project report on welspun textile LALIT MORYANI ,POSWAL JITENDRA


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project report on welspun textile LALIT MORYANI ,POSWAL JITENDRA

  1. 1. A Project rePort on industriAl visit At WelsPun textile ltd.SUBMITTED BY:- GUIDED BY:- Miss Dipty HumbalName:-LALIT J. MORYANI.Year:-F.Y B.B.ARoll no:- 10 BBA 20 SUBMITTED TO:- DNV INTERNATIONAL EDUCATION ACEDAMY, KRANTIGURU SHYAMJI KRISHNA VERMA KACHCHH UNIVERSITY, BHUJ Academic year (2010-2011)
  2. 2. WelsPun indiA liMited certiFicAteTHIS IS TO CERTIFY THATMr./Miss…………………………………………………………………Of …………………………Class, Roll No,…......................................Exam No,…………………………………………….has satisfactorilyCompleted his/her term workIn……………………………………………………………………forThe term ending in……………………………………… 2010 -2011Date :-………………..SignaturePreFAceDNV INTERNATIONAL EDUCATION ACADEMY Page 2
  3. 3. WelsPun indiA liMited This report is on the industrial visit conducted at WelspunIndia Ltd. (Textile). By the collage as it is included in the syllabus ofF.Y B.B.A. This is to fulfill the purpose of feeding the practical knowledgeto the students. By this report students could know that how anyindustry works in practice in day-to-day routine. We the students are very much thankful to the concernedfaculty Ms. Dipty Humbal for her kind effort to make out the properarrangement for industrial visit and preparation of this report. AcKnoWledMent I would like to say heartly thanks to Ms. Dipty Humbal.DNV INTERNATIONAL EDUCATION ACADEMY Page 3
  4. 4. WelsPun indiA liMited Who always gave valuable suggestions and guidance for completion of our project. She helped my to understand and remind important details of the project that we I would have completed. I also special thanks to my friends, Rajendra, Jitendra, Mahesh. indexDNV INTERNATIONAL EDUCATION ACADEMY Page 4
  5. 5. SR.NO. PARTICULARS PAGE NO. Industrial profile WelsPun indiA liMited 7 Company profile 111. General Information 14 1.1 Reasons for selection of location 16 1.2 Mission Statement, Vision of Company 16 1.3 Establishment Year, Market Share 18 1.4 Product Profile 192. Manufacturing/ Production/ Processing Department 23 2.1 No. of Employees in This Department 24 2.2 Production Process 24 2.3 Use of Technology or Machinery 36 2.4 Quality Control during Production Process 37 2.5 Raw Materials 38 2.6 Measures taken for Pollution Control 383. Purchasing And Store Department 39 3.1 Selection of Raw Material Suppliers 40 3.2 Storage of Raw Materials 40 3.3 Steps Taken for Safety of Raw Materials 404. Personal Department 41 4.1 Recruitment and selection 42 4.2 Sources of recruitment 42 4.3 Training welfare and motivation 43 4.4 Management level 45 4.5 Working hours 45 4.6 Attendance and identity card 465. Marketing Department 47 5.1 Umbrella of Products, Brand Name & Positioning 48 5.2 Segmentation and Targeting 48 5.3 Market Research 49 5.4 Marketing Strategy 506. Finance Department 51 6.1 Cash flow 52DNV INTERNATIONAL EDUCATION ACADEMY Page 5 6.2 Profit and loss A/C 53 6.3 Balance sheet 558. S.W.O.T ANALYSIS 58
  6. 6. WelsPun indiA liMited industriAl ProFileIndia Textile IndustryIndia Textile Industry is one of the leading textile industries in the world. Though waspredominantly unorganized industry even a few years back, but the scenario started changing afterthe economic liberalization of Indian economy in 1991. The opening up of economy gave themuch-needed thrust to the Indian textile industry, which has now successfully become one of thelargest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major 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% of thetotal 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 the otherancillary sectors. India textile industry currently generates employment to more than 35 millionpeople. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.vArious cAtegoriesDNV INTERNATIONAL EDUCATION ACADEMY Page 6
  7. 7. WelsPun indiA liMited Indian textile industry can be divided into several segments, some of which can be listed as below:• Cotton Textiles• Silk Textiles• Woolen Textiles• Readymade Garments• Hand-crafted Textiles• Jute and Coir India 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. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 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 of exports 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 decades:Year Area in lakh hectares Production in lakh bales of 170 kegs Yield kegs per hectare2000-01 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 94.39 315.00 567 DNV INTERNATIONAL EDUCATION ACADEMY Page 7
  8. 8. WelsPun indiA liMited2008-09 93.73 290.00 526 Though 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. textiles  lAst uPdAted: noveMber 2010.The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to thecountrys gross domestic product (GDP) and 17 per cent to the country’s export earnings,according to the Annual Report 2009-10 of the Ministry of Textiles.The industry provides direct employment to over 35 million people and is the second largestprovider of employment after agriculture.According to the Ministry of Textiles, the total cloth production increased by 10.2 per cent duringSeptember 2010 as compared to September 2009. The highest growth was observed in thepowerloom sector (13.2 per cent), followed by hosiery sector (9.1 per cent). The total clothproduction during April-September 2010 has increased by 2.1 per cent compared to the sameperiod of the previous year.As per the latest data released by the Directorate General of Commercial Intelligence andStatistics (DGCI&S), Kolkata, the total textile exports during April-July 2010 (provisional) werevalued at US$ 7.58 billion as against US$ 7.21 billion during the corresponding period of theprevious year, registering an increase of 5.20 per cent in rupee terms. The share of textile exportsin total exports was 11.04 per cent during April-July 2010, according to the Ministry of Textiles.DNV INTERNATIONAL EDUCATION ACADEMY Page 8
  9. 9. WelsPun indiA liMitedAs per the Index of Industrial Production (IIP) data released by the Central StatisticalOrganization (CSO), cotton textiles has registered a growth of 8.2 per cent during April-September 2010-11, while wool, silk and man-made fibre textiles have registered a growth of 2.2per cent while textile products including wearing apparel have registered a growth of 3 per cent.As per a Ministry of Textiles press release dated November 2, 2010, India has the potential toincrease its textile and apparel share in the world trade from the current level of 4.5 per cent to 8per cent and reach US$ 80 billion by 2020.technicAl textile segMent.According to the Ministry of Textiles, technical textiles are an important part of the textileindustry. The Working Group for the Eleventh Five Year Plan has estimated the market size oftechnical textiles to increase from US$ 5.29 billion in 2006-07 to US$ 10.6 billion in 2011-12,without any regulatory framework and to US$ 15.16 billion with regulatory framework. TheScheme for Growth and Development of Technical Textiles aims to promote indigenousmanufacture of technical textile to leverage global opportunities and cater to the domesticdemand.Further, the government is set to launch US$ 44.21 million mission for promotion of technicaltextiles, while the Finance Ministry has cleared setting up of four new research centers for theindustry, which include products like mosquito and fishing nets, shoe laces and medical gloves.As per a joint study of the Ministry of Textiles and an industry body, the global technical industryis estimated at US$ 127 billion and its size in India is pegged at US$ 11 billion.governMent initiAtive.According to the Ministry of Textiles, investment under the Technology Upgradation FundSchemes (TUFS) has been increasing steadily. During the year 2009-10, 1896 applications havebeen sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion hasbeen disbursed so far till the end of April, 2010. The Ministry of Textile has sanctioned a total ofUS$ 133 million under TUFS during September 2010. Moreover, in May 2010, the Ministry of Textiles informed a parliamentary panel that it proposes to allocate US$ 785.2 million for the modernization of the textile industry.World textile MArKetCurrently, the global textile and apparel trade is estimated to be over US$ 450 billion3.The globalmarket for textile trade includes yarns, fabrics, apparel and non-apparel finished products. WelsDNV INTERNATIONAL EDUCATION ACADEMY Page 9
  10. 10. WelsPun indiA liMitedpun estimates that the global home textiles market is around US$ 22- 27 billion, accounting for5-6% of the total global textile market. The home textiles market includes:1. Household textiles: Rugs, bed linen, table linen, bathroom and kitchen linen, etc.2. Furnishing textiles: Curtains, bedspreads and other furnishing articles for home interiors, etc. Post the expiry of the Agreement on Textiles and Clothing in 2005, Indias share of textileimports into the EU and the US has significantly increased. India is among the top3 leadingsuppliers of bed and bath linen in the EU4. India along with China and Pakistan is amongst thetop 3 suppliers of textile globally. coMPAny ProFile Wels pun India, the flagship company of Wels pun group was incorporated in theyear 1985. Wels pun India Ltd is the largest producer of Terry Towel in Asia and one of the 10leading in the world, possessing a state-of-the-art, fully integrated terry towel unit at Vapi,Gujarat. The Companys Plant with state-of-the-art technology, has got ISO 9002 accreditation.Being an environment friendly manufacturing process company, it has been awarded theOKOTEX certification. The Company transferred the Spinning division with its assets andliabilities to Wels pun Cotton Yarn Ltd. WIL continues to manufacture terry towels, but the yarnspinning is carried out by the new company - Wels pun Cotton Yarn Ltd (WCYL). The demergerinvolved equity swapping in the ratio of 7:3. For every 10 shares of WIL, shareholders wereissued seven shares of WIL and three shares of WCYL. In order to give impetus to the market share, the Company has embarked upon directmarketing. The Company has set up a wholly owned subsidiary in the name of Wels pun USAInc. in New York to focus on the US markets. It has started using Egyptian Cotton Yarn &American Pima Cotton in the manufacture of premium quality towels and above same wasregistered trademark user of Egyptian Cotton & Supima. The company has started directDNV INTERNATIONAL EDUCATION ACADEMY Page 10
  11. 11. WelsPun indiA liMitedmarketing by way of 100% subsidiary in USA and has made grounds for tie-ups with the best inthe market for floating the products in the market. The company chalked out a expansion plan bysetting up a 20 looms at an capital outlay of Rs. 35 corers which is under implementation and outof which 11 looms have been installed and production has commenced. With this expansion thecapacity has been enhanced to 10800 MTPA. The company has amalgamate Glofame Cotspin Industries Ltd with itself during May 2005. Accordingto the scheme of amalgamation, Wels pun India will issue 10 Equity Shares of Rs. 10/- each for every 33Equity Shares of Rs. 10/- each held by the shareholders of Glofame Cotspin Industries Ltd. The Schemebecame effective from 1st April 2004. During 2004-05 the company has set up a new plant at Anjar,Gujarat at an investment of Rs.5.75 Billion. This plant was set up for the new product category bed linenswith a capacity of 35 million meters per annum. Further the company also undertook a capitalexpenditure for construction of a commercial building and installation of processing equipments andDiesel Generator Sets at Vapi at a cost of Rs. 6002.8 million. The company has also commenced itscommercial production of Toweling facility in March 2005, the spinning facility commenced itscommercial production in June 2005. The bed sheeting facility has commissioned and scheduled tocommence its commercial production at full capacity by September 2005. The company has increasedthe installed capacity of Cotton Terry Towels by 12000 MTPA during 2004-05 and with this expansion thetotal installed capacity of Cotton Terry Towels has increased to 23500 MTPA.WhAt is WelsPun..? Welspun is a public company. Which provided the yarn and iron pipes business.Welspun India Ltd. (WIL) started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, asynthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally,Welspun India Limited emerged in the year 1995. Today, WIL is Asias largest and the 2nd largest Terry Towel producers in the World.Welspun’s facilities are located in India (Anjar and Vapi at Gujarat), Mexico, Portugal and in UK.The Company recently demerged its Sales & Marketing and Investment divisions to two separateCompanies - Welspun Global Brands Ltd. and Welspun Investments Ltd respectively.DNV INTERNATIONAL EDUCATION ACADEMY Page 11
  12. 12. WelsPun indiA liMited WIL is Asia s largest and amongst the top 2 Terry Towel producers in the World.Business is spread across continents and a distribution network in 32 countries, like U.S.A. , U.K,Canada , Australia , Italy , Sweden and France . 94% of the total products are exported. Offers a variety of Products like Towels in different sizes and qualities, Bed linen usingstate of the art technology and the best quality of Egyptian cotton, Bath Rugs and Bath Robes.Launched organic products utilizing the benefits of Soya, Seaweed, milk and Bamboo.Today Welspun City houses a state-of-the-art Line Pipe mill which is capable of producing SpiralArc Welded (SAW) Pipes – both Helical and Longitudinal pipes of the finest grades andinternational standards. This is in addition to the ERW pipes which it manufactures.DNV INTERNATIONAL EDUCATION ACADEMY Page 12
  13. 13. WelsPun indiA liMited The one-of-its-kind Textile Mill produces Terry Towels and Bed linen of the finest andthe best quality in the World. These products are mostly exported to the top retailers of the Globewhich includes most of the Fortune 100 Companies like Wal Mart, Target and J.C. Pennyamongst others. Wels pun City takes pride in housing one of the only three Plate-cum-coil mills of its kindin the World. This mill with a capacity of producing plates up to 4.5 meters width and Coil up to2.8 meters wide is all set to improve Wels pun operational capabilities.DNV INTERNATIONAL EDUCATION ACADEMY Page 13
  14. 14. WelsPun indiA liMited generAl inForMAtion coMPAny inForMAtionName :- WELSPUN TEXTILE INDIA LTD.Address :- Welspun City, Taluka Anjar, Kutch, Gujarat -370110 Tel: 02836-661111 Fax: 02836-279010 Email: Website: http://www.welspuntowels com.Chairman :- B.K. Goenka, (Chairman and Managing Director)Board of directors : - B.K. Goenka, R.R. Mandawewala, Mr. Murarilal Mittal,DNV INTERNATIONAL EDUCATION ACADEMY Page 14
  15. 15. WelsPun indiA liMited Mr. Atul Desai, Mr. Raj Kumar Jain, Mr. M.K. Tandon Auditors :- Price Waterhouse & Co-Company, Pannalal Silk Mills Compound Bankers :- Bank of Baroda, State Bank of Bikaner & Jaipur Company secretary : - Mr. Sunil Zore Asst. Company Secretary Units :- Vapi and Anjar Type of company :- Public company Type of Industry :- Textile Company Main promoters :- B.K. Goenka, R.R. Mandawewala, and Dipali Goenka Location :- International The visualization depicts the flight to greater heights at the same time remaining in touch with ground Our Logo realities. 1.1 reAsons The insignia is a creative visualization of a flying pair of sea gulls. For selecting this locAtion:-Located near two crucial ports, Kandla and Mundra on the Western coast of India; Kutch offersseveral location advantages besides its abundant natural resources. Easily available cotton andskilled manpower are a few to begin with. The two international ports and national highways areconnected with a well development bank and World Bank, Kutch is ready to emerge as anindustrial capital. DNV INTERNATIONAL EDUCATION ACADEMY Page 15
  16. 16. WelsPun indiA liMited1.2 Mission stAteMent, vision oF coMPAny:- Mission Statement  Our Mission We endeavor to reach the leadership position in each Segment / Sector of our Product /Service. We are committed to satisfy our customers by providing best quality and service, which givesthe highest value for money. We believe that employees are our most important asset through which we can reach the topin each category of our Product / Service. Therefore, we will emphasize on their continuousimprovement through upgrading relevant knowledge and training. We commit ourselves to continuous growth, so as to fulfill the aspirations of our Customers,Employees and Shareholders vision oF coMPAny.  Vision – By the year 2012 Welspun India Limited envisions to become a fully integrated home textile Company (Bedand Bath) – and provide one-stop-shop solution to customers across the World. Welspun is the leader in terms of embracing new technologies, product innovations,market intelligence etc. and offering competitive end-to-end solutions to customers at globallycompetitive prices with effective supply chain management. It aims to become the preferredpartner in Home Textiles for any global initiative. It targets Cost Optimization and aims to alsobecome the lowest cost producer of home textiles globally. We aim to…DNV INTERNATIONAL EDUCATION ACADEMY Page 16
  17. 17. WelsPun indiA liMited Emerge as a global leader… Preferred by every home serve… With passion grow…. @ speed innovate… With quality excel… with ethics delighting all stakeholders… We are… WELSPUN our Motto. Dare To Commit It is the vigour and commitment of all at Welspun that has brought it so far and helped to reachthe zenith of success in whichever business they are in. It is through this quality that the motto ofWelspun is ‘Dare to Commit’. Welspun doesn’t create products, it engineers satisfaction. WithinWelspun, quality of product and service is of paramount importance. Welspuns state-of-artmanufacturing facilities reaffirm world-class quality products and nothing less. Each and everyproject is treated as an opportunity and every achievement as a platform to set new goals. Thisstrategy has enabled Welspun to have delighted customers in 50 Countries. “We dare to commit and deliver on our promises.”1.3 estAblishMent yeAr, MArKet shAre. • Establishment Year :- Welspun India Ltd. (WIL) started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally, Welspun India Limited emerged in the year 1995. • Market Share: - Market, which contributes 30% of home textile demand from 17% to 24%DNV INTERNATIONAL EDUCATION ACADEMY Page 17
  18. 18. WelsPun indiA liMitedIn Terry towel segment and from 15% to 20% in cotton sheet segment over 2003-2008. We feelIndia to be preferred supplier for international vendors therefore increasing its market sharefurther. Being largest exporter we expect Welspun to be major beneficiary of this scenario, whichaccrues global share: After witnessing 1.4% demand slump in 2008, $34bn home textile industryis back on revival path. India is the Largest beneficiary of the consolidation in the Western worldas home Textile manufacturing capacities in those counties have shrunk at a CAGR of 25% over2003-2009. India has increased its market share in the US around 90% topline through exports.1.4 Product ProFile  Product ProFile : - WelsPun Products Welspun has a wide ranging portfolio of home textile products comprising terry towels,bed sheets, bath robes, bath rugs, basic bedding and decorative bedding. 1. terry toWel Welspun manufactures terry towels in different shapes and sizes. Some of the towels are intended for use in a particular setting, such as beach towels, or for a particular purpose, such as kitchen towels and baby hood towels, or in sizes convenient for a special use, such as hand towels, face towels and bath sheets. Being woven out of 100% cotton yarn, these fabrics acquire significant hygroscopic property, which is a prime reason for using terry fabrics in home textiles in general and towels and bath robes in particular. 2. bed sheets Wels pun manufactures bed sheets in different shapes and sizes based on different bed sizes and mattress depth. Our bed sheets are made from cotton or various blends, such as polyester cotton, cotton bamboo and cotton eucalyptus. The main reason for using blends is the cost and ease of maintenance of the product by the consumer.DNV INTERNATIONAL EDUCATION ACADEMY Page 18
  19. 19. WelsPun indiA liMited 3. bAth robes Wels pun manufactures bath robes in different designs, shades and weights as per customer requirements. It has the ability to make piece dyed, yarn dyed, jacquard and velour bath robes. The bath robes are manufactured in different styles such as “kimono", "hood", "zipper", and "shawl". Welspun specializes in the manufacture of a specific category of bath robes called “wraps". It also provides embellishments, embroidery and prints as per customer requirements. The fabric for our bath robes is similar to the fabric of our towels, which enables us to leverage the product development and innovation undertaken in the production of terry towels. 4. bAth rugs Wels pun is able to make rugs of various designs using its multi-level cut loop machine to create multiple fiber lengths within a rug. Our bath rugs are generally made of cotton, nylon or micro fiber and can be latex-backed, depending on consumer preferences. Based on customer requirements, we make rugs of different sizes and weights including reversible rugs. 5. bAsic bedding And decorAtive bedding Our basic bedding products includes mattress pads, blown and garneted pillows and basiccomforters while our decorative bedding products includes comforters, bed skirts, shams,decorative pillows and bolsters. Most of these products are made of polyester fiber fill wadding.The fill we use for each product varies according to customer requirements. Since the decorativeproducts provide the look and feel to the bedroom, the products are design-oriented. 6. " vAlue Added" Products In addition to these products, Welspun also manufactures "value added" products such as"quick dry towels" and "the perfect sheet". Welspun believes that these product offerings areexamples of how consumer research-driven innovation can enhance functionality in its productofferings.DNV INTERNATIONAL EDUCATION ACADEMY Page 19
  20. 20. WelsPun indiA liMited terry toWel bed sheets.DNV INTERNATIONAL EDUCATION ACADEMY Page 20
  21. 21. WelsPun indiA liMited bAth robes bAth rugs.DNV INTERNATIONAL EDUCATION ACADEMY Page 21
  22. 22. WelsPun indiA liMitedbAsic bedding And decorAtive bedding.2. MAnuFActuringAnd Producting ProcessDNV INTERNATIONAL EDUCATION ACADEMY Page 22
  23. 23. WelsPun indiA liMited2.1 no. oF eMPloyees in this dePArtMent:- The Number Of Employees In The Manufacturing And Production Department Are 5 –6Thousand. They work in the three shifts.2.2 Production Process:-there Are Five stAges.1 cultivAting And hArvesting2 PrePArAtory Processes3 sPinning4 WeAving5 Finishing 1. cultivAting And hArvesting Cotton is grown anywhere with long, hot dry summers with plenty of sunshine and lowhumidity. Indian cotton, gossypium arboreum, is finer but the staple is only suitable for handprocessing. American cotton, gossypium hirsutum, produces the longer staple needed for machineproduction. Planting is from September to mid November and the crop is harvested betweenMarch and May. The cotton bolls are harvested by stripper harvesters and spindle pickers thatDNV INTERNATIONAL EDUCATION ACADEMY Page 23
  24. 24. WelsPun indiA liMitedremove the entire boll from the plant. The cotton ball is the seed pods of the cotton plant, attachedto each of the thousands of seeds are fibers about 2.5 cm long. • ginning The seed cotton goes in to a Cotton gin. The cotton gin separates seeds and removes the"trash" (dirt, stems and leaves) from the fiber. In a saw gin, circular saws grab the fiber and pull itthrough a grating that is too narrow for the seeds to pass. A roller gin is used with longer staplecotton. Here a leather roller captures the cotton. A knife blade, set close to the roller, detaches theseeds by drawing them through teeth in circular saws and revolving brushes which clean themaway. The ginned cotton fiber, known as lint, is then compressed into bales which are about 1.5 mtall and weigh almost 220 kg. Only 33% of the crop is usable lint. Commercial cotton is priced byquality, and that broadly relates to the average length of the staple, and the variety of the plant.Longer staple cotton (2½ in to 1¼ in) is called Egyptian, medium staple (1¼ in to ¾ in) is calledAmerican upland and short staple (less than ¾ in) is called Indian. The cotton seed is pressed into cooking oil. The husks and meal are processed into animalfeed, and the stems into paper. • issues Cotton is farmed intensively and uses large amounts of fertilizer and 25% of the world’sinsecticide. Native Indian variety was rainwater fed, but modern hybrids used for the mills needirrigation, which spreads pests. The 5% of cotton-bearing land in India uses 55% of all pesticidesused in India. Before mechanization, cotton was harvested manually and this unpleasant task wasdone by the lower castes and in the United States by slaves of African origin 2. Processes- PrePArAtion oF yArn • oPening And cleAningDNV INTERNATIONAL EDUCATION ACADEMY Page 24
  25. 25. WelsPun indiA liMited Platt Bros. Picker Cotton mills get the cotton shipped to them in large, 500 pound bales. When the cotton comesout of a bale, it is all packed together and still contains vegetable matter. The bale is broken openusing a machine with large spikes. It is called an Opener. In order to fluff up the cotton andremove the vegetable matter, the cotton is sent through a picker, or similar machines. A pickerlooks similar to the carding machine and the cotton gin, but is slightly different. The cotton is fedinto the machine and gets beaten with a beater bar, to loosen it up. It is fed through variousrollers, which serve to remove the vegetable matter. The cotton, aided by fans, then collects on ascreen and gets fed through more rollers till it emerges as a continuous soft fleecy sheet, known asa lap. • blending, Mixing & scotching Scotching refers to the process of cleaning cotton of its seeds and other impurities. Ascotching machine for cotton was first invented in 1797, but didnt get much attention until it wasintroduced in Manchester in 1808 or 1809. By 1816 it had been generally adopted. The scotchingmachine worked by passing the cotton through a pair of rollers, and then striking it with iron orsteel bars called beaters. The beaters, which turn very quickly, strike the cotton hard and knockthe seeds out. This process is done over a series of parallel bars so as to allow the seeds to fallthrough. At the same time a breeze is blown across the bars, which carries the cotton into a cottonchamber. • cArdingDNV INTERNATIONAL EDUCATION ACADEMY Page 25
  26. 26. WelsPun indiA liMited Carding machine Carding: the fibers are separated and then assembled into a loose strand (sliver or tow) atthe conclusion of this stage. The cotton comes off of the picking machine in laps, and is then taken to cardingmachines. The carders line up the fibers nicely to make them easier to spin. The carding machineconsists mainly of one big roller with smaller ones surrounding it. All of the rollers are covered insmall teeth, and as the cotton progresses further on the teeth get finer (i.e. closer together). Thecotton leaves the carding machine in the form of a sliver; a large rope of fibers. Note: In a wider sense Carding can refer to these four processes: Willowing- loosening thefibers; Lapping- removing the dust to create a flat sheet or lap of cotton; Carding- combing thetangled lap into a thick rope of 1/2 in diameter, a sliver; and Drawing- where a drawing framecombines 4 slivers into one- repeated for increased quality. • Combing is optional, but is used to remove the shorter fibers, creating a stronger yarn. A Combing machine • drAWingDNV INTERNATIONAL EDUCATION ACADEMY Page 26
  27. 27. WelsPun indiA liMited The fibers are straightened several slivers are combined. Each sliver will have thin and thick spots, and by combining several slivers together a more consistent size can be reached. Since combining several slivers produces a very thick rope of cotton fibers, directly after being combined the slivers are separated into roving’s. These roving’s (or slubbings) are then what are used in the spinning process.Generally speaking, for machine processing, a roving is about the width of a pencil. • Drawing frame: Draws the strand out • Slubbing Frame: adds twist, and winds on to bobbins • Intermediate Frames: are used to repeat the slubbing process to produce a finer yarn. • Roving frames: reduces to a finer thread, gives more twist, makes more regular and even in thickness, and winds on to a smaller tube. 3. sPinning- yArn MAnuFActure • sPinningThe spinning machines take the roving thins it and twists it, creating yarn which it winds onto abobbin.In mule spinning the roving is pulled off a bobbin and fed through some rollers, which are feedingat several different speeds. This thins the roving at a consistent rate. If the roving was not aconsistent size, then this step could cause a break in the yarn, or could jam the machine. The yarnis twisted through the spinning of the bobbin as the carriage moves out, and is rolled onto a cop asthe carriage returns. Mule spinning produces a finer thread than the less skilled ring spinning.The mule was an intermittent process, as the frame advanced and returned a distance of 5ft.It wasthe descendant of 1779 Crompton device. It produces a softer less twisted thread that was favoredfor fines and for weft.DNV INTERNATIONAL EDUCATION ACADEMY Page 27
  28. 28. WelsPun indiA liMitedThe ring was a descendant of the Arkwright water Frame 1769. It was a continuous process; theyard was coarser, had a greater twist and was stronger so was suited to be warp. Ring spinning isslow due to the distance the thread must pass around the ring, other methods have beenintroduced. These are collectively known as Break or Open-end spinning.Sewing thread was made of several threads twisted together, or doubled. • checKing This is the process where each of the bobbins is rewound to give a tighter bobbin. • Folding And tWisting Plying is done by pulling yarn from two or more bobbins and twisting it together, in theopposite direction that in which it was spun. Depending on the weight desired, the cotton may ormay not be plied, and the number of strands twisted together varies. • gAssing Gassing is the process of passing yarn, as distinct from fabric very rapidly through a series ofBunsen gas flames in a gassing frame, in order to burn off the projecting fibers and make thethread round and smooth and also brighter. Only the better qualities of yarn are gassed, such asthat used for voiles, poplins, venetians, gabardines, many Egyptian qualities, etc. There is a lossof weight in gassing, which varies about 5 to 8 per cent., so that if a 2/60s yarn is required 2/56swould be used. The gassed yarn is darker in shade afterwards, but should not be scorched.Mule spinningRing spinningDNV INTERNATIONAL EDUCATION ACADEMY Page 28
  29. 29. WelsPun indiA liMitedMeasurements • Cotton Counts: The number of pieces of thread, 840 yards long needed to make up 1 lb weight. 10 count cotton means that 10x840 yd weighs 1 lb. This is coarser than 40 count cotton where 40x840 yards are needed. In the United Kingdom, Counts to 40s are coarse (Oldham Counts), 40 to 80s are medium counts and above 80 is a fine count. In the United States ones to 20s are coarse counts. • Hank: A length of 7 leas or 840 yards • Thread: A length of 54 in (the circumference of a warp beam) • Bundle: Usually 10 lb • Lea: A length of 80 threads or 120 yards • Denier: this is an alternative method. It is defined as a number that is equivalent to the weight in grams of 9000m of a single yarn. 15 denier is finer than 30 denier. • Tex: is the weight in grams of 1 km of yarn. • The worsted hank is only 560 yd 4. WeAving-FAbric MAnuFActure The weaving process uses a loom. The lengthways threads are known as the warp, and thecross way threads are known as the weft. The warp which must be strong needs to be presented toloom on a warp beam. The weft passes across the loom in a shuttle, that carries the yarn on a pirn.These pirns are automatically changed by the loom. Thus, the yarn needs to be wrapped onto abeam, and onto pirns before weaving can commence.DNV INTERNATIONAL EDUCATION ACADEMY Page 29
  30. 30. WelsPun indiA liMited • Winding After being spun and plied, the cotton thread is taken to a warping room where the windingmachine takes the required length of yarn and winds it onto warpers bobbins • WArPing or beAMing A Wrapper Racks of bobbins are set up to hold the thread while it is rolled onto the warp bar of a loom.Because the thread is fine, often three of these would be combined to get the desired thread count. • sizing Slasher sizing machine needed for strengthening the warp by adding starch to reduce breakageof the yarns . • drAWing in, looMing The process of drawing each end of the warp separately through the dents of the reed and theeyes of the healds, in the order indicated by the draft. • Pirning (Processing the WeFt) Pirn winding frame was used to transfer the weft from cheeses of yarn onto the pirns thatwould fit into the shuttle • WeAvingDNV INTERNATIONAL EDUCATION ACADEMY Page 30
  31. 31. WelsPun indiA liMited At this point, the thread is woven. Depending on the era, one person could manage anywherefrom 3 to 100 machines. In the mid nineteenth century, four was the standard number. A skilledweaver in 1925 would run 6 Lancashire Looms. As time progressed new mechanisms were addedthat stopped the loom any time something went wrong. The mechanisms checked for such thingsas a broken warp thread, broken weft thread, the shuttle going straight across, and if the shuttlewas empty. Forty of these Northrop Looms or automatic looms could be operated by one skilledworker.The three primary movements of a loom are shedding, picking, and beating-up. • shedding: The operation of dividing the warp into two lines, so that the shuttle can pass between these lines. There are two general kinds of sheds-"open" and "closed." Open Shed- The warp threads are moved when the pattern requires it-from one line to the other. Closed Shed the warp threads are all placed level in one line after each pick. • PicKing: The operation of projecting the shuttle from side to side of the loom through the division in the warp threads. This is done by the Over pick or under pick motions. The over pick is suitable for quick-running looms, whereas the under pick is best for heavy or slow looms. • beAting-uP: The third primary movement of the loom when making cloth, and is the action of the reed as it drives each pick of weft to the fell of the cloth. A Draper loom in textile museum, Lowell, MassachusettsDNV INTERNATIONAL EDUCATION ACADEMY Page 31
  32. 32. WelsPun indiA liMited The Lancashire Loom was the first semi-automatic loom. Jacquard looms and Dobbylooms are looms that have sophisticated methods of shedding. They may be separate looms, ormechanisms added to a plain loom. A Northrop Loom was fully automatic and was massproduced between 1909 and the mid 1960s. Modern looms run faster and do not use a shuttle:there are air jet looms, water jet looms and rapier looms.  MeAsureMents • Ends and Picks: Picks refer to the west, ends refer to the warp. The coarseness of the cloth can be expressed as the number of picks and ends per quarter inch square, or per inch square. Ends is always written first. For example: Heavy domestics are made from coarse yarns, such as 10s to 14s warp and weft, and about 48 ends and 52 picks. 5. Finishing- Processing oF textiles The grey cloth, woven cotton fabric in its loom-state, not only contains impurities, includingwarp size, but requires further treatment in order to develop its full textile potential. Furthermore,it may receive considerable added value by applying one or more finishing processes. 1. design Depending on the size that has been used, the cloth may be steeped in a dilute acid and thenrinsed, or enzymes may be used to break down the size. 2. scouring Scouring, is a chemical washing process carried out on cotton fabric to remove natural waxand non-fibrous impurities (e.g the remains of seed fragments) from the fibers and any addedsoiling or dirt. Scouring is usually carried in iron vessels called kiers. The fabric is boiled in analkali, which forms a soap with free fatty acids. (saponification). A kier is usually enclosed, so thesolution of sodium hydroxide can be boiled under pressure, excluding oxygen which woulddegrade the cellulose in the fiber. If the appropriate reagents are used, scouring will also removesize from the fabric although desizing often precedes scouring and is considered to be a separateDNV INTERNATIONAL EDUCATION ACADEMY Page 32
  33. 33. WelsPun indiA liMitedprocess known as fabric preparation. Preparation and scouring are prerequisites to most of theother finishing processes. At this stage even the most naturally white cotton fibers are yellowish,and bleaching, the next process, is required. 3. bleAching Bleaching improves whiteness by removing natural coloration and remaining trace impuritiesfrom the cotton; the degree of bleaching necessary is determined by the required whiteness andabsorbency. Cotton being a vegetable fiber will be bleached using an oxidizing agent, such asdilute sodium hypochlorite or dilute hydrogen peroxide. If the fabric is to be dyed a deep shade,then lower levels of bleaching are acceptable, for example. However, for white bed sheeting’s andmedical applications, the highest levels of whiteness and absorbency are essential. 4. MercerizingA further possibility is mercerizing during which the fabric is treated with caustic soda solution tocause swelling of the fibers. This results in improved luster, strength and dye affinity. Cotton ismercerized under tension, and all alkali must be washed out before the tension is released orshrinkage will take place. Mercerizing can take place directly on grey cloth, or after bleaching.Many other chemical treatments may be applied to cotton fabrics to produce low flammability,crease resist and other special effects but four important non-chemical finishing treatments are: 5. singeing Singeing is designed to burn off the surface fibers from the fabric to produce smoothness. Thefabric passes over brushes to raise the fibers, then passes over a plate heated by gas flames. 6. rAising Another finishing process is raising. During raising, the fabric surface is treated with sharpteeth to lift the surface fibers, thereby imparting hairiness, softness and warmth, as in flannelette.DNV INTERNATIONAL EDUCATION ACADEMY Page 33
  34. 34. WelsPun indiA liMited 7. cAlendAring Calendaring is the third important mechanical process, in which the fabric is passed betweenheated rollers to generate smooth, polished or embossed effects depending on roller surfaceproperties and relative speeds. 8. shrinKing (sAnForizing) Main article: Sanforization finally, mechanical shrinking (sometimes referred to assanforizing), whereby the fabric is forced to shrink width and/or lengthwise, creates a fabric inwhich any residual tendency to shrink after subsequent laundering is minimal. 9. dyeing Finally, cotton is an absorbent fiber which responds readily to coloration processes. Dyeing,for instance, is commonly carried out with an anionic direct dye by completely immersing thefabric (or yarn) in an aqueous dyebath according to a prescribed procedure. For improved fastnessto washing, rubbing and light, other dyes such as vats and reactives are commonly used. Theserequire more complex chemistry during processing and are thus more expensive to apply. 10.Printing Printing, on the other hand, is the application of color in the form of a paste or ink to thesurface of a fabric, in a predetermined pattern. It may be considered as localized dyeing. Printingdesigns on to already dyed fabric is also possibleeconoMic, environMentAl And PoliticAl consequences oF cottonMAnuFActure. The growth of cotton is divided into two segments i.e. organic and genetically modified.Cotton crop provides livelihood to millions of people but its production is becoming expensivebecause of high water consumption, use of expensive pesticides, insecticides and fertilizer. GMproducts aim to increase disease resistance and reduce the water required. The organic sector wasworth $583 million. GM cotton, in 2007, occupied 43% of cotton growing areas. Theconsumption of energy in form of water and electricity is relatively high, especially in processesDNV INTERNATIONAL EDUCATION ACADEMY Page 34
  35. 35. WelsPun indiA liMitedlike washing, de-sizing, bleaching, rinsing, dyeing, printing, coating and finishing. Processing istime consuming. The major portion of water in textile industry is used for wet processing oftextile (70 per cent). Approximately 25 per cent of energy in the total textile production like fiberproduction, spinning, twisting, weaving, knitting, clothing manufacturing etc. is used in dyeing.About 34 per cent of energy is consumed in spinning, 23 per cent in weaving, 38 per cent inchemical wet processing and five per cent in miscellaneous processes. Power dominatesconsumption pattern in spinning and weaving, while thermal energy is the major factor forchemical wet processing. The techniques used to process these fibers in yarn are essentially the same as with naturalfibers, modifications have to be made as these fibers are of great length, and have no texture suchas the scales in cotton and wool that aid meshing. 2.3 use oF technology or MAchinery: EDI & RFID in Welspun USA. SAP R/3 - Integrates operations, marketing supply chain. Reverse auction HNS. Welspun is a leading practitioner of safety and have received the safety certification of OHSAS - 18001 (HSE) and the ISO 14001 for environment consciousness. Preserving the ecological balance - Effluent treatment plants and the Waste dispersal plants located in and around the Welspun City. Integration with Customers Market Intelligence: Conducts Grid analysis of top retailers with respect to Product range. Ongoing Market Research for evaluation of:DNV INTERNATIONAL EDUCATION ACADEMY Page 35
  36. 36. WelsPun indiA liMited F as t M o vi n g It e m s b es t se lli n g S K U s. P ro fi t m ar giDNV INTERNATIONAL EDUCATION ACADEMY Page 36
  37. 37. WelsPun indiA liMited 2.4 quAlity control during Production Process: - Quality control is the more traditional way that business have used to manage quality. Qualitycontrol is concerned with checking and reviewing work that has been done. Under traditionalquality control, inspection of products and services takes place during and at the end of operationprocess.There are three main points during the production process when inspection is performed: 1. When raw materials are received prior to entering production. 2. Whilst the products are going through production process. 3. When products are finished – inspection or testing takes place before products are dispatched to customers.The problem with this sort of inspection is that it doesn’t work very well!There are several problems with inspection during traditional quality control: 1. The inspection process does not add any “value”. If there were any guarantees that no defective output would be produced , then there would be no need for an inspection process in the first place. 2. Inspection is costly , in terms of both tangible and intangible cost. For example material, labour, time, employee morale, customer goodwill and lost sales. 3. It is sometime done to late in the production process. This results into defective and non acceptable actually being received by customers. 4. It is usually done by wrong people – e.g. by a separate “quality control inspection team” rather than by the workers themselves. 5. Inspection is not often compatible with more modern production techniques. 6. Working capital tied up in stock which cannot be sold.DNV INTERNATIONAL EDUCATION ACADEMY Page 37
  38. 38. WelsPun indiA liMited 7. This is often disarrangement as to what constitutes a “quality products”. For example to meet quotas , inspectors may approve goods that don’t meet 100% confirmation giving the message to workers that it doesn’t matter if their work is a bit sloppy.As result of above problems , many businesses focused their efforts on improving quality byimplementing quality management techniques which emphasizes the role of quality assurance.As Deming wrote:“ Inspection with the aim of finding bad ones and throwing them out is too late, inefficiently andcostly. Quality comes not from inspection but from improvement of the process.”2.5 rAW MAteriAls: - The First step in production process is of Buying Cotton from theother firms they Import Cotton from many firms all over the world. Specially Nepal, Pakistan,China etc. From India they import cotton from SANKAR firm. The Cotton which has beenbrought from these areas has been in much quantity & has been refreshed or cleaned by otherheavy machines with proper under guidance of the supervisors. The Cotton which is brought isloaded in Spleasles. Cleaning has been done with the help of employees.2.6 MeAsures tAKen For Pollution control: - Welspun City is additionally a primeexample of continuous efforts of protecting the environment with a strong emphasis on a-forestation. The township is in the process of turning itself in the creation of the largest green beltin the area, with a veritable forest of about 500,000 trees which includes the Jatropha tree, thedrought resistant perennial whose seeds is used to produce bio-diesel.DNV INTERNATIONAL EDUCATION ACADEMY Page 38
  39. 39. WelsPun indiA liMited3.PurchAseAndstore dePArtMent3.1 selection oF rAW MAteriAl suPPliers:  selF suFFiciency oF rAW MAteriAlsDNV INTERNATIONAL EDUCATION ACADEMY Page 39
  40. 40. WelsPun indiA liMited India has a vast pool of raw materials for textiles, both natural and man-made11.Cottontextiles and clothing account for approximately one-third of global textile trade. China, India andUS accounts for approximately two thirds of global cotton production. Further, India is a countrywhich has a surplus cotton production as a result of its increased productivity in the last fewyears. Other Asian countries such as China, Bangladesh, Pakistan, Thailand and Indonesia are netimporters of cotton. Indias self sufficiency in cotton provides it a strong competitive advantage inglobal textile and clothing trade3.2 storAge oF rAW MAteriAls: - Material is mainly stored in a huge warehouses which are situated at near the production plant so it can be easily transported for processing in the plant3.3 stePs tAKen For sAFety oF rAW MAteriAls: - Industrial center is your comprehensive source for safety and environmental product and supplier information. You can view the latest safety and environmental product information, articles, events, research and associations. Also search our Online Supplier Directory, which is broken down into alarms, anti-fatigue, Emergency response, ergonomics, eye protection, fall protection, foot protection, gates, hand protection, head protection, hearing protection, lockout, tag out, machine guarding, mats, medical equipment, first aid, monitoring equipment, protective clothes, rails, respiratory protection and safety software subcategories. It’s all here to help you streamline your buying process, increase productivity, save time and save money.DNV INTERNATIONAL EDUCATION ACADEMY Page 40
  41. 41. WelsPun indiA liMited 4.PersonAl dePArtMentDNV INTERNATIONAL EDUCATION ACADEMY Page 41
  42. 42. WelsPun indiA liMited Wels Pun city , A 2500 Acre toWnshiP set uP in the heArt oF AnjAr is the bAcKbone oF Wels Pun. it WAs estAblished in 2004 With An initiAl investMent oF rs. 13,500 Million.4.1 recruitMent And selection: - The process of recruitment has been undertaken for the appointment of theemployees. They give advertisement in newspapers or magazine or a journal with full informationlike person required for the particular post with special knowledge & Experience in that field, &then select accordingly. External Forces Internal Forces  Supply and  Recruitment Demand Policy  Unemployeemen  HRP t rate Recruitment  Size of the  Labour Market firm  Image  Cost  Political and  Growth and Social expansion4.2 sources oF recruitMent : - The Welspun Company specially prefer to use the direct method ofrequirement. So the main direct methods are as follows:-WAiting list: -DNV INTERNATIONAL EDUCATION ACADEMY Page 42
  43. 43. WelsPun indiA liMited This company maintains the application files in which applications received from casual applicants are kept pending. Similarly when the number of candidates found to be fit for job exceeds the number of vacancies, surplus candidates are also kept on waiting list. Such records are useful whenever the vacancies arise.(i) Friends & relAtives oF Present eMPloyees:- This company prefer to use to get recommendation from their employees, the names of their friends & relatives for employment. This method is the convenient method for labour supply & helpful also in maintain goodwill and moral of the present employees. When Experiences employees are not available through other sources, companies resort to advertising. In this case, the most appropriate newspaper or journal can be used for the post concerned.4.3 WelFAre, MotivAtion oF eMPloyees And trAining.  Welfare and Motivation of Employees:- The Company provides the safety for the workers like as Helmet, Mask, Hand Glows etc.Company also not forgets about the Employees Welfare. It provides In its sincere efforts toimprove the lives of children “Welspun Vidya Mandir”, a school up to class 10, affiliated underthe Central board of Secondary Education, India (CBSE) and “Welspun Anganvadi”, a pre-primary school for children has been set up for children of Welspun employees and local families.It also provides the Canteen facility, Medical Facility, and also provides the Insurance Facility. 1. Fair wages or salary has been provided to the employees working in various departments. 2. They has been provided good working condition, like airy area with proper ventilation, noise control instrument etc. 3. Employees’ safety measures have also been taken care like providing mask at a non- conditioning department. 4. Helmets & Shoes has been given to the people for their safety. 5. Big Canteen facility has been given to the employees. 6. Proper & with regular time gap Interval has been made in various departments.DNV INTERNATIONAL EDUCATION ACADEMY Page 43
  44. 44. WelsPun indiA liMited 7. Quarters has been given to the people who are working in the top level of the company. 8. Regular PF has been taken from the employee’s salary for the future welfare. 9. BUS service has been provided to the employees who are living far from the Industry.MotivAtionAl Policy oF the coMPAny:- o PROVIDENT FUND o BONUS o RETIREMENT BENEFIT o MEDICAL FACILITY o EMPLOYEMENT INSURANCE SCHEME o CHILD EDUCATION SCHEME  trAining oF eMPloyees. The employees which are selected & then they had been given the trainingaccording to the work handled over to them like training to machine operators who are standingover the machine, training to the person who checks the pieces produced, supervisors are alsogiven training to see that all the product had been finished without any default. There is various other training like give knowledge of economics, human relation,& Administration to the employees working over there. 4.4 MAnAgeMent levels: -DNV INTERNATIONAL EDUCATION ACADEMY Page 44
  45. 45. WelsPun indiA liMited Management Level:- Top Level Middle Level Labour Level Director Labour CEO Welspun ] (Contractor) 4.5 WorKing hoursDaily three shift of 8 hours per shiftFirst shift 08:00 am to 04:00 pmSecond shift 04:00 pm to 12:00 amThird shift 12:00 am to 08:00 amIn between every shift they provide recess of one 1 hour  Flexi timing policy (for corporate office) o This policy is provided to staff members on need basis and will be considered on case to case basis. o The flexibility provided above should be used in consultation with immediate superior without affecting the work and with a prior sanction from HR department. All the employees are however required to be present in the office during the core time mentioned above.DNV INTERNATIONAL EDUCATION ACADEMY Page 45
  46. 46. WelsPun indiA liMited4.6 Attendence And identity cArdThe company provides identification cum punching card. Apart from the company’s name andaddress, the card has necessary details like employees’ name and code no. etc. This card is thepurpose for identity and security. In case of any damage or loss of the card by any employeehe/she will have to inform HR Dept. so that a duplicate card will be issued on extra charge.In case any employee resigns or terminated from the service company. He/she has to return thecard to HR Dept.DNV INTERNATIONAL EDUCATION ACADEMY Page 46
  47. 47. WelsPun indiA liMited 5MArKeting dePArtMent5.1uMbrellA oF Products, brAnd nAMe & Positioning In Welspun there is one of the kind textile mills which produce 2 products they are:-DNV INTERNATIONAL EDUCATION ACADEMY Page 47
  48. 48. WelsPun indiA liMited (1) Terry Towels. (2) Bed Linen. These 2 products are the finest & the Best quality in the world. These products are mostly exported to the top retailers of the Globe which includes most of the Fortune 100 companies like Wal-Mart, Target & P.C Penny almost others.5.2 segMentAtion And tArgeting  Warehouse & Dispatch:- All the finished products have been stored in warehouse & have been dispatchedat the time of requirement. These all products has been exported to the other countries by methodof transporting. In this plant generally 24 tons product has been made in 24 hours. Welspungenerally does not Export their product in the general market but they export their product inUSA, JAPAN, CHINA, and various other countries of the world.5.3 MArKet reseArch, MArKeting strAtegy A. MArKet structure  consuMers. A majority of purchases in the home textiles segment are made for replacement purposesand are discretionary in nature. The purchase of home textiles, therefore, gets deferred duringDNV INTERNATIONAL EDUCATION ACADEMY Page 48
  49. 49. WelsPun indiA liMitedperiods of economic slowdown and a subsequent economic upturn tends to be steeper than thenormal rate of consumption growth. Consumption patterns of households vary substantiallyacross geographies due to differences in culture, traditions and tastes. In the household textilessector, Welspun believes that brand awareness among consumers is limited, as can be derivedfrom the high market shares for interior department stores, specialty chains and variety chainsoperating with their own private label and textile discounters, while super and hyper markets sellunknown or fancy brand names. Importers purchase products from manufacturers abroad and we estimate that theygenerally add a 30-40% mark-up to cover commissions, credit risk, after-sales service and the costof carrying a local inventory to meet small orders. In contrast to the agent, this importer holds hisown stocks at his own risk.  coMPetition. Welspuns efforts to sharpen competitive edge Welspun has followed its defined strategy, improved product mix and optimizedutilization of assets. It has been successful in the optimization of raw material cost and majorinput cost. Welspun is further expanding/modernizing its manufacturing capacities with an objectiveto attain increase in volume with lower overhead, better quality and replacement /up gradation ofold technology with the world class technology. Welspun targets cost optimization with an aim to become the lowest cost producer ofhome textiles globally and further aims to become the preferred partner in home textiles for globalinitiative with its business model. 5.4 MArKet strAtegy  overvieW oF the indiAn econoMy  indiAs gdP groWth trendDNV INTERNATIONAL EDUCATION ACADEMY Page 49
  50. 50. WelsPun indiA liMitedDespite a challenging global economic environment, Indias GDP grew at 7.2% in FY10,while themanufacturing sector grew at 8.9%. It is expected to grow further at 8.5% inFY118 as per theEconomic Survey of India.  gdP groWth trend in indiA The overall macro-economic trends have resulted in rising per capita income, increasedconsumerism and higher consumer spending. A large proportion of this higher consumer spendingis towards textiles, apparel and lifestyle products. The chief reason for this has been Indiaschanging demographic profile. The disposable income in India is also expected to increasesignificantly over the next decade. Welspun believes that the above factors strongly suggest anongoing structural shift in the demand pattern for textiles within the domestic markets. Thisindicates that the textile industry is on the threshold of higher consumer demand and consequentlyhigher growth. Indias economy is on the fulcrum of an ever-increasing growth curve. With positiveindicators such as stable 8-9 percent overall annual growth, rising foreign exchange reserves andrapidly expanding FDI inflows, India has emerged as the second fastest growing major economyin the world after China.DNV INTERNATIONAL EDUCATION ACADEMY Page 50
  51. 51. WelsPun indiA liMited 6.FinAnce dePArtMent 6.1 cAsh FloWParticulars Mar10 Mar09 Mar08 Mar07 Mar06Profit Before Tax 170.46 26.47 41.45 82.48 63.28Net Cash Flows from Operating Activity 142.31 127.73 119.99 47.15 34.54Net Cash Used in Investing Activity -64.91 -156.64 -233.92 -379.57 -384.50Net Cash Used in Financing Activity -83.20 25.66 41.99 415.40 351.06DNV INTERNATIONAL EDUCATION ACADEMY Page 51
  52. 52. WelsPun indiA liMited Net Inc/Dec in Cash and Cash Equivalent -5.80 -3.24 -71.94 82.98 1.10 Cash and Cash Equivalent - Beginning of the 88.81 92.05 163.99 81.01 79.90 Year Cash and Equivalent - End of the Year 83.01 88.81 92.05 163.99 81.01 6.2 ProFit And loss stAteMentProfit & Loss – Welspun India Ltd. Mar10 Mar09 Mar08 Mar07 Mar06 12 Months 12 Months 12 Months 12 Months 12 MonthsINCOME:Sales Turnover 1,838.14 1,347.95 1,249.93 999.42 658.29 DNV INTERNATIONAL EDUCATION ACADEMY Page 52
  53. 53. WelsPun indiA liMitedExcise Duty 12.79 1.18 3.11 2.38 1.72NET SALES 1,825.35 1,346.77 1,246.82 997.04 656.58Other Income 0.00 0.00 0.00 0.00 0.00TOTAL INCOME 1,847.88 1,364.15 1,257.32 1,009.84 670.92EXPENDITURE:Manufacturing Expenses 226.62 174.40 141.97 113.03 72.87Material Consumed 1,109.72 771.49 693.02 526.29 313.15Personal Expenses 116.36 103.52 96.34 81.93 58.56Selling Expenses 26.82 54.61 95.59 50.50 49.21Administrative Expenses 34.67 41.93 43.92 33.32 35.34Expenses Capitalized 0.00 0.00 0.00 0.00 0.00Provisions Made 0.00 0.00 0.00 0.00 0.00TOTAL EXPENDITURE 1,514.20 1,145.94 1,070.83 805.08 529.12Operating Profit 311.15 200.82 175.99 191.96 127.45EBITDA 333.68 218.20 186.49 204.75 141.79Depreciation 106.32 95.30 84.72 65.06 48.61Other Write-offs 0.00 0.00 0.00 0.00 0.00EBIT 227.35 122.90 101.77 139.69 93.18Interest 105.51 105.97 73.85 50.72 38.35EBT 121.84 16.93 27.92 88.97 54.84Taxes 52.23 -5.17 15.19 31.13 21.73Profit and Loss for the Year 69.62 22.10 12.74 57.85 33.11 DNV INTERNATIONAL EDUCATION ACADEMY Page 53
  54. 54. WelsPun indiA liMitedNon Recurring Items 7.19 -0.5 13.48 -6.49 -0.4Other Non Cash Adjustments 38.20 9.37 0.05 0.75 8.86Other Adjustments 0.00 0.00 0.00 0.00 0.00REPORTED PAT 115.01 30.90 26.27 52.10 41.55KEY ITEMSPreference Dividend 1.74 0.00 0.00 0.00 0.00Equity Dividend 7.31 0.00 0.00 0.00 0.00Equity Dividend (%) 10.00 0.00 0.00 0.00 0.00Shares in Issue (Lakh) 730.90 730.90 730.90 730.90 730.90EPS - Annualized (Rs) 15.73 4.23 3.59 7.13 5.68 6.3 bAlAnce sheet Balance sheet – Wels pun India Ltd. Particulars Mar10 Mar09 Mar08 Mar07 Mar06 Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months Share Capital 78.09 78.09 78.09 81.09 104.19 Reserves & Surplus 539.80 482.14 480.73 461.69 446.65 Net Worth 617.89 560.23 558.82 542.78 550.84 Secured Loans 1,616.36 1,608.91 1,523.57 1,382.11 797.22 DNV INTERNATIONAL EDUCATION ACADEMY Page 54
  55. 55. WelsPun indiA liMitedUnsecured Loans 41.74 50.00 18.27 12.09 42.31TOTAL LIABILITIES 2,275.98 2,219.14 2,100.66 1,936.98 1,390.37AssetsGross Block 2,031.45 1,912.12 1,703.39 1,395.98 1,065.51(-) Acc. Depreciation 524.60 423.14 332.76 249.08 187.00Net Block 1,506.85 1,488.98 1,370.63 1,146.89 878.51Capital Work in Progress. 23.98 93.81 142.10 134.29 147.12Investments. 92.94 104.67 90.48 166.54 105.72Inventories 354.43 210.56 290.19 236.64 195.13Sundry Debtors 173.35 152.39 75.34 88.95 41.73Cash And Bank 83.01 88.81 92.05 163.99 81.01Loans And Advances 453.64 459.80 374.24 225.24 141.11Total Current Assets 1,064.44 911.57 831.83 714.83 458.98Current Liabilities 397.57 375.38 307.78 222.68 187.52Provisions 14.66 4.50 26.59 2.89 12.44Total Current Liabilities 412.23 379.88 334.37 225.57 199.96NET CURRENT ASSETS 652.20 531.68 497.46 489.25 259.02Misc. Expenses 0.00 0.00 0.00 0.00 0.00TOTAL ASSETS (A+B+C+D+E) 2,275.98 2,219.14 2,100.66 1,936.98 1,390.37 DNV INTERNATIONAL EDUCATION ACADEMY Page 55
  56. 56. WelsPun indiA liMited 8.s.W.o.t AnAlysisDNV INTERNATIONAL EDUCATION ACADEMY Page 56
  57. 57. WelsPun indiA liMited strengths1) India is rich in highly trained manpower. So it is like a treasury for welspun in requirement of employees.2) India is highly competitive in spinning sector and has presence in almost all processes of the value chain. Due to this welspun have a easy availability of advanced equipment and tools.3) welspun is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.DNV INTERNATIONAL EDUCATION ACADEMY Page 57
  58. 58. WelsPun indiA liMited WeAKnesses1) The reservation of production for very small companies that was imposed with the intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry.2) Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India.3) India seriously lacks in trade pact memberships, which leads to restricted access to the other major markets.DNV INTERNATIONAL EDUCATION ACADEMY Page 58
  59. 59. WelsPun indiA liMited oPPortunities1) As welspun is a branded public company it has the opportunities spread their products easily in the country.2) It can play a vital role in the GDP of our country as it has wide foreign direct investment.3) As it has a large premises it can be helpful in reduction of unemployment which is a contravarcial problem of the country.4) Now Wels pun is producing a limited products. It has opportunity to increase the numbers of product.DNV INTERNATIONAL EDUCATION ACADEMY Page 59
  60. 60. WelsPun indiA liMited threAts1) Wels pun is working in the free trade zone which is valid for ten years only. So is has to leave or plan something else.2) Competition from other developing countries, especially China.3) To balance the demand and supply.4) To make balance between price and quality. Threat for Traditional Market for Power loom and Hand loom Products and forcing them for product diversification.DNV INTERNATIONAL EDUCATION ACADEMY Page 60
  61. 61. WelsPun indiA liMited 9. conclusionFrom this project report I can conclude that the welspun textile industryis a important of our country.94% of the total products are exported.It gives me great pleasure to note that Kutch is well and truly on its wayto becoming an industrial paradise.Wels pun is Asia s largest and amongst the top 2 Terry Towel producersin the World. I am happy to witness the participation of key international players likeWels pun who have contributed handsomely to bring Anjar back to itsfull glory.A promise that extends well beyond economic and commercial growthand includes social development too.DNV INTERNATIONAL EDUCATION ACADEMY Page 61
  62. 62. WelsPun indiA liMited 10.bibliogrAPhy  The whole information is collected from the following resources. 1) Human Resource Management (Garry Dessler, K. Aswathappa, Ivan) of its 9th edition. 2) 3) Search engine Google.DNV INTERNATIONAL EDUCATION ACADEMY Page 62