Executive SummaryGaining Economic Significance:-The Textile Industry is at the cusp of regaining its earlier significance in the Indian Economy.Currently, the sector accounts for around 14% of the total industrial production and around4% of the countrys overall GDP. The sector contributes valuable foreign exchange for thecountry as it accounts for nearly 20% of the countrys total exports.Domestic Industry -Restructuring a growth strategy: The Textile Industry underwent a lean phase during the latenineties. This was primarily on account of excess capacity, higher interest costs on account ofdebt burden, Government policie Favoring small-scale industries, labour laws and slowdown in the global economy among others. Declining interest rates, growing domestic economy, favourable Government policies, revival in global economy and growing potential post-quota regime augured well for the revival in the textile industry. The changing dynamics of the Indian Economy with the emergence of the upper middle class segment, higher disposable income and increasing consumerism is providing some demand side relief for the Textile Industry. Further, with mushrooming of organized retailing, demand for apparels and textiles would get a fillip. India,. India to grab share in Home Textiles, followed by Apparels: India is likely to make the most of its strength in cotton and low cost skilled labour in increasing its of pie global textile trade. Indias current exports at US$15 bn, accounts for only 4% of the total world exports, which is expected to grow to US$40 bn capturing a market share of close to 7-8% by 2010. India is well poised to strengthen its foothold in the global home textiles segment post dismantling of quotas, which would be followed by higher share in apparels segment. Backlash from Developed Countries against China to benefit India: Increasing dominance of China in global textile trade post quota dismantling is expected to attract backlash from developed markets like US & EU in order to protect domestic industries. Thus, protectionist measures against China, is likely to act as a boon for India. India would be second best choice for the global buyers given its established position in the global textile
INDUSTRY PROFILETextile industry largely depends upon the textile manufacturing and export. It also plays amajor role in the economy of the country. India earns about 27% of its total foreign exchangethrough textile exports. Further, the textile industry of India also contributes nearly 14% ofthe total industrial production of the country. It also contributes around 3% to the GDP of thecountry. India textile industry is also the largest in the country in terms of employmentgeneration. It not only generates jobs in its own industry, but also opens up scopes for theother ancillary sectors. India textile industry currently generates employment to more than 35million people. It is also estimated that, the industry will generate 12 million new jobs by theyear 2010.Various CategoriesIndian textile industry can be divided into several segments, some of which can be listedas below: • Cotton Textiles • Silk Textile • Woolen Textiles • Readymade Garments • Hand-crafted Textiles • Jute and CoirThe IndustryIndia textile industry is one of the leading in the world. Currently it is estimated to be around
US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. Thecurrent domestic market of textile in India is expected to be increased to US$ 60 billion by2012 from the current US$ 34.6 billion. The textile export of the country was around US$19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share ofexports is also expected to increase from 4% to 7% within 2012. Following are area,production and productivity of cotton in India during the last six decade.TEXTILE INDUSTRYTextile industry in india is the second Largest employment generator after agriculture. Itholds significant status in India as it provides one of the most fundamental necessities of thepeople. Textile industry was one of the earliest industries to come into existence in India andit accounts for more than 30% of the total exports. In fact Indian textile industry is the secondlargest in the world, second only to China.Textile Industry is unique in the terms that it is an independent industry, from the basicrequirement of raw materials to the final products, with huge value-addition at every stage ofprocessing. Textile industry in India has vast potential for creation of employmentopportunities in the agricultural, industrial, organised and decentralised sectors & rural andurban areas, particularly for women and the disadvantaged. Indian textile industry isconstituted of the following segments: Readymade Garments, Cotton Textiles includingHandlooms, Man-made Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir, and Jute.Till the year 1985, development of textile sector in India took place in terms of generalpolicies. In 1985, for the first time the importance of textile sector was recognized and aseparate policy statement was market. The policy also aimed at achieving the target ofannounced with regard to development of textile sector. In the year 2000, National TextilePolicy was announced. Its main objective was: to provide cloth of acceptable quality atreasonable prices for the vast majority of the population of the country, to increasinglycontribute to the provision of sustainable employment and the economic growth of the nation;and to compete with confidence for an increasing share of the global textile and apparelexports of US $ 50 billion by 2010 of which the share of garment will be
The textile and apparel industry is one of the leading segments of the Indian economy and thelargest source of foreign exchange earnings for India.This industry accounts for 4 percent of the Gross domestic product (GDP), 20 percent ofindustrial output, and slightly more than 30 percent of export earnings. The textile andapparel industry employs about 38 million people, making it the largest source of industrialemployment in India. The study identifies the following structural characteristics of India’stextile and apparel industry:India has the second-largest yarn-spinning capacity in the world (after China), accounting forroughly 20 percent of the world’s spindle capacity. India’s spinning segment is fairlymodernized; approximately 35 to 40 percent of India’s spindles are less than 10years old.During 1989-98, India was the lead-in buyer of spinning machinery, accounting for 28percent of world shipments. India’s production of spun yarn is accounted for almostentirely by the “organized mill sector,” which includes 285 large vertically-integrated“composite mills” and nearly 2,500 spinning mills. India has the largest number of looms inplace toweave fabrics, accounting for 64 percent of the worlds installed looms. However, 98percent of the looms are accounted for by India’s power loom and handloom sectors, whichuse mostly outdated equipment and produce mostly low-value unfinished fabrics. Compositemills account for 2 percent of India’s installed looms and 4 percent of India’s fabric output.The hand loom and power loom sectors were established with government support, mainlyto provide rural employment. These sectors benefit from various tax exemptions and otherfavorable government policies, which ensure that fabrics produced in these sectors, are pricecompetitive against those of composite mills. The fabric processing (dyeing and finishing)sector, the weakest link in India’s textile supply chain, consists of a large number of smallunits located in andaround the power loom and hand loom centers. The proliferation of smallprocessing units is due to India’s fiscal policies, which favor small independent hand- andpower-processing units over composite mills with modern processing facilities. Theproduction of apparel in India was, until recently, reserved for the small-scale industry (SSI)sector, which was defined as a unit having an investment in plant and machinery equivalentto less than $230,000. Apparel units with larger. Until 2006, Turkey’s textile industry had been experiencing a period of steady growth.Incomes in Turkey were rising, fuelling domestic apparel and textile demand, and growth inapparel exports to Europe was strong. In response, Turkish cotton consumption and imports
rose. However, Turkey’s position as a dominant exporter to Europe was soon to bechallenged. China’s 2001 entry into the World Trade Organization marked the beginning ofan influx of Chinese goods around the globe. By 2006, the quota systems that had been inplace to limit Chinese exports of textiles and apparel to many countries had been eased, andat the end of 2007, European Union quotas expired. With the opening of both the EU andTurkish markets to Chinese exports, tough price competition from China has had negativeeffects on Turkey’s textile and apparel industries. However, it is possible that the recentworldwide economic crisis could increase the competitiveness of Turkish products,mitigating the downturn in Turkey’s textile industry.Turkish Cotton Industry slowsTurkish cotton production has been slowing since the 2004/05 marketing year and has fallenprecipitously in the last two years. Production for 2008/09 is projected to be 2.3 million bales,a 45% decline from the 2004/05 peak of 4.2 million bales. Turkey’s imports of raw cotton peaked in 2006/07, when Turkey was the world’s second-largest importer, importing 4 million bales. Since then, imports have fallen, and the estimatefor 2008/09 is only 2.9 million bales (down 27% from 2006/07). This year, Turkey isexpected to be the fourth-largest importer of cotton, behind China, Pakistan, and Indonesia,and the third-largest importer of U.S. cotton, behind China and Mexico. Driving raw cotton imports, Turkey’s mill demand grew until 2006/07, peaking at 7.3million bales. However, Turkey’s consumption of raw cotton this year is expected to be 5.2million bales, down 28% from 2006/07. Despite falling consumption, Turkey continues to bea major player in the world’s cotton supply chain. As with imports, Turkey is the world’sfourth-largest consumer of cotton, behind China, India, and Pakistan. Paradoxically, one factor weakening Turkey’s textile industry is the economic strides thecountry has made. According to the International Monetary Fund, Turkey’s per-capita GDPgrew 27.3% over the past decade, and recent years have seen increasing stabilization of theTurkish economy and expansion of the middle class. Rising incomes put pressure on thetextile industry, which must compete with cheap Asian labor in both the domestic and exportmarkets. Although the textile industry is still Turkey’s largest industrial sector, accounting for
a third of industrial employment, the automotive and electronics industries are growing inimportance (according to the U.S. State Department).Tough Competition from ChinaIn both its own domestic market and the important European market, Turkey faces toughcompetition from Asia, especially China. According to the Turkish Statistical Institute,Turkey is still a solid net exporter of apparel, with a projected $13.4 billion in exports and$1.3 billion in imports for 2008. However, imports are rapidly gaining ground. From 2007 to2008, exports were up slightly (by 6.1%), while imports were up significantly (by 53.9%).Furthermore, Turkey’s apparel production was down 16.9% from 2007 to 2008.Much of the growth in Turkey’s imports has been in Chinese apparel. From January throughSeptember 2007 to the same period in 2008, imports from China were up 60.3% in knitapparel and 48.9% in woven apparel according 06/07 Turkey’s cotton production.China is the largest foreign supplier of apparel to Turkey, providing 14.9% of Turkey’s totalknit apparel imports and 18.4% of its total woven apparel imports so far in 2008. The valueof Turkey’s imports from China reached new records in September 2008 for both knit andwoven apparel. Chinese textile and apparel shipments to Europe also are up significantly so far this year.In fact, for the first ten months of 2008, the EU experienced larger growth in imports fromChina (38.54%) than any other region of the world. Despite tough economic times, totalChinese textile and apparel exports were up 8.43% for the ten-month period. Of China’s$157.4 billion in global exports of textiles and apparel, $42.5 billion (27.0%) were destinedfor Europe, primarily the EU (21.0%) (based on data from the China National Bureau ofStatistics). Turkey has been feeling the pressure of Chinese competition, as nine of the top tendestinations for Turkish apparel exports in 2008 were EU countries. The most important des-tination was Germany, which received 24.6% of total Turkish apparel exports on a dollarbasis (28.5% of knits and 18.9% of wovens). The top non-EU destination for Turkish apparelwas the United States, which received only 2.3% of Turkey’s apparel exports (1.9% of knits
and 3.0% of wovens). For the first nine months of the year, Turkish apparel shipments to theUnited States fell 37.1% from 2007 to 2008 (44.3% for knits and 28.2% for wovens),continuing a seven-year trend of declining importance of the U.S. market to Turkishexporters. Along with growing Chinese competition for the European market, the effects of theeconomic downturn in Europe have hurt Turkish apparel exports, as the value of Septemberexports declined 1.4% for knit apparel (to $630.6 million) and 5.5% for woven apparel (to$450.3 million) (according to the Turkish Statistical Institute). Hardest hit were shipments toTurkey’s two largest markets, Germany (where exports were flat in knits and down 11.1% inwovens) and England (with exports down 17.4% in knits and 20.4% in wovens)Yarn ProductionModernization efforts have brought major changes to the U.S. textile industry. Equipment hasbeen streamlined and many operations have been fully automated with computers. Machinespeeds have greatly increased. At most mills the opening of cotton bales is fully automated.
Lint from several bales is mixed and blended together to provide a uniform blend of fiberproperties. To ensure that the new high-speed automated feeding equipment performs at peakefficiency and that fiber properties are consistent, computers group the balesfoproduction/feeding according to fiber properties.The blended lint is blown by air from the feeder through chutes to cleaning and cardingmachines that separate and align the fibers into a thin web. Carding machines can processcotton in excess of 100 pounds per hour. The web of fibers at the front of the card is thendrawn through a funnel-shaped device called a trumpet, providing a soft, rope-like strandcalled a sliver (pronounced SLY-ver).
As many as eight strands of sliver are blended together in the drawing process. Drawingspeeds have increased tremendously over the past few years and now can exceed 1,500 feetper minute.Roving frames draw or draft the slivers out even more thinly and add a gentle twist as thefirst step in ring spinning of yarn.Ring spinning machines further draw the roving and add twist making it tighter and thinneruntil it reaches the yarn thickness or “count” needed for weaving or knitting fabric. The yarnscan be twisted many times per inch.Ring spinning frames continue to play a role in this country, but open-end spinning, withrotors that can spin five to six times as fast as a ring spinning machine, are becoming morewidespread. In open-end spinning, yarn is produced directly from sliver. The roving processis eliminated.Other spinning systems have also eliminated the need for roving, as well as addressing thekey limitation of both ring and open-end spinning, which is mechanical twisting. Thesesystems, air jet and Vortex, use compressed air currents to stabilize the yarn. By removing themechanical twisting methods, air jet and Vortex are faster and more productive than anyother short-spinningAfter spinning, the yarns are tightly wound around bobbins or tubes and are ready for fabricforming. Ply yarns are two or more single yarns twisted together.Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare1950-51 56.48 30.62 921960-61 76.78 56.41 1241970-71 76.05 47.63 1061980-81 78.24 78.60 170
1990-91 74.39 117.00 2672000-01 85.76 140.00 2782001-02 87.30 158.00 3082002-03 76.67 136.00 3022003-04 76.30 179.00 3992004-05 87.86 243.00 4702005-06 86.77 244.00 4782006-07 91.44 280.00 5212007-08 94.39 315.00 5672008-09 93.73 290.00 5262009-102010-11Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, itsucceeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yetmanaged to retain its position as worlds second highest cotton producer.ProductsOur vast range of blended fabrics include: blended fabrics, satin fabrics, polyester viscose,100% polyester, 100% micro, 100% cotton, polycotton and polonosic.Quality, being the foremost consideration, ensures that we use the finest yarn. Both, gray yarnand dyed yarn are used to create stripes and checks. Our variety of fabrics includes:
• Blended Fabrics • Cotton Fabrics • Cotton Blended Fabrics • Polyester Viscose Fabrics • Poly Cotton Fabrics • Twill Fabrics • Plain Fabrics • Satin Fabrics • Metti Fabrics • Suitings Fabrics • Shirtings Fabrics • Cross Cord Fabrics • Gabardine Fabrics» Moreover, we manufacture an extensive rangeof suiting’s and shirtings available in differentpatterns.We also produce Worsted Suiting’s for the extraordinary woolen effect. We have alsorecently launched very fine count premium suiting’s which provide glorious smoothness andsoftness. It is a reversible fabric which can be used both ways.ProductionWe employ the latest and the most innovative technologies in production. Our fabrics arewoven on Sulzer, Somet, water jet machines. The unit has a monthly capacity of 0.5 millionmeters.The versatile machines at the plant include doublewidth Sommet Rapier Machines withStaulby Dobby attachment to create various designs and weaves and Projectile PU SulzerMachines .
To stay abreast with technology, we have imported water-jet looms from Japan (Tsudukoma).These machines ensure perfection in designing and guarantee the best quality.Training is an integral part of our human resources management. The Quality Control andResearch & Development Department play a very important role in this.InfrastructureOur sound infrastructure facilities and experienced workforce from the industry, enable us inour endeavor to produce quality products.The technical know-how coupled with the vast experience of our engineers helps inculminating unrivaled products.Our team of Research and Development is striving to meet the expectations of our clients byengineering innovative product COMPANY PROFILE
INTRODUCTIONS.M.T.L:- The S.M.T.L cotton spinning mill post liberalization environment give rice tomembers of industries which brings competitive business war in India.Industries in India have to think how to think how to face them and survive everyorganization is facing unique problem.
Some organization many have old technology some may lay in financial strength and somemay pause be having obsolete products. Some may not have providing good workingenvironment.S.M.T.L mainly help the total job environment for the rural people because this area ruralplace. The S.M.T.L mainly helps the village people (rural people) quality work life refers tothe favorableness or unfavorableness of a total job environment for people.The basic purpose is to develop jobs and develop the village people.The employees working conditions that are excellent for people as well as for the economicwealth of the organization. The elements in S.M.T.L program include open communicationequitable reward Systems a concern for employee job security and satisfying careers andgroup decision making.Objectives of the company:-To achieve a turnover of RS /- per annum 1. Maintain cordial relationship between management and the workers. 2. To study the employees work satisfaction level. 3. To upgrade latest technologies training programmers are conducted.
4. To study employee morale. 5. To increase productivity, suggestion, scheme and management rewards have been introduced. 6. To study working condition and safety measures provided to them.Vision missionVisionAchieving the twin visions of(a) rendering help to the cotton farmers by way of social services and(b) endeavoring to attain commercial gain by sustained growth of the Corporation.MissionHelping cotton farmers by ensuring them remunerative price for their produce and therebyprotect their interest.In the case of support price operations, procuring the entire quantity of kapas offered toprevent distress sale by the farmers
Facilitating the Indian Textile Industry in sourcing their raw material requirement i.e. goodquality, contamination free cotton for production of quality yarn to meet internationalcompetition. • Our mission is to give our customers a competitive advantage through superior products and services at best prices. We will meet and exceed our customers expectations of service through timely communications and quality information. To achieve tangible benefits by promoting efficiencies, productivity and professionalism. Provide competitive prices and genuine products to our clients. Creating a climate for voluntary compliance by providing guidance and building mutual trust. • To promote international textile trade.FINANCE DEPARTMENTFUNCTION OF FINANCE DEPARTMENT
RAISING OF FUNDS Raising of funds generally means collecting financial resourcesthrough various sources such as shares, debentures, short and long terms loans, etc.ALLOCATION OF FUNDS Allocation necessary funds for maintaining the activites of a particular process ofthe companyPROPER FINANCIAL PLANNING Financial planning is done to maintain a smooth inflow and outflow of all theactivites which are concerned with financial aspects of the firm. A proper financial plan isnecessary to accomplish the objectivs of the company.STUDYING THE CAPITAL MARKET The financial department has to have a clear picture of the capital market in orderto meet their financial aspects Stores Department: - It is a service department under the manufacturing division of an organization. Anefficient store keeping system as assistant for smooth flow of materials for production ateconomic cost.
By storage is meant holdings in unsteady of all kinds of stores and material includingcomponents spare parts accessions stores holds unproduced ware house of finished stores godown for finished products . Function of the stores Issue requisition on purchasing department for the most economical quantity of the right kind of material for delivery at the most convenient place and time consider saving expected from manufacture in quantity as well as tie up of capital in materials and facilities and other expenses for maintains the stores. Check in all materials as the quality and quantity. Stores all materials in safe and convenient manner for quickly delivery. A system of code number both to identify and locate the materials should be issued. Issue materials agent proper authorization in right quality and quantity and at right time. Maintain proper record of receipt, issue, adjustments, and balance. Keeping store room orderly and having a place for everything and keeping everything in its place.
Procedure of receipts and issue of materials.Receipts of materials 1. Suppliers were asked for quotation for materials wanted. 2. Can receipt of the quotation for materials examine the lowest cost and quality materials will select supplies and place order with those supplies. 3. Supplier will send document through bank or post or directly as required by the company it the value is more normally the supplier will send documents through on receipt intonation from bank cashier will release the document by paying the value of goods sent and the cashier will sent the documents to stores departments. 4. Stores department will get materials form Transports Company by producing RR (or) LR to them. 5. After receiving materials quality of materials will be cheeked by concerned are thirties and quantity by the stores department and if any variance either in quality or quantity follow up action will be initiated for then materials will be by the stores. 6. After receiving materials receipt of materials will be sent to head office Bangalore. In some occasions payments for materials cost will be paid by head office also according to terms and conditions agreed with the supplies. 7. Then materials will be entered bin cards.
Issue of materials 1. Normally without indent from concerned departments will not be issued. In S.M.S.T maintains supervises will write indent to stores through fitters to get materials required from of indent will be passed by factory manager. 2. Then store will be material entry to bin card and issued the materials to the indent. 3. At the end of month after valuing the materials issued to department during the month an a make a statement called ‘’stores consumption for the month of 2010-2011 to head office. 4. At the end of year recenliation will be made between the stores and head office for correctness of values. 5. Quantity of materials in balance will be cheeked by the stores.Store location of material store S.M.S.T
GoddenRaw material CardingBlow room combers Drawing Simpler Spinning Winding Packing STORES ST
In S.M.S.T MATERIALS ARE CLASSIFIED AS FAL 1. Gears :- in all gear wheels are again subdivided according to department. 2. Liquids – sub –divided Oil Diesels Petrol 3. Tools – sub – groups Spanners (double end) -do- (ring type) Dril bits Screw drivers Taps etc 4. Belts -subdivided according to sizes v.belts plat belts enders belts again v-belts – A-27 to 70 according to sizes B -27 to 74 5. Bolts and nuts 6. Electrical items
HUMAN RESOURSE DEPARTMENTFunctions of H.R.D:- 1. Performance appraisal 2. Employees training 3. Carrere p 4. lanning and development 5. Involvement in quality circles 6. Involvement in worker participation in management Working Hours:- SHIFT FROM TO Shift – 1 7.AM 3.PM Shift – 2 3.PM 11.PM Shift -3 11.PM 7.AM
Welfare facilitieslities:- 1. Housing Facilities 2. Loan 3. Provident Fund 4. Uniform/Cycle facilities 5. Performance appraisal 6. Infrastrue Facilities Housing facilities:- Housing facilities that is quarters is provided all the employees. The rent for this deducted from the salaries. Loan:- The company also provide loans facilities for their employees. For the purpose of vehicles oat. Provident fund: - All the employees and executives are covered under provident fund act (12% of wages or salary is contributed by the management. Bonus: - bonus are paid in the following base D.A. 12%, P.FHealth facilities: - the company has provided health facilities for employees.Performance appraisal:- performance appraisal at S.M.T.L is carried on the basis of qualityand quantity given by each employees it is done over 5years but only for the purpose ofsalary incentives and promotion for the employees.
Infrastructure facilities:- • Buildings • Computer • Material holding or safety equipment 0 • Quality control laboratory and testing equipment • Medical facilities • Other supporting activities
PRODUCT PROFILProcessing: - cotton bales are purchased in the form of 170 kgs. Each from various places likeGujarat, Maharashtra, madhyapradesh and some parts of Karnataka and stored in cottongodown. Depending upon the daily requirement, bales are issued to department and mixing isprepared putting different lots. This opened cotton will be processed trough blow room,carding, comber where thorough opening and cleaning is taken place. Besides short fibercontent in the cotton will also be separated by the combing where fibers are doubled andparalleled and then it goes to simplex machines where sliver will be converted to rovingwhich will be fed directly to spinning frame to spin required count of yarn. Since of get yarnin smaller package this will be fed to winding where package will be made to 1 kg. to 2 kg.,
depending upon the requirement of the market. Then these cones are packed either in HDPEbags of 50/51/52kg. OR in cartons.Outlook for industryThe outlook for textile industry in India is very optimistic. It is expected that Indian textileindustry would continue to grow at an impressive rate. Textile industry is being modernizedby an exclusive scheme, which has set aside $5bn for investment in improvisation ofmachinery. India can also grab opportunities in the export market. The textile industry isanticipated to generate 12mn new jobs in various sectores.NATURE OF THE BUSINESS CARRIAR:- 1. Attitude 2. Environment 3. Nature of job 4. People 5. Stress level 6. Challenges 7. Risk involved and rewardATTITUDE: At the person who is entrusted with a particular job needs to have sufficientknowledge, required skill and expertise, enough experience, enthusiasm, energy level,
willingness to learn new things, dynamism, sense of belongingness in the organization,involvement in the job, inter personnel relations, adaptability changes in the situation,openness for innovative ideas, competitiveness, zeal, ability to work under pressure,leadership qualities and team spirit.ENVIRONMENT: The job may involve dealing with customers who have varied tolerance levelpreference, behavioral pattern, level of understanding; or it may involve working withdangerous machines like drilling pipes, cranes, lathe machines, or even with animals wheremaximum safety precautions have to be observed which needs lot of concentration, alertness,presence of mind, quick with involuntary actions, synchronization of eyes, hands and body,sometimes high level of patience, tactfulness, empathy and compassion and control overemotions.NATURE OF JOB: For example, a driller in the oil drilling unit, a driver unit, a diver, a fire – fighter,traffic policeman, train engine driver, construction laborers, welder miner lathe mechanichave to do dangerous jobs and have to be more alert in order to avoid any loss of limb, or lossof life which is irreparable; whereas a pilot doctor, judge, journalist have to be more prudentand tactful in handling the situation; a CEO, a professor, a teacher have more responsibilityand accountability but safe working environment; a cashier or as security guard cannotafford to be careless in his job as it involves loss of money, property and wealth; a politicianor a public figure cannot afford to be careless, for his reputation and goodwill is at stake.Some jobs need soft skills, leadership qualities, intelligence, decision making abilities,abilities to train and extract work from others; other jobs need motor skills, perfection andextreme carefulness. PEOPLE: Almost everyone has to deal with three set of people in the work place those arenamely boss, co-workers in the same, level and subordinates. Apart from this, someprofessions need interaction with people like patients, media persons, public, customers,
thieves, robbers, physically disabled people, mentally challenged, children, foreigndelegates, gangsters, politicians, public figures and celebrities. These situations demand highlevel of prudence, cool temper, tactful ness, humor, kindness, diplomacy and sensitiveness.STRESS LEVEL: All these above mentioned factors are inter- related and interdependent. Stress levelneed not be directly proportional to the compensation. Stress is of different types mentalstress /physical stress and psychological or emotional stress. A managing director of acompany will have mental stress, a laborer will have physical stress, a psychiatrist will haveemotional stress. Mental stress and Emotional stress cause more damage than physical stress.CHALLENGES: The job should offer some challenges at least to make it interesting; that enables anemployee to upgrade his knowledge and skill and capabilities; whereas the monotony of thejob makes a person dull, non-enthusiastic, dissatisfied, frustrating, complacent, initiative-less and uninteresting. Challenge is the fire that keeps the innovation and thrill alive. A well –accomplishment challenging job yields greater satisfaction than a monetary perk; it boosts theself –confidence also.RISK INVOLVED AND REWARD: Generally reward on compensation is directly proportional to the quantum of work,man –hour, nature and extent of responsibility, accountability, delegated powers, authority ofposition in the organizational chart, risk involved, level of expected commitment, deadlinesand targets, industry, country, demand and supply of skilled manpower and even politicalstability and economic policies of a nation. Although risk involved in every job its nature anddegree varies in them; all said and done is a key criteria to lure a prospective worker to acceptthe offer.
Mckensy’s 7S Frame work:
FUNCTIONAL DIRECTORS: (INVOLVING IN DAY-TO-DAY ACTIVITIES)NATIONAL PRODUCT HEADS: (REGISTRY, DEPOSITORY, EQUITY BROKING,COMMODITIES BROKING, DISTRIBUTION PRODUCTS, REALTY, INSURANCE,WEALTH MANAGEMENT, INVESTMENT BANKING, ACCOUNTING & AUDIT)ZONES: (DIVIDED INTO NORTH ZONE, WEST ZONE, EAST ZONE, SOUTH ZONE,SOUTH-WEST ZONE)ZONAL PRODUCT HEADS: (REPORTING TO THE RESPECTIVE NATIONALPRODUCT HEADS)REGIONAL PRODUCT HEADS: (REPORTING TO THE RESPECTIVE ZONALPRODUCT HEADS)CLUSTER HEADS: (REPORTING TO THE RESPECTIVE REGIONAL HEADS)FUNCTIONAL EMPLOYEES: (BRANCH COORDINATORS, DEALERS, FRONT-OFFICE EXECUTIVES, CUSTOMER SERVICING EXECUTIVES, SALES /MARKETING EXECUTIVES, WEALTH ADVISORS)
2. Systems: The organization follows strict rules and regulations for the employee. It followsspecific entry and exit timing for its employees. Each employee has to follow a specificdress code depending on his line or work or duty. All junior staff member will have toreport to the designated senior staff member daily attendance register to the humanresource department. This is daily processed at the end of each month. The company has its regional office in Bangalore, which is headed by a regionalmanager. All branch heads and various dept heads will report to him on regular basis. Finance operations are centralized at the head office level and excess funds areregularly transferred to the head office account. Periodic fund requirement at theregional level will be sent as and when required. But the local regional manager wouldsign all cheques and such instruments. Requirement of fresh incumbents are made at local office at the regional leveldepending upon the manpower requirement. The respective departmental heads holdsthe HR would dispatch interviews and the appointment from the head office. Usually the employee will be on one-year probation and after successful completionhe will be made permanent employee. Operation of company is monitored by thechairman of the company and various others senior managers, operations at the juniorlevel is largely centralized with division heads making key decisions. The company isfollows strict register of quality maintenance with high standards of process andsystems.3. Style: The chairman who sits at the head office in Bangalore heads the organization. Atall over the branches across the country Regional manager has been appointed. Thechairman will take decision related to the group as such. All other decisions related tothe relevant to the region and regional heads will take their line of work. Managers are
responsible and accountable for their decisions and subsequent implementations. Byand large decision making are decentralized for day to day affair.4. Staff: Each incumbent should have a specific academic qualification to match theposition he is going to hold and also necessary skills to execute the assignment.Marketing/sales people should posses at least a degree and a management degree ispreferred and should necessary posses good communication skill and fair for sale. Heshould have a two wheeler for communicating purpose. All back end employees should have at less graduation with exposure to necessaryskills. For fresher due training will be given and then will be put on the jobs. Theirpotential will be monitored on a regular basis and will be suitable guidance from time totime. Annual increments are also given on the performance predominant.5. Skills: A manager is viewed as a skilled person who has the ability to manage people andresources and at times finance also. He will be responsible to indentify for the right joband get the work done efficiently. Min wastages and maximum utilization of availableresources is the key organizational behavior and culture is thought to the fellowemployees and potential employees are suitable nurtured.6. Strategy: A company of S.M.S.T’s stature cannot afford to work without objectives. Anoverall group objective is already set and all the employees are driven towardsS.M.S.T’s believes that ‘no individual is big as the organizational itself’. Competition isthe key to survival and for giving diversification for the given product as suchcompetition is always good. S.M.S.T updates itself to the surroundings competition andbring out changes are services and related products to be in competition. In thedistribution business S.M.S.T enjoys 40% market, which is healthy from the industrystandard. Survival of the company as well as the growth of the company over the past36 years, has been effectively overcoming competition. As a leading financial services
provider in the country S.M.S.T brand name is well known. After diversifying intovarious services providing activities it has become S.M.S.T’s prerogative to be leader inthe business.
SWOT ANALYSISStrengths • Vast textile production capacity • Large pool of skilled and cheap work force • Efficient multi-fiber raw material manufacturing capacity • Large domestic market • Enormous export potential • Very low import content • Flexible textile manufacturing systems • Logistics • Brand recognition across • Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. • Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry. • . • Industry has large and diversified segments that provide wide variety of products.India has rich resources of raw materials of textile industry. It is one of the largest producersof cotton in the world and is also rich in resources of fibers. India is rich in highly trainedmanpower. The country has a huge advantage due to lower wage rates. Because of low laborrates the manufacturing cost in textile automatically comes down to very reasonable rates.India is highly competitive in spinning sector and has presence in almost all processes of thevalue chain.
Indian garment industry is very diverse in size, manufacturing facility, type of apparelproduced, quantity and quality of output, cost, requirement for fabric etc. It comprisessuppliers of ready-made garments for both, domestic or export marketsWeaknesses• Use of outdated manufacturing technology• unorganized and decentralized sector• High production cost with respect to other Asian completion• Textile Industry is highly Fragmented Industry.• Industry is highly dependent on Cotton.• Lower Productivity in various segments.• There is Declining in Mill Segment.• Lack of Technological Development that affect the productivity.• . Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time.• Unfavorable labor Laws.• Lack of Trade Membership, which restrict to tap other potential market.• Lacking to generate Economies of Scale.• Higher Indirect Taxes, Power and Interest Rates.• Indian Textile Industry is highly Fragmented Industry.• Industry is highly dependent on Cotton.• Lower Productivity in various segments.• There is Declining in Mill Segment.• Lack of Technological Development that affect the productivity .• Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time.• Unfavorable labor Laws.• Lack of Trade Membership, which restrict to tap other potential market.• Lacking to generate Economies of Scale.
• Higher Indirect Taxes, Power and Interest Rates.Indian textile industry is highly fragmented in industry structure, and is led by small scalecompanies. The reservation of production for very small companies that was imposed withthe intention to help out small scale companies across the country, led substantialfragmentation that distorted the competitiveness of industry. Smaller companies do not havethe fiscal resources to enhance technology or invest in the high-end engineering of processes. • Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labor reforms in India. • India seriously lacks in trade pact memberships, which leads to restricted access to the other major marketsOPPERTUNITIES: - . • Making effective use of established brand name • Further penetration in the retail segment • Cross selling of multiple products thru long-term financial solutions thru financial planning which is a growing segment which should be explored and implemented •Full advisory platform across products with highly skilled labor. •Growth rate of Domestic Textile Industry is 6-8% per annum. •Large, Potential Domestic and International Market. •Product development and Diversification to cater global needs. . •Market Development.
THREATS:• Has to control costs and manage people & resources effectively• Cyclical / volatile / unpredictable nature of markets could hamper business plans• Threat for traditional market for powerloom and handloom products and forcing them for product diversification.• Competition from other developing industries.• Elimination of quota system will lead to fluctuations in export demand.• Geographical disadvantages.• International labor and environment laws.• To balance the demand and supply.• To make balance between price and qulity.
FINDINGS AND SUGGESTION • FINDINGS • The factory suffruing from lack skilled labour it leads to lower productivity. • Lack of transportation facilites for distribution of finished goods • Use of treditional technology for production facilites and all tranction done through human beings • All work done through use of human which leads to increase the cost of production • Huge of unorganised and decentralised sector • Infrastrctural bottlenecks and efficiency such as transaction time at ports and transportation time • Higher indierct tax,power,interst • Increased the global competition in the post 2005 trade regime under WTO • Inadequate financial facilites to purchase of raw materials and payment made to labours • Unfavourable labour laws which leads to labour makes strikes against management • Improper storage facilites to store the raw materials and finished goodsSUGGESTION
• The factory install new and advanced technology and machinery for productions facilites. which will make factory as more productivity.• The factory adopt new marketing stratgy and install adquate channels of distribution’s• The factory record all the transation’s through computerised system.which helps to company to save time and reduse paper work and also it helps proper maintnance of all documents.• Giving proper trainning to all labours atleast tow days at the week ends, and also factory made selection procedure based on minimum eudcation qualification.• Giving more welfare facilites to labour which helps to motivate labours and also it helps to increase the productivety.