MY PROJECT - .AWESOME APPARELS - LTD (Repaired)

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Awesome Apparels Pvt ltd

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.

It acts as a vast potential for creation of employment opportunities in the


field of agriculture. Although the development of textile sector had earlier
taken place in terms of general policies, in recognition to the importance
of this sector. For the first time a separate policy statement was made in
the year 1985, in regard to the development of textile sector. The textile
policy of 2000 aims at achieving the textile and apparel exports of
US$50 billion by 2010 of which the share of garments will be US$25
billion. The main markets for Indian textile and apparels are USA, UK,
GERMAN, FRANCE, ITALY, RUSSIA, CANADA, JAPAN,
BANGLADESH.

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The main objectives of the textile policy 2000 is to provide clothes


of acceptable quality at reasonable prices for the vast majority of the
population of the country to increasingly contribute to the provision of
sustainable employment and economic growth of the nation and to
compete with confidence for an increasing share of the global market.

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).

As a result the textile industry in developed countries will face


intensified competition in both their export and domestic market. However
the migration of textile capacity will be influenced by objectives,
competitive factors and will be hampered by the presence of distorting
domestic measure and weak domestic infrastructure in several developing
and least developed countries.

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

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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.

The mood in the Indian textile industry given in the phase-out of


the quota regime of the Multi Fiber Arrangement(MFA) is upbeat with
new investment flowing in and increased ordered of which capacities are
fully booked up to April 2010. As of various initiatives taken by
government, there has been an investment of Rs 50,000crs in textile
industry in the last 5years. Nine major textile industries invested Rs
2,600cr and has planned to invest another Rs 6,400crores. Further, India’s
cotton production has increased by 57% over the last 5years and 3million
additional spindles and 30,000 shuttle less looms were installed.

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The industry expected investment of Rs 1,40,000Cr in this sector in


the past MFA phase. A vision 2010 for textiles formulated by the
Government after intensive interaction with the industry and export
promotion councils to capitalize on the upbeat mood aims to increase

India’s share in the world textile trade from the current 4% to 8% by


2010 and to achieve export value of US$50 billion by 2010. The textiles
emisager growth in Indian textile economy from the current US$37 billion
to $85 billion by 2010. Creation of 12 million new jobs in the textile
sector and modernization and consolidation for creating a globally
competitive textile industry.

Latest news in textile industry

 Minister of finance has added 165 new textile products under


duty drawback schedule. New products included wool tops, cotton,
yarn, acrylic yarn, viscose yarn, various blended yarn/fabrics
finishing nets etc. Further the existing entries in the drawback
schedule relating to garments have been expanded to create separate
entries. Man made fiber blend and MMF, separate rates have been
prescribed for these categories of garments on the basis of
composition of textiles.

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 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.

 Textile minister Mr.M.Dayanidhi Maran has revealed that the Board


for Industrial and Financial Reconstruction(BIFR) had approved
rehabilitation scheme for sick mills at a cost of Rs 3900cr.

Adding to this, 66mills and 65 unviable mills have been closed after
implementing Voluntary Retirement Scheme(VRS) to all employees.

 Proposal for modernization of production mills have been made


to the consulted committee members, including formation of a
committee for exports for improvised management of these mills.
Even the present status of jute industry was under the scanner of
the consultative committee.

 The Government had announced change from the value-based


drawback rate hitherto followed to a weight-based structure for
textile exports that will discourage raw materials exports and also
curtail the scope for misusing the drawback claims by boosting
invoice value of exports.

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APPAREL INDUSTRY

The apparel industry is one of India's largest foreign exchange earners,


accounting for nearly 16% of the country's total exports. The 1996 Indian
textile exports approximately amounted to Rs.35, 000 crores of which apparel
occupied over Rs14, 000 crores.

It has been estimated that India has approximately 30,000 readymade


garment manufacturing units and around three million people are working in the
industry. Today many leading fashion labels are being associated with Indian
products. India is increasingly being looked upon as a major supplier of high
quality fashion apparels and Indian apparels have come to be appreciated in
major markets internationally. The credit for this goes to our exporter
community.
Consistent efforts towards extensive market coverage, improving
technical capabilities and putting together an attractive and wide merchandise
line has paid rich dividends. But till today, our clothing industry is dominated
by sub-contractors and consists mainly of small units of 50 to 60 machines.

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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.

Textiles industry is the second major employer in India after agriculture,


providing employment to 91 million people according to Eco Pulse study titled
Indian apparel Scenario.

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.

Textile sector registered 50 per cent increase in investment during 2008-09 to

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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.

According to the Chamber, an investment of Rupees one lakh in power loom


sector creates about three jobs, hence the government should create an
investment friendly environment and provide low interest rate loans to investors
and should also provide export profits be made tax-free in slow down period to
encourage the export.

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 government needs to focus on infrastructure facilities related to the supply


chain and provide low cost logistics service to the sector.

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.

The sector requires higher technology up gradation and active involvement of


new technology. Government should further increase funds under the

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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 concept of apparels has given out a unique dimension by way of


Design, lesser cost and immediate delivery. This acts as a better platform for the
Working class to use the best of the products of the apparel industry. In this
Backdrop let me present my project, A STUDY ON AWESOME APPARELS
Pvt. Ltd.

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Awesome Apparels Pvt ltd

Objectives of the study

The present study has been taken up with following objectives

 To know the growth and present state of Indian cotton textile


Industry.
 To know the strength and weakness of Awesome Apparels Pvt Co
Ltd.
 To know the operating, Manufacturing and Quality maintenance
of Awesome Apparels Pvt Ltd

LIMITATIONS OF THE STUDY:

The study was restricted only for 45 days. Due to time constraint an in
depth study of all the departments was not possible.

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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.

THE AWESOME APPARELS PVT.LTD

The company is setup as a Private Limited Company in Bangalore.


It is engaged in manufacture and exports of readymade garments and
Caters its merchandise to the global market.

MANAGEMENT
The company is managed by its President Mr. Vijay Lakhani.

Mr. Vijay Lakhani


Mr. Vijay Lakhani has acquired knowledge in textile technology and
started of his career in trading of fabrics to the domestic requirement
and also exports. He traveled extensively round the globe gaining
immense knowledge in the field of garment technology. During these

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years he gained immense experience and knowledge of the apparel


industry in the US Market.

Going forward his Merchandise office at Mumbai and his office at


Bangalore concentrates on Merchant Export to the Global requirement. He
Specialized in manufacturing and marketing of international brands
Worldwide apart from improving the profitability and business structure of
Of his company.

Now, Mr. Vijay Lakhani, being the President of this company,


Also heads BIG APPLE EXPORTS which is the buying office
representation of KRAZYKAT SPORTSWEAR LLC., having its Head
office At New York, United States of America. This office controls the
Asia Pacific operation having branch offices at Bombay and Madras.

Mr. Vijay Lakhani is a person with rich experience in the Apparel


Industry at the Regional and International Level.

LOCATION
Awesome apparels Co Pvt Ltd., in the Peenya Industrial Area of
Bangalore city is 15km from the Bangalore International Airport.

FACTORY/OFFICE

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Awesome Apparels Pvt ltd

Total Area : 40,000 SFT BUILTUP AREA


The manufacturing unit is equipped with specialized imported
Machines and can execute bulk orders as its capacity is 3600pcs/day. For
this purpose the latest and ultra modern, Japanese machines have been installed.
The finish of the garment is given experienced and skilled workers who
operate with perfect precision.

Awesome Apparels consider its highly skilled and dedicated workforce


as its biggest asset. The exemplary welfare measure laid out have made
them a contented work force so essential for the success of the
enterprise.

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

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 H&M
 PRIMARK RETAIL / ASSOCIATES
 OTTO.

THE COMPANY AT A GLANCE

NAME OF THE COMPANY : Awesome Apparels Pvt Ltd


EARLIER NAME : Manjushree Garments
YEAR OF ESTABLISHMENT : May 1998
YEAR OF INCORPORATION : May 1998
REGD HEAD OFFICE : Awesome clothing pvt ltd.
#2/4, 1st floor Aragini Bhavan
Dr Raj kumar road, Rajajinagar
Bangalore-560010

PHONE : 08028364400

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CONTACT PERSON : Lakshmi kanth


FACTORY : 48/4&9, Karivabanahalli,
Bangalore North Taluk,
Peenya 2nd sage,
B’lore-560080
MANAGEMENT CONTROL : Board of directors nominated by
The chairman and MD

TRADE MARK :
SOURCE OF FINANCE : Punjab National Bank
MANUFACTURE & EXPORT : Men’s, Ladies, & kids wear

SPECIALIST IN : Ladies garments

BUSINESS POLICY : Strict quality control


Reasonable price,
Fair deal to our customer for
Mutual growth

EXPORTED TO : US

PRODUCTION SETUP : Imported sewing machines for


Stitching, cutting, butting, elastic,
Fitting, embroidery etc
In house facility right from cutting

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Stitching, finishing, and packing.


Plant & machinery worth Rs2 crores

OUTSOURCE PRODUCT : Fabrics

TOTAL EMPLOYEES : 750

BOARD OF DIRECTORS

 Mr. M.R. VIJAY LAKHANI, Chairman & Managing Director


 Mr. M.R. SATISH, Joint Managing Director
 Mr. M.R. RAVI, Executive Director
 Mrs. DEEPA KUMAR
 Mr. RAJASHEKAR
 Mr. M.R. GANGANNA
 Mr. M.R. GANGADHAR

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 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

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Button stitch Machine 08


Button Hole Machine 08
Bar tacking Machine 04
Pivoting Machine 02
Snap Attaching Machine 04
Stain Removing Station 01
Steam Ironing Station 24
Double Needle Machines 18

NAMES OF SOME OF THE MACHINES AND THEIR USES

 Cutting machine / band knife machine :


It is used for cutting fabric according to the requirement.
 Edge cutter machine :
It is used to cut the edges of the fabrics as per the measurement.
 Sewing machine :
It is used to stitch the different parts of the fabric together.
 Button stitching machine :
It is used to stitch the buttons adjacent to the button holes made
 Over lock machine :
It is used to over lock the stitching.
 Button hole machine:
It is used for holding of the button in its place.
 Stain removing machine :
It is used to remove any stains in the material r fabric.

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 Washing machine :
It is used to wash the garment.
 Pressing machine:
It is used for ironing the garment.

TYPES OF MACHINES USED IN AWESOME APPARELS

Sewing machine

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Yarn dyeing machine

Textile printing machine

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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

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wash, mercerizing, pigment dyeing value addition with the facility of


Industrial Laundries and processing units situated very nearby our
manufacturing base.

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.

The company is certified for manufacture for JC Penney’s, Target


Mervyns, Kohl’s, H&M complying to norms set by them.

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.

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Attendance Bonus is paid on a monthly basis for eligible


employees. Grant of bonus given annually. In house crèche takes care of
infants of our employees by efficient midwives. Working hours do not
exceed the stipulated working hours layer down by the factory’s Act. A
spacious and clean lunch room is provided for all employees.

VISION

 To build a world class company.

 Preferred suppliers to global company.

 Rapid adaptation to the latest technology.

 Strive for excellence in quality and reliability to meet global challenges.

 Capacity to handle high volumes.

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 Cost effectiveness through innovative process.

MISSION

To meet the challenges of global market and passion for


excellence through customer delight, cost competitive, continuous updating
of engineering skills.

Product profile

Awesome apparels produces the followed products range based


on the order given by the Big Apple co Pvt Ltd.

Product range
MEN’S
Formals
Twin flits

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Semiformal

Casual
Fleet front
Cargo pants

Zip up pants
Shorts
Pyjamas

Shirts
Formals
Short sleeves
Full sleeves
Shorts

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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

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Managing director – Mr. Vijay Lakhani


General Manager – Mr.B.Ravi Prasad
The following departments come under the review General Manager:

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 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

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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.

 QUALITY CONTROL DEPARTMENT


a)Cutting section
b)Spreader cutter

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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

DEPARTMENTS OF AWESOME APPARELS


Various functional departments are a trademark of every productive
organization. In Awesome Apparels Pvt Ltd,the following are the departments

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performing various functions to attain their departmental objectives which


in turn confine towards attaining organization’s mission as a whole.

VARIOUS DEPARTMENTS OF AAPL

1) MERCHANDISING DEPARTMENT

2) STORES DEPARTMENT

3) PURCHASE DEPARTMENT

4) PRODUCTION DEPARTMENT

5) HUMAN RESOURCE DEPARTMENT

6) MARKETING DEPARTMENT

7) FINANCE DEPARTMENT

8) QUALITY CONTROL DEPARTMENT

9) MAINTAINENCE DEPARTMENT

MERCHANDISER DEPARTMENT

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STRUCTURE OF MERCHANDISING DEPARTMENT

MANAGING
DIRECTOR

SENIOR
MERCHANDISER

ASSISTANT
MERCHANDISE
R

ANALYST

HELPER

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SENIOR MERCHANDISER: P.R.DASGUPTA


EMPLOYEES: 22

MEANING OF MERCHANDISING

According to the American Heritage Dictionary, merchandising is the


promotion of merchandise sales, as by coordinating production and marketing
and developing advertising, display, and sales strategies: basically everything
included in the process of selling a product to the ultimate consumer.

FUNCTIONS OF MERCHANDISING DEPARTMENT

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.

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• The job of costing the garments is with the senior merchandiser and it has to
be approved by the divisional merchandising head.

RESPONSIBILITIES OF MERCHANDISING DEPARTMENT


• Forecasting sales.
• Planning the product range with the buying team.
• Liaising with buyers, store managers, distributors and suppliers.
• Visiting manufacturers, stores and suppliers.

DOCUMENTS MAINTAINED UNDER MERCHANDISING


DEPARTMENT

Various documents and files that merchandisers maintain are:


Fabric files,
Trim files,
Style master files,
Format files,
Art works files etc.

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STORES DEPARTMENT
Structure of Stores Department

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DEPARTMENT HEAD - Mr.B.L.RANGANATH


NO.OF EMPLOYEES - 60

FUNCTIONS OF STORES DEPARTMENT

Stores department enables the organization in efficient functioning,


removal of obsolete materials, keeping close track of high value
materials, enable the organization in cost reduction. Stores personal can
contribute to productivity and un-stopped production by quick issues,
elimination of pilferage, wastage, safety and insurance aspects care.

The Awesome Apparels Pvt Ltd’s stores department performs


following main functions.

 Receiving the goods to stores as per the purchase order.

 Arrange the inspection of the materials.

 Proper storage of goods in stores department.

 Issuing the materials to production.

 Maintain the proper inventory level.

 Maintaining of proper records.

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TYPES OF STORAGE

The stores department of Awesome Apparels Pvt Ltd., stores and


stocks the raw-materials indifferent cells with special criterion on each
one of its features. The following are the different storage cells available
to store varied materials.
 Label
 Buttons
 Threads

PROCEDURE FOLLOWED IN STORES DEPARTMENT

The stores department of Awesome Apparels Pvt Ltd., follows FIFO


method for issuing goods. The stores department requests the materials
department to place an order when there is no stock of materials asked
by the user department. The materials department sends the copy of
purchase orders to the stores department and in turn the stores
department inspects raw-materials to check whether they meet the
specification and they prepare the goods received report.

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From the following procedure the company receives the


Materials:

 The document to be followed as per purchase order of the


Company are delivery challan and bills of vendor.

 Materials can be checked for quality and quantity as per


delivery challan.

 Separate storage arrangement is made in stores department.

 Maintaining goods inward book(GIN) for every incoming


Materials with relevant details.

 It is the responsibility of the stores personnel to set the


materials inspected early so that rejected if any can be
returned and accepted quantity and items can be issued for
production.

 Maintaining of the stock register. It gives details of the receiving,


Issuing, and balancing of the stores department with quantity
and volume.

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DOCUMENTS MAINTAINED IN STORES DEPARTMENT

The following are the main documents prepared and maintained by


stores department for its purpose of reporting to finance department.

 Merchandise/swatch card.

 Delivery challan.

 Goods Inward Book(GIN)

 Stock register

 Completion report.

 Purchase order.

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PURCHASE DEPARTMENT

STRUCTURE OF PURCHASE DEPARTMENT

MANAGING
DIRECTOR

MANAGER

ASSISTANT
MANAGER

HELPER

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Awesome Apparels Pvt ltd

DEPARTMENT HEAD-Mr.B.VITTAL RAO


NO.OF EMPLOYEES – 97 EMPLOYEES

OBJECTIVES

 Assuring of continuous availability of materials at the


Production cells.

 Prevention of excessive investment in materials.

 Assuring of minimum wastage.

 Purchase price being reasonable and that matches the quality


and service.

 To upgrade technical efficiency of the production process. Be


informed of material requirements, stock and usage over
regular intervals to keep a track of records.

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PROCEDURE FOR PURCHASING OF MATERIALS

In AAPL if the management wishes to go in for a new supplier for


purchasing of goods the company follows the following procedure.

 Getting trims details from merchandise.

 Collecting the consumption of materials from the merchandise.

 Making of a purchase order note to the corresponding supplier.

 Filing the materials and the sample swatches approved by merchandiser.

 Getting sample from supplier and matching it with the approved


swatch card by buyer or merchandise

 Daily follow up by the supplier.

 Preparing purchase cost after completion of order.

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MATERIALS PURCHASED FROM


The raw materials that are purchased by Awesome Apparels
are being supplied from various suppliers within India and throughout the
world. The company purchases the raw materials in bulk and the materials are
stored under the stores department systematically.

PAYMENT TO THE SUPPLIER


Giving maximum delivery date of 10 to 15 days to the supplier and
payment is made in prior 30 to 40 days by credit.

DOCUMENTS MAINTAINED IN PURCHASE DEPARTMENT


The following are the main documents prepared and maintained by
Purchase department for the purpose of reporting it to the finance
department.

 Purchase cost sheet.


 Maintaining details of P O in excel sheet by supplier and material
wise.
 After receiving bills from the supplier, making of the GIN and
passing the Bills to the finance section.
 Maintaining of monthly stock register.

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PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT

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Technician

Assembling Checking
Supervisor Supervisor

DEPARTMENT HEAD- Mr.M.Prasadh & Mr.L.SINGHANIA


NO.OF EMPLOYEES – 178 EMPLOYEES

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The product is of utmost important to any organization with out


which any managerial activity is impossible. So at AWSOME APPARELS
PVT LTD., the production department acts as a centre of the whole
organization.

OBJECTIVES

 To produce the goods within delivery time given by the buyer.

 To maintain the quality of the goods.

 To observe the production process.

 To safeguard the morale of the employees.

 To build up the relationship of the workers.

 To provide welfare facility to the workers.

PROCESS UNDERTAKEN IN PRODUCTION DEPARTMENT

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PRODUCTION PLANTS AT AAPL

Pattern/sampling section

Fabric section

Cutting section

Production section

Finishing and checking section

Packing and labeling section

I. PATTERN/SAMPLE SECTION

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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.

According to this pattern, the master of this section prepares the


pattern with necessary instruction given by the buyer about the garment
and if there is any shrinkage, a sample is sent to the buyer. This method is
called style or idea sample.

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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.

If it is accepted by the buyer it will be continued to next process or


otherwise it is further examined.

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II. FABRIC SECTION

The first step in the fabric section is as follows:


The below mentioned is a sample of the merchandise card, which
contains style , design no etc.

Merchandise card

Ex; Design No ; 9661/5434


Color ; Lt, Teal
Date ; 23-08-2008
Exporter ; ACB
Weaver/printer; Lakshmi/Gemini
Code ; D/B/W

After receiving the fabrics, it is examined whether it is printed or dyed


fabrics and it is further cut by 100.10cm and marked by100cmx100cm and
it is sent to the washing section to check if there is any shrinkage and
further it is sent to the checking section to check whether it is according
to the shades mention in the merchandise card.

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Calculation of material defects in fabrics -

In the fabric section they follow the 4point system to calculate the
defects in materials.

Formula for 4point system= No of points x 100


Actual mtrs

Points will be given on the length of the defects


0 to 3 inches = 1 points
3 to 6 inches = 2 points
6 to 9 inches = 3 points
Above 9 = 4 points

If there is any material in which more than 42% defects are found, that
particular material is rejected.

Eg: = 03x100 = 18.29 Accepted


16.40

07x100 = 42.68 Rejected


16.40

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Types of Fabric

Cotton
Likra
Waile
Condra
Jeans
Poplene

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CUTTING SECTION

In the cutting section the pattern, measurement chart, and


sample of the garment is received. The Q C checks the sample and pattern
as per the measurement chart. If there is any mistake it is informed to the
pattern section. QC checks the length and width of the fabric .

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.

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III. PRODUCTION SECTION


In this process the cutting section sends the materials with their
serial numbers. The production batch collects this and they follow the
purchase order sheet which contains the buyers requirements. Before
stitching the fabric, the order sheet is referred, in which the requirement or
the pattern is given. One part of the garment is prepared by one person
and it is sent to the next person for further production. It will be continued
up to completion of one garment under the watchful eyes of line/ floor

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head’s and once the product or the material is manufactured, then it is


sent to the trimming table for cutting extra threads and once this particular
job is finished , it is sent to the finishing section. The finishing section
examines or verifies the garment for perfection. If it is acceptable, the
product is sent further to under go the necessary process . If not, it is sent
back to the production section for any necessary alteration to the garment.

IV. FINISHING SECTION


The Finishing section receives the garments from the production
batches with details like p.o. no, style no., color, date and batch no., and
total garments received . In the finishing section the garments are processed

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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

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PACKINGSECTION

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LABELLINGSECTION

HUMAN RESOURCE DEPARTMENT

STRUCTURE OF HUMAN RESOURCE


DEPARTMENT

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HR MANAGER –Ms.PAVITHRA.D.R.
NO.EMPLOYEES –82 EMPLOYEES

OBJECTIVES

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Objectives are pre-determined goals to which individual or group


activity in an organization is directed. Objectives of human resource
dept are influenced by the organizational objectives and individual and
social goals.

 To create and utilize an able and motivated work force.

 To establish and maintain sound organizational structure.

 To attain an effective utilization of human resources in the


achievement of organizational goals.

 To identify and satisfy individual and group needs by


providing adequate and equitable wages, incentives, employee
benefits and social benefit.

 To maintain high employee morale and sound human relation.

 To provide facilities and conditions for work for maintaining


stability of employment.

CLASIFICATION OF EMPLOYEE
Permanent employee
Probationary employee
Temporary employee

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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.

HOURS OF WORK, HOLIDAYS AND OVRETIME


 Employee of Awesome Apparels have only one shift they have
to work from 9am to 5.30pm.
 The periods of hours of work for all categories of
employee/workmen shall be as per the provision of Factory’s
Act 1948 and the same will be exhibited on the notice to the
Board from time to time.
 Weekly holidays and substitute weekly holidays will be given
subject to the provision of the Factory’s Act 1948.

LEAVES STRUCTURES

Earned leaves, sick leaves, casuals leaves - 12 days


National leaves - 03 days

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Festival leaves - 06 days


And all Sundays.

LEAVE RULES

 As per Factory’s Act 1948.


 Grant of any leave to a workman shall depend upon the
exigencies of work in the factory/company and shall be at the
discretion of the manager.
 A workman who desires to obtain leave or absence shall
apply in advance to manager in writing in the prescribed
form.
 In case the workman remains’ absent for 8 working days
without applying and sanction of leave shall, automatically
loose his lien or his appointment.

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.

TRANSFER, INCREMENT AND PROMOTION POLICY


 An employee/workman shall be liable to be transferred from
one job to another in any department or section of department

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in the factory as the management may decided at its


desecration.
 Annual increment will be consider only when it falls due in
resects of the workman concerned on the basis of their date
of appointment.
 Employee promotion to a higher grade/skill is the executive
right and function of the management, while promoting an
employee, his merits and seniority will be considered as the
main criteria.
 Payment of wages shall be as per Wages Act 1936,

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

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STRUCTURE OF MARKETING DEPARTMENT

MANAGIN
G
DIRECTOR

MARKETING
MANAGER

ASSISTANT
MARKETING
MANAGER

HELPER

MARKETING MANAGER – Mr.K.RAGHAVAN

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NO. OF EMPLOYEES – 157 EMPLOYEES(including sales personnel)

OBJECTIVES

The marketing objectives are set by Awesome Apparels Pvt Ltd., to


increase the profits of the company through cost reduction, increasing
market shares, creating new customer loyalty. The following are the
objectives of the marketing department

 Setting up of marketing goals and objectives.


 Developing the marketing plans.
 Organizing the marketing function.
 Ensuring the marketing program.

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.

The company has no different marketing branches. All the products


are exported to US head office.

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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.

Marketing mix is the combination of 4 inputs, which constitute the


important aspects of a companies marketing system. They are

 Product.
 Price.
 Promotion.
 Physical distribution

PRODUCT LINE

Awesome Apparels Pvt Ltd., has a number of products offered under


its brand names. It was adopted as a registered brand name for all its
products by Awesome Apparels Pvt Ltd., to symbolize the philosophy of
the company.

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The various names of the brands are given below

women

women

THE ORIGINAL

Jeans company

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FINANCE DEPARTMENT

STRUCTURE OF FINANCE DEPARTMENT

MANAGING
DIRECTOR

FINANCE
MANAGER

ASSISTANT
FINANCE
MANAGER

HELPER

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DEPARTMENT HEAD – Mrs.VIJAYALAKSHMI.S.L


NO. OF EMPLOYEES – 220 EMPLOYEES

FINANCE DEPARTMENT

Finance is the lifeblood of any business. It should be concerned with


the activation of funds and wide application of the funds. The duties of
of finance department are to perform these functions effectively.

OBJECTIVES

 To protect the financial interest of the company.


 Monitoring the funds, collections and payment.
 Controlling the in-flow and out-flow of cash.
 Financial planning and mobilization of cash.
 To ensure that the company does not suffer from shortage
of finance
 To exercise the cost control and cost reduction techniques.
 To monitor the budget and budgetary control.

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SIGNIFICANT ACCOUNT POLICIES OF FINANCE DEPARTMENT

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.

Working capital= current assets-current liability

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.

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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.

7) ADVERTISING AND SALES PROMOTION


There is no advertising and sales promotion because the
company produces the product for only one particular buyer i.e. the BIG
APPLE COMPANY., They submit the order for the whole year.

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QUALITY CONTROL DEPARTMENT

STRUCTURE OF QUALITY CONTROL DEPARTMENT

Managing
director

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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:

 Fabric roll inspection is done.


 Embellishment and trims inspection as per AQL 0.5 (labels, size
labels, wash care labels, twill tape, threads etc).
 After cutting is done all cut parts are inspected for measurement
and fabric faults. Not a single panel (front, back, sleeves, sleeve
tape, neck tape, etc) is left from “inspection of measurement and
other faults.”All damaged/improper cut parts are replaced.

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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

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per standards and lots are passed and rejected as per the standards
defined.

In-Process Quality Control

One of the keys for producing good quality merchandise is a process of


quality control program. It is possible to control, out going quality with only a
good final audit. Without an effective in-process quality control program, cost
of excessive seconds and repairs will be high. It is far more effective to correct
the problem at the operator level, than after the garment is completely
assembled, pressed, packed and prepared for shipping.

PURPOSE OF INPROCESS QUALITY AUDITING

 The primary process of in process auditing is to identify problems early


in the production process.
 A problem caused by the operator, the machine, cutting or other factors
in process auditing helps to find specific problems in production and
concentrate on correcting them.
 Unless in process quality auditing is been adopted the cost of excessive
seconds and repairs will be high.
 It is far more effective to correct the problem at the operator level, than
after the garment is completely assembled, pressed and prepared for
shipping.

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MAINTAINANCE DEPARTMENT

STRUCTURE OF MAINTAINENCE DEPARTMENT

MANAGING
DIRECTOR

MANAGER

HELPER

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DEPARTMENT HEAD – K.CHANDRAN


NO.OF EMPLOYEES – 60 EMPLOYEES

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.

The maintenance department in its day-to-day operations consumes the


following materials;
 Diesel
 Lubricants

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 Cotton waste
 Needles
 Machinery parts etc;

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SWOT ANAYSIS

Strengths
 Strong marketing presence and distribution in selected regions in US.

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 The garments made by AWESOME APPARELS, especially women’s


garments are of world class quality.
 Good quality apparels are manufactured by the company.
 Continuous up gradation of the technology is taken up by the company.
 World class machinery is being used for all purposes.
 Product prices are competitive.

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

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 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

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 AAPL has a very strong marketing presence in selected regions in the US


market.

 The products manufactured by them are of high quality and are


renowned for there high quality.

 The capacity utilization is being monitored very rigidly by the


management.

 Great importance is given to quality maintenance.

 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

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 India’s exporters have withstood the adverse effects of international


political situation and general economic slow-down. At the same
time, the prevailing situation in the international market demands a
fresh strategy to face the challenges beyond 2010.

 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.

 The company has to take initiative for modernization and innovation


for improving competitiveness. To be globally competitive, there is
need for integrated units having economies of scales

CONCLUSION

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I felt proud of having done my project at AWESOME APPARELS


PVT LTD., Bangalore. The company produces ready-made garments. The
experience I got from my internship study was really fruitful to explore
new product line, people, strategies, work place, organizational culture,
policies and more distinctively the style of managing the company’s
profile.

I believe that the experience I had in my internship training at AAPL


will surely enrich my knowledge on industrial practicalities and my
M.B.A career with a virtual learning experience.

Regarding the management of the company, the organization structure is well


organized and functions smoothly with a panel of experienced and qualified
personnel. As far as the departments are concerned, each and every department
is inter related and inter connected and functions effectively and efficiently
abiding to the strict rules and regulations in order to fulfill the organizational
goals and objectives.

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As far as the present scenario is concerned, there has been a global


crisis, due to which the industry is in turmoil as the number of orders are less.
The company has also issued pink slips to some of the employees due to
industrial slow down.
Even though there has been a decrease in the demand for
the apparels world over due to prevailing economic scenario, the company
seems to be coping well with the situation and is still running the show by
utilizing 60 – 65% of its capacity.

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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.

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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:

A major loop-hole in Indian textile industry is its huge


fragmentation in industry structure, which is led by small scale
companies. Despite the government policies, which made this
deformation, have been gradually removed now, but their impact
will be seen for some time more. Since most of the companies are
small in size, the examples of industry leadership are very few,
which can be inspirational model for the rest of the industry.

SURANA COLLEGE PG CENTRE


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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.

Political and Government Diversity:


The reservation of production for very small companies that was imposed with an
intention to help out small scale companies across the country, led substantial
fragmentation that distorted the competitiveness of industry. However, most of the sectors
now have been de-reserved, and major entrepreneurs and corporate are putting-in huge
amount of money in establishing big facilities or in expansion of their existing plants.

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.

SURANA COLLEGE PG CENTRE


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