Presentation On Aarti International Ltd

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Presentation On Aarti International Ltd

  1. 1. Summer Training Project on Organic Cotton: An Opportunity for Ludhiana textile industry to trade in Global textile market   Undertaken at AARTI INTERNATIONAL LIMITED Presented by: Nitin Goel MBA-IB (2B) Roll No. 94972238291
  2. 2. Indian Textile Industry <ul><li>Second largest in the world </li></ul><ul><li>Second largest employment generator- 38 million </li></ul><ul><li>Segments: </li></ul><ul><ul><ul><li>Readymade garments </li></ul></ul></ul><ul><ul><ul><li>Cotton textiles </li></ul></ul></ul><ul><ul><ul><li>Man made textiles </li></ul></ul></ul><ul><ul><ul><li>Silk textiles </li></ul></ul></ul><ul><ul><ul><li>Woolen textiles </li></ul></ul></ul><ul><ul><ul><li>Handicrafts </li></ul></ul></ul><ul><ul><ul><li>Jute </li></ul></ul></ul><ul><li>Main markets: USA, UAE, UK, Germany, France, Russia , Canada </li></ul>
  3. 3. Major players <ul><li>Arvind Mills </li></ul><ul><li>Raymonds </li></ul><ul><li>Vardhaman Spinning </li></ul><ul><li>Welspun India </li></ul><ul><li>Alok Industries Ltd </li></ul><ul><li>Madura Garments </li></ul>
  4. 4. Future Outlook <ul><li>Will grow at an annualized rate of 16% between 2007 and 2012 </li></ul><ul><li>Expected to reach a level of $115 billion by 2012 </li></ul><ul><li>Share in world textile trade to increase from current 3% to 7% </li></ul><ul><li>Exports projected to increase from $19.24 billion in 2006-2007 to $55 billion in 2012 </li></ul><ul><li>17.37 million new jobs will be created in next five years - 12.02 direct and 5.35 indirect </li></ul>
  5. 5. Introduction to Aarti Group
  6. 6. Group Profile <ul><li>Registered office/Corporate office : G.T. Road, Millar Ganj, Ludhiana </li></ul><ul><li>Year of Incorporation : 1977 </li></ul><ul><li>The Aarti Group comprises of: </li></ul><ul><li>Aarti Steels Limited </li></ul><ul><li>Aarti International Limited </li></ul><ul><li>Aarti Theatre </li></ul><ul><li>Deepak hospital </li></ul>
  7. 7. Brief History <ul><li>Incorporated in 1977 in the name of Aarti Steels Limited at Ludhiana </li></ul><ul><li>Steel Plant with a capacity of 1.25lacs tones per annum </li></ul><ul><li>Steel Plant in Orissa (India) with the capacity of 0.5 million tons per annum </li></ul><ul><li>Diversified into yarn manufacturing in 1996 with the installe d capacity of 27000 spindles </li></ul><ul><li>Deepak Memorial Hospital located in Ludhiana is a multi specialty Hospital with 24*7 medical emergency facilities </li></ul><ul><li>Cinema which has been a constant source of joy to the residents </li></ul>
  8. 8. Mission & Vision <ul><li>Mission </li></ul><ul><li>“ Providing efficient & reliable services to the customer by adding genuine value to the product” </li></ul><ul><li>Vision </li></ul><ul><li>“ To be globally recognized as a supplier of choice in this highly competitive global economy” </li></ul>
  9. 9. Business Portfolio <ul><li>SHARE OF EACH BUSINESS IN GROUP TURNOVER </li></ul>
  10. 10. Product Range <ul><li>  </li></ul><ul><li>Yarn </li></ul><ul><li>Single yarn in count range of Ne 16s/1 to Ne 80s/1 </li></ul><ul><ul><ul><li>100% Cotton- Combed </li></ul></ul></ul><ul><ul><ul><li>Compact Yarn </li></ul></ul></ul><ul><ul><ul><li>Hosiery Yarn </li></ul></ul></ul><ul><li>Double yarn in count range of Ne 16s/2 to Ne 80s/2 </li></ul><ul><ul><ul><li>100% Cotton- Combed </li></ul></ul></ul><ul><ul><ul><li>Compact Yarn </li></ul></ul></ul><ul><ul><ul><li>Hosiery Yarn </li></ul></ul></ul>
  11. 11. <ul><li>Steel </li></ul><ul><li>Carbon </li></ul><ul><li>Spring Steel </li></ul><ul><li>Low Alloy Steels </li></ul><ul><li>Wire Rods </li></ul><ul><li>Wires drawn and galvanized </li></ul><ul><li>Coal Washer </li></ul><ul><li>Sponge Iron </li></ul>
  12. 12. Introduction to Aarti International Ltd.
  13. 13. Aarti Yarn Range <ul><li>  </li></ul><ul><li>Single yarn in count range of Ne 16s/1 to Ne 80s/1 </li></ul><ul><li>  </li></ul><ul><li>100% Cotton- Combed Yarn </li></ul><ul><li>  </li></ul><ul><li>100% Cotton-Compact Yarn </li></ul><ul><li>  </li></ul><ul><li>100% Cotton-Hosiery Yarn </li></ul><ul><li>Double yarn in count range of Ne 16s/2 to Ne 80s/2 </li></ul><ul><li>100% Cotton- Combed Yarn </li></ul><ul><li>  </li></ul><ul><li>100% Cotton-Compact Yarn </li></ul><ul><li>  </li></ul><ul><li>100% Cotton-Hosiery Yarn </li></ul>
  14. 14. Philosophies  <ul><li>  </li></ul><ul><li>Focus on Value Added Yarn </li></ul><ul><li>Improvement in Capacity Utilization </li></ul><ul><li>Focus on high value customers </li></ul><ul><li>Focus on improving yields </li></ul>
  15. 15. <ul><li>Quality policy </li></ul><ul><li>Committed to meet the customer expectations by continuous efforts to improve process & technology </li></ul><ul><li>Quality objectives </li></ul><ul><li>To provide better human resources </li></ul><ul><li>To achieve maximum utilization of resources </li></ul>
  16. 16. Departments <ul><li>Production Department </li></ul><ul><li>Research & Development Department </li></ul><ul><li>Maintenance & Engineering Department </li></ul><ul><li>Human Resource Department </li></ul><ul><li>Stores & Purchase Department </li></ul><ul><li>Excise & Dispatch Department </li></ul><ul><li>Marketing Department </li></ul><ul><li>Finance Department </li></ul>
  17. 17. Markets <ul><li>Major export destinations are as follows: </li></ul><ul><li>Hong Kong </li></ul><ul><li>China </li></ul><ul><li>South Korea </li></ul><ul><li>Taiwan </li></ul><ul><li>Bangladesh </li></ul><ul><li>European Union </li></ul>
  18. 18. <ul><li>Major domestic market destinations are as follows: </li></ul><ul><li>Gujarat </li></ul><ul><li>Mumbai </li></ul><ul><li>Uttar Pradesh </li></ul><ul><li>Delhi </li></ul><ul><li>Haryana </li></ul><ul><li>Punjab </li></ul>
  19. 19. Accolades & awards <ul><li>USTERIZED quality certificate from USTER, Switzerland. </li></ul><ul><li>Supima Licence </li></ul><ul><li>Cotton USA Licence from Cotton Council International. </li></ul><ul><li>Spirituality at Workplace Award </li></ul>
  20. 21. Strengths <ul><li>Good brand equity </li></ul><ul><li>Good technological base </li></ul><ul><li>High Production Capacity </li></ul>
  21. 22. Weaknesses <ul><li>Comparatively high prices </li></ul><ul><li>Lesser degree of promotional activity </li></ul><ul><li>High labor turnover </li></ul>
  22. 23. Opportunities <ul><li>Favorable demand conditions-large, growing domestic & international market </li></ul><ul><li>India - Ban on Cotton exports </li></ul><ul><li>The government allows 100 per cent FDI in the textiles sector under the automatic route </li></ul>
  23. 24. Threats <ul><li>Cotton prices soar </li></ul><ul><li>Growing competition from yarn producing units in the unorganized sector </li></ul><ul><li>Competition from other established groups like Nahar, Vardhman, Anshupati Textiles, Malwa etc. </li></ul>
  24. 25. Ratio Analysis of Aarti International Ltd.
  25. 26. Liquidity Ratios
  26. 27. Current ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Current assets 167 193 186 Current liabilities 85 93 87 Current ratio 1.96:1 2.07:1 2.14:1
  27. 28. Quick Ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Quick assets 71 62 76 Current liabilities 85 93 87 Quick ratio 0.84:1 0.67:1 0.87:1
  28. 29. Activity Ratios
  29. 30. Inventory turnover ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Cost of goods sold 284 218 278 Average inventory 98.5 115 121 Inventory turnover ratio ( in times) 2.88 1.89 2.3 Inventory holding period ( in days) 126.7 192.3 158.7
  30. 31. Debtor turnover ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Net credit sales 275 276 345 Average debtors 64 61 64 Debtors turnover ratio 4.24 4.49 5.43 Debtor conversion period 86.1 81.3 67.2
  31. 32. Creditor turnover ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Net credit purchases 248.5 190.7 187.9 Average creditors 10.57 11.43 11 Creditor turnover ratio ( in times ) 23.51 16.68 17.08 Average payment period ( in days ) 15.52 21.88 21.37
  32. 33. Capital structure ratios
  33. 34. Debt –equity ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Debt 256 368 362 Equity 163 170 162 Debt equity ratio 1.57:1 2.16:1 2.23:1
  34. 35. Proprietary ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Shareholder fund 162 170 162 Equity 444 238 536 Proprietary ratio 37% 71% 30%
  35. 36. Solvency ratio Year 2006-07 2007-08 2008-09 Proprietary 37% 71% 30% Solvency ratio 63% 29% 70%
  36. 37. Profitability ratios
  37. 38.   Gross profit ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Gross profit 73 58 68 Net sales 275 276 345 Gross profit ratio 26.6% 20.9% 19.6%
  38. 39. Net profit ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Net profit 14.35 12.4 10.97 Net sales 275 276 345 Net profit ratio 5.2% 4.49% 3.96%
  39. 40. Operating profit ratio ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Operating profit 56 41 35 Net sales 275 276 345 Operating ratio 20.34% 15% 9.08%
  40. 41. Return on shareholders’ equity ( Fig. In Crores ) Year 2006-07 2007-08 2008-09 Net profit after taxes 14.35 12.4 10.97 Shareholders’ fund 275 170 170 Return on shareholders’ equity 5.22% 7.3% 6.45%
  41. 42. Trend analysis
  42. 43. Trend of Turnover Years Sales (Rs. In Crores) Trend ( In %) 2004-05 143.68 100 2005-06 154.28 107.38 2006-07 274.92 191.34 2007-08 276.09 192.16 2008-09 345.43 240.42
  43. 44. Trend of Net Profit / Loss Years Net Profit (Rs. In Crores) Trend ( In %) 2004-05 17.49 100 2005-06 18.61 106.4 2006-07 14.35 82.05 2007-08 12.41 70.95 2008-09 10.97 62.72
  44. 45. Trend of EPS Years EPS (Rs.) Trend (In %) 2004-05 25.98 100 2005-06 25.29 97.34 2006-07 16.61 63.93 2007-08 14.03 54 2008-09 11.47 (31.25)
  45. 46. Introduction to the Project
  46. 47. Organic cotton <ul><li>Originates from organic agriculture </li></ul><ul><li>Certified ‘organic’ by certification bodies </li></ul><ul><li>Aims for an optimum and sustainable use of local natural resources </li></ul><ul><li>No application of external inputs like pesticides, chemical fertilizers, herbicides and chemically treated or genetically modified (GM) seed </li></ul><ul><li>External ‘organic’ inputs may be used </li></ul><ul><li>More labour intensive </li></ul><ul><li>Yields are lower </li></ul>
  47. 48. Standards <ul><li>Global Organic Textile Standard (GOTS) </li></ul><ul><ul><ul><li>To be labelled “organic” requires fiber to be at least 95% organic. (The remaining 5% can be conventional fiber, but not of the same fiber as the organic portion) </li></ul></ul></ul><ul><li>OE 100 and OE Blended </li></ul><ul><ul><ul><li>OE 100 only allows a minimum of 95% organic fiber (exclusive of threads or non-textile accessories). The remaining 5% cannot be cotton. </li></ul></ul></ul><ul><ul><ul><li>OE Blended requires at least 5% organic cotton content for the blended standard allowing the remaining fiber to be any fiber, including conventional cotton. </li></ul></ul></ul>
  48. 49. Global Organic Cotton Market <ul><li>Retailers </li></ul><ul><ul><li>C&A (Belgium) </li></ul></ul><ul><ul><li>Nike, Inc. (Oregon, USA) </li></ul></ul><ul><ul><li>Walmart (Arkansas, USA) </li></ul></ul><ul><ul><li>Williams-Sonoma, Inc. (California, USA and recorded last year as Pottery Barn) </li></ul></ul><ul><ul><li>H&M (Sweden) </li></ul></ul><ul><ul><li>Knitwear (New York, USA) </li></ul></ul><ul><ul><li>Coop Switzerland </li></ul></ul><ul><ul><li>Green source Organic Clothing Co. (Washington, USA) </li></ul></ul><ul><ul><li>Levi Strauss & Co. (California, USA) </li></ul></ul><ul><ul><li>Target (Minnesota, USA) </li></ul></ul><ul><ul><li>Adidas (Germany) </li></ul></ul><ul><ul><li>Nordstrom </li></ul></ul>
  49. 50. <ul><li>Manufacturers </li></ul><ul><li>Organic cotton yarns, fabrics, and finished goods producing regions includes: </li></ul><ul><ul><ul><li>China </li></ul></ul></ul><ul><ul><ul><li>Southeast Asia </li></ul></ul></ul><ul><ul><ul><li>Indonesia </li></ul></ul></ul><ul><ul><ul><li>India </li></ul></ul></ul><ul><ul><ul><li>Pakistan </li></ul></ul></ul><ul><ul><ul><li>Bangladesh </li></ul></ul></ul><ul><ul><ul><li>Turkey </li></ul></ul></ul><ul><ul><ul><li>Mexico </li></ul></ul></ul><ul><ul><ul><li>United States </li></ul></ul></ul>
  50. 52. Global retail sales of organic cotton products Source: Organic Exchange 2009 Market Report
  51. 53. Future outlook <ul><li>According to OE forecasts: </li></ul><ul><ul><ul><li>Global organic cotton market will grow 20 to 40 percent in both 2010 and 2011 </li></ul></ul></ul><ul><ul><ul><li>Reaching about $5.1 billion market in 2010 and $6.0 billion market in 2011 </li></ul></ul></ul>
  52. 54. Title of the Research Organic cotton: An opportunity for Ludhiana textile industry to trade in global textile market
  53. 55. Objectives of the research <ul><li>To know the trend of export of organic cotton textile products from Ludhiana & the reasons for such trend. </li></ul><ul><li>To know the companies’ integration with valid operational certificate for manufacturing & trading organic cotton textile product. </li></ul><ul><li>To know the factors considered while procuring raw material for organic cotton textile product. </li></ul><ul><li>To know the factors influencing people to enter into organic cotton textile industry. </li></ul>
  54. 56. Research Methodology
  55. 57. <ul><li>Research Design </li></ul><ul><li>The research design of the project is descriptive as it describes data and view points of the organic cotton textile products manufacturers & exporters in Ludhiana. </li></ul>
  56. 58. <ul><li>Universe </li></ul><ul><li>All the manufacturers & exporters of organic cotton textile products </li></ul><ul><li>Population </li></ul><ul><li>All the manufacturers & exporters of organic cotton textile products in Ludhiana </li></ul><ul><li>Sampling Unit </li></ul><ul><li>Any single individual or firm who manufactures & exports organic cotton textile products </li></ul><ul><li>Sampling Technique </li></ul><ul><li>Convenience sampling technique and Snowball technique </li></ul><ul><li>Sample size </li></ul><ul><li>40 </li></ul>
  57. 59. Limitations of the study <ul><li>Elements of biasness might have crept in </li></ul><ul><li>Only 40 respondents have been contacted due to time constraint </li></ul><ul><li>Generally the respondents were busy in their work and were not interested in responding </li></ul><ul><li>Respondents were reluctant to disclose complete and correct information about themselves and their organizations </li></ul>
  58. 60. Data Analysis and Interpretation
  59. 61. Table 5.1-No of organic cotton textile products manufacturers & exporters in Ludhiana (N=40) Products Yarn Fabric Garment Knitted Woven Knitted Woven Knitted Woven No of responses 12 6 16 4 19 4 No of respondents 40 40 40 40 40 40 Percentage 30% 15% 40% 10% 47.5% 10%
  60. 62. Fig. 5.2- Annual turnover of the manufacturers & exporters in the year 2009-10 (N=40)
  61. 63. Fig 5.3- Proportion of export of organic cotton products out of total sales (N=40)
  62. 64. Fig 5.4-Export trend of organic cotton textile products since manufacturers have started making (N=40)
  63. 65. Fig 5.5-Factors resulting in an increasing demand of organic cotton textile products (N=40)
  64. 66. Fig 5.6-Factors resulting in decreasing & constant demand of organic cotton textile products (N=40)
  65. 67. Fig 5.7-No. holders of valid operational certificate applicable for the production/ trade of organic cotton textile products (N=40)
  66. 68. Fig 5.8-Holders of different types of operational certificate (N=40)
  67. 69. <ul><li>Consideration of various parameters while procuring raw material for organic cotton textile products </li></ul>Table 5.9(a)-Rating of payment terms factor (N=40) Rating No. of respondents Product Most considered (+2) 23 46 More considered (+1) 8 8 Neutral (0) 8 0 Less considered (-1) 1 -1 Least considered (-2) 0 0 Total 40 53 Mean 1.325
  68. 70. Table 5.9(b)-Rating of price factor (N=40) Rating No. of respondents Product Most considered (+2) 26 52 More considered (+1) 13 13 Neutral (0) 1 0 Less considered (-1) 0 0 Least considered (-2) 0 0 Total Mean 40 65 1.625
  69. 71. Table 5.9(c)-Rating of quality factor (N=40) Rating No. of respondents Product Most considered (+2) 16 32 More considered (+1) 14 14 Neutral (0) 9 0 Less considered (-1) 1 -1 Least considered (-2) 0 0 Total 40 45 Mean 1.125
  70. 72. Table 5.9(d)-Rating of lead time factor (N=40) Rating No. of respondents Product Most considered (+2) 4 8 More considered (+1) 14 14 Neutral (0) 14 0 Less considered (-1) 6 -6 Least considered (-2) 2 -4 Total 40 12 Mean 0.30
  71. 73. Table 5.9(e)-Rating of long term relationship factor (N=40) Rating No. of respondents Product Most considered (+2) 12 24 More considered (+1) 12 12 Neutral (0) 8 0 Less considered (-1) 3 -3 Least considered (-2) 5 -10 Total 40 23 Mean 0.575
  72. 74. Table 5.9(f)-Rating of reputation of supplier factor (N=40) Rating No. of respondents Product Most considered (+2) 7 14 More considered (+1) 12 12 Neutral (0) 11 0 Less considered (-1) 7 -7 Least considered (-2) 3 -6 Total 40 13 Mean 0.325
  73. 75. Fig 5.10-Combined result of various parameters while procuring raw material
  74. 76. Factors influencing people to enter in to organic cotton textile products business Table 5.11(a)-Rating of increasing basket size factor (N=40) Rating No. of respondents Product Most influencing (+2) 17 34 More influencing (+1) 11 11 Neutral (0) 5 0 Less influencing (-1) 4 -4 Least influencing (-2) 3 -6 Total 40 35 Mean 0.875
  75. 77. Table 5.11(b)-Rating of Highly profitable factor (N=40) Rating No. of respondents Product Most influencing (+2) 4 8 More influencing (+1) 18 18 Neutral (0) 14 0 Less influencing (-1) 2 -2 Least influencing (-2) 1 -2 Total 40 22 Mean 0.55
  76. 78. Table 5.11(c)-Rating of Necessary for survival factor (N=40) Rating No. of respondents Product Most influencing (+2) 3 6 More influencing (+1) 16 16 Neutral (0) 14 0 Less influencing (-1) 7 -7 Least influencing (-2) 0 0 Total 40 15 Mean 0.375
  77. 79. Table 5.11(d)-Rating of to remain competitive factor (N=40) Rating No. of respondents Product Most influencing (+2) 11 22 More influencing (+1) 18 18 Neutral (0) 6 0 Less influencing (-1) 4 -4 Least influencing (-2) 1 -2 Total 40 34 Mean 0.85
  78. 80. Table 5.11(e)-Rating of helps in branding or differentiation factor (N=40) Rating No. of respondents Product Most influencing (+2) 1 2 More influencing (+1) 12 12 Neutral (0) 9 0 Less influencing (-1) 13 -13 Least influencing (-2) 5 -10 Total 40 -9 Mean 0.225
  79. 81. Table 5.11(f)-Rating of global demand factor (N=40) Rating No. of respondents Product Most influencing (+2) 19 38 More influencing (+1) 10 10 Neutral (0) 7 0 Less influencing (-1) 3 -3 Least influencing (-2) 1 -2 Total 40 43 Mean 1.075
  80. 82. Combined result of factors influencing people to enter into organic cotton textile products business Fig 5.12-Factors influencing people to enter into organic cotton textile products business
  81. 83. Table 5.13-Steps that government should take to boost the sales of organic cotton textile products in the global textile market (N=40) Steps Regulate prices Favourable global policies Create awareness of eco-friendly products Encourage farming of organic cotton Incentives to farmers to grow organic cotton Others No of responses 24 7 17 9 6 1 No of respondents 40 40 40 40 40 40 Percentage 60% 17.5% 42.5% 22.5% 15% 2.5%
  82. 84. Findings <ul><li>There are 30% knitted & 15% woven organic cotton yarn manufacturers & exporters, 40% knitted & 10% woven fabric manufacturers & exporters & 47.5% knitted & 10% woven garments manufacturers & exporters in Ludhiana out of 40 respondents. </li></ul><ul><li>Maximum no. of respondents exporting organic cotton textile products are having annual turnover above 40crores. </li></ul><ul><li>The maximum no of respondents export less percentage of organic cotton textile products of their total sales where as only few respondents are exporting 30% to 40% & above 40% organic cotton textile products of their total sales. </li></ul>
  83. 85. <ul><li>An increasing demand of organic cotton textile product in the overseas market has resulted in an increase in the exports of organic cotton textile products. </li></ul><ul><li>High prices & availability of substitutes are the most important factors which have resulted in constant & decreasing exports of their organic cotton textile products. </li></ul><ul><li>All the respondents have valid operational certificate for the production & trading of organic cotton textile products. </li></ul><ul><li>Maximum no of respondents dealing in organic cotton textile products hold both GOTS & OE certificates & there are 35% of total respondents who holds only GOTS certificate & 2.5% of total respondents hold only OE certificate. </li></ul>
  84. 86. <ul><li>Price is the most important factor which is most considered at the time of purchase of raw material for organic cotton textile products. </li></ul><ul><li>Global demand, competition & increasing basket size has more influenced the respondents to enter into organic cotton textile products business. </li></ul><ul><li>Government should more regulate prices of organic cotton textile products, create awareness of eco-friendly products, encourage farming of organic cotton & make favourable policies so as to boost the sales of organic cotton textile products in the global textile market. </li></ul>
  85. 87. Conclusion and Suggestions
  86. 88. Conclusion <ul><li>Demand for organic cotton textile products is increasing in the global textile market because it is of better quality & skin friendly. </li></ul><ul><li>Very less percentage of organic cotton textile products are exported from Ludhiana. </li></ul><ul><li>High prices & availability of substitutes can lead to decrease in the demand of organic cotton textile products. </li></ul><ul><li>All the manufacturers & exporters hold valid operational certificate for manufacturing & trading organic cotton textile products. </li></ul>
  87. 89. <ul><li>Price, payment terms & quality factors are more considered at the time of procurement of raw material for organic cotton textile products. </li></ul><ul><li>Increasing global demand, high profit margin & increasing competition are attracting more people to enter into organic cotton textile products business. </li></ul><ul><li>There is less government support in promoting export of organic cotton textile products from Ludhiana. </li></ul>
  88. 90. Suggestions and Recommendations <ul><li>Awareness should be created among the consumer towards environment friendly & skin friendly products. </li></ul><ul><li>The manufacturers & exporters of organic cotton textile products should be more cautious while purchasing raw material & should consider lead time. </li></ul><ul><li>The manufacturers & exporters of organic cotton textile products should try to maintain strong relationship with the supplier so that their own supply should not get affected. </li></ul>
  89. 91. <ul><li>Government should regulate the prices of organic cotton textile products because products of organic cotton are more costly than its substitutes. </li></ul><ul><li>Government should provide incentives to the farmers to encourage organic farming. </li></ul><ul><li>There is more scope of export of organic cotton textile products in U.S. & European markets. </li></ul>
  90. 92. THANK YOU

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