This document analyzes the effect of cotton price fluctuations on the profitability of yarn producers in India, using Precot Meridian Ltd as a case study. It finds that while Precot has seen increasing sales over time, its profit margins have fluctuated, with losses incurred in some years. Analyzing various profitability and cost ratios reveals that rising total costs, especially material costs, have prevented Precot from maintaining consistent profit margins despite sales growth. The study aims to understand how cotton price volatility influences yarn industry profits and identify strategies to help companies withstand input price changes.
The document discusses factors affecting Indian cotton textile exports. It provides an overview of the current scenario of the Indian textile industry, including key statistics on textile exports and segmentation. It then discusses the various segments of the textile industry and India's competitiveness compared to other nations. The document also discusses Oswal Woollen Mills Ltd., including its product portfolio, export markets, departments, SWOT analysis, and financial ratios. It concludes with research objectives, methodology, findings, and suggestions to support the cotton textile industry.
The document discusses the ready-made garments industry in India. It provides an overview of the industry, including business models, distribution channels, demand trends, financial performance, exports, manufacturing process, and policies. It analyzes factors influencing competitiveness such as labor costs, scale of operations, and trade agreements. While India is a major garment exporter, its market share has stagnated as countries like China and Bangladesh have more competitive cost structures and preferential trade agreements. To increase exports, the document recommends diversifying products and markets, expanding scale, improving labor costs through reforms, and entering new trade agreements.
A study on ‘Performance Evaluation of Select Textile Companies An Empirical A...IOSRJBM
Indian Textile industry has played a pioneered role in growth and upliftment of country. It is the sector that contributes approx 14 per cent to industrial production, 4 per cent to GDP and Approx 13 Percent of total exports of the country. The sector has offered employment to around 45 million people, by acting as one of the biggest employment generator sector. In spite of having such a remarkable records, companies in textile industry are facing many problems like shortage of raw material, obsolete machinery, power shortage, low productivity of labour and competition in foreign market. So the objective of the study is to measure and compare the performance of selected textile companies in India during last five years. The secondary data collected is analyzed using various statistical tools and techniques such as Ratio analysis and one way ANOVA. To measure the financial performance of selected textile companies, in terms of Managerial efficiency, Liquidity, Profitability and Solvency position of the companies, ratio analysis has been used. Further one way ANOVA has been used to identify if there exist a significant difference in the mean and performance of different textile companies. The results showed that there is significance difference in the Return on Capital Employed, Net Profit Margin, Current Ratio, Debt to Equity Ratio, and Fixed Asset turnover ratio of sample Textile companies at 5% level of significance
A project on readymade garments[CoSoMoS GrOuP(Hari&Taher)]Hariom Mehta
The document discusses India's garment industry. It states that India is the 2nd largest manufacturer of garments globally after China. The industry is fragmented with many small and medium enterprises. It employs over 35 million people directly and 47 million indirectly. The government has implemented several schemes to promote the industry such as attracting foreign investment and establishing fashion hubs and training centers. The industry is growing and modernizing, with international brands outsourcing more production to India. It is projected to become one of the top three textile and garment exporters globally.
Final annual report of readymade garmentsjaimin parmar
This document provides an overview of the Indian apparel industry. It discusses the history and growth of the industry. The apparel market in India has grown significantly over the past decade, reaching Rs. 1,224 billion in 2015. The industry is broadly classified into men's, women's and kids' apparel segments. In 2010, men's apparel formed the largest segment with 40.2% market share, followed by women's apparel with 34.8% and kids' apparel with 24.9%. The document also provides figures on the size and growth rates of the different segments from 2010-2015.
The textile industry in India is the second largest market in the world, with exports of $14 billion last year and a domestic market of $28 billion. It consists of 20% of industrial production and employs 18% of workers in manufacturing. Key strengths include abundant and low-cost raw materials and labor. However, the industry also faces weaknesses such as being fragmented, facing historical regulations, and having low productivity and outdated technology. Opportunities for growth exist in the large global market, while threats include increased competition and issues around sustainability.
This document summarizes a study on the growth of the apparel industry in India. It discusses how factors like increasing incomes, urbanization, and exposure to global fashion trends have contributed to rapid growth in the Indian apparel market. The apparel industry is one of India's largest, contributing significantly to employment, GDP, and exports. While still growing, it is projected to double in size within the next five years. Key factors fueling further growth include rising disposable incomes, the expansion of the women's segment, and the rise of e-commerce and organized retail. The apparel industry remains an important driver of the Indian economy and is well positioned for continued strong growth.
Welspun India Limited is one of India's leading home textile companies. It has a presence across 32 countries and supplies products like bed linen, towels, and bathrobes to major retailers globally. The company aims to provide a one-stop solution for home textiles through its modern manufacturing facilities. India's large textiles industry and strengths in embellished textiles and R&D drive the growth of its home textiles exports, which are dominated by bed linen, table linen, and towels. However, the industry faces challenges from competition and issues related to infrastructure and labor laws. Key trends include stable export prices, projected high growth, and expansion of production facilities focused on quality and the US and EU markets.
The document discusses factors affecting Indian cotton textile exports. It provides an overview of the current scenario of the Indian textile industry, including key statistics on textile exports and segmentation. It then discusses the various segments of the textile industry and India's competitiveness compared to other nations. The document also discusses Oswal Woollen Mills Ltd., including its product portfolio, export markets, departments, SWOT analysis, and financial ratios. It concludes with research objectives, methodology, findings, and suggestions to support the cotton textile industry.
The document discusses the ready-made garments industry in India. It provides an overview of the industry, including business models, distribution channels, demand trends, financial performance, exports, manufacturing process, and policies. It analyzes factors influencing competitiveness such as labor costs, scale of operations, and trade agreements. While India is a major garment exporter, its market share has stagnated as countries like China and Bangladesh have more competitive cost structures and preferential trade agreements. To increase exports, the document recommends diversifying products and markets, expanding scale, improving labor costs through reforms, and entering new trade agreements.
A study on ‘Performance Evaluation of Select Textile Companies An Empirical A...IOSRJBM
Indian Textile industry has played a pioneered role in growth and upliftment of country. It is the sector that contributes approx 14 per cent to industrial production, 4 per cent to GDP and Approx 13 Percent of total exports of the country. The sector has offered employment to around 45 million people, by acting as one of the biggest employment generator sector. In spite of having such a remarkable records, companies in textile industry are facing many problems like shortage of raw material, obsolete machinery, power shortage, low productivity of labour and competition in foreign market. So the objective of the study is to measure and compare the performance of selected textile companies in India during last five years. The secondary data collected is analyzed using various statistical tools and techniques such as Ratio analysis and one way ANOVA. To measure the financial performance of selected textile companies, in terms of Managerial efficiency, Liquidity, Profitability and Solvency position of the companies, ratio analysis has been used. Further one way ANOVA has been used to identify if there exist a significant difference in the mean and performance of different textile companies. The results showed that there is significance difference in the Return on Capital Employed, Net Profit Margin, Current Ratio, Debt to Equity Ratio, and Fixed Asset turnover ratio of sample Textile companies at 5% level of significance
A project on readymade garments[CoSoMoS GrOuP(Hari&Taher)]Hariom Mehta
The document discusses India's garment industry. It states that India is the 2nd largest manufacturer of garments globally after China. The industry is fragmented with many small and medium enterprises. It employs over 35 million people directly and 47 million indirectly. The government has implemented several schemes to promote the industry such as attracting foreign investment and establishing fashion hubs and training centers. The industry is growing and modernizing, with international brands outsourcing more production to India. It is projected to become one of the top three textile and garment exporters globally.
Final annual report of readymade garmentsjaimin parmar
This document provides an overview of the Indian apparel industry. It discusses the history and growth of the industry. The apparel market in India has grown significantly over the past decade, reaching Rs. 1,224 billion in 2015. The industry is broadly classified into men's, women's and kids' apparel segments. In 2010, men's apparel formed the largest segment with 40.2% market share, followed by women's apparel with 34.8% and kids' apparel with 24.9%. The document also provides figures on the size and growth rates of the different segments from 2010-2015.
The textile industry in India is the second largest market in the world, with exports of $14 billion last year and a domestic market of $28 billion. It consists of 20% of industrial production and employs 18% of workers in manufacturing. Key strengths include abundant and low-cost raw materials and labor. However, the industry also faces weaknesses such as being fragmented, facing historical regulations, and having low productivity and outdated technology. Opportunities for growth exist in the large global market, while threats include increased competition and issues around sustainability.
This document summarizes a study on the growth of the apparel industry in India. It discusses how factors like increasing incomes, urbanization, and exposure to global fashion trends have contributed to rapid growth in the Indian apparel market. The apparel industry is one of India's largest, contributing significantly to employment, GDP, and exports. While still growing, it is projected to double in size within the next five years. Key factors fueling further growth include rising disposable incomes, the expansion of the women's segment, and the rise of e-commerce and organized retail. The apparel industry remains an important driver of the Indian economy and is well positioned for continued strong growth.
Welspun India Limited is one of India's leading home textile companies. It has a presence across 32 countries and supplies products like bed linen, towels, and bathrobes to major retailers globally. The company aims to provide a one-stop solution for home textiles through its modern manufacturing facilities. India's large textiles industry and strengths in embellished textiles and R&D drive the growth of its home textiles exports, which are dominated by bed linen, table linen, and towels. However, the industry faces challenges from competition and issues related to infrastructure and labor laws. Key trends include stable export prices, projected high growth, and expansion of production facilities focused on quality and the US and EU markets.
Introduction to indian garment industryAnkur Makhija
The document provides an overview of the Indian garment industry. It discusses that the industry contributes significantly to India's economy through industrial production, GDP, and exports. The industry is concentrated in eight major apparel clusters across India and exports textiles and clothing to over 100 countries, with the US and EU being the largest export destinations. It then analyzes the strengths, weaknesses, opportunities, and threats facing the Indian garment industry. Key strengths include low labor costs and raw material availability. Weaknesses include industry fragmentation and lower productivity compared to competitors. Growing domestic demand and rising incomes present opportunities. Threats include global competition and currency fluctuations.
Saurabh internship report Welspun India Ltd, Mumbai TEXTILESaurabh Singhvi
The document provides an overview of Welspun India Limited, a leading home textiles company based in India. Some key points:
1. Welspun India Limited is one of India's largest home textile exporters, supplying products to over 32 countries. It has a wide product portfolio including bedding, bath, and kitchen textiles.
2. The Indian textile industry contributes significantly to India's GDP, exports, employment, and overall economic growth. It employs over 35 million people.
3. Welspun focuses on innovation in areas like technology, design, materials and quality to remain competitive in the global textiles market. It aims to be a one-stop solution for home textiles
The textile industry is Bangladesh's largest export sector, accounting for over 75% of total exports. However, the industry faces many challenges that threaten its competitiveness. These include outdated machinery and lack of research/development; high production costs due to energy shortages, inflation, and interest rates; and safety issues damaging international confidence after disasters like Rana Plaza. To address these challenges, recommendations include improving infrastructure like energy access; expanding technical skills and access to capital; diversifying export markets; and strengthening workplace safety standards.
SWOT analysis is a structured planning method that evaluates the strengths, weaknesses, opportunities, and threats of a project or business venture. It helps understand a business better, address weaknesses, determine threats, capitalize on opportunities, and take advantage of strengths to develop goals and strategies. China ranks first in the world for textile exports, with total export revenue exceeding $274 billion in 2014-2015, making textiles China's biggest export industry. Export revenue for China's textile and garment industry grew at an average of 2.74% over 2012-2015. The future of China's apparel industry depends on specializing in specific products and shifting resources to other sectors and non-coastal regions.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
This document provides a strategic analysis for Nishat Mills, including a revised mission statement, PEST analysis, and discussion of technological factors. The revised mission statement adds a focus on using best available technology. The PEST analysis examines political, economic, social/cultural, and environmental factors. Politically, issues like terrorism, corruption and unstable government policies present challenges. Economically, the textile industry provides jobs, exports, government revenue and economic stability. Socially, demographic trends and lifestyle changes impact demand. Technologically, Nishat aims to stay competitive through research and development efforts.
Working capital management @ gadag textile project reportBabasab Patil
The document provides information about The Gadag Co-operative Textile Mill Ltd in Gadag, Karnataka, India. It was established in 1972 by K.H. Patil to produce yarn. The mill started with an initial investment of Rs. 220 lakhs and began production in 1973. It has various departments that work interdependently towards common objectives like production. The project studies the company's profile, SWOT analysis, annual reports and working capital management. It aims to understand the working capital sources, components, operating cycle and liquidity position through ratio analysis.
A study on the knitwear industry of bangladeshAbul Rahat
This presentation provides an in depth look into the Knitwear industry of Bangladesh, and relate the concepts and theories of managerial economics with the findings regarding both the overall industry and some of its major players.
The document discusses factors affecting Indian cotton textile exports. It provides an overview of the current scenario of the Indian textile industry, including key statistics on textile exports and segmentation. It then discusses the cotton textiles value chain and India's competitiveness compared to other nations. Specific issues are explored, such as raw material price variations, labor availability challenges, and competitive pressures. Government support and incentives are assessed, with mixed responses from exporters. Suggestions are made to continue technology upgrading funds and liberalize foreign direct investment policies to further support the industry.
This document summarizes the import of ready made garments in India. It discusses the major categories of garments imported, including cotton, silk, jute, woolen and leather products. The top exporting countries to India are listed as Nepal, Bangladesh, Pakistan, China, Sri Lanka and Vietnam. It also outlines the major importers in India and reasons for importing garments such as demand from brand conscious customers and increased domestic markets. Government policies to support the garment industry are mentioned.
The document analyzes India's textile sector, which contributes 14% to industrial production and employs over 35 million people. It discusses the country's leadership in cotton, jute, silk and technical textiles production. The top three export destinations for Indian textiles are the US, EU and China. Key players in the industry include Arvind Mills, Raymond Ltd and Bombay Dyeing. The future of the textile industry looks promising due to strong raw material resources, growing domestic demand, and investment opportunities.
This document analyzes exports of the Indian textile industry with special reference to Ludhiana. It finds that Ludhiana is a major producer and exporter of knitwear and accounts for 90% of India's woolen hosiery industry. The major export markets for Ludhiana textiles are the EU, US, Africa, Vietnam, and Bangladesh. Most Ludhiana exporters deal in garments, wool, and yarn. The strengths of the textile industry are abundant raw materials while weaknesses include government policies. China provides the strongest competition for Indian textile exports. The future potential of the industry depends on better infrastructure, technology, innovation, and supportive government policies.
The document analyzes India's apparel industry. It discusses that the industry contributes 2% to India's GDP and is one of the country's fastest growing segments. It also outlines the various stages of apparel manufacturing such as design, pattern making, cutting, sewing, and finishing. Additionally, the summary provides statistics on India's apparel imports and exports from 2015-16 to 2019-20. It notes that while India was once a leader in apparel exports, Bangladesh has now surpassed it due to cheaper labor and fewer strikes. The conclusion suggests India can increase its global apparel exports by focusing on its large cotton production and automating processes to use materials more efficiently.
project report on welspun textile LALIT MORYANI ,POSWAL JITENDRAposwal_jitendra
The document is an industrial visit report on Welspun India Ltd, a textile company. It provides background on Welspun, including that it was incorporated in 1985 and is the largest producer of terry towels in Asia. It also details Welspun's production processes, departments like manufacturing, purchasing, and human resources. It discusses the company's expansion plans, including setting up a new plant and increasing towel production capacity. Finally, it provides an overview of the Indian textile industry and Welspun's position as a leading global textiles supplier.
The document provides an overview of the global textile and apparel industry, including its history and key statistics. It discusses the shift in growth towards developing countries due to the end of quotas in 2005. India's large and growing textile industry is highlighted, with major players like Raymond and Bombay Dyeing mentioned. Key factors influencing consumer purchasing decisions are identified. The various stakeholders in the industry are mapped out.
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
The document discusses the growth of India's textile industry from 1980-1981 to 2009-2010. It analyzes key periods of pre-liberalization (1980-1992), post-liberalization (1992-2005), and post-MFA regime (2005-2010). Textile policy evolved over time to make the industry more efficient and competitive by removing controls, allowing private investment and imports. Economic reforms in 1991 further deregulated and liberalized the sector. The textile industry has significantly contributed to India's GDP, employment, and exports over decades of development.
Introduction :Flagship company of the Vardhaman Group incorporated in 1973 as Mahavir Spinning Mills Ltd (MSML).
25 manufacturing facilities across India.
26,000 + employees across the company and its subsidiaries.
Revenue Rs. 5587crs (31st March 2016.
Subsidiary Companies : VMT Spinning Company Ltd.
VTL Investments Ltd.
Vardhaman Yarns and Threads Limited.
Vardhaman Acrylics Ltd.
Vardhaman Nisshinbo Garments Company Ltd.
Associate Companies : Vardhaman Special Steels Ltd.
Vardhaman Spinning and General Mills Ltd.
(Vardhaman Holdings Ltd.)
Raw Materials : Raw Cotton, Yarn, Synthetic Fibre, Fabric, Dyes, Chemicals & Auxiliaries
Finished Products : Yarns & Speciality Yarn, Fabric, Sewing Thread, Acrylic Fibre, Garments
HR Strategies : Human Capital most Valued Assets
Rigorous Recruitment
Culture of continuous learning
In house and on the job training
Systematic appraisal for talent development
Encouraged informal mentorship
Training through premiere institutes (domestic and international)
Open and transparent top – down communication
Employee engagement and team building practices (QCT, GCM etc)
Employee stock options
Entirely home grown senior management
Marketing Strategies : Intensive market research both domestic and international.
Concentration on a niche market i.e. Five major textile products.
Long-term partnerships with key stakeholders i.e. customers, vendors and partners.
Innovative and specialised product development and diversification based on customer feedback.
Strategic international alliances to upgrade technology and endure global standard product quality.
Policy of sustainable strategic expansion.
Brexit, Demonetisation & Trump :
Brexit : The UK accounts for more than 25% of india’s textile and appral exports to the EU.
Not effect on Indian export tariff preference to the EU.
May provide opportunity for a FTA with Britain.
Short term negative implications expected.
Demonetization :
Slow down of domestic demand for textile end products immediately after note ban.
Securing raw material and selling finished goods to a hit.
Shot term slowdown in operations in large firms.
Delay in cotton exports.
Small cash dependent firms took a major hit.
President Trump : Scraping of the TPP.
Opportunities to India
Future Growth : Global environment supportive of growth in Indian Textiles
Indian textile expected to grow to US $470 Bn by 2025 – (Investment US $320 Bn)
Vardhaman Conservative growth strategy.
Retain manufacturing licences to A & E threads.
Consolidation, Specialize and expand the existing niche markets i.e. Yarns & Fabric.
One stop shop for fashion yarns and fabric.
Conclusion : Successful conservative expansion.
Enhanced product quality and FDI.
Focus and enhance USP to attain market leadership.
The Indian textile industry is a major contributor to the Indian economy, generating $18.73 billion in exports and employing over 35 million people. It encompasses various sectors such as cotton, man-made fibers, wool, silk, handlooms and handicrafts. While India has strengths like low costs and a large skilled workforce, the industry is fragmented and faces threats from competition abroad and within India. To capitalize on new opportunities, industry players must invest in product development, technology, and integrated manufacturing capabilities.
Comprehensive Project On Apparel IndustryHetal Bhatt
The document provides an introduction and overview of the apparel industry. It discusses the global and Indian markets for apparel, key players in the industry, and distribution channels. Research methods used to study the industry are also mentioned, including Porter's Five Forces analysis, SWOT analysis, PESTLE analysis, and case studies of major companies. The document contains an executive summary and table of contents outlining the various sections of the report on the apparel industry.
Gokul Industries began as a small cotton trading business started in 1970 by Govindji Dattani. In 1999, he established Gokul Industries Ginners & Cotton Merchant, a cotton ginning and pressing factory in Taraghdi, drawing on his 25 years of experience in the cotton industry. Gokul Industries is a small-scale production unit that gins and presses raw cotton using advanced machinery to increase output and convenience of transport. The company aims to manufacture high quality cotton bales and seeds for customers.
ABSTRACT Marketing Strategies of Readymade Garments Industry of India.pdfAnn Wera
This document discusses marketing strategies of the readymade garments industry in India. It begins by providing background on the industry and outlines several objectives of the study, including to examine existing marketing policies and strategies used by garment companies. It then presents several hypotheses to be tested regarding relationships between owner/company factors and marketing strategies. The methodology discusses using statistical tools like t-tests, ANOVA, and percentages to analyze primary survey data collected from garment manufacturers, retailers, and customers. Limitations of the study include its focus on two regions of India and potential bias from informant responses.
Introduction to indian garment industryAnkur Makhija
The document provides an overview of the Indian garment industry. It discusses that the industry contributes significantly to India's economy through industrial production, GDP, and exports. The industry is concentrated in eight major apparel clusters across India and exports textiles and clothing to over 100 countries, with the US and EU being the largest export destinations. It then analyzes the strengths, weaknesses, opportunities, and threats facing the Indian garment industry. Key strengths include low labor costs and raw material availability. Weaknesses include industry fragmentation and lower productivity compared to competitors. Growing domestic demand and rising incomes present opportunities. Threats include global competition and currency fluctuations.
Saurabh internship report Welspun India Ltd, Mumbai TEXTILESaurabh Singhvi
The document provides an overview of Welspun India Limited, a leading home textiles company based in India. Some key points:
1. Welspun India Limited is one of India's largest home textile exporters, supplying products to over 32 countries. It has a wide product portfolio including bedding, bath, and kitchen textiles.
2. The Indian textile industry contributes significantly to India's GDP, exports, employment, and overall economic growth. It employs over 35 million people.
3. Welspun focuses on innovation in areas like technology, design, materials and quality to remain competitive in the global textiles market. It aims to be a one-stop solution for home textiles
The textile industry is Bangladesh's largest export sector, accounting for over 75% of total exports. However, the industry faces many challenges that threaten its competitiveness. These include outdated machinery and lack of research/development; high production costs due to energy shortages, inflation, and interest rates; and safety issues damaging international confidence after disasters like Rana Plaza. To address these challenges, recommendations include improving infrastructure like energy access; expanding technical skills and access to capital; diversifying export markets; and strengthening workplace safety standards.
SWOT analysis is a structured planning method that evaluates the strengths, weaknesses, opportunities, and threats of a project or business venture. It helps understand a business better, address weaknesses, determine threats, capitalize on opportunities, and take advantage of strengths to develop goals and strategies. China ranks first in the world for textile exports, with total export revenue exceeding $274 billion in 2014-2015, making textiles China's biggest export industry. Export revenue for China's textile and garment industry grew at an average of 2.74% over 2012-2015. The future of China's apparel industry depends on specializing in specific products and shifting resources to other sectors and non-coastal regions.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
This document provides a strategic analysis for Nishat Mills, including a revised mission statement, PEST analysis, and discussion of technological factors. The revised mission statement adds a focus on using best available technology. The PEST analysis examines political, economic, social/cultural, and environmental factors. Politically, issues like terrorism, corruption and unstable government policies present challenges. Economically, the textile industry provides jobs, exports, government revenue and economic stability. Socially, demographic trends and lifestyle changes impact demand. Technologically, Nishat aims to stay competitive through research and development efforts.
Working capital management @ gadag textile project reportBabasab Patil
The document provides information about The Gadag Co-operative Textile Mill Ltd in Gadag, Karnataka, India. It was established in 1972 by K.H. Patil to produce yarn. The mill started with an initial investment of Rs. 220 lakhs and began production in 1973. It has various departments that work interdependently towards common objectives like production. The project studies the company's profile, SWOT analysis, annual reports and working capital management. It aims to understand the working capital sources, components, operating cycle and liquidity position through ratio analysis.
A study on the knitwear industry of bangladeshAbul Rahat
This presentation provides an in depth look into the Knitwear industry of Bangladesh, and relate the concepts and theories of managerial economics with the findings regarding both the overall industry and some of its major players.
The document discusses factors affecting Indian cotton textile exports. It provides an overview of the current scenario of the Indian textile industry, including key statistics on textile exports and segmentation. It then discusses the cotton textiles value chain and India's competitiveness compared to other nations. Specific issues are explored, such as raw material price variations, labor availability challenges, and competitive pressures. Government support and incentives are assessed, with mixed responses from exporters. Suggestions are made to continue technology upgrading funds and liberalize foreign direct investment policies to further support the industry.
This document summarizes the import of ready made garments in India. It discusses the major categories of garments imported, including cotton, silk, jute, woolen and leather products. The top exporting countries to India are listed as Nepal, Bangladesh, Pakistan, China, Sri Lanka and Vietnam. It also outlines the major importers in India and reasons for importing garments such as demand from brand conscious customers and increased domestic markets. Government policies to support the garment industry are mentioned.
The document analyzes India's textile sector, which contributes 14% to industrial production and employs over 35 million people. It discusses the country's leadership in cotton, jute, silk and technical textiles production. The top three export destinations for Indian textiles are the US, EU and China. Key players in the industry include Arvind Mills, Raymond Ltd and Bombay Dyeing. The future of the textile industry looks promising due to strong raw material resources, growing domestic demand, and investment opportunities.
This document analyzes exports of the Indian textile industry with special reference to Ludhiana. It finds that Ludhiana is a major producer and exporter of knitwear and accounts for 90% of India's woolen hosiery industry. The major export markets for Ludhiana textiles are the EU, US, Africa, Vietnam, and Bangladesh. Most Ludhiana exporters deal in garments, wool, and yarn. The strengths of the textile industry are abundant raw materials while weaknesses include government policies. China provides the strongest competition for Indian textile exports. The future potential of the industry depends on better infrastructure, technology, innovation, and supportive government policies.
The document analyzes India's apparel industry. It discusses that the industry contributes 2% to India's GDP and is one of the country's fastest growing segments. It also outlines the various stages of apparel manufacturing such as design, pattern making, cutting, sewing, and finishing. Additionally, the summary provides statistics on India's apparel imports and exports from 2015-16 to 2019-20. It notes that while India was once a leader in apparel exports, Bangladesh has now surpassed it due to cheaper labor and fewer strikes. The conclusion suggests India can increase its global apparel exports by focusing on its large cotton production and automating processes to use materials more efficiently.
project report on welspun textile LALIT MORYANI ,POSWAL JITENDRAposwal_jitendra
The document is an industrial visit report on Welspun India Ltd, a textile company. It provides background on Welspun, including that it was incorporated in 1985 and is the largest producer of terry towels in Asia. It also details Welspun's production processes, departments like manufacturing, purchasing, and human resources. It discusses the company's expansion plans, including setting up a new plant and increasing towel production capacity. Finally, it provides an overview of the Indian textile industry and Welspun's position as a leading global textiles supplier.
The document provides an overview of the global textile and apparel industry, including its history and key statistics. It discusses the shift in growth towards developing countries due to the end of quotas in 2005. India's large and growing textile industry is highlighted, with major players like Raymond and Bombay Dyeing mentioned. Key factors influencing consumer purchasing decisions are identified. The various stakeholders in the industry are mapped out.
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
The document discusses the growth of India's textile industry from 1980-1981 to 2009-2010. It analyzes key periods of pre-liberalization (1980-1992), post-liberalization (1992-2005), and post-MFA regime (2005-2010). Textile policy evolved over time to make the industry more efficient and competitive by removing controls, allowing private investment and imports. Economic reforms in 1991 further deregulated and liberalized the sector. The textile industry has significantly contributed to India's GDP, employment, and exports over decades of development.
Introduction :Flagship company of the Vardhaman Group incorporated in 1973 as Mahavir Spinning Mills Ltd (MSML).
25 manufacturing facilities across India.
26,000 + employees across the company and its subsidiaries.
Revenue Rs. 5587crs (31st March 2016.
Subsidiary Companies : VMT Spinning Company Ltd.
VTL Investments Ltd.
Vardhaman Yarns and Threads Limited.
Vardhaman Acrylics Ltd.
Vardhaman Nisshinbo Garments Company Ltd.
Associate Companies : Vardhaman Special Steels Ltd.
Vardhaman Spinning and General Mills Ltd.
(Vardhaman Holdings Ltd.)
Raw Materials : Raw Cotton, Yarn, Synthetic Fibre, Fabric, Dyes, Chemicals & Auxiliaries
Finished Products : Yarns & Speciality Yarn, Fabric, Sewing Thread, Acrylic Fibre, Garments
HR Strategies : Human Capital most Valued Assets
Rigorous Recruitment
Culture of continuous learning
In house and on the job training
Systematic appraisal for talent development
Encouraged informal mentorship
Training through premiere institutes (domestic and international)
Open and transparent top – down communication
Employee engagement and team building practices (QCT, GCM etc)
Employee stock options
Entirely home grown senior management
Marketing Strategies : Intensive market research both domestic and international.
Concentration on a niche market i.e. Five major textile products.
Long-term partnerships with key stakeholders i.e. customers, vendors and partners.
Innovative and specialised product development and diversification based on customer feedback.
Strategic international alliances to upgrade technology and endure global standard product quality.
Policy of sustainable strategic expansion.
Brexit, Demonetisation & Trump :
Brexit : The UK accounts for more than 25% of india’s textile and appral exports to the EU.
Not effect on Indian export tariff preference to the EU.
May provide opportunity for a FTA with Britain.
Short term negative implications expected.
Demonetization :
Slow down of domestic demand for textile end products immediately after note ban.
Securing raw material and selling finished goods to a hit.
Shot term slowdown in operations in large firms.
Delay in cotton exports.
Small cash dependent firms took a major hit.
President Trump : Scraping of the TPP.
Opportunities to India
Future Growth : Global environment supportive of growth in Indian Textiles
Indian textile expected to grow to US $470 Bn by 2025 – (Investment US $320 Bn)
Vardhaman Conservative growth strategy.
Retain manufacturing licences to A & E threads.
Consolidation, Specialize and expand the existing niche markets i.e. Yarns & Fabric.
One stop shop for fashion yarns and fabric.
Conclusion : Successful conservative expansion.
Enhanced product quality and FDI.
Focus and enhance USP to attain market leadership.
The Indian textile industry is a major contributor to the Indian economy, generating $18.73 billion in exports and employing over 35 million people. It encompasses various sectors such as cotton, man-made fibers, wool, silk, handlooms and handicrafts. While India has strengths like low costs and a large skilled workforce, the industry is fragmented and faces threats from competition abroad and within India. To capitalize on new opportunities, industry players must invest in product development, technology, and integrated manufacturing capabilities.
Comprehensive Project On Apparel IndustryHetal Bhatt
The document provides an introduction and overview of the apparel industry. It discusses the global and Indian markets for apparel, key players in the industry, and distribution channels. Research methods used to study the industry are also mentioned, including Porter's Five Forces analysis, SWOT analysis, PESTLE analysis, and case studies of major companies. The document contains an executive summary and table of contents outlining the various sections of the report on the apparel industry.
Gokul Industries began as a small cotton trading business started in 1970 by Govindji Dattani. In 1999, he established Gokul Industries Ginners & Cotton Merchant, a cotton ginning and pressing factory in Taraghdi, drawing on his 25 years of experience in the cotton industry. Gokul Industries is a small-scale production unit that gins and presses raw cotton using advanced machinery to increase output and convenience of transport. The company aims to manufacture high quality cotton bales and seeds for customers.
ABSTRACT Marketing Strategies of Readymade Garments Industry of India.pdfAnn Wera
This document discusses marketing strategies of the readymade garments industry in India. It begins by providing background on the industry and outlines several objectives of the study, including to examine existing marketing policies and strategies used by garment companies. It then presents several hypotheses to be tested regarding relationships between owner/company factors and marketing strategies. The methodology discusses using statistical tools like t-tests, ANOVA, and percentages to analyze primary survey data collected from garment manufacturers, retailers, and customers. Limitations of the study include its focus on two regions of India and potential bias from informant responses.
This document provides information about conducting a feasibility study for a formal trouser business. It discusses what a feasibility report is and covers the key areas of marketing, technical, and financial feasibility. It also provides background information on the Indian textile industry and menswear market. The document outlines the production process for making trousers and specifies details about the potential company, including the product, address, brand, and quality standards. It analyzes the political, economic, social, and technological factors affecting the industry.
The document discusses the turnaround strategy for Alok Industries, a vulnerable textile organization in India. It provides an overview of Alok's history and products. In recent years, Alok faced performance decline due to external factors like changing economic conditions and internal issues like management failure. To recover, Alok implemented various generic turnaround strategies like cost reduction, asset redeployment, and selective changes to product and market strategy. It also analyzed Alok's lifecycle and the strategies used during different stages, from growth to maturity and transformation, to achieve turnaround. These included developing new products, improving production efficiency, and adapting to increased demand during the COVID-19 pandemic.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and foreign investment promotion.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and improving competitiveness.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
Textile Industry In India A Swot Analysis 17027FNian
- The global textile and apparel industry was worth $1,467.5 billion in 2005, with apparel and accessories accounting for $1,098.6 billion (74.9%) and textiles accounting for $214.7 billion (14.6%).
- India contributes about 25% of the world's cotton yarn trade and is the second largest producer of cotton yarn and textiles globally. The Indian textile industry contributes about 22% of the world's spindles and 6% of rotors.
- Textile exports from India increased from $7.55 billion in 1993-94 to $17 billion in 2005-06, with ready-made garments being the largest export
The document provides an overview of Welspun India Limited, a leading home textiles company based in India. Some key points:
- Welspun India is one of India's largest home textile exporters, supplying products to over 32 countries.
- It has a wide product portfolio including bed linen, towels, and bathrobes. Nearly 95% of production is exported.
- The Indian textile industry contributes significantly to India's GDP, exports, employment, and overall economic growth.
- Welspun India aims to analyze innovations in the home textiles space through the project conducted at their facilities.
Export of readymade garment from suratSunny Gandhi
This document provides an overview of the Indian textile and readymade garment industries. It discusses the importance of the textile industry to the Indian economy and its structure. The readymade garment industry is described as the second largest in the world after China. The document then outlines the research methodology for a study on factors influencing exports of readymade garments from Surat, including objectives, design, population, sampling, data collection and analysis methods.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through employment, exports, and GDP. India has a large raw material base as a top global producer of cotton, silk, jute and man-made fibers. The industry is fragmented with many small independent units. Exports are dominated by ready-made garments while the domestic market is growing. The government has implemented policies to modernize the industry and attract foreign investment. India has a cost advantage over competitors in textile production.
The text summarizes the key aspects of India's textile industry:
1. It is one of India's largest and oldest industries, employing millions across the value chain from fiber to apparel manufacturing.
2. Major fibers used include cotton, jute, silk, wool and synthetic fibers like polyester. Key segments are yarn, fabric production, and final garments.
3. The industry plays a significant role in the Indian economy, contributing to GDP, exports, and employment especially in rural areas.
4. Major players, exports, imports, and government initiatives to support growth are discussed. Opportunities and the impact of COVID-19 on the industry are also summarized.
This document provides an overview of the textile industry in India. It discusses the history and importance of the textile industry as one of the largest employers in India. It then describes the workings of various departments in textile companies, including accounts, finance, marketing, sales, and production. It also summarizes the market size of the Indian textile industry and provides a SWOT analysis and discussion of the marketing mix strategies used. Finally, it outlines some of the key challenges faced by the industry and initiatives taken by the Indian government to support the textile sector.
This document provides information on the Indian textile and clothing industry. It discusses the fragmentation of the industry between organized and unorganized sectors. It outlines major facts about the industry, including its large contribution to India's economy and exports. The document also examines the growing market size of the industry and analyzes strengths, weaknesses, opportunities, and threats. Finally, it reviews government initiatives to promote the industry.
The textile industry in India is one of the oldest and largest in the world. The industry contributes approximately 5% to India's GDP. It can be divided into several segments such as cotton, silk, wool, man-made fibers, and readymade garments. Orbit Exports is one of the largest exporters of novelty fabrics in India, recognized by Forbes as a best company under $1 billion in Asia. It specializes in products such as faux silk, fashion jacquards, and Christmas crafts. Orbit Exports aims to deliver high quality products on time and maximize shareholder value through continuous process evolution.
India Textile Recycling Market Report in PPT: Top Companies, Trends and Futur...IMARC Group
Looking forward, the india textile recycling market value is projected to reach a strong growth during the forecast period (2022-2027).
More info:- https://www.imarcgroup.com/india-textile-recycling-market
September 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Textile Industry
COMPANY ANALYSIS : Arvind Mills
BRAND ANALYSIS : MTV
Concept of the month: Market Share Paradox
Event Report : Consulting Induction Program
India Textile Recycling Market by Product Type, Distribution Channel, End Use...IMARC Group
The India textile recycling market size reached US$ 308.7 Million in 2022. Looking forward, IMARC Group expects the market to reach US$ 375.0 Million by 2028, exhibiting a growth rate (CAGR) of 3.4% during 2023-2028.
More Info:- https://www.imarcgroup.com/india-textile-recycling-market
India is the second largest textile producer in the world. It is the largest producer of cotton, jute, and silk. The textile and apparel sector contributes significantly to India's GDP and industrial production. It employs over 51 million people directly and 68 million indirectly, making it one of the largest employment sectors. Key reasons for India's dominance in textiles include its skilled workforce, low production costs, and presence of the entire textile value chain. Major companies in the Indian textile industry include Welspun India, Vardhman Group, and Raymond.
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A study on the effect of material price fluctuations on the profitability of yarn industry in india
1. Research Journal of Finance and Accounting www.iiste.org
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Vol.5, No.19, 2014
134
A Study on the Effect of Material Price Fluctuations on the
Profitability of Yarn Industry in India
(with Special Reference to Precot Meridian Ltd)
DR. E. MUTHUKUMAR
MBA.,M.Phil, PhD, NET, Associate Professor, Nehru college of Management Studies
(Accredited by NAAC an ISO 9001: 2008 Certified Institutions Affiliated to Bharathiar University)
Thirumalayampalayam, Coimbatore – 641105
Email: mkumar.mgt@gmail.com
NISHA.K.G,
Research Scholar in Management, Nehru college of Management Studies
(Accredited by NAAC an ISO 9001: 2008 Certified Institution Affiliated to Bharathiar University)
Thirumalayampalayam, Coimbatore – 641105
E.mail.:kgnisha@gmail.com
Abstract
This article focuses on the effect in profitability of yarn producers when the prices of cotton are fluctuating with
special reference to Precot Meridian ltd. Even though there is an increase in the sales volume and reduction in
the cost, Yarn producers facing the risk of maintaining the profitability margin. The only raw material of yarn
production is Cotton. And the cotton is a seasonal product. So the purchase of raw material is on seasonal basis.
Cotton price in Domestic Market and International Market are different and it is always fluctuating. After
Globalization as the yarn producers have both domestic and export sales, they have to face heavy competition in
domestic market with importers and in the foreign market with other yarn export countries.
Keywords: Cotton, Yarn, Price fluctuations, Precot meridian
Introduction
Cotton textile industry is quite widespread in the world and as many as 90 countries are producing cotton yarn
and/or cloth in varying quantity. The leading producers of cotton cloth in the world are China, India, Russia,
USA, Japan, Italy, Germany, Hong Kong, Egypt, France and Romania. India has the world’s second largest
spinning capacity, commanding a share of the global Cotton Yarn market – currently producing over 4700
Mn.Kgs of spun yarn of which over 3,400 Mn.Kgs is cotton yarn. Cotton Yarn accounts for nearly 73% of total
spun yarn production.
Precot is one of the premium textile groups in India which produce world class yarn. It is dedicated
services for more than forty three years and various steps are implemented for achieving customers as well as
employees satisfaction has helped Precot to earn an eminent position in the industrial horizon of South India.
The fundamental objectives of Precot Meridian Ltd is to produce good quality products and to strengthen
company’s base through increased productivity, effective utilization of the materials and manpower resource and
applied a continues application of modern, scientific methods for achieving company objectives.
Since the precot has grown by leaps and bounds and has spread its wings to all the southern state of
India. It has now under its umbrella six production units and four satellite units involved in production of cotton
and polyester and also high quality dyed and mercerized fabrics. Precot got ISO certification in 1995 and has
now successfully implemented 5s system. It has already initiated steps to implement the Total Productive
Management and total Quality Management. Precot groups have 12 mills. It has mill in Andhra Pradesh, Kerala,
Tamilnadu and Karnataka. The central office which controls there12 mills located at Coimbatore. The final
decision about the qualities of the products, sales and contracts and contracts approval of production planning,
policy decision etc, takes in the central office.
The company has domestic as well as export sales. So the company’s purchase policy, inventory policy,
and distribution policy depends on internal and external market conditions. The raw material of company is
cotton and it is a seasonal product so the purchase and inventory policy depends on season too. Precot meridian
mainly use Indian cotton like LK, DCH, MECH, MCU-S, KDCH, MPDCH and these are purchased from
Andharapradesh, Maharashtra, and Karnataka. Precot import cotton like GIZA-70, 86, 88, 89, PIMA-US, from
Australia, America, Egypt &Africa for producing the best quality yarn. Cotton purchase in form of bales and one
bale weight up to 160 to 200kgs.Since cotton is an agricultural product they purchase the maximum quantity for
the production of the Whole year during the seasons.
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has also been noticed that Indian exports of textiles & clothing is highly correlated with global trade pattern in
contrast to China, Bangladesh etc.
Chong Yu-han(2012) TIER Industry Report - Yarn Spinning Mills, Cotton. 7/2/2012, p1-13. 13p. 6
Charts, 3 Graphs, discussed the average price of cotton falls below the 100 cent US$ mark in the world
marketplaces in the second quarter of 2012, bringing down the selling price of cotton. Meanwhile, downstream
firms stood on the sidelines when it came to buying cotton fearing a further slide in cotton prices worldwide and
the escalation of euro-zone sovereign debt crisis from Greece to Spain. A decline in cotton price worldwide,
cautious demand from the downstream firms in China and the ongoing euro-zone sovereign debt crisis bode ill
for demand and prices of cotton yarn products, suggesting that the industry sales will slightly fall in the second
half of 2012 from the same period a year earlier.
DATAANALYSIS AND INTEPRETATION
Data analysis and interpretation is the process of assigning meaning to the collected information and determining
the conclusions, significance, and implications of the findings.
Ratio analysis is a fundamental means of examining the health of a company by studying the
relationships of key financial variables. Here Profitability ratios based on sales such as Net profit ratio, Gross
profit ratio, Operating ratio, and Operating profit ratio are discussed.
1.Table showing the Sales and Net Profit for the Past Ten years
Net profit ratio=Net profit/Net sales*100,
this ratio measures the overall profitability of the firm. The ideal net profit ratio is 5% to 10%.
(Rs. In crores)
Year Sales Net Profit Net profit ratio (%)
2005 240.41 8.1 3.369244
2006 232.01 15.02 6.473859
2007 336.48 18.89 5.614004
2008 370.7 5.12 1.381171
2009 383.86 -8.71 -2.26906
2010 441.35 15.72 3.561799
2011 574.72 32.6 5.672327
2012 594.04 -52.83 -8.89334
2013 667.17 20.69 3.101159
2014 738.19 30.45 4.124954
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Figure1
Figure 2
Inference: from the above it is clear that company shows an increasing trend in sales but the company’s net
profit margin shows a fluctuating trend. In the year 2009 and 2012 the company incurred loss .Increasing trend
in sales is not proportionately influencing the profitability of the company.
2. Table showing the Sales and Gross Profit for the Past Ten years
1. GROSS PROFIT RATIO
Gross profit ratio=Gross profit/Net sales*100
This ratio is calculated to determine the efficiency in trading or production activity.
The ideal ratio is 20% to 25%
. (Rs. In crores)
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Inference: from the above it is clear that in the year 2009 has comparatively less Gross profit, and in the year
2012 the company incurs a heavy loss. Even though the company shows an increasing sales trend, Company
was unable to maintain an increasing trend in gross profit margin.
3. Table showing the Sales and Operating Profit for the Past Ten years
Operating margin or operating profit margin measures what proportion of a company's
revenue is left over, after deducting direct costs and overhead and before taxes and other
indirect costs such as interest. Operating margin formula is:
Operating profit ratio= Operating profit/Net sales*100
(In crores)
Year Sales Operating profit Operating profit ratio (%)
2005 240.41 30.74 12.78649
2006 232.01 35.11 15.13297
2007 336.48 54.91 16.31895
2008 370.7 45.27 12.21203
2009 383.86 37.26 9.706664
2010 441.35 64.92 14.70941
2011 574.72 80.31 13.97376
2012 594.04 -22.59 -3.80277
2013 667.17 76.06 11.40039
2014 738.19 80.82 10.9484
Figure 5
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Figure 6
Inference: from the above it is clear that in the year 2009 has comparatively less Operating profit, and in the
year 2012 the company incurs a heavy loss. Even though the company shows an increasing sales trend,
Company was unable to maintain an increasing trend in Operaing profit margin.
4. Table showing the Sales and Total cost for the Past Ten years
The cost-to-sales ratio measures operation efficiency by comparing operating costs as a
proportion of the total revenue.
Cost to sales ratio = (total cost / sales)*100
(Rs. In crores)
Year Sales Total Cost Total cost to sales ratio
2005 240.41 206.76 86.00308
2006 232.01 197.82 85.26357
2007 336.48 291.26 86.56087
2008 370.7 328.06 88.49744
2009 383.86 337.45 87.90965
2010 441.35 379.49 85.98391
2011 574.72 540.03 93.96402
2012 594.04 590.03 99.32496
2013 667.17 583.05 87.39152
2014 738.19 678.2 91.87337
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Figure 7
Figure 8
Inference: Sales are increasing year by year correspondingly cost is also increasing year by year, so company
cannot attain any high profit margin even though the company shows an increasing trend in sales. In the year
2012 company shows high cost and in the year 2009 company shows his cost while compared to previous years.
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5. Table showing the material cost and other cost to Total cost
Total cost = Material cost + other cost
Material cost to total cost is to find out the proportion of material cost in total cost
Material cost to total cost = (material cost/Total cost)*100
Other cost to total cost ratio is to find out the proportion of cost other than material from
total cost
Other cost to total cost = (other cost/ total cost)*100
(Rs. In crores)
Year Total Cost Material
cost
Material cost to
total cost ratio
(%)
Other cost Other cost to total cost ratio
(%)
2005 206.76 127.66 61.74308 79.1 38.25692
2006 197.82 109.25 55.22697 88.57 44.77303
2007 291.26 178.82 61.39532 112.44 38.60468
2008 328.06 202.87 61.8393 125.19 38.1607
2009 337.45 213.7 63.3279 123.75 36.6721
2010 379.49 241.33 63.59324 138.16 36.40676
2011 540.03 365.44 67.67031 174.59 32.32969
2012 590.03 416.23 70.54387 173.8 29.45613
2013 583.05 363.54 62.35143 219.51 37.64857
2014 678.2 442.22 65.20495 235.98 34.79505
Figure 9
Inference: Major cost element in Total cost is material cost, so that any price fluctuations in material will affect
the total cost and profit margin. Trend line of total cost and material cost are similar to each other.
6. Table showing the position of sales, cost, and profit based on the two years 2009 and 2012 where the
company incurred loss. In crores
Year Sales Total Cost Material cost Other cost Profit
2009 383.86 337.25 213.7 123.75 -8.71
2012 594.04 590.03 416.23 219.51 -52.83
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Figure 10
Inference:
In the year 2009 and 2012 cost shows a higher increasing trend than sales and that resulted in to loss. Material
cost is the largest portion of total cost. So any fluctuation in material price highly affected to profit margin.
HYPOTHESIS TESTING
Hypothesis H0: There is a perfect linear correlation between Profitability and Sales
CORRELATION ANALYSIS
A correlation is a single number that describes the degree of relationship between two variables. The correlation
coefficient always takes a value between -1 and 1, with 1 or -1 indicating perfect correlation.
Four important interpretations of (1) are given below:
A correlation of -1 or +1 implies a perfect linear relationship between x and y: y=cx, for some constant c.
A positive correlation implies a positive relationship between x and y: as x increases, y increases.
A negative correlation implies a negative relationship between x and y: as x increases, y decreases.
CORRELATION BETWEEN SALES AND PROFIT OF PRECOT MERIDIAN
AS PER KARLPEARSON COEFFICIENT CORRELATION
r =. 019
Inference: From the above analysis it is clear that there is no perfect linear correlation between sales and profit.
So here null hypothesis rejected.
FINDINGS
It is clear that company shows an increasing trend in sales but the company’s net profit margin shows a
fluctuating trend. In the year 2009 and 2012 the company incur loss .Increasing trend in sales is not influencing
the profitability of the company. In the year 2009 has comparatively less Gross profit, and in the year 2012 the
company incurs a heavy loss. Even though the company shows an increasing sales trend, Company was unable
to maintain an increasing trend in gross profit margin. it is clear that in the year 2009 has comparatively less
YEAR SALES
(X)
Profit
(Y)
2005 240.41 8.1
2006 232.01 15.02
2007 336.48 18.89
2008 370.7 5.12
2009 383.86 -8.71
2010 441.35 15.72
2011 574.72 32.6
2012 594.04 -52.83
2013 667.17 20.69
2014 738.19 30.45
11. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.5, No.19, 2014
144
Operating profit, and in the year 2012 the company incurs a heavy loss. Even though the company shows an
increasing Sales trend, Company was unable to maintain an increasing trend in Operating profit margin. Sales
are increasing year by year correspondingly cost is also increasing year by year, so company cannot attain any
high profit margin even though the company shows an increasing trend in sales. In the year 2012 company
shows high cost and in the year 2009 company shows his cost while compared to previous years.Major cost
element in Total cost is material cost, so that any price fluctuations in material will affect the total cost and profit
margin. Trend line of total cost and material cost are similar to each other.
SUGGESTIONS
The company should adopt data mining strategy to survive in the global market. The company should take
necessary measures to withstand the uncertain contingencies in the global economy. The company should be
aware about the domestic and international market cotton pricing policies. Proper cost minimization techniques
should be adopted to control production cost. Material cost should be minimised by applying proper purchase
procedure.
CONCLUSION
In a vibrant market condition, doing business is a big challenge. And these buy-sell challenges can be met by
taking informed decision. On analyzing the over all picture of Precot meridian Ltd in India, It can be said that the
price of raw materials is the cost effecting key factor in the total cost the product. So any fluctuations in the
material price will strongly affect the profitability of the product. As the yarn producers facing the hard
competition in the Domestic as well as International market it is advisable to have a separate data warehouse and
data mining department for updating the information with regard to the latest trend in the economy and market.
Yarn Industry is one of privilege of our Indian economy, so the companies under such industry should be
protected and guided. Precot meridian ltd in India suffered loss in 2009 and 2012 but it made better position in
2013. If the company make aware of updated information in the global economy and practice effective cost
control system, it will succeed to best position.
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