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A Report on Industrial visit to Relaxo Footwear

Limited’s Manufacturing Unit III, Bhiwadi, Dist. Alwar
(Rajasthan)


Submitted by: Tushar Jaiswal
01313703913
MBA-I






Institute of Information Technology & Management,
New Delhi – 1100 58
Batch (2013-2015)
Pro forma of the Report:
 Background
 Introduction to Relaxo Footwear
 The Journey Begins
 Hands on Approach to Production
 Observation
 Vote of Thanks


























Background:
After concrete efforts of our management and our placement officer Mr. Mandeep Singh,
the students of Institute of Information Technology and Management, MBA (Batch 2013-
2015) got this esteemed opportunity to have an Industrial visit to World Class Company like
Relaxo Footwear Limited. We appreciate the efforts of our teachers and management of IITM
and Relaxo Footwear Limited for executing this successful Industrial trip.

Introduction to Relaxo Footwear Limited:
Such is the story behind the creation and flourishing of Relaxo Footwear, the company
that has established itself as one of the most stalwart, quality conscious and avant-garde
footwear companies in the Indian economy today. Headquartered in New Delhi, India, it
maintains a fine combination of comfort, style, and workmanship and is embarking upon
appreciable growth plans for the future. The company began as a small enterprise in the year
1976 and was officially incorporated in 1984 and further went into public listing in 1995.
According to the 2008 Business Survey, it has now emerged as the second largest footwear
producer in India.
Relaxo Footwear commenced its journey with the manufacture of Hawaii slippers. It has
now grown into a large-scale entrepreneurship catering to the basic needs of the
quintessential Indian citizen. From a modest sales figure of Rs. 1 million in 1977 to more
than Rs. 8700 million last year; the company has experienced a record-breaking growth since
inception. Today, the company manufactures over 3 lakh pairs of footwear per day, which
approximately adds up to over 10 million pairs per year. Each pair is given thorough attention
by the dedicated and skilled employees working at the 9 state-of-the-art manufacturing units
in Northern India. Thus, it is no small wonder that the annual turnover has more than doubled
in the last four years from Rs. 427 crore in 2008-09 to a whopping Rs. 1000 crore in 2012-13.








Quality and Products
From the time of its inception, Relaxo has consistently lived by and upheld its quality
assurance, rigidly adhering to the statutes of Quality Par Excellence and Absolute Customer
Satisfaction.
Quality control managers monitor every stage of manufacturing process, right from pre-
production to shop floors. Shaping and designing undergo the same stringent checks as the
final products. Some of the quality tests that our products are subjected to are:
 Random Testing
 Batch Testing
 Tactical Wear Testing
Their products comprise a wide range of quality footwear in the following brands:
1. Hawaii Slippers: Hawaii is the most popular brand in the Relaxo portfolio. It comes
in diverse shades and styles and its comfort value makes it a favorite among all age
groups. With an output of 300000 pairs a day, Relaxo is one of the largest
manufacturers of Hawaii in India.
2. Flite: Flite is Relaxo's most exclusive brand. Its unique “fashionable and lite” quality
is ensured by its manufacturing process, involving cutting-edge EVA technology.
Available in an array of colors and designs, it is among the most popular brands for
women in the footwear industry.
3. Sparx: Sparx is a range of sports shoes and sandals that embodies the spirit of today's
youth. Available in awe-inspiring colors and designs, it reflects verve and dynamism
as an iconic youth brand and is symbolic of a wholehearted zest for life.
4. Schoolmate: Schoolmate is a range of school shoes for boys and girls and is an
expression of Relaxo's faith and commitment towards the young leaders of tomorrow.
Made with special care to pamper thousands of tiny feet, each pair bears the mark of
superb workmanship and adaptable design.

Limited Vision & Mission
Relaxo Footwear was conceptualized with a lot of hope and hard work by an outstanding
pilot team of brilliant Indians. Likewise, the company’s vision and mission were as powerful
as its personality.
Vision: Achieving an annual turnover of Rs. 1000 crore by the end of 2012.
Mission: Ensuring customer satisfaction in keeping with the company’s motto of "Quality
Par Excellence".
Core Values
The Core Values that Relaxo lives by are exclusive in their overpowering simplicity and
absolute effectiveness. They are:
 Corporate Citizenship
 Honesty
 Transparency
 Employee Satisfaction
 Customer Orientation
 Team Orientation

Corporate Objectives
Their Corporate Objectives provide a single-minded focus to every member of the Relaxo
family. They are:
 Developing human assets through effective training
 Product innovation through design and development
 Meet & exceed customer requirements (both internal & external)
 Increased customer satisfaction
 Quality improvement through control of rejection
 Optimum utilization of resources
 Waste reduction at all stages
 To explore national and international markets
 ISO 9000:2000 compliance

Management Systems & Initiatives
Their Management Systems and Initiatives are based on some of the best practices in the
global industry today. We meticulously plan and execute each initiative to its maximum
potential, so as to leave no stone unturned on our journey to become a market leader. Take a
look:
 Annual Business Planning objective setting
 Quarterly business review
 Capacity assessment and planning
 Monthly Business review through performance score card
 QMS: ISO 9000:2000
 Rolling out of ERP across Relaxo (SAP)
 Initiating continuous improvement through team projects
 Suggestion schemes (Parivartan)

Operations & Manufacturing
Across the years since its inception, Relaxo has steadily established its production
facilities across the length and breadth of Northern India. Each state-of-the-art unit is
equipped with futuristic infrastructure powered by cutting-edge technology and progressive
machinery. At present, there are 10 actively functioning facilities at the following locations:
 RFL I & II Bahadurgarh
 RFL III Bhiwadi
 RFL IV Bahadurgarh
 RFL V Haridwar
 RFL VI A & B Bahadurgarh
 RFL VII A & B Bahadurgarh
 RFL VIII Bahadurgarh


















The Journey Begins….
We started from our institution at 0900 hrs sharp and reached the venue within two and a
half hour. We headed to the hall where we were addressed by General Manager, Deputy
General Manager, Production Head and Deputy Manager HR of the industry. They briefed us
about the company and what we were about to see. It was basically in regard of the Relaxo
manufacturing unit & workforce and Assembly line Management.
This plant solely dealt in manufacturing of Hawaii Slippers. This plant is one of the largest
manufacturing plants in production of Hawaii Slippers in India. Due to off season company
was manufacturing 80000 units with 600 employees but it has capacity of producing around
1,35,000 units if required. The management is whole heartedly putting effort to increase the
production to around 2,00,000 units and then number of employees will be increased to 1500.
We were divided in two groups of 25-30 people so as to have individual attention. First
group was sent to the work floor where the raw materials were transformed in to rubber
sheets and second group was sent to cutting, assembly and packaging department.

As I was in first group so I went work floor with the group, we saw machines and they
were more productive than machines in other Relaxo factories as told by person who was
addressing us. They were mainly imported from Taiwan and China.
As we proceeded, we saw some workers measuring the specific amount of raw material
according to measurement charts that were pasted on the walls.
Basic Raw Materials were Polymer, Filler, Chemical and Curative (Catalyst)
Then the mixing was done in Needle machine according to a chart which prescribed what
to be added in machine, for how many seconds and what temperature should be maintained.
Once a specific amount of materials were mixed the machine was rammed up and swept.
Then the product was heated and dumped on roller which created long sheets, next the sheets
was cooled by water and the by air.
After that it was cut into pieces of same sizes, and the sheets were put into grinding
machine and curative was added while grinding the rubber sheets again.
After grinding rolls were created and after that rolls were cut in thin fine sheets.
Then sheets were checked for quality. If quality was faulty sheets were again sent to
needle machine as a crumb.
If sheet passes quality check then it is put in a sole press machine in order White, Grey and
Black (top to bottom respectively), it is heated for 12 minutes at 160 degree Celsius
temperature under pressure 74 psi.
After 12 minutes the thick compressed sheets are withdrawn from the machine and a
standard check is performed after which they were put in racks to give 72 hours edging
before using them for cutting.
There were two different sizes of sole press machine one created small compressed sheets
other one was there to produce large compressed sheets. To create straps for Hawaii slippers
there was a machine named Injection molding machine which punched straps on a rubber
sheet which were extracted from the sheets later by a lady worker.
All the work was carried in a flow using conveyer belts as they have adopted the practice
of Assembly line.
The workers were provided with masks so that intake of dust and fumes could be
minimized which could be otherwise hazardous to health.

After viewing all the process carried out on work floor our group went to cutting,
assembly and packaging department. We saw racks containing rubber sheets which were
already edged for 72 hours and were ready for cutting purpose.
Then we moved to sole cutting section. In the cutting machine the sizes of soles to be cut
were adjusted accordingly, sheet was put on the frame and then punched. Then soles were
taken out and the remaining portion was sent again for mixing as a crumb.
Now soles were put in Drilling machine which drilled holes on sole to attach strap with it.
This machine drilled 3 holes in 25000 units in 12 hrs
After that we moved to fitting section, which consisted of a fitting machine. It was a
mechanical machine which attached straps to 3500 units in 12 hrs.
Then the slipper is forwarded for visible inspection.
Silicone is applied on top portion and thinner is applied on base to remove smudges or dirt
from the unit and MRP was printed on the slipper through a stamp machine.
After that it is again checked for quality and an OK passed sticker is pasted on the slipper.
Then a pair of slippers is packed in a box according to size.
Lastly 60 pieces are packed in one carton i.e. 8 boxes of size 2, 12 boxes of size 3, 16
boxes of size 4 and 24 boxes of size 5.
Then they were strapped using plastic wires by another automated machine.
Hands on approach to Production:
Each Group was taken separately and explained functioning of the plant. A lot of theory is
learnt is class regarding how the manufacturing units focus on Total Productivity, Total
Quality, Zero Defect, etc…but by far this was the first hands on experience on how does a
Manufacturing unit or plant works.
We got to know how the assembly line manufacturing process works, which section of the
plant deals with what and produces what and how production is done?
The management gets an order for a whole week before hand and accordingly they order
raw material and handle production of the items to complete the order.

Observation:
Positive points of industry:
 Industry was using Assembly line manufacturing process.
 Employees were provided with meal at subsidized rates i.e. half amount is paid by
worker and company bears rest.
 Company bears the tuition fees if any worker wants to study further.
 Workers are provided with masks to avoid intake of fumes, chemicals and gases.
 If any children of labors score 60% and above, company awards scholarship to those
children.
 Company is introducing SAP and hiring employees accordingly.
 Good numbers of female employees were also present in industry.
 Company is consulting Accenture which is a leading business solution company to
maximize its production and manufacturing capacity.
 Company gives workers Jaggery to eat which helps to extract all the unwanted gases
fumes and chemical from their bodies.
Negative points of industry:
 Ventilation system of work floor was not up to the mark.
 Heavy machines heat up the environment in factory too much making it difficult to
withstand atmosphere for a long duration.
 Some labors were not using masks provided to them which may lead to serious health
problems.
 Large amount of space is still unused.

Corporate Social Responsibility:
Corporate Social Responsibility is an obligation performed by the organization towards its
employees and society.
CSR activities of Relaxo Footwear Limited:-
 Conscious about health of workers.
 Promote further training/studies of labor.
 Scholarships to employee’s children.
Shortfall in CSR:-
 Hygiene condition and ventilation system were not up to the mark.

Vote of Thanks:
On behalf of all the Management and the students we take this opportunity to thank the
entire team of Relaxo Footwear Limited for providing us with the practical information and
well as wonderful hospitality. We take moment to offer our greetings to the entire Relaxo
Footwear Limited team.