However, there are some drawbacks which tend to be the barriers in industrial setup like political, social, cultural, legal, environmental etc. And many other factors affects the setting up of manufacturing unit in India. The research proposal is made in such a way that it shows the setting up of textile plant in India with an example of textile companies that had two units in India in two different locations and wanted to set up the third unit somewhere in west corner of India.
The proposal with the challenges that they faced and opportunities that they get while setting up of the textile plant.
Management Summary In this research proposal, an example is taken of Affiliate Textile limited wanted to set p a poly condensation plant of 216,000 tone/ year. Affiliate India currently operates a 68,1 50 tones/year POP/polypropylene (UP) yarn unit at Silva. The company has decided to source around 85% of feedstock purified Therapeutic acid (PTA) locally and import the rest of it.
For the secondary raw material the company plan to source Nonetheless glycol (MEG) from the Middle East. Affiliate is also looking to export its POP.
Affiliate currently produces POP from outsourced polyester chips. It will continue to buy bright chips but not semi-dull chips as this is produced at the new plant in Dashed. It is very important for us to know the factor associated with respect to choose the location . This make the more cautious & preventive, when company initially has received a big setback when the third plant which is now in Dashed, Branch was originally planned in Silva however due to court stays order they decided to leave their half constructed plant and shift their plant to the area of Gujarat .
The study deals with the impact of improving the past mistake. The project deals with the capital structure, the advantage they received, loss incurred, the challenges they aced as they planned their work with reference to the previous location that they decided, advantage that they get after choosing a new location and some government initiative. The study helps us to the various points which are essential in setting up of plant in any sectors not only for textile but also for various other manufacturing sectors like Pharmaceuticals, petroleum companies etc.
The study helps to know about the availability of the resources that our present with the company or the option left out with them by considering the various point keeping in their mind like their budget while carrying out the process. The research is being done in such a way that it shows the view of the team of Affiliate India Ltd while carrying out their hardship in making a successful project. Problem Statement The Indian Textile Industry is one of the leading textile industry in the world.
Apart from having the basic necessities of life, its role in Indian economy is very significant. Indian textile industry contribute about 14% of Industry and 4% of Indian GAP. Leninist of the contribution done from textile industry there are serious strong weakness that is leading to the downfall of industry. The major reason came to know bout the downfall were technological, labor laws, China as a new competitor but the most important is the setting up of a new textile plant which plays an important role in the development of the textile industry.
Objectives The objectives of the research proposal are as follow:- 1. Examine the factors suitable for setting up their textile plant 2. Identify the specific action required to take advantages off good governance 3. The setting of the plant needs lots of ability, experience, courage, finance vision etc. Scope of the study The scope of the study is limited with respect to the setting up of a textile plant in India. To know about how the company struggles or gain advantage in terms of setting up of a new plant.
To understand the problems that they faced while setting up a new textile plant not only in textile but also in various other sectors and who the problem is solved that make their strength Significance of the study The significance of a research project summarizes what is to be achieved by the study. The Study aims to promote pedestrian planning in the plan making and development process and establish the prima facie feasibility of the pedestrian planning proposals to achieve the following objectives: How to set a textile or any there with respect to the factor associated with it.
Find other alternative that we would be easy to carry out daily routine. To study well about both micro ¯o environment. To learn &understand various government policy and can take advantage of it. Research with respect to the technology available in the market or technological upgrading . Hypothesis Hypothesis is defined as “a proposition that can be tested for association or causality against empirical evidence” (Kari 2011). Based on the theoretical study carried out in section 2. 2 the mentioned advantages and disadvantages above I have developed y hypothesis below.
This led to the hypothesis: Hypothesis 1 Consider that there is a difference in the law of two state governments. Hypothesis 2:- The factors are suitable to all kind of textile industry. Literature Review Affiliate Limited do stated the setting up of their unit in Silva but due to the stay order received by the court and the case is still pending in the court the company decided to leave the plant of Silva and shift to another destination name Branch which is almost 200 kilometer from the current plant location and it is completely in another state or province in India.
The company decides to look for the place which is convenient to them in terms of following factors like raw material availability, source of power, labor, means of transportation and other factor like water, climate, government policies etc. They tried to work on this solution by taking consideration in to each and every factor and find some effective solution, so the first conceptual framework deals with all those factors which have to be taken care while setting up of a new unit.
The second conceptual framework deals with about the location of the plant. The country like India is the seven largest countries in the world tit a different climate; culture varies from state to state, state government regulation, mode of transportation etc. It’s very difficult for the employer to take decision of putting the textile plant in which state which is better for their business. Among 28 states and 7 union territories. Affiliate Textile India decided to go to the state which is at the west of India named Gujarat “the Jewel of west of India “.
The state has the best transportation system, with the best power, water and gas supply in the country. The advantage the company received is the ‘single window system’, he cheap land, labors and electricity. The single window system is the system where the applicant submits the regulatory documents at single location or single entity Such documents are typically customs declarations, applications for import/ export permits, and other supporting documents such as certificates of origin and trading invoices.
The main value proposition for having a single window for a country or economy is to increase the efficiency through time and cost savings for traders in their dealings with government authorities for obtaining the relevant clearance and remit. The company would receive electricity at $0. 33/Watt Since Government of Gujarat announced its solar policy in VIGILS (Vibrant Gujarat Global Investors Summit) 2009.
The state government imitative like Scheme for Integrated Textile Parks (SITS) to provide the industry with world-class infrastructure facilities. For setting up their textile units. The scheme would facilitate textile units to meet International Environmental and social standards. The company is classified under SEE therefore the company is exempted from central taxes, income-tax for 10 years, excise and arrive tax.
So the third conceptual framework deals with the advantage that Affiliate limited received. While setting up of the textile plant the main question arises that? When the majority of textiles industries are near to big cities like Metadata, Surer and Abroad than why did they have their plant in Dashed, Branch. The fourth conceptual framework doubt the plant location that they could have located near to Metadata where they could have found all the better resources better facilities over there.
The research tells that even if the Capital city has much better facilities hey preferred this place because for the two reason the first reason is Purified Theatrical Acid (PTA) and Mono Ethylene Glycol (MEG) are the major chemical required in POP (Polyester Oriented Yarn) industries and for the supply of raw material is supplied by Reliance chemical Ltd , they also have their plant in Dashed therefore the cost of transportation is reduced because both the plants are located very close to each other.
The second reason of setting up the plant is that Metadata is an land lock city and therefore the nearest port that Affiliate Limited could find is Dashed port and as this unit is classified under SEE therefore the majority of the finished products are exported. Methodology This section presents an overview of the methods topple this methods in the study. Areas covered include the research, sample and sampling techniques, design, population ,data collection and analysis. For any methodology of the research proposal there are two kinds of studies I. E. Qualitative Methodology and Quantitative Methodology.
A qualitative research study is that part of research methodology in which one gets insights about people’s experience, behavior and attitudes (Dawson, 002). A quantitative research study is that part of research methodology in which one can certainly generate statistical proof through methods like a survey research or quantitative questionnaires (Dawson, 2002). So for this proposal I have used both Quantitative and Qualitative analysis Research Design The study involves the evaluation of the role of the companies while setting up their textile plants. The research shows the challenge face by the company while setting up of a plant.