Himatsingka Seide1 PDF

ORGANISATION STUDY AT HIMATSINGKA SEIDE LTD
CHAPTER – 1
INTRODUCTION ABOUT ORGANIZATION AND INDUSTRY
1.1 INTRODUCTION ABOUT:

Himatsingka seide limited company was established in 1985 is the business of manufacturing
natural silk and silk blended fabrics, silk woven yarn, etc. Himatsingka seide limited company
is public limited company listed in national stock exchange (NSE symbol: HIMATSEIDE),
Bombay stock exchange (BSE having codes:514043). Its product range includes decorative
fabrics for home furnishing mainly bed linen, bridal wear, fashion fabrics for men and women
wear etc.
Bed Linen
The vertically integrated Bed Linen manufacturing facility is equipped with warping, sizing,
weaving, processing, cut and sew and captive co-generation facilities. The facility has an
annual processing capacity of 23 million meters, 320 weaving machines and a cut and sew
capacity for 3.8 million bed sets per annum. Commissioned in 2007, this USD 125 million
facility is amongst the largest in the world for its class of products.
Drapery & Upholstery
The vertically integrated Drapery and Upholstery manufacturing operation is equipped with
yarn preparation, yarn dyeing, weaving and finishing capabilities. The facility has an annual
capacity of 2.2 million meters with 110 weaving machines of which 70 are equipped with
electronic Jacquards from Staubli. The facility is amongst the largest in the world in its class
of products.
Silk & Blended Yarn
The Spun Silk manufacturing facility is equipped with best-in-class spinning equipment and
specializes in manufacturing Spun Silk and Silk blended yarns. This division predominantly
caters to the niche requirements of the Drapery and Upholstery manufacturing division and
also selectively caters to niche clientele who require high quality Spun Silk and blended yarns.
Department of MBA, SVCE, Bangalore. Page 1

INDUSTRY PROFILE
INTRODUCTION:
The Indian 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
contribute 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.
A textile is the largest single industry in India (and amongst the biggest in the world),
accounting for about 20% of the total industrial production. It provides direct employment to
around 20 million people. Textile and clothing exports account for one-third of the total value
of exports from the country. There are 1,227 textile mills with a spinning capacity of about 29
million spindles. While yarn is mostly produced in the mills, fabrics are produced in the power
loom and handloom sectors as well. The Indian textile industry continues to be predominantly
based on cotton, with about 65% of raw materials consumed being cotton. The yearly output
of cotton cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products
(1.1 million metric tons) ranks next in importance to cotton weaving. Textile is one of India’s
oldest industries and has a formidable presence in the national economy inasmuch as it
contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third
of our gross export earnings and provides gainful employment to millions of people. They
include cotton and jute growers, artisans and weavers who are engaged in the organised as well
as decentralised and household sectors spread across the entire country.

INDIAN TEXTILE INDUSTRY STRUCTURE AND GROWTH:
India’s textile industry is one of the economy’s largest. In 2000/01, the textile and garment
industries accounted for about 4 percent of GDP, 14 percent of industrial output, 18 percent of
industrial employment, and 27 percent of export earnings (Hashim). India’s textile industry is
also significant in a global context, ranking second to China in the production of both cotton
yarn and fabric and fifth in the production of synthetic fibres and yarns.
STRUCTURE OF INDIA’S TEXTILE INDUSTRY:
Unlike other major textile-producing countries, India’s textile industry is comprised mostly of
small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises. This
unique industry structure is primarily a legacy of government policies that have promoted
labour-intensive, small-scale operations and discriminated against larger scale firms:
• Composite Mills:
Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing
is common in other major textile-producing countries. In India, however, these types of mills
now account for about only 3 percent of output in the textile sector. About 276 composite mills
are now operating in India, most owned by the public sector and many deemed financially
“sick.”
• Spinning:
Spinning is the process of converting cotton or manmade fibre into yarn to be used for weaving
and knitting. Largely due to deregulation beginning in the mid-1980s, spinning is the most
consolidated and technically efficient sector in India’s textile industry. Average plant size
remains small, however, and technology outdated, relative to other major producers. In
2002/03, India’s spinning sector consisted of about 1,146 small-scale independent firms and
1,599 larger scale independent units.

• Weaving and Knitting:
Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted
fabrics. India’s weaving and knitting sector remains highly fragmented, small-scale, and
labour-intensive. This sector consists of about 3.9 million handlooms, 380,000 “power loom”
enterprises that operate about 1.7 million looms, and just 137,000 looms in the various
composite mills. “Power looms” are small firms, with an average loom capacity of four to five
owned by independent entrepreneurs or weavers. Modern shuttle less looms account for less
than 1 percent of loom capacity.
• Fabric Finishing:
Fabric finishing (also referred to as processing), which includes dyeing, printing, and other
cloth preparation prior to the manufacture of clothing, is also dominated by a large number of
independent, small scale enterprises. Overall, about 2,300 processors are operating in India,
including about 2,100 independent units and 200 units that are integrated with spinning,
weaving, or knitting units.
• Clothing:
Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers,

manufacturer exporters, and fabricators (subcontractors).
GROWTH OF TEXTILE INDUSTRY:
India has already completed more than 50 years of its independence. The analysis of the growth
pattern of different segment of the industry during the last five decades of post-independence
era reveals that the growth of the industry during the first two decades after the independence
had been gradual, though lower and growth had been considerably slower during the third
decade. The growth thereafter picked up significantly during the fourth decade in each and
every segment of the industry. The peak level of its growth has however been reached during
the fifth decade i.e., the last ten years and more particularly in the 90s. The Textile Policy of

1985 and Economic Policy of 1991 focussing in the direction of liberalisation of economy and
trade had in fact accelerated the growth in 1990s. The spinning spearheaded the growth during
this period and man-made fibre industry in the organised sector and decentralised weaving
sector.
SIZE OF TEXTILE INDUSTRY IN INDIA:
• The textile industry in India covers a wide gamut of activities ranging from production of raw
material like cotton, jute, silk and wool to providing high value-added products such as fabrics
and garments to consumers.
• The industry uses a wide variety of fibres ranging from natural fibres like cotton, jute, silk
and wool to manmade fibres like polyester, viscose, acrylic and multiple blends of such fibres
and filament yarn.
• The textile industry plays a significant role in Indian economy by providing direct
employment to an estimated 35 million people, by contributing 4 per cent of GDP and
accounting for 35 per cent of gross export earnings. The textile sector contributes 14 per cent
of the value-addition in the manufacturing sector.
• Textile exports during the period of April-February 2003-2004 amounted to $11,698.5 million
as against $11,142.2 million during the same period in the previous year, showing an increase
of around 5 per cent.
• Estimates say that the textile sector might achieve about 15 to 18 per cent growth this year
following dismantling of MFA.

CHAPTER - 2
ORGANIZTION PROFILE
Himatsingka seide limited company was established in 1985 is the business of manufacturing
natural silk and silk blended fabrics, silk woven yarn, etc. Himatsingka seide limited company
is public limited company listed in national stock exchange (NSE symbol: HIMATSEIDE),
Bombay stock exchange (BSE having codes:514043). Its product range includes decorative
fabrics for home furnishing mainly bed linen, bridal wear, fashion fabrics for men and women
wear etc.
The company operates through its spinning and weaving divisions. Himatsingka seide Buratti
of Italy and is a 100% EOU engaged in the manufacture of spun yarn. Himatsingka woven
(weaving division), also an EOQ, offers yarn-dyed decorative, bridal and fashion fabrics.
NSE increasing change is 259.55 that is 0.15 and in change in percentage is 0.065 and BSE
decreasing change is 259.40 that is -0.90 and in changes in percentage is -0.35%.

ORIGIN OF THE COMPANY:
Himatsingka Seide limited was incorporated on 23rdJanuary 1985, the company has a facility
for manufacturing bed linen products for domestic and international markets at the Hassan SEZ
in Karnataka. it has an installed capacity of 60,000meters/day of wider width cotton fabrics
and 8000 sets/day of exquisite made-up products to cater the home textile market for brands
like Osborne and little, baker, JAB, Zimmer and etc.
India’s first and only luxury home furnishing fabrics store chain atmosphere has a presence in
India, Singapore and Dubai. With 12 stores in India and one of each in Dubai and Singapore,
the brand has project and retail customers in the Middle East, south Asia, North Asia and India.
Himatsingka seide limited is a company engaged in retail and wholesale distribution of home
textile products. The company is focused on the manufacture, retail and distribution of home
textile products. The company manufactures upholstery fabrics, drapery fabrics and bed linen
products. The bed linen manufacturing facilities. The drapery and upholstery facility have an
annual capacity of 2.2 million meters with 110 weaving machines.
Its business is spread across Asia, Europe and North America. In north and South America, the
company operates through its divisions DWI holdings, which is licensee of brands such as
Calvin Klein home and Barbara Barry and Diatec is he licensee of esprit. In Europe, the
company operates through its division Giuseppe Bellor, which is a bedding brand. in Asia, the
company operates through its division Himatsingka woven
BACKGROUND:
IN 1985: HIMATSINGKA SEIDE LIMITED was incorporated on 23rd January, and the
certificate of commencement of business was obtained on 15thFebruary, 1985. It was promoted
by Ajay Kumar. Himatsingka and Dinesh Kumar Himatsingka. it manufactures natural silk
fabrics under on 100% export-oriented unit scheme.
The company undertaken to set up a composite silk mill with an annual capacity of 7,50,000
sq. Mitres for production natural silk fabrics under the 100% export-oriented unit scheme.
The plant comprises of yarn preparation, twisting, wearing with a complements of 25 seltzer
shuttle less rapier looms , degumming, dyeing, printing and finishing departments for carrying
out the either processes involved in the production of high quality silk fabrics such as creeper-
de-chine ,chiffon ,taffeta georgette and warp printed fabrics.
IN 1986:6,13,200 shares subscribed for by the promoters, their friends etc. 20,86,800 shares
were then issued at par out of which 4,66,800 shares were reserved and allotted to promoters,
their friends, etc, the remaining 16,20,000 shares, were offered to the public in september1986
out of which the following shares reserved for preferential allotment.
a) 6,00,000 shares to NRIs with repatriation rights 4,66,800 shares taken up.
b) 1,04,300 shares to employers/workers of the company.
c) 32,400 shares to business associates
IN 1990: The company entered into a 4 years wage agreement with workmen in January
IN 1991:The company proposed to expand the existing manufacturing facilities at

Doddaballapura. The installed capacity will be increased to 11,25, 000 Sq. Meters of natural
silk fabrics.
IN 1993 :1491650 rights shares issued.
IN 1994: It was proposed to increase the capacity to 168000sq meters.
The company proposed to set a weaving and processing plant for producing 12,00,000sq
meters. The company entered into a technical know-how agreement with filet.
credit Himatsingka ltd. Become a subsidiary of the company.
20,14,650 rights equity shares issued at premium of rs.17/-per share to promoters group another
31,87,775 bonus shares issued in prop 1:2.
IN 1995: The company acquired land at Doddaballapura for setting up a 100% EOQ for
manufacture of spun silk and blended yarn an installed capacity of 410 meters per annum
technical collaboration with m/s filet Buratti SRA of Italy.
The company received the SIA approved for the project in the first phase weaving capacity of
600,000sq Meters. was being set up 2830 share subscribed.
IN 1996 :1450 shares kept in abeyance were allotted.

IN 1997: The company had up a capacity plant of 44 mw capacity.
The company proposed to issue 14,92,100 no. of Equity shares of Rs.10 for cash at a premium
of Rs.40 per share in the following manner.
a) 14,21,050 shares of Rs .10 each for at a premium of Rs.40on rights per share basis
to the existing shares holders in the ratio of 1:2.
b) 71,050 shares to the employees of the company.
c) 600 shares kept in abeyance issued
IN 1998: Himatsingka seide ltd. Has set up a new 100% export-oriented unit with Italian
technical know-how at Doddaballapura.
It is setting up research and development centre for silk yarn fabric at S.M. gonadally in
Karnataka. The proposed project with an investment of Rs.2 cores will have an installed
capacity of 18750 kg p.a.
IN 1999HSL has decided to offload its stake by 71% to 29% in credit HSL the security arm of
the co.
March 1998 Rs.2cr. As equity shares capital Rs.5 cr. As preference capital and balance as
unsecured loans.
IN 2002: Mr.RKT Talwar director passed away
Mr. Nathaly sink and Mr. G V Rao gave their resignation from the BOD.
Amends AOA to enable the BOD to buy back up to 10% of the paid-up capital Narayana Vishal
appointed as directors of HSL.
IN 2003: Appointment Mr. Shirleen Himatsingka as the executive directors for a period of
5yrs, credit Himatsingka acquires 10,510 shares in the company launches atmosphere chain of
fine furnishing stores called atmosphere at 11 vital molly road, Bangalore.
IN 2004: He decided to incorporate wholly owned subsidiary in USA HSL has set up a wholly
owned subsidiary in New York “Himatsingka America ink

IN 2005: He has. give the bonus in ratio of 1:1 company has splits face value of shares from
Rs.10 to 5.
IN 2006: HSL has appointed Mr. David Aquinnah as a nominee director by export import,
bank of India with immediate effect.
 T and sponsor our staff in training and further education and to share in the overall company
success.
 The capability and co-operation of our staff harnesses to their goal focus motivated is a key
asset of our company.
 Company must be quicker and better than the competition, and they must prove this to their
customers on a daily basis.
 Perfect mastery of their daily business secures their existence and positions us to meet the
challenges of the future.
NATURE OF BUSINESS:
The company will buy raw materials then converts them into finished goods the sells them to
customers at a selling price. The primary product for this company is the goods they produce
or manufacture.
ADDRESS:
Name and address: Himatsingka seide limited 23/A,
KIADB, Industrial area, Doddaballapur -561203
Bangalore district.
Factory license no: MYB-6584
First shift: Morning 7am to3 pm
Second shift: Afternoon 3pm to 11pm
General shift:9am to 5pm
Weekly holidays: Sunday
Factory manager: Mr. Srinivas rai.

HEAD OFFICE:
No.10/24, kumara krupa road,
High grounds, kumara krupa road,
Bangalore-560001.
Contact person: Mr Bopanna
VISION:
“We aim to make Himatsingka seide
A design-led, legally integrated, global home textiles company.”
MISSION:
“We are on our way to becoming a global “home textile company” with green field
manufacturing projects in India and fronted acquisition overseas.”
“We focus on product differentiation quality assurance, business ethics, financial prudence and
people-based value system. we succeeded. We now have the required critical mass. We are
determined to leverage all our expertise and aim to become an integrated global leader in the
home textile space.
QUALITY POLICIES:
1. Himatsingka seide’ s products shall be among the best available in the global market.
2. To maintain our commitment to quality we shall continuously strive to achieve
standards of excellence in the design and manufacturing of our products using states of
the art technology.

3. To meet our customer’s expectations, Himatsingka seide shall consistently deliver

quality products within agreed schedule.
4. To fulfil our objectives, all functional areas in the company shall work in a planned and
co-ordinate manner.
 Meet to the full satisfaction of customers.
 Quality by enhancing productivity and efficiency.
 Being internationally competitive.
 Achieve quality products with total support from all their employees
 To listen openly to its customers
 To design the products, they want first
 To listen to empower and motivate your employees.
 Produce the products cheaply not compromising with quality.

WORKFLOW MODEL:
MANUFACTURING PROCESS:
S passage
Raw material Tops Combing
Grilling
Player Ring Framer Autoclave Winding
Assembly Twisting Autoclave Gassing

Winding
Rewinding Packing
Bed linens and garments:

Spinning process flow:
Raw material:
Silk fibres and silver constitute the bulk of the raw material used to make the silk thread.
Blankets, viscose and flax are also used.
Map:
It converts the fibres of fibres called silver into a non-twisted rope. The loose fibres are fed to
the back of the machine by air channels. This mass of fibres is processed between spike grids
and fine-wire cylinders operating at different surface speeds to open and almost individualize
the fibres.
Dust dissolved and impurities. The open and individualized fibres leave the machine on a
pickup cylinder while a web is compressed and compressed into a non-twisted rope called
silver carding. Special octagonal designs treat delicate silk fibres in silver.
Combing:
In this procedure, the fixing of strands, the individualization, the disposal of entrapped
filaments, the homogeneous blend and the end of short filaments are produced using silver.
Normal strings take two passes on the last NSC shower robes to take out any deformities.
Preparation:
Two worsted preparatory lines with machines from NSC and SAN produce their regular
and fancy yarns.
Roving:
The NSC flyer rover prepares the material for spinning fine counts of yarn. Here the linear
density is reduced, and a low twist is imported to provide adequate strength.

Ring frame:
Their worsted ring casings have the adaptability to turn course to fine yarn from 5Nm to
240Nm. The last yarn of the required direct thickness is produced using the meander. A
legitimate measure of contort is imported along the high draft.
Winding:
This is the post turning task, incorporates the setting of the contort imported in the ring edge
and auto-winding. In the auto winding the shortcomings recognized and furthermore corrected.
The littler bobbins are changed over into bigger bundles. The Murata Autocroners are utilized
for this reason.
Twisting:
The two for one twister from Murata are a fundamental piece of yarn wrapping up. The
yarns here might be multiplied and after that turned in the two for one twister making the
employ yarns.
Gassing:
The SSM machines from Switzerland are customized for the removal of protruding silk
yarn. Its process singeing removes hairs on the yarn surface and to give a soft lustre.
Packing:
The cones are packed in cartons, each accompanied by packing details such as conditioned
weight and quality statistics.
Retail division:
HSL has set up a retail division to self-textures delivered in its two EOU division, just as market
imported textures. The retail division would have a focal stockroom where stock of chosen
items would be kept. This distribution centre thusly would supply to the different showrooms
the nation over, as there would be 4 metros to begin with and it would in the long run grow to
14/15 urban areas in India.

PRODUCT PROFILE:
Product range of the company includes;
 Decorative fabrics: HSL offers fabrics for drapes and upholstery, for home as well as
for contract and hospitality industry. Filament silk, spun silk and blends of silk with
cotton, wool, linen, and viscose are some of the yarns it uses.
 Bridal wear: The bridal wear range includes taffetas, duchess satins, organza damasks,
floral and jacquards. Its fabrics are woven in a variety of textures and shades. USA,
UK, Italy, Belgium, Australia, and France are some of the countries where if offers the
bridal range of fabrics.
 Fashion wear: Its fashion fabric is used in the making of evening wear, men’s casual
jackets, was coasts, formal and semi-formal women’s wear. They work with filament
and spun silk blended with wool, linen and cotton. fabric designs range from classic to
contemporary.
 Spun silk/ blended yarns: Company offers both regular and fancy yarn. Their regular
yarns included classical spun silk of 2/140 NM and are offered in spun silk and various
blends with silk. Irregular, stubby and shantung effects can also be spun.

Infrastructure facilities:
1.Nine serves with more than 230 terminals
2. Corporate office connected through 2 maps lines.
3.All the jacquards are connected to CAD workstation through central network;
 Canteen facility.
 Welfare facilities.
 Safety measures
OWNERSHIP PATTERN:
ENTITY NO. OF PERCENTAGE

SHARES HOLDINGS
Promoters 46596792 47.33%
General Public 25964328 26.37%
Banks Mutual Funds 13873669 14.09%
Foreign Institutions 4428044 4.5%
Financial Institutions 1163577 1.18%
Foreign Promoter 237800 0.24%
Others 6192950 6.29%

SHAREHOLDING PATTERN
PROMOTERS GENERAL PUBLIC BANKS-MUTUAL FUNDS

FOEIGN INSTITUTIONS FINANCIAL INSTITUTIONS FOREIGN PROMOTER
OTHERS
BOARD OF DIRECTORS:
NAMES POSITION
D. K. Himatsingka Executive Chairman
Srikanth Himatsingka Managing director and CEO
Vasudevan Executive Director
Dr. K. R. S. Murthy Independent Director
Rajiv Khaitan Independent Director
Sangeeta Kulkarni Independent Director

COMPETITIORS PROFILE:
BOMBAY DYEING Manufacturing limited.
Jindal worldwide ltd
Faze three is a Private company.
Eastern Silk Industries is a Private company.
AWARD & ACHIEVEMENTS:
IN 2014: Himatsingka lines has own export excellence award for the best SEZ manufacture
exporter 2013-2014 sector. Textiles from the development commissioner cochin special
economic zone.
IN 2013: Himatsingka seide limited has won the “BEST RUN SAP AWARD IN
MANUFAUTRING” at the SAP awards for consumer excellence -2013 held in Mumbai on

17th October 2013 the award is given for excellence in implementation and usage of SAP in
our manufacturing plant-seide, Doddaballapura.
IN 2012: Himatsingka seide limited won the best of bread HR award at the national human
resource development (NHRD) network’s 16th annual conference held at Hyderabad in
December,2012. this award was given for our talent pipeline management strategy at
Himatsingka linens, Hassan.
Himatsingka wins Asian CSR leadership award in the category of “Developing sustainable
strategies.”
The company has been awarded the first prize for being the largest exporter of silk fabrics from
the Indian silk. Export promotion council (ISEPC) for 1997-98
Himatsingka seide has been ranked among the top ten investor rewarding companies in India
by the institute of chartered financial analysis of India in 1995.
IN 2006: Received the partnership awards 2006 for best of bread cash management solution
HSBC for long – standing partnership.
IN 1998-2006: Received the Indian silk export promotion council award Mumbai sponsored
by the govt. in the expert of natural silk goods for 18 consecutive years.
IN 2004: Award the best ‘small cap company in the best managed companies ‘poll of the year
2004 organised by Asia money, Hong Kong
FUTURE GROWTH AND PROSPECTS:
Information revaluation promises to bring the world closer to cohesion, the emerging face of
fast-moving information, technology transfer is bound to take place at a higher speed as the
international borders blur supply chain management and information technology take a crucial
role in apparel manufacturing global partners in the clothing industry up.

CHAPTER – 3
Mc Kinsey 7’s framework:
The 7’s model is better known as McKinney’s 7’s, this is because the two persons who
developed this module. It is developed in the early 1980s by tom peters and Robert waterman.
Robert waterman have been consultant at McKinney’s and company at a time.They described
that an organization is not that just structured but consist of 7’s elements, which can be
distinguished into so called hard S’s & soft S’s.
McKinney’s 7s is a tool that analyses firm’s organisational design by looking at 7 key internal
elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify
if they are effectively aligned and allow organisation to achieve its objectives.
THE SEVEN ELEMENTS:
The Mckinsey7-s model involves seven interdependent factors which are categorized as either
“hard” or “soft” element.

HARD ELEMENT SOFT ELEMENTS

Strategy Skills
Structure Style
System Staff
Share values
“Hard” elements are easier to define or identify and management can directly influence them,
these are strategy statements, organisation charts and reporting lines, and formal process.
“Soft” elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture however, these soft elements are as important as the hard elements
if the organisation is going to be successful
There are 7’s which managers use to effect complex and large organizations.
1. Strategy:
Strategy is a course of action through which an organization relates with environment so as

to achieve its objective. Purpose of the business and the way the organization seeks to
enhance its competitive advantage by implementing some strategy into the business
Production strategy:
A Himatsingka production system is an integration of material handling, production

processes, personnel, and equipment that directs workflow and generates finished products.
The company Himatsingka production will depend on the company mission and policies
of the manufacturing firm as well as the capacities of the personnel engaged in the
production departments; it also depends on the volume of production.
 Individual production or make through system:
It is the traditional method. In which the entire garment is assembled by one operator like a
tailor. Each product is made only once or in very small quantities. The system requires highly

skilled, experienced operator and versatile machinery. In this system tailor do the all jobs
like pattern making, fabric cutting etc.
 Progressive Bundle strategy
In this system consist of textile parts needed to complete a specific operation. Bundles are
assembled in the cutting room where cut parts are matched up with corresponding parts
and bundle tickets. Bundles of cut parts are transported to the sewing room and given to
the operator scheduled to complete the operation. One operator is expected to perform the
same operation on all the pieces in the bundle, retie the bundle, process coupon, and set it
aside until it is picked up and moved to the next operation.
2. Structure:
Himatsingka seide limited mainly come under line organisation.The method in which
tasks are divided and ability is distributed i.e. the basic grouping of activities and
reporting relations in the administrative subunits. The mechanism by which the
activities and members of the institute are coordinate.
• The structure of Himatsingka seide ltd is well defined and tasks and authority
• The basic structure form of Himatsingka seide is decentralization.
• To maintain responsible quality and quantity standards.

Organization Structure:
Human resource department structure:
Human resource (President )
Human resource ( vice - president )
General manager
Deputy manager

Production department structure:
Associate vice
president (AVP)
( operations )
Assistant General
Manager
Deput
Manage
y
Senior Manager
r
Maintenance
AssistantManager
Executive /Officer
They have departments like:
• Finance
• Human resource
• Engineering
• Spinning
• Weaving
• Maintenance etc.

3. Systems:
The techniques used to achieve the organizations including the management control
system, planning, budgeting, resource allocation, information system and distribution
system.
 The process is pre-defined; rules and regulations are liberally delegated.

 Himatsingka seide ltd always believes in proper systematic approach the HSL always
follow procedure / systems to achieve the goals and targets.
 Himatsingka seide ltd has good management control system, resource allocation
system.
4. Style:
The leadership styles of top management and the generally operating Democratic styles of
the association. Styles impacts the standards people follow and they work and interrelate
with each other and with customer.
 Himatsingka seide ltd believes in democratic style of management.

 The employees are well delegated; they discharge utmost interest for the organization.
 They conduct the periodical meetings.
 Management is very transparent.
 Union and management take decisions together by discussing pros and cons of the
subject.
 Every month management and union will meet together to discuss on quality issues.
 Himatsingka seide ltd is very transparent in management decision making.
5. Staff:
It is to select persons, their background and capabilities, the administration’s approach to

recruit then select. Its emphasis on how the persons are advanced, trained, socialized and
combined.

The category of human resource:
SL.NO PARTICULARS NO. OF EMPLOYEES
1. Officers 20
2. Staff 40
3. Workers 340
TOTAL 400
6. Skills:
The individual competencies that reside in the organization. This can be characteristic
competencies of people, management performs, system and technology.
Himatsingka prides its unique environment cultivated by a group of enthusiastic and

talented people diverse in their backgrounds. It provides potential employees with
remarkable opportunities to cultivate their responsibility and creativity. While growing
careers and business.
LEVEL OF
MANAGEMENT
Top level Middle level Lower level
SKILLS management management management
REQUIRE
Technical skills
Human relation
skills
Conceptual skills

Communication
skills
Leadership skills
Problem solving
skills
The Himatsingka will look in their employees are
a. Weaver:
 Knotting skills
 Sharpe eyes
 Ability to look after three looms
 Ability to identify defects to control / eliminate
 Knowledge of product
 Dying:
 Sharpe eyes
 Ability to identify colours
b. Dependability
c. Flexibility
d. Integrity and honesty
e. Motivation and dedication
f. Team skills
g. Strong work ethics
h. A positive attitude
i. Leadership

7. Shared values:
The core or fundamental values that are widely in the organization and serve as guiding
principles that are important.
Values:
Values refer to the institutional standards that strengthen commitment to the vision, and
guide strategy formulation and purposive action. The core values are shaped around the
belief that enterprises exist to serve society.
These values have great meaning because they focus attention and provide a broader sense of
purpose.
• In Himatsingka there is a clear understanding between the employer and

employees.
• Himatsingka is activity involved in corporate social responsibility.
• Himatsingka causes a very minimum level of pollution, by using ultra-modern

equipment’s.
PORTER’S FIVE FORCE MODEL
Porter’s five force model is a tool for analysing competition of a business. It draws from
industrial organization economic to derive five forces that determine the competition intensity
and the attractiveness of an industry in terms of its profitability

1. Bargaining Power of Buyer-
As far as the bargaining power of Himatsingka seide ltd buyer's is concerned, Himatsingka
seide ltd is not in a strong position. They have low power against the customers because
customer influence in pricing and shifts towards other sellers if he/she is not satisfied with the
quality or price of the manufactured goods or services.
Buyers: Raw silk yarn, silk waste, cotton yarn, textile dyes, chemicals and auxiliaries, coal,
textile machinery spares.
2. Bargaining Power of the Supplier:
Himatsingka seide ltd has many options to buy products from any supplier. So, suppliers try to
make possible their products at their store. So, we can say that Himatsingka seide ltd has high
bargaining power with respect to the suppliers.
Supplier: Natural silk fabrics, silk blended fabrics, spun silk yarn, blended spun silk yarn,
cotton bed linen

3. Threats of Substitutes:
Himatsingka seide ltd has the close substitutes the specialized wholesale markets are the great
threat to the organization. If the customer is not satisfied with any factor they can easily switch
to the other because he/she has the almost exact or the same kind of substitutes. Like Dyed
Sewing threads are competitor
4. Threats of New Entrants:
Government is allowing certain new investors to invest in the cash and carry business.
Although initial investment for this industry is much high but for such kind of chains like Wal-
Mart and others have no problem in that. So Himatsingka seide ltd also has a high threat of
new entrants. Like Dyed Sewing threads are competitor
5. Rivalry among Existing Competitors:
Presently, the existing competitor of Himatsingka seide ltd is only the whole sale markets of
every product. But the specialized wholesale market dealers cannot run any customers'
concerning marketing campaign and Dyed Sewing threads are competitor for Himatsingka
seide limited.
The competitors of Himatsingka seide limited are BOMBAY DYEING Manufacturing limited,
Jindal worldwide ltd, Faze three is a Private company, Eastern Silk Industries is a Private
company.

CHAPTER – 4
SWOT ANALYSIS
INTRODUCTION:
SWOT analysis is a strategy planning tool used to evaluation the strengths, weakness,
opportunities and threats involved in a project in a project in a project or a business venture. It
involves specifying and objectives of the business ventures. Or project and identifying the
internal and external factors that are favourable to achieving the objective. The techniques is
credited to albert Humphrey, who led a research project at Stanford university in the 1960s and
1970s using data from the fortune 500 companies.
Abbreviation of SWOT Analysis:
S- STRENGTHS
W- WEAKNESS
O- OPPORTUNITIES
T- THREATS

1. STRENGTH:
 Existing distribution and sales networks.

 Skilled workforce.
 High Product quality.
 Strong free cash flows that provide resources in the hand of the company to expand into
new projects.
 Automation of activities brought consistency of quality.
2. WEAKNESSES:
 High attrition rate in work force.

 High temperature, heat, RH inside the creation plant because of preparing machines
exhaust.
3. OPPORTUNITIES
 New trends in the consumer behaviour can open up new market.

 Increase in future Growth rates and profitability.
 Company can invest in new technologies as well as in new products segments.
4. THREATS:
 The company can face lawsuits in various markets.

 New technologies developed by the competitor could be a serious threat to the industry
in medium to long term future.
 Intense competition.
 Seasonal demand for the products.

CHAPTER - 5
ANALYSIS OF FINANCIAL STATEMENT
Balance Sheet as on 31-03-2017& 31-03-2018
AMOUNT (Rs IN LACS)
31 MAR 2017 31 MAR 2018

PARTICULARS
ASSETS
Non-current assets
Property, Plant and equipment 183,043.72 86,953.17
Capital work-in-progress 3,220.57 11,293.90
Investment property 888.95 806.94
Goodwill 35,103.69 34,141.58
Other-intangible asset 4,504.52 5,243.73
Financial assets
a) Investments 670.56 18.97
b) Loans 140.18 99.89
c) Other non-current financial assets 2,066.15 3,626.93
Deferred tax assets 3,141.76 3,744.26
Income tax assets, (net) 888.28 792.92
Other non-current assets 11,988.38 20,108.38
Total non-current Asset 245,656.76 166,830.67
Current assets
Inventories 99,026.94 75,388.08
Financial assets

a) Investments 11,893.12 -
b) Trade receivable 9,909.52 6,827.37
c) Cash and cash equivalents 10,988.28 5,937.93
d) Bank balance other than cash and
Cash equivalents above 2483.68 12,421.46
e) Current loans 125.91 199.61
f) Other-current financial asset 16,790.59 8,488.41
Other current assets 20,863.65 9671.26
Assets held for sale 4,156.24 3572.59
Total current assets 176,237.93 122,506.71
Total Assets 421,894.69 289,337.38
EQUITY AND LIABILITIES
Equity
Equity share capital 4,922.86 4,922.86
Other equity 117,830.41 101,803.23
Total equity 122,753.27 106,726.09
Liabilities
Non-current liability
Financial liability
(a) Non-current Barrowings 94,302.22 60,879.93
(b) Trade payables 35,114.11 26,146.48
(c) Other current financial liabilities 14,497.54 9,077.55
Current provisions 351.50 169.83
Current tax liabilities, (net) 3,025.45 1,017.01
Other current liabilities 5,217.46 4,272.10
Total current liabilities 152,508.28 101,562.90

Total liabilities 299,141.42 182,611.29

Total equity and liabilities 421,894.69 289,337.38
Profit and loss account as on 31-03-17& 31-03-18
AMOUNT (Rs IN LACS)
31 MAR 2017 31 MAR 2018

PARTICULARS
INCOME
Revenue from operations 224,905.95 213,840.60

Other income 1,762.99 1,319.18
Total income 226,668.94 215,159.78
Expenses
Cost of material consumed 78,826.04 84,654.00

Purchase of stock in trade 58,117.24 53,055.26
Changes in stock of finished goods, work in (18,378.20) (15,038.46)
progress and stock in trade
Employee benefit expenses 20,911.89 19,743.71
Finance cost 10,379.72 9,352.65
Depreciation And amortisation expenses 7,194.84 5,800.96
Other Expenses 40,569.30 33,656.10
Total Expenses 197,620.83 191,224.22
Profit before share of loss of equity

accounted investee and tax 29,048.11 23,935.56

Less: Share of loss of equity accounted

investee (net of income tax) 0.26 -
Profit before tax 29,047.85 23,935.56
Current tax 6,387.39 3,426.39

Deferred tax 2,496.96 2,298.92
Income tax expenses 8,884.35 5,725.31
Profit for the year 20,163.50 18,210.25

1) Current Ratio: This ratio explains the relationship between current assets and current
liabilities of a business. This ratio explains the relationship between current assets and
current liabilities of a business. The current ratio is a liquidity ratio it measures a
company`s ability to pay short – term and long – term obligations. To gauge this ability,
the current ratio considers the current total assets of a company relative to that
company`s current total liabilities.
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY
YEAR SOLVENCY RATIO

2016-17 1.20
2017-18 1.15
Analysis: -
The current ratio for the years 2016-17 and 2017-18 are1.20 and 1.15 respectively. The ratio
has shown a decrease in the year 2017-18 when compare to 2016-17.
Current ratio
1.22
1.2
1.18
1.16
1.14
1.12
2016-17 2017-18
Current ratio
Interpretation
Standard current ratio is 2:1 so here the current ratio was satisfactory but fluctuating
year by year. It was increased in the year 2016-17. When compare to the previous years.

2) TABLE SHOWING DEBT EQUITY RATIO
Debt Equity Ratios : The debt equity ratio is a financial ratio indicating the relative proportion
of shareholders’ equity and debt used to finance a company’s assets. Closely related to
leveraging, the ratio is also known as risk, gearing or leverage.
Debt equity ratio= Long term dept / Shareholders fund
YEAR DEBT EQUITY RATIO

2016-17 1.19
2017-18 0.75
Analysis: -
Debt equity ratio of the company for the last 2 years is1.19 and 0.75 respectively. The company
maintained high debt equity ratio over a period of time.
Debt equity ratio

1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016-17 2017-18
Debt equity ratio
Interpretation
So here the debt equity ratio is increased in the year 1.19 compare to 2017-18.

3) Solvency ratio
The solvency ratio is a key metric used to measure an enterprise’s ability to meet its
debt obligations and is used often by prospective business lenders. The solvency ratio
indicates whether a company’s cash flow is sufficient to meet its short-and long-term
liabilities.
Solvency ratio = Total assets / total liability
YEAR SOLVENCY RATIO

2016-17 1.41
2017-18 1.58
The solvency ratio measures a company's ability to meet its long-term obligations as
the formula above indicates. ... Basically, solvency ratios look at long-term debt obligations
while liquidity ratios look at working capital items on a firm's balance sheet.
Solvency ratio
1.6
1.55
1.5
1.45
1.4
1.35
1.3
2016-17 2017-18
Solvency ratio

4) LIQUID RATIO
It is a test of the ability of the quick current assets to discharge the obligations assumed
under the heading current liabilities. The ratio measures the amount of cash available
for meeting immediate payments.
LIQUID RATIO = Quick assets / Quick Liabilities
YEAR LIQUID RATIO

2016-17 0.50
2017-18 0.46
Analysis: -
Quick ratio for the years 2016-17 and 2017-18 is 0.50 and 0.46 respectively. The ratio has
increased in the year 2016-17 when compare to 2017-18.
Liquid ratio
0.51
0.5
0.49
0.48
0.47
0.46
0.45
0.44
2016-17 2017-18
Liquid ratio
Interpretation
Standard ratio is 1:1. Quick assets ratio is fluctuating year by year and it was decreasing in the
year 2017-18, when compare to 2016-17.

5) Expenses Ratio
Expenses ratio are those that supplement the information given by operating cost ratio. They
are the ratios between expenses and sales.
Expenses Ratio = Expenses X 100

Net sales
YEAR EXPENSES RATIO

2016-17 87.18
2017-18 88.87
Analysis: -
Expenses ratio of the company for the years 2016-17 and 2017-18 is 87.18and 88.87
respectively. The ratio is increased in the year 2017-18, when compare to previous years.
Expenses ratio
89
88.5
88
87.5
87
86.5
86
2016-17 2017-18
Expenses ratio
Interpretation
Expenses ratio is increased in the year of 2017-18 And year 2016-17 which is highly decreased
highly expenses is outed in the year 2018-18.

CHAPTER: 6
LEARNING EXPERIENCE
It was great experience working in Himatsingka seide ltd. In Himatsingka seide ltd many things
about functioning of unit in accordance with the present market trends. The interaction with
company gave me an insight and a first-hand experience of the industrial scenario in the
competitive environment outside the realms of the institution the core competence of the
company lies in facts that it can meet its customer’s lies in fact that it can meet its customer’s
requirement with cost effectiveness along with value added services is the secret to its current
success which deserves great appreciation.
Himatsingka seide ltd is having good opportunity to grow and expand its operations nationally
as well as internationally
I was able to understand the importance of each department and their contribution towards the
achievements of the company objectives. I interacted with each departmental head and then
came to know the real situation, duties, responsibilities and functions of each department. in
spite of their busy schedules they were much interested to explain the different concepts
After the production site in the following weeks I visited to other functional departments.
In human resources department I meet senior HR executive who gave me all the details about
how many employees are working and how they are working and about their skills, which type
of training and welfare scheme were provided to employees and performance are rated.
Following are my experience to best of my knowledge:
 This study has helped me in applying my silks, abilities, knowledge and learning
gained through my academics and in practically applying it within the organisation
 I have learnt the importance of different management functions such as planning,
organizing, staffing, directing, and controlling.
 During the project work I have interacted with many employees and in charge
departments who helped me in enhancing my interpersonal skills like communication
skills, technical skills etc.

 This study has me a wider knowledge of the activities doing in the organisation
.
Himatsingka seide ltd is engaged in manufacturing of silk, fabrics and yarns products. It is
important for Himatsingka seide ltd to maintain stability and visibility in its operations it is
therefore very much important for HSL to during in for setting up a standard and ensuring the
attainment of its objectives. the ration analysis brings out many aspects where the valuation
ratios and receivables on profitability are very much in case of Himatsingka seide ltd. However,
HSL has made large profile profit during last financial years.
It could be inferred from the above analysis that, the efficiency of the receivables management
of this company was satisfactory. The competition receivables management of this company
was satisfactory. the competition is a major challenge that every finance manager encounters
during their working capital decision making process for optimum utilization of scare
resources. to examine the effects of receivables management, it is important to note the
difference between liberalized credit period and the profitability. it is the change in the
investments in receivables level and costs involved in that creates crucial difference between
these two. therefore, the finance monitors efficiently. plan and review periodically to remove
bottlenecks to reap maximum profits and increase its turnover.

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ORGANISATION STUDY AT HIMATSINGKA SEIDE LTD

INTRODUCTION ABOUT ORGANIZATION AND INDUSTRY

1.1 INTRODUCTION ABOUT:

Drapery & Upholstery

Silk & Blended Yarn

Department of MBA, SVCE, Bangalore. Page 1

Department of MBA, SVCE, Bangalore. Page 2

INDIAN TEXTILE INDUSTRY STRUCTURE AND GROWTH:

STRUCTURE OF INDIA’S TEXTILE INDUSTRY:

Department of MBA, SVCE, Bangalore. Page 3

• Weaving and Knitting:

Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers,

GROWTH OF TEXTILE INDUSTRY:

Department of MBA, SVCE, Bangalore. Page 4

SIZE OF TEXTILE INDUSTRY IN INDIA:

Department of MBA, SVCE, Bangalore. Page 5

Department of MBA, SVCE, Bangalore. Page 6

ORIGIN OF THE COMPANY:

IN 1991:The company proposed to expand the existing manufacturing facilities at

IN 1993 :1491650 rights shares issued.

IN 1994: It was proposed to increase the capacity to 168000sq meters.

credit Himatsingka ltd. Become a subsidiary of the company.

IN 1996 :1450 shares kept in abeyance were allotted.

Department of MBA, SVCE, Bangalore. Page 8

IN 1997: The company had up a capacity plant of 44 mw capacity.

b) 71,050 shares to the employees of the company.

c) 600 shares kept in abeyance issued

IN 2002: Mr.RKT Talwar director passed away

Department of MBA, SVCE, Bangalore. Page 9

Name and address: Himatsingka seide limited 23/A,

KIADB, Industrial area, Doddaballapur -561203

Factory license no: MYB-6584

First shift: Morning 7am to3 pm

Second shift: Afternoon 3pm to 11pm

General shift:9am to 5pm

Weekly holidays: Sunday

Factory manager: Mr. Srinivas rai.

Department of MBA, SVCE, Bangalore. Page 10

No.10/24, kumara krupa road,

High grounds, kumara krupa road,

Contact person: Mr Bopanna

“We aim to make Himatsingka seide

A design-led, legally integrated, global home textiles company.”

Department of MBA, SVCE, Bangalore. Page 11

3. To meet our customer’s expectations, Himatsingka seide shall consistently deliver

Department of MBA, SVCE, Bangalore. Page 12

Player Ring Framer Autoclave Winding

Assembly Twisting Autoclave Gassing

Bed linens and garments:

Department of MBA, SVCE, Bangalore. Page 13

Spinning process flow:

Department of MBA, SVCE, Bangalore. Page 14

Department of MBA, SVCE, Bangalore. Page 15

Product range of the company includes;

Department of MBA, SVCE, Bangalore. Page 16

1.Nine serves with more than 230 terminals

2. Corporate office connected through 2 maps lines.