By

Amit Rathi
Anisha Bharti
Ankita Beri
Ankita Gupta
Arjun Singh Bisht
Arpita Panda
Arun Dahiya
Dibyanshu Pandey
ERP Project on Raymonds
 Introduction
 Largest integrated manufacturer of worsted fabric in the world
 Capacity of 33 million-meter in wool & wool-blended fabrics
 Raymond commands an over 60% market share in worsted suiting in
India
 Ranks amongst the first three fully integrated manufacturers of
worsted suiting in the world
 Only company in the world to have a diverse product range of nearly
20,000 design and colours of suiting fabric to suit every age, occasion
and style
 Raymond has mastered the craft of producing the finest suitings in
the world using super fine wool (with a fine count from 80s to 240s)
and blending the same with superfine polyester and other specialty
fibres like Cashmere, Angora, Alpaca, Pure Silk, Linen etc
 Divisions of company
 Textiles : Raymond plants have a capacity of 31 million meters in
producing the finest worsted fabrics and wool blends

 Engineering :J .K. Files & Tools and Ring Plus Aqua Ltd. are the group
companies that are engaged in the manufacture of precision
engineering products such as steel files, cutting tools, hand tools,
agriculture tools and auto components

 Aviation : Raymond Ltd. is one of the first Corporate House in India to

launch Air Charter Services in India in 1996 and since then it has been
always a way ahead for Raymond Aviation
 Brand Portfolio
Raymond Premium Apparel

• Premium formal wear brand which is postioned to offer classic

garments with impeccable fits and inviting styles to the Global Indian
• 9th most preferred Men’s wear Brand among Asia

Zapp

• Presents an exciting range of apparel, accessories and lifestyle

products for kids between the age group of 4 to 14 years.
 Brand Portfolio(Cont.)

Park Avenue

• Leader in Men’s formal wear

• Awarded super brand status in 2006-2007
• Most innovative brand of the year 2006-2007
• Shirts made from Bamboo fibre for the first time in India in 2006
• Stain resistant suits for first time in India by Park Avenue in 2006
• Park Avenue Woman is a complete range of Business Wear for women
 Brand Portfolio(Cont.)
Color Plus

• India’s only super premium smart casual brand

• Known for innovation and creativity
• ColorPlus Women's Wear is inspired by the independent, discerning and
multi faceted women of today

Manzoni

• Manzoni is a luxury lifestyle brand providing the best in contemporary

international style & luxury
• Finest 2ply 200s,cotton shirt launched by Manzoni for the first time in
India
 Brand Portfolio(Cont.)
Parx

• Leader in smart-semi formal wear

• Nominated for “Best casual wear brand 2006-2007” and “Best advertising
campaign”

Notting Hill

• This brand caters the needs of today's fashion-conscious and discerning

young professionals at an affordable price
Indian Competitors

Global Competitors
 Share Holding
Indian Promoters Foreign collaborators
Indian inst/Mut Fund FIIs
ADR/GDR Free float

30.20%
39.60%

1.40% 7.30%
21.50%
The performance of the Company’s shares relative to BSE Sensex
is given in the chart below
 MARKETING AND PROMOTION
• Raymond indulges heavily in promoting its brands.
• It relies heavily on Print and TV advertisements.
• It has full length advertisements featured on the television.
• Raymond’s advertisements always try to show the sensitive side with
the distinctive melody.
• There advertisements feature relationships between father and
daughter, lead character playing with puppies while still in his suit,
father-son relationship and many more..
• Raymond’s Manzoni organizes Style Icon Awards of the Year.
• Raymond doesn’t believe price reductions alone can draw
more people to its stores or boost sales.
• To enter small cities such as Gandhidham, Nadiad and
Himmatnagar in Gujarat and smaller markets in other states,
Raymond banks on franchisees for its ParkAvenue formal
menswear and Parx casual wear.
• In recent times, its sales took a real hit due to the slowdown
and it decided to boost sales by exploring its brands,
enhancing its portfolio by adding new items and accessories.
 DISTRIBUTION
• Raymond’s is a Manufacturer cum Distributor.
• The group has its presences in the retail sector through a chain
of the following:
– Exclusive stores-‘The Raymond Shop’
– Premium retail store offering complete range of men’s wear
– Stand alone stores for Manzoni, Park Avenue, ColorPlus,
Parx, Be: and Zapp.
• The Raymond Retail Shops are premium retail stores offering
complete range of men’s wardrobe.
– The largest one stop retail network in the country.
 There are over 548 stores exclusive 'The Raymond Shop' (TRS) in
prime locations, in over 196 cities in India, 27 overseas outlets in
15 cities across the Middle East, Sri Lanka, Bangladesh and Nepal.
• Raymond also exports fabrics to USA, Sri Lanka and Middle East.
• Reach of the brand is spread all over the country across big cities
and smaller towns thereby targeting a wide spectrum of
consumers
• It has also extended its presence in some of the leading Malls
with new retail format.
• Advantages of Owned Stores / Exclusive Brand Outlets
– Direct medium of selling apparel
– High realization for the garment sold
– End-user feedback and knowledge of their preferences
• Disadvantages of Owned Stores / Exclusive Brand Outlets
– Requires greater advertising expenditure.
– Greater fixed costs.
 CHART OF ACCOUNTS

Expense Cost of
Account good sold

Equity Revenue
Accounts Accounts

Asset Liability
Accounts Accounts
28
 ASSET ACCOUNTS
Current Assets Long Term Assets
(Account no 10000 - 16999) (account numbers 17000 - 18999)

10100 Cash in Bank 17000   Land

10600   Petty Cash Fund 17100   Buildings

12100   Accounts Receivable 17300   Equipment

12500   Allowance for Doubtful Accounts 17800   Vehicles

13100   Inventory 18100   Accumulated Depreciation -

Buildings
14100   Supplies 18300   Accumulated Depreciation -
Equipment
15300   Prepaid Insurance 18800   Accumulated Depreciation -
Vehicles
 LIABILITY ACCOUNTS
Current Liabilities Long-term Liabilities
(account numbers 20000 - 24999) (account numbers 25000 - 26999)

20100   Notes Payable - Credit Line #1 25100   Mortgage Loan Payable

20200   Notes Payable - Credit Line #2 25600   Bonds Payable

21000   Accounts Payable 25650   Discount on Bonds Payable

22100   Wages Payable 25700 Bank Loans payable

23100   Interest Payable 25750 Paid in Capital

 

24500   Unearned Revenues

Stockholders' Equity Operating Revenues
(account numbers 27000 - 29999) (account numbers 30000 - 39999)

27100 Market Shares 31010   Sales - Division #1, Product Line

010

27500 Retained Earnings 31022   Sales - Division #1, Product Line

022

29500 Treasury Stock 32015   Sales - Division #2, Product Line

015

33110   Sales - Division #3, Product Line

110
 
Cost of Goods Sold
(account numbers 40000 - 49999)

41010   COGS - Division #1, Product Line 010

41022   COGS - Division #1, Product Line 022

42015   COGS - Division #2, Product Line 015

43110   COGS - Division #3, Product Line 110

 Expense Accounts
Direct Expense Accounts Indirect Expense Accounts (Overhead)
(account numbers 50000 - 50999) (account numbers 59000 - 59999)

50100 Shop or Design Labour 59010 Salaries & Wages, Office & Sales
50115 Payroll Tax Expense 59015 Payroll Tax Expense, Office & Sales
50123 Workers Comp Expense 59023 Workers Comp Expense, Office & Sales
50127 State Sales Tax Expense 59300 Accounting
50200 Materials 59312 Advertising
50300 Freight 59330 Bank Fees
50426 Engineering 59341 Depreciation Expense
50520 Shop or Design Supplies 59345 Dues and Subscriptions
50647 Rental Expense 59353 Insurance: Product Liability
50700 Repair and Maintenance 59345 Insurance: Vehicles
50809 Small Tools 59358 Legal Fees
50830 Travel 59550 Office Supplies
50843 Lodging 59618 Taxes and Licenses
50849 Meals 59762 Research and Development
 RAW MATERIALS
 
• Wool:- The Merino brand of wool is imported from Australia,
and supplied as Topes by the wool scouring & Grey combing
department.

• Polyester:- A man made synthetic fiber which is in the form of

staple fiber or tow. There are three verities- Normal, Sparkle
&Low pill.

• Viscose:- A regenerated cellulosic fiber, which is made from

wood pulp. Generally it is dope dyed by suppliers and is in
fibrous form.
RAW MATERIAL NORMS

 PSF - POLYESTER STAPLE FIBRE

 VSF - Viscose Staple Fiber
 TOW - Polyester Continuous
 Filament
 GWL - Greasy Wool
 SWL - Scoured Wool

OTHER MATERIAL

 FLEX TOP (Linen TOP)

 SILK TOP
 VISCOSE TOP
 LENRING MODEL TOP
 BLENDED TOP
 ACRYLIC FIBER
QUANTITY OF RAW MATERIALS USED
Raw Materials ------------------- in Rs. Cr. ------------------- Mar 2010

Product Name Unit Quantity Value

Wool & Wool Tops Metric Tonnes 3,109 126.30

Yarn Metric Tonnes 5,435 92.80

Staple & Synthetic Fibre Metric Tonnes 4,946 49.11

Files Lakhs Numbers 79 14.18

File Steel Metric Tonnes 2,342 11.13

Drill Steels - Various Metric Tonnes 172 5.83

Other Natural Fibres & Metric Tonnes 84 4.80

Tops
Others Not Reported NA 2.06

Grey Fabrics Lakhs Metres 1 1.50

Waste & Rags Cotton Metric Tonnes 69 0.46

 SUPPLIERS
Supplier Name Material
RIL- Reliance Industries TOW – Polyester Continuous Filament
Ltd. Pataganga (M.S) PSF – POLYESTER STAPLE FIBRE
Surat (Gujrat)

FRL- Futura Fibers TOW – Polyester Continuous Filament

Chennai PSF – POLYESTER STAPLE FIBRE
TOP- polyester

GIL- Grasim Industries Ltd VSF – Viscose Staple Fiber

VSF-TOP TOP- polyester
Nagda (M.P.)

DAL- Dewavrin Australia P. Ltd Greasy Wool

CDDL- Compagnie Importin DeLaines Greasy Wool

 SUPPLIERS

Supplier name Material

BEAPL- BWK Elders Australia P. Ltd Greasy Wool

From INDIA Greasy Wool

AAT- Azad Agro Traders Kashmir

ESL- East End Silk Ltd. Silk TOP

(Malda),W.B
 BUYERS
Buyer no Buyer name City
• 25052 Sejal Baroda
• 25056 Royal cloths store Damman
• 25063 Zebak traders Baroda
• 26033 Vora talsi Surendranagar
• 26034 Vora brothers Surendranagar
• 26011 Fabric center Jamnagar
• 26014 Patel treading co. Jamnagar
• 26086 Vivdha Mumbai

Area code 25 and 26 indicates north division

 STEPS INVOLVED IN PRODUCTION PROCESS

 
• COMBING & TOP DYEING SECTION

• SPINNING

• WEAVING

• FABRIC DYEING

• FINISHING

• DESIGNING DEPARTMENT

• FOLDING

• WARE HOUSE

• QUALITY CONTROL and R&D

LINK TO COMBING AND TOP
DYEING
 SPINNING

Bumps Top from Ply Winding

Rubbing Frame
Recombing

Ring Frame TFO

Conditioning

Steaming Steaming

Gilling

Auto Winding Yarn Room

 WEAVING
Loomshed
Yarn Room

Sectional Warping Perching

Drawing-in
Grey Mending
 PROCUREMENT PROCESS

A procurement process is a series of steps that a

company takes to obtain necessary materials. It is also
referred as requisition -to -pay process .

Procurement is the acquisition of appropriate goods or

services at the best possible total cost of ownership to
meet the needs of the purchaser in terms of quality and
quantity, time, and location.
PROCUREMENT CYCLE
PROCUREMENT PROCESS
 Business Process Flow for Procurement

• The main documents and transactions in the Procurement

process are:

Purchase Purchase Goods Invoice

Requisition Order Receipt Posting

Planning, Reporting, and Analysis

 PURCHASE REQUISTION
A purchase requisition is a document that identifies the materials
needed ,the quantity needed ,and the date it is needed
 PURCHASE REQUISITION
The procurement cycle in SAP

• Determination of requirements: The concerned department can manually pass a

requirement for materials to the Purchasing department via a purchase
requisition.
– If you have set a MRP procedure for a material in the material master, the
R/3 System automatically generates a purchase requisition.

• Determination of the source of supply: SAP helps the buyer determine possible
sources of supply.
– You can use this to create requests for quotation (RFQs) and then enter
the quotations. You can also access existing purchase orders and
conditions in the system.

• Vendor selection: The system simplifies the selection of vendors by making price
comparisons between the various quotations. It automatically sends rejection
letters.
REQUISTION FORM
 PURCHASE ORDER
A purchase order is a formal request to a vendor to provide
certain materials or services under specific conditions (quantity,
price, delivery date, etc.)
PURCHASE ORDER
 PACKING LIST
A packing list provides details about the materials contained in
the shipment. It includes data about the purchase order for the
shipment .
 GOODS RECEIPT
When goods are received from a purchase order, the item data is
copied from the purchase order into the goods receipt
document.
GOODS RECEIPT DOCUMENT
 INVOICE PROCESSING

• The procurement process is

concluded by the invoice
verification process, during
Invoice Processing
which invoices and credit
memos are entered and the
Master data
contents and prices are
checked for accuracy. Invoice
Invoice verification
document
Payment
Invoice
program
• If there are discrepancies
between the purchase order
or goods receipt and the Purchase Mat. doc. for

invoice, the system warns the order goods receipt

user, and depending on how

the system is configured,  SAP AG 1999

blocks the invoice for

payment
VENDOR INVOICE
 PRODUCTION PROCESS

 It is also known as plan-to-produce process.

 It involves manufacturing and generating
the desired goods and services.
 It includes all the steps necessary to make
the finished goods from components.
 It is more complex than procurement and
fulfillment processes.
 TYPES

 Assembling:
It involves putting a number of component
materials together to produce the product.
 Manufacturing:
It involves taking raw materials to produce
desired finished product.
 STRATEGIES

 Make-to-order
Producing goods only in response to direct
customer orders.
 Make-to-stock
Creating an inventory of products that can be
stored and then used later to meet customer
demands.
 MASTER DATA
 Bill of material
It includes all the materials and parts needed to
make one unit of finished product.
 Work Centers
The actual task of production is accomplished in
work centers.
 Product Routing
It defines the steps necessary for creating the
product.
A BASIC PRODUCTION PROCESS
 PLANNED ORDER
RAYMONDS LIMITED Planned Order #7412

PLANNED ORDER Production Order #4142

Request Requested Requester Requester Delivery

Date Delivery Date Name Phone Location

5/11/201O 15/11/2010 ASHISH DHULL 0130-24432665 WAREHOUSE

Material Number Material Description Quantity

FBST3434 ROVING 100

Requested by: ASHISH Date: 5/11/2010

Approved by: ARJUN Date: 6/11/2010

 PRODUCTION ORDER
RAYMONDS LIMITED Production Order #4142

PRODUCTION ORDER

Material No. Material description Quantity

FBST3434 ROVING 100

Date Quantity Scrap Completed by

Complete Quantity
Raw material
staging
Assembly
completed

Date Quantity Completed by Received by

Move into storage
location

Planned order Number:7412

Authorized by:ARJUN

Date authorized: 6/11/2010

 MATERIAL WITHDRAWAL SLIP
RAYMONDS LIMITED Production Order #:4142

MATERIAL WITHDRAWAL SLIP Production Quantity:100

Date Issued by Received by Location

TJ CS WAREHOUSE
16/11/2010

Material no. Material Quantity per Total Quantity Quantity Issued

Date Issued by Received by Location
Description item Needed
TJ CS WAREHOUSE
16/11/2010
WOOL12 WOOL 2 40 40
SPULL321 SPULL 4 50 50
CAN132 CAN 1 40 40
ROVTU343 ROVING 3 60 60
TUBES
 GOODS RECIEPT

RAYMONDS LIMITED Goods Receipt #11421

GOODS RECEIPT
Date 18/11/2010

Production Order # 4142

Material No. FBST3434

Material Description ROVING

Quantity 100

Delivered by MM

Received by TJ
FULFILLMENT PROCESS
 DEFINATION
• Process through which company sells it’s products to
customers
• Also known as ORDER-TO-CASH process

Two types of fulfillment process

sell-from-stock configure-to-order
• RAYMOND USE SELL-FROM-STOCK PROCESS
 DOCUMENTS ASSOCIATED
• Customer Inquiry
• Quotation
• Customer purchase order
• Sales order
• Picking document
• Packing list
• Invoice
• Payment
FULLFILLMENT PROCESS
 CUSTOMER INQUIRY
Style Garment Distributors
1445 kailash Street
Gurgaon-122010,Haryana
Phone 9734075243 Fax 3248764

Date :
To Whom It May Concern:
My name is Sandeep Malik , and I am a purchasing agent for Style Garments
Distributors,Gurgaon. I was looking through your catalog, and I would like to receive
a quote for the following items:

Material # Description Quantity

ABC123 Fabrics for mid-range suits 40 (16250 m)

EFG321 Black and white classic design in polywool blends 20 (8820000m)

A quote by Fax would be ideal.

Thank You

Sandeep Malik
Purchasing Agent
Fax :: 0124-3248764
 QUOTATION
QUOTATION
Quotation Number:123456
Date: November 16, 2010
This Quotation is valid for 30 days
Raymond Ltd. Customer ID [ABC12345]
Mahindra Towers,
2nd floor,B Wing
Pandurang Budhkar Marg
Worli,Mumbai-400018.
India
Phone :+91 22 4034 9999
TO:
Style Garment Distributors
1445 kailash Street
Gurgaon-122010,Haryana
Phone 9734075243 Fax
3248764

QUANTITY DESCRIPTION PER METER ITEM TOTAL

40 (16250 m) fabrics for mid-range suits rolls 650 65000000

Black and white classic design in
20 (8820000m) 882 176400000
polywool blends fabric rolls

Subtotal 241400000

Sales Tax 6.875

Total 1901025000

Quotation prepared by: Mr.Anuj Arora

THE COMPLETE MAN THANK YOU FOR YOUR BUSINESS!

CUSTOMER PURCHASE ORDER
Style Garment Distributors
1445 kailash Street
Gurgaon-122010,Haryana
PURCHASE ORDER
Phone 9734075243 Fax 3248764

The following number must appear on all related

correspondence, shipping papers, and invoices:
P.O. NUMBER: [001]

TO:
Mr. Anuj Arora SHIP TO:
Raymond Ltd. Style Garment Distributors
Mahindra Towers, 1445 kailash Street
2 nd floor,B Wing Gurgaon-122010,Haryana
Pandurang Budhkar Marg India
Phone 9734075243 Fax 3248764
Worli,Mumbai-400018.
India
Phone :+91 22 4034 9999

P.O. DATE DELIVERY DATE SHIPPED VIA F.O.B. POINT TERMS

NOV 19,2010 NOV 28,2010 GROUND RECEIVING DOCK NET30

PRICE PER
QTY MATERIAL# DESCRIPTION TOTAL
METER

40 (16250 m) ABC123 650 65000000

fabrics for mid-range suits rolls
20 (8820000m) EFG321 882 176400000
Black and white classic design in polywool blends fabric
rolls

SUBTOTAL 241400000

SALES TAX 6.875

SHIPPING & HANDLING Included

OTHER N/A

TOTAL 1901025000

Authorized by: Mr. Sandeep Malik

Date:NOV 17,2010
 SALES ORDER
SALES ORDER
ORDER# 98765

THE COMPLETE MAN

BILL TO: SHIP TO:

Style Garment Distributors Style Garment Distributors
Attention:Mr.Sandeep Malik 1445 kailash Street
1445 kailash Street Gurgaon-122010,Haryana
Gurgaon-122010,Haryana India
India Phone 9734075243 Fax 3248764
Phone 9734075243 Fax 3248764

CUSTOMER P.O. DATE REQUESTED

SHIPPED VIA F.O.B. POINT TERMS
PO# DELIVERY DATE

001 NOV 19,2010 NOV 28,2010 GROUND RECEIVING DOCK NET30

PRICE PER
QTY MATERIAL# DESCRIPTION TOTAL
METER

40 (16250 m) ABC123 650 65000000

fabrics for mid-range suits rolls
20 (8820000m) EFG321 882 176400000
Black and white classic design in polywool blends fabric
rolls

SUBTOTAL 241400000

SALES TAX 6.875

SHIPPING & HANDLING Included

OTHER N/A

TOTAL 1901025000

Received By: DATE :

Packed By: DATE :
Shipped By: DATE :
Invoiced By: DATE :
Payment Received By: DATE:
 PICKING DOCCUMENT
PICKING
THE COMPLETE MAN
DOCUMENT
CUSTOMER P.O. NUMBER:
[001]

BILL TO: SHIP TO:

Style Garment Distributors Style Garment Distributors
Attention:Mr.Sandeep Malik 1445 kailash Street
1445 kailash Street Gurgaon-122010,Haryana
Gurgaon-122010,Haryana India
India Phone 9734075243 Fax 3248764
Phone 9734075243 Fax 3248764

REQUESTED DELIVERY
P.O. DATE SHIPPED VIA F.O.B. POINT TERMS
DATE

NOV 19,2010 NOV 28,2010 GROUND RECEIVING DOCK NET30

STORAGE QUANTITY STORAGE

MATERIAL DESCRIPTION QUANTITY ORDERED
LOCATION PACKED LOCATION

40 (16250 m) 30 40 30
fabrics for mid-range suits rolls
20 (8820000m) 30 20 30
Black and white classic design in polywool blends
fabric rolls

Picked By: Mr. ABC Date:

 PACKING LIST
PACKING LIST

THE COMPLETE MAN

Raymond Ltd.
Mahindra Towers,
2nd floor,B Wing
Pandurang Budhkar Marg
Worli,Mumbai-400018.
India
Phone :+91 22 4034 9999

CUSTOMER CUSTOMER
ORDER DATE CUSTOMER PO # ORDER NUMBER
CONTACT NUMBER SHIPPED VIA

NOV 19,2010 Mr. Sandeep Malik 654321 001 98765 GROUND

DATE PACKED PACKED BY CHECKED BY SHIP DATE SALES REP

NOV 22,2010 TJ TJ 23 NOV,2010 Mr.Anuj Arora

SHIP TO: BILL TO:

Style Garment Distributors Style Garment Distributors
1445 kailash Street Attention:Mr.Sandeep Malik
Gurgaon-122010,Haryana 1445 kailash Street
India Gurgaon-122010,Haryana
Phone 9734075243 Fax 3248764 India
Phone 9734075243 Fax 3248764
 INVOICE
INVOICE
THE COMPLETE MAN DATE: 24-11-2010
Raymo nd Ltd INVOICE # [123456]
Mahindra To we rs Customer ID [123]
2nd floor,B wing
Pandurag Bu dhkar Marg
Worli-Mumb ai 400018

BILL TO: SHIP TO (if different):

Style Garme nt Distrib utors
Atte ntion :Mr. Sande e p Malik
1445,kailash stre e t
Gurgaon-122010,Haryana
Phn-9734075243

SALESPERSON P.O. # OUR ORDER SHIP VIA F.O.B. TERMS

Mr.Anuj 1 28-05-2170 GROUND RECEIVING DOC NET 30

ITEM # DESCRIPTION QTY PER METER TOTAL

[2345678] fab rics for mid -range suits 40(16250m) 650.00 65000000
[2342342] Black and white classic d e sign in p olywoo l b le nds 20(8820000m) 882.00 176400000
-
-
-
-
-
-
-
[42] SUBTOTAL $ 24,14,00,000.00
Other Comments or Special Instructions TAX RATE 6.875%
1. Total payme nt due in 30 days TAX $ 1,65,96,250.00
2. Ple ase include the invoice nu mb e r on your che ck S &H $ -
OTHER $ -
TOTAL $ 25,79,96,250.00

Make all che cks payab le to

RAYMONDS LTD
Thank You For Your Business!