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Introduction

Spinning is the conversion of fibers into yarn. These fibers can be natural fibers (cotton) or manmade fibers (polyester). Spinning also entails production of manmade filament yarn (yarn that is not made from fibers). Final product of spinning is yarn. Cotton value chain starts from Ginning that adds value to it by separating cotton from seed and impurities. Spinning is the foundation process and all the subsequent value additions i.e. Weaving, Knitting, Processing, Garments and Made ups, depend upon it. Any variation in quality of spinning product directly affects the entire value chain.

Product Characterization
The process of making fabric from raw cotton is a long one and consists of various stages. There are two technologies available to spin the yarn, first and the foremost is Ring Spun and second is Open End. With the development in technology, and changing need of people world over different types of cotton yarns like 100% cotton compact yarn, 100% organic cotton yarns, 100% cotton mercerized yarns etc. have been developed which are used to manufacture a wide variety of cotton fabrics and clothing. Mostly ring spun yarns are used for producing fine quality clothing, bed linens, bed sheets, bed spreads, pillow covers etc., while open end yarns are used for manufacturing denim wear, towels, etc This is similar to treating different diseases with different medicines. Like a wrong medicine can prove hazardous for the heath of a patient, in a similar way a wrong choice of yarn will result in the creation of the wrong type of fabric or clothing.

The basic difference between the yarns is their count. Different counts are used to make different type of fabrics. In some cases, the cotton yarn is blended with some other yarn in different ratios to provide different effects like shining or to lend more elasticity to the yarn. It is the yarn count and the twisting mode of the yarn that actually determines the overall strength and look of the manufactured fabric. 100% cotton compact yarn and 100% cotton mercerized yarns have less hairiness and the fabric made from these is of fine quality are is used for manufacturing luxury clothing and bedding The count of Yarn can vary from 2s to 72s , the higher the number, the finer the yarn is.

The Indian Textile and Spinning industry


The Indian textile industry is one the largest and oldest sectors in the country and among the most important in the economy in terms of output, investment and employment. The sector employs nearly 35 million people and after agriculture, is the second-highest employer in the country. The Indian Spinning Industry is an integral part of the Indian Textile Industry. India claims to be the second largest manufacturer as well as provider of cotton yarn and textiles in the world India holds around 25 percent share in the cotton yarn industry across the globe India contributes to around 12 percent of the world's production of cotton yarn and textiles India covers 61 percent of the international textile market In terms of spindleage, the Indian textile industry is ranked second, after China, and accounts for 23% of the worlds spindle capacity

Spinning Companies in India


The spinning industry is dominated by large units and it has been able to undergo significant modernization since the 1990s. The main factors behind the modernization include lowering of custom duties and other restrictions on imports of machinery and equipment and lowering of restrictions on imports and exports of raw cotton and yarn. The spinning industry, which is dominated by medium and large units producing more than 90 percent of the output and total value added. During an early period of policy reform (19831990), the demand increased due to spurt in exports, which caused better utilization of existing spindles and led to reduction in idle capacity. During later phase (19902005), the investment in new spindles increased at a very rapid rate. This lead to rise in efficiency of the working spindles and relative productivity of working spindles compared to the most recent technology improved over time. The units in spinning sector are relatively less as most of the units in this segment belong to large sector. This becomes clear as units belonging to cotton and synthetic spinning in terms of value added accounts for 22.4 per cent in the total value added in textile and clothing sector. The share of large units in total value addition in cotton and synthetic spinning sector accounts for 86.1 per cent.

A few of the large spinning mills with their capacity are: Company Vardhaman Group Nahar Group Bannari Limited Sangam Group Malwa Cotton Spinning Mills Sambandam Spinning Mills Ltd 1,93,920 Spindles 1,40,000 Spindles 1,10,000 Spindles Amman Spinning Mills Capacity 8,00,000 Spindles 3,70,000 Spindles 2,20,000 Spindles

There are1834 cotton/man-made fiber textile mills (non-Small Scale) in the country with 37.07 million spindles, 4, 89,718 rotors and 56,524 looms .

Share in GDP
Its importance is underlined by the fact that The Textile industry accounts for around 4% of Gross Domestic Product, 14% of industrial production, 9% of excise collections, 18% of employment in the industrial sector, and 16% of the countrys total exports earnings. The Spinning sector, which is integrated to the Textile industry accounts to 22.4% of the total value of the Textile Industry.

Economic trends
The Textile industry has been witnessing a massive upsurge in the recent years. The industry size has expanded from USD 49 billion in 2006-07 to USD 65

billion in 2009-10. During this era, the local market witnessed a growth of USD 15 billion, that is, from USD 30 billion to USD 45 billion

Domestic Production
The Production of Yarn has been on the rise. Raw material has been less with respect to the demand for Spun Yarn. The prices of Cotton Hank Yarn increased by 32.5% in Oct. 2010 in comparison to the prices of Oct. 2009. The consumption of the Raw material i.e. Cotton and the production of yarn have been going up gradually.

Foreign Exports
The textiles industry accounts for 14% of industrial production and accounts for nearly 12% share of the country's total exports basket. The Government fixed the target for 2008-09 at US $ 26.55 billion an increase of 20% over the actual performance of US$ 22.14 billion in 2007-08, for export of textiles. However, no targets were fixed for 2009-2010. At present, Indian textile industry holds 3.5 to 4 percent share in the total textile production across the globe and 3 percent share in the export production of clothing.USA is known to be the largest purchaser of Indian textiles. Nearly half of Indian export was accounted by eight countries namely Bangladesh, Egypt,China, Portugal, Italy, Turkey, Iran and South Korea Russia (In order of export value). Last year, the proportion was accounted by only seven countries namely Turkey, Bangladesh, Brazil, Egypt, Italy, South Korea.

[SICKNESS/CLOSURE OF TEXTILE MILLS


The incidence of sickness and closure in the organized textiles industry is a matter of concern. Textiles being the oldest and the largest industry of the country, it is but natural that at any given point of time some textiles units could be lying sick / closed. One main reason of sickness is structural transformation resulting in the composite units in the organized sector losing ground to power looms in the decentralized sector, on account of the latter's greater cost effectiveness. Other causes of sickness/ closure of the industry include low productivity due to lack of modernization, stagnation in demand and inability of some units to expand in the export market, increase in the cost of inputs, difficulties in getting timely and adequate working capital and the availability of power, labor. The Spinning Industry in India is on set to hit the global market with other fabrics as well like the cotton textiles with its enthusiasm and consistency in work. It has already reached a phenomenal status in India by beating the obstacles that caused a downfall since past few years and is now on its way to cover a wider area in the spinning sector.

COMPANY PROFILE

Pavan cotton products private ltd Company


Pavan cotton products private limited incorporate company in the year 1992. the company stated with 18 cotton ginnig mechines . inistial capital 1000000 later in the year 2001 we stated spinning of capacity 3000 unit of capacity then around increased capacity to 13248 spindle by the year 2007 to 2008 . the present share of the company capital 12500000 .the company also expots local market Hankyarn and corryarn hankyarn goes to the local market like mangalagiri, cherala, pedana, kuppam, srikakulam etc. corryarn goes to the local market like nalogonda, sirisila, and out of state markets devanadi in maharastra, coimbathur, thirupur, maduri in tamilnadu, calcuta, etc

Process description Blow room


After taking cotton bales from godown , bales cover will be opened and arranged in a row nearer to bale plucker ,where automatically cotton will be taken uniformly from each bale and processed through the bale plucker ,monocylinder, unimix, flexi clean and contamination clear where cotton open into small tuffs and cleaning will be done and then fed through chutes to the next department of cards.

Carding The fibers will be opened from small tufts to individual, at the same time trash and short fibers will be cleaned to some extent and the fibers will be formed as silver for further process.

Pre comber draw frames


Carding silvers will be fed to draw frame where parrelisation of fibers takes place and collected in to HDPE cans as silver form. LAP FORMER The drawing sliver will be fed to lap former where laps will be prepared to feed to next process combers.

Comber
In this process the short fibers will be removed as per our quality requirements. Draw frame The auto level or draw frames will reduce the variation present in feed material and fibers will be panelized for further process.

Simplex
In this process roving will be formed in small packages for ring spinning process,

Ring spinning
The fibers are twisted and would as a yarn.

Post spinning auto coners


Ring fame cops will be feed to auto coners where yarn undergoes inspection through electronic detectors removes all faults and spliced and winds yarn in to cone form.

Packing
Final product of yarn will be packed for sending to the market .

Process flow chart of spinning mill

Cotton mixing

BLOW ROOM

CARDING

PRECOMBER DRUMPING

FORMER

COMBER

DRAW FRAME

SIMPLEX

RING FRAME

POST SPINNING

PACKING

LAYOUT OF THE COMPANY PRODUCTION DEPARTMENT

The process of Manufacturing involves the following steps: Raw Material (Waste Cotton) Willowing Teasing Carding Simplex Spinning Reeling B Mixing: There are various stages involved in Mixing Department. The following are some of the stages. First Stage (Willowing): In this process, there is a Machine named WILLOW Machine. Its work is to clean waste and cleans the picked material. The Machine consists of long needles. Second State (Teasing): In this stage, there is a Machine named TEASING Machine. It opens the PC waste and cleans it further. This Machine also consists of Needles which are sharper and installed on wooden plates. Third State (Mixing): This is one of the vital stages of mixing process. In this process mixing is done in 70:30 (i.e.) 70% cotton waste, 30% PC Waste. For the best Mixture the mixed materials is carried out through the Teasing Machine.

Carding: At u At the Carding Department, the cotton is completely opened into divided yarn. It is cleaned by removal of dirtiness and foreign matter and sliver produced suitable for subsequent process. A Sliver is one drum full of cotton fibers. For this process c1/3 and LC.300 Machines are used. The delivery rate is 17 meters /min and the one sliver will be filled within 45 Min. Simplex Department: At the simplex the thickness is reduced and the given sliver is hoist and wound on the bobbins. The production of the simplex depends on the spindle speed; twist per inch (tp) number of spindles etc., the weight of one bobbin is 1 kg. For the process LF 1400 and TS15 Machines are used. In one Machine 120 bobbins are produced. Spinning Section: The Next is the spinning process, where the roving bobbins are fed to a drafting system, which converts roving into yarn. For this process LRG5/1 and LR6 Machines are used and there is another Machine MOTMANAT Ruck 21C doing the same process but it is automatic and speed is high. It ta 1 hour for 2000 spindles 1 spindle = 0.22 kgs 1 shift = 12 hours Therefore, production For 1 shift = 2000 x .22x12 = 5280 kgs. Spinning Department play major role in the production side to produce yarn in various types of counts.

100% Cotton Yarn


Staple Yarn

100% Cotton Yarn: 100% cotton yarn means without blending (Mixing) and manmade fibers, if the yarn is produced with cotton fiber only, then it is known as 100% cotton yarn.This yarn is generally produced on order. Staple Yarn: With the blending of manmade fibers like polyester, viscose fibers, staple yearn are produced. This type of yarn has more shining and strength. Reeling Section: In the reeling section the yarn from spindles is converted into hanks (knots).The Reeling Machine can lodge 20 spindles at a time. It takes 20 minutes for the production of 20 knots which is equal to 4.54 kgs.The final product of the reeling section is transferred to bundling section. Bundling Section: This department consists of a Machine named BUNDLING Machine. A bundling Machine can accommodate 20 knots at a time. 20 knots make a bundle. The knots are pressed and tightened with a help of a twine.20 bundles are taken together in a HDPE bags (High Density Poly Ethylene) and it is called as Chippam or a bale. These bundles are packed properly. 1 Bundle = 4.54 kgs Therefore 20 bundles = 90.8 kgs (91 kgs) Therefore 1 chippam = 91 kgs

Approximately 60 Chippams are produced in a shift Warehousing: The Chippams are then moved to the warehouse till they are ready to be shipped. The Godown Keepers maintains a record of the number of units which have come in during every shift and the number of units dispatched to every client. Raw Materials:For the production process the Waste Cotton is used as a Raw Material. Daily 132 bales are used for production process and each bale is weighted around 80-90 kgs and the three different length of fibers are 40mm, 44mm are used for production process, mostly 44m are used as raw material for production process. Raw materials are purchased on daily basis based on consumption. This Company generally purchases its Raw Material from Gangothri Textiles. The general price is around Rs. 5 for cotton waste and Rs. 8 for polycot (PC) waste. The Merchants provide a trade discount of 50 paise per kg and another 50 paise if the payment is made within 3 days from the date of delivery of goods. Machinery and Spares:To obtain a material for a department the following procedure is followed. The department filter (head) finds out reasons of repair in the Machine. He reports to the Quality Manager Quality Manager gives the form to store If it is available in store, they give it right away if not the form is counter signed by the Factory Manager and the General Manager and forwarded to the Purchase Department.

Now the Purchase is made. Purchase is usually of three types. There are 1) Through quotations: Purchase of heavy and expensive machinery is done by the mill itself. They get quotations from various companies and open a tender. On a specified date the tender with lowest cost will be selected and purchases made with the corresponding company, mode of payment, mode of delivery, insurance etc. are also discussed there in. 2) Spares Purchase: Purchase of spares for the machinery is generally done from a dealer already fixed earlier by the management who is mostly the vendor of the machinery. 3) Emergency Purchase: The General Manager is entitled to use his vested powers in case of any emergency purchase.

[SALES DEPARTMENT

MARKETING:-

Marketing is a task of creating, promoting and delivery of goods and services to consumer and business. Sales, product, price and place are mainly considered for good marketing The unit manufactures cotton yarns. The main market of this yarn is in the organized sectors as well as in the un-organized sector where it will be used in large quantities by the handloom and the power loom sector in the production of cheap durries and rough industrial cloth. The main weaving centers are located in Pallipalayam, Komarapalayam ,Erode,Thiruchengode and Bhavani. These areas account for the majorconsumption of cotton yarn in Tamil Nadu.The company has already very well established market for its goods and achieves maximum sales. CUSTOMERS: The main customers to Jayalakshmi Textile Co. are K.K.B. Pvt. Ltd., Jeeva Textiles in Erode etc. Sales are also made through the National Handloom Development Corporation (NHDC). Customer Satisfaction is ensured by considering various things. Quality of the product Cost of the product. Delivery time of the product. Free Transportation Charge

There are many competitors in this field and it is more likely to be hit by emerging competition and new technologies. Few competitors are Super Spinning Pvt. Ltd. Ajay Mills Pvt. Ltd. Premier Mills Pvt. Ltd. Wastage Sales: The waste cotton generated is sold to the domestic customers on a tender basis.The average price obtained is around Rs. 2 to Rs. 3 per kg.

[ACCOUNTS DEPARTMENT
This Department is a very vital department. They maintain all accounting and cost details of the company. They maintain day to day income andexpenditure of the company. This department is headed by the General Manager Finance. Under the financial director comes the manager in charge of accounts, manager in chargeof costing, the purchase and the sales department. 1) Accounts Manager: This Manager is in charge of preparing the balance sheet of the company.The various books this manager maintains are Purchase Book, Sales Book, General Ledger Book, Computerized Cash Book, Ledger, Budgetary Control, StockLedger, Income and Expenditure Account Book, Debtors/Creditors book. All these books are maintained by the Accounts Manager and he gives to the management the day to day accounts for the day and the month and year. It is his duty to maintain the entire account books with proper care. All the accounts must be perfect.

2) Costing Manager: Costing Manager maintains the store ledger and other cost related book.The material inwards and issues are posted to various materials accounts work isprogress and finished goods are valued and recorded in separate books. Product costing is adopted by the bill of materials, labour overhead; at last all the accounts are submitted to the auditors. Basis of preparation of financial statements: 1) The financial statements have been prepared in compliance with all materialaspects of the mandatory accounting standards issued by the ICAI and the relevant provisions of Companies Act, 1956. 2) Accounts were prepared under historical cost convention, on the basis ofgoing concern concept, with revenues and recognized and expensesaccounted for on their accrual. 3) Fixed Assets They are stated at cost. 4) Investment: Long term investments are stated at the cost of acquisition.Current investments are stated at lower of cost or fair market value. 5) Depreciation a) Depreciation of FA (other than those costing up to Rs. 5000) has beenprovided pro-rata in straight line method. b) Premium paid on lease hold lands/properties are amortized overrespective lease period. 6) Gratuity, leave salary and other terminal benefits: Gratuity, leave salary and other terminal benefits are accounted for on thebasis of the prevailing wage rate at the end of the year.

7) Govt. Grants: The Grant received is accounted for on cash basis. The balance of unutilizedgrant at the year end is shown as current liability. 8) VAT: VAT is accounted for by reducing purchase cost of related material in cases where credit for the same is availed.