TABLE OF CONTENTS

SNO CHAPTER PARTICULARS PAGE NO

1. Chapter-1 Introduction to the study &Industry

Profile

2. Chapter-2 Company Profile

3. Chapter-3 Organization Design

4. Chapter-4 Functional departments

5. Chapter-5 Conclusion

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 CHAPTER 1:
INDUSTRY PROFILE

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1.1 INTRODUCTION TO STUDY
An Organizational Study is important for a commerce graduate as it helps them connect the
theory to actual practice. It is done in order to understand the functional areas of the
organization and it also helped to learn and understand the theory and practice, which is being
followed in the organization

An organizational study was undergone at KNITS PARK TIRUPPUR as a part of the

academic programme for a period of 15 DAYS. It is a leading Manufacturer & Supplier of
Casual t-shirts, men’s printed t shirts, sports t shirts from Tirpur, Tamil Nadu, India.. The
owner of the company is holding a leading position amongst many companies in tirpur with
its main objective to provide the best quality clothes on a affordable price to the people of
Tirpur and other nearby places.

A detailed study was undertaken to understand the overall functions and work of the
organization and individual functional departments such as sales dept., production dept.,
purchase dept., store dept. and marketing dept.

This report provides an introduction to textile industry, practice and policy, presenting an
overview of textile that emphasizes the interplay between science, society, and individuals. It
aims to develop understanding of how textile organizations shape the practices of
professionals working within them.

The first chapter deals with the Introduction, Objectives,Scope, Need, Research methodology
and the limitations of the study and the Industry profile.

Chapter two deals with Company profile, the mission, vision, goals and objectives.

Chapter three covers the Organizational structure or design of the company.

Chapter four covers the department functions and processes.

Chapter five tells the findings, suggestions and my conclusion of the report.

1.2 OBJECTIVES OF THE STUDY

To study the organizational structure of the organization

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 To know about its products and service activities.

To familiarize with different departments in the organization and their functions.

To understand thoroughly how key process in the organization are carried out.

To find out strength and weakness of the organization.

To find threats and opportunities of the organization

To know the responsibilities of top management and how to execute responsibility in a

competitive economy.

1.3 SCOPE OF THE STUDY

An attempt is made to understand the functioning of all the departments and the work culture
of the organisation with special reference to KNITS park Tirpur .

1.4 NEED FOR THE STUDY

Facilitate student to develop congenial corporate atmosphere right from the program.

Make commerce more relevant with respect to the necessities of the corporate or the
industries.

To inculcate students, practical knowledge of the corporate world and the functioning of
respective departments in the organisation.

1.5 LIMITATIONS OF THE STUDY

•There are difficulties in obtaining data from executives and managers due to their busy
schedule.

•An in-depth study could not be carried on due to lack of sufficient time.

•The reliability of the data used for the study depends on the company’s reports and
information given by the executives.

•The company has limitations to disclose their financial details so a detailed analysis of the
same was not possible.

1.6 INDUSTRY PROFILE

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The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labour in textiles. The textile
industry continues to be the second-largest employment generating sector in India. It offers
direct employment to over 35 million in the country. The share of textiles in total exports was
11.04% during April–July 2010, as per the Ministry of Textiles. During 2009–2010, the
Indian textile industry was pegged at US$55 billion, 64% of which services domestic
demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing
factories in all of India. According to AT Kearney’s ‘Retail Apparel Index’, India was ranked
as the fourth most promising market for apparel retailers in 2009.

India is first in global jute production and shares 63% of the global textile and garment
market. India is second in global textile manufacturing and second in silk and cotton
production. 100% FDI is allowed via automatic route in textile sector. Reiter, Trutzschler,
Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks & Spencer, Zara,
Promod, Benetton, and Levi’s are some of the foreign textile companies invested or working
in India.

Production

India is the second largest producer of fibre in the world and the major fibre produced is
cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of

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the Indian textile Industry is cotton based. The strong domestic demand and the revival of the
Economic markets by 2009 has led to huge growth of the Indian textiles industry. In
December 2010, the domestic cotton price was up by 50% as compared to the December
2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China.
India projected a high production of textile (325 lakh bales for 2010 -11). There has been
increase in India's share of global textile trading to seven percent in five years.The rising
prices are the major concern of the domestic producers of the country.

Man Made Fibres: This includes manufacturing of clothes using fibre or filament synthetic
yarns. It is produced in the large power loom factories. They account for the largest sector of
the textile production in India.This sector has a share of 62% of the India's total production
and provides employment to about 4.8 million people.

The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It
provides employment to a huge number of people, but its productions and employment is
seasonal depending upon the seasonal nature of the production.

The Handloom Sector: It is well developed and is mainly dependent on the SHGs (Self-Help
Groups) for their funds. Its market share is 13%. of the total cloth produced in India.

The Woolen Sector: India is the 7th largest producerof the wool in the world. India also
produces 1.8% of the world's total wool.

The Jute Sector: The jute or the golden fibre in India is mainly produced in the Eastern states
of India like Assam and West Bengal. India is the largest producer of jute in the world.

The Sericulture and Silk Sector: India is the second largest producer of silk in the world.
India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main
types of silk produced in the country. It is a labour-intensive sector.

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In the early years, the cotton textile industry was concentrated in the cotton growing belt of
Rajasthan, Maharashtra and Gujarat. Availability of raw materials, market, transport, labor,
moist climate and other factors contributed to localization. In the early twentieth century, this
industry played a huge role in Bombay's economy but soon declined after independence.
While spinning continues to be centralized in Maharashtra, Gujarat and Tamil Nadu, weaving
is highly decentralized. As of 30 September 2013, there are 1,962 cotton textile mills in India,
of which about 80% are in the private sector and the rest in the public and cooperative sector.
Apart from these, there are several thousand small factories with three to ten looms.

India exports yarn to Japan, United States, United Kingdom, Russia, France, Nepal,
Singapore, Sri Lanka and other countries. India has the second-largest installed capacity of
spindles in the world, with 43.13 million spindles (30 March 2011) after China. Although
India has a large share in world trade of cotton yarn, its trade in garments is only 4% of the
world's total. This is due to the incompetency of local spinning and weaving mills to process
yarn. There exist some large factories, but most of the production is fragmented in small
units, which cater to the local market. This mismatch is a major drawback for the industry. As
a result, many of the spinners export yarn while apparel and garment manufacturers must
import fabric. The power supply is erratic, and machinery is outdated and needs to be
upgraded. Other problems include low output of labour and stiff competition with the
synthetic fibre industry.

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PORTERS 5 FORCES MODEL

One of the worst hit sectors during the skyrocketing interest rate scenario in the late 90s and
early 2000s, the debt-laden Indian textile industry has spun many turn-around stories since
then. Aided by lower interest rates, restructuring packages from financial institutions and the
recent dismantle of quotas, the sector is today well poised to capture growth opportunities. In
2005, the sector contributed 20% to industrial production, 9% to excise collections, 18% of
employment in industrial sector, nearly 20% to the country's total export earnings and 4% to
the GDP. The textile sector employs nearly 35 m people and is the second highest employer
in the country. Infact, it is estimated that one out of every six households in the country
directly or indirectly depend on this sector. Here we analyse the sector's dynamics through
Porter's five-factor model.

BARGAINING POWER OF CUSTOMERS (demand scenario)

Global textile & clothing industry is currently pegged at around US$ 440 bn. US and
European markets dominate the global textile trade accounting for 64% of clothing and 39%
of textile market. With the dismantling of quotas, global textile trade is expected to grow (as
per Mc Kinsey estimates) to US$ 650 bn by 2010 (5 year CAGR of 10%). Although China is
likely to become the 'supplier of choice', other low cost producers like India would also

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benefit as the overseas importers would try to mitigate their risk of sourcing from only one
country. The two-fold increase in global textile trade is also likely to drive India's exports
growth. India's textile export (at US$ 15 bn in 2005) is expected to grow to US$ 40 bn,
capturing a market share of close to 8% by 2010. India, in particular, is likely to benefit from
the rising demand in the home textiles and apparels segment, wherein it has competitive edge
against its neighbor. Nonetheless, a rapid slowdown in the denim cycle poses risks to fabric
players. Bargaining power of suppliers (supply scenario)

India is the third largest producer of cotton in the world after China and US and has the
largest area under cultivation. Cotton, a key raw material in the textile and garment industry,
accounts for about 30% of the fabric cost and 13% of the garment cost. India has an abundant
supply of locally grown long staple cotton, which lends it a cost advantage in the home textile
and apparels segments. Other countries, like China and Pakistan, have relatively lower supply
of locally grown long staple cotton. Moreover, low cotton prices due to a bumper cotton crop
would enable India to lower its production cost and sustain pricing pressure. Further, efforts
on improving the yield per hectare would ensure higher productivity and production, thereby
providing the much-needed security of raw-material supply to textile producers.

India also enjoys a significant lead in terms of labour cost per hour (US$ 0.6 in 2004), over
developed countries like US (US$ 15.1) and newly industrialised economies like Hong Kong
(US$ 5.1), Taiwan (US$ 7.1), South Korea (US$ 5.7) and China (US$ 0.9). Also, India is rich
in traditional workers adept at value-adding tasks, which could give Indian companies
significant margin advantage.

BARGAINING POWER OF SUPPLIERS :

• High availability of cotton.

• Low cost of labour.

• Differentiation of input is pretty low.

• Presence of substitute inputs to cotton like polyester , wool, lycra etc are present.

• Importance of volume to suppliers is very high.

• Cost relative to total purchases in industry is low.

• Thus bargaining power of suppliers is low.

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THREAT OF NEW ENTRANTS

In the quota free regime, capacity expansion is the name of the game in the textile sector.
Resultantly, smaller players who cannot venture into the global markets are flooding the
domestic markets with excess supply, thus weakening the pricing scenario. Be it denim
(Arvind Mills), home textiles (Welspun and Alok Industries) or branded apparels (Raymond),
new capex and consolidation with international players is also not likely to safeguard margins
for the larger players, unless they can tap a significant pie of the overseas markets.

THREAT OF SUBSTITUTES

Low cost producing countries like Pakistan and Bangladesh (labour cost 50% cheaper) are
also posing a threat to India's exports demand. Infact, players like Arvind Mills have already
started feeling the pinch as overseas buyers have started shifting to 'alternative sources', thus
impacting their incremental volume off-takes.

COMPETITIVE RIVALRY

India's logistic disadvantage due to its geographical location can give it a major thumbs-down
in global trade. The country is distant from major markets as compared to its global
competitors like Mexico, Turkey and China, which are in relatively close vicinity to major
global markets of US, Europe and Japan. As a result, high cost of shipments and longer lead-
time coupled with lack of infrastructure facility may prove to be major hindrances. The
fragmented structure of the industry has also stood in the way of achieving true integration
between the various links in the supply chain. The sector has one of the longest and most
complex supply chains in the world, which the larger players are trying to correct by
integrating their operations and improving efficiency levels.

Textiles being a fairly regulated sector till the recent past (quota regime), another
indispensable leg of the above analysis is government regulations. Technology Upgradation
Fund Scheme (TUFS) was launched in FY99 for a period of five years (later extended upto
FY07) to promote the upgradation of the textile and jute industry. The scheme aimed at
providing loans to the sector at internationally comparable rates of interest (5% lower than
the domestic interest rates), which enabled the players to upgrade their technology at lower
cost of capital. Establishment of 'Apparel Export Parks' and fiscal incentives in the recent
budgets also indicate the government's resolve to aid the sector's growth and international
competitiveness.

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As one can comprehend from the above analysis, the potential for the sector's growth are
ample, but the trick lies in competing effectively against rivals. Consolidation of the industry
and delivery of better quality at effective rates and minimum lead time would certainly help
the players surmount all competitive pressures.

Intensity of rivalry among competitors

Products with short life cycles.

·Products with a trend towards improved quality / price.

·Products with high profit margins

In fact, due to the internalization of production in low-cost countries , Marks increasingly

compete aggressively on price Improving quality of their products.

- Processes taking technologies like cloud computing, big data, Internet of things, the sensing
and intelligent robotics.

- Large number of new technologies

- Digitization has shown that is a key to growth in productivity improvements, for use as an
opportunity to create new markets factor.

Companies have a recognized brand and a customer base. To achieve attract and retain
customers, new businesses would have to enter with a strong and attractive investment
products.

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SWOT Analysis of Knits Park:

SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a study

undertaken by an organization to identify its internal strength as well as its external
opportunities and threats. Indian textile and apparel industry have taken SWOT analysis to
identify the strength and weakness of the industry in India.

Strength:

Indian industry has a very strong multi-fiber base and raw material. India ranks third largest
producer of cotton and second largest producer of silk and fifth largest producer of synthetic
fiber and largest producer of jute.

Entrepreneurship:

India has always had very good entrepreneurs which is the backbone of Indian textile
industry. Having many skilled entrepreneurs India is being able to setup lot of textile industry
to help in the growth of the country.

Traditional:

The cultural diversity and rich heritage of the country offers good inspiration base for
designers.

Labor availability:

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The availability of labor is high in our country and with cheap labor. This helps to employ
more number of employees, which will lead to more production and thus helps to improve the
global economy.

Market demand:

Natural demand drivers including rising income levels, increasing urbanization and growth of
the purchasing population drive domestic demand.

Weakness :

Even though there are enough raw material resources available in our country the yield of the
material is low compared to other countries and the quality of the cotton is less compared to
other parts of the world, especially the cotton is highly contaminated.

Other parts of the world have developed new techniques for the improvement in quality and
production technique. India is still following few traditional methods and there is a lack of
technology up gradation because of acceptance.

Because of lack of technology up gradation due to strict laws for labors, long-term
absenteeism, the working efficiency of labor is less compared with other countries and skill
of our labors are less compared with top countries like china and other countries. These are
the reason for low productivity.

For an industry to be successful there has to be a good coordination between the government
and the industry and between industry and the mangers and between managers and
labors/workers. The above-mentioned bodies have non-identical focus and coordinated
strategy.

Inadequate product diversification in Indian industries is a major weakness and they do not
practice manufacturing new products and stick onto the same traditional products.

Opportunities :

 High labor costs abroad

 Unlimited market access
 Unrestricted market
 Shift of production base from west to east
 Growing domestic market

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  Technical textiles innovation

Threats :

 Absence of protections under WTO

 Emerging competition
 Environmental / social issues
 Non-tariff barriers
 SA-8000 standard
 ISO-9001 standard
 ISO-14000 standard
 OHSAS-18000 standard

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PESTLE ANALYSIS OF TEXTILE INDUSTRY
The textile industry grew out of the industrial revolution in the 18th Century as mass
production of clothing became a majority industry. Until the economic liberalization of
Indian economy, the India Textile Industry was primarily unorganized industry. The opening
up of Indian economy post 1990s led to a stunning growth of this industry. But now Industry
has influencing by many factors as political factors, economic factors, social factors,
technical factors, legal factors, and environment factors. Here we will describe all those
factors affected to Textile Industry.

The Working Group on Textiles & Jute Industry for the 11th Five Year Plan (2007-2012) has
studied the major problems being faced by the textile industry.

POLITICAL FACTORS

The management of business enterprises and their policies are considerably influenced by the
existing political systems. And India is a democratic country, there are probably problem of
stability in politics.

Political and Government Diversity:

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The reservation of production for very small companies that was imposed with an intention to
help out small scale companies across the country, led substantial fragmentation that distorted
the competitiveness of industry. However, most of the sectors now have been de-reserved,
and major entrepreneurs and corporate are putting-in huge amount of money in establishing
big facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the
Government has gradually eliminated these restrictions, by bringing down import duties on
capital equipment, offering foreign investors to set up manufacturing facilities in India. In
recent years, India has provided a global manufacturing platform to other multi-national
companies that manufactures other than textile products; it can certainly provide a base for
textiles industry.

And some motivating step taken by the government, other problems still sustains like various
taxes and excise imbalances due to diversification into 35 states and Union Territories.
However, an outline of VAT (Value Added Taxes) is being implemented in place of all other
tax diversifications, which will clear these imbalances once it is imposed fully.

But now the Indian government has introducing measures such as the national technology up
gradation fund and removing the differential taxation scheme which discriminated against
large units.

ECONOMICAL FACTORS

Economic factors such as per capita income, national income, resources mobilization,
exploitation of natural resources, infrastructure development, capital formation, employment
generation, and industrial development influence textile industry.

Textile industry provides one of the most fundamental necessities of the people with huge
value-addition at every stage of processing.

Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in
demand with its ethnic, earthly colored and many textures. The textile sector accounts about
30% in the total export. This conveys that it holds potential if one is ready to innovate.

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The textile industry is the largest industry in terms of employment economy, expected to
generate 12 million new jobs by 2010. It generates massive potential for employment in the
sectors from agricultural to industrial. Employment opportunities are created when cotton is
cultivated.

Current Scenario

Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the
US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh
and Japan. The name of these countries with their background can give thousands of insights
to a thinking mind. The slant cut that will be producing a readymade garment will sell at a
price of 600 Indian rupees, making the value addition to be profitable by 300 %.

SOCIAL FACTORS

Managers and policy makers cannot disregard social variables like education, knowledge,
rural community norms and beliefs which are predominant in India, especially in the rural
society while cultural differences are unthinkable for any international manager or even an
urban Indian manager. Textile industry of India based on cotton and cotton as the agriculture
product, which found in rural areas so the social responsibility of the textile industry. Social
stratification plays a vital role in rural societies.

TECHNOLOGICAL FACTORS

Technology is one of the most important factors of textile industry. That is why the
government, in its industrial policy resolutions, industrial licensing policies, MRTP and
FERA regulation, and in liberalization policies, assigned great importance to sophisticated
technology and technology transfer.

The Working Group on Textiles & Jute Industry for the 11th Five Year Plan (2007-2012) has
studied the major problems being faced by the textile industry which include:

1. Structural weaknesses in weaving and processing,

2. Fragmented and technologically backward textile processing sector,
3. Fragmented garment industry,
4. Inadequate capacity of the domestic textile machinery manufacturing sector,

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 5. Inadequate training facilities in textile sector.

The Government has undertaken a series of progressive measures like introduction of

Technology Mission on Cotton (TMC), Technology Upgradaiton (sp) fund Scheme (TUFS),
Scheme for Integrated Textile Park (SITP), reduction in customs duty on import of state-of-
the-art machinery, Debt Restructuring Scheme, setting up of Apparel Training and Design
Centers (ATDCs), 100% Foreign Direct Investment in the textile sector under automatic
route, setting up of National Institute of Fashion Technology (NIFT) etc, for upgrading and
strengthening the textile sector in India.

At present, the textile industry is undergoing a substantial re-orientation towards other then
clothing segments of textile sector, which is commonly called as technical textiles. It is
moving vertically with an average growing rate of nearly two times of textiles for clothing
applications and now account for more than half of the total textile output. The processes in
making technical textiles require costly machinery and skilled workers.

LEGAL FACTORS

Legal environment plays very vital role in textile industry. Laws relating to industrial
licensing, factory administration, industrial disputes, monopoly control, and foreign exchange
regulation are examples of legal business environment in India.

Textile industry has suffered by legal rules as unfavorable labor laws. Government has
created strong labor laws. In India, labor laws are still found to be relatively unfavorable to
the trades, with companies having not more than ideal model to follow a ‘hire and fire’ policy

And other factors are lack of Trade Membership, which restrict to tap other potential market.
And also lacking to generate Economies of Scale is another legal factor to this industry.
Government has charged higher Indirect taxes, power and Interest rates. The uneven supply
base also leads barriers in attaining integration between the links in supply chain. This issue
creates uncontrollable, unreliable and inconsistent performance. The liberalization being
carried in the 1990’s also ushered in a new era for India’s textile industry. It led to the
relaxation of many of the constraints previously imposed on the textile sector. Licensing was
removed in the early 90`s by the Statement of Industrial Policy and the Textile Development

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and Regulation Order. In 1995, India signed the General Agreement of Tariffs and Trade
bringing some of its policies at par with those at an international level.

At present, the single biggest factor influencing the textile industry appears to be the end of
the textile quota regime of quantitative import restrictions under the multi-fiber arrangement
(MFA) on 1st January, 2005 under the World Trade Organization (WTO) Agreement on
Textiles and Clothing. The removal of quotas, seen as an opportunity by many, including the
government, is driving investment and liberalization in the textile space.

India can also grab opportunities in the export market. The industry has the potential of
attaining $34bn export earnings by the year 2010. The regulatory polices is helping out to
enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs.

ENVIRONMENTAL FACTORS

Environment protection and preservation is responsibility of the textile industry. The

Government of India is committed to the preservation of ecological balance.

Pollution free technology and recycling of industrial wastes and effluents has become a
corporate concern now. Legislative measures have been adopted for this purpose, important
legislations in this connection are-

The water (preservation and control of pollution) Act, 1974 provides for the prevention and
control of water pollution. The Air Act, 1981 aims at preventing, controlling, and reducing air
pollution. The environment (protection) Act, 1986 ensures the protection and improvement in
the quality of the environment.

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 CHAPTER 2:
COMPANY PROFILE

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INTRODUCTION
KNITS PARK commenced as a small garment manufacturing unit in the year 2009, initiated
exporting three years. The company exhibits fully integrated knit wear setup starting from
spinning, knitting, dyeing, finishing, embroidery, printing and garmenting.

Our customers and their satisfaction is our potency. They can step in freely and step out
gladly with their dream products. At Knits Park, we manufacture knitted garments for all age
and all times. Since inspection our company committed to the work it does, pursues the
systems and is diligent with regard to employee welfare.

We assure absolute comfort to our customers at Knits Park, which is why they enjoy and
beckon our services. Knits Park has been mastering “Whatever your style maybe, we bring
you the big fashion trends “.

Knits Park

Knits Park is involved in the production of fashion wear and night wear for men, women
and children. Mr. Kathiresan, a dynamic entrepreneur’s vision under whose leadership the
company gained recognition for its quality products.

“Solid commitments and perseverance, with unique background and deep routed
infrastructure, we have been able to develop unequalled expertise in the techniques, process
of production and quality control. With relentless pursuit of excellence we have created a
niche in the international market with the premium range of apparels.”

Postal Address : KNITS PARK,

S.F.No.1/4,2/1, B Part,

Evergreen Avenue, Iduvai Road,

Iduvampalayam,

Tiruppur-641 687.

Tel : 9789496505, 9865375342

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 Email : knitsparkkathir@gmail.com

TIN No : 33862325436

CST No : 1034429

BANK : HDFC BANK,

Tirupur.

VISION OF OUR COMPANY

The ground work of the intensification over the last two decades is the profound
understanding of economic perceptive and customer need, and the knack to transform them
into customer desired products through foremost quality inspection. With vertically
integrated framework we manufacture and export vast range of categories complying with
term bound.

We ensure garments look their best and are manufactured in any environmentally friendly
manner with the professional approach, reliability and creativity . High quality in the
products and commitments to delivery schedules goes long way in establishing a good
customer – manufacturer relationship.

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PRODUCTS MANUFACTURED

 knit wear
 Men’s wear
 Men’s t-shirt
 Men’s pajamas
 Men’s jogging suit
 Men’s sports wear
 Men’s collar shirts
 Men’s pullovers
 Men’s boxer shorts.

OUR FACILITIES

We are one of the fastest growing manufacture and exporter of knitted garments. Our factory
and administration is located at Iduvampalyam, Tirupur. We produce best quality,
competitive price , excellent customer service and promote delivery can only survive in the
market .

We have our imported knitting unit for all kind of knitting in goods quality imported
machines. We have our biggest production own area and having all new branded stitching
machines.

DIVISIONS

 Spinning division
 Knitting
 Dying
 Open width compacting
 Embroidery and printing
 Finishing

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TEXTILE COMPANIES IN INDIA

There are many textile companies in India as –

 Reliance Textiles- Reliance Textiles is one of the major textiles Company. That is in
business of fully integrated man made fiber. It has capacity of more than 6 million
tones per year.
 Vardhaman Spinning-Vardhman deals in spinning, weaving and processing segment
of the industry. It is planning to double its fabric processing capacity to 50 million
meters.
 Welspun India is Asia’s largest terry towel manufacturer and fourth largest in the
world. It supplies to leading global retailers, meeting 15 per cent of Wal-Mart’s terry
towel requirements, 85 per cent of Tom Hilfiger.
 Alok Industries has the largest processing capacity in India and offers fully
integrated facilities for yarn text rising, weaving, knitting, processing, made-ups and
garments. It has initiated plans to expand capacities across all segments by investing
Rs. 10 billion.
 Arvind Mills boasts of a wide product range in value added fabric, from fabric to
garments in denim, shirting and knits.
 Gokaldas exports have more than 40 factories spreading in 37 locations in India,
manufacturing more than 2.4 million garments per month.

Other major players like Raymond, Siyaram silk mills, mahavir spinning mills etc. have also
shown strong performance in the past two years.

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 CHAPTER 3-

ORGANIZATION DESIGN

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ORGANIZATION DESIGN

Organization structure gives a clear view of the roles and functions of the organization, its
process, delivery and corporate entities. The responsibilities of different group leaders,
coordinators and experts can be analyzed.

OBJECTIVES OF AN ORGANIZATION STRUCTURE

1. To focus on timely delivery of committed products

2. To enhance productivity of the organization
3. To achieve low operating costs
4. To promote coordinated teamwork culture within the organization
5. To recognize and reward outstanding performance of groups and individuals

For most companies, the design process leads to a more effective organization design,
significantly improved results (profitability, customer service, internal operations), and
employees who are empowered and committed to the business. The hallmark of the design
process is a comprehensive and holistic approach to organizational improvement that touches
all aspects of organizational life, so you can achieve:

 Excellent customer service

 Increased profitability
 Reduced operating costs
 Improved efficiency and cycle time
 A culture of committed and engaged employees
 A clear strategy for managing and growing your business

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ORGANISATION STRUCTURE OF THE COMPANY

Managing Director (Karthi)

General Manager
(PalaniSamy)

Purchase Store Production MarketingD Accounting Sales

Department Department Department epartment Department Department

Personnel Maintenance Quality Control

Department Department Department

Supervisor Assistant

Labours /
Worker

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  The Managing Director is responsible for the performance of the company, as dictated
by the board's overall strategy.
As the Managing Director’s responsibilities include: formulating and successfully
implementing company policy; directing strategy towards the profitable growth and
operation of the company; developing strategic operating plans that reflect the longer-
term objectives and priorities established by the board; maintaining an on-going
dialogue with the chairman of the board and putting in place adequate operational
planning and financial control systems. Managing director will be ensuring that the
operating objectives and standards of performance are not only understood but owned
by the management and other employees; closely monitoring the operating and
financial results against plans and budgets; taking remedial action where necessary
and informing the board of significant changes; maintaining the operational
performance of the company; monitoring the actions of the functional board directors;
assuming full accountability to the board for all company operations; representing the
company to major customers and professional associations; building and maintaining
an effective executive team.
 General Manager is to be responsible for all aspects of a fashion retail company's
operations. Fashion retailers that cover an extensive area with multiple locations
require that each General Manager be responsible for a portion of the overall area.
The General Manager will plan, direct and coordinate various aspects of their
operating area. The General Manager of the retail area will ensure that operations run
smoothly and according to fashion retailers company policy. The General Manager
will ensure that the vendors and suppliers of the fashion retailer are properly
compensated and continue to meet the needs of the fashion company. The General
Manager will usually report to an executive staff member of the retailers head office
such as a Director or Chief Operating Officer.

The General Manager within the fashion retail industry ensures that matters related to finance
and transactions are within their supervision.

 One of the departments that has the strongest relation with design and works with it
constantly is the purchasing department. The head of this department is the
purchasing director, who leads the purchase team.

28
 The responsibilities of the purchasing director include defining the product categories,
the quantities to be purchased for each model, qualities and prices for each style and
the exact date these products should arrive to the stores. The director is also
responsible for managing, improving and updating the network of suppliers.

The purchasing director leads the supplier or product manager, the textile buyer and the
quality team or technician.

29
 CHAPTER 4:

FUNCTIONAL DEPARTMENTS

30
FUNCTIONAL DEPARTMENTS

PURCHASE DEPARTMENT

Purchase is the acquisition of the something, payment and it is made by business for resale or
for use in the production. It is managerial activity. Purchase of raw materials is the virtual
function of every company. The price of production mainly depends on the cost of raw
materials in the order to reduce the cost of production. The purchase should be made
carefully like proper selection of appropriate supplier , inspection of incoming materials etc.,
purchasing manager and supervisor involved in this process.

Yarn is the main raw material purchased from mills. The purchase yarn are send for further
process like spinning, knitting , dying , compacting and printing.

SPINNING DEPARTMENT

The company commenced operation with manufacturer of grey, gassed, mercerized and dyed
cotton yarn .

FIBRE SPINNING – Spinning is the twisting together of fibers to form yarn. Earlier fiber
was spun by hand using simple tools like spindle and distaff. Later the use of spinning wheel
gained importance. Industrial spinning started in the 18th century with the beginning of
industrial revolution. Hand spinning remains popular handicraft .

INDUSTRIAL SPINNING - Preference of equipment, the economic implication and the

fibers to be cannot be used to make clothes in their raw form. For this purpose, they must be
converted into yarns.

The process used for yarn information is spinning. Spinning by hand was the slow and
laborious process. Thus, many implements and methods were invented for making it faster
and simple. Eventually, the techniques were refined and industrial spinning started
manufacturing yarn in various ways. The methods selected depend upon the factors such as
manufactures used and the desired property of yarn to be produced. Ring method is oldest
and the most used technique.

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KNITTING DEPARTMENT

INDUSTRIAL KNITTING PROCESS

It is a known fact that the main material for fabric construction is yarn. Knitting is the second
most frequently used method, after waving that turns yarns or threads into fabrics.

It is versatile technique that can make fabric having various properties such as wrinkle-
resistance, stretch ability, better fit, and were particularly demanded due to rising popularity
of sportswear and casual wears. As a present day, knitted fabrics are used widely for making
hosiery, underwear, sweaters, slacks, suits and coats apart from rugs and other furnishing.

KNITTING INDUSTRY

Knitting industry is a very complex one. It has two primary areas having their own sub-
division of specialization. One of the key segments of knitting industry manufacturer knitted
goods for garment manufacturers, sewing centers and customers among others. The other one
produce fixed apparels such as sweaters, underwear etc., .

BASIC PRINCIPLE OF KNITTING

The knitted fabric maybe single yarn which is formed into interlocking loops with the help of
hooked needles. According to the purpose of fabric, the loops maybe loosely or closely
constructed. Crocheted fabric is the simplest example of knitting where the chain of loops is

32
constructed from a single thread with the help of a hook. As the loops are interlocked in the
knitted fabric, it can stretch in any direction even when low graded yarn having little
elasticity is used.

BASIC CONTRUCTION OF KNITTING FABRIC

The construction of knitting fabric is accessed by number stitches or loops per square inch.
When the interlocking loops run length wise, each row is called a wale that corresponds to
the direction of graph warp in woven fabrics. When the loops run across the fabric, each row
is called course that corresponds to the filling or weft in woven fabrics.

A knitted fabric having 50 loops or stitches in one stich of width and 60 sloops in the one
inch of length will be said to have 50 wales and 60 course.

IMPORTANCE OF NEEDLES IN KNITTNG PROCESS

The needle quality also affects knitted fabric’s quality . If the thickness of the hook differs
from one needle to another then the stitches’ will also vary in width. Same is the case with
the loops which vary in length with the needle lengths. Various types of needles are used for
makingdifferent knitted fabrics including latch needle, spring beard needle and compound
needle.

Latch needle has a latch or swinging finger closes onto the hook of the needle as it pulls the
yarn through a loop in order to form a new loop. It is used for jersey and rib knitting.

TRANSPORTATION DEPARTMENT:

The transportation department makes the yarn available to the customers. Thus it adds time
utility to the product as it helps in delivery of yarn to the customers at the right time and right
place. The transportation is generally done through shipment. When the yarn reaches the sea
port, the shipping agent furnishes the shipping documents like letter of credit, bill of lading,
etc. The authorities will check if all the necessary documents are filed. After fulfilling all the
legal formalities the yarn is shipped. In case of local sales, the packed cones are transported
through Lorries.

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PACKING DEPARTMENT:

This is the final stage where the manufactured yarn is packed in bags, cartons, palates and
bales. It’s ready for sale. Packing department is considered as the most important department
because it ensures the safe preservation of the the final products. There are two main essential
roles played by packing department.

2 essential roles-

1. Giving protection to the product.

2. Adding to the aesthetics and sales appeal of the product.

Here the yarn is tested under the UV rays to identify the colour shade and a doss. Packing
method is based on 2 factors-

• Cone size

• Buyer’s or party’s wish

Records maintained by packing department:

• Goods manufactured for the month

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• Invoice which is prepared against the supply order

• Daily stock report

• Transport record.

SALES DEPARTMENT:

The yarn is sold in Cirala, Aruppukotai, Delhi, Calcutta, Nagpur and Ahmedabad. The
packing department deals the sales.

They follow 5 types of sales.

• Direct export

• Merchant export

• Depot sales

• Consignment sales

• Local dealing

DIRECT EXPORT:

The organization directly exports its Yarn to Japan and Italy. No intermediaries are involved.

MERCHANT EXPORT:

Yarn is exported through dealers or agents. Merchant export is done in China and
Bangladesh.

DEPOT SALES:

Depot means store house. The organization does depot sales in Tiruppur, Chennai,
Coimbatore, Madurai and Karur.

CONSIGNMENT SALES:

In this the commission is fixed for the agent. This type of sale is followed in Chirala (A.P),
Nagpur and Maharashtra.

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HUMAN RESOURCE DEPARTMENT

Personal officer is the head of this department. The shift supervisor takes the responsibility of
maintaining the worker’s register. The register will furnish full details about the workers,
their designation, working time, performance, etc. The security at the main gate takes a note
of the people who get in and exit.

The staff supervisor submits the worker’s report to the time officer, which is then checked by

the manager. On the basis of performance their wages are increased or they get promoted.

The duty of the time officer is to take the grievances of the employees to the manager and get
them solved smoothly.

Time card is provided to the workers. They should show it to the security before they get in
the mill. The attendance of the workers is marked in the time card; it helps to calculate the
wages. A separate register is maintained to take a note of the workers who work overtime.

CATEGORY OF LABOURS:

The workers are classified into

• Casual labours

• Temporary labours

• Permanent labours

Casual labours-

They are daily workers and they get salary on a daily basis.

Temporary labours-

They guide or help the workers, hence known as operative labours or assistant.

Permanent labours-

They are the labours who have worked in the mill for a period exceeding 5 years.

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PRODUCTION DEPARMENT

The process and methods used to transform tangible inputs and intangible inputs into goods
and services . Resources are used in this process to create an output that is suitable for use or
has exchange value.

QUALITY CONTROL DEPARTMENT

Quality control emphasizes testing of products to uncover defects and reporting to

management who make the decision to allow or deny product release, whereas quality
assurance attempts to improve and stabilize production and associated processes to avoid, or
at least minimize, issues which led to the defects in the first place. The quality control
department is responsible for the quality maintenance of the thread manufactured. The QC
conducts various tests to identify the strength, quality of the yarn. The following machines
help test the quality of yarn.

• Lea strength tester

• SYS tester

• Uster tester 3

• Stelo tester

• TPI tester

It incorporates a feedback mechanism which explodes the cause of poor quality and helps to
take corrective action.

Records maintained by QC

• Cotton testing

• Wrap reel

• Uster tester

• Classiment standard

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DYEING

 Jigger dyeing machine

 Winch dyeing machine
 Jet dyeing machine
 Padding mangle
 Package dyeing machine
 High pressure high temperature dyeing machine.

SAMPLING DEPARTMENT

Sampling is not just for buyers, but the manufacturers can also derive estimates of yarn
consumption for development of fabric, dyeing, printing, and stitching cost edepartment or a
merchandiser, who works closely with the sampling section to source raw materials, and
processes for developing a quality product for an affordable price. Sampling includes details
like a product/style code or a reference number, color specifications, kind of fabric,
composition, description, quantity, and details of embroidery, buttons, zippers, or any other
sort of accessories used. Hence it can be said that samples of garments work as a bridge
between buyers and the producers. The kinds of samples are.

38
Promotional samples are developed to procure orders from retailers. These are good quality
samples, which use actual accessories and fabrics.

Photo sample are sketch and illustration of garment present in the photo sample sheet.

Fit sample designed to check the measurements, fit, and the style.These samples are tried on
models to check the fitting and the fall of the garment.

Pre-production samplesare the samples, which are made in the production department once
all the above sampling approvals are received.

Shipment samples are sent to the buyer when the completed garments are packed and are
ready to be shipped.

BUSINESS LEVEL FUNCTION AND ITS PROCESS

BUSINESS PRACTICE

• Workforce planning

• Recruitment

• Induction, orientation and on boarding

• Skills management

• Training and development

• Personnel administration

• Compensation in wage or salary

• Time management

• Travel management

• Payroll

• Employee benefits administration

• Personnel cost planning

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• Performance appraisal

• Labour relations.

WELFARE SCHEMES

The following are the various welfare schemes provided by the company:

• Employee provident fund(E.P.F)

• Employee state insurance corporation(E.S.I)

• Employee bonus

• Gratuity fund

Training to Workers

• Quality Control.

• Work Orienting.

• Discipline.

• Safety Measure.

• First Aid.

• Fire Extinguishing Training.

OFFICE TIME

Supports various time events mechanisms like in/out, break times, inter site travels and off
site work. Time Office consists of manpower planning, leave management, shift
management, overtime management, reporting tool and employee self-help application. It is
configurable to suit even most unique time office requirements and work-flows. It is seamless
multi-location system.

40
WORKERS SHIFT

The workers shift is divided into three (3) types and it is on the rotation basis. Half an hour
break will be provided for each shift.

1. I- SHIFT – 6.00 A.M to 2.00 P.M

2. II- SHIFT – 2.00P.M to 10.00 P.M

3. II- SHIFT – 10.00 P.M to 6.00 A.M

4. General Shift – 8.00 A.M to 5.00 P.M

RECORDS MAINTAINED BY HRD

• Individual employee person

• Training programmes

• P.F register

• Discipline records

• Wages and salary

• Leave records

• Service/ promotion/ transfer

• Related to government liaison

• Wages register

• Register of accident.

41
SPREADING AND FORM LAYOUT

FABRIC SPREADING
Fabric spreading is an important task in the garment industry which ensures the proper shape
of the fabric. There are generally two methods to spread a fabric. They are manual and
mechanical. The manual method is kind of time consuming, so most companies prefer
mechanical. In order to ensure proper and smooth fabric spreading, the factors below must be
considered.

 Fabric tension: The fabric lay must be uniform. The lay cannot be loose as it has the
potential to create problem while cutting the fabric.

42
 Fabric Splicing: Splicing must be properly done and accurate. If excess splicing is
done then it would create errors like faulty area and if there is a short splicing then it
would make the fabric as faulty component.

 Static electricity:Static electricity should be removed by earthing or using special oil

between two layers of fabric.
 Stripe and Check matching: Stripe and check should be matched with every ply of
fabric. If it is not looked into then it would create problems in the sewing department.

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  Fabric fault: Fabric faults like missing end, broken pattern, reedy fabric, temple marks
etc must be looked into before spreading the fabric.

Types of fabric lay:

1. According to construction:

 Straight lay: In straight lay each ply of fabric is spread according to marker length,
i.e. all plies can have the same length. In that case only one marker will be used.

 Stepped lay: Ply of fabric lay is not spread according to marker length, i.e. when the
plies are laid up in different lengths- a step can be formed. Different types of marker
are essential for different steps. Its use is very much less because of fabric wastages
and lay making if difficult as well.

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Difference between straight and stepped lay is as follows:

Straight lay Stepped lay

Each ply is spread according to Ply of fabric lay is not spread according
marker length. to marker length.

Mostly used Rarely used

Fabric wastage is less. Fabric wastage is more

Fabric spreading is simple. Fabric spreading is difficult.

One marker is used. Different types of marker are used.

2. According to the direction of spreading

 One way spreading (Face to underside): This method is used for open fabrics. The
face can lie towards the top or bottom, but always in the same direction. If spreading
machines are used, one way laying-up necessitates idle motion because the machine
always begins its run at the same end of the table and must return to this position after
every laying operation.

 Laying-up in pairs (Face to face): This method is also used for open piece goods.
The face side is always laid onto the previously spread face side so that- as in one way
spreading- the machine returns running idle to the working position. The roll of fabric
must be turned before the next piece is laid-up. When using spreading machines, these

45
 consequently require a device to turn the roll after the fabric has been cut off at the
end.

 Lap (Continuous, Zigzag) lying: This method was also developed mainly for
spreading open piece goods. Contrary to one way spreading and laying-up in pairs,
the pieces are not cut off at the lay end but are clamped and then continuously laid in
laps. This is the easiest and most popular way of spreading.

Two other symbols illustrated the laying up of folded and tubular piece goods.

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SPREADING QUALITY SPECIFICATION

Spreading quality must be measured with respect to the following factors :

 Ply alignment : length and width

 Ply tension : stretch slack edge
 Grain alignment : bowing
 Splicing : waste and precision
 Damage placement : economy of placement
 Surface direction and
 Static electricity

HOW TO SPREAD

 Pull the fabric to far end position

 Position the fabric at the far end
 Align the ply
 Cut the ply after each la
 Repeat this process from until the entire roll is spread
 Check ply count

TECHQINUES FOR SPREADING QUALITY

 Removing tension in the lay

 Cutting at the ends
 Reducing fabric waste at the end
 Fabric control during spreading
 Damage remove
 Ends and damaged goods

CUTTING SECTION

Cutting section is one of the most important section for manufacturing garments in garment
factory .There is a process or sequence which is strictly followed in the cutting section of a
garment manufacturing industry.

47
  Precision of cut: To ensure the cutting of fabric accurately according to the line
drown of the marker plan.

 Clean edge: By avoiding the fraing out of yarn from the fabric edge. Cutting edge
must be smooth clean. Knife must be sharp for smooth or clean edge.

 Consistency in cutting: All the sizing safe of the cutting parts should be same of
knife should be operated of the right angle of the fabric lay.

Marker Making:

The measuring department determines the fabric yardage needed for each style and size of
garment. Computer software helps the technicians create the optimum fabric layout to
suggest so fabric can be used efficiently. Markers, made in accordance to the patterns are
attached to the fabric with the help of adhesive stripping or staples. Markers are laid in such a
way so that minimumpossible fabric gets wasted during cutting operation. After marking the
garment manufacturer will get the idea of how much fabric he has to order in advance for the
construction of garments. Therefore careful execution is important in this step.Computer
marking is done on speciallized softwares. In computerized marking there is no need of large
paper sheets for calculating the yardage, in fact, mathematical calculations are made instead
to know how much fabric is required.

48
Sorting/Bundling:
The sorter sorts the patterns according to size and design and makes bundles of them. This
step requires much precision because making bundles of mismatched patterns can create
severe problems. On each bundle there are specifications of the style size and the marker too
is attached with it.

Sewing/Assembling:
The sorted bundles of fabrics are now ready to be stitched. Large garment manufacturers
have their own sewing units other use to give the fabrics on contract to other contractors.
Stitching in-house is preferable because one can maintain quality control during the
processing.

On the other hand if contractors are hired keeping eye on quality is difficult unless the

contactor is one who precisely controls the process.

There are what is called sewing stations for sewing different parts of the cut pieces. In this

workplace, there are many operators who perform a single operation. One operator may make

only straight seams, while another may make sleeve insets. Yet another two operators can

sew the waist seams, and make buttonholes. Various industrial sewing machines too have

different types of stitches that they can make. These machines also have different

configuration of the frame. Some machines work sequentially and feed their finished step

directly into the next machine, while the gang machines have multiple machines performing

the same operation supervised by a single operator. All these factors decide what parts of a

49
garment can be sewn at that station. Finally, the sewn parts of the garment, such as sleeves or

pant legs, are assembled together to give the final form to the clothing.

PINKING SHEARS

Pinking shears are specifically scissors with scalloped blades. They are used to finish seams
by providing an edge that doesnot unravel.

Band Knife Cutting Machine:

Band knife cutting machine is an endless and looks like a loop. It is used for the cutting of
fabric rolls without cardboard-inner tube. It is important instrument of cutting fabrics. This
cutting machine works automatically according to the height of the relevant material. This
machine is with special blower decreases resistance between fabrics and table,which enables
the fabrics be moved easily and be cut precisely. And it could adjustable speed to fit different
fabrics.

Features of Band Knife Cutting Machine

1. It comprises a series of three or more pulleys, which provide the continuous rotating

motion of the knife .

2. An endless knife is used here.

50
 3. Knife is usually narrower than on a straight knife.

4. A large size of table is used to support the fabric & for cutting.

5. Air blower blows the air to minimize the weight of fabric.

6. Balls in air blower help to move the fabric in different direction.

7. Automatic grinder is used.

8. In this method machine is stationary but fabric is movable.

9. High speed r.p.m. motor is used.

10. Required a large space for it.

11. This is like a saw mill cutter.

12. Knife life time depends on fabric type & uses of machine.

Advantages of Band Knife Cutting Machine:

1. Suitable for any types of line.

2. Very large productivity for limited product

3. Such as collars, cuff, placket etc.

4. Automatic grinder grind the knife instantly

5. Air blower helps to reduce the fabric weight which increases smooth movement of
fabric.

6. Possible to cut 900 angle of the lay.

7. Intensity of accident is low.

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Disadvantages of Band Knife Cutting Machine:

1. Not suitable for large component due to the length of the table.

2. Work load is high as machine is stationary & fabric is movable.

3. Running cost is higher.

4. Required fix space.

5. Not possible to cut fabric directly

Shipment Documentation
When Garment manufacturers or exporters of garment buying house want to garment goods
to other countries they need to prepare export documentation. For exporting apparel goods to
the buyer's country normally following documentation are required.

Following documents are required for export garments:

1. Invoice
 Commercial invoice
 Consular invoice
 Customs invoice
2. Packing list
3. Certificate of Inspection
4. Certificate of Origin
5. GSP
6. IEC Certificate
7. Wearing Apparel Sheet
8. Bill of Lading
9. Airway Bill
10. Mate's Receipt
11. Shipping Bill/Bill of Export (for Customs)-
 For export of goods Ex. Bond
 For export of duty free goods
 For export of dutiable goods
 For export of goods under claim of drawback

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 For export of goods under claim of DEPB
12.Letter of Credit
13. Insurance
14. UD (Utilization Declaration)
15. VBF- QA from to supply by the C and F agents
16. Export Permission from EXP

53
CHAPTER 5

CONCLUSION

54
CONCLUSION

The institutional training undergone at Knits Park has helped me to gain practical experience
and knowledge of work environment. It also helped in better understanding of the managerial
tactics, the various functions of the unit, its day-to-day activities and mode of transactions. I
also learnt that the success of a management depends mainly on its emphasis on human
resource.

To meet the challenge Indian textile industry needs to put in a lot of investments to overcome
its inadequacies and to get the best technology, machinery, plant & expertise. It needs to
upgrade and expand our capacity and capabilities to meet the competition not only from
China but also from smaller counties like Bangladesh and SriLanka. These two countries
have benefits of advanced technology and equipment’s and export oriented plants set up by
some industrialized in South East Asia which gives them an edge over Indian exports.
Several policy changes in the jurisdiction of Cento be made for the textile sector to throne
and grow. Indian Government should try safe- guard duty on imports to ensure that the lower
duty does not result in dumping by far east and China. Government should appoint WTO
representative bodies for taking problems at Central state and district level.

55