Chapter-II

REVIEW OF THE LITERATURE

C ontents
2.1. I N T R O D U C T I O N ........................................................ 46
2.2 REVIEW OF LITERATURE:................................................. 47
 Chapter-II

REVIEW OF THE LITERATURE

2 .1 INTRODUCTION:
The research literature review is a system atic, explicit
and reproducible method for identifying, evaluating and
synthesizing the existing body of com pleted and recorded w ork
produced b y researchers, scholars and practitioner s. ^7

The purpose of review of the literature is to a sse s the

research com pleted in the related a r e a s . I t provided to plan
im plem ent the proposed research studies in the light of the
conclusions drawn from the previous work. It also ch eck s the
u n n ecessary repetition. Thus, the review of the literature
provided a base upon which the future research is yet to be
extended. 49

The discipline of Textile Industry h a s been a fascinating

field of research for scholars. There have been quite a good

Fink, A.(2005], "How to Conduct Surveys:A Step-by-Step Guide", 3'^'>Edn. Thousand Oak CA :Sage

■
^8Leady P.D. (1989]. Principal Research. Planning & Design. USA: Longman Pub. Co.

Borg W.R. & J.P.Gall. (1989). Educational Research: An Introduction. USA: Longman Pub. Co.

46
num ber o f research studies, invariably dealing with deferent
aspects of Textile Industry like Cotton Textile Industry,
Powerloom Industry, Handloom Industry, Hosiery etc. The
earlier stu d ies are m ostly historical and descriptive. The
present review of the literature is an attem pt to an alyse the
secondary d ata relating to textile in d ustry with special
reference to powerloom industry.

2 . 2 REVIEW OF LITERATURE:

In 1949 M.M. M ahta studied the trends in size of cotton

spinning and weaving units at different clu sters like B om bay
(Mumbai), Ahm edabad, Madras (Chennai) and other im portant
clusters of the country for the period of 1905 to 1944. He
em phasised on the size of the industrial u n its in w eaving
industry. In his study he concluded th at there have been
im portant changes in the size of in dustrial u n its during
different periods. A comparative stud y about the industrial
u n its in B om bay (Mumbai) and Ahm edabad w as exposed in
the study. He attem pted to m easure the relationship between
size of u n its and their efficiency,

Mehta M.M. (1949). Structure of Cotton Mill Industry of India. Allahbad: Allahbad Central Book
Depot.

47
 After the fifties the empirical studies on cotton textile
industry tended to more analytical than historical or
descriptive. The division of Statistics of the Departm ent of
Research and Statistics of the Reserve B an k of India published
two reports in RBI Bulletin in 1958 and 1959 related to the
profits of the size of com panies in cotton textile industry.

S.V. Chorghade (1976) in his research w ork studied the

“Powerloom Industry In M aharashtra”. M aharashtra state h as
a lion’s share in the growth and developm ent of the Powerloom
industry. He attem pted to undertake a detailed stud y of
structure and problems of Powerloom in dustry in
M aharashtra.

The com ponents of textile industry are the Mill sector,

Decentralised Powerloom Sector and Handloom sector. In
which the decentralised Powerloom sector is the dom inant. For
the study, he covered five im portant clusters of M aharashtra
i.e. 1) Bhiw andi 2) Malegaon 3)Bom bay 4) Ichalkaranji and 5)
Nagpur. About 80 percent powerlooms are concentrated in
Bomaby(Mumbai) and Pune Divisions in w hich Bhiwandi,
Malegaon, Ichalkaranji and Bom bay (Mumbai) are m ost
im portant powerloom centres.

He focused on the problems of the powerloom s industry

in M aharashtra like Finance, Raw m aterial and Marketing.
48
The sm all and medium independent powerloom
establishm en ts face difficulties in obtaining required w orking
capital from the organised financial institutions. Therefore
they have to depend on yarn m erchants. The m arketing of grey
cloth is entirely done at Bom bay (Mumbad) cloth m arket and is
concentrated in the hands of and controlled by a han dful of
cloth m erchants. As far as raw m aterial is concern the w eavers
are m ostly depend from other states. The co-operation
form of organisation has not m ade m uch headw ay in the
powerloom industry,

P.R. OJha in 1978 studied the dividend distribution of

51 cotton textiles companies. He analysed the dividend
distribution of the com panies on the basis of size, region,
ownership group, m anagem ent pattern and age of the
com panies. Textile units located in Ahm edabad region earned
the highest profits while those located in north region earned
the lowest, the Bom bay (Mumbai) region and south region
earned the m edium profits. Com panies m anaged by the
governm ent controllers showed the poorest profitability. ^2

Chorghade S.V. (1976). Powerloom Industry in Maharashtra (Unpublished Ph.D. thesis]. Nagpur
University, Nagpur.

52 Ojha P.R. (1978). Corporate Dividend Policy in Indian Cotton Textile Industry. Allahbad :Kitab Mahal.
pp.75-104.

49
 R. R, A nsari (1984) in his research w ork explained the
m arketing problem s of Powerloom in dustry in M alegaon City of
Nashik District. He has very specifically indicated the
m arketing problem s faced by the Powerloom industry. The
m arketing of the product is of vital im portance for survival and
growth of any enterprise. Clothing is b asic and elem entary
desire of the hum an being. The need is fulfilled by the
handloom w eavers, Powerloom w eavers and textile mills. The
Powerloom industry is the dom inant in the production of
cloth. So the m arketing problems relating to the Powerloom
industry is d iscu ssed in the study.

He studied the organisational structure of the m arketing,

the chann els u sed for the m arketing, preparation for the
m arket and he analysed all the asp ects relating to the
m arketing problem s of the Powerloom industry.

He concluded that the Powerloom in d ustry in M alegaon

suffered from two m ain hindrances - first shortage of capital
and secondly difficulty in developing their organisation in line
with the growth of their volume. The m anufacturers face not
only the problem of m arketing their product b u t also squeezed
by the yarn dealers at the time of p u rch asin g of raw m aterial.

He suggested that the Powerloom w eavers in Malegaon

suffer the shortage of capital and low productivity becau se of
50
sm allness. In su ch situation the owners of Powerlooms should
form co-operative society for the purpose of p u rch asin g the
yarn at large scale and selling the product at higher rate.

Onikar Goswami (1985) h as m ade an an alysis of

dem and and supply in the cotton textile industry. According to
him, only the Powerloom sector and the pure spinning u n its
seem to be doing well. Sixty five to seventy percent of
com posite m ills and the entire handloom sector are sick.54

From an analysis of the dem and aspects in the textile

industry G osw am i reached the following conclusions;

1) There h as been an overall stagn an cy in the per capita

dem and for textiles.

2) There h as been a rem arkable sw itch from cotton to

non-cottons and blended fabrics.

3) The elasticity of demand for synthetic and blended

cloth have been greater than those of cotton.

Ansari R.R. (1984). A Study of Marketing problems of Powerloom Industry in Malegaon City ofNasik
District (Unpublished M.Phil dissertation}. Nagpur University, Nagpur.

Omkar Goswami (1985) "Indian Textile Industry 1970-1984 :An Analysis of Demand and supply",
Economic and Political Weekly,X X ,No.38, Sept. 21 1985,1610-1612

51
 V. s. M angnale (1987), in his research w ork abou t
labour absenteeism in Textile Industry in Solapur, attem pted
to identify the cau ses of labour absenteeism in textile town of
Solapur. He studied the nature of absenteeism and highlights
the different dim ensions of the problem. He classified the
cau ses of absenteeism as; 1) Lay-Off 2) C a su a l Leave 3) Leave
with wage 4) Authorised Leave 5) U nauthorised Leave 6) Sick
Leave 7) A ccidents 8) Strike 9) Others. Majority of the w orkers
take m axim um advantage of the sick leave benefit on the b asis
of the m edical certificate from the authorised doctors. M any
workers get substan tial am ount of m onetary gain from sick
leave un der different medical schem es.

He described the factors associated with absenteeism .

The m ain factors responsible for the absenteeism are;

a) Econom ic status of the sam pled w orkers

b) Personal factors

c) O perational factors

d) Perception level factors

V.S. Mangale (1987). Study of Labour Absenteeism in Textile Industry in Solapur (Unpublished Ph.D.
thesis] Shivaji University, Kolhapur.

52
 B.M. Dolle (1992) in his research w ork revealed the socio
- econom ic problem s of powerloom in d u stry in Malegaon. He
studied the powerloom industry of M alegaon for the period of
1935 to 1985. The main conclusions of the study are; the
powerloom in dustry in Malegaon h a s seen m any u p s and
downs in its development and it is one of the im portant
industries of M aharashtra. The powerloom in d u stry in
Malegaon h a s glorious past and bright future. There are m any
socio econom ic problems in the powerloom in d ustry of
Malegaon like scarcity of the finance, m arketing problem s,
labour problem s etc.^^

D. C. M athur in his book “Personnel Problem s and

Labour W elfare : A study of cotton textile in d ustry (1993)” had
explained about personnel m anagem ent in the cotton textile
industry. He explained that for the econom ic resu lts the
m anagem ent of personnel is very im portant. In m anaging
personnel the role of welfare activities can not be em phasised.
Personnel m anagem ent and labour welfare are im portant for
sm ooth runn in g of industrial concern.

Dolle. B.M. (1992). A study of Socio Economic Problems of Powerloom industry in Malegaon
(Unpublished Ph.D. thesis] University of Pune, Pune.

Mathur. D. C. (1993). Personnel Problems and Labour Welfare:A study of cotton textile industry.
New Delhi; Mittal Publications. p.l45

53
 B. Sabhoo (1993) in his research w ork he explained the
problem s and prospects of textile in d u stry w ith special
reference on the productivity of large and sm all scale textile
industries. He attem pted to throw light on the factor
productivity of the textile industry.

He explained that textile in dustry is one of the essen tial

consum er goods occupies a place of pride in the econom y.
This in d u stry in its traditional form h as been found in m any
parts of the country. Modern mill sector caters to the need of
the m ass. In view of the growing dem and for the variety of
textile products and the increasing role of synthetic fibre,
modern textile industry has bright future. In the stud y
productivity h a s been com puted in term s of output per
employee and invested capital and value added per employee
and invested capital. He concluded th at output per employee
in large firm s is greater than that in m edium firms. The output
per capital in co-operative mills and value added per capital in
un its are the highest. O utput and value added per employee in
private firm s are the highest com pared to th at of public and
private units.

B. Sabhoo h as concluded that the textile in d ustry suffers

the problem s of (a) Infrastructural facilities like availability of
electricity, transport, godowns etc. (b) skilled w orkers and

54
trained personnel (c) efficient m anagem ent (d) adequate and
timely su pply of cheap finance (f) proper m arketing ch an n els
and (g) effective dem and for the p r o d u c t s .

Y. N. Rao in his book “Financing of Cotton Textile

Industry in India (1994)” had studied all the asp ects related to
the finan cial position of the India textile industry. He
concluded th at review should be done on the control of the
centralised sector of the textile industry. The excise duty
should be fixed on the fabrics for the progress of the
decentralised sector of the textile industry. He h a s clearly
m entioned th at the government should reduce taxes & duties
on the textile industry. He stated that, the crucial problem
faced b y the textile industry is m odernisation of the industry.
The governm ent should frame the policy of the incentives for
the investm ent in the textile industry. He m entioned that
textile in d u stry in future is required to look for new sou rces of
short and long term finance.

Iranna T.Hatti (1996) in his research w ork h as

explained the economic problems and prospects of cotton
powerloom industry in Bom aby (Mumbai) - K arn ataka region.
He em phasised on the importance of decentralised powerloom

5® B. Sahoo (1993). Problems and Prospects of Textile Industry. New Delhi: Mittal Publications, p.l54

Rao Y. N. (1994). Financing of Cotton Textile Industry in India New Delhi: Ashish Publishing House.

55
sector in Indian Textile Industry. The growth of powerloom
industry the Bom bay (Mumbai) - K arn ataka region is really
escalated. The region occupies the largest concentration of
cotton powerloom s and w eavers’ com m unity. The whole stu d y
focused on the functioning and problem s of the powerloom
industry in the region.

T extile Committee, Mumbai conducted a study on

various asp ects of the powerloom sector of textile in d ustry in
M ah arashtra in 1996. The study throws light on the pattern of
yarn consum ption in the powerloom sector of the
decentralised sector of the textile in dustry in M aharashtra. It
contains b asic information about the stru cture and
consum ption pattern of yarn in the im portant clu sters in
M aharashtra.

U norganised powerloom industry, m ainly situated in the

state of M aharashtra. Most of the powerloom s are
concentrated in Bhiwandi, Ichalkaranji, M alegaon and
Sholapur. In Bhiwandi, Ichalkaranji and M alegaon, m ostly
u sed type of looms are Plain looms while in Sholapur
Jacqu ard loom s are used. A large share of the cotton yarn in
the powerloom sector fall, in the count group of 30s and 60s.

Iranna T. Hatti. (1996). A Critical review of economic problems of cotton powerloom industry in
Bombay - Karnataka Region :A case study of cotton powerloom industry in Rabkavi-Banhatti Area
(Unpublished Ph.D. thesis]. Shivaji University, Kolhapur.

56
The dem and for yarn is influenced by the fabric variety w hich
is required to be m anufactured. The m ajority of the w eavers
are doing the w ork on job basis. The jo b w orkers are w orking
under m aster weavers. The dem and for yarn for a particular
count is rather inelastic i.e. fluctuation s in the price of the
yarn do not affect the demand of that yarn. Over 60 percent of
the cloth produced is made out of cotton yarn.^^

In 19 9 7 P. S. Mohana K um ar an alysed the cotton

Textile Industry in the context of productivity of difference
sectors. The stu d y analysed the relative perform ance of textile
mills of public, private, co-operative and sm all & m edium
firms in a unified framework. He concluded that the
productivity of labour, capital, spindle and raw m aterial show s
the am ount of gross value added per u n it of each factor. He
explained th at the larger the size, the greater is the capital
intensity and lower the capital productivity and the higher the
labour productivity also do not hold well in analysis. He
attem pted to explain that there is considerable evident that
private enterprises are more often relatively efficient in term s

Textile Committee. (1996], A survey of various aspects of the powerloom sector of textile industry in
Maharashtra. Mumbai: Textile Committee, GOI.

57
of m ost of the partial factor productivity, financial cind
technical efficiency over the public sector counter parts.

Kum ar h a s recommended the following rem edies for the

im provem ent in the productivity.

1) The Governm ent has to take steps to reserve coarser

cou n ts for w eak units.

2) Techn ical study cell may be created in each unit.

3) Elim ination of political and local interference in the

public enterprises.

4) To increase the productivity system atic training on

efficient production m ethods, in culcating work culture,
team spirit among lower, middle and top level
m anagem ent are all positive steps.

5) Rationalisation of work loads, w ork assignm ents and

other conditions of service of w orkers is the
im plem ented as per standards.

6) A bsenteeism is the major problem of textile industry.

To avoid this, there should be m utu al agreem ent
am ong workers, entrepreneurs and governm ent.

62 P.S. Mohana Kumar. (1997). Cotton Textile Industry. New Delhi: Reliance Publishing House. p.l97

58
 The Office o f the Textile Commissioner, M um bai h as
published “H andbook on Powerloom” in 2006. The handbook
presents a com prehensive overall detailed scenario of
Powerloom Industry located in the decentralized sector in
India. This also covers the history of powerloom s to the latest
technology presently available along with the techno-econom ic
an alysis of the products. It contains u sefu l inform ation su ch
as statu s of Indian Powerloom industry, future trends,
programm e of action for m odernization, steps in
starting/m odernizing Powerloom unit, good w eaving practices,
modern weaving, different types of w eaving technology, quality
param eters, export procedures, support services offered by
various State Governm ents and other agencies etc.

Dr. A. K. R a k sh it (2007) explained the overview of

Powerloom Industry in India. He focused on the decentralised
sector of powerloom industry. The decentralised sector plays a
vital role in m eeting the clothing needs of the country. The
formation of powerloom industry traced b ack to the handloom
industry. M any handloom weaving clusters, sw itched over to
power driven looms, m ainly for achieving higher productivity
and profit. The conversion of handloom to powerloom started

Textile Commissioner. (2006). Handbook o f Powerloom Industry. New Delhi; Ministry of Textiles,
Govt, of India.
59
from Bhiw andi, Malegaon, Surat etc. The powerloom sector
produces wide range of cloth, both grey as well as processed. It
produces around 19,000 million m eters of fabrics an n u ally
and em ploying over 7 million workers. The m odernisation
process un dertaken by the government h a s widened the scope
of the powerloom industry to further their activity and
profitability. The sector today not only caters to the home
m arket, it exports to major countries across the world.

A nsari A bdul Majid in his research w ork studied the

m anagem ent, organisation and m arketing problem s of
powerloom co-operative societies in M a l e g a o n . He h as
studied the profile of powerloom co-operative societies in
Malegaon, functions of the societies, structure of the societies
etc. He h a s explained the major problem s faced by the
powerloom co-operative societies in M alegaon & suggested
m easures for them.

Rakshit A. K. (2007J. Powerloom Sector in India. Textile Review - Volume 2 Issue 6 June 2007
65 Ansari A.M. (2007). Critical study of the Powerloom Co-operative Societies in M alegaon (with special
reference to the management, organisation and marketing problems] since 1990 - 2 0 0 7 (Unpublished
Ph.D. thesis). Pune University, Pune.
60