CHAPTER - I

INTRODUCTION

India has been in the midst of a great social, political and economic change ever since
reforms were introduced in various spheres of activity. The country has greater confidence to take
on the competition from developed countries and has attracted global investors in ever increasing
measure. The Spinning mill is one of the oldest industries in India. The sector has made significant
contributions in terms of forex earnings and employment and is one of the mainstays of the
economy.

Indian Spinning mill occupies a very important place in the economic life of India. The
Indian spinning mill is one of the largest in the world with a massive raw material and textiles
manufacturing base. Our economy is largely dependent on the textile manufacturing and trade in
addition to other major industries. About 27% of the foreign exchange earnings are on account of
export of textiles and clothing alone.

The textiles and clothing sector contributes about 14% to the industrial production and 3%
to the gross domestic product of the country. Around 8% of the total excise revenue collection is
contributed by the spinning mill. So much so, the spinning mill accounts for as large as 21% of the
total employment generated in the economy. Around 35 million people are directly employed in
the textile manufacturing activities. Indirect employment including the manpower engaged in
agricultural based raw-material production like cotton and related trade and handling could be
stated to be around another 60 million.

A textile is the largest single industry in India and amongst the biggest in the world,
accounting for about 20% of the total industrial production. It provides direct employment to
around 20 million people. There are 1,227 textile mills with a spinning capacity of about 29 million
spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and
handloom sectors as well. The Indian spinning mill continues to be predominantly based on cotton,

1
with about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was
about 12.8 billion about 42 billion.

Textile is one of India’s oldest industries and has a formidable presence in the national
economy inasmuch as it contributes to about 14 per cent of manufacturing value-addition, accounts
for around one-third of our gross export earnings and provides gainful employment to millions of
people. They include cotton and jute growers, artisans and weavers who are engaged in the
organized as well as decentralized and household sectors spread across the entire country.

The spinning Industry plays an important role in the country. At present the contribution
of the spinning Industry to GDP is about 4%. Because of the spinning Industry. Because of the
rabid growth get employed in spinning industry in domestic sector apparel industry is expanded to
provide direct employment to 40 million by More than 35 million people get employment and it
is the second largest employment provides in India after agriculture of this 29 million people get
in spinning industry and balanced 6 million in apparel industrythe year 2010. The size of the
spinning and apparel industry is esteemed to be US $ 80 billion comprising US $ 40 billion
comprising U S $ 40 billion in domestic of balance in export by 2010

2
1.1 OBJECTIVES OF THE STUDY

1) To study the different phases of the company.

2) To study in detail, the entire structure and functioning of the company.
3) To understand about the functioning of each department in detail.
4) To gain new knowledge about the organization.

5) To understand how the various department are inter connected with each
achieving the organization goals.

1.2 REASON FOR SELECTING COMPANY

Researcher very interested in cotton mill industry. So I have chosen platinum textiles ltd
which is very near to my place and having good understanding with employees and management
to undergo a study on entire production process and get the practical information about production
and operations that followed by the company.

3
1.3 STUDY PLAN

S.no Date Department Managerial Development

01-6-19 Blow room, Carding, SB2

to PRODUCTION Unilab, comber, Drawing,
1 10-6-19 simplex, spinning cone winding.

11-6-19 Decision to purchase, new assets

2 to PURCHASE raw material and high quality
16-6-19 inputs.
17-6-19 Financial position of the
to ACCOUNTS AND spinning mill balance sheet
3 21-6-19 FINANCE trading account and profit and
loss account.
22-6-19 Sales operation, Inventory
SALES AND management, Production
4 to MARKETING forecasts Control, sales
25-6-19 promotion area evaluating the
marketing pulse.

26-6-19 Interpersonal skills, problem

5 to HUMAN RESOURCE solving skill, and conflict
30-6-19 management skill. Study about
recruitment, monetary benefits,
training and promotion.

4
1.4 CHAPTER SCHEME:

 The first chapter contains introduction which explains objectives of the study, reason for
selecting company and study plan
 The second chapter focus on industry profile of the present study. This chapter also
include the world, national and state scenario of industry.
 The third chapter contains company profile which focus on objectives of the company
and development from inception future plans and last 3 years’ performance of the
company.
 The fourth chapter provides details about each department like production, HR and
marketing etc.
 The fifth chapter contains observations, suggestions and conclusion.

5
 CHAPTER - II
INDUSTRY PROFILE

2.1 WORLD SCENARIO

The U.S. model, includes supply, demand, and market equilibrium for raw fibers (cotton and
man-made) and textile products (cotton and non-cotton). The inclusion of textile models enables
the estimation of cotton and man-made fiber mill use with appropriate linkage between the cotton
and textile sectors. On the U.S. supply side, cotton production is divided into four regions: Delta,
Southeast, West, and Southwest (irrigated and dry land). Regional production is modeled using
separate acreage and yield equations. India planting area and yield is modeled according to four
productive regions as well: South, Central, North, and Others. Data used in this study was compiled
from various sources including the Food and Agricultural Policy Research Institute (FAPRI) for
the historical and projected macro variables (real GDP, exchange rate, population, and GDP
deflator); Production, Supply & Demand (PS&D) database of the Foreign Agricultural Service
(FAS) for cotton acreage, yield, production, mill use, ending stocks, and trade; and the FAO World
Fiber Consumption Survey and Fiber Organon for fiber mill consumption and man-made fiber
statistics.

The world’s four largest cotton producing and consuming countries are china, the United
States, India and Pakistan. Together, these four account for around 60 percent of world production
and consumption. The next three largest consuming countries are Turkey, Brazil, and Mexico, all
of which produce cotton but are often large importers nonetheless. Cotton is mostly a northern
Hemisphere crop, but about 10 percent of the world’s output comes from south of the Equator-
primarily Brazil and Australia. Developed countries account for more than 40 percent of global
consumer end-use of cotton end-use is exported from developing countries to other developed
countries. Both production of cotton and its export patterns are distorted very considerably
by subsidies to both as well as by tariffs on cotton, spinning and clothing imports. Cotton
usage, on the other hand, is distributed across countries both production of cotton and its
export patterns are distorted very considerably by subsidies to both as well as by tariffs

6
on cotton, spinning and clothing imports. Cotton usage, on the other hand, is distributed across
countries roughly in proportion to their volumes of spinning production

2.2 NATIONAL SCENARIO

GROWTH OF SPINNING MILLS IN INDIA

The "deindustrialization" of the Indian economy and of India's spinning industries in

particular, is the subject of a major historiographical debate. While some scholars have claimed
that colonial rule permanently undermined indigenous production, others have argued that
handloom weavers were able to adjust to colonial conditions and therefore carved out new niches
for themselves. Hanretty (1991) examines handloom weavers in one part of India, an area that is
now Madhya Pradesh, between 1800 and Indian independence in 1947. Eschewing a simplistic
attachment to either of the two main positions, Hanretty shows that while handloom weavers as a
group faced great competition in the mid-19th century from imported cloths, some specialist
producers were able to cope better than others, mainly because of their production of specialized
products and the security given by them enhanced caste status. The real challenge came in the 20th
century as India's own mills subordinated weavers to middlemen as the former became more
dependent on mill-spun yarns.

When the British left India in 1947, the economy was only slightly more industrialized than
when they had taken formal control nearly one hundred years earlier. Wolcott (1997) asks, were
they responsible for the lack of development? Two strains of argument suggest they were. The
first, primarily associated with Amiya Bagchi, faults the British for not giving sufficient protection
to domestic industries.

The independent india was ruled by government backed up different political parties
originated from different schools of thought. those government have made very sincere effort to
put industry on growth path realizing industrialization can defined improved wealth of nation and

7
same time living standard of the people. Since independent, the government of india enunciated
two industrial policy resolution and several industrial licensing policy to give impetus to indian
industry the prime objectives behind enacting these policies were to provide justice.

After attaining independence on april 1948 the indian government enuciatede its first ever
industrial policy resolution.its main objectives to increase the wealth maximization of nation
through rapid industrialization and thus raised the national and per caipta income.it also
emphazised the need for acceleration production to meet needs ogf growing population and
creating more employment opportunities.

A high level delegation global spinning mill industry comprising representative from us
Switzerland Pakistan brazil and Germany is slatede to visit india this month. These delegates are
members of the spinners committee of headquarters. The international textile manufactures
federation a leading international association for world textile industry.

The main objectives of the spinner comitee is to support the development of quality cotton
fibers to suit modern spinning requirement and promote mechanical testing of raw cotton. with a
view to taking of Indian cotton scenario the delegates will visit modern farms upgrade ginning and
pressing factories and textile mills in India.

8
GLOBAL TEXTILE TRADE IN INDIA
The share of India in global textile trade is more than 3 percent. It is predominantly cotton
based while world over the trend is shifting towards Man Made Fibers and blends. In the total
world exports of MMF textiles, the share of India is 3.51 percent as compared to China with 8.35
percent, Japan with 5.75 percent and Indonesia with 7.60 percent. Besides, the unit price realisation
of Indian exports is one of the lowest which is mainly due to low value addition, as bulk of India’s
exports is in the form of yarn, Grey fabrics and low value garments. Though the majority of the
Indian textile machinery in weaving and processing is obsolete, the spinning sector has been fairly
modernised.

INDIAN SPINNING INDUSTRY

Indian Spinning Industry has gone from strength to strength since a very long time now as
it was the hub of cotton manufacturing. Cotton is not only consumed to the highest extent in India
but it has also become one of the most profitable textiles in the export industry.
Spinning in India can be classified into 2 categories: medium and long staple. But there was a
shortfall in the 'extra-long' category that continued for many years. There was a massive downfall
in the cotton spinning in India during 2004-2005.

ROLE OF INDIAN SPINNING MILLS

Spinning mills across India would continue production cut till mid-June to use up cotton
yarn inventories of 500 million kg. A week after the `70,000 crore Spinning industry voluntarily
cut its production by 33 percent, there has 35 has been a marginal movement in the stocks that
have remained unsold owing to price volatility. "The industry is in a hand-to-mouth situation. We
have no option but to extend our production cut till the unused stocks find takers," said chairperson
of Confederation of Indian Spinning mill (CITI) and MD of Ginni Filaments, Shishir Jaipuria.
Spinning contributes $10 billion to India's $62 billion textile and clothing sector. Price volatility
of cotton that touched a record of 63 percent high of `62,000 per candy in the 2010-11 crop season
and then came crashing at `44,000 per candy, destablised the prices of yarn that moved from `204
per kg in October to `253 per kg in March and then fell `185 per kg in May. India produced 3,500
million kg of cotton yarn and maintains a stock enough for 10-15 days.

9
SHARE IN GROSS DOMESTIC PRODUCT (GDP)

Its importance is underlined by the fact that The Spinning mill accounts for around 4
percent of Gross Domestic Product, 14 percent of industrial production, 9 percent of excise
collections, 18 percent of employment in the industrial sector, and 16 percent of the country’s total
exports earnings. The Spinning sector, which is integrated to the Spinning mill accounts to 22.4
percent of the total value of the Spinning mill3. GDP has been quite beneficial in the economic
life of the country. The worldwide trade of textiles and clothing has boosted up the GDP of India
to a great extent as this sector has brought in a huge amount of revenue in the country. In the past
one year, there has been a massive upsurge in the spinning mill of India. The industry size has
expanded from $37 billion in 2004-05 to $49 billion in 2006-07. During this era, the local market
witnessed a growth of $7 billion, that is, from $23 billion to $30 billion. The export market
increased from $14 billion to $19 billion in the same period.

10
AREA, PRODUCTION AND PRODUCTIVITY OF COTTON IN INDIA

Year Area in lakh Production Yield

hectares ( in lakh bales of ( Kgs per hectare)
170 kgs)
1996-97 91.66 177.90 330
1997-98 89.04 158.00 302
1998-99 92.87 165.00 302
1999-00 87.31 156.00 304
2000-01 85.76 140.00 278
2001-02 87.30 158.00 308
2002-03 76.67 136.00 302
2003-04 76.30 179.00 399
2004-05 87.86 243.00 470
2005-06 86.77 244.00 478
2006-07 91.44 280.00 521
2007-08 94.14 307.00 554
2008-09 94.06 290.00 524
2009-10 103.29 305.00 503
2010-11 111.42 325.00 496
2011-12 121.91 356.00 496

FOREIGN EXPORTS

The textiles industry accounts for 14 percent of industrial production and accounts for
nearly 12 percent share of the country's total exports basket. The Government fixed the target for
2008-09 at $26.55 billion an increase of 20 percent over the actual performance of $22.14 billion
in 2007-08, for export of textiles. However, no targets were fixed for 2009-10. At present, Indian
spinning mill holds 3.5 to 4 percent share in the total textile production across the globe and 3

11
percent share in the export production of clothing. USA is known to be the largest purchaser of
Indian textiles.

EXPORT TO MAJOR DESTINATIONS

S.NO. COUNTRY EXPORT %

NAME
1 Bangladesh 13
2 Egypt 07
3 China 06
4 Portugal 05
5 Italy 08
6 Turkey 05
7 Iran 04
8 South Korea 04
9 Others 48
100
2.3 STATE SCENARIO

SPINNING MILL IN TAMILNADU

The spinning Mills are the backbone of Tamil Nadu’s industrial development and are
providing massive employment in the State, predominantly spinning oriented. The State spinning
mill has a significant presence in the national economy also. There are 3069 large, medium and
small spinning mills in India, of which, 1889 are located in Tamilnadu. The spinning mills in the
State comprise 18 Cooperative Spinning Mills (5 functioning), 17 National Textile Corporation
Mills (7 functioning) and 1854 Private Mills (including 23 Composite Mills). Those spinning mills
provide employment for around 2.40 lakh persons. The capacity of the spinning mills in the State
is around 18.92 million spindles. The State produces about 1612 million kg. of spun yarn per year
and this is about 40 percent of the spun yarn produced per year in the entire nation.
It also increased from 18.8 percent of the national share (ranked 2) in 1982-83 to 32.2
percent (ranked 1) in 1992-93. In terms of net value added, the corresponding figures were 18.4

12
percent (ranked 2) and 37.4 percent (ranked 1). Other textile products accounted for 20.3 percent
of the national gross output value (ranked 2) in 1992-93 and 22.3 percent of that year's net value
added (ranked 2). However, in 1995-96, the textile sector as a whole in Tamil Nadu registered a
disturbing negative growth rate. When we look at Tamil Nadu's Textile Sector in 94-95, the total
yarn production in the State was 695 million kgs, fully 33.3 percent of the country's production.
Within this, the production of cotton yarn was 611 million kgs, being 38.5 percent of the country's
output and blended and manmade fibers accounted for 84 million kgs, 16.7 percent of the national
output. This was the output of 617 textile mills (44.2 percent of the country), comprising 595
spinning mills (52.7 percent) and 22 composite mills (8.2 percent) accounting for a total of 98.7
lakh spindles (32.5 percent). Included in the spinning mills are 18 co-operative spinning mills
accounting for 4.69 lakh spindles and 34 million kgs of yarn, a quantity sufficient to meet roughly
half the hank yarn requirement of the State. In 1994-95, Tamil Nadu also produced 187 million
metres of cloth, 11 percent of the national production, of which cotton accounted for 93 million
metres (8.4 percent) and blended varieties accounted for 94 million metre (15.8 percent). This was
the output of 7.7 lakh looms, being 5.1 percent of the country's loomage. Of this, 4.3lakh looms
were in the handloom sector and 3.4 lakh in the powerloom and composite mill sectors.
Need for a State Textile Policy, the country's textile policy was last specified through the Textile
Policy Statement of June 1985. Prior to this, the development of the spinning mill was guided by
policy announcements in March 1981 and August 1978. The stated objective of the textile policy
of 1985 was an increase in production of cloth of acceptable quality at reasonable prices to meet
the clothing requirements of growing population. In pursuit of this objective, the employment and
export potential of the industry were also to be kept in view.

The national policy is a broad statement and covers every aspect of the spinning mill.
However, in order to cater to the specific needs of individual states, there is a felt need for a State
Level Policy. The spinning mill continues to play a vital socio-economic role in Tamil Nadu.
Hence, the need for a dynamic, growth oriented policy is all the more important. The objective of
the State Textile Policy will be to produce textiles to cater satisfactorily to the quantity, quality
and price requirements of both domestic and international markets, keeping in view the industry's

13
 potential for employment. Until last year, spinning mills in Tamil Nadu were running round
the clock and were busy expanding their operational capacities. Textile mill in Coimbatore districts
plays a predominant part of the industry in South India.

Presently, a major part of the spinning mills which involves in manufacturing yarn remains
idle. Several units are closing down, putting the jobs of thousands of the workers into jeopardy
and many others have not received their wages for months. 392 mills were closed during the
previous year leaving more than 2 lakh workers jobless. Saddled with recession, the industry is
tumbling down facing a steep fall in the export orders, especially from the South East Asian
markets. The economic liberalization, which was believed to be the pivot of Coimbatore spinning
mills’ success, is now being blamed as a reason for the industrial turmoil.

The corresponding period during the previous year was a busy period for the spinning mills
in South India. The spindle capacity was doubled with 40 percent additional capacity. All these
efforts have gone with the wind, with the advent of global recession and power crisis. The fiscal
year 2008-09 is one of the most difficult periods in the history of textile mills in South India.
Cotton yarn production is already down by 20 percent during the last fiscal year. Production which
was 4003.44 million kg during 2007-08 dropped to 3239.17 million kg during the last year. Profile
of spinning mill in Tamil Nadu is given in table

14
PROFILE OF SPINNING MILL IN TAMIL NADU

ITEM
ALL INDIA TAMILNADU
SPINNING
SECTOR
No. of Spinning 3069 1889
Mills
Workers (in lakh) 8.94 2.40
Spindles (in 39.27 18.92
Million)
POWERLOOM
SECTOR
Powerlooms (in 19.03 3.66
lakhs)
Workers (in lakhs) 47.57 9.14
HANDLOOM
SECTOR
Handlooms (in 34.86 4.13
lakhs)
Weavers (in lakhs) 65.50 6.08
Handloom Cloth 6.00 0.70
Production(Bn. Sq.
Mt)
Value(` in Crore) 18000 1700

OTHER SECTOR
Power processing 2510 985
Units
Hand Processing 10397 2614
Units

15
2.4 FUTURE OUTLOOK

 To attain market leadership.

 Introduction of new trade schemes to increase sales.
 Aggressive advertisement and publicity as part of sales promotion.
 Reduction in distribution expenses.
 Cost-reduction in all areas.
 Instant decision making in certain procurement activities.
 Timely introduction and implementation of market driven decisions.
 Cost behavior analysis of spinning industry in India.
 Cost model analysis of spinning industry in India.
 Financial Efficiency of textile industry with macro level.
 Sector Wise Performance Appraisal of spinning industry.

16
 CHAPTER-III
COMPANY PROFILE

3.1 INTRODUCTION OF PLATINUM TEXTILES LIMITED

PLATINUM TEXTILES LTD (previously known as Neha Furnishing Pvt Ltd)
is in the business of spinning, manufacturing and selling of Polyester and Cotton blended
yarn. The Company is promoted by ShriVallabh Pittie Group which has presence in Retail,
Textile, Media, and Jewellery Exports, Real Estate & Infrastructure.

Mumbai based, Platinum Textiles Ltd, established in year 1993; today is one of the leading
producers of yarn which is manufactured as a blend of polyester & cotton fibers in 70:30
percentages respectively and counts spun are in the range of 30s to 60’s.

The Company has been continuously expanding its manufacturing capacities by adding
71424 spindles during past five years through internal accruals, promoters funding and
loans from banks/ financial institutions.

The Company has three spinning units in the state of Tamilnadu located at Devakotai,
Dist. Ramanad; Palani, Dist. Dindigul and Coimbatore making a total of 71424 spindles
as a whole. The Company also does the yarn manufacturing on lease or exclusive job-
work basis. Presently the combined capacity of the company is 140,000 spindles.

The Company manufactures and sells Polyester and Cotton blended yarn at a competitive
price to cater to the domestic markets. It has over the years built and maintained long-term
relationship with customers on account of its group presence. The company has realized
the net sales of Rs 40,060.87 lakhs in 2011-12 and net profit is Rs 754.74 lakhs. The net
sale in FY 2010-11 is Rs 23,392.85 lakhs and net profit is Rs 116.84 lakhs. The growth of
the Company in 2011-12 is 42 % as compared with previous year.

17
In view to increase the volumes; PTL has planned the addition of 34,000 spindles in its
volumes in existing unit no.2 at a total investment of Rs. 64.15 Crores. The same will be
highly beneficial for the company as it will increase the capacity of the mills and reduce
its overall cost of production simultaneously.

The company can install the same into its existing infrastructure and does not need to
procure any land or construct any building for the same. The entire infrastructure for the
expansion is already in place as the unit previously had installed capacity of 51,000
spindles. There is also surplus capacity in the manufacturing process and therefore the
company is able to add capacity at a low cost of Rs. 18,870/- per spindle.

Knowing the strong foothold of this region in spinning and textiles, currently the main
focus of the company is to increase the volumes. This will increase overall profitability of
the company because of increase in volumes and reducing the production cost.

The investment proposal towards addition of 34,000 spindles in existing unit no.2 is Rs.
64.15 Crores. The company plans to achieve the expansion plan partly by way of infusion
of equity capital, internal accruals, and partly by way of debt.

The promoter’s contribution is Rs 25.65 Crores and term loan sought from the bank is Rs
38.50 Crores. Henceforth the study is undertaken to determine the Technical, Economical
and Financial viability and feasibility of the proposed addition of 34,000 spindles in its
existing unit.

18
3.2 OBJECTIVES OF THE COMPANY
The Corporate office of the group is located at. Mumbai. The Group has an
existing marketing and sales network established over many years of presence in the Yarn
Industry. The Group enjoys tremendous market confidence and has an extensive network
spanning many states such as Rajasthan, Gujarat, Maharashtra, Madhya Pradesh and
Tamil Nadu areas.

The Group is presently selling yarn of manufacturing capacity 140,000 spindles and can
easily add the increased capacity into its existing network.The major markets are located
at Bhiwandi, Malegaon, Ichalkaranji in Maharashtra, Tirupur, Erode etc. in Tamil Nadu.
Bhilwara in Rajasthan, Surat, Ahmedabad in Gujarat, Burhanpur in Madhya Pradesh, and
PTL sells the blended yarn in the same market.

The orders are collected through phone and personal meetings. PTL sells the yarn to
domestic market only.

19
3.3 ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

OFFICE MANAGER FACTORY MANAGER

ACCOUNTS PURCHASE SALES OFFICE ADMIN

QUALITY PERSONEL STORES PRODUCTION

CONTROL

STORE KEEPER
MAINTAINERS

SPINNING
SUPERVISOR
FILTTERS

JOBBERS

. SIDERS (WORKERS)
.

20
3.4 DIFFERENT PHASE OF DEVELOPMENT
PTL also does the yarn manufacturing on lease or exclusive job-work basis.
The Company manufactures and sells blended yarn. The total yarn manufactured inhouse
and from job work in FY 2017-18 is approx. 21,000 MT.

Platinum Textiles Limited (Previously Known as Neha Furnishings Limited) is a

company incorporated under the Companies Act 1956 in year September 1993 in the State
of Maharashtra with Corporate identity No. U17120MH1993PTC073419.

Platinum Textiles Limited (PTL) has its entire yarn manufacturing capacity located in
the state of Tamil Nadu. They have purchased the assets of three spinning mills in the
state of Tamilnadu. The table presents the location of spinning units owned by the units.

Unit Location Year of Purchase

Sree Nityakalyani Devakottai-Ramnad-N.H.Road P.K.Mangalam 2010-11

& Karumozhi, Sonavayal Village,
Textiles
Thiruvadanai Taluka,
Ramnad District, Tamil Nadu

Sree Dhanvanth 117,Thalayuthu, Tal. Palani, Dist. 2007-08

spinners Pvt ltd Dindigul, Tamil Nadu – 624 618

The Ooty Mills 500, Chinnamatham Palayam, Billichi 2011-12

Pvt Ltd*
Post, Coimbatore, Tamilnadu -641 019
The company proposes the addition of 34,000 spindles in the existing unit 2 which
already have surplus capacity in terms of land and building. The Unit 2 of the company
already has sufficient infrastructure to carry out expansion activity. The existing
buildings will provide the company an opportunity to add 34,000 spindles for increase
production capacities.

21
The company will procure the used machinery after a thorough inspection in order to
ensure the value of the machine as well as the lifespan. As the textile machines in the
spinning industry have a very long life span only machines having a good certified residual
life will be purchased.

This investment will increase the manufacturing capacity of the units by about 34,000
spindles resulting in a tremendous boost in profitability and manufacturing capacity. The
Unit will also reduce the per Kg cost of production by Rs. 10/Kg. The saving in
manufacturing cost alone will be sufficient to repay the interest and principal payments of
the fresh term loan required by the company. The company will additionally generate
profits from the increased production capacity. The machines procured will also reduce
the labour requirement of the unit thereby increase profitability.

3.5 FUTURE PLANS OF THE COMPANY

 PTL’s main focus is to increase the spinning capacity. The same will be highly
beneficial for the company as it will increase the capacity of the mills and reduce
its overall cost of production simultaneously.

 To achieve the purpose, PTL has planned the addition of 34,000 spindles in its
volumes in existing unit no.2 at a total investment of Rs. 64.15 Crores. The
promoter’s contribution is Rs 25.65 Crores and term loan sought from the bank is
Rs 38.50 Crores

 The company proposes to do the expansion in the existing unit 2 which already have
surplus capacity in terms of land and building. The Unit 2 of the company already
has sufficient infrastructure to carry out expansion activity. The existing buildings
will provide the company an opportunity to add 34,000 spindles for increase
production capacities.

22
  PTL plans to purchase and install the process machines required for capacity
expansion which are 5-15 years used one.

 The duration for the addition of 34,000 spindles is 12 months.

3.6 PERFORMANCE DETAIL OF THE COMPANY

The table presents the performance of the Group
(Rs in lakhs)
Particulars FY 2015-16 FY 2016-17 FY 2017-18

Net Sales 14,485.78 23,392.85 40,060.87

Cost of production 13,922.70 22,687.12 38,058.30

Operational Profit 145.72 188.61 1,092.24

EBIDTA 145.72 188.61 1,092.24

Net profit 112.67 116.84 754.74

Net Worth 928 1769 4044

Remarks

Note 1: FY 2017-18 was the first full year of operations for all the units of the company.
The net sales increased in this year is because of increasing the manufacturing capacity

23
 CHAPTER- IV

DEPARTMENT DETAILS

4.1. PRODUCTION DEPARTMENT

As observed in the introduction chapter spinning technology has under gone vast changes
over the years since the beginning of mule spinning in England in 1800‟s to Open-end and Ring
spinning of today. Cotton spinning over the years has adopted modernization to save the wastes
and also to control the emission of „fiber flies‟ in the department. In the early days spinning mill
was based on man power and more mechanical systems drawn by the electric motors and large
machines with heavy metallic spikes, canvas lattices, with spikes rotating over rollers in blow-
room. The carding machines with licker-in, cylinder, flats and doffer rollers with small and pointed
needles for combing purposes created more dangerous situation for the operators to handle.
In the conventional spinning mill set up housekeeping and controlling sweeping waste was
a big challenge. Another big problem with old spinning technology was controlling the fire
accidents especially in blow-room and carding departments. The fire accidents usually take place
when metal pieces are carried from machine to machine through the pipe lines along with the
processed cotton tuffs come across open metallic wires mounted on high rotating rollers like
cylinder, licker-in and doffer in carding department.
Even though in conventional mill the speeds of rollers, spindles and drums were low, the
accidents could not be controlled due to in secure measures of the machine makers. Secondly,
cotton micro dust pollution in the departments namely blow-room, carding, speed-frame ring-
frame and cone winding departments was very high which not only affected the health of the
workers but also the quality of yarn. Due to these reasons new technologies in machinery was
introduced and today most of the spinning mills have modernized their units with modern
machines.
The modern spinning mill is a perfect structure of right working of spinning mill with all
precautionaries, quality measures, waste controls and need for quality raw material. One important
observation of modern spinning mill is that there is considerable reduction in departmental

24
pollution and sweeping wastes in departments. The humidification factor has also played vital role
in maintaining quality of yarn as well as health of the workers.
The computerized operations of machines in maximum departments of spinning mill have
also contributed to the productivity by reducing detention time of machines and maintenance
works.
Blow room prepare and separate cotton. cotton import on other country and it was separate small
on other country and it was separate small pieces of cotton and form the bale. then it was send
mixing of contamination. Then it was pass through scanning section it was scan nylon dust others
and removed after removing it was send through carding. In the spinning mill main function cotton
convert into yarn. Carding is second section of spinning. it is defined as reduction of entagled mass
of fiber to filmy web by working them between 2 closely spaced relatively moving surface.

PRODUCTION DEPARTMENT SECTIONS

 BLOWROOM
 CARDING
 SB2
 UNILAB
 COMBER
 DRAWING
 SIMPLEX
 SPINNING
 CONE WINDING
 DOUBLER WINDING
 TFO
 REWINDING
 GASSING
 PACKING

25
 According to late P.M Lal Bahadur Shastri, “Higher productivity means more efficient use
of all types of resources in employment, using them to produce as many goods and services as
possible, of the kind and quality most wanted by customers, at lower and lower costs. It is in
essence, a multipronged, mass attack on waste on the one hand and optimum use of all instruments
and tools of production on the other”. India’s first five year plan highlighted the essential nature
of productivity as a national movement in the following words.

Higher the productivity ratio, better it is. High productivity increases production and
reduces cost of production per unit and, therefore, reduces selling price and increases profitability
of the concern. Productivity should not be confused with production because the latter refers
directly to the output while the former relates to the ratio of output in terms of input of materials,
labour hours, machine hours, capital employed or any other factor of production. Thus in a broad
sense, productivity means goods and services produced in relation to resources utilized in
producing the same.

PRODUCTIVITY AND PROFITABILITY

Profit is the favorable change in owner’s equity which results from business operations. It
is an inflow of assets which results in an increase in the owner’s equity. In other words, profit
broadly denotes excess of sales over total cost. Improvement in profitability does not necessarily
mean an improvement in productivity. Profitability may improve because of many other reasons
whereas productivity remains the same. For example, profit may increase because of increase in
selling price of the product or because of reduction in custom and excise duties while productivity
remains the same. On the other hand, increase in productivity necessarily influences profitability.
There may be concerns which are making sufficient profits but they may still be having poor
productivity. Similarly, there may be concerns which make no or little profit in spite of increase
in productivity. This happens because of many commercial considerations which have influence
on profit.

26
COTTON QUALITY NORMS FOR VARIOUS COUNTS

S.no. Count Yarn 50% Maturity Micronaire

(Ne) (U%) Span Ratio value
length (μg/inch)
(mm) (L)
1 20S 12 12.8 0.80 3.9
2 24S 12 13.7 0.80 3.8
3 26S 12 13.8 0.80 3.7
4 30S 13 13.3 0.80 3.5
5 36S 13 14 0.80 3.4
6 40S 14 12.5 0.80 3.3
7 44S 13 11.6 0.85 3.3
8 50S 12 19.5 0.85 3.3
9 55S 12 20.5 0.85 3.2
10 60S 12.5 22.0 0.90 3.2
11 70S 13 20.0 0.85 3.2
12 80S 13.0 20.5 0.85 3.0
13 90S 14 19 0.85 3.0
14 100S 14 20.6 0.85 3.2

BLOW – ROOM

It is the first department where the cotton is subjected to machines. It is called „Blow –
room because the process of material takes place with the help of air currents. The material is
blown from machine to machine through the pipe lines. The blow - room process has the following
sequence of machines.

Bale - breaker Hopper feeder Axi–flow Condenser Multi – mixer Scutcher.

27
A bale – breaker consists of long horizontal conveyer which carries the cotton into the machine.
Inside the machine there is a wooden lattices joined by canvas cloth with small metallic spikes
rotating vertically inclined to certain extent in a chamber. In this chamber the cotton that comes
from the conveyer is subjected to lift and fall and opening of lints to certain extent by the spikes
and cotton lints which gets opened up is carried by the spikes to the spiked rollers at the top of the
pipeline.

Source: LMW MACHINERY LAYOUT DIAGRAM

From the above flow diagram we see that the process starts at bale opener which is now a days not
installed in most of the spinning mills because the bales of different varieties of cotton are manually
mixed in the form of mixing. This mixing is directly fed to the pre cleaner which is called by
various names such as axi-flow by Lakshmi- Rieter makers and opener by Trustzler makers. From
this machine via condensers it goes to the multi mixer and then the scutchers which are called as
pre cleaners in the

28
above diagram. From here via chute-feed the material is fed to carding in the form of lap to the
condenser roller or feed roller of the card.

Functions of Blow Room

1. Opening

 Opening is the first operation within the blow room in which the goal is always a high
degree of openness of material with gentle treatment and a fiber loss as less as possible.
 Opening is the first operation it means, tearing apart the compressed and matted cotton
until it is very much loosened and separated into small tufts with a gentle treatment, and a
fiber loss as small as possible.
 Opening is also related to cleaning as where is opening there is also cleaning.

2. Cleaning
 Cotton contains up to 18% trash in most cases. To clean the material it is unavoidable to
remove as much fiber as much waste.
 Therefore it is necessary to measure the amount of the waste removed and its composition.
As it is of high importance also called cleaning efficiency.
 The cleaning efficiency always has to be optimized and not maximized, since the fiber
quality (short fibers, neps) as well as fiber loss is always negatively affected by maximum
trash removal.

3. Dust removal
To extract the contamination in the cotton such as leaf, stone, iron particles, jute, poly
propylene, colored fibers, feather and other foreign material from cotton by opening and beating.
 An often underestimated task of the blow room line is the removal of dust. However, it is
as important as the removal of impurities.
 De-dusting in the blow room happens by air suctioning only, either between the machines,
e.g. by dust cages, dust extractors, etc., or within the machine by normal air separation.

29
  Every blow room machine must be capable of extracting dust, so that special de-dusting
machines should be needed.
 The efficiency depends not only on the devices but also on the size of the flocks. The
smaller the flocks, the higher is the efficiency.

4. Blending\Mixing
Mixing: It is generally meant as the intermingling of different classes of fibers of the same
grade e.g. USA Pima grade2, CIS
Blending: IT is meant as the intermingling of different kinds of fibers or different grade of same
fibers e.g. polyester & cotton, Viscose & cotton.

 Blending of fiber material is an essential preliminary in the production of a yarn.

 Fibers can be blended at various stages of the process. These possibilities should always
be fully exploited, for example, by transverse doubling.
 However, the starting process is one of the most important stages for blending, since the
components are still separate and therefore can be metered exactly and without
dependence upon random effects.
 A well-assembled bale layout and even (and as far as possible, simultaneous) extraction
of fibers from all bales is therefore of paramount importance.

CARDING
Carding is the second process in spinning. Carding is the heart of spinning. It is called as
heart of spinning because the quality of yarn entirely depends on the carding effect on the fibers
that are spun into yarn. Carding is a mechanical process that disentangles, cleans and inter-mixes
fibers to produce a continuous web or sliver suitable for subsequent processing. This is achieved
by passing the fibers between differentially moving surfaces covered with card clothing. It breaks
up locks and unorganized clumps of fiber and then aligns the individual fibers to be parallel with
each other.

Common to all carders is card clothing. Card clothing made from a sturdy flexible backing
in which closely spaced wire pins are embedded. The shape, length, diameter, and spacing of these

30
wire pins is dictated by the card designer and the particular requirements of the application where
the card cloth will be used. A later version of the card clothing product developed during the latter
half of the 19th century and found only on commercial carding machines, whereby a single piece
of serrated wire was wrapped around a roller, became known as metallic card clothing. Carding
machines are known as cards. The card clothing which is metallic is mounted on licker-in roller,
cylinder roller and doffer roller. The pitch length of the wire pins differs in these rollers
The quality of the sliver is measured in the form of hank. Depending on the count of yarn
and type of yarn (combed or carded) that is to be spun the hank of sliver is determined. Usually
for medium and finer counts (Above 30s) the sliver hank is maintained in between 0.125 to 0.140
hank. For coarser counts the hank ranges from 0.105 to 0.120.

Flow diagram of material in Carding

From the carding machine depending on the type of yarn to be produced different processes
take place. For carded yarns the material is directly sent to Drawing process to draw-frame
machines. For combed yarns the process is lengthy with inclusion of sliver lap, ribbon lap, super
lap and combing processes before going to Draw-frame machines. This combing process is done
to yarns which are sent to manufacture hosiery fabrics by knitting processes. The advantage of
combed yarns is that they have very less twist inserted in the yarn which enables the knitted fabrics
to absorb more moisture and sweat and also certain amount of elasticity in the fabrics.

31
For the carded yarns, the material from carding is directly fed into draw-frame machines. Now
considering the process for combed yarns, from carding the sliver is fed to sliver lap machine. In
sliver lap machine 6 to 8 slivers are fed from the creel stand to main machine which contains
condensing rollers which condense these slivers into a single band of sliver lap.
The combing process is normally used to produce smoother, finer, stronger and more uniform
yarns. Therefore, combing is commonly confined to high grade, long staple natural fibers. In recent
years, combing has been utilized for upgrading the quality of medium staple fibers. In addition, a
yarn made of combed cotton needs less twist than a carded yarn. However, these quality
improvements are obtained at the cost of additional expenditure on machines.

To improve the yarn quality, the comber must perform the following operations:
Elimination of precisely pre-determined quantity of short fibers; Elimination of the remaining
impurities; Elimination of a large proportion (not all) of the neps in the fiber material; In the
carding
Formation of a sliver having maximum possible evenness; Producing of more straight and parallel
fibers. Elimination of short fibers produces an improvement mainly in staple length, but also
affects the fineness of the raw material. The micronaire value of combed sliver is slightly higher
than that of feedstock (elimination of dead fibers). Also the degree of parallelization might reduce
the inter-fiber adhesion in the sliver to such an extent that fibers slide apart while being pulled out
of the can – i.e. sliver breaks or false drafts might be caused.

COMBER
Preparation of stock for combing:

The raw material delivered by the card is unsuitable for combing both as regards form and
fiber arrangement. If card slivers were fed to the comber, then true nipping by the nipping plates
would occur only on the high points, with the risk that the nippers could not retain the less strongly
compressed edge zones of the slivers. These could then be pulled out as clumps by the cylinder
combs. A sheet with greatest possible degree of evenness is therefore required as in feed to the
comber.

32
A good parallel disposition of fibers within the sheet is a further prerequisite. If the fibers lie across
the strand , even long fibers are presented to the cylinder combs as if they were short fibers and
they are eliminated as such. This represents unnecessary loss of good fibers.

sliver-lap/ribbon-lap is no longer used in modern mills except in situations where very fine
yarns from extra long staple fibers are produced. The breaker drawing/lap-forming method is used
for most combing preparation. This method is suitable for a wide range of fiber length from
medium to long staple. It involves two steps: a standard drawing process in which a number of
card slivers (typically 20 – 24) are drawn together to form a drawn sheet.

FUNCTIONS OF DRAW FRAME MACHINE

 To straighten the curled and hooked fibers.

 To make the fibers parallel to their neighbor fibers.
 To improve uniformity of fibers by drafting and doubling.
 To reduce weight per unit length of sliver.
 To remove micro dust from slivers by air suction pipe.
 To blend raw material of same hanks perfectly.

4.2 PURCHASE DEPARTMENT

PURCHASE ORDER MATERIAL

 Exhaust fan
 Tube light
 Tiers
 Spare parts
 HD desktop
 Telephone
 Trophy
 Cement

33
FUNCTION OF PURCHASING DEPARTMENT
 Procuring material
 Evaluating price
 Paperwork and accounting
 Policy compliance
 Purchase department involves
 Decision to purchase
 New asset
 Raw material
 Reduction in cost

GST RATES ON INDUSTRY ITEM

5% OF GST
 Hand pump and parts
 Solar water heater
 Renewable energy device
 Solar power based device
 wind mil device
 solar lamp
12% OF GST
 Power driven pump
 Centrifugal pump
 Bicycle pump
 Milking machine
 Sewing machine
 Composting machine
18% OF GST
 Nuclear reactor
 Boilers
 Steam turbine

34
  Hydraulic turbine
 Engine motors
 Metal, class
 Cutting machine
 Drawing machine
28% OF GST
 Spark ignition reciprocating
 Compression ignition
 Piston engine
 Fuel
 Air vacuum pump

QUOTATION NOTE
Quotation note when used purchase amount less than 3000 quotation note used for direct
purchase. In the stores department Purchase any product consider purchase requitation. All the
department needed materials tools sent the store department. After receiving order get a sign with
GM to get approval to order. After getting mail on product related company. More no of company
ready to purchase product. Choose one lowest price product and high quality product.
GRM should verify the product quality or not.it has the shortage write and return then next
day added shortage material. After getting material stores department. After 10 days should pay
the amount. If company purchase more than 5000.it can submitted justification statement.
Justification provided quality and reason to buy and warranty and supplier name.

GRN-GOODS RECEIVE NOTE

GRN →PURCHASE MANAGEMENT →GOODS RECEIPT→CREAT RECIPT

DOCUMENT→PURCHASE MANAGEMENT →EDIT RECIPT

GRN is the process of registering item into inventory and it will not update your physical
inventory transaction will have status registered. GRN is the product recipt and will update the
35
physical inventory when it gets posted. product recipt will update the inventory physically and it
available for any issue.

GRN FORMAT

DISPATCH
Dispatch is a procedure for assigning employee or vehicle to customer industries that
dispatch include taxicab Couriers emergency service as well as home and commercial service such
plumbing. Dispatch means routine of setting productive actives in motion through the release of
order and necessary instruction according to preplanned times and sequence of operation.

36
FUNCTION OF DISPATCH

 To check availability of input material and ensure movement of material from store to first
process.
 To check ensure availability of all production and inspection aids .
 To obtain drawing specification and material list.
 To assign the work appropriate workplace and men.
 The issue of job order authorizing operation in accordance with dates and times previously
planned.

4.3 ACCOUNTS AND FINANCE DEPARTMENT

4.3.1 ACCOUNTS DEPARTMENT

Accounts department also plays a vital role in the business by monitoring the income and
expenditure .regulating receipt and payment the weather the business are running progress or not.
So hence every business need to maintain the accounts as per the rule of government and want to
pay tax according to profit of business. It helps to know the current financial position of business
when ever needed. It helps to know the level of investment in the fixed asset .The maintain
accounts are journal ledger and trail balance etc. every transaction entries and accounts are entered
purchasing and selling yarn other item. They have separate stock book recording the stock.

Auditing is easy because maintaining the accounts properly. They are paying the tax
regularly every year. Before auditing all documents accounts are checked by auditor and then it is
submitted. Hence accounts department are maintained strictly and properly in order to maintain
the stable high profit. As the name of module this module provide facility to provide to enter and
manage various accounting related transaction. We have provide near about all functionality
require for bank and cash transaction. With this we have provide all necessary report require for
each accounting transaction at various level

37
Function of accounts department

 Accounts payable
 Accounts receivable
 Payroll
 Reporting and financial statement
 Financial control.

Accounting Involves
 Bank payment
 Bank receipt
 Cash payment
 Cash receipt
 Contra
 Journal voucher
 Trail balance
 Balance sheet

38
MATERIAL PRODUCTIVITY RATIO OF PLATINUM TEXTILE LTD
(Amount in Rupees)

YEAR OUTPUT INPUT RATIO TREND

2005-06 526388278 294960556 1.78 100.00

2006-07 457808601 255404480 1.79 100.44
2007-08 422843837 216225796 1.96 109.58
2008-09 521251654 306561598 1.70 95.28
2009-10 619213754 326162131 1.90 106.38
2010-11 641983365 291449580 2.20 123.43
2011-12 738877954 353684152 2.09 117.06
2012-13 908415300 423725253 2.14 120.13
2013-14 1139152386 610318075 1.87 104.59
2014-15 1533931992 800747408 1.92 107.34
2015-16 1986297036 1013185727 1.96 109.85
2016-17 1963284000 1104045000 1.78 99.64
2017-18 2369446000 1091671000 2.17 121.62
Mean 1.94 S.D 0.16 C.V 8.45

4.3.2 FINANCE DEPARTMENT

Finance department mainly considered finance instrument. Finance instrument is any

contract gives rise to a financial asset of one entity and financial liability or equity instrument of
another equity. Financial asset and liability are offset and net amount is presented in balance sheet
when and only when the company has legal right to offset the recognized amount has intents either
to settle on net basis to realize the asset.

39
 The company initially determined the classification of financial asset and liability. After
initial recognition classification is made for financial asset which are catagerised.it mainly involves
financial asset and financial liability. Finance is the science of fund management .the general areas
of finance are business, and public finance. Finance is today recognized as the life blood of
business. It also deals with how money is spend and budgeted. They cannot imagine business
without money. It is the central point of all business activities, regardless of the type of the
organization, government, business, education, health. Finance function is equally important for
profit and non-profit organization.

The importance of finance need not be over emphasized. The growth and expansion of the
business is not possible without proper administration of finance. The smooth functioning of the
business is not possible without sufficient funds. The two function of finance department are
finance and accounting .accounting is an art of recording, classifying and summarizing in a
significant manner and in terms of money transaction and event which are of financial character
and interpreting the result there of. Through accounting information they can prepare the financial
statement of the company periodically to know the financial position of the firm. Finance plays a
key role in all activities of the business. The success of finance department depends on how finance
is at the various level of administration under the management

FINANCIAL ASSET

Financial asset comprise of investment in equity trade receivable cash and equivalent and
other financial asset. depending on transaction for managing those financial asset and its
contractual cash flow.

 Amortised cost
 fair value through other income
 fair value through profit and loss.

40
 Investment is equity of associates are carried at cost. The company evaluated the facts and
circumstance on date of transaction for purpose of classification and measurement of financial
asset.

FINANCIAL LIABILITY

Financial liabilities comprising of borrowing from banks, debentures soft loan interest
loan from government trade payable financial instrument financial quarantee contracts that
required a payment to be made to the holder for loss. It incurs because the specified debtor fails to
make payment when due in accordance with term of debt instrument.

Financial liability are derecognized when only when it is extinguished when the obligation
specified in the contract is discharged. Upon de-recognition of its financial liabilities different
between carrying amount and financial liability that has been transferred to another party and
consideration paid including any noncash asset transferred.

4.4 SALES AND MARKETING DEPARTMENT

4.4.1 SALES DEPARTMENT

Sales are activity involved in selling the product sales are the most important part of every
business. It means the goods are transferred for money. The price of finished products are
determined by managing director. The sale manager sellout product through the broker
commission agent etc. sales are made at various place in India like that Kolkatta Mumbai.

The sales are made at regular intervals. The goods are sent by railway and roadways. The
yarn made to sold to old as well as new customer. The cash discount is made to buyer who buy for
large amount cash and credit cash sale. Credit sale means selling the goods under the credit basis.
Credit sale are normally allowed only to the normal buyer. Credit sale is made only when there is
a sufficient capital to run business.

41
FUNCTION OF SALE DEPARTMENT

 Commitment of employee
 Dedication of employee
 Determination of work
 Best management system
 Achieve target
 Improve efficiency.

CHANNEL OF DISTRIBUTION

TRUE VALUE TEXTILE MILL

↓

WHOLESALER
↓

RETAILER

↓
CUSTOMER

SALES TAX

Sales of cotton mill subjected to sale tax. So every mill should registered under sale tax
act. The auditor should ensure that proper record of sale tax as required by sales tax act are
maintained by company and sale tax returns are submitted in time. Sales department considered to
Get sale conformation letter and sale contract letter.

42
 In this letters are maintained to address count price quality delivery. Yarns are made to sold
through agent. It considered payment under 35 days. These agent will get a commission one or
two percentage. Every payment considered the GST no and income tax an number.

SALES PROMOTION

Sales promotion plays an important role for the cotton products sales promotion influences
the customers for buying the product and also helps to reduce competition; it popularizes the
product so as to stimulate demand.

SALES PROMOTION TOOLS USED ARE

CONSUMER PROMOTION

 COUPONS
 DEMONSTRATION
 CONTEST
 PRICE OFFER

DEALERS PROMOTION

 SALES CONTEST
 DEALERS GIFT
 TURNOVER ALLOWANCES.

43
4.4.2 MARKETING DEPARTMENT

The American marketing association (AMA) defines marketing as “the performance of the
business activity which directs the flow of goods and services from the producer to the consumer
to user.According to Philip Kotler marketing is defined as “human activity directed at satisfying
the needs and wants through exchange involve sellers, searching buyers, satisfying their want and
making relevant product promoting and strong transporting and functional area of business for the
flow of the goods and services from the producer to the consumer it helps to plan and develop
products on the basis of known consumer needs.

After production the product are being sold in the market according the orders taken by the
marketing department. The marketing department studies the market and the target consumer and
decides the best way to reach their customers, and works with the rest of the company to help
determine the new product needs of the market. The company does continue market research which
helps them in planning and executing the new marketing strategies for the future course of action
also helps the company to analyze the buyer habits, popularity of product and effectiveness of the
advertisement media. It also helps in collecting information regarding marketing problems and
opportunities.

STRUCTURE OF MARKETING DEPARTMENT

DEPARMENT HEADS

EXECUTIVES

JUNIOR EXECUTIVES

44
 MAIN FUNCTIONS OF MARKETING MANAGER

 Sales operation
 Inventory management
 Production forecasts
 Control of sales
 Evaluating the marketing pulse
 Tailoring promotion plans and activities
 Monitoring delivery performance of distributors

THE MARKETING TECHNIQUES USED ARE

 Channels distribution
 Sales promotion
 Advertising
 Market research.

MARKETING STRATEGY

Action or business of promoting and selling product or service including market

research and advertising.it is the management process through which goods and service move
from concept to the customer.it include coordination of 4 element

 Product
 Price
 Place
 Promotion.

The area of marketing planning involves foreign a plan for marketing activities. Marketing
plan can also pertain to specific product as well as to organization overall marketing strategy.it
mainly considered customer focus, product focus, product life cycle.

45
FUNCTION OF MARKETING DEPARMENT

 MARKETING STRATEGY
 PRODUCT PLANNING AND DEVELOPMENT
 PRICING STRATEGY
 DISTRIBUTION STRATEGY
 PROMOTION STRATEGY.

MARKETING LABOUR OFFICE

MARKETING MANAGER

ASS MARKETING MANAGER

↓
EXPORT SALE DISPATCH
OFFICER ← PROMOTION OFFICER → OFFICER

↓ ↓ ↓

STAFF STAFF STAFF

MARKETING OPERATION

Marketing department always plays a key role in success of any organization. Marketing
team is considered as set of factor who nourishes through getting continue order. They are
responsible for negotiating buyer developing and getting approval about lab dips fabric and
samples from the buyer and forward buyer requirement specification production planning

46
department .So that an order can get delivered on time with all specialization and quality parameter
requirement by buyer. SSM is one of the few loading finish fabric producer in Pakistan. Most of
the finish fabric exported to different countries in which include America and European countries.

MARKETING STRATEGY INCLUDE

 Meeting with buyer

 Company profile
 Buyer visit
 Free sample
 Contact with agent

4.5 HR DEPARTMENT

HR is an organization performs human resource management overseeing various aspect

of employment such as compliance with labour law and employee standards, administration of
employee benefits and recruitment. The management of human resource is viewed as a system in
which particular seek to attain both individuals and group goal.

Employee of organization are precious and backbone that plays a stupendous role in its
activity. It employees significantly influence the organization, liberalization, globalization has
creating challenge opportunities to make its human resource competent enough to take challenge.
HR management is an art and science of managing people who engaged in productive occupation.
HR management is organization function that deals with issue related to employee such as
compensation hiring performance management safety welfare

Benefits and training. HR management is the function within an organization that focus on
recruitment management and provides direction for people who work in organization. HR
management can also performed by line manager. HR management is no doubt an organization
outgrowth of order process and approach. But it is muchMore than its parent discipline, Personal

47
management and behavior science. It’s the approach is more comprehensive from beginning to
end.
Human resource management is a function in organizations designed to maximize
employee performance in service of their employer’s strategic objectives. Human resources are
considered as the most important recourse in any organization because it can function only through
people. The success of an organization depends upon the ability of its human resources. Production
is the result of joint efforts of land, capital, labor and business enterprises.HR is primarily
concerned with how people are managed within organizations, focusing on policies and systems.

HR departments and units in organizations are typically responsible for a number of

activities, including employee recruitment, training and development, performance appraisal, and
rewarding (e.g., managing pay and benefit systems). HR is also concerned with industrial relations,
that is, the balancing of organizational practices with regulations arising from collective bargaining
and governmental laws.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

Manpower Planning

It involves the planning for the future and finding out how many employees will be needed
in the future by the business and what types of skills manpower planning should they possess.

Job analysis and Job description

A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.

Job descriptions are written statements that describe the Duties, responsibilities, most
important contributions and outcomes needed from a position,

Determining wages and salaries

HR Department is also involved in conducting market surveys and determining the wages
and salaries for different position in an organization. This decision may be taken in consultation
with top management and the Finance department.

48
Recruitment and Selection

One of the most important jobs HR departments is to recruit the best people for the
organization. This is of crucial importance as the success of any organization depends on the
quality of its workforce. Details regarding the recruitment and selection procedure can be found.

Performance Appraisal

Once the employees are recruited, the HR Department has to review their performance on
a regular basis through proper performance appraisals. Performance appraisal is the process of
obtaining, analyzing and recording information about the relative worth of an employee. The focus
of the performance appraisal is measuring and improving the actual performance of the employee
and also the future potential of the employee. Its aim is to measure what an employee does.

METHODS OF TRAINING

 On the job training

 Off the job training.

TYPES OF TRAINING

 Orientation training
 Job training
 Safety training
 Promotional training
 Refresher training.

STRATEGY OF HUMAN RESOURCE

 Recruitment
 Training
 Compensation policy

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EMPLOYEE WELFARE ACTIVITY IN HR

Welfare activity enable the employee to live rich and more satisfactory life. The various
welfare activities that can be provided to employee include provision of loan, free medical, facility,
retirement, benefits education and housing benefit. Welfare measure may be introduced by
Employer government.

Employee welfare include various facilities, service, and amenties provided to worker for
improving their health efficiently. Welfare measure are in addition to regular and other. Economic
benefits available to worker due to legal provision and collective bargaining.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Training and Development

The human resources department helps organizations meet training and development
objectives. It helps determine the training needs of the company and creates and conducts training
programs for employees. HR staff members organize training manuals and determine the most
appropriate method of delivering training to meet the needs of the organization.

Recruitment

The human resources department helps organizations meet recruiting objectives. The
department screens potential candidates and makes hiring decisions to fill open positions. It also
attracts candidates through a variety of recruitment efforts such as job fairs and online job boards.
Recruitment staff often visits college campuses to attract students and new graduates into the
organization. Staff member’s interview candidates and issue pre-employment assessments. Human
resources specialists also train new hires and distribute company policies and procedures to new
employees.

Employee Relations

Human resources staff members form labor policies and interpret state and federal
employment and labor laws. The department ensures the company complies with regulations
regarding equal opportunity employment and fair labor standards. The department's staff members

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help workers understand their rights while also protecting employer interests. HR staff members
also handle employee relations objectives such as settling disputes between employees and
managers.

4.6 SWOT ANALYSIS

STRENGTHS

 Company is using modern technology

 Location is another major competitive advantage
 The company is using high quality material for the production
 The price of the product is low comparatively to the competitors.
 The company has wide range of product line than the competitors.
 Qualified design term
 High capacity utilization

WEAKNESS

 Lack of space management in the production center

 Lack of trained employees

OPPURTUNITIES

 Support from government.

 Joint venture with other companies.
 Market in foreign countries.
 Development of dealer network.
 Proper marketing and strategic decisions will help the company’s promotion.
 Using sophisticated products can reduce cost of production.
 Use of advanced technology.

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THREATS

 Stiff competition from traders and other similar organization.

 No proper utilization of available capacity.
 Inefficient productivity.
 The changes in the government policies affect the smooth functioning of the
organization.

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 CHAPTER-V
OBSERVATIONS, SUGGESTIONS AND CONCLUSION

5.1 OBSERVATIONS

 In the production department mixing process only done by manual. The dust are removed

by human from cotton.

 The cottons are purified by blow room section with the help of exhaust fans.

 The cotton are transformed as mat format.

 The cotton are segregate as various counts like 120,140, 270, 320and 340.

 The cotton convert as sliver format that is rope format with the twist.

 The purchase department is purchasing 60% from domestic market and remaining 40%

from oversea seller.

 The yarn has selling 75% to local market. The 25% of sale made to overseas market.

 The manpower has been recruited from local. That is in around the company.

 The safety measures and welfare measures are being maintained properly by platinum

textile ltd.

 More than 75% of employee are male and only 25% of employee are female.

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 5.2 SUGGESTIONS

 The company may expand its storage space for future expansion.
 The can speed up their delivery to their clients to increase their sale volume.
 The salary of employee may be revised for getting efficient work.
 The female employee may be provided creches for their children.
 The management can be more participative with their employee for better morale.
 The company can concentrate on overseas market.
 The employee benefits may be increase in future for cordial relation with employee.
 The company may arrange for school facility for their employee children.
 The quarters may be provided to experience employee in concessional rate.
 The annual performance award may be considered to motivate employee who perform
well.

5.3 CONCLUSION

The training experience has provided the very good understanding and over all idea
about the textile unit, particularly the various production process and methods of achieving
the production targets by motivating the workers.

 It is also observed that there are some problems as far as the trainee could assess and some
measure are also be suggested. since the study was aimed at overall study of the
adminstrative and production environment a detailed study on a particular issue or
problems has not been focused.

 It is quite sure that this training has imparted wide knowledge and practical exposure.

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5.4 BIBLIOGRAPHY

BOOKS
 Mr. ASWATHAPPA, Human Resource & Personnel Management
 Mr. MALHOTHRA, Marketing Research
 KOTHARI.C.R.(2004),research methodology & Techniques published by new age
international, new delhi.
 PANDEY I.M. (2007) Financial management, vikas publishing house.
 ROBBINS, STEPHEN P. (2004) Organizational behavior.

WEBSITES
www.01.ibm.com
www.redbooks.com
www.tvu.com
www.freecrm.com
www.insightly.com

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