Professional Documents
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MY PROJECT - .AWESOME APPARELS - LTD (Repaired)
MY PROJECT - .AWESOME APPARELS - LTD (Repaired)
MY PROJECT - .AWESOME APPARELS - LTD (Repaired)
TEXTILE INDUSTRY
The textile industry occupies a unique place in our country, since its
existence in India. It accounts for 14% of the total industrial production and
contributes to nearly 30% of the export and is the second largest employment
generator after agriculture.
Textile industry provides one of the most basic needs for people and
holds importance, maintaining sustaining growth for improved quality of life. It
has a unique position as a self-reliant industry from the production of raw
materials to the delivery of finished products with substantial value
addition at each stage of processing. It is a major contribution to our
economy.
CURRENT SCENARIO
Developing countries with both textile and clothing capacity may
be able to prosper in the new competitive environment after the textile
quota regime of quantitative import restriction under multi-fiber
arrangement (MFA) came to an end on 1 st Jan 2005 under the World Trade
Organization (WTO) Agreement ( textile and clothing).
The elimination of quota restriction will open the way for the most
competitive developing countries to develop stranger clusters of textiles
expertise, enabling them to handle all stages of the production chain
from growing natural fabrics for producing finished clothing. The OECD
paper says that while low wages can still give developing countries a
competitive edge in world market, time factors now play a crucial role in
determining international competitive countries that aspires to maintain an
export lead strategy in textiles and clothing, need to complement their
cluster of expertise in manufacturing by developing their expertise in the
higher value-added service segment of the supply chain such as design
sourcing or retail distribution, to pursue these avenues. National suppliers
need to place greater emphasis on education and training of service-
related skills and encourage the establishment of joint structure where
domestic suppliers can share market knowledge and offer more integrated
solutions to prospective buyers.
After the phasing out of quota regime under the multi-fiber act,
India can emisage its textile sectors becoming $100 billion industry
by 2010. This will include exports of $50 billion.
Adding to this, 66mills and 65 unviable mills have been closed after
implementing Voluntary Retirement Scheme(VRS) to all employees.
APPAREL INDUSTRY
India's supply base is medium quality, relatively high fashion, but small volume
business.
Indian economy may be showing signs of recovery in some sectors such as
cement and steel, textile sector continues to be in the doldrums with millions of
workers jobless, and export orders not picking up as demand continues to be
low from US and developed markets.
It contributes about 13 per cent in export earning and 4 per cent in India’s GDP
is still suffering the heat of global slowdown as indicated by declining exports
and massive layoffs.
A recent study said that the economic meltdown in the major export markets of
Europe and the US has led to a substantial fall in foreign orders that has resulted
in an estimated loss of about one million jobs during the last few months.
Textile exports during April-March 2008-09 registered a decline of 1.71 per
cent from USD 22.13 billion in April-March 2007-08 to USD 21.75 billion.
Among the maximum hit segments, handicrafts registered maximum decline of
48.35 per cent in 2008-09, from USD 3481.14 million in 2007-08 to USD
1797.88 million.
Rs 49,613 crore from Rs 31,161 crore in 2007-08. But as compared to the year
2006-07 the sector registered 48 per cent decline in investment. However, in
2006-07, Rs.90, 369 crore of investment was poured in textile sector.
A detailed study has stated that despite marked improvement in the financial
position, the Indian apparel industry continues to face serious issues involving
transaction cost and raw material.
The sector suffers from high power cost and lack of power supply. Effective
power management system has to be put in place. States should offer power at
low cost on the incentive based system for the new investment made in the
textile industry for commercial production.
Technology Up gradation Fund Scheme (TUFS) for textile firms from Rs 3140
crore to Rs 4500 crore and release appropriate funds to clear the existing
backlog of subsidy payments and upgrade technology of textile units.
There has been a stiff competition from the countries in which the
labor cost is considered to be low, such as Bangladesh, Pakistan etc. Recent
recession in Europe and the South Asian currency crisis have also contributed
their own bits to the decimating Indian exports. Though these are expected to
fizzle out soon, there is no reason for complacency on the part of Indian
exporters or of the garment industry. The industry will be soon faced with open
competition shorn of quotas or tariffs.
Thus the need of the hour is to enlarge both manufacturing as well as the
marketing base. Inculcation of a spirit of innovation by way of research and
development and tapping new markets especially in South Africa, Central
Africa, CIS, East European countries, Latin America and Australia is also
mandatory for export growth.
The study was restricted only for 45 days. Due to time constraint an in
depth study of all the departments was not possible.
In the study only the general organization study has been selected.
Since the managers were busy with their work schedules it was not
possible for us to spend more time with them for discussion.
MANAGEMENT
The company is managed by its President Mr. Vijay Lakhani.
LOCATION
Awesome apparels Co Pvt Ltd., in the Peenya Industrial Area of
Bangalore city is 15km from the Bangalore International Airport.
FACTORY/OFFICE
PRINCIPLE RELATIONSHIPS
The company caters its manufacture to the International Market, for
well known international brands and stores, to name a few are given
below.
JC PENNEYS
KOHIL’S
SEARS
TARGET MERVYNS
H&M
PRIMARK RETAIL / ASSOCIATES
OTTO.
PHONE : 08028364400
TRADE MARK :
SOURCE OF FINANCE : Punjab National Bank
MANUFACTURE & EXPORT : Men’s, Ladies, & kids wear
EXPORTED TO : US
BOARD OF DIRECTORS
Mr. S.K.SHARMA
Mr. J.ALEXANDER
Mr. A.MURALI
MACHINERY INSTALLED
Cutting Machine 03
Cloth Drilling Machine 02
End Cutter 03
S/Needle machine 235
S/Needle men with edge cutter 36
Fusing machines 02
Pneumatic Collar Turning 04
Machines
Over lock Machine 36
Feed of the Arm 18
Washing machine :
It is used to wash the garment.
Pressing machine:
It is used for ironing the garment.
Sewing machine
Inspection Machine
FABRIC RANGE
All cotton and blended Yarn dye fabrics, Mill made fabrics, Denim,
Special fancy fabrics from South India.
Have import facilities under NFE and DEC schemes to import
Special fabrics from the Far East.
LABORATORY
In house to check GSM, Fabric Quality, Color Matching, color
Fastness Crocking, Washing Machine.
SPECIAL FINISHING
We can achieve special finishes like, peach finish, silicon, Enzyme
QUALITY SYSTEMS
Awesome Apparels is committed to manufacture and supply ready
made garments to the satisfaction of its valued customers by its employee
Following the International Quality Management systems.
SOCIAL ACCOUNTABILITY
The company follows the principle of International Human
Rights. The company does not believe in child labor and forced Labors.
The best working environment and standards are provided to the
employees in view of safety and health. No discrimination based on caste,
religion gender, or whatsoever is followed.
The manufacturing process does not pollute air, water, or
Atmosphere. The best housekeeping and noiseless atmosphere boosts the
morale of the employees.
Free Medical attention is given to the minor medical needs by
Red Cross trained staff. Free medical treatment provided at a near by
dispensary. Rest room provided for working staff who need to take rest
medical reasons.
VISION
MISSION
Product profile
Product range
MEN’S
Formals
Twin flits
Semiformal
Casual
Fleet front
Cargo pants
Zip up pants
Shorts
Pyjamas
Shirts
Formals
Short sleeves
Full sleeves
Shorts
Casuals
Denim
WOMEN’S
Ladies Tops
Ladies pyjamas
Shorts
Trousers
Skirts
kurtas and tops
KID’S
Kid’s shirts
Half elastic pants
Denim
Organization
Chart
MERCHANDISING DEPARTMENT:
a) Senior merchandiser
b) Assistant merchandiser
Pattern
a) Pattern master
b) Assistant
Sampling
a) Sampling master
b)Tailor
c) Assistant
PURCHASE AND MAINTAINANCE DEPARTMENT
a) Department head
b) Staff
c) Assistants
PRODUCTION DEPARTMENT
a) Supervisors
b) Workers
c) Helpers
d) Ironers
e) Checking in charge
f) Trimmers
MARKETING DEPARTMENT
a)Finishing in charge
b) Supervisors
c)Workers
d) Helpers
e)Button department
f) Stain remover
g) Packing department
h) In charge and team of workers.
HRD
a) Administration and welfare officers
b) HR Personnel
c) Assistant
d)Medical team.
c)Production batch
d)Inline measurement
e)Finishing department
f) Final auditor
FINANCE DEPARTMENT
a)Managers
b)Assistants.
STORES DEPARTMENT
a)Supervisor
b) Checking in charge
c)Staff
d) Assistants
1) MERCHANDISING DEPARTMENT
2) STORES DEPARTMENT
3) PURCHASE DEPARTMENT
4) PRODUCTION DEPARTMENT
6) MARKETING DEPARTMENT
7) FINANCE DEPARTMENT
9) MAINTAINENCE DEPARTMENT
MERCHANDISER DEPARTMENT
MANAGING
DIRECTOR
SENIOR
MERCHANDISER
ASSISTANT
MERCHANDISE
R
ANALYST
HELPER
MEANING OF MERCHANDISING
The functioning of the merchandising department begins with the sourcing for
the new order or the repeat order, and continues till the shipment deadline has
been met. Merchandisers act as mediators between the export house and the
buyers. They know what buyers want and what the company is able to and
willing to deliver. They are responsible for timely execution of the orders.
• The main function of the merchandising department is a follow up process.
The merchandisers serve as mediator between the buyer and export house. They
carry out pre production planning with the help of the production manager so
that the order gets completed in a smooth and organized manner on time.
• The merchandisers keep track of all the departments' progress with their
orders. They maintain a copy of the documents from all the departments, which
show the status of the orders in those departments.
• The merchandisers discuss the details of the material with the QC's and
pattern masters and negotiate with the buyer if there are any changes to be done.
• The job of costing the garments is with the senior merchandiser and it has to
be approved by the divisional merchandising head.
STORES DEPARTMENT
Structure of Stores Department
TYPES OF STORAGE
Merchandise/swatch card.
Delivery challan.
Stock register
Completion report.
Purchase order.
PURCHASE DEPARTMENT
MANAGING
DIRECTOR
MANAGER
ASSISTANT
MANAGER
HELPER
OBJECTIVES
PRODUCTION DEPARTMENT
Technician
Assembling Checking
Supervisor Supervisor
OBJECTIVES
Pattern/sampling section
Fabric section
Cutting section
Production section
I. PATTERN/SAMPLE SECTION
This is the first step in the manufacturing process. In this process the
buyer sends the sketch and the sample of the garments to pattern masters
along with the measurement sheet, construction sheet and any other
information regarding the garment.
The sample sent to the sample section should be fit by 3 pieces before
wash and must identify the shrinkage before and after wash.
The second step in the pattern section is the buyer sends the
additional measurement of the sample with photography and style sample.
According to the pattern, the master prepares the pattern and sends it to
the buyer. This method is called as fit sample.
Merchandise card
In the fabric section they follow the 4point system to calculate the
defects in materials.
If there is any material in which more than 42% defects are found, that
particular material is rejected.
Types of Fabric
Cotton
Likra
Waile
Condra
Jeans
Poplene
CUTTING SECTION
The section cuts the lay as per the pattern mark. The next step
involves marking of serial numbers to the fabric cut such as sleeves, front,
collar, etc. The next step involves randomly selecting 7 pieces, that are
checked for perfection. If it is found agreeable then it sent for the next
process.
by making button holes and fixation of buttons before sending for washing
(if necessary only.) The button holes and the buttons are made as per the
measurement given by the pattern section.
The washed garments are ironed and moved to the trimming table for
cutting the unnecessary threads and it is checked by the checkers for any
mistake in the garments. In the process the measurement, style and the
manufacturing of the garment is thoroughly checked.
PACKING SECTION
Once these stages are over, folding and tagging is made by this
section and the garments are packed as per the buyer’s instruction. It is
checked by the final auditor of the company and later by the buyer
quality inspector
PACKINGSECTION
LABELLINGSECTION
HR MANAGER –Ms.PAVITHRA.D.R.
NO.EMPLOYEES –82 EMPLOYEES
OBJECTIVES
CLASIFICATION OF EMPLOYEE
Permanent employee
Probationary employee
Temporary employee
Casual employee
Trainee/apprentice/learner employee
APPOINTMENT OF EMPLOYEES
All appointments of employees will be made in writing by
the managing Director/General manager or such other office
duty authorized by the company.
Employees are required to agree the terms and rules of the
company.
Employees are required to submit medical certificate, age proof and
address proof.
LEAVES STRUCTURES
LEAVE RULES
MATERNITY LEAVE
Every women employee who is covered under ESI act, will be
entitled to maternity leave as per ESI act with salary for a period of 12
weeks that is 6 weeks up to and including the days of delivery there
after 6 weeks immediately following that day.
ACCIDENTS
Any workman/employee sustaining an injury during the course of
his work shall immediately bring it to the notice of the foreman,
supervisors, department head or manager for necessary action. All such
injuries shall be entered in the register and shall be kept for the purpose
by the management.
NOTICE OF STRIKE
No workman/employee shall go on strike without issuing a notice in
prior to the management in writing of his intention to resort to strike.
MARKETING DEPARTMENT
MANAGIN
G
DIRECTOR
MARKETING
MANAGER
ASSISTANT
MARKETING
MANAGER
HELPER
OBJECTIVES
MARKETING
The company itself is responsible for selling their products and it
has been found out that the company has been quite successful in
marketing their own products.
MARKETING MIX
Marketing mix is the policy adopted by the manufactures to get
successful in the field of marketing. It emphasizes the consumer’s
preference .Manufacturer first analyses the consumer needs and then plans
his production to give ultimate satisfaction to the consumers. Every
management is therefore concerned with the markets and market behavior
to identify needs of the consumers.
Product.
Price.
Promotion.
Physical distribution
PRODUCT LINE
women
women
THE ORIGINAL
Jeans company
FINANCE DEPARTMENT
MANAGING
DIRECTOR
FINANCE
MANAGER
ASSISTANT
FINANCE
MANAGER
HELPER
FINANCE DEPARTMENT
OBJECTIVES
1) FINANCIAL SOURCE
Awesome Apparels have closely related with Punjab National
Bank. They have taken a loan in the form of letter of credit (LC) from
this bank.
2) ACCOUNTING PROCEDURE
In Awesome Apparels Pvt Ltd., they follow fully computerized
accounting system. They adopt Tally procedure system for their
accounting system.
3) WORKING CAPITAL
It refers to the flow of ready funds necessary for the working of
the organization. A part of investment in fixed assets explains that every
enterprise has to arrange for adequate funds for meeting day-to-day
expenditure to keep it a going concern.
4) INVENTORY
All raw materials will be at two months stock level. The
purchase is done in bulk depending on the availability and demand for
finishing goods.
Valuation of inventories
Raw materials are valued at weighted average cost.
Work in progress is valued at materials cost and no overheads are
recognized.
Finished goods are valued at cost excluding excise duty.
5) FIXED ASSETS
Awesome Apparels Pvt Ltd., have 450 stitching machines. All
are imported Machines, Individual cost of this machines are between
Rs.18000 to Rs.26000.
6) DEPRECIATION
Awesome Apparels follows the Return down value method for
calculating the depreciation of the fixed assets. Assets calculated as per
rates specified in schedule XIV of the Company’s Act of 1956.
Managing
director
DEPARTMENT HEAD:PRAKASH.J.
EMPLOYEES: 33
QUALITY CONTROL:
Quality is an essential requirement for any product. Quality is a relative
term and is generally explained with reference to the end use of the product.
Granting the quality is a major concern for any garment industry.
Qualities refers to get the product to the customer as per the specifications
given by the customer and also to obtain good stitching and good material
without any defect. The following are the duties done under quality control
Department:
In sewing line:
They make garments only by chain system (only one operation is
given to an operator) this helps in delivering good quality, as the
workers specializes in a single operation.
At the start of every bundle, top bottom and middle pieces are
taken from each bundle and measurement and piece balancing
inspection is again done.
Two mid check points are given in sewing line. 100% pieces are
checked on these points.
During the day, random pieces from each machine are checked for
stitch quality (operator and machine fault) seam allowances taken
by operators in over locks, lockstitch and interlocks are monitored
and simultaneously random measurements are taken.
All threads are cut, before every inspection (mid check points and
final point) and loose threads are taken out before giving to final
inspection. At final inspection pieces are checked 100% from
inside and outside. All shapes, pieces balancing etc. are checked.
Their lines generally work on 2% alteration e.g. on final inspection
table, out of 1000 pieces, 20 pieces alteration are found. They are
continuously working to reduce this alteration percent.
There after audit is done at AQL 2.5 of every pass lot. All audits
are done from a defined chart, which describes the lot size, sample
size and no. of defects allowed. This system is followed strictly as
per standards and lots are passed and rejected as per the standards
defined.
MAINTAINANCE DEPARTMENT
MANAGING
DIRECTOR
MANAGER
HELPER
Maintenance Department
Effective maintenance management forms an important approach to
reduce the total manufacturing cost and improves the productivity of
production process; failure of this management can lead to high penalty
cost.
Maintenance department at AWESOME APPARELS is mainly a
maintenance division and its main work is to maintain the machinery and
imported spare parts in an emergency basis.
OBJECTIVES
To maintain plant and machinery.
Avoid break down during the production process.
To ensure a longer life span of plant and machinery.
To minimize operational costs through optimal maintenance.
Cotton waste
Needles
Machinery parts etc;
SWOT ANAYSIS
Strengths
Strong marketing presence and distribution in selected regions in US.
Weakness
The company sources its entire raw material requirement from only one
company, i.e. the BIG APPLE COMPANY.
The company sells its products to only one company, there by not
attracting other markets.
The company has a reputation of being a manufacturer of ladies
garments, so the other lines of products are not being popularized.
The company is perceived as middle class casual wear, even though the
garments manufactured by AAPL are of good quality. There by
restricting its entry into upper class range.
They do not have a strong local presence. 100% of its products are
exported to US.
The on-going recession in US will have a great impact on the company
sales.
Opportunities
Us has phased out quota regime under the multi-fiber act. This
provides tremendous opportunities for the company to expand.
Their major production is in cotton fabric. The popularization of cotton
fabric all over the world will lead to better demand for the company.
Threats
“Me Too” competitors in garments like John Players, Allen Solly,
Peter England, Levis, etc., are available at equal prices.
The general recession is affecting apparel industry to a great extent.
FINDINGS
The company has a very poor publicity and marketing, due to this
it has not been able to make it to the other markets.
SUGGESTIONS
Rapid changes are taking place in the global clothing trade. With the
abolition of quota restriction and emergence of trade blocks, so the
company should be fully geared to compete on the basis of
commercial factors like quality, prices, delivery schedules and
marketing skills.
CONCLUSION
Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the
US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh
and Japan. The name of these countries with their background can give thousands of insights
to a thinking mind. The slant cut that will be producing a readymade garment will sell at a
price of 600 Indian rupees, making the value addition to be profitable by 300 %.
Currently, because of the lifting up of the import restrictions of the multi-fibre arrangement
(MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on
Textiles and Clothing, the market has become competitive; on closer look however, it sounds
an opportunity because better material will be possible with the traditional inputs so far
available with the Indian market.
At present, the textile industry is undergoing a substantial re-orientation towards other then
clothing segments of textile sector, which is commonly called as technical textiles. It is
moving vertically with an average growing rate of nearly two times of textiles for clothing
applications and now account for more than half of the total textile output. The processes in
making technical textiles require costly machinery and skilled workers.
The application that comes under technical textiles are filtration, bed sheets and abrasive
materials, healthcare upholstery and furniture, blood-absorbing materials and thermal
protection, adhesive tape, seatbelts, and other specialized application and products.
Strengths
. India enjoys benefit of having plentiful resources of raw materials. It is one of the largest
producers of cotton yarn around the globe, and also there are good resources of fibres like
polyester, silk, viscose etc...
. There is wide range of cotton fibre available, and has a rapidly developing synthetic fibre
industry.
. India has great competitiveness in spinning sector and has presence in almost all
processes of the value chain.
. Availability of highly trained manpower in both, management and technical. The country
has a huge advantage due to lower wage rates. Because of low labor rates the
manufacturing cost in textile automatically comes down to very reasonable rates.
. The installed capacity of spindles in India contributes for 24% share of the world, and it
is one of the biggest exporters of yarns in the global market. Having modern functions and
favorable fiscal policies, it accounts about 25% of the world trade in cotton yarn.
. The apparel industry is largest foreign exchange earning sector, contributing 12% of the
country's total exports.
. The garment industry is very diverse in size, manufacturing facility, type of apparel
produced, quantity and quality of output, cost, requirement for fabric etc. It comprises
suppliers of ready-made garments for both, domestic or export markets.
Weakness
Massive Fragmentation:
The industry veterans portrays the present productivity of factories at half to as low as
one-third of levels, which might be attained. In many cases, smaller companies do not
have the fiscal resources to enhance technology or invest in the high-end engineering of
processes. The skilled labor is cheap in absolute terms; however, most of this benefit is
lost by small companies.
The uneven supply base also leads barriers in attaining integration between the links in
supply chain. This issue creates uncontrollable, unreliable and inconsistent performance.
Secondly, the foreign investment was kept out of textile and apparel production. Now, the
Government has gradually eliminated these restrictions, by bringing down import duties
on capital equipment, offering foreign investors to set up manufacturing facilities in India.
In recent years, India has provided a global manufacturing platform to other multi-national
companies that manufactures other than textile products; it can certainly provide a base for
textiles and apparel companies.
Despite some motivating step taken by the government, other problems still sustains like
various taxes and excise imbalances due to diversification into 35 states and Union
Territories. However, an outline of VAT is being implemented in place of all other tax
diversifications, which will clear these imbalances once it is imposed fully.