.

“AN OVERALL STUDY ON S.G TEX COMPANY”

INTERNSHIP TRAINING REPORT
Submitted by
PUNITHA.G
Register No: 20MMB031
of
KIT -KALAIGNARKARUNANIDHI INSTITUTE OF TECHNOLOGY
In partial fulfilment of the requirements
For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

of
ANNA UNIVERSITY, CHENNAI

Under the supervision and guidance of

Dr. T. THIRUNAVUKKARASU
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES

KIT -KALAIGNARKARUNANIDHI INSTITUTE OF TECHNOLOGY

(An Autonomous Institution)

Accredited with ‘A’ Grade by NAAC & NBA

COIMBATORE-641402

SEPTEMBER -2021
 KIT -KALAIGNARKARUNANIDHI INSTITUTE OF TECHNOLOGY

. (An Autonomous Institution)

Accredited with ‘A’ Grade by NAAC & NBA

COIMBATORE – 641402

DEPARTMENT OF MANAGEMENT STUDIES

M19MBP301 – INTERNSHIP TRAINING
This is to certify that the project work entitled

“AN OVERALL STUDY ON S.G TEX COMPANY”

Is the bonafide record of project work done by

PUNITHA.G

Register No: 20MMB031

of

MASTER OF BUSINESS ADMINISTRATION

During the year

2021-2022

_____________ ________________

Guide Head of the Department

Submitted for the Project Viva – Voce examination held on

_______________
Examiner
 DECLARATION

I affirm that the project work titled “AN OVERALL STUDY ON S.G TEX
COMPANY” is the original work of Mrs. PUNITHA.G (Reg. No.20MMB031) being
submitted in partial fulfilment for the award of MASTER OF BUSIESS
ADMINISTRATION. Certified further, that to the best of my knowledge the work
reported herein does not form part of any other project / internship report or dissertation
work submitted for award of any degree or diploma, either in this or any other university
on earlier occasion by me or any other candidates.
.

PUNITHA.G
(Reg. No.20MMB031)

I certify that the declaration made above by the candidate is true, to my knowledge.

____________________
Signature of the Guide
 ACKNOWLEDGEMENT

The success of any project is the co-operative effort of the people around an
individual. For all efforts, project, I am highly intended to the following personalities
without whom this project would ever be completed.

I wish to express my sincere thanks and deep sense of gratitude to the,

Dr.N.MOHANDAS GANDHI, Principal Dr.M.RAMESH, Vice Principal and
Dr.RAMASAMY, Dean Research KIT -Kalaignarkarunanidhi Institute of Technology,
Coimbatore for providing the necessary facilities to carry out this project work
successfully.
I would like to extend my gratitude and sincere thanks to
Mr.S.SIVAGNANABHARATHI, Head, Department of Management Studies who has
been very supportive and encouraging for my project work.

At the Outset, I deem it a pleasure in expressing my deep sense of gratitude and sincere
thanks to my guide Dr.T. THIRUNAVUKKARASU, Assistant professor, Department
of Management Studies who has extended a remarkable support and precious guidance in
helping me for completing the project and shared lot of his knowledge.

I am greatly indebted to thank the faculty members, department of management

studies, who have extended a remarkable support to complete my report.

I extend my gratitude for the encouragement that I received from my family for
the unconditional love in supporting my quest for knowledge.

I express my deepest and sincere thanks to the organization management and

organization guide for allowing me to do this project in their reputed concern, who has
extended a valuable guidance and cooperation in spite of his / her work schedule for
helping me in completing the project.

Chapter no TABLE OF TITLE

CONTENT Page no

I 1. INTRODUCTION OF THE STUDY 01

1.1. Introduction 01
1.2. Objectives 02
1.3. About the company 03
1.4. Company Profile 04
1.5. Company Vision and Mission 05
1.6. Organization Structure 06
II 2. INDUSTRY PROFILE 07

III 3. FUNCTIONAL DEPARTMENTS 08

3.1. Purchase Department 09
3.2. Production Department 10
3.3. Production Process 11
3.3.1. Blow Room 12
3.3.2. Carding 13
3.3.3. Combing 13
3.3.4. Drawing 14
3.3.5. Roving 15
3.3.6. Spinning 15
3.3.7. Winding 16
3.3.8. Finishing 16
3.4. Human Resource Department 17
3.5. Finance Department 18
3.6. Marketing Department 19
3.7. Quality Control Department 20
IV 4. PRODUCTS 21

V 5. SWOT ANALYSIS
5.1. Strengths 22
5.2. Weaknesses 22
5.3. Opportunities 23
5.4. Threats 23
VI 6.CONCLUSION 24
CHAPTER – I

1.INTRODUCTION OF THE STUDY

1.1. INTRODUCTION

For the partial fulfilment of the Master of Business Administration from

kalaignarkarunanidhi institute of technology, an internship has conducted during a month.

This study helped me to gain knowledge about the textile industry, especially the process
involved in yarn production. The general objective of this program was to gain practical
knowledge on the over all functioning of the various department involved in S.G Tex
company.

This study helped me to gain more information about the present conditions prevailing in
the textile sector and the constraints which are faced by the mills at present in Tirupur.
 1
1.2. OBJECTIVES

The underlying objectives were set for conducting this company study

 To study about overall management of the company.

 To analysis various functions performed by the various department in this

company.

 To secure practical knowledge regarding the all departments aspects involved in

the company.

 To study the activities of the departments in the company.

 To familiarize with business organization to relate theory with practice.

 To understand how key processes are carried out in the company.

 To study the work condition of the employee.

 To evaluate the labor problem.

 2
1.3. COMPANY VISION & MISSION

3.1. VISION:

 To ensure a strong presence in the global textile.

 Market by focusing on quality and exceeding.
 Customer and stakeholder expectation.

3.2. MISSION:

 Offer innovative, customized and value added services to customer.

 Become a process driven company.
 Be an ethical, transparent and responsible global organization.
 3

1.4. ABOUT THE COMPANY

S.G TEX company is a yarn manufacturing concern located in Tirupur. The

company has started in 1986. The most part of the sales is generated from exports.
Customer satisfaction from the point of order placement to after sales service is given
priority over other aspects as it is the main component of the policy.

Proper investment in the Human Resource Development is also the key function
of the business plan of the company. Attention is also placed on the concerns related to
the environment of the workplace and surroundings. For this purpose, the company is
inspected on a regular basis ensure that relevant environmental regulations are properly
followed.

At early years S.G textile had to pass very difficult time. It still exists only for its
honesty, integrity, moral scruples and for its business ethics. And for that reason, now
this company is in successful.

The company started operations with an installed capacity of 26 spindles which

has over the years increased to 60 spindles. The company has a sound track recorded of
productivity and profitability, and has been producing high quality yarn for the domestic
market. The company has also been regular in modernising its unit and at present almost
all the machines at its existing units are fully modernised. The company is in the process
of developing new products in the near future.
 4

1.5. COMPANY PROFILE

Company name : S.G Tex

Address :311, Pallakattu Thottam,

15 velampalayam road,

Anupparpalayam pudur,

Tirupur – 52.

Managing director : Mr. Bagavathi rajan

Sector : Manufacturing

Unit type : Spinning

Year established : 1986

Employees : Above 550

Number of working days :300

Number of shifts per day : 03

E mail : srigautamtex@gmail.com

Mobile : 9080534046
 5

1.6. ORGANIZATION STRUCTURE

Chairman

Finance manager HR manager Marketing manager Production manager Quality manager

Accountant Assistant manager Assistant manager Mill manager Supervisor

Cashier Time keeper Dealer Spinning master QAD Incharge

Agents Assistant spinning Investigation

master

Supervisor

Jobber

Worker
 6

CHAPTER – II

2. INDUSTRY PROFILE

S.G TEX Spinning mills private Limited is a private incorporated on 09 February

1986. It is classified as Non-govt company and is registered at Registrar Companies,
Tirupur. All India Federation of cooperative Spinning Mill Ltd Bombay set up this mill.
The total estimated cost requirement for the mill was 1100 lakhs and functions as per the
South Indian Textile Research Association.

In this industry the functional norms and rules are stated or expressed by the South
Indian department Research Association, Coimbatore being followed in the mill. The
norms for staffs and non- productive operatives employed in different department are
available. It is vertically integrated textile unit. It has own spinning, knitting, processing
and stitching units.

S.G TEX is a multi-unit, multi-interest business group with a wide range of

industrial activity, an organization that as a founded its evolution on value-based
commercial practise. S.G TEX Limited was established in 1986 with an initial capacity of
12000 spindles. Over its four decades of chequered growth it has expanded to 1,46,606
spindles spread over 3 operational units. The company commenced operations with the
manufacture of grey, gasses, mercerised and dyed cotton yarn.
 7

CHAPTER -III

3. FUNCTIONAL DEPARTMENTS

3.1. Purchase department

3.2. Production department

3.3. Production Process

3.3.1. Blow Room

3.3.2. Carding

3.3.3. Combing

3.3.4. Drawing

3.3.5. Roving

3.3.5. Spinning

3.3.6. Winding

3.3.7. Finishing

3.4. Human Resource department

3.5. Finance department

3.6. Marketing department

3.7. Quality control department

3.1. PURCHASE DEPARTMENT

The purchase department is concerned with acquiring goods and services for use
by company. These includes raw material and components for manufacturing and also
production equipment.

The responsibilities of this department usually extended to buying goods and services for
the entire company (not just the production department) including office equipment,
furniture, computer equipment and stationary etc..

FUNCTIONS OF PURCHASE DEPARTMENT:

 Receiving indents

 Assessment of demand or description of need.

 Selection of sources of supply.

 Receiving of quotation.

 Verification of invoice.

 Inspection of incoming materials.

 Maintaining purchasing records and files

 Reporting to top management

  Achieving the best possible price

3.2. PRODUCTION DEPARTMENT

The production department is responsible for converting raw materials and other
inputs into finished goods or services. This department will set standards and targets for
each section of the production process. The quantity and quality of products coming off a
production line will be closely monitored.

The production department is also responsible for the designing of the goods or
products of the business which are sold to other businesses or to the general public. The
department also makes sure that the machines and equipment’s used in production are
serviced and properly maintained all the time. Coordinating product specifications and
product attributes, production capacity, inventory, and logistics of raw materials.

In S.G TEX, yarn produced from the cotton which is extracted from seeds of
cotton plants which are purchased from various parts of our nation. Mainly the
production manager controls functions of this department.

FUNCTIONS OF PRODUCTION DEPARTMENT:

 Fixation of standard upon which yarn must be produced which is usually

represented as hank.

 Operation of purchase and storage of materials.

 Planning and controlling the operations.

  Repairs and maintenance of machinery.

 Inventory and quality control.

 Deciding the best production methods.

10

3.3PRODUCTION PROCESS:

Production process of yarn is carried out by using various types of machines and each
process is carried out and considered as separate sections. They are:-

Blow room

Carding

Drawing

Spinning

Roving

Winding

Finishing
 11

3.3.1. BLOW ROOM OPERATIONS:

The main purpose of the blow room is to clean and purify the cotton. This is the
first step in processing the cotton. Here raw cotton is the input, while the Lap is the
output of this room.

 Bale Breakers are installed here.

 The Bale Breaker have the beaters in them.

  These beaters move the cotton into different ways and open it by splitting the

cotton with the help of spikes installed on the edges.

 They break the cotton in a loose form.

 Then this cotton is passed through a lighted path so that all the impurities like

stones could be detected and removed.

17

12

3.3.2. CARDING:

The Lap, which is the output of Blow Room is the input of this Carding Room. Here the
output is card sliver. Here laps are opened, cleaned, drafted and short fibre is extracted.
  The production manager checks the cotton and it comes in the drums type
containers.
 The “lap” is rotated on the lap Rod.
 These Lap Rods are placed into the machines that perform different function on
these.
 After this, the Lap is converted into sliver.

3.3.3. COMBING:

As yarn is arranged in parallel manner, it is straightened again instage of combining.

On the other hand, the left short fiber will be subtracted completely from longer staple fiber.
This will result in stronger and smoother staple fabric having higher demand in market.

13

3.3.4. DRAWING:

The fibers in the carded sliver are placed in a haphazard fashion and lack
uniformity. The carded slivers are processed on the drawing frame they are made uniform
in thickness by the doubling process. The fibers get drawn parallel to the axis of the sliver
by the drafting process.

The main function of this room includes

 Doubling : Doubling the length of cotton fiber.

 Drafting : The length of fiber is increased 50%
 Parallelization : Fiber of sliver ropes is made parallel to each
other
 Straightening : Fiber are made straight here.
 14

3.3.5. ROVING:
The purpose of the roving operation is to reduce the sliver to a suitable size for
spinning. The slivers are passed through sets of rollers with increasing speed. This helps
to further minimize the linear fiber density, preparing it for the process of spinning.
During roving, a small amount twist is also added which helps in the drawing of the
roving down to the required linear density. The roving is then rolled upon roving bobbin.
3.3.6. SPINNING:

After roving, the roving bobbin are fed into ring frame where the roved wool is
further drawn out into yarn. During this process small amount of twist is added which
strengthen the yarn and also helps in the drawing process. They yarn is then winded onto
ring bobbin for further winding.

15

3.3.7 . WINDING:

The ring spinning bobbins have a small package size due to the machine
limitations. For the further processes, large package is required for better production
rates. If the small ring spun bobbins are used in the further processes, they would have to
be replaced frequently which would reduce the efficiency of the machine.
.
 For this purpose, the Auto coner is used to make bigger packages from the ring 21
spun bobbins. Along the process yarn defects like slub, thick and thin places are rectified
by cutting and splicing at that point. In the present day, most of the factories have
automatic cutting and splicing attachments on the autoconer

3.3.8. FINISHING:

Further operations on the yarn, such as bleaching, dyeing, and packaging will depend on
the intended usage of the yarn.

16

3.4. HUMAN RESOURCE DEPARTMENT

Human resource management could be the key activity for any company. No
matter machinery and structure are also important, but at the end there are people who are
going to run and work with those machineries. Employees can lead a company to success
or failure. It all depends on they are managed and efficiently and properly they are used.
Coordinating workforce planning, recruiting new staff, and training and developing
existing marketing staff.

The HR department of S.G TEXTILE is very dynamic. Employees are the biggest
strength of any company and the HR department realizes this very well. This is very
evident from the way the HR department handles all its employees. They take utmost
care to select, train, motivate and retain all the employees. They have continuous
developmental programs for all the employees.

HR STRATEGIES:

 Retaining competent and innovative brains.

 Encouraging employees for risk taking.
 Integrating performance analysis and developing them towards ultimate goals of
the mill.
 Employing the work force with creative skills in developing technology and
methods of minimizing cost.

17

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT:

 Recruiting in S.G TEXTILE for management hiring three interviews are conducted
if they are experienced. If they fresh graduate then first written test is done after this
initial interview, and then final interview is conducted. This process is done for
management trainees.

 On the job training is mostly provided. But sometimes for management we

conduct seminars.
 Orientation
 Performance appraisal
 Compensation
 Salary
 Providing other facilities
 Attendance and leaves

18

3.5. FINANCE DEPARTMENT

 Finance department is headed by finance manager and assisted by senior officer,
cashier and assistant manager. Finance department is fully computerized and all
payments are made through computer computation. All the purchasing / quotation works
are handled online.

All the transactions are controlled by finance department. There are so many
subsections in finance department like establishment section, book section, cash and bank
section, price strong ledger section.Coordinating sales targets to prepare budget and
cashflow forecasts.

THE IMPORTANT DUTIES OF THE FINANCE DEPARTMENT:

 Preparing of balance sheet, trading and profit and loss accounts

 Verification of vouchers, bills.

 Giving salary and wages.

 Preparation of various books and accounts.

 Verification of cash balance.

 Developing strategies that work to minimize financial risk.

 Maintaining appropriate income tax.

19
3.6. MARKETING DEPARTMENT

Marketing department is concerned with identifying and satisfying customers

needs at the right price. Marketing involves researching customer want and analyzing the
company can satisfy these wants.

Marketing department helps to promote the product and increase the sales of the product.

RESPONSIBILITIES OF MARKETING DEPARTMENT:

 Advertisements

 The senior member of the marketing department takes responsibility for setting

marketing strategy and objectives

 Plan campaigns and develop communications material to promote products and

services to customers and prospects

 Product designing

 Packaging and labelling

 Pricing of product

 Customer support service

 Organizing special events

20
3.7. QUALITY CONTROL DEPARTMENT

The quality control department is monitoring and ensuring that each stage of
production is followed by all the necessary procedures for safe use of machinery and that
each product coming out of production process, compiles with all standards and
specifications that have been so to ensure a smooth and trouble-free operations.

THE RESPONSIBILITIES OF QUALITY CONTROL DEPARTMENT:

 Maintenance of all production machinery and installation vehicles.

 Understand buyer’s quality specification

 Ensure the required quality is achieved and maintained

 Inspection of raw material: checking of raw material to ensure there is no

defective or abnormal goods.

 Visual inspection and measurement checking are done prior to sending sample to

respective buyers.

 Finally, quality personnel checks finished and packed goods and do auditing prior

to handover shipment to external inspector.

 21

CHAPTER – IV

4.PRODUCTS

 Ring yarn (Ne)

 Compact Yarn
 Compact Eli twist Yarn
 TFO Doubled Yarn
 6s to 12s and TFO yarns
 Organic cotton yarn
 BCI Cotton Yarn
 22

CHAPTER – V

5. SWOT ANALYSIS

5.1. STRENGTH

 Availability of skilled manpower at a low cost provides an advantage for the

company to reduce its expenditure.

 Sufficient and abundant raw material helps the company maintain its production

flow and hence maintain market supply and consumer satisfaction.

 Investment in cutting edge technological machinery ensures that the products

supplied to customers meet the desired international standards.

 The company’s profits and financial investment provides a stable cash flow for

expansion and diversification in other related fields.

 The activity of the Rupee against the dollar, has positively affected the Indian

cotton industry, opening up space for companies to competitively take in the

global market.

5.2. WEAKNESS

 Investment in advanced technological means of production requires some highly

trained personnel which come at a cost for the company due to the scarcity of

trained machine operators and maintainers.

 Changing global prices on cotton products might affect production costs resulting

to extra costs for the company.

 23

5.3. OPPORTUNITIES

 Domestic retailing is yet to be exploited yet there is a big potential for growth in
the sector.
 The growing global need for yarn has led to product diversification and
development.
 The availability of good quality in India could make the country gain a significant
global market expanding the market for yarn producers to sell their products to
other customer.
 The favorable government laws on Foreign Direct Investment are favorable for
growth of the company.

5.4. THREATS

 Unfavorable labor laws have also proved a challenge but the company has been a
big contributor on community Social Responsibility by building a medical clinic
that provides free healthcare for the workers and their immediate family members.

 High interest rates have made it difficult to access bank loans for expansion.

 High cost of power and other indirect tax tariffs for raw materials has also
increased the cost of production for the company.
 24

10. CONCLUSION

In this internship an attempt was made to study about the company, the various
departments in the organization and to secure practical knowledge regarding HR
functions, financial activities, production process, the marketing process, involved in the
S.G TEXTILE company. While doing the study, it came to know the fact that the textile
& clothing company is the single most export earner around 20% of gross exports earning
for India.

This internship has been very useful experience for me. I can safely say that my
understanding of the job environment has increased greatly. The two main things that I
have learned after my experience in this company are the importance of time
management and being self-motivated.
25