Group No 06 Final

A
SUMMER INTERNSHIP PROJECT

AT
“SUMEET INDUSTRIES LIMITED”
SUBMITTED IN
PARTIAL FULFILMENT FOR
THE COMPLETION OF SECOND YEAR OF B.B.A
SUBMITTED BY
SR. NO NAME ROLL. NO

1 FENIL VIRADIYA 202238002
2 JAINESH BOTHRA 202239005
3 KONIKA BANSAL 202238019
4 SIDDHI JAIN 202238012
PROJECT GUIDE
Mr. HITESH PATEL
UDHNA CITIZEN COMMERCE COLLEGE &
S.P.B. COLLEGE OF BUSINESS ADMINISTRATION &
SMT. DIWALIBEN HARJIBHAI GONDALIA COLLEGE OF BCA & I.T.
SURAT
2022-23
CERTIFICATE
This is to certify that Mr. Fenil Viradiya has prepared the Project Report entitled
Summer Training under my guidance & supervision.
This project embodies the result of his work & is of the standard expected of a
candidate for the successful completion of Second Year of Bachelor of Business
Administration Degree.
Date:
Place: Surat
(Faculty Guide) (Vice Principal) (Principal)

Mr. Hitesh Patel Dr. Daisy Sheby Thekkanal Dr. Mehul P. Desai
CERTIFICATE
This is to certify that Mr. Jainesh Bothra has prepared the Project Report entitled
This project embodies the result of his work & is of the standard expected of a
Date:
Place: Surat

CERTIFICATE
This is to certify that Miss. Konika Bansal has prepared the Project Report entitled
This project embodies the result of her work & is of the standard expected of a
Date:
Place: Surat

CERTIFICATE
This is to certify that Miss. Siddhi Jain has prepared the Project Report entitled
This project embodies the result of her work & is of the standard expected of a
Date:
Place: Surat

DECLARATION
I, the undersigned, Mr. Fenil Viradiya here by, declare that this project at SUMEET
INDUSTRIES LIMITED is an original and bonafide work carried out under the guidance
of Mr. ANIL KUMAR JAIN, (COMPANY SECRETARY), SUMEET INDUSTRIES
LIMITED and Mr. HITESH PATEL, Assistant Professor, Udhna Citizen Commerce
College & SPB College of Business Administration & Smt. Diwaliben Harjibhai Gondalia
College of BCA & IT, Surat.
__________________________
(Signature of the Student)
Mr. Fenil Viradiya Date:

Roll No: 202238002 Place: Surat
DECLARATION
I, the undersigned, Mr. Jainesh Bothra here by, declare that this project at SUMEET
__________________________
Mr. Jainesh Bothra Date:

DECLARATION
I, the undersigned, Miss. Konika Bansal here by, declare that this project at SUMEET
__________________________
Miss. Konika Bansal Date:

DECLARATION
I, the undersigned, Miss. Siddhi Jain here by, declare that this project at SUMEET
__________________________
Miss. Siddhi Jain Date:

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would
be incomplete without the mention of the Leaders, whose constant guidance and
encouragement crown all the efforts with success.
We are highly obliged to the Veer Narmad South Gujarat University for arranging the
program of practical training in Bachelor of Business Administration in such a manner.
We would like to extend our gratitude to all the staff and especially to Mr. Anil Kumar Jain
of (COMPANY SECRETARY), SUMEET INDUSTRIES LIMITED, who provided
us useful information and data regarding the subject with their cent percent participation
and supported in making this project report a successful task. It was a memorable experience
to work with them and complete our Summer training.
It is our privilege to express our deep sense of gratitude to Mr. Hitesh Patel, Assistant
Professor for his efforts, guidance, valuable comments and suggestions for making this
project report. He helped us to complete our report on the practical study and gave
contribution to improve and expand our practical knowledge.
Finally, we express our intense gratitude to our parents whose blessings has helped us to
translate our efforts into fruitful achievement.
EXECUTIVE SUMMARY
On the basis of project, we make conclude that the company is doing well.
Sumeet Industries Limited is most admired trusted integrated textile company in India and
they are well recognised quality product supplier of synthesis yarn in India.
The company is considered consistently achieving high growth and higher level of
productivity. The companies somewhat is exposed to financial risk from foreign exchange
currency risk. They are fulfilling various quality objectives like consistently high standards,
excellent work ability on machine and much more.
We have visited the Production plant of the company which is situated at the kim, and learn
about different types of yarn manufacture and the process to make it. How to manage all the
resource including the Human resource.
The Summit Industries Ltd is eagerly performing and contributing towards CSR activities
which is the good thing mainly focused in hunger, poverty, education, healthcare,
environment, relief, disaster management, animal welfare etc.
The company’s liquidity it is very high which is bad for companies position and Company
can focus more on their advertisement and made some profitable investment from the high
liquid cash they have overall it was great opportunity to work with them I am really thankful
to University to provide such a great opportunity to enhance our knowledge
Table of Contents
1 GENERAL INFORMATION ................................................................................ 1
1.1 INDUSTRY PROFILE ................................................................................... 1
1.1.1 HISTORY ................................................................................................ 2
1.1.2 Global Prospective in Yarn Industries ..................................................... 6
1.1.3 Textile industry in India ........................................................................... 8
1.1.4 Challenges in the textile sector: ............................................................. 11
1.1.5 Textile Industry SWOT Analysis........................................................... 12
1.1.6 Conclusion ............................................................................................. 14
1.1.7 Competitors of Textile Industry ............................................................. 15
1.1.8 GDP Contribution of Yarn Industry in India ......................................... 16
1.2 COMPANY PROFILE .................................................................................. 17
1.2.1 Sumeet Industries Limited ..................................................................... 17
1.2.2 HISTORY .............................................................................................. 17
1.2.3 CORPORATE PROFILE....................................................................... 18
1.2.4 MANAGEMENT PROFILE ................................................................. 19
1.2.5 AWARDS & CERTIFICATION ........................................................... 21
1.2.6 VISION & MISSION ............................................................................ 22
1.2.7 SWOT ANALYSIS ............................................................................... 23
2 PRODUCTION DEPARTMENT ........................................................................ 25
2.1 Plant location ................................................................................................. 25
2.2 BRIEF DETAIL ABOUT PRODUCT: ........................................................ 27
2.3 REQUIREMENT OF RAW MATERIALS, UTILITIES AND AUXILIARY

FACILITIES ............................................................................................................ 31
2.4 MANUFACTURING PROCESS AND DESCRIPTION: ............................ 35
2.4.1 MANUFACTURING PROCESS: ......................................................... 35
2.4.2 DESCRIPTION OF POY PROCESS: ................................................... 37

2.5 PROJECT IMPLEMENTATION ................................................................. 40
2.6 Packing, Storage & Dispatch ........................................................................ 42
2.7 Quality control............................................................................................... 43
3 MARKETING DEPARTMENT .......................................................................... 45
3.1 Marketing Mix............................................................................................... 46
3.2 Product .......................................................................................................... 46
3.2.1 Packaging and Labelling ........................................................................ 50
3.3 Price............................................................................................................... 52
3.4 Place .............................................................................................................. 53
3.4.1 Warehousing .......................................................................................... 56
3.4.2 Transportation ........................................................................................ 56
3.5 Promotion ...................................................................................................... 57
3.5.1 MARKET STUDY: ............................................................................... 59
3.5.2 Demand – Supply Scenario World Wide ............................................... 59
4 FINANCIAL DEPARTMENT ............................................................................ 60
4.1 INTRODUCTION ......................................................................................... 60
4.2 STRUCTURE................................................................................................ 61
4.3 FINANCIAL STRUCTURE ......................................................................... 61
4.4 CAPITAL COST ESTIMATES .................................................................... 62
4.5 FINANCIAL INDICES: ............................................................................... 67
4.6 COMPARATIVELY LOW OPERATING COST: ...................................... 67
4.7 COMPANY PERFORMANCE AT LAST 2 YEARS .................................. 68
4.7.1 PROFIT AND LOSS ACCOUNT ......................................................... 69
4.8 FINANCIAL RATIOS .................................................................................. 71
5 HUMAN RESOURCE DEPARTMENT ............................................................. 73
5.1 Recruitment: .................................................................................................. 74
5.2 Selection: ....................................................................................................... 76

5.3 Induction: ...................................................................................................... 76
5.4 Training: ........................................................................................................ 76
5.5 Organization specification: Recruitment, Selection, Training of personal: .. 77
5.6 Employee development programme: ............................................................ 77
5.7 Compensation structure: ................................................................................ 78
5.8 Employment welfare & Corporate Social Responsibility (CSR): ................. 80
5.9 CSR Policy: ................................................................................................... 81
6 FINDINGS AND SUGGESTION ....................................................................... 89
7 Bibliography ........................................................................................................ 90
1 GENERAL INFORMATION
1.1 INDUSTRY PROFILE
Figure 1 Textile Sector
The word “textile” originally applied only to woven fabrics, now generally applied to
fibers, yarns, or fabrics or products made offers, yarns or fabrics. The term textile
originates from the Latin verb texere to weave but, as the Textile Institute’s Terms and
Definitions Glossary explains, it is now” a general term applied to any manufacture
from fibers, filaments or yarns characterized by flexibility, fineness and high ratio of
Length to thickness”
The Textile Sector in India ranks next to Agriculture. Textile is one of India’s oldest
industries and has a formidable presence in the national economy in as much 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. The textile industry occupies a unique place in our country. One of the earliest
to come into existence in India, it accounts for 14% of the total Industrial production,
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contributes to nearly 30% of the total exports and is the second largest employment
generator after agriculture.
1.1.1 HISTORY
From prehistoric times to the 19th century
Textile structures derive from two sources, ancient handicrafts and modern scientific
invention. The earliest were nets, produced from one thread and employing a single
repeated movement to form loops, and basketry, the interlacing of flexible reeds, cane,
or other suitable materials. The production of net, also called limited thread work, has
been practiced by many peoples, particularly in Africa and Peru. Examples of
prehistoric textiles are extremely rare because of the perishability of fabrics. The
earliest evidence of weaving, closely related to basketry, dates from Neolithic cultures
of about 5000 BCE. Weaving apparently preceded spinning of yarn; woven fabrics
probably originated from basket weaving. Cotton, silk, wool, and flax fibres were used
as textile materials in ancient Egypt; cotton was used in India by 3000 BCE; and silk
production is mentioned in Chinese chronicles dating to about the same period. The
history of spinning technology will be touched on below in the section Production of
yarn: Spinning and that of weaving technology in the section Production of fabric.
Figure 2 Yarn Industry
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• Textiles in the Middle Ages
By the early Middle Ages certain Turkish tribes were skilled in the manufacture of
carpets, felted cloths, towels, and rugs. In Mughal India (16th–18th century), and
perhaps earlier, the fine muslins produced at Dhaka in Bengal were sometimes printed
or painted. Despite the Muslim prohibition against representation of living things,
richly patterned fabrics were made in Islamic lands.
In Sicily after the Arab conquest in 827 ce, beautiful fabrics were produced in the palace
workshops at Palermo. About 1130, skilled weavers who came to Palermo from Greece
and Turkey produced elaborate fabrics of silk interlaced with gold.
Following the conquest of Sicily in 1266 by the French, the weavers fled to Italy; many
settled in Lucca, which soon became well known for silk fabrics with patterns
employing imaginative floral forms. In 1315 the Florentines captured Lucca, taking the
Sicilian weavers to Florence, a center for fine woven woolens from about 1100 and also
believed to be producing velvet at this time. A high degree of artistic and technical skill
was developed, with 16,000 workers employed in the silk industry and 30,000 in the
wool industry at the close of the 15th century. By the middle of the 16th century a
prosperous industry in velvets and brocades was also established in Genoa and Venice.
• From the 19th century to the present

Throughout the 19th century a succession of improvements in textile machinery
steadily increased the volume of production, lowering prices of finished cloth and
garments. The trend continued in the 20th century, with emphasis on fully automatic or
nearly fully automatic systems of machinery.
• The modern textile industry

Both industrialized and developing countries now have modern installations capable of
highly efficient fabric production. In addition to mechanical improvements in yarn and
fabric manufacture, there have been rapid advances in development of new fibres,
processes to improve textile characteristics, and testing methods allowing greater
quality control.
The modern textile industry is still closely related to the apparel industry, but
production of fabrics for industrial use has gained in importance. The resulting wide
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range of end uses demands a high degree of specialization. In the most technically
advanced communities, the industry employs technicians, engineers, and artists; and a
high degree of consumer orientation leads to emphasis on marketing operations. Some
manufacturing operations, usually serving specialized or local markets and dependent
on a limited number of firms for product consumption, still employ many hand
operations, however.
Figure 3 Yarn Process
• History of Yarn
One of our favourite items here (yarn) has no origin date. Some ancient European yarn
artifacts have been carbon dated back roughly 20,000 years. All over the world during
this time period, every society was experimenting with early textiles. Could this plant
be made into fiber? What happens if I use this animal's fur? Going back to the stone
age we can see artifacts made from animal hides, grasses and reeds. These materials
made baskets, nets, mats and even belts. As time kept moving, Ancient Egyptians were
making the best linen. India was more excited about cotton. China and its silk had, and
still does, have the world captivated! Central Asia was profiting off of wool and making
4
trades across the world. The textile industry only grew and benefited off of trade routes
and by sharing customs and methods to artisans worldwide.
Figure 4 Single Yarn
How did these innovative people make yarn? Early versions of the spindle was simply
a stick with a small notch and a rock. Early version spindles predate the invention of
the wheel by 1,000 years. Hand spindles would have been made from bone, antler,
sticks, or whatever material was available. Fast forward to 500 -1000 CE in India, the
spinning wheel was invented. This new mechanical version gave a steady spinning rate
and made it easier to manage the fiber by freeing both hands. As the spinning wheel
made its way across the world, it was slowly adapted to meet the needs of the local
fiber.
Through the 11th - 18th centuries making yarn and yarn-based products was a more
common job than it is today. Not just in certain areas either, but all across Europe, Asia
and parts of Africa people made their way with yarn. With advancements of the
spinning wheel and weaving looms, it was now easier to produce large scale items such
as ship masts and ropes, giving a boost to the exploration, trade and warfare industries.
By the 1733, times started to change. The flying shuttle was invented, making weaving
easier on a mass scale. Several decades later in 1766, the invention of the spinning jenny
made the work of 8 people possible by one single person. Around 1775 Samuel
Crompton invented the spinning mule which, at the time, was a water powered spinning
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machine with multiple spindles. Come 1780, steam power and the rest of the industrial
revolution took over and turned yarn into what we know today.
Figure 5 Needle Use in Yarn
This needle is used for nalbinding
1.1.2 Global Prospective in Yarn Industries

Textile Yarn Market was valued at USD 11.99 Billion in 2019 and is projected to
reach USD 16.04 Billion by 2027, growing at a CAGR of 4.00% from 2020 to 2027.
Textile is one of the fundamental needs of the human population. The textile business
is observing huge demands in Asia Pacific regions due to population outbursts. The
adoption of new trends globally and the introduction of new fabrics are some of the
major factors driving demand for textile yarns. The Global Textile Yarn Market report
provides a holistic evaluation of the market. The report offers a comprehensive analysis
of key segments, trends, drivers, restraints, competitive landscape, and factors that are
playing a substantial role in the market.
6
Figure 6 Global Textile Yarn Market
Global Textile Yarn Market: Growth Factors
Rapid growth in the urbanization and increasing requirement of the industries are the
major factors that anticipate driving the market growth. The shift in consumer
preference towards affordable and comfortable clothing increases the demand for high-
value fabrics such as viscose, silk, and hemp.
Blended varieties of fibers are also taking immense growth in the market owing to
significant features of both artificial and natural yarn thus opening up new growth
opportunities in the coming years. However, instability in the production of plant and
animal source yarn and the strict regulation that is imposed on the trade of textile yarn
products restraints the global textile yarn market to some extent.
7
Figure 7 Yarn Market By Regions
The major market players in the global textile yarn market are:
• Parkdale Mills Incorporated

• Hengli Group
• Kairuide Hulding Co Ltd.
• Vardhman Textiles Limited
• Birleik Koyunlulular Mensucat TIC. V.
• Weiqiao Textile Company Limited
• E SAN.
• Low & Bonar Plc.
• Raymond Limited
• Huvis Corporation
• Grasim Industries Limited
1.1.3 Textile industry in India

The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labour. The textile
industry continues to be the second-largest employment generating sector in the India.
It offers direct employment to over 35 million in the country. According to the Ministry
of Textiles, the share of textiles in total exports during April–July 2010 was 11.04%.
During 2009–2010, the Indian textile industry was pegged at US$55 billion, 64% of
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which services domestic demand. In 2010, there were 2,500 textile weaving factories
and 4,135 textile finishing factories in all of India. According to AT Kearney’s ‘Retail
Apparel Index’, India was ranked as the fourth most promising market for apparel
retailers in 2009.
India is the second largest producer of fibre in the world and the major fibre produced
is cotton. 60% of the Indian textile industry is cotton-based. Other fibres produced in
India include silk, jute, wool, and man-made fibres.
India is first in global jute production and shares 63% of the global textile and garment
market. India is second in global textile manufacturing and also second in silk and
cotton production. 100% FDI is allowed via automatic route in textile sector. Rieter,
Trutzschler, Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks
& Spencer, Zara, Promod, Benetton, and Levi’s are some of the foreign textile
companies invested or working in India. Between January and July 2021, India
exported textile products worth Rs 1.77 lakh crore, which is 52.6 per cent more than
the same period last year.
Figure 8 Yarn Production In India
Some of the important benefits offered by the Indian textile industry are as follows:
• India covers 61 percent of the international textile market
• India covers 22 percent of the global market
• India is known to be the third largest manufacturer of cotton across the globe
• India claims to be the second largest manufacturer as well as provider of cotton
yarn and textiles in the world
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• India holds around 25 percent share in the cotton yarn industry across the globe
• India contributes to around 12 percent of the world's production of cotton yarn and
textiles
• Textile industry in Surat city
Surat is famous for being the biggest hub for textiles, that's why this city of Gujarat is
called the textile city. And the epithet is apt for Surat! The annual turnaround of the city
for textile is around 5 billion rupees. Some of the best markets in Surat are filled with
different styles and varieties of textiles, for example, polyester, embroidered and
printed materials, salwar kameez, and much more. One can find all these products
available in large quantities and at wholesale price. Apart from textiles, unique
jewellery pieces are also available.
The textile market in Surat mainly does weaving processing, yarn production, and
embroidery. The city is also famous for its synthetic products, and astonishingly, every
day, around 25 million meters of processed fabric and 30 million raw fabric is produced.
The primary reason why this city transformed into a textile city is that it can quickly
adapt to the latest trends and changes. From Surat's best wholesale shop to the best
wholesale saree market in Surat, find out where you can shop in the city and learn
everything about the famous textile market in Surat.
Figure 9 Yarn Storage
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1.1.4 Challenges in the textile sector:
The textile sector is the second biggest job provider across the globe, a most important
sector in a country’s economy and offers huge job opportunities. China is a country
with a huge textile industry across the globe in both overall production and exports.
India is the third largest clothing producer in the world behind China and the United
States. In 2016 Vietnam was the world’s third largest exporter of garments behind
China and Bangladesh. Vietnam exports its textile products to 180 countries.
Some Challenges faces by the Indian Textile Industries are:

• Shortage in supply of raw material: Shutting down some units in China and
Europe due to pollution issues has resulted in an unprecedented rise in prices of
basic raw materials in international markets.
• Increase in cost of raw material: Prices have seen an upward increase after
many units in China were shut down due to pollution norms. The rise in prices
of imported raw materials has increased the prices of dyes.
• Pressure to meet stringent social and environmental norms: Environmental
compliance often isn’t at the top of textile and garment importers’ concerns.
Failing to comply with environmental regulations can put supply chain in
jeopardy, as pressure mounts for the apparel industry to improve environmental
compliance efforts.
• Infrastructure bottlenecks: The low quality of India’s infrastructure,
continues to lag behind that of many other Asian countries.
• Uneven regional development: The country’s textile industry is concentrated
in a few pockets of Gujarat and Maharashtra in the west and Tamil Nadu and
Karnataka in the south. A large proportion of workers employed by these units
comes from Bihar, Uttar Pradesh, and West Bengal.
• Lack of efficiency due to manual work: Unlike in developed countries, textile
factories in India are not fully automated and remain labour-intensive.
• Unorganised weaving sector: Approximately 95% of the weaving sector in
India is unorganised in nature. The decentralized power loom and hosiery sector
contributes 85% of total fabric production. In terms of technology adoption in
the weaving sector, India has only 2% share in global shuttle-less looms
installed capacity.
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1.1.5 Textile Industry SWOT Analysis
Strengths of Textile Industry
• Worldwide Demand: Clothing articles are one of the basic human needs.
Everyone wants to have a good quality product for a cheaper price. That’s
where the textile industries come in. They offer decent clothes for a reasonable
price. This is the main reason; they get many buyers.
• Involved Industries Increasing: In modern society, many support industries
are growing. These industries form a relationship of mutualism with the textile
industry. Both parties are dependent on each other. These industries are dyeing,
finishing, embroidery, printing, etc.
• Strong backward linkage facilities: This industry possesses strong backward
linkage facilities. This has proven to be a great asset on multiple occasions. This
causes this sector to improve more in its own way. Also, it provides the industry
with some much-needed support.
• Presence of economic zones: An economic zone is a type of facility that
ensures that the buyer gets to buy many products with the least tax possible.
This encourages buyers to buy more from this industry. This, as a result, allows
the industry to make more sales and earn many profits.
Weakness of Textile Industry

• Lack of modern machinery: The textile industry lacks technology-oriented
machinery and production systems. If these aren’t updated then they could take
a heavy toll on its production. This will later reflect in its sales and profits.
• Unable to go with the flow: Once a steady line of the production system is in
place, it is very hard to suddenly change it to accommodate any new type of
clothing article. As a result, it lacks product diversification. It also has a very
short lead time which is not good for this line of work.
• Lack of forecasting: Lack of forecasting is the main cause of production
setbacks. If an industry is unable to provide a good forecast, it often causes
major issues in the marketing sector. The quantity available does not match the
assumed quantity.
• Depending on some specific buyers: Dependency on a few particular buyers
can be the downfall of this industry. Many of the farmhouses depend on a few
12
of their known customers for their sales. They do not get many new buyers most
of the time and this causes their sales rate to pummel once any of these buyers
drop out or change their choice of farmhouses.
• Higher bank interest and insurance policy: This industry has to face a lot of
unfair treatment. Especially when it comes to banks and insurance companies.
Banks require a high interest while taking loans which is nothing short of
illogical. Many insurance companies, if not all, have a high-priced insurance
policy with partial conditions. The industry has to suffer for this.
Opportunities for Textile Industry

• Buyer attention on the Asian market: Many of the international buyers are
being more interested in the Asian section of the market. This may be a golden
opportunity for the Asian industries to take the market by storm. It will also be
a huge turning point for this industry in general.
• Open costing facility for the international buyer: Many international
customers find their interest in this field being renewed by the open costing
facility. This gives them a huge advantage to draw more buyers in.
• Government and non-government training programs: There are a lot of
people who work in this field. Even though they have curiosity, they often lack
the skills that are needed. So, these government and non-government training
programs can help them to enhance their skill-set. This provides the chance of
improvement to this sector.
• Buyer initiatives for productivity: In this field, many times buyers take
responsibility to initiate the push for productivity. This shows that the buyers
are actually interested in the said products. So, this gives a huge boost to the
morale.
Threats for Textile Industry

• E-shops and on-demand shops: There are many e-shops and on-demand
shops that are mushrooming their way into the market. Now, the market actually
has some internal competition going on. So, these new shops often end up
stealing a lot of customers away from the industry.
• High making cost: The making cost for this industry is quite high and very
hard to achieve. So, this makes having profit very hard.
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• Freight on board cost: Many times, the seller has to take the responsibility
for goods, freight, and marine insurance. But if an accident happens the loss is
very hard to deal with. This will majorly impact the earnings of it.
• Political and environmental crisis: Countries that have a troublesome
political environment, have fewer buyers than those that don’t have them.
Environmental issues can also influence the flow of buyers in a country.
Figure 10 SWOT Analysis
1.1.6 Conclusion
• Review of free-trade pacts with countries that have zero duty access to the targeted
market.
• Amendment of existing archaic labour laws.
• Fast track disbursal of subsidies for technology up-gradation.
• Maintenance can simply not be neglected.
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1.1.7 Competitors of Textile Industry
Revenue (amt Market Cap Sales Growth
Key Players
in Cr) (amt in Cr) (in%)
Arvind Ltd 7229.00 1315.00 -3.75
Vardhman Textiles Ltd 6706.00 5160.00 -2.50
Welspun India Ltd 6828.00 5265.00 3.28
Raymond Ltd 6767.00 3443.00 8.34
Trident Ltd 5394.00 2979.00 12.51
K P R Mill Ltd 3384.00 4015.00 9.18
Page Industries Ltd 2872.00 20243.00 16.68
Nitin Spinners Ltd 1226.00 287.01 17.00
Rupa & Company Ltd 1267.22 1472.00 3.04
Himatsingka Seide Ltd 1709.96 1403.00 11.48
Table 1 Competitors of Textile Industry
25000.00
20000.00
15000.00
Revenue (amt in Cr)

10000.00
Market Cap (amt in Cr)
Sales Growth (in%)
5000.00
0.00
-5000.00
Table 2 Chart Of Competitors
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From the above data given we can interpret that Arvind Ltd is leading in terms of
revenue and Nitin Spinners Ltd is at the bottom of the table. Whereas in terms of market
capacity Page Industries Ltd is leading in market while Nitin Spinners Ltd is lowest in
the table. And in terms of sales growth Nitin Spinners Ltd is leading the table with 17%
yearly growth and Arvind Ltd is lowest in table with negative sale growth of -375 %.
By the data we can conclude that Nitin spinners Ltd may not be good in terms of
revenue and market capacity but it is having nice sales growth and Arvind being good
in revenue but have negative sales growth among the other players. But Page Industries
is looking goods in terms of all the factors.
1.1.8 GDP Contribution of Yarn Industry in India

The domestic apparel & textile industry in India contributes 5% to the country’s GDP,
7% of industry output in value terms, and 12% of the country’s export earnings. India
is the 6th largest exporter of textiles and apparel in the world
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1.2 COMPANY PROFILE
Figure 11 Sumeet Industries Logo
1.2.1 Sumeet Industries Limited

Office Address
• 504, Trividh Chamber, Opp. Fire Station, Ring Road, Surat – 395002. Gujarat
(India).
• Phone Number: 0261-2328902
• Email Address: info@sumeetindustries.com
Factory Address
• BLOCK NO.289,291,304 VILL: Karanj (Kim), TAL: Mandavi, DIST: Surat
• Phone Number: 09978925038
• Email Address: plant@sumeetindustries.com
1.2.2 HISTORY
The Company was incorporated on 1st August, 1988 as a Private Limited Company
and was converted into Public Limited Company on 1st February, 1992. The main
objects of the Company are fully set out in its Memorandum of Association as also
detailed later in this Prospectus.
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1.2.3 CORPORATE PROFILE
Sumeet Industries Limited (Formerly Known as Sumeet Synthetics Limited) started as
a yarn manufacturing unit and has now grown in a huge conglomerate with various
business with an annual turnover of Rs.1200.00 Crores.
The company set up its first manufacturing unit of producing 1500 tons P.A. of
Polypropylene Multifilament Yarn with project cost of Rs. 200 MN and later increased
the capacity of PPMFY to 3900 tons.
Subsequently, the company has set up a Plant to manufacture 12000 MT POY with
capital investment of Rs.300 MN. Now the total capacity of the Plant has been increased
to 1,00,000 Ton per annum.
Today, Sumeet Industries is one of the leading Polyester value chain companies in
India. Despite company`s focus on Indian market, it never lost the opportunity to cater
to the growing polyester markets globally. The Company is exporting to Egypt, Saudi
Arabia, China, Argentina, Poland, Portugal, Morocco, Columbia, Bangladesh, Russia,
Ethiopia, Mexico, Nepal, Brazil, Peru, Algeria, Thailand, USA, Singapore and Turkey
etc.
With a commitment to constantly grow, the company has also never lost focus of
managing its operations most efficiently and always keeping in mind the interest of its
shareholders.
The company has five major divisions: C.P, POY, FDY, Texturizing thereby is having
an integrated manufacturing facility for producing POY and FDY directly from MEG
and PTA, Twisting and Texturizing.
The Company’s manufacturing unit have a location advantage being situated in the
Surat area. Its location gives its proximity to both raw material suppliers as well as end
users. The Production capacity of the Plant is as under:
Name of the Product Production Capacity per day (In Mt)

C. P. Plant 288
POY 128
FDY 147
Texturize Yarn 15
Table 3 Production Capacity
18
Production Capacity per day (InMt)
350
300
250
200
Production Capacity per day

150 (InMt)
100
50
0
C. P. Plant POY FDY Texturize
Yarn
1.2.4 MANAGEMENT PROFILE

Board Of Directors
Name of Director/KMP Designation/Status

Mr. Shankarlal Sitaram Somani Chairman
Mr. Sumeet Shankarlal Somani Managing Director
Mr. ManojkumarGaneshmal Jain Independent & Non-Executive Director
Ms. Zeel Sureshkumar Modi Independent & Non-Executive Director
Mr. Vikashkumar Kamalsingh
Independent & Non-Executive Director
Chandaliya
Mr. Saurav Santosh Dugar Independent & Non-Executive Director
Mr. Abhishek Prasad Chief Financial Officer
Mr. Anil Kumar Jain Company Secretary Compliance officer
Table 4 Management Profile
➢ Mr. Shankarlal Sitaram Somani, aged 65 Years, a Commerce Graduate is the

Chairman of the Company. He has more than 3 decades of experience in Textile
Industry. In 1976, he started his trading business in the name of Somani Trading
19
Co. In the year 1981, he established a Fabric Processing Unit in the name “Somani
Silk Mills (P) Limited” at Ankleshwar near Surat. In 1988, he diversified his
business and established a Texurising Unit in the name of “Mahesh Texurisers
Texturisers (P) Limited at Mangrol (Surat). In the year 1988, he promoted Sumeet
Industries Limited and its I.P.O. was came in the year 1993 and started with setting
up Manufacturing of Polypropylene Multifilament Yarn with production capacity
of 1500 TPA. Later its capacity increased to 3900 TPA. Under his leadership the
company has successfully commissioned Backward Integration cum Expansion
Project of 1,00,000 TPA for manufacturing PET Chips and Polyester Yarn with
project cost of Rs. 400.00 Crores. He has overall control and management of the
Company subject to supervision, control & direction of the Board. He has served
various social prestigious posts like President of Rajasthan Parisad, Surat, President
of Maheshwari Bhawan Samiti, Managing committee member of Sarvajanik
Education Society and Shri Maheswari Vidyapeeth.
➢ Mr. Sumeet Shankarlal Somani, aged 39 years is a Managing Director of our
Company. He has completed his Masters of commerce from South Gujarat
University, Gujarat and Diploma in Business Management from S. P. Jain Institute
of Management & Research, Mumbai. He is looking after company’s day to day
activities.
➢ Ms. Zeel Sureshkumar Modi, is a Graduate Engineer from the field of
Environment Engineering. She has more than 3 Years of experience in the field of
Environmental Engineering. Presently she is a senior executive in a software
company. Ms. Zeel Sureshkumar Modi has been appointed as Non-Executive,
Independent Director of the Company
➢ Mr. Manojkumar Ganeshmal Jain, aged 39 years is a Practicing Chartered
Accountant. He has a Licentiate Company Secretary qualified from Institute of
Company Secretary of India. He has completed its LLB degree from VNSGU. He
is possessing Master degree in Commerce with specialization in costing. Mr. Manoj
Jain has more than 10 years of experience in Auditing and Finalization of Accounts.
He has vast experience in Indirect and Direct Taxation. The company will be
benefited with their good experience in GST implementation. He is presently
president of Terapanth Professional Forum, Surat.
20
➢ Mr. Vikashkumar Chandaliya is an Advocate having around 7 years of
experience in the field of VAT/Service Tax /GST related matters. He became the
member of Gujarat Bar Council in the year of 2013 and also became the member of
Central Bar Council in the year 2014. He has vast experience in the field of Indirect
Taxation. He is presently engaged in VAT/GST practicing work and appears before
the Hon’ble Courts and Tribunals. He has also depth knowledge in the matter of
various judicial proceedings exercised at the Courts. Mr. Vikashkumar Chandaliya
has been appointed as Non-Executive, Independent Director of the Company.
➢ Mr. Saurav Santosh Dugar is a Practicing Chartered Accountant with an overall
experience of around 6 years. He is a Key Partner of the Firm A J S D & Company,
Chartered Accountants based at Surat. He has also Completed Certificate Course
on Forensic Accounting and Fraud Detection from ICAI. He has been conducting
Statutory & Tax-audit, Internal- audit of large & medium scale Companies. He has
specialization in Bank Audits, Direct Taxation, Indirect Taxation & Company Law
matters. Mr. Saurav Santosh Dugar has been appointed as Non-Executive,
Independent Director of the Company.
➢ Mr. Abhishek Prasad aged 45 years is a Chartered Accountant and Chief Financial
Officer (CFO) of the Company. He has 10 years of experience in financial field.
COMPANY SECRETARY
➢ Mr. Anil Kumar Jain, aged 47 years is Company Secretary and Compliance
Officer of the Company. He is the member of “The Institute of Company
Secretaries of India (ICSI)”. He has around 15 years of vast experience in the
field of Secretarial Procedure, Taxation and project management. He is
presently employed as a whole-time practicing company secretary of the
company.
1.2.5 AWARDS & CERTIFICATION

• Our company has been recognized as a One Star Export House for a period from
1st April 2004 to 31st March 2009 by The Government of India.
• We have received award for Highest Export Performance in Polypropylene

Yarn in 2001–02.
21
• We have received Gold Trophy for Outstanding Export Performance for year
2001– 04 from SRTEPC.
1.2.6 VISION & MISSION

VISION
• To be amongst the most admired and trusted integrated textile Company in
India.
• To become stand and as well recognized quality product supplier of Synthetics

Yarn in India
• Provide a world-class customer experience.
• Be a company that is a pleasure to do business with.
MISSION
• To make our presence in the Indian Polyester Industry as an emerging integrated
player as eco-friendly supplier of superior quality of Synthetics Yarn, Polyester
Fabrics ensuring total customer satisfaction through continuous up-gradation &
innovation synergizing the advantages of value-added product mix.
• To consistently achieve high growth with the higher levels of productivity.
• Being customer driven and quality focused adding value to our clients and
improving business results by providing products that are valid, easy to use, fast
and cost effective.
• Continuously improving our offerings to ensure both the content and the
technologies are innovative and leading edge.
• Ensure high standards of corporate governance.
• To become a process driven organisation.
22
1.2.7 SWOT ANALYSIS
STRENGTHS
• Experienced promoters with over 30 years of experience in the industry
• Successfully implemented various expansion schemes in the past with in-house

expertise
• Consistently achieved capacity utilization over 100% in respect of POY & FDY
• Locational advantage being the company is situated in Surat City. Surat City
itself a big market of Polyester Industry capturing more than 90% of sale of
man-made fibre products.
• Products are well accepted in the market both nationally & internationally
• With the implementation of the proposed project, the company will reap the
benefits of economies of scale due to optimum utilization of the existing
facilities.
• Professional set up of organisation with qualifies and experienced employees.
• Strong marketing network throughout the country.
• One of the costs – efficient polyester manufacturer.
CHALLENGES
• The prices of raw materials and finished goods move in tandem with
international prices, which, in turn, have positive correlation with the prices of
petrochemical products.
o Company is in medium size as compare to market leaders like Reliance

Industries Limited
o The company is exposed to various financial risk emanated from foreign

exchange currency risk.
OPPORTUNITIES
• Polyester is the fiber of the future, finding varies applications across home
furnishing, apparel industry, automotive industry, sportswear, technical textiles
etc.
23
• Our Product mix spread over five important Polyester products: - Pet Chips,
POY, FDY, Texturized Yarn & Carpet Yarn
• With no major capacity increase being created in the recent past / being planned
in the near future, the existing players are well positioned to take advantage of
the emerging scenario where demand is expected to exceed supply.
o Potential growth in domestic demand for POY due to increase in share

of non-cotton fabric in total fabric production on account of lower
availability of cotton, reduction in the excise duty on non-cotton yarns,
and higher cotton yarn exports.
THREATS
• India has concluded / is in the process of concluding Free Trade Agreements
(FTA) with a number of countries like Sri Lanka, Thailand, China, etc. This will
lead to lower tariffs all round and may affect Indian textile units, including FIL.
Post WTO, when India would be exposed to international competition. FIL’s position
is expected to be vulnerable vis-à-vis those companies with global size and modern
facilities.
24
2 PRODUCTION DEPARTMENT
Figure 12 Production Image
2.1 Plant location

The Polyester Filament Yarn Expansion Project of the company is proposed to be
located at the existing site at Vill: Karanj, Ta: Mandvi, Dist: Surat which has all the
fully developed infrastructural facilities.
1) Water and power are available at all the project sites. GEB Power supply at 11 KV
is available near the site. However, the project will prefer Captive Power use from
its own Power project being set up by company.
2) The site is well connected by roads and is close to National Highway and state
Highway. National highway is just few kilometres from the site.
3) Since there are several industrial units located and being planned at the proposed
sites, skilled and unskilled labour force with experience is readily available.
The Location of the expansion project is the same site of SIL where all the infrastructural
facilities, utilities and other conveniences are already available. This will not only help
the promoters to reduce implementation period but will also help to reduce many types
of capital been necessary to incur.
25
Figure 13 Sumeet Industry Plant
PROCESS FLOW CHART

PASTE (PTA & MEG)
↓
FIRST ESTERIFICATION
↓
SECOND ESTERIFICATION
↓
PREPOLYMERZATION
↓
FINAL POLYMERIZATION
↓
MELT
↓
SPINNING BEAM
↓
METERING PUMP
↓
WINDER
↓
PRODUCT (POY)
26
2.2 BRIEF DETAIL ABOUT PRODUCT:
PRESENT LINE OF BUSINESS ACTIVITIES:
Product Production Capacity per day (In Mt)

C. P. Plant 288
Polyester Filament Yarn (POY) 128
Polyester Filament Yarn (FDY) 147
Texturised Yarn 15
Table 5 Plant Capacity
❖ P.P. MULTI FILAMENT YARN:
Figure 14 PP Multi Filament Yarn
Our Company started its Polypropylene operation way back in 1993. The Company
imported its technology from Neumag (Germany) who is the pioneer in
Polypropylene plant in the world. Our company has the following capacities.
• Polypropylene Partially Oriented Yarn: 3900 M. Tonnes Per annum.
• Polypropylene Textured / Crimp Yarn: 3900 M. Tonnes Per annum.
• Polypropylene Twisted Yarn: 2000 M. Tonnes Per annum.
The most important quality of polypropylene is its versatility. it can be tailored to
many fabrications, methods & applications. Excellent chemical resistance, lower
tenacity, high melting point & moderate cost are some advantages which makes
polypropylene more attractive.
Our company has well equipped lab of international standards to maintain even
quality of material. Our company today is among the best quality manufacturer in
India, for producing dope dyed polypropylene yarn in which accuracy and
27
uniformity of colour is guaranteed. Our company’s product is marketed under brand
name “SUMILON” and has and approximate share of 20% in India.
• PRODUCT: Polypropylene Partially Oriented Yarn.

Polypropylene High Elongation Yarn.
Polypropylene Textured / Crimp Yarn.
Polypropylene Twisted Yarn.
• DENIER: Ranging from 65 denier to 340 denier.
• COLOUR: 35+ in ready stock. Colours can be made as per
customer requirement.
• APPLICATIO: socks, Home Furnishing, Knitted Fabrics, Sports Wear,
elastic Tapes, Laces, Ribbons, Filter Fabrics, Luggage Fabrics, and Car
Upholstery etc.
• EXPORTS: USA, South Africa, Nepal, Bangladesh, Sri Lanka,
Spain etc.
• ADVANTAGES: Colour Fastness, Softer Feel, Odor Free, Soil & Stain
Resistance, Non-Allergic & Antibacterial, Quick Drying, Low Specific Gravity,
Abrasion Resistant.
❖ POLYESTER FILAMENT YARN (POY/ FDY):
Our company starts its Polyester operations in 2004. We have installed new state of
art automatic craft winder plant imported from Barmag (Germany), which is the
latest & cost-efficient technology in the world. The initial capacity is 12,000 Tonnes
per annum which has been expanded to 36000 Tonnes per annum for Polyester POY
and 20000 Tonnes per annum for Polyester FDY recently. Previously we were
manufacturing Polyester POY using Raw Material PET Chips but now we have
installed C.P. Plant to produce POY /FDY by direct spinning using polymer melt
produced by our C.P. Plant which saves a considerable amount in manufacturing
cost and also improves the quality of the product.
Our company has a well-equipped lab of international standard equipment’s
imported from Germany, Austria and Japan. The yarn manufactured undergoes
various tests like Denier, Tenacity, Elongation, % CV, Uster, Draw Tension,
shrinkage, Oil Pick up, Hose Knitting, Dyeing Et
28
Figure 15 Polyester Filament Yarn
POLYESTER FILAMENT YARN
➢ PRODUCTS: Company is producing Polyester Semi Dull Intermingled

Partially Oriented Yarn & fully Drawn yarn.
➢ DENIER: Ranging from 50 denier to 250 denier.
➢ FILAMENTS: 14, 36, 48 & 72
• FEATURES:
Our POY can be texturised on high-speed machines at 1000 meters per minutes All
POY spools are with tail transfer increasing the efficiency and productivity. All
POY is intermingled making it capable to run-on high-speed machines.
Our Intermingled FDY yarns are suitable for direct twisting, warping and Weaving
of Fabrics.
The fabric made from these yarns have a feel and drape similar to fabrics produced
from Pure Silk resulting in high realization of product.
FDY Yarn eliminates Draw Twisting and sizing process reducing the cost of
products for light and medium range of fabrics.
• APPLICATIONS:
POY is used on Texturising & Draw Twisting machines with final application in
weaving & knitting and Our Intermingled FDY yarn are suitable for direct twisting,
warping, sizing and Weaving of Fabrics.
• EXPORTS:
Company is regularly exporting POY to Argentina, Egypt, Syria, Saudi Arabia,
South Africa, Nepal, Bangladesh, Iran etc.
29
❖ PET CHIPS (POLYESTER CHIPS):
We started PET Chips manufacturing from July 2009. We installed C.P.Plant of
100000 TPA capacity of which we are manufacturing 53000 TPA Polyester POY
and FDY Yarn and balance 47000 TPA PET Chips.
PET CHIPS:
Figure 16 PET Chips
• PRODUCTS: Company is producing Polyester Chips Semi Dull and Bright

used for manufacture of Polyester POY and FDY.
➢ In House Services:
Our company has been highly professional in handling various processes in house
so as to make sure that we don’t depend on others for various supplies. We highly
believe in monitoring the various products & their processes and thus we feel
confident about the products we offer.
➢ POWER:
Our company has in house power generation. We are running captive power
generation since 8 years. We believe in conservation of energy as well as nature.
Gas being an eco-friendly fuel and low-cost fuel, our company has total 10 MW
gas-based power plant for captive use. Power cost of captive power plant is about
40% cheaper than electricity tariff of State Electricity Board.
30
The other group company also installed wind mill for power generation at Kutch to
conserve nature & to make the power cost economical. This wind mill is installed
under the supervision of Suzlon.
2.3 REQUIREMENT OF RAW MATERIALS, UTILITIES

AND AUXILIARY FACILITIES
The proposed plant will manufacture 35000 TPA Polyester POY yarn and 12000 TPA
Polyester FDY. The Capacity utilization for the first year of production is taken as
80%, 85% in the second year, 90% in the third year and 95% of rated capacity in fourth
year.
This is a forward integration of existing C.P.Plant as such required raw material
(Polymer Melt) is readily available at factory site.
➢ ELECTRICAL SYSTEM:
Company Propose to install 4 Nos. Natural Gas Based Gen set of 2000 each total
capacity comes to 8.00 MW. Power requirement for this project will be as under.
1. For FDY Spinning Plant Power requirement will be 900 units for per ton
production of Polyester FDY. Total comes to 90000 units per day.
2. For POY Spinning Plant Power requirement will be 400 units for per ton
production of Polyester POY. Total comes to 13200 units per day.
3. Total power requirement comes to 103200 units per day or say 4.30 MW,
which is about 53.75 % of our proposed power plant. We plan to run 3 Gas
Base Gen Set at 72% capacity and keep one Genset at standby.
➢ COMPRESSED AIR SYSTEM

Five horizontal reciprocating non-lubricated type compressors each having A free air
delivery of 1172 CFM (FAD) at a discharge pressure of 7 kg/cm2g for low pressure air
requirement and Three Nos. horizontal reciprocating non-lubricated type compressors
each having A free air delivery of 517 CFM (FAD) at a discharge pressure of 11
kg/cm2g for high pressure air requirement are proposed. The compressors will be
complete with suction filter/silencer drive motor, ‘V’ belt drive arrangement after
cooler, air receiver and controls. For providing dry air at (-) 20 deg.c pressure dew
point for process and instrument, services, one air drier (split flow, no loss type) of 517
CFM capacity at A pressure of 11 kg/cm2g is proposed. Oil free and dry compressed
31
air from the drier will be supplied to various process users as well as instruments and
controls.
➢ RAW WATER SUPPLY SYSTEM

Raw water for various uses in the plant will be drawn from the Bore wells of the project
site. The water will be drawn from the bore well and stored in a reservoir in the plant
site.
➢ PRETREATMENT OF WATER:
Raw water pumps transfer water from Reservoir/Pumps through pressure sand filters to
filter to the water to filtered water storage tank and to the water treatment plant
comprising softening plant and DM water plant. Unfiltered water is stored directly in
service water tank which is supplying water to Toilet, Wash basins etc.
➢ WATER TREATMENT PLANT:

DM water plant consisting of a packaged unit including regeneration system to give net
output of 15 m3/day is proposed. Two Nos. softeners ach of 7 m3/hr capacity proposed;
the soft water will be stored in soft water storage tank of 50 cu. m. storage
capacity. Soft water pumps will pump water from the soft water storage tank to make
up the depleted water levels in cooling towers, air washers for quench and take up,
chilled water expansion tank and hot water expansion tank. For regeneration of
softener, Nacl will be used. Bulk salt storage tank catering to 15 days requirement will
be provided. From this salt solution will flow by gravity to the measuring tank. Salt
solution will be transferred to softeners with the help of hydraulic ejectors.
Waste effluent from DM plant will be led to neutralizing pit through drains, where it
will be neutralized and discharged to sewer.
➢ COOLING WATER
To cater to cooling water required for various cooling requirements, A cooling water
system consisting of induced draft cooling towers, set of circulating water pumps,
supply and return water pipes, valves etc, is proposed. The cooling towers shall be
PVC towers with PVC fill and RCC basin and will be designed as A six cell unit with
each cell capacity of 280 m3/hr. The cooling water will be circulated to the refrigeration
plant by five (four working and one standby) pumps of 450 m3/hr capacity. For cooling
water circulation in the equipment of process plant and the balance utilities
32
equipment another set of two (one working and one standby) pumps of 50 m3/hr will be
installed.
➢ FIRE PROTECTION SYSTEM:

This additional system will be designed to conform to the Tariff Advisory committee’s
Fire Insurance Regulations. The system consists of pressurized fire hydrant system for
various areas of the plant. Portable fire extinguishers, sand buckets will be provided as
first aid protection at all necessary points in the plant.
➢ CHILLED WATER SYSTEM:

The plant will consist of chilled water preparation and supply system. Vapor Absorption
system of 1200 TR capacity is proposed to be installed to meet the chilled water
requirements of the air conditioning of process plant.
For supply of chilled water from the chillers to the air conditioning system, 4 nos of
pumps (Three running and one stand-by) each having capacity of 350 m3 / Hr will be
provided.
➢ AIR CONDITIONING SYSTEM:

Air conditioning systems are proposed for the various areas as follows:
a) Quench air unit
b) Take-up/Textile laboratory unit
c) Inverter room and control room unit
The description of these three systems is given below:
➢ QUENCH AIR UNIT

This unit caters to the requirement of quench air required for quenching of yarn which
is subsequently discharged partly to atmosphere and partly into spinning area.
460000 m3/hr of Air is passed over cooling coils (in summer) /preheating coils (in
winter) by means of a damper. The preheated/precooked air is then washed & cooled
to a dew point of 11.2 deg.c in air washer, heated across the reheating hot water coil to
A temperature of 18 + 1.5o c DB (RH of 65 + 2.5%), filtered through fine filters &
HEPA filters and supplied to quench air chamber maintained at air pressure of 50 + 5
mm wg. From the quench chamber the air is discharged into spinning area & finally
exhausted through wall mounted gravity louvers.
33
The various equipments provided for this system are as follows:
Pre-filters, cooling coil, preheating coil, Air washer, spray water pumps, Rehesting coil,
supply air fan, fine filters, HEPA filters, Air distribution system, Necessary piping,
valves and controls.
➢ TAKE-UP AND TEXTILE LABORATORY UNIT
This unit caters to the Air conditioning requirement for Textile Laboratory and & take-
up room. Inside Design condition 22 + 1.5o c, 65 + 5% RH.
An enthalpy control system is provided comprising of automatic exhaust/
recirculation/fresh air damper system operating in conjunction with chilled water
control system based on outside ambient air conditions.
Fresh as well as recirculated air (450000m3/hr) is passed over cooling coils/preheating
coil. The preheated/precooled air is then washed and cooled in air washer, heated
across A reheating coil to A temperature of 22+1.5oc DB (65+5% RH) and supplied to
take up room & textile lab. The return air is exhausted / recirculated by means of
enthalpy control system.
The various equipment provided for this system are as follows: Fresh/
Recirculation/Exhaust air damper system, prefilter, preheating coil, cooling coil, Air
washer, supply air fan, Reheating coil Air distribution system, necessary piping, valves
& controls
➢ INVERTER ROOM AND CONTROL ROOM UNIT:

A standard air handling unit (AHU) is provided to cater to the air conditioning
requirement (25 + 1.5 o C) for inverter room & control room.
Dehumidified air (32300 m3/hr) is supplied to inverter & control rooms. Return air is
routed back to AHU over false ceiling through return air ducting. The return air is
mixed with fresh air (10% equal to unfiltered air exhausted) cooled and recirculated to
the areas to be conditioned. The system consists of the following equipment:
Pre-filters, cooling coil, heating coil, supply air fan, Air distribution
system, necessary piping, valves & controls.
BASIC RAW MATERIAL:

➢ PTA (Purified Terephthalic Acid):
PTA is main raw material for PET chips. 858 kg of PTA is used for producing 1000 kg
of chips.
34
➢ In India main PTA supplier are:
a) Reliance Industries Limited
b) I.O.C.L. Panipat
c) Mitsubishi Corp. Haldia
➢ MEG (Mono Ethylene Glycol):
After PTA, MEG is second basic raw material for producing polyester chips. 336 kg of
MEG is used for producing 1000 kg chips. Consumption of MEG is believed to be
about 6% higher at 16.8 million tonnes which capacity more approximately 7% to 19.8
million tones. This lead to an average utilizations rate of almost 85%.
➢ In India main MEG supplier are:
a) Indian Petrochemicals Ltd.
b) India Glycols Ltd.
2.4 MANUFACTURING PROCESS AND DESCRIPTION:

2.4.1 MANUFACTURING PROCESS:
1. PTA UNLOADING & CONVEYING:
Conveying system will convey PTA delivered in bags into PTA storage silo the Poly
Plant.
From PTA silo PTA is continuously metered into PASTE PREPARATION TANK by
loss in weight feeder.
2. PASTE PREPARATION:
PTA, MEG & Polycondensation catalyst are mixed in a defined ratio to form a paste.
3. ESTERIFICATION REACTOR:
Two reactors equipped with agitators are provided in the esterification reaction. In
which PTA& MEG react to from diglycol terephthalate (DGT) while water is spilt off,
& the Polycondensation reaction is initiated while EG is spilt off. The etherification
rate can reach 91.0% in the first reactor & 96.5% in the second esterification reactor.
The temp, pressure & level in the reactor are regulated so as to control esterification
rate & ensure stable operation of the plant. One process column is used for vapour
phase separation is shared by the two esterification reactors. The separated component
EG flows back to the two reactors. After condensation of light component of the head,
35
part will be refluxed to the tower; the remaining will be sent as production sewage to
water treatment plant.
The internal heat exchanger coils of the first esterification reactor are heated by primary
heat transfer medium. The internal heat exchanger coils of the second esterification
reactor & process column are heater with liquid heat transfer medium from the
secondary heating circuit, supplied directly with liquid HTM from the primary heating
circuit. All the vapour lines & heating jackets of the reactors are heated by Down their
system. TIO2 is feed to the second esterification reactor by a screw pump.
4. PREPOLYCONDENSATION:
The diglycol terephthalate (DGT) leaving the esterification stage is fed into the
prepolycondensation reactor, equipped with agitator. The polycondensation process
initiated in the esterification is further continued in the prepolycondensation reactor &
a low molecular PET is obtained.
The degree of polycondensation (DP) is set by maintaining pressure, temp, and

residence time. The EG spilt off during prepolycondensation is withdrawn in the form
of vapour, condensed in the spray scrapper condenser with a cold EG cycle & feed back
into the process column.
The required vacuum is generated by a central vapour MEG vacuum ejector (common
for prepolycondensation & polycondensation reactor).
Prepolymer Melt is conveyed through propolymer filter by gear pump & sent to the
final polycondensation reactor.
The internal heat exchanger coils of prepolycondensation reactor are heated by liquid
heat transfer medium from the secondary heating circuit. All the vapour lines & heating
jackets of the reactors are heated by dowtherm system.
5. FINAL POLYCONDENSATION REACTOR

The product leaving the prepolycondensation system is fed continuously into the final
poly reactor. Where under agitation & high vacuum the final product quality is
achieved.
36
The degree of polycondensation (DP) measured as viscosity is set to the desired final
valve by maintaining pressure, temp, and residence time. The EG spilt off during
polycondensation is withdrawn in the form of vapour, condensed in the spray scrapper
condenser with a cold EG cycle & feed back into the Paste Preparation Tank. Vapour
EG vacuum ejector removes the inert gases.
The polymer Melt is feed to the chips production system through polymer filter by the
special designed polymer discharge pump.
The internal heat exchanger coils of polycondensation reactor are heated by liquid heat
transfer medium from the secondary heating circuit. All the vapour lines & heating
jackets of the reactors are heated by Dowtherm system.
6. CHIPS PRODUCTION:
The extruded polymer is fed into an underwater palletize which solidifies them, then
chops them into regular size chips.
The excess water is subsequently removed in an air driven drier. After classifying the
same for over sizing chips, chips are conveyed and stored in silos.
2.4.2 DESCRIPTION OF POY PROCESS:

1. SPINNING
The melt received from C.P. Plant directly fed via transfer line into the individual
spinning beams. A static mixer is arranged in front of the main fold leading to the
individual spinning beams, which takes care of a further melt homogenization and
uniform pigment concentration.
The melt is further distributed to the individual spinning positions in the spinning
beam. Static mixers are also in the entrances to each spinning position.
Two four-stream spinning pumps are provided for each spinning position, each one
serving one double spin pack with two spinnerets. The melt is exactly metered for each
spin pack with the aid of the spinning pumps. The spinning pumps are driven via
reduction gears with clutches by synchronous motor which is maintained at exact speed
by a static inverter. From the pumps, the melt is conveyed to the spin packs where the
melt is distributed, filtered once again and fed to the spinneret.
37
2. DOWTHERM SYSTEM:
The entire spinning system is heated with Dowtherm vapour which is generated in a
separately installed Dowtherm vapour generator. The entire system operates as
condensation heating. This ensures that a uniform temperature is achieved on all points
of the spinning section when using Dowtherm.
The entire Dowtherm system may be connected to a vaccum unit in order to be able to
maintain the required temperature of Dowtherm vapour, also if temperature below the
Dowtherm boiling point is necessary.
3. QUENCHING SYSTEM:
The cooling of the filaments takes place in the cross-flow type quench air ducts with
air-conditioned quench air which is prepared and controlled by the quench air unit.
The quench air velocity profile and the air volume is pre-adjusted by hand individually
for each quench duct prior to start-up so that same conditions are given for all quench
ducts, regardless of the distance to the quench air unit.
Honeycomb-type rectifiers located between two screens in the rear of each quench air
duct to provide a laminar flow free of turbulences.
The cooling air which comes out horizontally is diverted slightly downwards owing to
the speed of the yarn bundle and the heating up. This diversion is corrected through
the hot air exhausting device which is located opposite, below the spinnerets. Volatile
material constituents, which would otherwise lead to contamination of the spinning
system, are exhausted below the spinneret with the hot air and collected by a separator
before being exhausted to the open air.
The individual yarns are provided with spin finish liquid in the bottom part of the
quench air duct in order to prepare them for the further processing.
4. HIGH SPEED TAKE UP:

The ten ends coming from each spinning position are separated ends by separator thread
guides. The ends are guided to spindle driven, non-heated, reversing godets; the lower
and upper godets are separately speed controlled by each static inverter so that the
smallest tension possible for winding can be preset. After passing the reversing godets,
the ends are brought to their winding positions by thread guides arranged in a support
38
arm. This support arm also accommodates the yarn monitoring and air-entanglement
systems.
Then the ten ends are wound on one bobbin holder of the spindle driven, high-speed
automatic winders. Traverse system with ribbon breaking device is speed controlled
by one static inverter set. The winders are equipped with automatic package expelling
& threading device.
❖ SPECIFICATION OF FINISHED PRODUCT:

The specification of finished product to be produced in the plant is as follows:
1. Polyester Filament Yarn (FDY):
➢ FDY denier: 30 to 150 den.
➢ Denier Variation: 1% approx.
➢ Tenacity at break: 2.4 – 3.0 g/den.
➢ Elongation at break: 28 – 34%
➢ Ulster evenness: ≤1%
➢ Oil on yarn: 1.1% approx.
➢ Cross section: Circular
➢ Yield – Full packages: 90%
(+/- 6% deviation of nominal package weight)
2. Polyester Filament Yarn (POY):
➢ Final denier: 36 to 220 den.
➢ POY Denier: 50 to 306 den. (approx.)
➢ Denier Variation: 1% approx.
➢ Tenacity at break: 2.4 – 3.0 g/den.
➢ Elongation at break: 130 – 150%
➢ Ulster evenness: ≤ 1 %.
➢ Oil on yarn: 0.4% approx.
➢ Cross section: Circular
➢ Yield – Full packages: 90%
(+/- 6% deviation of nominal package weight)
39
2.5 PROJECT IMPLEMENTATION
1. INTRODUCTION:
In implementing the project of this magnitude, adequate consideration needs to be given
to the following aspects:
a) Organizational Resources and coordination.
b) Project Engineering and Design
c) Procurement
d) Scheduling
e) Construction and Commissioning Management
f) Quality Assurances and Quality Control
g) Cost Estimation and cost control
2. ACTION PLAN-KEY FACTORS:
Due attention will be given to the following factors which are critical for successful
project execution:
a) Process technology already tested and used by the Promoter Company is
already available; hence this area has already been taken care of.
b) Locating and hiring experienced detailed engineering consultant with
resources. Promoter Company is having technically qualified and experienced
engineers to take care of detailed engineering.
c) Close attention in setting up of a task-oriented project organization with a
dedicated group of people under a competent project Manager during the
tenure of the project. This aspect has already been taken care of.
d) Careful selection of vendors/contractors based on their past experience, price
competitiveness and current work load. Existing key technical executives and
directors are already on this job.
e) Evolving of procedures for speedy contract award, Company has already
evolved such procedure.
f) Establishing of realistic time schedules.
g) Delegating adequate powers to the project Managers of Promoter Company and
detailed engineering consultant to enable speedy decisions.
h) Inspection and expediting of equipment during manufacture, testing etc.
i) Providing quality Control/Assurance.
40
3. PROJECT MONITORING:
At the start of the project a detailed network schedule would be drawn up to identify
critical activities and schedule for each activity. Based on the scheduled dates in each
activity on the network schedules, schedules will be drawn for:
a) All design activities viz basic studies, technical specification, design drawings,
order placement etc.
b) Accepted delivery schedules of equipment and systems.
c) Start and end dates of construction activities such as site grading, drainage,
excavation, foundation work, super structure, cladding, roofing, finishing,
equipment, erection, piping fabrication and erection, instrument installation,
electrical installation, insulation, painting etc.
d) Start and end dates of commissioning activities of process utility, electrical,
instrumentation systems/equipment.
The schedule will be regularly updated to reflect status of project, identify bottlenecks
and shortfalls and take appropriate timely action to forestall any delay.
The reports based on visits to manufacturers’ works to expedite delivery of equipment,

will also be incorporated in the schedule so as to know the status of equipment
deliveries and the consequential impact on project completion.
4. COMPUTERISATION:
Computer aided design and drafting preparation of network schedules and procurement
schedules, scheduling and monitoring project execution and costs, inventory control are
areas where computerization will be used for speedy and efficient execution and
monitoring of the project.
5. PROJECT SCHEDULE:
The preliminary project schedule is indicated in Schedule “A”. The schedule envisages
project completion in 15 months from the start of detailed engineering and financial
closer for imported equipment.
41
2.6 Packing, Storage & Dispatch
Figure 17 Packaging at Sumeet Industry
Packing Material: We have the locational advantage as our major customers of

Polyester POY are within 5 K.M. radius. This advantage has reduced our packing cost
substantially by supplying POY on pallets. Major customers of FDY are in Pipodara,
Sachin, Surat area close to our factory.
We have installed a complete state of art lab to check the quality of all packaging
material online to assure best quality.
Storage: Warehousing is done beside the Sumeet industries production plant. So that
it reduce their cost of transportation to Warehouse and the directly deliver the finished
product from their warehouse by trucks.
Figure 18 Warehouse At Sumeet Industry

42
2.7 Quality control
The Quality Control Department is responsible of monitoring and ensuring that each
stage of production is followed by all the necessary procedures for safe use of
machinery and that each product coming out of the production process, complies with
all standards and specifications that have been defined so to ensure a smooth and
trouble-free operation
Sumeet Industries have a full-fledged quality control department for each division
where quality of raw materials as well as finished goods is tested. All the products
manufactured or procured goes through various stringent tests to assure the quality &
consistency of our products. We have a team of qualified professionals who are
continuously engaged in extensive research to produce superior quality fabrics. We
employ latest technology and techniques to enhance the quality of our products.
The enhanced quality so developed has been performing well in the domestic as well
as in international market. Successful efforts are being made to re-engineer the products
& process to reduce cost and optimize material consumption. The product lines of the
plant are designed to change product with minimum changeover losses and thus meet
customer requirement even for small quantities.
Quality Objectives:
Our quality objectives are as dynamic as the fashion trends worldwide and we always
bank upon our core competence to learn, adapt and deliver faster. In other words, no
compromise when it comes to quality.
➢ Consistently high standards.
➢ Excellent workability on Machines.
➢ Contemporary handles and feels in fabric from our yarns.
➢ Adhering to international packaging to suit customers’ needs.
We have a well-equipped lab of international standards having equipments imported

from Germany, Austria , Singapore and Japan. The yarn manufactured undergoes
various tests like denier, uster, tenacity, elongation, % CV, Draw Tension, Shrinkage,
Oil pick up, Hose Knitting, Dyeing, etc
43
Microscope: This is use to check the
filaments in the yarn.
Figure 19 Microscope
Bursting Strength Tester-

Analogue: helps to determine
the bursting strength of
packaging materials.
We understand that the
packing material which
carries our valued product
should also be of best quality
to assure safety of our
product. We are equipped
with lab which carries various
tests, GSM of paper,
dimension, B.S and moisture
test of corrugated box
Figure 20 Bursting Strength Tester-Analogue
44
3 MARKETING DEPARTMENT
Figure 21 Marketing Management
45
3.1 Marketing Mix
Figure 22 4 P's
Marketing mix is the term used to describe the combination of the four inputs which
constitute the core of a company's marketing system: the product, the price structure,
the promotional activities, and the distribution system."
According to Philip Kotler, "A Marketing mix is the mixture of controllable marketing
variables that the firm uses to pursue the sought level of sales in the target market."
3.2 Product
This represents an item or service designed to satisfy customer needs and wants. To
effectively market a product or service, it's important to identify what differentiates it
from competing products or services. It's also important to determine if other products
or services can be marketed in conjunction with it.
Products at Sumeet Industries

Sumeet Industries Limited pursuing a corporate vision of delivering world class
customer experience. Over the years, the company has developed capabilities to
46
customize and improve their product designs by absorbing, adapting and improving the
acquired technology both from national and international suppliers. The company has
world class in-house lab equipped with fully imported tested equipments for
development of yarns consisting varied denier and filaments.
The company is an emerging integrated producer of Pet Chips, Superior quality of

POY/FDY, Texturised and Carpet yarns in existence since 21 Years with a consistent
track record of profitability and further planning to enhance its manufacturing capacity
of both POY and FDY by introducing Bright and Nylon Yarns.
The company has five divisions looking to its product category i.e., Pet Chips, POY
Yarn, FDY Yarn, Texturised and Carpet Yarn.
The company has successfully completed its Rs. 400.00 Crores Backward Integration
cum Expansion Project in the span of five years and now producing 300 Tons of
Polyester Yarns (POY & FDY) per day. The future of the organization holds new
promises and to be a company of the future
1. PET CHIPS
Figure 23 PET Chips
SUMEET INDUSTRIES LIMITED has setup fully imported C.P. PLANT (Continuous
Poly Condensation Plant) of 100000 Tons per annum capacity.
47
Under this project POY / FDY will be produced directly from PTA A and MEG which
will reduce cost substantially and will also be very much competitive and the company
will be in a position to compete in the market in its price strategy with its peer group.
Apart from its cost advantages, company can ensure good consistent quality of
POY/FDY produced on CP Lines because product will be much better than existing
product. The Company is also in the process of setting up another 6 MW captive power
plant imported from Deutz, Germany, at its existing unit for its proposed project.
2. Partially Oriented Yarn (POY)
Figure 24 Partially Oriented Yarn (POY)
POY produced at Sumeet Industries has now become synonymous with high quality
POY products being produced to meet the need of new generation ‘High-Speed’
machines.
The company started its polyester operations in the year 2004. We have installed new
state of art automatic craft and wings winder plant imported from Barmag, Germany,
which is the latest & cost-efficient technology in the world. The initial capacity of the
POY Plant was 12500 Tonnes per annum. In the year 2009-10, the company has
expanded its capacity from 12500 TPA to 48000 TPA.
Features
• POY can be Texturised on high-speed machines at a speed of 900-1000 Meters
per minute.
48
• All POY spools are with transfer tail increasing the efficiency and productivity.
• All POY is intermingled making it capable to run-on high-speed machines.
• All POY spools are equal weight i.e., 15 kgs.
3. Fully Draw Yarn (FDY)
Figure 25 Fully Draw Yarn (FDY)
Fully Drawn Yarn is produced by similar process as POY except that yarn is produced
at higher spinning speed. Intermediate drawing is integrated in the process itself which
allows stabilization. This apart, intermediate drawing also forms a part of the
manufacturing process. We produce the highest quality of FDY available in the market
and supply to our customers in the most affordable and convenient way.
Features
• FDY running on high-speed warping, knitting, sizing & looms
• All FDY spool are with same weight increasing the efficiency and productivity
• All FDY is intermingled making it capable to run-on high-speed machines
without breakages
• All FDY spools are equal weight
49
4. Polyester Texturised Yarn
Figure 26 Polyester Texturised Yarn
Sumeet Industries has installed renowned machines to produce Texturised Yarns at par
with the international best. High-speed Texturising machines helps in producing
intermingled/non-intermingled Texturised yarns confirming to international quality
norms.
3.2.1 Packaging and Labelling

Definition
Packaging is the technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the process of design, evaluation, and
production of packages. Package reduces the risk of wastage, spoilage, leakage, and
evaporation etc. in the process of transportation and storage.
Types of Packaging
• Primary packaging is the material that first envelops the product and holds it.
This usually is the smallest unit of distribution or use and is the package which
is in direct contact with the contents.
• Secondary packaging is outside the primary packaging, perhaps used to group
primary packages together.
• Tertiary packaging is used for bulk handling, warehouse storage and transport
shipping. The most common form is a palletized unit load that packs tightly
into containers
50
Labelling
Definition of Labelling
Label is a strip on the container or packaging on which certain instructions regarding
the functions and uses are printed. Labelling is any written, electronic, or graphic
communications on the packaging or on a separate but associated label.
Type Of Label
• Brand Label
It indicates brand name and symbol.
• Grade Label
It indicates grade, class, group, quality or status of product.
• Descriptive Label
It describes the product. It gives basic information about the product.
• Informative Label
It provides complete information about the product. It provides details about
how, when and why to use product along with necessary precaution.
• Instruction and warning Label

It provides instruction necessary to use and operate the product. While warning
label highlight precautions the user should observe while using the product.
Packaging of Products at Sumeet Industries

• Partially Oriented Yarn
Material is packed in 800 Kg pallet or Corrugated box with net weight of 60 Kgs.
• Fully Draw Yarn

Material is packed in corrugated box with weight of 34 Kgs
Sumeet Industries have installed a complete state of art lab to check the quality of all
packaging material online to assure best quality. Has the potential customers are near
the warehouse so they are having a cost advantage has they can supply their POY on
pallets.
51
Sumeet Industries have installed a complete state of art lab to check the quality of all
packaging material online to assure best quality.
Bursting Strength Tester-Analogue

The bursting strength tester analogue
model is one of the most economical
and highly accurate testing
instruments that helps to determine the
bursting strength of materials. This
testing instrument can easily be used to
determine the burst strength of various
products like paper, paper boards,
corrugated boxes, etc. Thus, with the
help of the bursting strength test, you
will be able to determine the durability
Figure 27 Bursting Strength Tester-Analogue

of packaging materials
3.3 Price
The sale price of the product reflects what consumers are willing to pay for it.
Marketing professionals need to consider costs related to research and development,
manufacturing, marketing, and distribution—otherwise known as cost-based
52
pricing. Pricing based primarily on consumers' perceived quality or value is known
as value-based pricing.
Price of Products at Sumeet Industries

i. Polyester Yarn (FDY): Rs. 78/- Kg. (Domestic Sales)
Rs. 76/- Kg, Export sales (CIF)
ii. Polyester Yarn (POY): Rs. 67/- Kg. (Domestic Sales)

3.4 Place
Figure 28 Place
CHANNEL OF DISTRIBUTION:
One of the important features of contemporary market is centralized production and
decentralized market; Customers are widely dispersed throughout the world. In order
to satisfy them, manufacturers must distribute the products conveniently.
The ultimate goal of marketing, customer satisfactions, can be achieved only when the
most desired products are distributed conveniently at reasonable price in time.
Moreover, the producers specialized on production may not have time and expertise
to distribute products to cater needs of final users.
53
Most producers do not sell their goods directly to the final users; between them stands
a set of intermediaries performing a variety of functions. These intermediaries
constitute a marketing channel (also called a trade channel or distribution channel).
They can be named as wholesalers, retailers, agents, merchants, etc. They are often
called as middlemen or marketing channel.
Levels of Distribution channel OR Types of Distribution channels:

Normally goods and services pass through several hands before they come to the hands
of the consumer for use. Marketing channel used for one product may not be suitable
for the second product. So, company generally uses different marketing channels for
different products.
Marketing channels are generally classified in two types:

• Direct Channel
1. Zero Level Channel
• Indirect Channel
1. One Level channel
2. Two Level Channel
3. Three Level Channel
54
Figure 29 Distribution Levels
1. Direct Channel OR Zero Level channel:

Direct channels also known as Zero level channel. In this channel, producers sell their
goods and services directly to the consumers. There is no middleman present between
the producers and consumers. The producers may sell directly to consumers through
door-to-door salesmen and through their own retail stores.
2. Indirect Channel:
a) One level channel:
One level channel contains one intermediary between manufactures and consumer.
Under this channel, the producers sell to one or more retailers and then these retailers
in turn sell to the ultimate consumers. This channel is mainly used under the following
two conditions;
• When the goods cater to a local market, for example, breads, biscuits, patties,
etc.
• When the retailers are big and buy in bulk but sell in smaller units, directly to
the consumers. For ex: Departmental stores such as Big Bazaar, Reliance fresh.
55
b) Two level channels:
Two level channel contains two intermediaries between producer and customer.
Producers handover the goods to wholesalers for large storage and then wholesalers
sell the goods to retailers and finally retailers sells these goods to the customers. This
is the traditional way to sell the goods and many producers follow this type of
marketing channel.
c) Three Level Channel:
In this type of channel, goods pass from the producer to agents to wholesalers to
retailers and then to consumers. Here the company agent’s role is to contact and call
the wholesalers to stock (store) the company’s goods.
3.4.1 Warehousing
Figure 30 Warehousing
Warehousing at Sumeet Industries

Warehousing is done beside the Sumeet industries production plant. So that it reduce
their cost of transportation to Warehouse and the directly deliver the finished product
from their warehouse by trucks.
3.4.2 Transportation
We have the locational advantage as our major customers of Polyester POY are within
5 K.M. radius. This advantage has reduced our packing cost substantially by supplying
POY on pallets. Major customers of FDY are in Pipodara, Sachin, Surat area close to
our factory.
56
3.5 Promotion
Definition
Promotion means a set of efforts made by the company for stimulating the demand for
its product or products without making any change in product mix, price and channel
of distribution.
Elements of Promotion Mix
• Advertising
• Sales Promotion
• Publicity
• Personal Selling
• Direct Marketing
Promotion Mix is defined as set of elements or tools like advertisement, sales

promotion, publicity, personal selling and direct marketing used by a marketer for
promoting sales by stimulating demand through persuasive communication.
1. Advertising:
Advertising is a printed, written, oral and illustrated art of selling.
Advertising can be defined as any paid form of presentation and promotion of ideas,
goods and services by an identified sponsor.
57
2. Sales Promotion
Sales Promotion consist of collection of incentive tools, mostly short term, designed
to stimulate quicker or greater purchase of particular product or service by consumers
or the trade.
3. Personal Selling
Personal selling is art of persuading the people to purchase goods which will give off
lasting satisfaction by using methods which consume the least time and effort.
Personal selling, popularly known as salesmanship, is considered as one of the options

for distribution and also a tool for market promotion. “Personal selling involves face-
to-face interaction with one or more prospective buyers for the purpose of making
presentations, answering questions, and procuring orders.” Company can distribute the
products either by middlemen or salesmen.
Sumeet Industries is selling the products through agents also by offering commission
on sales this help them to cut the cost of marketing and only to spent in the form of
commission when the actual sales happen.
4. Publicity
Publicity is also a way of mass communication. It is not paid form of mass
communication that involves getting favourable response of buyers by placing
commercially significant news in mass media. It is the traditional form of public
relations. Publicity is not paid for by the organization. Publicity comes from reporters,
columnists, and journalists people.
5. Direct Marketing
Direct marketing is the use of consumer direct channels to reach and deliver goods and
services to customers without using marketing middleman. Direct marketing includes
direct mail, catalog marketing, tele-calling, websites and mobile devices.
In Sumeet industries they have made their website for online presence with displaying
their Product and their plant capacity and many more details related to their
management.
58
3.5.1 MARKET STUDY:
A market study has been conducted by marketing department of the company. The
salient features study are briefly summarized below: -
METHODOLOGY
The study was carried out with the help of
➢ Comprehensive desk research, with a view to identify manufacturers and end-
users for the survey product.
➢ suitably designed field discussions with existing and prospective customers
The first study of “Manufacturers” provided useful information on the quantities of
product manufactured, deniers produced and sold, growth in production, future
production plans etc. It also provided the industry-wise consumption pattern
4. The end-user study provided an overall feel of the market. Besides, it helped in
obtaining various details such as quantities of the product used and the quantities
required in view of growth in demand, deniers used, reasons of using them, prices
paid, their opinions on the quality of products used, etc.
3.5.2 Demand – Supply Scenario World Wide
According to PCI, global demand for Polyester stands ~52 Mn Tonnes in 2017 and is
expected to grow to ~65 Mn Tonnes by 2025. Currently, Polyester demand in India
currently stands at 4 Mn Tonnes and is expected to grow to 6.7 Mn. Tonnes by 2025.
➢ The major Indian POY/FDY producer are as under:
Sr Name Market Sales
No Cap.
(Rs. cr.) Turnover
1 Page Industries 46,150.05 3,886.46
2 Trident 19,415.59 6,919.18
3 KPR Mill 17,370.99 4,073.67
4 Alok Industries 10,724.92 7,150.91
5 Welspun India 6,876.89 6,703.47
6 Garware Technic 6,233.80 1,176.05
7 Raymond 5,857.82 4,260.66
8 Lux Industries 5,230.22 2,273.00
9 Swan Energy 4,840.24 408.72
10 Jindal Worldwide 4,609.96 2,584.05
11 Bombay Dyeing 1,934.20 2,000.92
12 Bombay Rayon 157.16 83.08
13 Reliance Chemo 156.76 361.77
14 Sumeet Industries 72.03 893.5
Table 6 Indian POY/FDY Producer
59
4 FINANCIAL DEPARTMENT
Figure 31 Finance
4.1 INTRODUCTION
Finance department
Finance department is the unit of a business responsible for obtaining and handling any
money on behalf of the organization .the department controls the income and
expenditure in addition to ensuring effective business running with minimum
disruptions.
DEFINATION
Meaning of Financial Management
Financial Management means planning, organizing, directing and controlling the
financial activities such as procurement and utilization of funds of the enterprise. It
means applying general management principles to financial resources of the enterprise.
60
4.2 STRUCTURE
CHAIRMAN
MANAGING
DIRECTOR
FINANCE
DEPARTMENT
FINANCE
ACCONTANT
MANAGER
Figure 32 Finance Department Structure
4.3 FINANCIAL STRUCTURE
EQUITY
SHARE
(131.64 Cr)
FINANCIAL LONG TERM

DEBENTURE LOAN
(NOT ISSUE) STRCTURE (46.46 Cr)
PREFERENCE
SHARE (NOT
ISSUE)
Figure 33 Financial Structure of Company
61
4.4 CAPITAL COST ESTIMATES
1) LAND & SITE DEVELOPMENT:
A plot of industrial land is already available this plot will be used for the plant.
Cost of laying 6 m wide roads of about 500 r.m within the plot at the rate of Rs.
2100 per running metre works out to Rs. 1.150 million. The cost of storm water
drains, compound wall, gates and fencing works out to Rs. 850 Million. The total
cost for SITE DEVELOPMENT works out to be Rs. 2.00 million.
2) BUILDINGS & RELATED CIVIL WORKS:
The total building and related civil works cost detail as per SCHEDULE -C is
estimated Rs. 70.00 million and includes the following buildings/civil works of
about 9000 Sq. Mt. We also estimate cost of 20.00 million for wall panels and
steel structure on roof. As such total cost of civil work estimated at Rs. 90.00
Lacs.
a) Process plant building comprising the process plant rooms, control room,
MCC, laboratory and administrative office, maintenance room, utilities,
inverter room, mechanical stores, raw-material and finished goods storage
areas.
b) DG shed
c) Pump House for fire water and raw water pumps
d) Water Reservoir
e) Storage Tank, effluent collection tank, gate cabin and internal fencing.
The cost of building and civil work is based on company’s past experience/data and
in house estimates.
3) PLANT & MACHINERY:

The list of imported ISBL equipment and their estimated cost is presented in
Schedule “C”. The CIF cost of imported equipment has been lesser than supplier’s
Performa invoice on account of verbal assurances from the suppliers for reduction.
However, the contract for main machinery has already been signed with the
supplier. Total estimated CIF value is Rs. 846.53 million. Apart from this the Import
Duty, other expenses will be about Rs.51.47 million.
62
The list of indigenous ISBL process equipment together with their brief
specifications and their estimated cost is presented in Schedule “D”. The estimated
cost of indigenous process equipment works out to Rs. 224.06 million.
The total estimated cost of installed process equipment (imported and indigenous)
works out to Rs. 1127.00 million. Some of the basic assumptions and explanations
for arriving at this figure are given below:
a) The CIF costs for all imported equipment are furnished by SIL as A lumpsum
cost. Customs duty has been taken 4% of CIF cost (under EPCG Scheme), Cost of
port clearance, inland transportation is taken as 2% of CIF cost .
b) Estimates of cost for indigenous process equipment are supported by quotations

obtained from various indigenous equipment suppliers against budgetary enquiry
specifications floated by SIL. The bids of various suppliers were reviewed and the
most suitably priced bids were selected for estimation of cost.
c) Estimates of cost for indigenous items are on the basis of ex our-works costs.
Packing & forwarding and transportation charges are included in Ex our-works cost.
d) The cost of erection and electrification has been included in Indigenous Plant &
Machinery.
4) PRELIMINARY EXPENSES & PRE – OPERATIVE EXPENSES:

Various administrative legal and overhead expenses during the construction period
are covered by the provision of Rs. 20.00 million This would provide for cost such
as traveling expenses, insurance, establishment, rent taxes, office expenses
including telephone, telex printing and stationery ,interest during construction
period and capital issue expenses etc.
5) CONTINGENCIES:
The costs already incurred so for are considered as firm. All other costs are taken
as non-firm and a contingency escalation provision is made towards physical
contingencies and price escalation over cost of site development, civil works, plant
and machinery and miscellaneous fixed assets. The foreign exchange component of
the cost of plant and machinery. The provision under this head works out to Rs.
63.00 million.
63
6) MARGIN MONEY FOR WORKING CAPITAL
As this project is a forward integration of existing C.P. Plant as such we require
working capital for value additions only. Accordingly we estimate the margin
money of Rs. 23.00 million, shown in the capital cost estimates, relates to the first
year of operation. Annexure – 3
7) COST OF PRODUCTION AND PROFITABILTY ANALYSIS

In order to carry out an analysis to assess the viability of this project, manufacturing
cost estimates have been developed in conjunction with estimated sales revenue to
determine the gross profitability of the proposed project. Performa income
statements presenting working results for seven years of operation have also been
prepared and this is followed up by an analysis of profitability. The financial
implications of the project are discussed thereafter.
The various assumptions and basis for working out the cost of production are as
below:
a) The proposed project would have A rated capacity of 35000 TPA of Polyester
FDY and 12000 TPA of Polyester POY working on a 3 shift basis and 8400 hours
per year.
b) It is assumed that the plant would operate at 80% for of its rated Capacity during
the first and 85 % for second year of operation and 90 % during third year and 95%
in fourth year.
c) No provision is made for any increase in prices of raw materials and Utilities
and finished product. The prices are as prevailing at the time of preparations of
Project Report.
d) Production of a particular year is sold during that year after adjusting opening
and closing stock of Finished Goods & WIP.
8) CHEMICAL:RAWMATERIALS
The basic raw materials for this project is Polymer Melt produced from existing
C.P. Plant. The prices considered are Rs.52000 per MT. These prices are at site
costs exclusive of cenvat and vat as the credit of the same is available for set off.
These have been used to work out raw material cost towards FDY and POY Yarn
64
sold in domestic market. For FDY and POY Yarn export sales the customs
duty/excise duties have been considered to be drawn back.
Annexure – 15&16 of Detailed Financial Projections gives the estimated annual

cost of the raw materials and chemicals required for this project at 90% capacity
utilization. The total annual cost works out to Rs. 2220 million.
9) PACKING MATERIAL:
Annexure-19 provides the estimated annual cost of packing material at Rs. 89.59
million based 90% capacity utilization.
10) POWER:
The total Power expenses have been calculated based on the per unit cost of power
plant. The annual expenses at 90% works out to Rs. 179.18 (Annexure -20). The
per Kg. production Polyester FDY will require 0.90 unit of power and Polyester
POY will require 0.40 units the cost of which is about Rs.4/- per unit.
11) WATER:
The total water requirement for this expansion project will be met from existing
Bore Wells bearing no additional cost.
12) LABOUR:
The annual wages and salaries inclusive of benefits payable to factory staff are
estimated at Rs. 23.32 million per annum in the third year of operation . This cost
has been slightly increased to take care of annual increments, etc. in subsequent
years.
13) REPAIRS AND MAINTENANCE:

It is assumed that expenditure for repairs and maintenance would be Rs.3.00 million
for third year of operations. To account for the increasing repairs and maintenance
cost as the plant grows old the same has been increased reasonably.
14) STORES SPARES & CONSUMABLES:

The expenditure for stores, spares & consumables has been taken at Rs 7.00 million
for third year of operations.
65
15) OTHER MANUFACTURING EXPENSES:
To cover rents insurance, rates taxes on factory assets and miscellaneous factory
expenses Rs. 3.00 million have been provided in the third year of operation.
16) ADMINISTRATIVE EXPENSES:
These include the salaries and benefits payable to administrative staff and expenses
on telephone, telex, printing, stationery, upkeep of office equipment etc. to the tune
of Rs. 4.00 million in the third year. This cost has been increased reasonably over
the years of operation.
17) SELLING EXPENSES:

These include the cost of transportation and the sales commission. The total
expenses have been estimated at Rs. 43.77 million during the third year of
operation (Annexure 21)
18) TOTAL COST OF PRODUCTION:
Based on the above details the total cost of production for the third year of
operation works out to Rs. 2639.36 million at 90% capacity utilization.
19) PROFITABILITY ANALYSIS
SALES REALISATION:
The annual sales realization at 90% capacity utilization works out at Rs. 3182.72
million considering the following selling price of products (Net of duties and taxes)
(a) Polyester Yarn (FDY ) : Rs. 78/- Kg. (Domestic Sales)

(b) Polyester Yarn (POY : Rs. 67/- Kg. (Domestic Sales

20) FINANCIAL EXPENSES:

The calculation of interest on FCTL & RTL has been presented in Annexures 25. The
FCTL is proposed to be paid in 8.5 years apart from one year moratorium. & RTL is
proposed to be paid in 6 years apart from one year moratorium. The interest rate on the
foreign exchange term loan is taken at 5% and rupee term loan is taken at 11% per
annum.
Apart from this HERMES PREMIUM repayment is taken as financial expenses

and spread as per repayment of the same.
66
4.5 FINANCIAL INDICES:
The Break Even Point, IRR, Payback Period, and Debt-Service Cover Ratio have been
evaluated for the project.
a. Break-Even Point:
The break-even point for of the installed capacity is 39.73% and Cash Break Even Point
of installed capacity is 31.96%.
b. Internal Rate of Return

The internal rate of return after tax works out to 41.82% on investment.
c. Payback Period
The payback period for the investment works out to 35 Months.
d. Debt Service Coverage Ratio

The average Debt 74.Service Coverage Ratio over a period of six years is 2.74 with
combined DSCR of the company is 2.
4.6 COMPARATIVELY LOW OPERATING COST:

The Expansion Project of SIL has special and distinct advantages as compared to
similar projects either run or planned by other companies. These distinct and special
advantages are:-
No extra expenditure on Higher Level Production, Utilities and Maintenance

executives. These positions are already there with the existing plant of SIL. These
executives will also look after the operations of Expansion Project also thereby
resulting into great savings on this account.
SIL has already producing own power and planned to expand its capacity which will
take care of the requirement of Expansion Project also at the same cheaper rate of power
of about Rs.4/- per unit where the grid power unit rate is Rs.5.60/-.
SIL has all the facilities of Packing, Handling which will be available to Expansion
Project also to result in substantial savings.
SIL’s existing marketing set up with wide Dealer network will result in savings on this
account also.
67
Cumulatively all above factors will result in comparatively low cost to provide an edge
to sil over its competitors.
4.7 COMPANY PERFORMANCE AT LAST 2 YEARS
BALANCE SHEET LAST 2 YEARS
in Rs. Cr. Comparison

Consolidated Balance Sheet
EQUITIES AND LIABILITIES Mar 22 Mar 21 Absolute %change
SHAREHOLDER'S FUNDS 12 Months 12 Months Change
Equity Share Capital 103.64 103.64 0 0
Preference Share Capital 0 30 30 100
Total Share Capital 103.64 133.64 30 22.4484
Reserves and Surplus -156.46 -158.01 -1.55 0.98095
Total Reserves and Surplus -156.46 -158.01 -1.55 0.98095
Total Shareholders Funds -52.82 -24.37 28.45 -116.74
NON-CURRENT LIABILITIES
Long Term Borrowings 46.46 1.94 -44.52 -2294.8
Deferred Tax Liabilities [Net] 37.67 43.37 5.7 13.1427
Other Long Term Liabilities 2.74 2.29 -0.45 -19.651
Total Non-Current Liabilities 86.86 47.61 -39.25 -82.441
CURRENT LIABILITIES
Short Term Borrowings 504.84 429.69 -75.15 -17.489
Trade Payables 49.3 35.74 -13.56 -37.941
Other Current Liabilities 8.43 136.33 127.9 93.8165
Short Term Provisions 0.12 0.12 0 0
Total Current Liabilities 562.69 601.89 39.2 6.51282
Total Capital And Liabilities 596.73 625.12 28.39 4.54153
ASSETS
NON-CURRENT ASSETS
Tangible Assets 211.52 241.79 30.27 12.5191
Capital Work-In-Progress 0 0
68
Fixed Assets 211.52 241.79 30.27 12.5191
Non-Current Investments 0.12 0.09 -0.03 -33.333
Long Term Loans And Advances 14.98 16.92 1.94 11.4657
Other Non-Current Assets 8.92 28.61 19.69 68.8221
Total Non-Current Assets 235.55 287.41 51.86 18.0439
CURRENT ASSETS
Inventories 155.61 163.38 7.77 4.75578
Trade Receivables 116.53 84.89 -31.64 -37.272
Cash And Cash Equivalents 0.31 0.83 0.52 62.6506
OtherCurrentAssets 88.73 88.61 -0.12 -0.1354
Total Current Assets 361.18 337.71 -23.47 -6.9497
Total Assets 596.73 625.12 28.39 4.54153
Table 7 Balance Sheet
4.7.1 PROFIT AND LOSS ACCOUNT

Standalone Profit & in Rs. Cr.
Loss account
Mar '22 Mar '21

12 months 12 months
Income
Sales Turnover 893.5 573.87 319.63 55.69728
Excise Duty 0 0 0 0
Net Sales 893.5 573.87 319.63 55.69728

Other Income 20.96 2.9 18.06 622.7586
Stock Adjustments -6.19 -4.35 -1.84 42.29885
Total Income 908.27 572.42 335.85 58.67195
Expenditure 0
Raw Materials 655.5 511.33 144.17 28.1951
Power & Fuel Cost 0 0 0 0
69
Employee Cost 24.42 18.78 5.64 30.03195
Other Manufacturing 0 0 0 0
Expenses
Selling and Admin 0 0.01 -0.01 -100

Expenses
Miscellaneous 173.09 15.39 157.7 1024.691

Expenses
Total Expenses 853.01 545.51 307.5 56.36927
Mar '22 Mar '21 0

0
12 mths 12 mths 0
0
Operating Profit 34.3 24.01 10.29 42.85714
PBDIT 55.26 26.91 28.35 105.3512

Interest 26.55 3.17 23.38 737.5394
PBDT 28.71 23.74 4.97 20.93513
Depreciation 31.41 35.8 -4.39 -12.2626
Profit Before Tax -2.7 -12.06 9.36 -77.6119
PBT (Post Extra-ord -2.7 -12.06 9.36 -77.6119

Items)
Tax -5.71 -4.98 -0.73 14.65863
Reported Net Profit 3.01 -7.08 10.09 -142.514
Total Value Addition 197.52 34.18 163.34 477.8818
Per share data (annualised) 0

Shares in issue (lakhs) 1,036.42 1,036.42 0 0
Earning Per Share 0.29 -0.68 0.97 -142.647

(Rs)
70
Book Value (Rs) 2.48 2.08 0.4 19.23077
Table 8 Profit And Loss
4.8 FINANCIAL RATIOS

1. Current ratio = Current Assets/Current liabilities
Particulars 2020-21 2021-22

Current assets 337.71 361.18
Current Liabilities 601.89 562.69
Current Ratio 0.56 0.64
Interpretation
Industrial standard ratio is 2:1 but our Company’s ratio in 2021 was 0.56 and now it
increase to 0.64.
2. Quick Ratio = Current Assets – Stock/ Current liabilities – Bank Overdraft

Current assets - Stock 174.33 205.57
Current Liabilities -
Bank Overdraft 601.89 562.69
Quick Ratio 0.29 0.37
Interpretation
Industrial standard ratio is 1:1 but our Company’s ratio in 2021 was 0.29 and now it
improve to 0.37 but is still very poor according to standard ratio.
3. Proprietary Ratio = Share Holders Fund/ Total Assets

Share holders Fund 133.64 130.64
Total Assets 625.12 596.73
Proprietary Ratio 0.21 0.22
Interpretation
Industrial standard ratio is 60 to 70% but our Company’s ratio in 2021 was 0.21 and
now it improve to 0.22.
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4. Operating Profit Ratio = Operating Profit / Sales*100

Operating Profit 24.01 34.3
Sales 573.87 893.5
Operating Profit
Ratio(%) 4.18 3.84
Interpretation
Industrial standard ratio is 15 to 20% but our Company’s ratio in 2021 was 4.18% and
now it decrease to 3.84%
5. Net Profit Ratio = Net Profit / Sales*100

Net Profit -7.08 3.01
Sales 573.87 893.5
Net Profit Ratio (%) 1.23 0.34
Interpretation
Industrial standard ratio is 10 to 20% but our Company’s ratio in 2021 was 1.23% and
now it decrease to 0.34%
6. Gross Profit Ratio = Sales – Cost Of Goods Sold/Net Sales*100

Sales -Cost Of Good
Sold 23.74 28.71
Net Sales 573.87 893.5
Gross Profit Ratio (%) 4.14 3.21
Interpretation
Industrial standard ratio is 50% to 70% but our Company’s ratio in 2021 was 4.14%
and now it decrease to 3.21%.
Overall company’s financial condition is not so good.
72
5 HUMAN RESOURCE
DEPARTMENT
HUMAN RESOURCES PLANNING: HRP can be understood as the function

of HRM that deals with ensuring that right number and type of employee are available
in the organization so that organization can achieve the present and future goals.
SUMEET believe that “PEOPLE ARE OUR GREATEST ASSET. WE BELIEVE IN

EQUALITY, AND TREAT EMPLOYEES WITH RESPECT AND DIGNITY.”
DEFINATION: "the process by which a management determines how an organization

should move from its current manpower position to its desired manpower position.
Through planning, a management strives to have the right number and the right kinds
of people at the right places, at the right time to do things, which results in both the
organization and individual receiving the maximum long-range benefits.”
73
ORGANIZATION SPECIFICATION: The total requirement of the various
categories of technical and non technical personnel administrative and other personnel
including highly skilled, skilled and unskilled workers for normal running of the
expansion
project is estimated at 100. The requirement of man power and the proposed
salary structures are presented in Annexure XI of D.P.R. The reason for such a
low requirement of personnel is due to availability of highly skilled and
experienced technocrats, engineers, chemists and maintenance staff at SIL’s
existing plant. This will tremendously save on employees’ cost.
5.1 Recruitment:
Recruitment is the process of identifying and stimulating (motivating) potential
candidate to apply for the given post.
Recruitment involves two main aspects:
• Identifying the potential candidate: This includes identifying the appropriate
sources of recruitment that would be sufficient to get the type of employee
organization is seeking.
• Motivating them to apply: This includes drafting of message in such a way
that potential candidate would be motivated to apply for the post. Here the
selection of media through which message will be delivered is also very
important.
Recruitment can be classified in internal and external sources:
• Internal sources: An internal source of recruitment means identifying the
potential candidate from within the organization. In other words generating list
of potential candidate by communicating
74
There are four types of internal sources of recruitment:
i. Present Employees
ii. Past Employees
iii. Former Application
iv. Employee Referrals
External sources: When the firm is searching potential candidate from outside the
organization it is called external source of recruitment. In other words the list of
potential candidate is prepared by communication to the sources outside the
organization.
There are several external source of recruit
a. Traditional Sources:
i. Advertisement
ii. Employment exchange
iii. Campus Recruitment
iv. Casual Applicants
v. Similar Organization
vi. Trade Union
vii. Professional or Trade Association
b. Modern Sources of Recruitment
i. Walk-ins/ Talk-ins/ Write-ins
ii. Consult-ins
iii. Head hunting
iv. Body Shaping
v. Business Alliance
vi. E-Recruitment
75
5.2 Selection:
Selection is the process of discriminating among candidate so as to identify the most
appropriate candidate for the given post. Selection process is depend upon the nature of
jobs and organization. There are some steps involved in a standard selection process:
1. Preliminary Interview
2. Application Blank
3. Selection Tests
4. Selection Interview
5. Reference Checks
6. Physical Examination
7. Final selection
5.3 Induction:
It is the process of making new incumbent (new recruit/transferred/ promoted
employee) familiarized with the job and the organization.
Organization specification: About 100 persons of varying skills will be required to

operate and maintain the proposed plant. Skilled labour would be recruited from
persons well-versed in similar industries. Unskilled labour will be obtained from
neighbouring areas.
5.4 Training:
Training is the process of being conditioned or taught to do something, or is the process
of learning and being conditioned
76
5.5 Organization specification: Recruitment, Selection,
Training of personal:
A. The management of the project relevant experience in their respective fields
dealing with finance administration production, marketing and other aspects
related to business.
B. The positions would be filled in by recruitment of personnel with adequate
experience in the operation of similar plants involving allied processes.
C. Essential technical and non-technical personnel required during the construction
phase will be appointed progressively to conform to the proposed schedule for
the implementation of the project. The necessary infrastructure and expertise in
terms of both managerial and technical would be built to implement the
project effectively.
D. A part of the skilled labour would be recruited from persons with experience in
similar industries. Unskilled labour would be recruited from amongst the people
living near the proposed site.
E. Use of contract labour mainly for unskilled work, has been considered.
Considered. Canteen, bus transport for workers, security guards for factory, etc.
handling/loading of product into trucks are envisaged to be given as contract to
suitable outside agencies. Plant personnel will also be trained in firefighting
operations to avail their services during emergencies. Considered to yield
efficient and speedy operation in that area.
5.6 Employee development programme:

Employee training and development is a program that helps to learn a particular skill as
well as knowledge to improve employee productivity & performance in their current
organization or job role. It developed future performance & helps focused on more
employee growth
77
Figure 34 Employee development
5.7 Compensation structure:

A compensation structure is the strategy you use to determine how each employee in
your company is paid. It considers information like the length of employment, industry
minimums and maximums, and merit.
Internal mobility: Internal mobility is the movement of employees within an

organization. An internal mobility strategy takes this a few steps further by
implementing a process or framework for moving existing employees between roles,
vertically and laterally.
Performance Appraisal Process: A performance appraisal is a regular review of

an employee's job performance and contribution to a company. Companies use
performance appraisals to determine which employees have contributed the most to the
company's growth, review progress, and reward high-achieving workers.
78
In Sumeet Industries objective of appraisal systems is:
1. To make the employees aware of their major areas of responsibilities.
2. To identify each area of responsibility and link the relevant contribution of the
employee.
3. To share with the employee their strengths, areas for improvement and their
potential.
4. To assist the employee to develop his/her personal and professional growth
through self-analysis and counselling.
5. The appraisal is an important basis for evaluating an employee for their rewards
and also to help them know their career path.
6. April to March will be considered as the period taken for the purpose of
increment or promotion.
Career development programmers: Career development is the process of

exploration and action that shapes a person's career path. It includes assessments of a
person's skills, abilities, interests, and personality in order to find a suitable career
match.
Leave management: Leave is simply taking an off from work day after informing
the management formally and sometimes even informally.
• Leaves are the days that every working professional is entitled to and paid for,
apart from the holidays. Paid leaves are a part of benefits offered by
companies apart from medical claim.
79
5.8 Employment welfare & Corporate Social Responsibility
(CSR):
• Corporate Social Responsibility: Corporate social responsibility is a self

regulating business model that helps a company be social accountable to itself,
its stakeholders, and the public.
• Organization Specification: The Board of Directors has adopted a CSR
policy to enable the Company to carry-out CSR activities in all the activities
that are mentioned in the Schedule VII to the Companies Act, 2013. The CSR
initiatives of the Company are mainly focused in hunger, poverty, education,
healthcare, environment, relief, disaster management, animal welfare etc. and
Covid-19 related activities as permitted by the law. The projects undertaken
during the Financial Year 2020-21 were within the broad framework of
Schedule VII to the Companies Act, 2013.
• Composition of CSR Committee:
Sr. Name of Director Designation / Number of Number of

No Nature of Meetings of CSR Meetings of
Directorship Committee held CSR
during the year Committee
attended
during the
year
80
1. Mr. Sumeet Chairman 2 2
Kumar Somani (Executive
Director)
2. Mr. Manojkumar Member (Non- 2 2
G. Jain Executive
Director)
3. Mr. Vikaskumar Member (Non- 2 1
K. Chandaliya Executive
Director)
Table 9 Composition of CSR Committee
5.9 CSR Policy:
• PREAMBLE/CONTEXT:
Sumeet Industries Limited (‘SIL’ or ‘the Company’) has been an early adopter
of Corporate Social Responsibility (‘CSR’) initiatives. Along with sustained
economic performance, environmental and social stewardship is also a key
factor for holistic business growth. The Company’s focus has always been to
contribute to the sustainable development of the society and environment, and
to make our planet a better place for future generations.
The policy, encompasses the company’s philosophy for giving back to society
as a corporate citizen and lays down the guidelines and mechanism for
undertaking socially useful programmes for the welfare & sustainable
development of the community at large and shall apply to all CSR initiatives
81
and activities taken up not only at the various work-centers and locations of the
company but also in any other parts of the country, for the benefit of the society.
• OBJECTIVES:
The Corporate Social Responsibility Committee (CSR) Policy sets out the
Company’s commitment and approach towards Corporate Social Responsibility
for improving the quality of life of the communities it serves. The Company’s
CSR policy is multifaceted to cover projects and programmes in the field of
education, healthcare, rural improvement initiatives. The Company’s CSR
projects and programs are carried out within CSR policy.
• DEFINITIONS:
As specified in the Companies Act, 2013 and the Companies (Corporate Social
Responsibility Policy) Rules, 2014 as amended from time to time.
• FOCUS AREAS:
In accordance with the requirements under Schedule VII of the Companies Act,
2013, the company will focus on:
i. EDUCATION: SIL will undertake initiatives for imparting training to
develop language skills to enhance individual employability of youth in
marginalized and deprived sections of the society. Supporting projects
and programs for education and development of children from weaker
sections of the society directly or through Charitable Trusts, as
considered necessary.
ii. HEALTH: Providing financial assistance to institutions, hospitals,
charitable trusts and NGOs pursuing projects and programs benefiting
paediatrics and cancer patients, people suffering from AIDS, the Blind,
Deaf and Dumb and other critical disease. Organising blood donation
camps, various health check-up camps.
iii. ENVIRONMENTAL SUSTAINABILITY: Ensuring environmental
sustainability, ecological balance, protection of flora and fauna, animal
welfare, agro-forestry, conservation of natural resources and
maintaining the quality of soil, air and water
82
iv. RURAL DEVELOPMENT PROJECTS: Strengthening rural areas by
improving accessibility, drinking water, sanitation, and livelihoods,
thereby creating sustainable villages.
v. DISASTER MANAGEMENT, RELIEF, REHABILITATION: Provide
relief and assistance to victims of disasters and calamities, extending a
helping hand to aid communities that suffered natural disasters and
calamities, contributions to recognized disaster management and relief
Funds as and when required.
vi. VILLAGE IMPROVEMENT INITIATIVE: Under this program, the
company is to take on following social activities to improve nearby
villages
a) Drinking water facility
b) Distribution of Books & Dresses to students and Computers to
Schools situated in nearby villages of our Plant.
c) Free medical check up of employees and nearby villagers.
d) Blood Donation Camps
e) Education to Weaker Section of Societies.
f) Financial Help to Gaau Seva Kendra and Chikitsalayaa
In addition to the identified areas of focus mentioned above, the Company may also
undertake other activities defined in Schedule VII of the Companies Act, 2013
• UNDERTAKING CSR ACTIVITIES: SIL will undertake its CSR activities,
approved by the Board and CSR Committee, directly or through recognised Trust
or such other Executing Agency / Partners as approved by the Board and the
Committee.
• LOCATION OF CSR EFFORTS: The Board and CSR committee will decide
on the locations for CSR activities.
• GOVERNANCE STRUCTURE: The Company has a well-defined and robust
governance structure to oversee the implementation of the CSR Policy, in
compliance with the requirements of Section 135 of the Companies Act, 2013.
The Company directly or through a registered trust/other executing agency can
undertake CSR activities as per the provisions of the Companies Act, 2013.
Accordingly, Company/ Board members will assist the CSR Committee in
identifying the areas of CSR activities, programs and execution of initiatives as
83
per defined guidelines and also assist the Board and the CSR Committee in
reporting the progress of deployed initiatives and in making appropriate
disclosures (internal/external) on a periodic /monthly/yearly basis.
• RESPONSIBILITIES OF THE CSR COMMITTEE: The Board level
Corporate Social Responsibility Committee (CSR Committee) was formed as per
the applicable provision of the Companies Act,2013 and the Rules made thereof
the Board of Directors of the Company shall be responsible for monitoring the
CSR Policy from time to time. The CSR Committee shall review and recommend
to the Board, the projects or programs to be undertaken, the modalities of
execution and implementation schedule from time to time and also institute a
monitoring mechanism to track the progress of each project. The Committee
reports into the Company’s Board of Directors. The Board shall be the final
authority to approve the CSR Projects, its implementation and funding.
• FUNDING, SELECTION AND MONITORING PROCESS: The CSR
Committee will review various proposals and recommend for its approval and
implementation, to the Board.
➢ Selection of projects: The CSR Committee shall review and recommend
to the Board to decide the CSR Project(s) from the below mentioned
projects, during the Financial Year
Particulars Single Year Project Ongoing Project
Projects Providing Free Preventive Health Promoting health care by
Care, promoting health care including constructing Blood Banks,
preventive health care and sanitation. hospitals etc ,and Making
Providing free education to the available safe drinking water by
students from under privileged constructing pipelines etc.
backgrounds. Constructing School Building,
Ensuring environmental hostels, etc for the purpose of
sustainability, ecological balance, proving education on free of
animal welfare, Contribution to the cost/subsidize rate to the needy
Prime Minister’s National Relief Fund section of the society.
Assistance and Relief in Emergency Promoting gender equality,
Situations Fund (PM CARES Fund) or empowering women, setting up
any other fund set up by the Central homes and hostels for women
84
Government. Disaster management, and orphans; setting up old age
including relief. homes, day care centers Rural
Development projects
Slum Area Development
Disaster Management
Rehabilitation, reconstruction
activities
Executor of Company itself or Recognized Company itself or Recognized
Project /Registered Trust /Executing Agency /Registered Trust /Executing
Agency
➢ Agreement with Executing Agency/Recognized Trust: Once the CSR
programme/Project/Period is approved by the Board/CSR Committee,
they in turn will be required to enter into an agreement with the
executing Agency (ies)/Recognized Trust as per the Standard Model
Agreement.
• SCOPE AND LIMITATION: In the event of any conflict between the
provisions of this Policy and the Listing Regulations/Companies Act, 2013 or
any other statutory enactments, rules, the provisions of such Listing
Regulations/Companies Act, 2013 or statutory enactments, rules shall prevail
over this policy.
• Average net profit of the Company as per Section 135(5):
Year Net profit as per Section 198 of the
Companies Act, 2013 (Rs. in Crore)
2017-18 0.48
2018-19 (123.94)
2019-20 (53.07)
Average net profits of last three -
years
a) Two percent of average net profit of the company as per section 135(5): Rs. Nil
b) Surplus arising out of the CSR projects or programmes or activities of the
previous financial years. : Nil
c) Amount required to be set off for the financial year, if any: Nil
85
d) Total CSR obligation for the financial year 2020-21 (7a+7b-7c): Rs. Nil
➢ Details of CSR amount spent against other than ongoing projects for the
financial year:
Sr. Name of the Item Local Location of the Amount Mode of Mode of
No. Project from area Project spent for Implement Implementatio
the list (Yes / the ati on n - Through
of No) Project Direct Implementing
Activiti (Rs. in (Yes/No) Agency
es in Lakhs) Name CSR
Schedul Reg.
e VII to No
the Act
1 Gau Animal No Rajast Shikh 1.50 No - -
Chikistsal Welfare han ar Through
aya & Seva Bhartiya
Kendra Govans
Rakshan
Sanwardh
an Samiti
2 Medical Aid Heath Yes - - 0.21 No , - -
under Covid- care through
19 pandemic Seva
Foundat-
on
3 Promotion of Educati Yes - - 1.44 No - -
Education on to Through
Weaker Maheshwa
Section ri
s of Shikshan
Society Sansthan
4 Gau Seva Animal Yes - - 0.78 No - -
Kendra Welfare Through
Shree Gau
86
Seva
Samiti
Total 3.93
Table 10 CSR amount spent
➢ Amount spent in Administrative Overheads : Nil

➢ Amount spent on Impact Assessment, if applicable : Nil
➢ Total amount spent for the Financial Year (8b+8c+8d+8e) : Rs. 3.93 Lakhs
➢ Excess Amount for set off, if any : Nil
• Details of Unspent CSR amount for the preceding three financial years:
Sr. Precedin Amount Amount Amount transferred to any Amount

No g transferred to spent in fund specified under remaining to
Financial Unspent CSR the Schedule VII as per section be spent in
Year Account Reportin 135(6), if any succeeding
under section g Name Amoun Date of financial
135(6) (Rs. in Financial of the t (Rs. in Transfer years (Rs. in
Lakhs) Year Fund Lakhs ) Lakhs)
1 2017-18 - - - - - -
2 2018-19 29.12 - - - - -
3 2019-20 - 9.53 - - - -
• Details of CSR amount spent in the financial year for ongoing projects of
the preceding financial year(s):
Sr. Project Nam Financia Project Total Total Cumulativ Status of
No. ID e of l year in Durati Amoun Amount e amount the Project
the which on t spent in spent at -
Proj the allocate the the end of completed
ect project d for reporting reporting / On going
was the Financia Financial
commen project l year year (Rs.
ced (Rs. In (Rs. in in Lakhs)
Lakhs) Lakhs)
NIL
87
NIL
• In case of creation or acquisition of capital asset, furnish the details

relating to the asset so created or acquired through CSR spent in the
financial year (asset-wise details): Not Applicable
Sr. No. Particulars Amount
1 Two percentage of average net profit of the company as Nil

per section 135(5)
2 Total amount spent for the Financial Year Rs. 3.93 Lakhs
3 Excess amount spent for the financial year [(ii)-(i)] Rs. 3.93 Lakhs
4 Surplus arising out of the CSR projects or programmes or Nil

activities of the previous financial years, if any
5 Amount available for set off in succeeding financial years Rs. 3.93 Lakhs
[(iii)-(iv)]
a) Date of creation or acquisition of the capital asset(s) :Not Applicable

b) Details of the entity or public authority or beneficiary
under whose name such capital asset is registered, their
address etc . :Not Applicable
c) Amount of CSR spent for creation or acquisition of
Working Hours
The company is having following duty timings :
General Shift 9.30 a.m. to 6.00 p.m.
1st shift 7.00 a.m. to 2.00 p.m.
2nd shift 2.00 p.m. to 9.00 p.m.
3rd shift 9.00 p.m. to 7.00 a.m.
All the employees are however required to be present in the company during the timings
mentioned above as per their shift schedule.
All employees will be granted grace period of 10 minutes and they will be marked
“Late” after the same. 30 minutes grace period is also given to the employees thrice in
a month. Thereafter, if employee will be late marks ½ day absence.
88
6 FINDINGS AND SUGGESTION
Production
• Company reuse wastage raw material.

• Company should be provide safety kit to worker at location place.
Marketing
• Company is not focusing more on advertisement and not spending more on it.
• Company should do their marketing online on various other , and on.
Finance
• Company overall position is bad, because company’s liquidity is very high.

• At least company should pay the dividend.
Human Resources
• Company more focus on CSR activity indirectly.

• Company should do direct CSR activity for more better performance.
89
7 Bibliography
➢ https://textilestudycenter.com/introduction-to-textiles/
➢ https://www.britannica.com/topic/textile
➢ https://en.wikipedia.org/wiki/Textile_industry_in_India
➢ https://www.iastoppers.com/articles/mains-article-indian-textile-industry-
challenges-and-suggestions
➢ https://swothub.com/textile-industry-swot-
analysis/#Opportunities_for_Textile_Industry_in_SWOT_Analysis
➢ https://www.globenewswire.com/en/news-
release/2021/01/04/2152750/28124/en/Global-Textile-Yarn-Market-Industry-
Report-2020-2026.html
➢ https://okcredit.in/blog/markets-in-surat-you-should-visit/
➢ https://indiancompanies.in/top-10-best-textile-companies-in-india/
➢ http://www.sumeetindustries.com/
➢ https://www.moneycontrol.com/competition/sumeetindustries/comparison/SI4
5
90
Figure 1 Textile Sector................................................................................................... 1
Figure 2 Yarn Industry ................................................................................................... 2
Figure 3 Yarn Process .................................................................................................... 4
Figure 4 Single Yarn ...................................................................................................... 5
Figure 5 Needle Use in Yarn ......................................................................................... 6
Figure 6 Global Textile Yarn Market ............................................................................ 7
Figure 7 Yarn Market By Regions ................................................................................. 8
Figure 8 Yarn Production In India ................................................................................. 9
Figure 9 Yarn Storage .................................................................................................. 10
Figure 10 SWOT Analysis ........................................................................................... 14
Figure 11 Sumeet Industries Logo ............................................................................... 17
Figure 12 Production Image......................................................................................... 25
Figure 13 Sumeet Industry Plant.................................................................................. 26
Figure 14 PP Multi Filament Yarn............................................................................... 27
Figure 15 Polyester Filament Yarn .............................................................................. 29
Figure 16 PET Chips .................................................................................................... 30
Figure 17 Packaging at Sumeet Industry ..................................................................... 42
Figure 18 Warehouse At Sumeet Industry ................................................................... 42
Figure 19 Microscope .................................................................................................. 44
Figure 20 Bursting Strength Tester-Analogue ............................................................. 44
Figure 21 Marketing Management............................................................................... 45
Figure 22 4 P's.............................................................................................................. 46
Figure 23 PET Chips .................................................................................................... 47
Figure 24 Partially Oriented Yarn (POY) .................................................................... 48
Figure 25 Fully Draw Yarn (FDY) .............................................................................. 49
Figure 26 Polyester Texturised Yarn ........................................................................... 50
Figure 27 Bursting Strength Tester-Analogue ............................................................. 52
Figure 28 Place ............................................................................................................ 53
Figure 29 Distribution Levels ...................................................................................... 55
Figure 30 Warehousing ................................................................................................ 56
Figure 31 Finance ........................................................................................................ 60
Figure 32 Finance Department Structure .................................................................... 61
Figure 33 Financial Structure of Company .................................................................. 61
91
Figure 34 Employee development ............................................................................... 78
Table 1 Competitors of Textile Industry ...................................................................... 15

Table 2 Chart Of Competitors...................................................................................... 15
Table 3 Production Capacity ........................................................................................ 18
Table 4 Management Profile ........................................................................................ 19
Table 5 Plant Capacity ................................................................................................. 27
Table 6 Indian POY/FDY Producer ............................................................................. 59
Table 7 Balance Sheet .................................................................................................. 69
Table 8 Profit And Loss ............................................................................................... 71
Table 9 Composition of CSR Committee .................................................................... 81
Table 10 CSR amount spent ........................................................................................ 87
92

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A

SUMMER INTERNSHIP PROJECT

“SUMEET INDUSTRIES LIMITED”

PARTIAL FULFILMENT FOR

THE COMPLETION OF SECOND YEAR OF B.B.A

SR. NO NAME ROLL. NO

UDHNA CITIZEN COMMERCE COLLEGE &

S.P.B. COLLEGE OF BUSINESS ADMINISTRATION &

SMT. DIWALIBEN HARJIBHAI GONDALIA COLLEGE OF BCA & I.T.

(Faculty Guide) (Vice Principal) (Principal)

(Faculty Guide) (Vice Principal) (Principal)

(Faculty Guide) (Vice Principal) (Principal)

(Faculty Guide) (Vice Principal) (Principal)

Mr. Fenil Viradiya Date:

Mr. Jainesh Bothra Date:

Miss. Konika Bansal Date:

Miss. Siddhi Jain Date:

1.1 INDUSTRY PROFILE ................................................................................... 1

1.1.1 HISTORY ................................................................................................ 2

1.1.2 Global Prospective in Yarn Industries ..................................................... 6

1.1.3 Textile industry in India ........................................................................... 8

1.1.4 Challenges in the textile sector: ............................................................. 11

1.1.5 Textile Industry SWOT Analysis........................................................... 12

1.1.6 Conclusion ............................................................................................. 14

1.1.7 Competitors of Textile Industry ............................................................. 15

1.1.8 GDP Contribution of Yarn Industry in India ......................................... 16

1.2 COMPANY PROFILE .................................................................................. 17

1.2.1 Sumeet Industries Limited ..................................................................... 17

1.2.2 HISTORY .............................................................................................. 17

1.2.3 CORPORATE PROFILE....................................................................... 18

1.2.4 MANAGEMENT PROFILE ................................................................. 19

1.2.5 AWARDS & CERTIFICATION ........................................................... 21

1.2.6 VISION & MISSION ............................................................................ 22

1.2.7 SWOT ANALYSIS ............................................................................... 23

2 PRODUCTION DEPARTMENT ........................................................................ 25

2.1 Plant location ................................................................................................. 25

2.2 BRIEF DETAIL ABOUT PRODUCT: ........................................................ 27

2.3 REQUIREMENT OF RAW MATERIALS, UTILITIES AND AUXILIARY

2.4 MANUFACTURING PROCESS AND DESCRIPTION: ............................ 35

2.4.1 MANUFACTURING PROCESS: ......................................................... 35

2.4.2 DESCRIPTION OF POY PROCESS: ................................................... 37

2.6 Packing, Storage & Dispatch ........................................................................ 42

2.7 Quality control............................................................................................... 43

3 MARKETING DEPARTMENT .......................................................................... 45

3.1 Marketing Mix............................................................................................... 46

3.2 Product .......................................................................................................... 46

3.2.1 Packaging and Labelling ........................................................................ 50

3.4 Place .............................................................................................................. 53

3.4.1 Warehousing .......................................................................................... 56

3.4.2 Transportation ........................................................................................ 56

3.5 Promotion ...................................................................................................... 57

3.5.1 MARKET STUDY: ............................................................................... 59

3.5.2 Demand – Supply Scenario World Wide ............................................... 59

4 FINANCIAL DEPARTMENT ............................................................................ 60

4.1 INTRODUCTION ......................................................................................... 60

4.3 FINANCIAL STRUCTURE ......................................................................... 61

4.4 CAPITAL COST ESTIMATES .................................................................... 62

4.5 FINANCIAL INDICES: ............................................................................... 67

4.6 COMPARATIVELY LOW OPERATING COST: ...................................... 67

4.7 COMPANY PERFORMANCE AT LAST 2 YEARS .................................. 68

4.7.1 PROFIT AND LOSS ACCOUNT ......................................................... 69

4.8 FINANCIAL RATIOS .................................................................................. 71

5 HUMAN RESOURCE DEPARTMENT ............................................................. 73