CHAPTER-VII

CONCLUSION, FINDINGS AND

RECOMMENDATIONS

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CONCLUSION
The cloth production in decentralised sector has been increased tremendously over the
last 65 year in India, particularly in Maharashtra state. Higher Prices of raw cotton
and its fluctuation, labour absenteeism and needs to update and installation of latest
imported machineries including spindles, looms and many other processing machines,
Ascending wages, Increasing prices of modern machineries, global market
competition are the major issues in cotton textile industries of Maharashtra. The cost
of raw material (raw cotton or bales), cost of Electricity, wages and salary are the
major cost factors in cotton textile industries. The cotton textile industry in the state
facing problems such as high prices of raw materials, labour deficiency, costly power,
outdated technology, slow pace of modernization, accordingly lower utilisation leads
to low productivity, rising cost of production, low level of profitability and going
towards the sickness among the cotton textile mills in the state. Sickness may be
caused by adverse things like frequently changes in government policies about
exports, changes in electricity duty, technology development and competition factor
etc. The managerial deficiencies may bring sickness. It can be deficient in varied
aspects like shortcomings in personnel, utilizations, facilities to employees,
production, sales decisions, finance etc.

Some of the mills does not maintain properly debt equity ratio (i.e. 1:1).
Absence of sub-committees in co-operative mills as per co-operative society act 1960.
All these factors have been affecting on decision making in management. It is
observed that co-operative mills have been lacking sales forecasting at advanced
level. There is lower utilisation of machineries because of outdated machines and
labours absenteeism. This is evidence by the fact that several mills have old
machinery gives not standard production and not possible to compete with world
market. Yarn condition plant is necessary for improve sustainability in yarn quality.
Modern equipments needs in quality testing lab for produce specific quality products
as per market demands. Facts behind better position or well managed mills observed
as like, a consumer oriented marketing approach to the manufacturing of cotton
textiles. Search for the value added products, skilled and experienced personals. An
integrated quality concept and innovative approach to the product development to

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ensure quality superiority. They adopted new Technology upgradation of plant and
machinery to high productivity and quality standards.

Each and every mill in this study experienced huge cumulative losses by every
year. They also suffered by variation and imbalanced between cotton prices and
product prices. Low productivity occurring by outdated technology, labour
absenteeism, electricity barriers etc. and natural calamities like hailstorm also affected
on cotton quality in farm. Labour absenteeism occurring because of less wages rates,
lack of welfare practices like canteen, travelling allowance, quarters, bonus etc.

Co-operative Mills should procure cotton form their cotton growing members.
The total staff should be appointing as per project report under co-operative society
act in co-operative mills. Sub-committees are necessary for decision making in mills.
Mills should try to increase their own share capital instead of government capital and
loan. Separate fund for working capital. They may try to give reasonable wages,
proper training program should arrangement time to time for encourage the labour
productivity.

MAJOR FINDINGS:
Major findings of the present study summarized are as follows:

1. The problem about Labour absenteeism is found among the 11 mills of the research
study because of workers not satisfied about wages due to high inflation. Moreover,
mills located in rural areas experienced labour absenteeism during the cultivation
period because local workers are connected with farming activity.

2. It reveals that healthy relation with labours can sustain by providing welfare
facilities like canteen, travelling allowance, dry foods, consumer stores, quarters and
credit society etc. which leads to improving labours attendance and labours
productivity simultaneously.

3. It is observed that those mills have imported latest machinery along with
humidification plant; they able to maintain clean, dust free and controlled atmosphere
in industry. As a result become helpful to improve the labours attendance.
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4. All the Mills in the present study were gone deeply losses in 2011-12. Because
export of cotton was open whereas yarn export was banned during April to Sept.
2011. Subsequently it was observed tremendous losses in those Mills. The wrong
exports policy was responsible for these losses.

5. All the studied mills in this research; shown high cost of raw material. It was more
than 55% of the total cost of production and some time raised upto 70%. Instability in
prices of cotton, yarns and growing electricity rates also responsible factors to bring
difficulties in cotton textile industries.

6. It is found that this industry greatly affected by global recession during 2008-09.
Losses occurred as great extent in those particular years.

7. Total four mills in this study have debts greater than equity. The RSR mills has
unexpected gap between reserves and borrowings. The RSSGM, JSSSGL and
SMSSGL mills also have debts more than its equity. All these happened for
modernization and due to great losses.

8. It reveals that necessity of Technological Upgradation like Computerized Testing

Lab with latest equipments, Humidifier System, Yarn Condition Plant, Contamination
System, and Automatic Looms for weaving fine quality cloth.

9. It observed that those mills have updated machineries which show better utilisation
of spindles, looms, processing machines and sharpness in quality products in industry.

It shows industries ability to produce export oriented standard production that’s way
earning foreign currency to the country.

10. It is reveals that those mills have outdated equipments which have not performed
in export oriented quality production as per global standard and hence not able to
exports its products as per market demand and orders.

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11. The ‘open end’ based spinning mills experiencing shortage of short fibre cotton
which is not available in great quantity because Bt-Cotton producing medium and
long staple cotton. So this type of mills needs to be converting itself from ‘Roters’
into ‘Spindles’ to survive in future.

12. The mills located in rest Maharashtra faced shortage of cotton in their local areas.
They are purchasing cotton from cotton growing areas and hence spending more
transportation cost.

13. It was observed that plant stoppage due to interruption in electricity even if causes
by internal or external, repairing and maintenance are the common causes responsible
for lower utilisation of spindles, looms and processing machines in industry.

14. It was found that 05 mills have been continuous losses during ten years of the
study period; remaining 07 mills have losses from 2007-08 and thereafter; they
affected by global recession and banned on exports in 2011.

15. The growth rate of government share capital is high into co-operative spinning
mills as compare to their own share capital.

16. It is observed that in co-operative mills have been lacking sales department at
advanced level. There is lack of export of high quality yarn and was not found
separate export or domestic sales department.

17. Some common things found in co-operative spinning mills like all decision takes
by few persons; sub-committees for decision making were absent, lacking
representation of worker in board of director’s, less emphasis on internal financing,
There was no fully recruitment of staff as per co-operative act. They do not follow
debt equity ratio.

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18. Government policies and restriction in regards export, electricity, imports are
affecting on cost of production. The obligation of 40% yarn production in hank form
imposed by central government to protect the handloom sector.

19. it is found that oldest industries like RSR mills has old machinery with outdated
technology which attributed to the causes of excess cost and getting losses.

20. The pattern of consumption of cloth is changing, cloth made by man-made fibre
being increasingly substituting cotton cloth. Cotton textile industries have been
continually adjusted to this changing pattern of consumption of cloth by increasing
the use of long staple cotton and man-made fibres.

21. It is seen that profit margin affects by the number of causes including cotton cost,
yarn selling price and fabric/ cloth selling price are most important.

22. Technology upgradation in spinning, weaving and processing for producing

quality value added products to satisfy the demand of domestic as well as worldwide
market accordingly will helpful for textile mills to survive in this competition age.

23. It is observed that weaving capacity shifting from mill sector to powerloom sector.

24. Men, Machine, Material and market price become the most critical factors
deciding the success or failure of cotton textile industry.

IMPORTANT RECOMMENDATIONS:
The following remedial measures will be useful to the entrepreneurs in textile sector,
policy makers, researchers and thinkers.

1. To reduce the labour absenteeism welfare facilities should provide by Mills like
Canteen, Travelling Facility, Consumer Stores on credit base, Dry Foods at

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reasonable rates, Quarters for living, and Health Checkup etc. for improving labours
attendance.

2. The mills should have imported latest Humidifier System to maintain cleans and
dust free environment in plant which leads to improve the labour attendance. Proper
training programmes also necessary for improving labours efficiency and
productivity. Twelve hours shifts should not conduct.

3. The policy about export and import of cotton and textiles should fix at least for
cotton season and announce in early starting of cotton year at every year. It will better
for this industry to planning about procurement, production and exports in each cotton
season.

4. To control the production cost; there should be right decision of cotton procurement
by forecasting of prices in global market and also energy audit should strictly
implement. Mills should have control on each cost factor to stay competitive
themselves in worldwide textile market.

5. The electricity charges hold on fix rate by the government and should not impose
excess rate on that.

6. Cotton textile industry should balance between domestic sales and exports through
forecasting about global market situation. They may implement properly internal cost
control system to avoid crises of deep losses during recession period.

7. Those mills have debts over than equity, should maintain proper ratio between
debts and equity. There is a need to increase its own funds and equity capital.

8. Modern equipments should establish in Testing Lab to improve quality in yarn and
cloth as per market orders. Mills should establish latest Colour Contamination System

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to remove unwanted objects, Yarn Condition Plant for improve sustainability in yarn
quality and Automatic Looms for standard fabric/cloth to meet global demand.

9. The ‘open end’ roters base mills can updates themselves through installed spindles
as a replacement of roters to survive and update itself to compete in global market.

10. Mills should have modern technology which shows better utilisation of machines
and sharpness in quality products. By this way industry can improve its ability to
produce export oriented standard production that’s way earning foreign currency to
the country.

11. Mills should sales their products not only in domestic market as well as
international level. They may perform in export oriented quality production as per
world requirement through imported modern equipments similarly through develop
skills among the workers.

12. The government should accelerate TUF scheme, quick assistance procedure for
sanctioned and disbursement finance, slack to the documentary procedure. It will be
practical to the imports of modern technological equipments.

13. The compulsion of hank yarn on mills should remove by the government. It will
assist to remove extra burden of duties which charged instead of hank yarn
production. Hank yarn may produce separately in handloom clusters and in that
particular area of respective states.

14. The co-operative mills can increase their own share capital and funds to become
self reliant and repay government capital in step by step.

15. Textile mills should be linking with farmers as a social activity to provide
technical guidance about organic cotton. Organic cotton possible to growing in lower

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cost; it can compete with cheapest man made fibre. So in this way textile industry can
adjust to the changing pattern of consumption of cloth.

16. The mills should have proper marketing information system and consumer
oriented production for getting the benefit of consumer wants and producing the
typical variety of cloth with top prices.

17. It is recommended that mills management should give top priority to the areas of
management such as, capacity utilisation of looms and spindles, cost control, labour
safety and welfare practices, personnel management, quality control and marketing
etc.

18. Government of Maharashtra should encourage the entrepreneurs for setting up

new textile industries in cotton growing districts in state with proper infrastructural
facilities.

19. All technical parameters such as capacity utilisation, productivity, production

should be reviewed time to time.

20. All possible measures should be adopted to procure the quality cotton from right
source at right cost to manufacture the quality cloths at reasonable price.

21. The rate of interest at purchasing updated plant and machinery under TUF scheme
should be reduced by the government of India.

22. A highly consumer oriented integrated marketing approach is needed to the

manufacturing of textile mills.

23. The Government of Maharashtra should established additional special training

centres in rural areas to fulfill the requirement of trained manpower for the textile
mills.
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24. Textile Research Associations should communicate their findings, and norms
about sound cotton textile manufacturing mills; effectively through the arrangement
of short term training programmes.

25. There is need to conduct the textile degree, diplomas and training based practical
oriented courses in the institutions, college or universities in cotton growing districts
to create the cotton textile entrepreneurs among the son of cotton growing framers.

26. Government should try to maintain proper balance between cotton prices, yarn
prices and fabric prices for control the variation in those prices.

27. To increase quality production capacity it is necessary that proper planning of

cotton procurement as per quality and prices to continue supply of raw material.

28. There is need to revised National Textile Policy 2000, and central govt. of India
should prepare new National Textile Policy as per changing global scenario.

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