical facilities by a government hospital.
d. They also give provident fund

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4.7 Health & safety measure:

Company believes that safety must function as an integral part of each of

the operation. Company gives safety to employee through a mask, helmet &
medical test in one year. They also provide insurance policies such as
mediclaim, life insurance etc. Employee’s safety refers to the protection of
workers from the danger of industrial accidents.

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 CHAPTER-5 MARKETING DEPARTMENT

5.1 Type of Product:

1) Denim garments: jeans, trousers, Jackets, shirts, etc for men, woman & kids.

2) Cotton Garments.

3) Home Tactile.

4) Power Plants.

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5.2 Place:

Place related is decision involution distribution of product important variable

of include of the place.

a) Coverage:

Company product of the areas in which coverage Aarvee denim &export

limited of product of the international country of the more than 10 countries.

b) Channel:

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 Intermediate of which help of company to make its product available to
final customer.

c) Wholesaler:

There are the 3 level of company has to direct the consumer

international companies is using of agent.

Manufacturer

↓
Wholesaler

↓
Retailer

↓
Customer

5.3 Location:
This company has 65 showrooms in all over India. Main & biggest show room
placed on Delhi.

5.4 Transport:
Company has been transport of the two ways:

1) Indian Market
2) International Market

This company transports its goods via road, air & water.

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5.5 Major competitors:
Aarvee Denims Company has many major competitors like,

1) M. G. Denims Ltd.
2) M. K. Exim (India) Ltd.
3) Arvind Products Ltd.

5.6 Promotion:

Promotion is given worker’s performance. In marketing promotion means all

those tools that a marketer uses to take his product from the factory to the
customer & hence involves advertising, sales promotion, public relation & publicity.

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5.7 Research & development:

Marketing is a total system of interacting business activities designed to plan,

price, promote & distribute want satisfying products & services to present &
potential customer market.

Benefits derived as a result of the above research & development new product
mix have been effected & cost reduction & batter realization.

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CHAPTER-6 FINANCIAL DEPARTMENT

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6.1 Initial investment:
When any company has a separate entity than every company required an
appropriate investment.

So on the basis of that we have found the initial investment of the company of
“Aarvee Denims & Export Ltd.” so was rupees 86 lacks in 1988.

Company has started a new business with this type of appropriate investment.

6.2 Sources of finance:

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 Aarvee Denims Export Ltd. has raised fund from the following sources:

 BOB
 BOI
 IDBI
 HDFC

6.3 Balance Sheet:

Rs in Crore
Sr. Particular 31/03/2010 31/03/2009
No
1 Sources of Funds
a Share Capital 23.46 38.45
b Resve& Surplus 140.50 123.91
2 Loans Funds
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 A Secured Loan 150.23 80.03
B Unsecure Loan 81.14 148.26
C Toata Debt 231.37 228.29
3 Fixed Assets
A Gross Block 415.86 408.62
B - Deprecation 128.51 105.43
C Net Block 287.35 303.19
4 A Investment 128.41 340.50
B Inventories 72.03 75.65
C Debtors 78.83 63.65
D Cash & Bank Balance 17.41 12.57
5 Current Liabilities 35.60 45.56
A Provisions 17.63 17.67

6.4 Profit & Loss A/c:

Rs in Crore
Sr. No Particular 31/03/2010
1 Income
A Gross Sales 374.77
B - Excise Duty 0
C Net Sales 374.77
D Other Income 12.47
E In Stock 14.76
2 Expenditure
A Material Cost 177.76
B Manf. Cost 46.57
C Empolyee Cost 16.19
D Admin., selling, Gen, exp 9.84
E Depreciation 23.21
+ P.B.T 30.20
3 Profit for Tex 1.02
A Current Tex 0
B Fring Benefit Tax 0
C -Net Prov for Tax 123
D P.A.T 50.21
E + Net Exp 31.76

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6.5 Capital structure:
Capital Structure

_____________↓_____________
↓ ↓
Owned Fund Debt.
____↓____ ↓
↓ ↓ -Secured loan
S. capital Reserves -Unsecured loan
-E. S. capital &
-P. S. capital surplus

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CHAPTER-7 SWOT ANALIYSIS

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It means:

S- Strength
W- Weakness
O- Opportunity
T- Threats

Strength:
Fabric brand “Amtex”
Focusing more on Garments
Venturing into Home Textile

Weakness:
Denim Outlook Subdued

Opportunity:
Venturing into Home Textile
Focusing more on garments

Threats:
Competition from other countries
Changing Fashion Trends.

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 CHAPTER-8 SOCIAL RESPONSIBILITY & FUTURE
PLAN

Social responsibility:

Social responsibility is a concept whereby the organization considers the

interest of society by taking responsibility for the impact of their activities on

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customers, suppliers, employees, shareholder, communities & other stockholders,
as well as the environment.

The company believes that a good corporate Governance structure would not
only encourage value creation but also provide
Accountability & control system with risk involve.

Future plan:

Aarvee Denims Export Ltd. wants to increase the plant of denim in every place
of India & also try to expand its sales which will result in increase profitability and
productivity.
It also aims to be the leading brands in denims world to capture the market
and also plans to go global in future.

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 CHAPTER-9 CONCLUSION

Finally, I considered that this project report Aarvee Denim & Export Ltd. was a
great experience. It was very wonderful experience for me from this project.

I am very thankful to the management of Aarvee Denim & Export Ltd. & all the
persons of the company who helped me immensely in preparing this report.

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CHAPTER-10 BIBLIOGRAPHY

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Websites:

www.aarvee-denims.com

Supported by “Google”

Books:

Human Resource & personal Management

- K. Aswathappa

Marketing Management

- Philip Kotler

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