A Project report on Working Capital Management Of GARDEN SILK MILLS LTD, SURAT.

A report submitted in partial fulfillment of The requirements for the degree of Bachelor of Business Administration

Prepared By: KATARIA RAHUL VASUDEV

UNDER THE GUIDANCE OF: MRS. VARSHA PATEL MISS KHUSHBOO VORA

Submitted To: VIVEKANAND COLLEGE FOR B.B.A.

INTRODUCTION OF TEXTILE INDUSTRY

Food and shelter was the basic need of a human being, thousand years ago when nothing was available to cover his body. Thus, the human beings started using leaves as a means to cover their body.

After some time, they started using the leather as clothes. As the time passed by, they got awareness of clothing sense. Gradually, they also started farming so from the farming they came to know of the fabrics like cotton, jute, etc. They started growing cotton in their fields and thus in this way, they started using cotton in making clothes.

The discovery of cotton was a great rennonance which changed the life of human beings. After cotton, synthetic fabrics were manufactured. This fabric is mostly made from polyester, viscose and nylon.

Now a days fabric is used in many areas like medical field, automobile industry, road making etc. in one way or the other way. Textile has now become one of the important parts of the human life.

Textile is a generic term derived from the Latin word TEXTURE the meaning of which is to weave.

TEXTILES INDUSTRY IN SURAT

In India the main manufacturing of the textiles is done in the SURAT city. The SURAT textile industry has the largest concentration of looms in the world leaving manmade fabrics. It has a total coverage of approximately 1.75 lakhs which is even larger than that of Ahmedabad and Mumbai.

HISTORY OF DEVELOPMENT IN SURAT

It is unbelievable that Surat is the largest center in the world for the production of synthetic fabrics like nylon and polyester. Daily production is about 42lakhs meters valued at Rs 4 crores per day. There are about 160 process houses, which processes nearly 25 lakhs meters per day. The industries in SURAT employees more than 1 lakh workers.

The beginning of the industry in SURAT is hardly 35 years old. Today, the number of authorized looms in SURAT is approximately 4 lakhs, though the total number of looms are anywhere between 1.5 and 1.8 lakhs. It is known from the reports that daily new machines are imported from china and Korea. There is new trend came which is known is sequence embroidery. These machines costs about 7 to 8 lakhs per machine but it designs many sarees at a time with the help of the computer. These machines are imported from China and Korea generally.

In the 1950s, there were only about 7000 power looms in SURAT. The 10 families who have played a leading role for the growth of the industries are Bachkaniwalas, Hathiwala, Vakharia, Dhamanwala, Mahatma, Dr. Amichand Shah,

Chevli and Kekhadia. Now days the Textiles business is very big in the SURAT, So, now the SURAT is known as the Textile City

INTRODUCTION OF THE COMPANY

The company mainly produces the goods which is useful for to make the fabrics. The GARDEN Company mainly produces the POY and Fabrics cloth both.

The GARDEN Company has mainly two kind of product: 1. POY 2. Fabric

The company has their one plant of POY at village JOLWA and another plant of Fabric at village Vareli.

In this project we have study the plant of POY which is at village JOLWA, near Palsana. It is 16 k.m. Away from the SURAT city

The company is largest manufactured of POY and PFY in India. The company is the competitors of RELIANCE.

The companys strategy is not to be top in the POY, but they are interested in to make the quality product which satisfy the customer needs at the most.

HISTORY OF THE COMPANY

GSM is one of the leading manufacturer of synthetic textiles in India. The origins of the business go back to 1920. When Dr Amichand Shah installed the first Hattersley looms in surat. Since 1920 the company expands not only by increasing the production capacity and workforce of the business but also by pioneering new materials and processes.

The managing director of Garden Silk Mills Limited, Mr Praful Shah is the youngest son of the founder, Dr Amichand Shah. He gained the degree in engineering from the university of Stanford in the USA in 1965 after which he joined the business prior in that date. He even extended the activities of the company to include processing cloth and even processing cloth. As a result of this the company was able to supply finished textiles for the first time.

In 1975, the company recruited Fine Arts Graduates from leading institutions and an Art studio was set up. The company started introducing its own designs and supplied these designs in the market. Prior to this, the designs produced had been a function of customer demand and from this point onwards, the emphasis changed the design impetus coming from manufacturers.

This move in the early 1970s conceded with the opening of the first retail shop in Surat. The extension of the policy of vertical immigration into the retailing sector had

advantages of uniform pricing, close market monitoring, communications between manufacturer and consumer and above all the exerting downward pressure on the final selling price. The dedicated retail network now extends to some 213 authorized outlets.

In the late 1970s, the company started exported its products to European markets, given the size of the domestic market, the proportion of products that are exported remains low at approximately 2 percent.

In the 1980s, the company developed a new site-Vareli, some 12kms away from Surat. This has become the manufacturing plant and investment of more than 2 billion has been made. Most of this expenditure has been targeted at the expansion and modernization of plant and equipment, particularly in the weaving and yarn preparatory sections. As a result, the company today has one of the most modern and sophisticated textile plants in India.

The company has further its policy of vertical integration by setting up a new plant, also near Surat, from which it will manufacture polyester filament yarn, one of its principle raw materials from polyester chips.

GENERAL INFORMATION OF THE COMPANY

BOARD OF DIRECTOR

NAME

POSITION /AUTHORITY

Mr. Suhail P Shah Mr. Praful A Shah Mr. Madanlal U Lankapati Mr. Rajan P Shah Mr. Sunil Sheth Mr. Yatish Parekh Mr. J.P.Shah Mr. Arunchandra N. Jariwala Ms. Smita J Shah Mr. S J Bhesania Mr. Alok P Shah

Additional Director Chairman & M.D. Director Director Director Director Director Director Director Executive Director Executive Director

Mr. Harshad F Shah Ms. Shilpa P Shah Mr. Sanjay S Shah Mr. Anjan Mukherjee

Executive Director Executive Director Executive Director Executive Director

COMPANY SECRETARY & COMPLIANCE OFFICER

Mr.Kamlesh B Vyas

AUDITORS
Messrs Natvarlal Vepari & Co. Chartered Accountants, Surat

BANKERS
Union Bank Of India Landesbank Baden Bank Of Baroda Bank Of India Corporation Bank State Bank Of Saurashtra State Bank Of Patiala

Allahabad Bank

REGISTERED OFFICE
Garden Mills Compound, Sahara Gate, Surat-395010. Tel: (0261) 2311197-98, 2311615 Fax: (0261) 2311029/502 Email: sharedepartment@gardenvareli.com Website: www.gardenvareli.com

CORPORATE OFFICE
Manek Mahal, 90, Veer Nariman Road, Mumbai-400020. Tel: (022) 2287 3117-19

REGISTRARS & TRANSFER AGENTS

Mcs Limited, Neelam Apartment, 88, Sampatrao Colony, Behind Federation Building, Alkapuri, Baroda 390005.

PLANTS
I) Ii) Iii) Garden Mills Compound, Sahara Gate, Surat Village Vareli, Tal.Palsana, Dist.Surat Village Jolva, Tal.Palsana, Dist.Surat