A ANALYTICAL STUDY OF

RAJASTHAN SPINNING AND

WEEVING MILL
Submitted to: - Submitted by:-
Dr.Sadia Samar Ali Prateek k Soni
Associate Professor, 025/JKBS/ PGDM/2010-12
Operations & Logistics Management

025/JKBS/AiCTE-10 Page 1
 DECLARATION

I Prateek Soni hereby declare that the project report entitled “Statistical
Analysis of Rajasthan Spinning And Weaving Mill” is the produce of my
sincere effort. This term Project Report is being submitted by me alone,
at JK Business School, Gurgaon, for the partial fulfillment of the
PGDM, and the report has not been submitted to any other educational
institutions for any other purpose.

Signature
(Prateek Soni)
(025/JKBS/PGDM/2010-12)
Date:-

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 GUIDE CERTIFICTE
This is to certify that the term project work entitled “Statistical
Analysis of Rajasthan Spinning And Weaving Mill” is a piece of work
done by Prateek Soni, student of JK Business School, GURGAON,
under my guidance and supervision for the partial fulfillment of the
course PGDM Trimester-1.
To the best of my knowledge and belief the thesis embodies the work
of the candidate himself and has been duly completed. Simultaneously,
the thesis fulfills the requirements of the rules and regulations related to
the term project of the institute and I am assured that the term project is
up- to the standard both in respect to the contents and language for being
referred to the examiner.

Signature:-
Date:-

025/JKBS/AiCTE-10 Page 3
 ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me

the possibilities to complete this thesis. I would like to thank Dr.
T. Dhuan, Director, JK Business School, Gurgaon and college
authorities first for providing me the opportunity to work with
one the prestigious organization.
With a deep sense of gratitude and humble submission I
would like to express my heartiest gratefulness to my Guide Dr.
Sadia Samar Ali, JK Business School, Gurgaon whose help,
stimulating suggestions and encouragement helped me in all the
times of research for and writing of this thesis.

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 CONTENT
S.NO PARTICULAR PAGE NO.
1. Introduction 6-7
2. Market Share 7
3. Data collection 8
4. Data Analysis
(a)Mean 9
(b)Standard Deviation 10-11
(c)Correlation Analysis 11
(d)Regression Analysis 12-13
(e)Probability 14-15
5. Conclusion 16
6. Bibliography 17

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 ABOUT THE COMPANY
RSWM Limited is the flagship Company of LNJ Bhilwara Group, is a
professionally managed, progressive and growth-oriented  and  one of the  largest
textile manufacturer  in the country, primarily producing  synthetic, blended,
mélange,  cotton & specialty yarn, fabric and  denim.
RSWM was established  in 1960, an IS/ISO 9001:2001 and SA 8000:2008
accredited Company,  has  8 state-of-the-art manufacturing plants which moved
from strength to strength and today, it operates about 3,60,000 spindles, having
1,00,000  MTA yarn capacity. Modern technologies and world class skills have
enabled the Company to produce the finest quality adhering to stringent
international norms.The Company recently has shifted its focus to produce more
and more natural textiles in order to meet the emerging needs of the market.
RSWM exports a complete range of yarn and fabric to over 70 countries
worldwide, giving the Company a large, visible presence across Europe, South
Africa, North America, Australia, South Korea, Belgium, Singapore, Italy, Egypt
and the Gulf countries.
The Company holds the prestigious ‘Three Star Export House’ status and has
received Export Awards from the Synthetic and Rayon Textiles Export Promotion
Council consecutively for several years. The Company is a recipient of the “Rajiv
Gandhi National Quality Award” received from the Bureau of Indian Standards for
the years 2006 and 2007.  RSWM has also received “Niryat Shree" - Certificate of
Excellence (Non-SSI) award for the category of textile and textile products.
RSWM’s one of the leading brand `Mayur Suiting’s’ enjoys high brand equity in
its target segment in the country.

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Board of Directors
 L. N. Jhunjhunwala Chairman-Emeritus
 Ravi Jhunjhunwala Chairman
 Shekhar Agarwal Vice Chairman
 Arun Churiwal Managing Director & CEO
 Kamal Gupta Director
 D. N. Davar Director
 Sushil Jhunjhunwala Director
 A. N. Choudhary Director
 John Mathew Director (Nominee Exim Bank)
 J. C. Laddha Executive Director & CFO

Group Brands:-
1. Mayur Suiting
2. Bsl Suiting
3. Geoffrey Hammonds
4. Melantra- Melange yarn
MARKET-SHARE
PARTICULARS MARKET CAP (Cr.) ROI(%)
RSWM LTD 267.6 27.2
JINDAL CORTEX LTD 241.13 15.4
BANSWARA SYNTEX 150.32 17.8
SANGAM INDIA 147.43 -8.6

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 Data Collection
Year Sales(Rs.crore )
2002-03 662.82
2003-04 771.55
2004-05 733.9
2005-06 960.0
2006-07 1042.0
2007-08 1167.8
2008-09 1292.54
2009-10 1530.76

There are two types of data:-

(1).Primary Data-Data which are collected for first time for a certain investigation.

(2).Secondary Data-Data which has been already been collected by some individual or agency
and are used for their investigation.

Methods of data collection:-There are five methods of data collection-

1. Direct Personal Interview

2. Indirect oral Investigation
3. Information from correspondent.
4. Mail questionnaire method
5. Schedules sent through enumerators

In this report we are using secondary data.

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 Data-Analysis

CENTRAL TENDENCY
 Calculations of Mean

Mean( x́ )= Sum Of Observations

Total no. of Observations
x́=¿ Mean value

Σ (x) = Summation of sales observations

n = total no of observations
x́=¿ 662.82+671.55+733.9+960.0+1042.0+1167.8+1292.54+151530.76

x́ = 8061.37 = Rs.1007.67 crores

8
x́=¿ Rs.1007.67 crores

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MEASURE OF DISPERSSION: -

We can calculate standard deviation and coefficient of variation from table 2.

Year(x) Sales(Rs.crore ) X=(x- (x- x́ )2

1007.67)
2002-03 662.82 -334.85 118921.5
2003-04 771.55 -335.82 112775.07
2004-05 733.9 -273.77 74950.01
2005-06 960.0 -47.07 2215.6
2006-07 1042.0 +34.44 1178.5
2007-08 1167.8 +160.13 25641.6
2008-09 1292.54 +285.13 81299.1
2009-10 1530.76 +523.11 273644.0
Total 8061.37 690625.5
x́ = 8061.37 = Rs.1007.67 crores
8

Standard deviation (σ)=

1 ÷ n∑(x- x́ ) 2 ½

Standard deviation (σ) = {1÷8×690625.5}1/2

= Rs 293.81(crores)

Coefficient of Standard Deviation = S. D

Mean
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 = 293.81
1007.67

Coefficient of Standard Deviation = 0.29

Correlation Analysis
Year Sales(x ) Profit(y) x=(x- x́ ) Y=(Y-Ý ) x2 y2 xy
2002-03 662.82 8.8 -345.85 -2.36 118921.5 5.57 +813.84
2003-04 771.55 18.45 -336.82 +7.29 113447.7 53.14 -2455.41
2004-05 733.9 18.41 -273.77 +7.25 74950 52.56 -1984.83
2005-06 960.0 27.08 -47.07 +15.92 2215.6 254.59 -749.35
2006-07 1042.0 44.07 +34.33 +32.91 1178.5 1083.6 +1129.8
2007-08 1167.8 0.27 +160.13 -10.29 25641.6 118.6 -1743.81
2008-09 1292.54 (63.85) +285.13 -75.01 81299.1 5626.5 -21387.6
2009-10 1530.76 36.03 +523.11 +24.86 273644 618.01 +13372.86
Total 8061.37 89.26 691298 7812.03 -13372.86

When deviations are taken from actual mean

∑ xy
r = √∑ x 2 X ∑ y 2

−13372.86
= 691298 X 7812.03

= -0.57
It has a negative medium degree of correlation

Regression analysis
2
Year Sales(x ) Profit(y) x=(x- x́ ) Y=(Y-Ý ) x y2 xy
2002-03 662.82 8.8 -345.85 -2.36 118921.5 5.57 +813.84
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2003-04 771.55 18.45 -336.82 +7.29 113447.7 53.14 -2455.41
2004-05 733.9 18.41 -273.77 +7.25 74950 52.56 -1984.83
2005-06 960.0 27.08 -47.07 +15.92 2215.6 254.59 -749.35
2006-07 1042.0 44.07 +34.33 +32.91 1178.5 1083.6 +1129.8
2007-08 1167.8 0.27 +160.13 -10.29 25641.6 118.6 -1743.81
2008-09 1292.54 (63.85) +285.13 -75.01 81299.1 5626.5 -21387.6
2009-10 1530.76 36.03 +523.11 +24.86 273644 618.01 +13372.86
Total 8061.37 89.26 691298 7812.03 -13372.86

Mean of sales (X)

Mean =∑x÷n

= 8061.37/ 8 = 1007.7

Mean of profit (Y)

Mean =∑y÷n

= 89.26/8=11.15

byx = ∑ x y/ x 2

= -13372.86/ 691298 = -0.019

bxy = ∑ x y/ y 2

= -13372.86/ 7812.03 = -1.70

Case – 1

Y- Y = byx (X- X )

Y- 11.15= -0.019 (X-1007.7)

Y = 30.29-0.019x

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Case – 2

X- X = bxy (Y- Y )

X- 1007.7 = -1.70 (Y- 11.15)

X = 1026.65-1.70y

Assume the sales are 1200 crores then what will be profit?

X= 1200 Y=?

According to case – 1

Y = 30.29-0.019x

Y = 30.29-0.019 x1200

Y= 7.49 crores

Assume the profit is 15 crores then what will be sales ?

Y = 15 X=?

According to case- 2

X = 1026.65-1.70y

X = 1026.65-1.70 x15

= 1001.15

Probability of sales & profit

P =FE/EE

 Year 2002-03

P (S) = 662.82/8061.37 P (P) = 8.8/89.26

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 = 0.082 = 0.098

 Year 2003-04

P (S) = 771.85/8061.37 P (P) = 18.45/89.26

= 0.095 = 0.206

 Year 2004-05

P(S) =733.9/8061.37 P (P) = 18.41/89.26

= 0.091 = 0.205

 Year 2005-06

P (S) = 960/8061.37 P (P) = 27.08/89.26

= 0.119 = 0.303

 Year 2006-07

P (S) = 1042/8061.37 P (P) = 44.07/89.26

= 0.129 = 0.49

 Year 2007-08

P (S) = 1167.8/8061.37 P (P) = 0.27/89.26

= 0.144 = 0.0003

 Year 2008-09

P (S) = 1292.54/8061.37 P (P) = (63.85)/89.26

=0.160 = NIL

 Year 2009-10

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P (S) = 1530.76/8061.37 P (P) = 36.03/89.26

= 0.189 = 0.40

According to regression calculation probability of 2011

P (S) = 1200/9261.37 P (P) = 7.49/ 96.76

= 0.129 = 0.077

CONCLUSION
1. The mean value of sales of 8 yrs comes out to be Rs.1007.67
crores which means by observation we can say that sales of the

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 year 2006-07 is close to the mean value i.e the sales of the year
2006-07 represents the mean sales of 8 years of the company.
2. The value of Standard deviation comes out to be 293.81,and
coefficient of standard deviation is 0.29 i.e, it has low degree of
variability
3. The value of Correlation comes out in negative it means negative
low degree correlation between sales & profit.
4. The value of Regression is 7.49 crores if company sales is
1200crore and second regression value is 1001.15 if company want
a profit is 15 crores.
5. The value of Probability of sale comes out 0.129 it means sales probability
12.9 % in 2011 & profit probability is 7.7 % in 2011.

Quantitative techniques such as mean, standard deviation,

coefficient variations, correlation and Probability have been applied in
order to interpret company’s mean sales value, their dispersion from
mean values & the degree of association between sales of the company
& profit.

BIBLIOGRAPHY
 Annual report of RSWM from 2005-10
 rswm.com
 Google .com
 Moneycontrol.com

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