> w weaving unit way started in ambasamudram in 1963 and gradually A moder 200 shuttle looms, to produce a variety of fabrics including drills, ay was increased to 1 eps? ip, pobpester_ and. poles: blended textiles, Apart from shuttle looms at _ ons © pda uni 1ST moder shuttles less looms were added to inctease the production sen processing unit 38 ade in 1966 which enable the company to pudace cop ~ ac pt ts commenced production of threats at Deli in 1937 and moved its factory In 1951 it set up a Modern Thread Mill at Koratti in Kerala and this Jet to the name under a variety of colours and designs. Coat in 1942 port of sewing threads into India. J&P coats (India) was the company operated in India and manufactured about 2000 varieties of cotton and ee heads fir various application like sewing. hosiery, Teath ms embroidery, fish nets, umbrellas, book binding and even kite flying. The brand cads are marketed are well known games chain ach" gpa we iterational quality standards. net goods, footwear, tents & griffin and spade under which the thr Madura mills wee suppliers of yarns required by the threads mill at Korat aye fom its inception. This happy and successful association culminated into merger in tnt of ARF Tiarvey, Madura mills and J&P costs into a single company named Madura Coats Limited. y. More erger led to a very advantageous situation for the compan The m ) ationaliation in production, greater utilization of installed capacity resulting in efficient vation, better utilization of employees and larger volume of exports. It offered full and 's worldwide, It free access to the research and development facilities of as coats Paton’s provided Madura coats with international connections, making the company’s efforts more productive. taken over by another larger group Ms. During 1986, M/s coats Paton's were Hla Plc” was Vantora viyella in UK and thus a new company under the title “Coats formed, Towards late eightics “Coats Viyella” was rated as the largest textile group in the world. Even today they are the largest thread makers in the world. y shares, the name of Indian Since the coats viyella ple held majority of equi company was changed to “Coats Viyella India Limited” in 1993, With the proposal ofjong it UB IE HIME OF ln company PanY Was changed back tp 1998: ily Madura Coats is still one of the largest £F0Ups of Composi POsite mills of India “Madura Coats Ltd” jn Incorporated as Mad lura Coats on 3} Jul.'74, Coats Viyella India (CVIL) got F, t name with effect from 4 Jun."93. The comy Pany has a collaboration with the pte company Coats Viyella, UK, which has a 51.529 1.52% stake in the company, Other visions are Coats India, Madura Industrial Textil came _—_ extiles, Madura Fabrics, ete. CVIL g with a right issue aggregating Rs 24.07 cores, in Jul,*94 fi io s+ in Jul."94, to part-finance the modcmisati in p gradation of existing production facilities, the expansion of production capacities stn os ; tion capacities by jastalling. additional machinery, ete, at a project cost of Rs 31 46 cf. CVIL is in th veel . L. ie arca of textiles which includes the conversion of natural and synthetic fibres into yam and threads and he designing of fabrics ™ ‘ Its major products are yar, threads, consumer fabrics and industrial textiles. {ts garments division markets famous brands such as Allen Solly, Louis Philippe and Van ewan. These brands have carved a niche for themselves in the premium category. In jne'98, the company changed its name back to Madura Coats from Coats Viyella India due ‘to the demerger of Coats Viyella Ple. It also converted the capital advance of Rs 6.08 Crs in to an equity investment in m/s Madura Spinning & Manufacturing, consequent to which it hecane a subsidiary. Global Leader: We have an unrivalled access to global markets and customers, and are recognised as the market leader across many areas of operation. Almost 1 in 5 garments on planet are held together with coat’s thread and our products are sold in over 100 countries. Our industrial division is three times the size of the nearest competitor in industrial thread, and our crafts Division is the number one global player in the textile crafts market.at Rs. 8 company to reduce the foreign shareholding to 40% Year and Events of the Company Company History ~ Madura Coats 1889 - Madura Mills Co, Ltd., was incorporated at Madurai, Ambasamudram and Tuticorin, in Tamil Nadu and the tyre cord factory as locates at Sera pore in West Bengal, and = engaged in the production of cotton and blended yams, and industrial fabrics such as tyre cord, canvas and hard duck, 1942 ~ J & P Coats (India) Pvt. Ltd. was incomporated as a private company in 1942 under the name of Jamna Thread Mills Ltd to manufacture sewing threads. 1945-A & F Harvey Lid., which was founded in 1883, was incorporated as a private limited company in 1945 to manage textile and other companies in South India. It acted as the Management Agents of Madura Mills Co., Ltd, until December 1969. With the statutory temmination of managing agencies, the Company become primarily an investment company. Italso had some shipping and insurance agencies and small baling press at Tuticorin. 1953 - A factory complex was inaugurated at Koratti in Kerala for full scale manufacture of aqusty treads sith a view of import substitution. Over the yeas, t built up a considerable export business in sewing threads to complement its domestic trade. 1977 Towards the end, 23, 06, 286 No. of equity shares of Rs. 10 each were offered for sale per share by non-residents to the existing Indian shareholders and employees of the ‘The company allotted 74, 08, 881 No. of equity shares of Rs. 10 each for cash at a premium of Rs. 55 per share to J & P Coats (India) Pvt. Lid., Glasgow, UK, to increase their quality % to $1% simultancously, 40, 92, $05 No. of equity holding in the company from 39.90% 1¢ or more member shares of Rs. 10 each for cash at a premium of Rs. 20 per share to on companies of Coats Viyella Group. 1981 - In addition, the 7% debenture stockholders of Madura Mills Co Ltd., were allotted number of debenture stocks in the new company on the same terms and conditions. 1982 ~ sa subsidiary of the Company. Vaigani Investments, Ltd., and Co The Pandyan press Ltd. Investments Ld., became subsidiaries of the company. 29, 07, 886 Bonus Equity shares issued in prop 1:4 and allotted on 8" March 1983.. ; 5 Ng the peri . 6, marketing of readymade garments and Elyse both owned the Company commences subsidiary of coats Viylla p.le, UK, ¥ British Van Meusen Cg La The company commenced work on installation of an Additional cepacit Woven's covered by the existing licence. The company’s toneion 7 : °F 650 TPA of non. "oven plant at Madurai wi th a February, with techni . Ye nical collabora the company issued 5, 00, 00-14% non-convertib laboration from Rs. 100 cach on private pl. stitutions. Th fe debentures of + These debentures are 1998, capacity of 1000 TPA was implemented on 23% bonded fibre fabric, U.K. Micement basis to financial i, Tedecmable at a premium of Rs, Per debenture dusing 1994 The Pandyan Press, Ltd. closed down its operations with effect from 26" November. The Company's name was changed to Madura Agro Industrial Ltd. The Tuticorin Co., Ltd, The Papaimasam Mills Co., Ltd Coral Mills Co.,Ltd and The Tinnevelly Mills Co, Lad, all in members Voluntary Liquidation, are also subsidiaries of the company, The company issued 17.59% non-convertible debentures of Rs, 100 each on private placement basis of financial institutions. These debentures are redeemable at a premium of Rs. 5 per debenture during 1998/2000. The company issued 2, 00, 000-17% non-convertible secured debentures of Rs. 100 cach redeemable at par on 30" September 1994 on Private placement basis. ‘The fixed assets of the Company were revalued as on 31" March, and the net surplus arising out of it was credited to the revaluation reserve. 1, 09, 04, 573 Bonus Equity issued in prop. 1992- New Products such as blazers and jackets were added to garment business. Profit margins came under pressure due to unabsorbed fixed costs by virtue of long strikes and disturbed were created for thread, export of canvas and for the domestic synthetic duea, | a business, New machine were installed for overall up gradtion in the quality of fabrics. Yam and Jn Jamuary, the clearance was obtained for establishing an export oriented unit at Tamil Nad, ly 1993. Pursuant to the scheme the shareholders of the amalgamating Companies Were allotted shares of the new company was follows, Madura Mills Co., Ltd. For every Sequity shares of Rs. 15 each held, 8 No, Of equity shares of Rs. 10 each- A&E Harvey Lid. For every equity shares of Rs. 10 each held, four equity shares of Rs. 10 each, for every preference shares of Rs. 100 held, and one preference share Of Rs, 100 each J&P Coats (India) Pvt.Ltd for every 2 equity shares of Rs. 10 each 41 No. of equity shares of Rs. 10 each- With effect from 14" June, the name of the Company was changed from Madura Coats Ltd, To Coats Viyella India Ltd. 1994- The Company's newest division ‘intro’ commenced its activities of exports, 1996- The fabrics division launched Easy care variety of cotton shirting and bottom wear. Also, ame retardant probing finish was imparted to wide width fabrics, a new project development 2, 594 No. Of equity shares issued to NRI on RBI approval. 1997. Steady recovery in the Coats threat business was reported. The company launched Peter England in the mid priced men’s shirt market. 240, 73, $60 Rights shares issued 7, 304 shares kept in abeyance, 1998- Pursuant to the demerger of Coats ViyellaPle, The name of the company was changed back to ‘Madura Coats Ltd.'2000- The Management has declared a lock-out of the Tuticorin Mill effective from first shift of October 9, 2002 Madura Coats appoints Additional Director Mr, Anil Dias as an Additional Director of the company with immediate effect. Board Spproves for the principle of amalgamation of 3 wholly owned subsidiaries namely or investments Lid, Vaigai Investments Lid & Madura Agro Industries Ltd. Board approves for the buyback of 14714000 equity shares at a price not exceeding Rs. 27 per equity share. Get clearance from stock exchange for the delisting of the equity shares from ASE, BGSE, CSE and DSE. 1 & P coats along with Coats Ple makes open offer to acquire 36.8% stake in Madura Coats. Introduces 3 new collection of garments Purist a, Dazzlers and Satin Trousers. Introduces “Clean Jeans’ denims under the Allen Solly Brand,1 & 1 Coats hikes its stake in the Indian Subsidiary Madura Garments from 63.3 through an open offer estimated at Rs. 71 er. 2003 Sets up new ot ; of jeans. SF anticipating Her tumover, 2004 Madura forays into men’s innenwear market Management ~ Madura Coats Name Designation I ‘Chairman 7 Chair person MC Flower SLNobme Nominee Director JN Ramamurthy Director PR KGaA Director ‘S Subramanian Director ‘Anil Lasantha Naomal Dias Whole Time Director [ MAM Ramaswamy Director "| TS Remedios Managing Director ‘SN Talwar “Altemate Director R Bevan Director M Subramanian Whole Time Director TD Lea Director BGF Anderson Director“a Who we are? a With a rich heritage dating back to the 1750) industrial thread and textile crafts business empto ‘n * Cons is the worta's ead across six continents around the world, _ 'ying 20, 900 employees in over 79 1 nities Deep Heritage and expertise Coats has long heritage and has been servi in 1B CUst i communities for more than 250 years, nen aig in Our well known brands and strong elationships with customers consumers mean Our products and services meet current and future needs. Our. ’ - - Our company-wide understanding of our business partners and consumers, cou » coupled with the deep expert Pertise of our people, builds trust and certainty. A Pioneer Our pioneering history and innovative culture ensure we continue lead i sae ung way around the world; providing complementary and value added products and serv 7 services to the apparel and footwear industries techniques to develop products in new areas such ) > threads, aramids and fibre optics.1998- Pursuant to the demerger of coats Viyella Plc, The name of the company Was changed back to Madura Coats Lid. _—_ 2000- The management has declared a lock-out of the Tuticorin Mill effective from first shift of October 09. 2002- Madura Coats appoints Additional Director Mr. Anil Dias as an Additional director of the company with immediate effect. Board approves for the Principle of amalgamation of 3 wholly owned subsidiaries namely Kor Investment Ltd, Vaigai Investment Ltd. And Madura Agro Industries Ltd. Board approves for the buyback of 14714000 equity shares at a price not exceeding Rs.27 per equity shares. Get clearance from stock exchange for delisting of the equity shares from ASE, BGSI and DSE, J&P coats along with Coat Ple makes open offer to acquire 36.8% stake in Madura coats. Introduces 3 new collections of garments purist, Dazzlers and satin trousers. Introduce ‘clean jeans’ denims under the Allen Solly Brand, J&P coats hikes it stake in the Indian subsidiaries of Madura Garments from 63.2% to 93% through an open offer estimated at Rs.71 crores. 2003- Setup new brand of jean, SF anticipating 13 crores tumover 2004- Madura forays into men’s innerwear market, 4.3 Vision and Mission 4.3.1 Vision: We will be the world leader in value added ‘engincered yams and threads for industrial and consumer use. We will develop and supply highly complementary products and service, where they add the significant value to the customers. We will achieve success through customer focused innovation and winning ‘ons driven by motivated people and global team work 4.3.2. Mission > Coats India’s mission is provided its entire customer with products and services > It offers the best overall values in terms of price, performance and deliveryProduct Types 1. Cotton 2. Polyester Cotton fibre ey cotton yarn / sewing thread Polyester staple fibre => —_ Polyester yarn/ sewing thread Polyester filament yarn & cotton yam ===> Polyester / cotton spun yam sewing thread END USE OF PRODUCTS PRODUCT. USES OF PRODUCTS Cotton sewing Stitching of Clothes Polyester Sewing Thread Stitching of Cloths Polyester core spun / Polyester Stitching Leather items like Jeans Sewing Thread Tackels, Gloves, Sportswear Shoes ctc., Polyester/ Polyester Core spun Stitching general cloths 4.4.2 LOGISTICS DEPARTMENT Making inputs and outputs available when they are needed and in the quantities they are needed © Input from the market are needed to the production © Output of production process © Battle fronts need troops © People need agriculture products © Agriculture needs fertilizer System is shown as logistic mix including following functional areas v Order processing Information flow Warehousing Inventory control Transportation vvvv‘Transportation For the movement of goods from supplier to buyer. transport is the most fondamental and important component of logistics. Coats van used three shift employees transportation process. Three shifts timing are Jam-3pm, 3pm-1 1pm, lpm-7am. Besides they keep trucks for movement of their raw material and finished goods E.g - For the low unit value products the transportation cost component is 20% of the product cost. In logistics cost it share varies up to 65-70% in case of mass consumed very low unit products * Mode of transportation © Own fleet outsourcing * Route planning * Vehicle scheduling 4.4.3 FINANCE DEPARTMENT The part of an industry manages its money. The business function of the finance department is to be including planning, organizing, auditing. accounting and controlling its company finance. The finance department also usually produces the company’s financial statement * Sales accounting * Capital accounting © Inventory accounting, © Bill passing © Payment * Cost accounting Maintain by this department + Providing management information * Budgeting © Garment costing n44 Organization chart [Managing Orector | == j=. [- Generat manager} + s + + + 7 a 7 5 Logistics. | [Finance Purchase wR _Deoartment | a | ceoomnen Department | fa a 4 1 = Production eeostnent J {_eoarsment J — eon) |. Supervisor | | visor Logistics Auditors vaeen - a IFNo supplier price quotation & negotiation Proposal J PO confirmation J Raising PO in ERP PO sending Send PO to accounts Follow ups for the shipping Doc's for import only Sending Doc's to documentation dept. import only 4 Follow up with stores for any Shortage / Excess g END4.4.6 QUALITY CONTROL DEPARTMENT It is more important in any aspects of business. Customers demand and expect valuc for money. As producers of apparels there must be a constant endeavor to produce work of goods quality “The system required for programming and coordinating the effort of the various groups in organization to maintain the requisite quality” As such quality control is seen the agent of Quality Assurance or Total Quality Control Objectives * To maximize the production of goods within the specified tolerance correctly the first time, * To achieve a satisfactory design of the fabric or garments in relation to the travel of choice in design, styles, colors, suitability of components and fitness of product for the market % PryWee ew “ peer er ey ee ee CHAPTER-§ RESEARCH METHODOLOGY 5.1 Definition Research meth i nen odology is a way to systematically solve the research problems as it guide how research j contit, research is done scientifically. It consists of different steps that arc encrally adopted by a Dt generally adopted by the researcher to study the research problem along with logic behind them. 5.2 Research design A rescarch design is a plan of action to be carried out in connections with research project. A research design is a guideline for the researches to enable them to keep track of their actions and to know whether its moving in the right direction in order to achieve their goal. This research study is based on descriptive research. 5.3 Method of data collection ‘The method of the Data collection are of the two types 1. Primary data 2. Secondary data 5.3.1 Primary Data ‘The data which are collected directly 5.3.2 Secondary data The required data for the research study has been collected from the compilation made by capitalizes corporate database. The database is a most reliable and informative one. It contains a highly organized database ‘The research study has been conducted using secondary data 35Analytical tools for study: > Ratio analysis 5.4 Period of the study ‘The total period of taken for analysis of Madura coats Pvt. Ltd., for the past 5 years. The year taken for study are from 2014-2015 to 2018-2019 5.5 Statement of the proble: The industrial sector are many times facing the rapid growth and also severe recession period. The reason behind of this up and down are happen by internal and external policy changes in the industry like the government policy changes towards the industry which result the great impact in the cement industries and so on, This will make an atmosphere to study the level of growth in profit way of the cement industries in general. Though the central government has encouraged the industry by modernization and expansion programs and the state government incentive schemes like sales tax exemption ete., In this study case, Madura coats also falls under the same category. The result of the Madura coats Pvt. Ltd has not shown the satisfactory results for the past four year. There has been a decline in tumover and profits and the performance of the Madura coats. On the comparison of the Madura coats with other companies it is not much satisfy with other companies. Although there has been a profit and growth in the Madura coats, it is not enough for the further development of the dustry sufficiently. ) How far the company has been efficient in terms of the profitabilit ii) What are the factors responsible for decline in profits during last four years? 16CHAPTER -8 CONCLUSION sl Conclusion: study is made on th data in Madura coats e topic business performance using ratio analysis with The Pvt. Ltd. five yeas and traditional indicators of business is a transition se information and key factors Currently there performance to modem indicates users of the: influencing business performance.CHAPTER -9 BIBLIOGRAPHY ol References > Maheswari, SN., Principle of Financial Management Madura C ira Coats Pvt. Sultan Chand and Sons Educational Publishers, New Delhi, 20: Sy clhi, 2014. Shashi Gupta. K, 1". Kalyani Publishers, Lid. > Das. KR, “Corporation Finance and Financial Management Bhattacharya P.K., Sharma R New Delhi, 2005. 9,2 Websites: , uip://wwww.coats.com > https “J/woww-finance.com > https » upsurvowmadiracoats.co4” su/fwvwww,coatsstudy.com1.1 COMPANY PROFILE ABOUT THE COMPANY fr. Frank Harvey, the founders of A&F Harvey Itd., were ‘Tuticorin. In 1885, Mr, Andrew Harvey commenced the ginning of cotton throu od in 1880 at Bellary & register the Tirunelveli mills 60. ud began operation in its water mill in papanasam at e mibasamutiram. In 1886, Harvey brother's ageney at London was incorporated, In the same ‘ambas gear the Trane mills 0. itd, paid its maiden dividend. tn 1886, Madura mills co Id was registered and the coral mills co. Id began she operation at Tuticorin, In 1892, spinning operation that is OLD MILL began at Madura the second largest spinning mill was commissioned at Madura mills. mills, Madurai. In 1912, quired the Pandiyan in ovas named at NEW MILL at Madura In 1929, Madura mills co. It, mills co, ld Madura. In the same Maura mills took over the assets, liabilities and the trading eli mills co. Nd. The management of these companies remained with ew spinning mill (steam mill) was added at Ambasamuthiram by formed in Delhi by J&P coats Itd. UK in 1937 and rights of the Tirunel [ASF Harvey ltd. 1919325 an Madura mills. The Jurnna Thread mill was in 1942 it was transfered to Bombay. In 1944, 9 special re Cord Wrap plant was installed (known as Duntop Mill) atthe request of Dunlop rubber co. (India) Itd by Madura mills. In 1951, a new factory was set up at Komati, Kerala by J&P Coats Itd. In 1953, Madura mills started. Weaving belting Duck for transmission and conveyor belts and canvas, mills, In 1959, the Central Agency (the marketing network of J&P coats Id. in its Dunlop coats India (pvt) Itd started to UK) ceased im export thread from India, in 1963, goo looms and ancillary machin rill for weaving of apparel and other fabries at Ambasamuthiram, for export and inland markets by Madura mills. In 1969, the bleaching, dyeing and finishing project was started at porting threads for local sales. In 1960, J&P very were installed in a new Ambasamuthiram. + 1880- First cotton press in virudhunagar © 1883+ Water mill at Ambasamuthiram « 1889- Tuticorin coral mills © 1892+ Madura mill ¢ 1944- Madura industrial textile« 1963- «1974. Madura coats formation #1986. Coats viyella ¢ 1986- Madura garments 2001- Coats India & Global # thread Supply India spats viyella India Id functions with «divisions each serving as profit centre. They are, * Madurai industrial textiles. - industrial textile - Apparel Fabrics = Thread and accessories ‘abrics, © Madura «Coats India © Madura garments = Readymade garments One of the major divisions of coats viyella India is Madura textile pvt Itd. In India Madura coats pvt Itd is lending manufacturer of yam and wide range of industrial Fabrics that are made from cotton and synthetic fabrics and other special fabrics. Madura coats pvt Itd has achieved market leadership in India and abroad covering over 50 countries. Madura coats pvt Itd has a quality system has been maintained under ISO 9002. Madura coats pvt Itd is a company is the process of manufacturing sewing thread. Madura coats are a multinational company having its head office at UK. Madura coats having two divisions namely, Global Thread Supply India © Coats India Global thread supply India is a division of Madura coats pvt Itd is a responsible for implementing the coats global thread supply strategy in India. Global thread supply India has the division of spinning and twisting mills located in Madurai. Global thread supply India is largest producer of spun polyester thread within coats and supplies all over the world, Global thread supply India has an in house capacity of 1,34,000 spindles and produces about 245 tons per week of grey thread. Global Thread supply India is manufacturing grey thread in cotton, polyester, spun and twisting filament yam and supply t0 coats India as their raw material. 50% of production is sent for exports to the group ofmmpanies (Bangladesh, Egypt, Malaysia, China, Mexico, Romania, UK, etc,) coats India on ‘ting grey thread from Global thread supply India bleach and dyes the grey thread and mverting the grey yarn into packages of sewing thread in various packages like cops, cones, yools, balls, ete.| ORGANISATION STRUCTUR finance Director Managing Director | | Personnel President Director Coats India President Global Thread Supply Vice President Manufacturing Manager Vice President Logistics Finance Mill Manager Mill Manager Mill Manager New Mill Steam Mill Centenary Mills Madurai Ambasamuthiram Mill Manager TuticorinMill Manager Centenary Mills _ Spinning Quality Engineering | Manager Assurance | _ Executives fo ; | Cantecn Time ota Clerical Staff Office Room _ Workmen2.2. company Profile: Madura Coats Pot..td Madural A hundred and twenty years ago, two brothers from Scotland, Andrew’ and frank Harveys Jaunched their cotton trading business at belary, They soon moved to vinwlupatti (now Knows as virudhunagar) and acquired a small hand cotton press. Raw cotton from the districts of south Indian brought pressed pressed and exported 10 England from ) ruticarin port. In 1883, the Harvey brothers pioncered into spinning in the south, They dammed the waters of Tambraparani River above papanasam falls near ambasamudram and used the power developed by the water in its drop from the crest of the hills to the plains, to una spinning mill known as tirunelveli Mills Company limited. ‘The water mill as it was popularly known started production in 1885 with 10,000 spindles, Its products established a name for quality and the mill proved it highly this success, the Harvey brothers set up mills in quick profitable venture. Spurred by succession in tuticorin the “Coral Mills” in 1889 with 24,000 spindles in Madurai the “Old Mills” in 1892 with 36,000 spindles, and the “New Mills” in 1912 with 70,000 spindles. Harvey also acquired pandyan mills in Madurai, which was under a different management till 1929; all these mills were amalgamated to form “Madura Mills”. In 1932, another mill known as “Steam Mills” (because it was run steam poner) was installed in the premises of the old tinmelveli mills. All the mills were continually expanded until carly 40's, when the total spindling controlled by Harvey's was well over 4, 50,000. Harvey reputedly became the largest spinners in Asia under onc management, A major part of the yarn produced by the mills was exported all over the world. ‘The rest of the yarn was sold in the domestic market. ‘An industrial textiles unit to manufacture Tyre cord came up at Madurai in 1994 and the company added another industrial textiles unit at scra pore (west Bengal) in 1951. These units produced a variety of industrial textiles such as tyre cord fabric which is used as carcass material in tyres, Belting duck fabric for V-belts and Conveyor belts, canvas required for making tents and tarpaulins ete. A dipping plant was commissioned in Madurai during 1984 for dipping synthetic fabrics for tyre cord and mechanical rubber goods application. A 40 cord dipping machine was erected at sera pore (0 dip rayon braiding yam and V-belt cords.