CHAPTER – 02

HISTORY OF THE FIRM

SHAHI Exports Pvt. Ltd. is engaged in the manufacture and export of readymade garments in the
International market. It is one of the largest export houses in India. The company started its
operations in the form of a small fabrication unit with the help of 25 machines.

The company has grown from leaps to bounds from a simple fabrication unit to present turnover of
Rs. 2200 crore, around 55000 employees and spread over 27 locations. It has manufacturing units in
six different states of India viz. Delhi, Haryana, Uttar Pradesh, Tamil Nadu, Karnataka and Andhra
Pradesh. The group is into manufacturing of a wide range of Men’s and Ladies wear and also home
products.

SHAHI group has all the modern units equipped with state-of-the-art technology giving the best to its
buyers.
 Its manufacturing facilities includes Assembly line machines, Prima Vision system print/fabric
development, Meyer fusing press, Barudan and Tajima, Multi head computerized embroidery
machine, in house washing plant, automatic cutting machines (F.K. Systems).

SHAHI has a well-equipped sampling division where latest patterns/designs/styles of high standards
are developed with the assistance of experienced designers.

It has a training center for tailors at Faridabad and Bangalore each to train and develop them into
vital human resource for efficient operations.

As regards to quality, SHAHI has been ranked one of the best in Asia by J.C.Penny, the world-
renowned departmental stores.

ABOUT THE COMPANY BRANCH

Name of the Company : SHAHI EXPORT PVT. LTD. (UNIT-7A)

Year of Establishment
No. of Units
Managing Director
Type of Organization
AnnualTurnover(All units)
Total Workforce (Unit-1)
Total Batch/Lines (Unit-1)
Capacity (Unit-1)
Address (Unit-1)
: Jan, 2006, Shahi (woven) Unit-7A
1974 (Faridabad), 1988 (Bangalore)
: Delhi & NCR -14, Bangalore- 25 (19Woven’s+6 Knits)
: Mr. Harish Ahuja
: Pvt. Ltd. Export Oriented
:Rs15 Crore
: 1K
: 26
: 1.5 lakh Pcs /Month (Approx.)
: 7,Hosar Road, Bangalore. 560030

Other locations of Shahi include:

 Faridabad.  Hyderabad.
 Delhi-NCR.  Salem.
 Bangalore.  Tripura.
 Mysore.  Baglur.
1  Tumkur.
  Shimoga.
 Madura

GENERAL

Established in Delhi in 1974, Shahi Exports stand vertically integrated as one of the largest
manufacturers and Exporter in India, offering ready to wear garments for Ladies, Men and Children.
Bangalore operations began on 1st July 1988 with 250 associates and 104 machines. In the last 30
years it has expanded by 60 times, with 33 integrated State of Art production units. Factories are
equipped with State-of-the-art manufacturing technology automated machines, thereby ensuring
consistency and optimum efficiency. Shahi has invested resources in creating its own fabric base for
both woven and knits. Shahi has its own fabric dyeing and printing mill and knitting facility. Shahi also
offer widest choice of fabrics for garments mainly shirts with continuous fabric Developments and
Innovations through its own Design Studio.

Shahi, Faridabad is the Corporate Head Office and all the marketing merchandising functions are done
there. At Bangalore, there are 19 garments Units handling woven garments and 6 Units in Knitted. All
the activities of Woven Division at Bangalore are coordinated from the main office from Unit-7 at
Belandur Gate, Sarjapur Main road, Bangalore. 560035, and the activities of Knits division is
monitored from Knits Head, Unit No. 12 # 37/1B, Arekere, Bannerghatta Road, - 560 076. INDIA
Marketing office located in NEW YORK ,USA will procure the indirect orders and sent it to the Delhi
office for execution, planning will be done for execution of the orders and the head office at Delhi will
allocate and distribute the orders to new Delhi or Bangalore production plants.

Unit 7 is the Bangalore head office, where the orders are received. From Bangalore head office orders
are distributed to various production units according to their production capacity.

Centralized department rendering service to all the units in Bangalore

Production
 Accessories store
 Washing department
 Embroidery department
 Cutting department
 Laboratory
 Fabric inspection department
Service
 Sourcing department
 Accounts department
 Documentation department
 Personnel department

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 Shahi has expanded by 200 times over the last 40 years. It has total 49 units out of which 39 are in
Bangalore. Current production capacity is 100million apparel per year. It is No 1 garment exporter
in India. At present it has 85000 associates among which 70% are women. Unit 1 of Shahi in
Bangalore was started in 2005 with 190 employees, which has now increased to 3700.

The organization works on a single ERP system, MOVEX, which unifies all the departments working
and leads to efficient functioning. This allows handling the manufacturing, logistics and distribution,
shipping, invoicing, and accounting for the company.

There are different Strategic Business Units in Shahi Exports as follows:

 LSD - Ladies Specialty Division
 LFD - Ladies Fashion Division
 LDD - Ladies Dress Division
 MNB - Men’s and Boys’ Division

PRODUCTS:

Unit 7 focuses on the following products:

1. Denim Jeans
2. Jogging
3. Track pants
4. Trousers
5. Pajamas

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Other units product are:
1. Tops casual wear
2. Dress shirts
3. Denim wear
4. Wrinkle free shirts and blouses
5. Bottoms casual wear
6. Ladies /Men’s shirt
7. Polo
8. Hoody
9. Crew neck
10. Cargo shorts
11. Night wear
12. Fleece jack

SHAHI’S CLIENT AT USA AND EUROPE:

 Gap.  Sears.
 Decathlon.  Esprit.
 Wal-Mart.  Tommy Hilfiger.
 J C Penney.
 Mexx.
 Benton.
 Abercrombie & Fitch.
 American eagle.
 H & M.
 Target.
 Liz Claiborne.
 Philips Van Heusen.
 Polo Ralph Lauren.

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MISSION OF SHAHI EXPORTS
 Be the most preferred competitive global supplier of apparel.
 Be the most preferred employer in the industry.
 Be a learning organization to improve and excel.

QUALITY POLICY OF SHAHI EXPORTS

We are an organization of noble culture with competent human resources, multi products
expertise and continual process improvement, committed to delight customers by consistently
delivering high products on time.

QUALITY OBJECTIVES OF SHAHI EXPORTS

 Delivering quality products on time
 Increasing productivity
 Continual improvement
 Employee development

VALUES OF SHAHI EXPORTS

 Customer delight
 Integrity and ethics
 Respect for human values
 Nurturing human talent
 Continues improvement1

ORGANIZATION STRUCTURE
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 Factory Manager

Factory Manager
VP Operation General Manager
(MND) Operation
Factory Manager

CEO Factory Manager

Manager HR

Deputy Manager
HR
General Manager
AGM HR Exe.Accounts
HR
Envernoment
Officer

Safety Officer

Administrational hierarchy

Factory
Manager

Senior Quality Quality Executive

Manager Manager Manager

Planning Executive SR Executive

Manager Manager Store
GM
Operation
Exe.IED
IED Manager
Manager

Cutting
Exe.Cuttin
Manager

Fabric
Exe.Fabric
Manager

Officials under GM Operation

1.3.1 ORGANIZATION DESIGN

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An Organization structure is the outline of the company’s framework and guidelines for
managing business operations. Two types of organization structure are found in the business
environment: centralization and decentralization.
Centralization Organization structures rely on one individual to make decision and provide
direction for the company.
Decentralization organization structure often have several individuals responsible for making
business decisions and running the business. Decentralization organization rely on a team
environment at different levels of business. Individuals at each level in the business may have
some autonomy to make business decisions.
In Shahi certain departments work in centralized manner (Business intelligence, Accounts,
HR) while some other works in decentralized manner. Activities like salary, loan, advance are
handled by the head officer (unit 7-wovens division and unit 12-knit division), taking support
from the factory levels (HR and accounts). Also Marketing is centralized which is in unit 7
and unit 12. They deal with the buyers, get orders, allocate the trims and fabric for various
units. If there is any shortage of trims or fabric in any unit, the stores department of that unit
will directly contact to unit 7 who in turn coordinate with the buyer. Decision regarding the
order distribution is taken by central planning, which distributes the order depending on the
production capacity of various units.
ORGANIZATION STURUCTURE FACTOR
The organization structure of SHAHI is of function structure type. In such type each portion
of the organization is grouped according to its purpose. For example, marketing department
works with associates who are specialized in marketing. This leads to operational efficiencies
within that group. As shown in the structure chart mainly there are two divisions one is
operations and other is human resource management. Under operations all the Fare included.
All the activities related to human resource like recruitment, welfare benefits, safety,
grievance handling etc. comes under human resource management. This department is the
supporting department as they are not involved in actual production but play a very important
role in the smooth functioning of organization.
In garment factory the output of one department becomes the input for other department, so a
high level of coordination is required to produce better efficiency.
1.3.3 ADVANTAGES OF FUNCTIONAL STRUCTURE

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  An advantage of a functional organization structure is that it offers a high level of
specialization. Each unit operates as a type of self-contained mini-company, charged
with carrying out its specific role.
 Employees typically start their careers in an entry-level position within the function and
develop a specialized knowledge as they move up within the hierarchy. They become
experts within their functional area, and the unit and company benefits from their
expertise and experience over time.

1.3.4 DRAWBACKS OF FUNCTIONAL STRUCTURE

 Functional areas may become distracted by their own goals and focus on them, rather
than on overall company objectives. For instance, there may be a desire by I.T.
department to implement a new, state of the art computer system, but the overall
company objectives support investment in new products instead. Since the unit doesn’t
have an overview of the entire company, it may focus attention on goals that it believes
are important but which are not priorities for top management
 Functional areas may have difficulties working with other functional areas. There is
often a perception that they are competing with other functional area for resources and
a lack of understanding of what other areas do for the company.

1.3.5 HOW TO OVERCOME

 Create a common understanding of the organization priorities and objectives.
 Set clear expectation from individual and group contribution.
 Build capability through feedback and learning.
 Ensure employment commitment based on meaningful work and rewards.
 In garment factory the output of one department is the input of other. No department
can work individually. Every department is related to each other. A clear understanding
should be made about how the goal of a particular department is going to affect the
efficiency of other department and the organization goal.

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