Summer Training Report on Market Potential of Comber Noil in Punjab and Himachal Pradesh Prepared For: Vardhman Textiles Limited ACKNOWLEDGEMENTS A project is a combination of efforts, ideas, views and suggestions of several people. This project report gives me the opportunity to thank those who have contributed to my learning, knowledge and experience during the implementation of this project. I am thankful to Mr. I. J. Dhuria, Corporate General Manager, who gave me the opportunity to complete my summer training in an esteemed organization like Vardhman. I would like to convey my gratitude to Mr.
Vikram Batra, my project guide, for his valuable insights and guidance, which added meaning and depth to my learning. Last but not the least; I thank the management at the Corporate Office, Vardhman, for the opportunity, support and resources extended to me. The values, the culture and the ethos of Vardhman are inspiring and shall remain etched in my memory for a long time. Palak Trehan Table of Contents Content Page No. Executive summary5 Introduction to textile industry 8 Swot analysis of textile industry 15 Basic concept of textile industry 16 Scope 22
Managerial Brief23 Company profile24 Swot analysis of vardhman group41 Objectives of research42 Research Design44 Findings and Data analysis of traders48 Data Analysis of Consumers58 Annexure 1 71 Annexure 2 76 Recommandations 81 Limitations 82 Executive Summary 1. Title: To find the market potential of Comber Noil in Punjab and Himachal Pradesh. 2. Total Duration: 8 weeks (15th June to 09th July 2012) Fieldwork Duration: 8 Days 3. Objectives: (A) Traders 1.
To find the market potential of Comber Noil in Punjab and Himachal Pradesh. Sub Objective: To find the market size and main markets of Comber Noil in both the states. 2. To study the various commercial terms followed by the trading houses with the suppliers and customers. 3. To find the relative service level of Vardhman as compared to its competitors in the Comber business. Sub-objective 3 (a): To find the relative quality of Vardhman’s Comber. Sub-objective 3 (b): To find the relative responsiveness of Vardhman. Sub-objective 3 (c): To find the relative complaint handling of Vardhman.
Sub-objective 3 (d): To find the relative pricing of Vardhman’s Comber. Sub-objective 3 (e): To find the relative packaging of Vardhman’s Comber. Sub-objective 3 (f): To find the relative delivery time of Vardhman’s Comber. Sub-objective 3 (g): To find the relative accounting practices of Vardhman’s Comber. 4. To find better invoicing practise 5. To find the problems faced by traders during the trade of comber. 6. To find the suggestions of traders for the suppliers. (B) Consumers 1. To find the market potential of Comber Noil in Punjab and Himachal Pradesh.
Sub Objective 1(a) To find the market size of Comber Noil in both the states. Sub Objective 1(b): To find the number of Open-End machines in both the States. Sub Objective 1(c): To find the major count of Open-End Yarn produced. Sub Objective 1(d): To find the major blend of raw material used for the production of Open-End Yarn. 2. To find the main source of raw material for Open-End Yarn manufacturers. 3. To study the various commercial terms followed by the consumers with the suppliers. 4. To find the relative service level of Vardhman as compared to its competitors in the Comber business.
Sub-objective 4 (a): To find the relative quality of Vardhman’s Comber. Sub-objective 4 (b): To find the relative responsiveness of Vardhman. Sub-objective 4 (c): To find the relative complaint handling of Vardhman. Sub-objective 4 (d): To find the relative pricing of Vardhman’s Comber. Sub-objective 4 (e): To find the relative packaging of Vardhman’s Comber. Sub-objective 4 (f): To find the relative delivery time of Vardhman’s Comber. Sub-objective 4 (g): To find the relative accounting practices of Vardhman’s Comber. 5. To find better invoicing practise 6.
To find the problems faced by manufactures during the purchase of comber. 7. To find the suggestions of traders for the suppliers. 4. Data Collection Design Survey Method: Office interview Questionnaire Design: Semi Structured & Semi Disguised 5. Sampling Design Sample Size: 18 Traders = 6 and Consumers = 12 Sampling Procedure: Area Sampling Method 6. Field Work Design Duration: 8 Days No. of locations covered: Punjab (7) and Himachal Pradesh (2) 7. Sampling Profile: |Place |No. of respondents | |Punjab |16 | H. P. |2 | 8. Key Findings: ? The Market size for Comber Noil in Punjab and Himachal Pradesh is 250 Tons per day. (approx. ) ? The Major markets for Comber are Lalru, Samana, DeraBassi and Nalagarh. ? There are 300 (approx. ) Open End machines in Punjab and Himachal Pradesh. ? All the dealings in this industry are done against advance payments. ? Customers are highly satisfied with the services of Vardhman (Responsiveness, delivery time and accounting practices) ? ‘10s Open End Yarn’ is mainly produced in this industry. For manufacturing of 10s Open End Yarn, most common ratio of raw material mixing is 60% Comber Noil : 20% Cotton : 20% Flat. 1. Introduction to Textile Industry 1. 1Textile: Meaning The word textile mean for any artefact made by weaving or felting or knitting or crocheting natural or synthetic fibres. The textile industry (also known in the United Kingdom and Australia as the Rag Trade) is a term used for industries primarily concerned with the design or manufacture of clothing as well as the distribution and use of textiles. 1. 2Textile industry: History of growth
New innovations in clothing production, manufacture and design came during the Industrial Revolution – these new wheels, looms, and spinning processes changed clothing manufacture forever. The ‘rag trade’, as it is referred to in the UK and Australia is the manufacture, trade and distribution of textiles. There were various stages – from a historical perspective – where the textile industry evolved from being a domestic small-scale industry, to the status of supremacy it currently holds. The ‘cottage stage’ was the first stage in its history where textiles were produced on a domestic basis.
During this period cloth was made from materials including wool, flax and cotton. The material depended on the area where the cloth was being produced, and the time they were being made. In the later half of the medieval period a variety of processes and innovations were implemented for the purpose of making clothing during this time. These processes were dependent on the material being used, but there were three basic steps commonly employed in making clothing. These steps included preparing material fibers for the purpose of spinning, knitting and weaving.
During the Industrial Revolution, new machines such as spinning wheels and handlooms came into the picture. Making clothing material quickly became an organized industry – as compared to the domesticated activity it had been associated with before. A number of new innovations led to the industrialization of the textile industry in Great Britain. Clothing manufactured during the Industrial Revolution formed a big part of the exports made by Great Britain. They accounted for almost 25% of the total exports made at that time, doubling in the period between 1701 and 1770.
The centre of the cotton industry in Great Britain was Lancashire – and the amount exported from 1701 to 1770 had grown ten times. However, wool was the major export item at this point of time. Today, modern techniques, electronics and innovation have led to a competitive, low-priced textile industry offering almost any type of cloth or design a person could desire. With its low cost labour base, China has come to dominate the global textile industry. 1. 3 Indian textile industry: The Indian textile industry is one of the oldest and most significant industries in the country.
It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector in the country. Moreover, it provides employment to over 35 million people. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34. 6 billion to US$ 60 billion by 2012.
It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. India's textile exports have shot up from US$ 19. 14 billion in 2006-07 to US$ 22. 13 billion in 2007-08, registering a growth of over 15 per cent 1. 4 Textile Industry Report Indian Textile Industry occupies a very important place in the economic life of India. It contributes to the Indian economy through generation of employment output and export earnings. The contribution of textile industry to amount 15% the total output generation by the industrial sector.
Indian industry’s contribution to GDP is 4%. It is main source of foreign earnings. It contributes 16. 63%. It has shown potential being one of the largest employments generating industry on direct basis. Indian textile Industry is providing employment to more than 35 million people. 1. 5Growth of Indian Textile Industry Indian economy is growing rapidly during the fiscal year 2006-2007 posting a growth rate of 9. 4%. Indian has been performing significantly in last three years where as its average yearly rate of growth has been estimated to 8%.
In present time, the organized retail sector has been able to tap a market of around US $8. 2 billion which is projected to increase US $25 b by 2010. The growth rate in money value is expected 16% and it will reach the level of $115 b (export $55 b and domestic market $60 b) by 2012. The clothing and apparel subsector are expected to grow at a rate of 16% in volume term and 21% in value term by 2012. The investment in textile sector in past years increased from Rs. 15032 Cr. in 2005-2006 and Rs. 79100 Cr. in 2006-2007. It is expected to reach Rs. 150600 Cr. by 2012.
This enhanced investment will generate 17. 37 million jobs by 2012(12. 02 m direct and 5. 35 m indirect jobs). Indian textile industry is an export intensive Industry and about 1/3 of its total production is exported in same form or other. The clothing sector is an export intensive subsector and contributes about 40-50% to total textile exports. It is low investment and highly labor intensive industry. On an average investment Rs. 1lakh in the subsector creates 6-8 jobs. 1. 6 SEGMENTS OF INDIAN TEXTILE INDUSTRY 1. Woollen Textile 2. Cotton Textiles 3. Silk Textiles 4. Readymade Garments . Jute And Coir 6. Hand-Crafted Textile Like Carpets 7. Man Made Textiles Indian textile industry in a very short span had made a distinct position globally, alluring the globe towards the ‘World of Indian textiles’ It’s not just the present that is shinning like a bright start but also the future, as the textile export market of India is expected to reach a high of $50 billion by 2010. This will eventually make a profit by 300%. In order to attain this target Indian textile industry has already started improving their design skills, including a combination of various fibres.
Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon. Most of the international brands like Marks & Spencer, JC penny, Gap have started procuring most of their fabrics from India. In fact, Wal-Mart, who had procured textile worth $ 200 million last year, intends to procure $ 3 billion worth of textile this year. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners.
Strengths of Indian Textile Industry are as follows - ? Huge textile production capacity ? Efficient multi-fibre raw material manufacturing capacity ? Large pool of skilled and cheap work force ? Entrepreneurial skills ? Huge export potential ? Large domestic market ? Very low import content ? Flexible textile manufacturing systems Weaknesses of Indian Textile Industry are as follows – o Increased global competition in the post 2005 trade regime under WTO o Imports of cheap textiles from other Asian neighbors countries like China, Bangladesh. Use of outdated manufacturing technology. o Poor supply chain management. o High production cost with respect to other Asian competitors particularly Power Cost o Huge unorganized and decentralized sector. 1. 8 Indian Textile Industry: Changing Profile The Indian textile industry has embarked on an ambitious programme of modernization and technological up gradation in recent years to transform the textile sector from a state of low-technology level to a producer of high-technology products. Technological up gradation in India has resulted in - A shift from commodity-based trading to high value-added fashion garments. o Vertical integration and horizontal consolidation of production process leading to lowering of manufacturing costs. o Improved productivity gains. o Efficient supply chain management. o Development of economies of scale. Problems faced by Indian textile industry • The Indian textile Industry had been plagued by obsolescence, skilled manpower problems, Govt. policies, raw material vagaries and lack of modernization and volume production facilities at one place. The post fabric stage processing technology has also been lagging but is now coming up fast with infusion of textile processing technology. • SSI firms perform the majority of weaving and processing operations. The level of weaving technology is of lower order and knitting units don't possess capacity to perform dyeing, processing and finishing to international standards. 1. 9 Current scenario • The global economy is passing through recession. The international trade in textiles and clothing reached to $583 bn in 2007, which is expected to decline by $20-25 bn in 2008. The Indian textile industry exports about 40% of its output, of this about 60% is destined to USA and EU markets. • It is expected that the textile and clothing exports from India may decline by 10-15%, although countries like China, Bangladesh and Vietnam are expected to record growth in their textile exports • Steep rise in MSP of cotton and incentives on export of cotton have seriously impacted the textile industry • During the past few years, Indian textile industry has attracted huge investments. As a result, the capacity in the entire chain has expanded beyond the current demand.
In the context of declining economic activities, even the domestic market is not able to absorb the surplus generated by the industry so, it is tough time for the industry. The industry therefore has to strengthen its competitiveness to realize the Vision of $50bn textile exports set out in the National Textile Policy 2000. 1. 10 Global Textile Scenario According to stats textile markets process a worth of more than $479 billion in 2005. The global trade of textile presently is worth of more than $600 billion. In a more globalization environment the industry has faced high competition as well as opportunity.
It is predicated that global textile production will grow by 27% between 2002 and 2011 and Asian region will largely contribute in this regard. USA has largest textile and apparel market in world which amounts $200 b. in 2006 about 45% of USA market demand was met with imported products which accounts for 20% of the overall global textile and apparel imports TEXTILE VALUE CHAIN SWOT Analysis Strengths: - Weaknesses:- Opportunities: Threats: Basic concepts Fibre It is untwisted short filament (thread or strand) which is used for making yarn or fabric. Yarn
It is long continuous length of interlocking fibres suitable for use in the production of textile. Fabric It is finished product of processes of spinning, weaving or Knitting which is used for making various garments apparels and other consumer products etc. Spinning It is the process of creating of yarn or thread, rope from various raw fibres (materials) viz. natural fibre or manmade. Dying It is process in which a natural or synthetic dye is use to colour yarn or fabric. Weaving It is an ancient textile art and craft that involves placing the sets of thread or yarn Made fibre called the warp and weft of the loom.
It is most frequently method for fabric construction. Shuttle A Shuttle in weaving is device which is used with a loom that is thrown or past back & forth between thread of warp to weave weft. Loom Loom is a machine used for weaving fabric. Knitting It is the second most frequently used method of fabric construction. This method is developed due to following reasons:- • Growth in consumer demand • Wrinkle- resistant • Stretchable • Fitting fabrics. It is used for sport wear causal wearing apparel hosiery underwear swatters slacks. Fabric construction
Fabric construction involves various processes techniques, steps right from raw material to finished product. The most significant and first most factor in fabric construction is raw material then spinning which involves various steps to make yarn. After yarn manufacturing there are techniques of knitting and weaving to make fabric. Then there are other subsidiaries processes like dying, texturizing, designing, braiding. Sequences of fabric construction i. e. from raw material finished to goods. 1. Fibre which is either spun (twisted) into yarn or else directly compressed into fabric. . Yarn which is woven, knitted or otherwise made in fabric. 3. Fabric which was various finishing process becomes finished consumers goods. In textile industry fiber is the raw material. Classification of fibers:- 1. Natural: - That occurs naturally. • Vegetable e. g. cotton, linen, jute, coir. • Animal e. g. wool, silk, hair. • Mineral e. g. Asbestos 2. Man made: - which are derived from various sources e. g. rayon, polyester, acrylic. Spinning Techniques 1. Open-end spinning:- The open –end spinning process begins with the carded sliver (combed sliver is not used). . Self-twist spinning:- Pairs of roving’s are drawn out on a succession of drafting rollers, the last set of which reciprocates axially causing a rolling action of the stands as they emerge, it is for wool and wool like fibers. 3. Friction spinning:- This process utilizes a current of air to transport the carded fibers to longituanal nip region of the two drums. 4. Electrostatic spinning:- In this technique under carefully controlled conditions of humidity, it is possible to separate short from long once in an electrostatic field.
The technique utilizes a non uniform electrostatic field I which the gradient between electrodes varies at curved rate from minimum to maximum intensity. 5. Air jets spinning:- It is a potential pneumatic process that produces yarn directly from high quality drawing sliver of wool manmade staple or manmade cotton staple blend. THE SPINNING PROCESS (Manufacturing of Yarn) Spinning is the process of converting fibers into yarns. This process consists of mainly six stages. This process is almost same for all types of yarns. Just the fibers are mixed according to the blended desired in different type of yarns.
Blow room Carding section Combing section Draw frame Speed frame Ring frame BLOW ROOM: The followings tasks are performed in the blow room section: ? Opening the material ? Cleaning the material and removing the impurities ? Preparing the material for further process CARDING SECTION: The following tasks are performed in the carding section: ? Further opening and cleaning of the fiber ? Individualization of the material i. e. Removal of nap ? Sliver formation ? Stretching of sliver in rollers COMBING SECTION: The following tasks are performed in the combing section: Combing of lap is done to make the convenient package with unilap machine ? Voil i. e. Rashes and other undesirable material is removed DRAW FRAME: The following tasks are performed in the draw frame section: ? Drawing and stretching of material so as to make the weight/length even ? Mixing of slivers of both fibers in case of p/c yarn SPEED FRAME : The following tasks are performed in the speed frame section: ? Fiber roves are formed using the simplex machine. RING FRAME: The following tasks are performed in ring frame section: ? Roving are converted into yarn Yarn is rolled in the bobbin which is inserted into the spindles. Spindles process is completed at this stage and following tasks are performed thereafter. ? Winding of the yarn is done through auto cones or manual winders. ? Yarn is conditioned and moisture content is maintained through xorella to maintain its flexibility and durability. ? Packing of yarn is done in 42-50 kg cartons. Now, the yarn is ready to sell in the market. Yarn to fabric There mainly two technologies for fabric construction from yarn:- Weaving and knitting 1. Weaving:-
It is a most frequently used method of fabric construction Preparation for weaving • Shedding: - raising specific wrap yarns by means of harness or heddle frame. • Picking:-Inserting , filling yarns through the shed • Beating up (battening):- It gives the fabric a firm, compact, construction 2. Knitting:- It is second most frequently used method of fabric construction in which wrinkle resistant stretchable and fitting fabrics are made. In the spinning process there is a waste generation at each step. Different types of wastes are generated. These are: ?
Blow Room Dropping ? Card Dropping ? Comber Noil ? Flat ? Kitty ? Sweep Out of these, Comber is considered to be the most superior waste. Definition of Comber Noil In order to produce cotton yarn, the raw material (raw cotton) must go through several processes like blowing, carding, drawing and combing as shown earlier. In this combing process, the machine will diversify and separate the cotton fibre between long and short. The long ones will be produced further as yarn, while the short ones which is out of standard yarn production, is then called as cotton comber noils.
Vardhman generates 55 tons comber noil daily. It has 12% share in the market of Punjab and Himachal Pradesh. Properties of Comber Noil Comber Noil is the best in all cotton wastes as far as quality is concerned because it does not have any trash content in it. Moreover staple length is better than other wastes. Its %age share in market in terms of quantity is around 55% i. e. it is major selling wastes for all ring yarn manufacturers. It is major raw material for Open End industry since it comprise around 70% of their total raw material mixing. Differences from cotton
Comber Noil is not very different from Cotton. Major difference is staple length. Staple length is the length of single fibre in cotton. Staple of cotton ranges from 24 – 35 mm whereas in Comber Noil it ranges from 17 – 21 mm. Since coarse counts are produced in Open-End industry, Comber Noil is the most suited for them. Uses of Comber Noil Comber Noil is a waste for spinning units which do not have any capacity of Open End Yarn production and acts as a raw material for Open End industry. It is used by Open End Yarn manufacturers who produce fine counts (10s and above).
Comber Noil is also used in paper industry for making currency notes and some of the units making surgical cotton are also using comber noil. Main end product of comber noil is 10s open end yarn which is mainly used in manufacturing of bed sheets, curtains, carpets, and other such household utility products. Scope The expected use this report is to know the market potential of Comber Noil in Punjab and H. P. Moreover it studies the market size of Comber and the major markets where it is consumed for the production of Open End Yarn. The esearch is meant to obtain information regarding the business practises among the parties, dealing with Comber. Further the study is done to show the service levels of Vardhman related to Comber. Thus it would enable the manager to rethink the business strategy, if at all it needs a change. It would also give the manager the insights about their customers’ perspective of Vardhman on the whole. The project was assigned to me as a Management Trainee at Vardhman Textiles Limited as part of the Summer Internship Programme of MBA course of Punjab agricultural university Ludhiana. Managerial Brief
Vardhman is the leading producer of yarn in India. Comber Noil is one of the wastes that is generated during the spinning process. Vardhman sells the waste in the market to traders and manufactures of Open-End Yarn. The industry is quite unorganised and the prices of Comber are volatile. The manager wants me to study the market potential of Comber in two states viz. Punjab and Himachal Pradesh and to know the perception of the customers of Comber about various service levels of Vardhman. The managerial brief helped me to understand the purpose of survey and define the research objectives.
ESTABLISHMENT OF VARDHMAN The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the “MANCHESTER OF INDIA”. Within the precincts of this city is located the Corporate Headquarters of the Vardhman Group, a household name in Northern India has carved out a niche for itself in textile industry. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan Chand Oswal, has today blossomed into one of the largest Textile Business houses in India. Father of present Chairman cum managing director, SH. S. P. OSWAL. Introduction
The Vardhman Group is one of the largest textile houses in the country. The group has the sizeable presence in Spinning, Weaving, Sewing Threads, Fabrics Processing, Acrylic Fiber manufacturing and Alloy Steels. In 1965, at the time when India was awakening to the need for industrial investment, Ludhiana, a bustling town in the fertile Malwa belt of Punjab, witnessed the establishment of Vardhman which started as a 14,000 spindle spinning unit under the entrepreneurship of Late Lala Rattan Chand Oswal. Vardhman has grown into full – fledged textile group, with a range of textile products stretching from fiber to fabric.
Over the years, Vardhman has expanded its spinning capacities besides adding new business. The Group is, now, one of the largest textile con glom rate in the country with the turnover of about Rs. 3636 crores(2010-11). The group has also diversified into yarn processing, weaving, sewing thread, fabric processing, acrylic fibre manufacturing and into special/ alloy steels. Today, close to 23000 people are the organisation’s most important assets-its human capital. The group presently has 22 manufacturing locations, spread across 5 states, with an installed capacity of 7. 5 lacs spindles (expandable to 8. 5 lacs by the year 2009-10), 3408 rotors, 810 air jet looms(expandable to 900 by the year 2009-10), 33 tons per day processing facility for sewing thread, 63. 5 metric tons per day yarns & fibre dyeing capacity, 82 million meters/annum fabric processing facilities, 18000 tons per annum production capacity for acrylic fibre and 100000 tons per annum of steel capacity. The company also has strong presence in various countries like Japan, Honk Kong, Korea, UK and EU in addition to the domestic market.
Vardhman is earning laurels by exporting yarn and fabrics of international quality to several countries in the west, Africa and the Far East, earning valuable foreign currency for the country. Vardhman is the first organization among the textile industries to receive the ISO 9001/ISO 14000 quality awards in India. MISSION STATEMENT [pic] Vardhman aims to be the world class Textile organization producing diverse range of products for the global Textile market. Vardhman seeks to achieve Customer delight through excellence in manufacturing and customer service Based on creative combination of state of the art technology and human resources.
Vardhman is committed to be a responsible corporate citizen. The mission of the Vardhman Group can be summed up in a single line i. e. “Rooted in Values, Creating World Class Textiles”. Logo of Vardhman Group The “Flame” signifies growth i. e. growth of the company along with the growth of each and every individual associated with it whether he/she is a worker , a white collar employee, a shareholder or a customer. The “Stick” symbolizes cotton that is the basic raw material of the core product of Vardhman. The “V” stands for the Vardhman Group. GROUP UNITS 1. Vardhman Textiles Ltd. Unit |Location |Product Range | |Auro Spinning Mills |Baddi |Cotton blended, Fibre Dyed yarn | |Auro Dyeing Mills |Baddi |Yarns and Fibre dyeing | |Auro Weaving Mills |Baddi |Grey Pop line, Sheeting and Shirting | |Auro Textile Mills |Baddi |Fabric processing | |Vardhman Spinning Mill |Baddi |Cotton yarns | |Mahavir Spinning Mills (GMYU) |Hoshiarpur |Cotton Blended, Acrylic, Yarn | |Arihant Spinning Mills |Malerkotla |Cotton, Blended, Melange yarns | |Arisht Spinning Mills |Baddi |Cotton, Blended yarns | |Anant Spinning Mills |Mandideep |Cotton, Blended yarns | |Vardhman Special Steel |Ludhiana |Special steel, Alloy steel, Low carbon steel | |Vardhman Yarn |Satlapur |Cotton, Blended Yarn | |Vardhman Fabric |Budhni |Fabric Processing | 2. VMT Spinning Co. Ltd. |Unit |Location |Product Range | |Vardhman Spinning Co. |Baddi |Cotton yarns | 3. Vardhman Acrylics Ltd Unit |Location |Product Range | |Vardhman Acrylic Ltd |Bharuch (Guj) |Acrylic fibre | 4. Vardhman Threads Ltd |Unit |Location |Product Range | |Vardhman Threads Ltd |Baddi |Industrial Threads | 1 5. Vardhman Yarns & Threads Ltd. Unit |Location |Product Range | |I |Hosiharpur |Sewing Thread | |II |Ludhiana |Sewing Thread | |III |Baddi |Sewing Thread | |IV |Perudurai |Sewing Thread | [pic] Portfolio Business Wise Turnover for the financial Year 2008-09 Actual 2008-09 |Group Total( Rs crore) |USD Million |% Share | |Yarn |1513 |329 |47% | |Fabric |689 |150 |22% | |Sewing Thread |337 |73 |11% | |Steel |327 |71 |10% | |Power plant |66 |14 |2% | |Fibre |254 |55 |8% | |Total |3186 |693 |100% | Yarns Yarn Manufacturing is the major activity of the group accounting for 47 percent of the group turnover.
Vardhman is virtually a supermarket of yarns, producing the widest range of cotton, synthetics and blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is the market leader in India. The group has twenty one production plants with a total capacity of over 8 lacs spindles, spread all over the country. In many of the yarn market segments, Vardhman holds the largest market share. Vardhman is also the largest exporters of yarn from India, exporting yarns worth more than USD 150 million. Sewing Thread Vardhman is the second largest producer of sewing thread in the country. The sewing thread manufacturing capacity is being expanded from 17 tons per day to 33 tons per day in its sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 11 percent of the group turnover. Fabrics
The group has created state-of-the-art fabric weaving and processing facilities in its plant at Baddi, Northern India. The group has installed 900 shuttle less looms and a fabric processing capacity of 90 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics business contributes 22 percent to the group turnover. Fibre The group has set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in collaboration with Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000 tons per annum. Fibre contributes 8 percent to the total turnover of the group. Steel The Group is also present in upper-end of the steel industry.
The group has manufacturing capacity of 100000 tons of special and alloy steel. The group supplies its steel products to some of the most stringent quality steel buyers like Maruti and Telco. It contributes 10 percent to the total turnover of the group. The Vardhman group comprises of three listed and two unlisted companies- ? Listed Companies: • Vardhman Textiles Limited (formerly Mahavir Spinning Mills Limited) • Vardhman Acrylics Limited • Vardhman Holdings Limited (Formerly Vardhman Spinning & General Mills Limited) ? Unlisted Companies: • VMT Spinning Company Limited • Vardhman Investment Limited • Vardhman Yarn and Threads Limited CULTURE AND ITS ASPECTS [pic] • Professionalism • System Approach Commitment To Quality • Excellence With Economy • Cost Consciousness • Human Resource Regarded As Valuable Asset • Emphasis On Teaching and Development • Preference To Human Value • Management By Participation • Open Door Policy In Sharing Ideas And Suggestions • Group Synergy • Emphasis on effective communication and coordination • Managerial strength and acceptance to change • Cordial Environment • Customer Focus • Honour And Reward [pic] GROUP PHILOSOPHY [pic] The Vardhman Group has always emphasized on total customer focus in all operational areas. It has continuously monitored and nurtured relationships with all the customers and business associates.
VARDHMAN BELIEVES IN: ? The fact that ‘change ‘is a way of life. ? Absolute market orientation for a quick and positive response to the customer’s needs. ? An uncompromising commitment to a flexible, professional and personalized service from within a stimulating result oriented environment. ? Delivery to a constant standard and on time. ? Response approach to the benefits of R&D and the modern technology. ? Having faith in individual potential and respect for human values. ? Being a responsible corporate citizen with due respect to the laws of the land and its environment. ? Product to be the best available quality for premium market segment. These underline the corporate philosophy, which has shaped VARDHMAN OF YESTER YEARS into VARDHMAN OF TODAY. ? Encouraging innovation for constant improvement to achieve excellence in all functional areas. HIGHLIGHTS OF THE GROUP ¦ Faith in bright future of Indian textiles and hence continued expansion in areas “ Which we know best” ¦ Total Customer Focus in all operational areas ¦ Products to be of best available quality for premium market segments through TQM and zero defect implementation in all functional areas ¦ Global orientation targeting- at least 20% production for exports ¦ Integrated diversification/product range expansion World class manufacturing facilities with most modern R&D and process technology ¦ Faith in individual potential and respect for human values. ¦ Encouraging innovation for constant improvements to achieve excellence in all functional areas ¦ Accepting change as a way of life ¦ Appreciating our role as a responsible corporate citizen TOTAL PRODUCTIVE MAINTENANCE TPM: Total Productivity management aims at maximizing overall effectiveness and reliability of plant and machinery by aiming at “Zero Break-Down”, “Zero Defects”, “Zero Losses” and “Zero Accident” through nurturing teamwork and continuous development of all employees, following JIPM road map for implementation of “Total Productivity Management” in the company.
TPM MISSION: To maximize overall equipment effectiveness and improve flexibility through achievement of total reliability of the plant and machines and development of human resources by ushering a cultural change by involving all personnel working in the company. 5S OF TPM: 1) Sort 2) Set locations and limits (SEITON) 3) Shine and Sweep (SEISO) 4) Standardize (SEIKETSU) 5) Sustain (SHITSUKE) 8 PILLARS OF TPM: ? Autonomous Maintenance ? Focused Improvement ? Planned Maintenance ? Quality Maintenance ? Education & Training ? Initial Flow Control ? Safety, Health & Environment ? Office TPM Global Orientation Vardhman ventured in to the global market in 1986 with export value of one crore to reach an outstanding 440 crores (92 million Dollar) in 2002.
Little wonder then, that Vardhman, today, exports 40% of yarn production to more than 25 countries and has a strong presence in markets like the EEC, USA, CANADA, CHINA, JAPAN, KOREA, MEXICO, BRAZIL and MAURITIOUS. Vardhman has a share of more than 6% in total Yarn exports from India. Its trusted, tested and reliable workforce, coupled with the latest technology, quality consciousness, customer oriented services and strong logistics has given Vardhman an edge over its competitors and in the worlds most quality conscious and price sensitive markets, thereby making Vardhman a truly international organization in terms of sourcing from and catering to the world market.
GLOBAL INTERNATIONAL ALLIANCE | | | |Product/Process |Global Partners | | | | |Fabric Dyeing and Finishing |Takai, Senko, Japan | | | | |Fibre and Yarn Dyeing |Nihon Sanmo Dyeing Corporation Ltd. Japan | | | | |Gassed Mercerized Yarns |Kyung Bang, South Korea | | | | |Sewing Thread |American & Efrid Inc. , USA | | | | |Acrylic Fibre |Marubeni Corporation & Japan Exlan, Japan | Global Alliance
VARDHMAN TEXTILE LIMITED ENTERS INTO A LICENCING AGREEMENT WITH AMERICAN & EFIRD INC. , USA. Vardhman Textile Limited of Ludhiana has entered into a strategic tie up with American & Efrid Inc. of USA, The Licensing Agreement Provides that Vardhman Textile Limited will be able to use many of their Patents and Trade Marks for the manufacture and distribution of sewing thread articles used in the up market for manufacturing high valued ready-made garments. A&E has a very strong presence for the supply of sewing thread in American Continent and has presence in emerging Asian Countries like China and Indian Sub-continent which are the major manufactures and suppliers of garments.
They have already established Joint Ventures in Mauritius and Sri Lanka besides their existing operations in China Hong Kong, Singapore etc. for servicing far-eastern countries. The Licensing arrangement therefore provides Vardhman Textile Limited with the right to manufacture and market various products under their brand names and color numbers. The company shall be entitled to use A&E's Registered Trade Marks like D-CORE, PERMA CORE, PERMA SPUN and A&E LOGO etc. Vardhman Textile Limited has set up a brand new state of the art plant at Ludhiana with computer controlled dyeing machines. Hakoba winders and other sophisticated equipment to manufacture this premium range of sewing threads in India.
Vardhman Textile Limited has also set up a special crack team for marketing these high performance threads at all major garmenting centers. Organisational hierarchy structure [pic] CORPORATE OFFICE LUDHIANA Corporate office of Vardhman group is situated in outskirts of Ludhiana on Chandigarh road about 6kms form the heart of the industrial city. All the activities of various units are controlled from the corporate office. It houses the following departments: ? RAW MATERIAL It looks after the raw material requirements of all the units of the group, it procures raw material for all the units. ? FINANCE It looks after the finance status of the whole group.
It arranges for the finances of the new projects and their department. ? EXPORTS This department looks after the export of the group. It accepts the overseas orders and arranges for the dispatch of the same. ? ACCOUNTS This department looks after the day to day accounts of the organization. ? COMMERCIAL & LAW This department looks after the commercial and legal matters of the organization. ? SECRETARIAL It consists of the company secretary of the company. ? PROJECT It prepares the new project, which the group proposes to pursue. ? MIS This department gathers the information from the various departments and a unit of the group processes it and provides it to the management for decision process. EDP This department is concerned with the processing of the data electronically on computers. Structure of raw material department: There are approximate 37 employees in the raw material department which is headed by CGM who undertake all the raw material purchases and waste sales. SWOT ANALYSIS OF THE VARDHMAN GROUP STRENGTHS ? Good Brand Equity ? Good technological base with Foreign Collaboration ? High Quality Standards ? Increasing Production Capacity ? Own Research and Development department ? Commitment for growth ? Zero Defect and optimum production with zero wastage ? Strong R & D department WEAKNESSES ? Comparatively high prices Lesser degree of promotional activity OPPORTUNITIES ? As quality is good and prices are comparatively high, Vardhman can always easily liquidate stock pressure by slight reduction in prices. ? As brand image is very good and production is too wide, Vardhman can have some good customers with whom direct business can be established. With this Vardhman will have better Quantity and Regularity of sales. ? Strict payments are strengths at times as well as weakness. If a moderate policy, as per present conditions are adopted, the dealers and customers shall be attracted to buy more and regularly. ? Shortened hierarchy shall provide hope for better customer service. THREATS Smaller players in the market are using Vardhman’s process as a shield to push their product at lower prices. ? Companies from south are entering into Ludhiana market with very low prices. Capacity of Yarn Spinning is increasing rapidly in comparison to increase in market size, resulting into the addition of new players. This would result in price cuts, liberalization of payment, terms and conditions etc. the various functional areas. Objectives of the Research (A) Traders 1. To find the market potential of Comber Noil in Punjab and Himachal Pradesh. Sub Objective: To find the market size and main markets of Comber Noil in both the states. 2. To study the various commercial terms followed by the trading houses with the suppliers and customers. 3.
To find the relative service level of Vardhman as compared to its competitors in the Comber business. Sub-objective 3 (a): To find the relative quality of Vardhman’s Comber. Sub-objective 3 (b): To find the relative responsiveness of Vardhman. Sub-objective 3 (c): To find the relative complaint handling of Vardhman. Sub-objective 3 (d): To find the relative pricing of Vardhman’s Comber. Sub-objective 3 (e): To find the relative packaging of Vardhman’s Comber. Sub-objective 3 (f): To find the relative delivery time of Vardhman’s Comber. Sub-objective 3 (g): To find the relative accounting practise of Vardhman’s Comber. 4. To find better invoicing practice. 5. To find out the problems faced by traders during the trade of comber. 6.
To find out the suggestions of traders for the suppliers. (B) Consumers 1. To find the market potential of Comber Noil in Punjab and Himachal Pradesh. Sub Objective 1 (a) To find the market size of Comber Noil in both the states. Sub Objective 1 (b): To find the number of Open-End machines in both the States. Sub Objective 1 (c): To find the major count of Open-End Yarn produced. Sub Objective 1(d): To find the major blend of raw material used for the production of Open-End Yarn. 2. To find the main source of raw material for Open-End Yarn manufacturers. 3. To study the various commercial terms followed by the consumers with the suppliers. 4.
To find the relative service level of Vardhman as compared to its competitors in the Comber business. Sub-objective 4 (a): To find out the relative quality of Vardhman’s Comber. Sub-objective 4 (b): To find out the relative responsiveness of Vardhman. Sub-objective 4 (c): To find out the relative complaint handling of Vardhman. Sub-objective 4 (d): To find out the relative pricing of Vardhman’s Comber. Sub-objective 4 (e): To find out the relative packaging of Vardhman’s Comber. Sub-objective 4 (f): To find out the relative delivery time of Vardhman’s Comber. Sub-objective 4 (g): To find out the relative accounting practices of Vardhman’s Comber. 5.
To find the better invoicing practise 6. To find the problems faced by manufactures during the purchase of comber. 7. To find the suggestions of traders for the suppliers. Research Design Data Collection Format Questionnaire A Questionnaire is a formalized set of questions for obtaining information from the respondents. Typically, a questionnaire is only one element of data collection process that might also include: • Fieldwork procedures, such as instructions for selecting, approaching and questioning respondents • Some reward gifts or payments offered to respondents • Communication aids, such as maps, pictures, advertisements and products
It is also called as a schedule, interview form or measuring instrument. The questionnaire used for this report purpose uses: • Semi Disguised observation method i. e. the respondents are not aware of the complete purpose of the observation. • Semi-structured questionnaire format: A semi-structured questionnaire is a questionnaire that has both open-ended and close-ended questions. • Classificatory variables: ? Nature of Business ? Place Interview technique- Office interview was used as an interview technique. There are various advantages of using a office interview in such projects. Advantages of an Office intervie • Flexibility of data collection Diversity of questions can be asked • Use of physical stimuli • High response rate Disadvantages of an Office interview • It’s hard to obtain sensitive information. • The researcher cannot obtain large amount of data. Sampling Design The Sample design process includes five steps: ? Defining of the target population ? Determination of the sampling frame ? Selection of a sampling technique ? Determination the sampling size ? Execution the sample process Target Population Sampling design begins by specifying the target population. The target population is the collection of elements which possess the information sought by the researcher and about which inferences have to be made.
For this project the target population is the traders of Comber and Manufacturers of Open End Yarn in Punjab and H. P. Sampling unit: Individual Sampling Frame It is a representation of the elements of the target population. It consists of a list or set of directions for identifying the target population For this project sampling frame has been decided on the basis of the list of clients of the company. Sampling Technique Sampling techniques can be broadly classified as probability and non-probability. In probability sampling each element of the population has a fixed probabilistic chance of being selected for the sample Non- probability sampling does not use chance selection procedure.
It relies on personal judgment of the researcher. Out of all techniques Area Sampling has been selected. It ensures easy availability of the target group and hence saves time and cost. Sample Size Sample size refers to the number of elements to be included in the study. In the project the number of respondents is 23. The sample size is small considering limited time and budget. Sample Process Execution of sampling process requires a detailed specification of how the sampling design decision with respect to the population, sampling frame, sampling unit, sampling technique and sample size are to be determined. Total Sampling Size = 18 Respondents
The fieldwork was carried out in 8 days. Field Work Design Method of Survey: “Office interview” was used as the method for survey. Survey Strategy: In this project, personal interview method was adopted for data collection. The survey was conducted in two phases. First phase comprised of interviews with 8 Traders of Comber Noil and in the second phase 15 Manufacturers of Open End yarn were interviewed in Punjab and Himachal Pradesh. I personally visited the traders and consumers of comber noil at their office. This method was supposed to be most appropriate as: ? There is low cost even when the universe is large and widely spread geographically. Less chances of ambiguity in the information required. ? Clarification can be made on the spot ? Chances of misinterpretations are less. ? Large sample can be made use of and result can be made more reliable. Duration: The duration of the fieldwork was 8 days. Locations covered: The following locations were covered for the survey. Punjab: Traders D. K Brothers Madhav Textiles Mittal Enterprises Kumar Cotton Traders. Pyare Lala Handa & Sons Shiva Overseas Manufacturers Asia Spintex Chandigarh Spinning Mill GC Spintex Jyoti Cotspin Paras Cotspin Rameshwari Cotspin SS Spintex Usha Yarns Ltd. Sidhi Vinayak Cotspin Shri Shyam Cotex Pvt. Ltd. Himachal Pradesh: Manufacturers Pooja Cotspin
Solan Spinning Mills Findings and Data Analysis Data analysis (Traders) The responses from the respondents are entered in chart format and analyzed. Finding 1: From the survey (including 6 traders) it has been estimated that market size of Comber is around 250 Tonns per day. The major markets for Comber Noil are : ? Samana (PB. ) ? Lalru (PB. ) ? Derabassi (PB. ) ? Nalagarh,Baddi (H. P. ) Finding 2: The common business practices in the market are as follows: (I) With the Mills: ? The traders get the material only after paying the whole amount in advance to their suppliers, as all the spinning mills present in the market do not deal in credit. Even on advance payment, the traders are not given any cash discount, which is not the case in most of the industries. ? All the suppliers except Vardhman and Abhishek do the invoicing of the majorly on Gross Weight. These two mills do it on Net Weight. ? According to the survey done only Vardhman and Abhishek charge the customers for packaging. ? Nahar & Abhishek are the only two mills that takes a security amount of Rs. 1,00,000 from the traders. ? Majority traders prefer invoicing based on gross rate. (II) With the Customers (Open End yarn manufactures): ? Although the traders pay advance to the mills for procuring Comber but they sell it on credit of 7-15 days at 15-18% P. A. ? The traders also give cash discount to their customers on advance payment.
Due to these two reasons some Consumers prefer buying it from the traders rather than directly from the mill. ? The invoicing is done both on Gross Weight as well as on Net Weight depending on how the trading house itself procured the “sauda”. If it has got It on Gross Weight it will charge on Gross Weight basis from the customer and so on. ? The trading houses don’t charge any security amount to any of their customers. ? All manufacturer procure “sauda” both from mill as well as trader. Finding 3: To achieve this objective seven parameters were finalised. As stated earlier that the project was conducted in two phases with Traders and Manufacturers respectively.
They were asked to rank different players on all the five parameters on a scale of 1-5, where 1 being the highest and 5 being the lowest rank. Based on the sample collected all the players were assigned the marks with a method where rank 1 in a particular parameter fetched 5 marks, rank 2 fetched 4 marks and so on. All the marks of the players in one parameter were summed to get the final score. So the maximum a player can score in case of traders is 30(n=6) and in case of responses from Open End yarn manufacturers it can be 60 (n=12). a)Quality of The Product: Vardhman tops the chart in the quality of Comber according to the traders interviewed. Following figures show its position with respect to other suppliers. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |4 |5 |4 |2 |2 | |2 |2 |4 |5 |3 |2 | |3 |3 |4 |5 |4 |3 | |4 |4 |5 |3 |4 |4 | |5 |3 |4 |5 |3 |1 | |6 |3 |5 |4 |4 |3 | |Total |19 |27 |26 |20 |15 | [pic] )Responsiveness: The traders are very much satisfied with the responsiveness and delivery by Vardhman as they receive their material well on time. Following figures show its position vis-a-vis other suppliers. | |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |5 |5 |5 |4 |3 | |2 |4 |5 |3 |4 |3 | |3 |3 |5 |4 |2 4 | |4 |3 |5 |4 |4 |3 | |5 |3 |4 |5 |4 |3 | |6 |4 |5 |3 |4 |1 | |Total |22 |29 |24 |22 |17 | [pic] c)Complaint Handling: According to the traders, among all the mills Vardhman has the most efficient and effective complaint handling department to listen to the problems and grievances of its customers. Following figures show its position vis-a-vis other suppliers. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |5 |4 |3 |3 | |2 |5 |5 |4 |4 |3 | |3 |4 |5 |4 |3 |2 | |4 |3 |4 |5 |3 |4 | |5 |3 |5 |4 |2 |4 | |6 |4 |3 |5 |4 |4 | |Total |22 |27 |26 |19 |20 | [pic] d)Pricing: The respondents were asked that how far the prices charged by the suppliers are justified according to the quality delivered by them.. Following figures show Vardhman’s position vis-a-vis other suppliers. | |Nahar |Vardhman |Aarti Abhishek |Winsome | |1 |5 |5 |5 |4 |4 | |2 |4 |5 |4 |4 |4 | |3 |4 |4 |5 |5 |4 | |4 |3 |4 |5 |4 |3 | |5 |3 |4 |5 |4 |4 | |6 |4 |4 |5 |4 |4 | |Total |23 |26 |29 |25 |23 | [pic] e)Packaging: As compared to other service parameters Vardhman is not rated on the top in Packaging as the respondents are not very much satisfied with the packaging of Comber. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |4 |3 |5 |4 |1 | |2 |4 |2 |5 |4 |3 | |3 |3 |4 |5 |4 |4 | |4 |3 |4 |5 |2 |3 | |5 |4 |4 |5 |3 |4 | |6 |3 |4 |4 |5 |4 | |Total |21 |21 |29 |22 |19 | [pic] f)Delivery time The respondents were asked about the efficiency of delivery time then trader response showed that the vardhman’s delivery time is more efficient as compared to other suppliers. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |4 |5 |3 |3 |3 | |2 |5 |4 |3 |3 |3 | |3 |3 |5 |4 |3 |2 | |4 |4 |5 |4 |4 |4 | |5 |4 |5 |3 |4 |3 | |6 |5 |4 |4 |3 |2 | |Total |25 |28 |21 |20 |17 | [pic] g)Accounting practices According to respondents among all the mills vardhman has the most efficient accounting practices as compared to other mills. Following figures show its position with respect to other suppliers. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |4 |5 |3 |4 |4 | |2 |3 |5 |3 |4 |2 | |3 |5 |4 |4 |3 |3 | |4 |4 |5 |3 |4 |4 | |5 |3 |5 |4 |1 |3 | |6 |5 |4 |4 |3 |2 | |Total |24 |28 |21 |19 |18 | [pic] Finding 4 Invoicing practice It is found that out of six traders two responded that net weight practices is better than gross weight and four respondents said that gross weight practice is better. [pic] Finding 5:
From the survey the following problems have been identified that the trading houses face in the trading of Comber Noil: ? Traders have major problem of weight shortage. ? The Prices of Comber are highly volatile and fluctuate on daily basis. ? In recent times the mills are not showing much confidence on the traders. ? Some time suppliers don’t pay attention to their problems. Finding 6: According to the survey the traders have following suggestions for the suppliers of Comber Noil: ? The Prices should be stable and there should be a single price for one and all. ? There should be fixed price for one week trial. it should not be fluctuate on daily basis. When there is weight error it should be considered from supplier side also. ? Delivery time should be efficient. ? Traders insist that “sauda” should be on credit limit also. Data analysis (Consumers) The responses from the respondents are entered in chart format and analyzed. Finding 1: Market Size 12 manufacturers out of 45 were interviewed during the survey due to scarcity of resources and time. But the existing sample size of 12 covers about 27% of the total market and if we add the consumption of Comber of these respondents it sums up to 90 Tons per day. Table: Consumption of Comber (TPD) by manufacturers of Open-End Yarn |Name of the Manufacturer Consumption of Comber | | |(Tons per day) | |Asia Spintex |6 | |Chandigarh Spinning Mill |5 | |GC Spintex |12 | |Shri Shyam cottex Pvt Ltd |4 | |Jyoti Cotspin |6 | |Paras Cotspin |13 | |Sidhi vinyak cotspin |6 | | Pooja Cotspin |10 | |Rameshwari Cotspin |8 | |Solan Spinning Mill |6 | |SS Spintex |7 | |Usha yarn ltd. |7 | |Total |90 | Total No. of Open-End Machines: According to the survey the total no. of Open-End machines are 99. As mentioned earlier that the survey covers around 27% of the market, so if we calculate the total machines in Punjab and Himachal Pradesh the number comes out to be 300(approx) Table: Total No. of Open-End Machines |Name of the Manufacturer |No. of Open
End Yarn Machines | |Asia Spintex |4 | |Chandigarh Spinning Mill |5 | |GC Spintex |16 | |Shri Shyam cottex Pvt Ltd |8 | |Jyoti Cotspin |6 | |Paras Cotspin |4 | |Sidhi vinyak cotspin |10 | | Pooja Cotspin |12 | |Rameshwari Cotspin |6 | |Solan Spinning Mill |12 | |SS Spintex |10 | |Usha yarn ltd. 6 | |Total |99 | ? Major Count of Open-End Yarn Produced: From the survey it was found that 10 out of 12 manufacturers produce the yarn with a count of 10s. [pic] Blend of Comber and Cotton for the production of 10s Open-End Yarn: 5 out of 12 respondents use Comber, Cotton and Flat in the ratio of 60:20:20. |Name of the Manufacturer |Comber % |Cotton% |Flat% | |Asia Spintex |60 |20 |20 | |Chandigarh Spinning Mill 75 |25 |0 | |GC Spintex |60 |25 |15 | |Shri Shyam cottex Pvt Ltd |50 |25 |25 | |Jyoti Cotspin |60 |20 |20 | |Paras Cotspin |60 |20 |20 | |Sidhi vinyak cotspin |60 |20 |20 | | Pooja Cotspin |50 |30 |20 | |Rameshwari Cotspin |60 |20 |20 | |Solan Spinning Mill |80 |20 |0 | |SS Spintex |40 |40 |20 | |Usha yarn ltd. |55 |35 |10 | Finding 2: Main source of Comber: The survey shows that all 12 respondents purchase Comber directly from the mill and from the traders as well. Finding 3: (I) With the Mills: ? The manufacturers get the material (“Sauda”) only after paying the whole amount in advance to the mills, as all the spinning mills present in the market do not deal in credit. Even on advance payment, the manufacturers of Open-End Yarn are not given any cash discount, which is not the case in most of the industries. ? All the suppliers except Vardhman and Abhishek do the invoicing of the “Sauda” on Gross Weight. ? According to the survey done only Vardhman and Abhishek charge the customers for packaging. ? Nahar and Abhishek is the only mill that takes a security amount of Rs. 1,00,000 from the customers. (II) With the Traders: ? Although the traders pay advance to the mills for procuring Comber but they sell it on credit of 7-15 days at 15-18% P. A. ? The traders also give cash discount to their customers on advance payment. ? The traders give the “sauda” to their customers based on, they procured from the mills, either on net weight or gross weight.
Due to these three reasons some Consumers prefer buying it from the traders rather than directly from the mill. ? The invoicing is done both on Gross Weight as well as on Net Weight depending on how the trading house itself procured the “sauda”. If it has got It on Gross Weight it will charge on Gross Weight basis from the customer and so on. ? The Open-End Mills do not pay any security amount to the traders Finding 4: The scoring pattern is the same as done earlier. a)Quality of the Product (Comber Noil): According to the survey the consumers feel that the quality of Comber of Vardhman is not the best as was the case with the traders interviewed.. They have ranked Aarti as the best followed by vardhman and the Nahar. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |4 |5 |2 |2 | |2 |4 |5 |3 |3 |3 | |3 |2 |3 |4 |3 |5 | |4 |5 |4 |3 |4 |3 | |5 |3 |4 |5 |3 |2 | |6 |5 |3 |4 |4 |2 | |7 |5 |4 |4 |3 |3 | |8 |3 |5 |4 |3 |2 | |9 |3 |5 |4 |5 |4 | |10 |4 |3 |5 |3 |4 | |11 |3 |5 |4 |3 |1 | |12 |4 |3 |5 |3 |3 | |Total |44 |48 |50 |39 | 34 | [pic] b)Responsiveness: According to these respondents also Vardhman has most responsible and it’s the best among the lot. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |4 |4 |4 |3 | |2 |4 |5 |3 |3 |1 | |3 |5 |4 |4 |3 |2 | |4 |4 |5 |4 |2 |3 | |5 |5 |3 |4 |3 |2 | |6 |3 |4 |1 |4 |3 | |7 |5 |4 |3 |3 |2 | |8 |5 |4 |3 |3 |3 | |9 |3 |4 |5 |1 |4 | |10 |4 |4 |3 |3 |4 | |11 |3 |4 |5 |2 |1 | |12 |1 |4 |5 |3 |3 | |Total |45 |49 |44 |34 |31 | [pic] c)Complaint Handling: Services is the best part of Vardhman. As seen earlier, the responses from the traders and now from the consumers show Vardhman a clear cut leader on responsiveness as well as complaint handling with respect to other mills in the same business. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |5 |3 |4 |2 | |2 |5 |4 |3 |2 |3 | |3 |5 |3 |3 |2 |4 | |4 |3 |4 |5 |3 |2 | |5 |5 |3 |4 |3 |3 | |6 |3 |5 |4 |3 |3 | |7 |4 |5 |3 |3 |2 | |8 |3 |5 |4 |3 |3 | |9 |3 |1 |5 |1 |4 | |10 |4 |5 |3 |4 |1 | |11 |4 |5 |3 |3 |1 | |12 |5 |4 |3 |2 |3 | |Total |47 |49 |43 |33 |31 | [pic] )Pricing: The respondents were asked that how far the prices charged by the suppliers are justified according to the quality delivered by them.. Following figures show Vardhman’s position vis-a-vis other suppliers. | |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |4 |4 |5 |3 |2 | |2 |4 |5 |4 |3 |3 | |3 |3 |5 |4 3 |2 | |4 |5 |3 |4 |3 |3 | |5 |3 |4 |5 |4 |2 | |6 |3 |4 |5 |3 |3 | |7 |5 |4 |5 |3 |3 | |8 |4 |3 |5 |3 |2 | |9 |1 |5 |4 |3 |3 | |10 |4 |4 |5 |1 |4 | |11 |5 |3 |4 |3 |3 | |12 |4 |5 |3 |4 |3 | |Total |45 |49 |53 |36 |33 | [pic] e)Packaging: According to the survey packaging is the area of concern for Vardhman as both the consumers and the traders are not satisfied with the packaging of the “sauda” delivered by Vardhman. Infact it should be of the best quality as Vardhman charges its customer an extra amount for packaging. |Nahar |Vardhman |Aarti |Abhishek |Winsome | | |2 |4 |5 |5 |3 |2 | | |3 |3 |4 |5 |4 |1 | | |4 |5 |3 |4 |3 |3 | | |5 |4 |5 |4 |3 |2 | | |6 |3 |4 |5 |3 |3 | |7 |4 |5 |4 |4 |4 | | |8 |3 |4 |5 |3 |4 | | |9 |3 |5 |4 |3 |4 | | |10 |5 |5 |5 |4 |5 | | |11 |5 |4 |5 |2 |1 | | |12 |3 |3 |5 |1 |2 | | |Total |46 |52 |54 |36 |35 | | [pic] f)Delivery time The respondents were asked about the efficiency of delivery time then customer’s response showed that the vardhman’s delivery time is more efficient as compared to other suppliers. It tops in the list. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |5 |5 |5 |4 | |2 |5 |4 |3 |3 |1 | |3 |5 |4 |4 |3 |2 | |4 |1 |4 |3 |5 |4 | |5 |5 |4 |1 |4 |3 | |6 |4 |4 |3 |4 |4 | |7 |1 |4 |5 |3 |2 | |8 |5 |4 |2 |3 |1 | |9 |2 |4 |5 |3 |1 | |10 |4 |3 |2 |1 |5 | |11 |3 |4 |5 |2 |1 | |12 |4 |5 |3 |1 |2 | |Total |42 |49 |41 |37 |30 | [pic] g)Accounting practices According to respondents among all the mills Aarti has the most efficient accounting practices followed by Vardhman. Following figures show its position with respect to other suppliers. |Nahar |Vardhman |Aarti |Abhishek |Winsome | |1 |3 |5 |3 |4 |3 | |2 |3 |4 |5 |1 |2 | |3 |4 |1 |5 |3 |3 | |4 |5 |3 |2 |4 |1 | |5 |3 |4 |5 |1 |5 | |6 |4 |4 |3 |4 |4 | |7 |1 |2 |5 |4 |3 | |8 |3 |4 |2 |5 |1 | |9 |1 |5 |5 |4 |3 | |10 |4 |3 |5 |2 |1 | |11 |4 |5 |3 |1 |2 | |12 |3 |5 |4 |1 |2 | |Total |38 |45 |47 |34 |30 | [pic]
Finding 5 Invoicing practice It is found that out of twelve customers ten responded that net weight practices is better than gross weight and two respondents said that gross weight practice is better. [pic] So majority of customers prefer Net Weight practice of “sauda”. Finding 6: From the survey the following problems have been identified that the manufacturers of Open-End Yarn face during the purchase of Comber Noil: ? The Prices of Comber are highly volatile and fluctuate on daily basis. ? Traders frequently manipulate the prices of Comber. ? Pricing of waste is not transparent; rate quoted by mill is always more than price offered by trades. Dispatch of material is also controlled by traders ? Credit policy of mills is very strict. Finding 7: According to the survey the manufacturers have following suggestions for the suppliers of Comber Noil: ? The Prices of Comber should be stable at least for one week. ? According to some respondents traders should be avoided as they manipulate the prices, which, in the end is a loss for both - the suppliers as well as the consumers. ? Some traders suggested that there should be system of tendering for purchase of comber, where both trader as well as consumer get same price. Which is already practiced by Winsome. ANNEXURES ANNEXURE - 1 Name of the Trading House : ………………………………………………………..
Address : ……………………………………………………………………………… …………………………………………………………………………………………. Contact Person…………………………….. Designation……………………………… Contact No. …………………………………………………………………………….. 1. What is the nature of your business? a) Trading b) Brokerage c) Trading and Manufacturing 2. Please mention the name of the sellers from whom you procure Comber Noil? a) Nahar b) Vardhman c) Aarti d) Abhishek e) Winsome f) Any other, please specify……………. 3. How much quantity of waste do you purchase in a day? Tons per day a) Comber Noil b) Flat c) Card Dropping d) Blow Room Dropping e) Others 4. According to you what is the market size (Tons/day) of Comber Noil? a) Punjab: b) Himachal Pradesh: 5. Where do you sell your purchase? a) Samana