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Page 1: MY PROJECT . .AWESOME APPARELS.LTD (Repaired)

Awesome Apparels Pvt ltd

TEXTILE INDUSTRY

The textile industry occupies a unique place in our country, since its

existence in India. It accounts for 14% of the total industrial production and

contributes to nearly 30% of the export and is the second largest employment

generator after agriculture.

Textile industry provides one of the most basic needs for people and

holds importance, maintaining sustaining growth for improved quality of life. It

has a unique position as a self-reliant industry from the production of raw

materials to the delivery of finished products with substantial value

addition at each stage of processing. It is a major contribution to our

economy.

It acts as a vast potential for creation of employment opportunities in the

field of agriculture. Although the development of textile sector had earlier

taken place in terms of general policies, in recognition to the importance

of this sector. For the first time a separate policy statement was made in

the year 1985, in regard to the development of textile sector. The textile

policy of 2000 aims at achieving the textile and apparel exports of

US$50 billion by 2010 of which the share of garments will be US$25

billion. The main markets for Indian textile and apparels are USA, UK,

GERMAN, FRANCE, ITALY, RUSSIA, CANADA, JAPAN,

BANGLADESH.

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The main objectives of the textile policy 2000 is to provide clothes

of acceptable quality at reasonable prices for the vast majority of the

population of the country to increasingly contribute to the provision of

sustainable employment and economic growth of the nation and to

compete with confidence for an increasing share of the global market.

CURRENT SCENARIO

Developing countries with both textile and clothing capacity may

be able to prosper in the new competitive environment after the textile

quota regime of quantitative import restriction under multi-fiber

arrangement (MFA) came to an end on 1st Jan 2005 under the World Trade

Organization (WTO) Agreement ( textile and clothing).

As a result the textile industry in developed countries will face

intensified competition in both their export and domestic market. However

the migration of textile capacity will be influenced by objectives,

competitive factors and will be hampered by the presence of distorting

domestic measure and weak domestic infrastructure in several developing

and least developed countries.

The elimination of quota restriction will open the way for the most

competitive developing countries to develop stranger clusters of textiles

expertise, enabling them to handle all stages of the production chain

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from growing natural fabrics for producing finished clothing. The OECD

paper says that while low wages can still give developing countries a

competitive edge in world market, time factors now play a crucial role in

determining international competitive countries that aspires to maintain an

export lead strategy in textiles and clothing, need to complement their

cluster of expertise in manufacturing by developing their expertise in the

higher value-added service segment of the supply chain such as design

sourcing or retail distribution, to pursue these avenues. National suppliers

need to place greater emphasis on education and training of service-

related skills and encourage the establishment of joint structure where

domestic suppliers can share market knowledge and offer more integrated

solutions to prospective buyers.

The mood in the Indian textile industry given in the phase-out of

the quota regime of the Multi Fiber Arrangement(MFA) is upbeat with

new investment flowing in and increased ordered of which capacities are

fully booked up to April 2010. As of various initiatives taken by

government, there has been an investment of Rs 50,000crs in textile

industry in the last 5years. Nine major textile industries invested Rs

2,600cr and has planned to invest another Rs 6,400crores. Further, India’s

cotton production has increased by 57% over the last 5years and 3million

additional spindles and 30,000 shuttle less looms were installed.

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The industry expected investment of Rs 1,40,000Cr in this sector in

the past MFA phase. A vision 2010 for textiles formulated by the

Government after intensive interaction with the industry and export

promotion councils to capitalize on the upbeat mood aims to increase

India’s share in the world textile trade from the current 4% to 8% by

2010 and to achieve export value of US$50 billion by 2010. The textiles

emisager growth in Indian textile economy from the current US$37 billion

to $85 billion by 2010. Creation of 12 million new jobs in the textile

sector and modernization and consolidation for creating a globally

competitive textile industry.

Latest news in textile industry

Minister of finance has added 165 new textile products under

duty drawback schedule. New products included wool tops, cotton,

yarn, acrylic yarn, viscose yarn, various blended yarn/fabrics

finishing nets etc. Further the existing entries in the drawback

schedule relating to garments have been expanded to create separate

entries. Man made fiber blend and MMF, separate rates have been

prescribed for these categories of garments on the basis of

composition of textiles.

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After the phasing out of quota regime under the multi-fiber act,

India can emisage its textile sectors becoming $100 billion industry

by 2010. This will include exports of $50 billion.

Textile minister Mr.M.Dayanidhi Maran has revealed that the Board

for Industrial and Financial Reconstruction(BIFR) had approved

rehabilitation scheme for sick mills at a cost of Rs 3900cr.

Adding to this, 66mills and 65 unviable mills have been closed after

implementing Voluntary Retirement Scheme(VRS) to all employees.

Proposal for modernization of production mills have been made

to the consulted committee members, including formation of a

committee for exports for improvised management of these mills.

Even the present status of jute industry was under the scanner of

the consultative committee.

The Government had announced change from the value-based

drawback rate hitherto followed to a weight-based structure for

textile exports that will discourage raw materials exports and also

curtail the scope for misusing the drawback claims by boosting

invoice value of exports.

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APPAREL INDUSTRY

The apparel industry is one of India's largest foreign exchange earners,

accounting for nearly 16% of the country's total exports. The 1996 Indian

textile exports approximately amounted to Rs.35, 000 crores of which apparel

occupied over Rs14, 000 crores.

It has been estimated that India has approximately 30,000 readymade

garment manufacturing units and around three million people are working in the

industry. Today many leading fashion labels are being associated with Indian

products. India is increasingly being looked upon as a major supplier of high

quality fashion apparels and Indian apparels have come to be appreciated in

major markets internationally. The credit for this goes to our exporter

community.

Consistent efforts towards extensive market coverage, improving

technical capabilities and putting together an attractive and wide merchandise

line has paid rich dividends. But till today, our clothing industry is dominated

by sub-contractors and consists mainly of small units of 50 to 60 machines.

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India's supply base is medium quality, relatively high fashion, but small volume

business.

Indian economy may be showing signs of recovery in some sectors such as

cement and steel, textile sector continues to be in the doldrums with millions of

workers jobless, and export orders not picking up as demand continues to be

low from US and developed markets.

Textiles industry is the second major employer in India after agriculture,

providing employment to 91 million people according to Eco Pulse study titled

Indian apparel Scenario.

It contributes about 13 per cent in export earning and 4 per cent in India’s GDP

is still suffering the heat of global slowdown as indicated by declining exports

and massive layoffs.

A recent study said that the economic meltdown in the major export markets of

Europe and the US has led to a substantial fall in foreign orders that has resulted

in an estimated loss of about one million jobs during the last few months.

Textile exports during April-March 2008-09 registered a decline of 1.71 per

cent from USD 22.13 billion in April-March 2007-08 to USD 21.75 billion.

Among the maximum hit segments, handicrafts registered maximum decline of

48.35 per cent in 2008-09, from USD 3481.14 million in 2007-08 to USD

1797.88 million.

Textile sector registered 50 per cent increase in investment during 2008-09 to

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Rs 49,613 crore from Rs 31,161 crore in 2007-08. But as compared to the year

2006-07 the sector registered 48 per cent decline in investment. However, in

2006-07, Rs.90, 369 crore of investment was poured in textile sector.

According to the Chamber, an investment of Rupees one lakh in power loom

sector creates about three jobs, hence the government should create an

investment friendly environment and provide low interest rate loans to investors

and should also provide export profits be made tax-free in slow down period to

encourage the export.

A detailed study has stated that despite marked improvement in the financial

position, the Indian apparel industry continues to face serious issues involving

transaction cost and raw material.

The government needs to focus on infrastructure facilities related to the supply

chain and provide low cost logistics service to the sector.

The sector suffers from high power cost and lack of power supply. Effective

power management system has to be put in place. States should offer power at

low cost on the incentive based system for the new investment made in the

textile industry for commercial production.

The sector requires higher technology up gradation and active involvement of

new technology. Government should further increase funds under the

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Technology Up gradation Fund Scheme (TUFS) for textile firms from Rs 3140

crore to Rs 4500 crore and release appropriate funds to clear the existing

backlog of subsidy payments and upgrade technology of textile units.

There has been a stiff competition from the countries in which the

labor cost is considered to be low, such as Bangladesh, Pakistan etc. Recent

recession in Europe and the South Asian currency crisis have also contributed

their own bits to the decimating Indian exports. Though these are expected to

fizzle out soon, there is no reason for complacency on the part of Indian

exporters or of the garment industry. The industry will be soon faced with open

competition shorn of quotas or tariffs.

Thus the need of the hour is to enlarge both manufacturing as well as the

marketing base. Inculcation of a spirit of innovation by way of research and

development and tapping new markets especially in South Africa, Central

Africa, CIS, East European countries, Latin America and Australia is also

mandatory for export growth.

The concept of apparels has given out a unique dimension by way of

Design, lesser cost and immediate delivery. This acts as a better platform for the

Working class to use the best of the products of the apparel industry. In this

Backdrop let me present my project, A STUDY ON AWESOME APPARELS

Pvt. Ltd.

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Objectives of the study

The present study has been taken up with following objectives

To know the growth and present state of Indian cotton textile

Industry.

To know the strength and weakness of Awesome Apparels Pvt Co

Ltd.

To know the operating, Manufacturing and Quality maintenance

of Awesome Apparels Pvt Ltd

LIMITATIONS OF THE STUDY:

The study was restricted only for 45 days. Due to time constraint an in

depth study of all the departments was not possible.

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In the study only the general organization study has been selected.

Since the managers were busy with their work schedules it was not

possible for us to spend more time with them for discussion.

THE AWESOME APPARELS PVT.LTD

The company is setup as a Private Limited Company in Bangalore.

It is engaged in manufacture and exports of readymade garments and

Caters its merchandise to the global market.

MANAGEMENT

The company is managed by its President Mr. Vijay Lakhani.

Mr. Vijay Lakhani

Mr. Vijay Lakhani has acquired knowledge in textile technology and

started of his career in trading of fabrics to the domestic requirement

and also exports. He traveled extensively round the globe gaining

immense knowledge in the field of garment technology. During these

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years he gained immense experience and knowledge of the apparel

industry in the US Market.

Going forward his Merchandise office at Mumbai and his office at

Bangalore concentrates on Merchant Export to the Global requirement. He

Specialized in manufacturing and marketing of international brands

Worldwide apart from improving the profitability and business structure of

Of his company.

Now, Mr. Vijay Lakhani, being the President of this company,

Also heads BIG APPLE EXPORTS which is the buying office

representation of KRAZYKAT SPORTSWEAR LLC., having its Head

office At New York, United States of America. This office controls the

Asia Pacific operation having branch offices at Bombay and Madras.

Mr. Vijay Lakhani is a person with rich experience in the Apparel

Industry at the Regional and International Level.

LOCATION

Awesome apparels Co Pvt Ltd., in the Peenya Industrial Area of

Bangalore city is 15km from the Bangalore International Airport.

FACTORY/OFFICE

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Total Area : 40,000 SFT BUILTUP AREA

The manufacturing unit is equipped with specialized imported

Machines and can execute bulk orders as its capacity is 3600pcs/day. For

this purpose the latest and ultra modern, Japanese machines have been installed.

The finish of the garment is given experienced and skilled workers who

operate with perfect precision.

Awesome Apparels consider its highly skilled and dedicated workforce

as its biggest asset. The exemplary welfare measure laid out have made

them a contented work force so essential for the success of the

enterprise.

PRINCIPLE RELATIONSHIPS

The company caters its manufacture to the International Market, for

well known international brands and stores, to name a few are given

below.

JC PENNEYS

KOHIL’S

SEARS

TARGET MERVYNS

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H&M

PRIMARK RETAIL / ASSOCIATES

OTTO.

THE COMPANY AT A GLANCE

NAME OF THE COMPANY : Awesome Apparels Pvt Ltd

EARLIER NAME : Manjushree Garments

YEAR OF ESTABLISHMENT : May 1998

YEAR OF INCORPORATION : May 1998

REGD HEAD OFFICE : Awesome clothing pvt ltd.

#2/4, 1st floor Aragini Bhavan

Dr Raj kumar road, Rajajinagar

Bangalore-560010

PHONE : 08028364400

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CONTACT PERSON : Lakshmi kanth

FACTORY : 48/4&9, Karivabanahalli,

Bangalore North Taluk,

Peenya 2nd sage,

B’lore-560080

MANAGEMENT CONTROL : Board of directors nominated by

The chairman and MD

TRADE MARK :

SOURCE OF FINANCE : Punjab National Bank

MANUFACTURE & EXPORT : Men’s, Ladies, & kids wear

SPECIALIST IN : Ladies garments

BUSINESS POLICY : Strict quality control

Reasonable price,

Fair deal to our customer for

Mutual growth

EXPORTED TO : US

PRODUCTION SETUP : Imported sewing machines for

Stitching, cutting, butting, elastic,

Fitting, embroidery etc

In house facility right from cutting

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Stitching, finishing, and packing.

Plant & machinery worth Rs2 crores

OUTSOURCE PRODUCT : Fabrics

TOTAL EMPLOYEES : 750

BOARD OF DIRECTORS

Mr. M.R. VIJAY LAKHANI, Chairman & Managing Director

Mr. M.R. SATISH, Joint Managing Director

Mr. M.R. RAVI, Executive Director

Mrs. DEEPA KUMAR

Mr. RAJASHEKAR

Mr. M.R. GANGANNA

Mr. M.R. GANGADHAR

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Mr. S.K.SHARMA

Mr. J.ALEXANDER

Mr. A.MURALI

MACHINERY INSTALLED

Cutting Machine 03

Cloth Drilling Machine 02

End Cutter 03

S/Needle machine 235

S/Needle men with edge cutter 36

Fusing machines 02

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Pneumatic Collar Turning

Machines

04

Over lock Machine 36

Feed of the Arm 18

Button stitch Machine 08

Button Hole Machine 08

Bar tacking Machine 04

Pivoting Machine 02

Snap Attaching Machine 04

Stain Removing Station 01

Steam Ironing Station 24

Double Needle Machines 18

NAMES OF SOME OF THE MACHINES AND THEIR USES

Cutting machine / band knife machine :

It is used for cutting fabric according to the requirement.

Edge cutter machine :

It is used to cut the edges of the fabrics as per the measurement.

Sewing machine :

It is used to stitch the different parts of the fabric together.

Button stitching machine :

It is used to stitch the buttons adjacent to the button holes made

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Over lock machine :

It is used to over lock the stitching.

Button hole machine:

It is used for holding of the button in its place.

Stain removing machine :

It is used to remove any stains in the material r fabric.

Washing machine :

It is used to wash the garment.

Pressing machine:

It is used for ironing the garment.

TYPES OF MACHINES USED IN AWESOME APPARELS

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Sewing machine

Yarn dyeing machine

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Textile printing machine

Inspection Machine

FABRIC RANGE

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All cotton and blended Yarn dye fabrics, Mill made fabrics, Denim,

Special fancy fabrics from South India.

Have import facilities under NFE and DEC schemes to import

Special fabrics from the Far East.

LABORATORY

In house to check GSM, Fabric Quality, Color Matching, color

Fastness Crocking, Washing Machine.

SPECIAL FINISHING

We can achieve special finishes like, peach finish, silicon, Enzyme

wash, mercerizing, pigment dyeing value addition with the facility of

Industrial Laundries and processing units situated very nearby our

manufacturing base.

QUALITY SYSTEMS

Awesome Apparels is committed to manufacture and supply ready

made garments to the satisfaction of its valued customers by its employee

Following the International Quality Management systems.

The company is certified for manufacture for JC Penney’s, Target

Mervyns, Kohl’s, H&M complying to norms set by them.

SOCIAL ACCOUNTABILITY

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The company follows the principle of International Human

Rights. The company does not believe in child labor and forced Labors.

The best working environment and standards are provided to the

employees in view of safety and health. No discrimination based on caste,

religion gender, or whatsoever is followed.

The manufacturing process does not pollute air, water, or

Atmosphere. The best housekeeping and noiseless atmosphere boosts the

morale of the employees.

Free Medical attention is given to the minor medical needs by

Red Cross trained staff. Free medical treatment provided at a near by

dispensary. Rest room provided for working staff who need to take rest

medical reasons.

Attendance Bonus is paid on a monthly basis for eligible

employees. Grant of bonus given annually. In house crèche takes care of

infants of our employees by efficient midwives. Working hours do not

exceed the stipulated working hours layer down by the factory’s Act. A

spacious and clean lunch room is provided for all employees.

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VISION

To build a world class company.

Preferred suppliers to global company.

Rapid adaptation to the latest technology.

Strive for excellence in quality and reliability to meet global challenges.

Capacity to handle high volumes.

Cost effectiveness through innovative process.

MISSION

To meet the challenges of global market and passion for

excellence through customer delight, cost competitive, continuous updating

of engineering skills.

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Product profile

Awesome apparels produces the followed products range based

on the order given by the Big Apple co Pvt Ltd.

Product range

MEN’S

Formals

Twin flits

Semiformal

Casual

Fleet front

Cargo pants

Zip up pants

Shorts

Pyjamas

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Shirts

Formals

Short sleeves

Full sleeves

Shorts

Casuals

Denim

WOMEN’S

Ladies Tops

Ladies pyjamas

Shorts

Trousers

Skirts

kurtas and tops

KID’S

Kid’s shirts

Half elastic pants

Denim

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Organization

Chart

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Managing director – Mr. Vijay Lakhani

General Manager – Mr.B.Ravi Prasad

The following departments come under the review General Manager:

MERCHANDISING DEPARTMENT:

a) Senior merchandiser

b) Assistant merchandiser

Pattern

a) Pattern master

b) Assistant

Sampling

a) Sampling master

b)Tailor

c) Assistant

PURCHASE AND MAINTAINANCE DEPARTMENT

a) Department head

b) Staff

c) Assistants

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PRODUCTION DEPARTMENT

a) Supervisors

b) Workers

c) Helpers

d) Ironers

e) Checking in charge

f) Trimmers

MARKETING DEPARTMENT

a)Finishing in charge

b) Supervisors

c)Workers

d) Helpers

e)Button department

f) Stain remover

g) Packing department

h) In charge and team of workers.

HRD

a) Administration and welfare officers

b) HR Personnel

c) Assistant

d)Medical team.

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QUALITY CONTROL DEPARTMENT

a)Cutting section

b)Spreader cutter

c)Production batch

d)Inline measurement

e)Finishing department

f) Final auditor

FINANCE DEPARTMENT

a)Managers

b)Assistants.

STORES DEPARTMENT

a)Supervisor

b) Checking in charge

c)Staff

d) Assistants

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DEPARTMENTS OF AWESOME APPARELS

Various functional departments are a trademark of every productive

organization. In Awesome Apparels Pvt Ltd,the following are the departments

performing various functions to attain their departmental objectives which

in turn confine towards attaining organization’s mission as a whole.

VARIOUS DEPARTMENTS OF AAPL

1) MERCHANDISING DEPARTMENT

2) STORES DEPARTMENT

3) PURCHASE DEPARTMENT

4) PRODUCTION DEPARTMENT

5) HUMAN RESOURCE DEPARTMENT

6) MARKETING DEPARTMENT

7) FINANCE DEPARTMENT

8) QUALITY CONTROL DEPARTMENT

9) MAINTAINENCE DEPARTMENT

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MERCHANDISER DEPARTMENT

STRUCTURE OF MERCHANDISING DEPARTMENT

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SENIOR MERCHANDISER

ASSISTANTMERCHANDISER

ANALYST

HELPER

MANAGING DIRECTOR

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SENIOR MERCHANDISER: P.R.DASGUPTA

EMPLOYEES: 22

MEANING OF MERCHANDISING

According to the American Heritage Dictionary, merchandising is the

promotion of merchandise sales, as by coordinating production and marketing

and developing advertising, display, and sales strategies: basically everything

included in the process of selling a product to the ultimate consumer.

FUNCTIONS OF MERCHANDISING DEPARTMENT

The functioning of the merchandising department begins with the sourcing for

the new order or the repeat order, and continues till the shipment deadline has

been met. Merchandisers act as mediators between the export house and the

buyers. They know what buyers want and what the company is able to and

willing to deliver. They are responsible for timely execution of the orders.

• The main function of the merchandising department is a follow up process.

The merchandisers serve as mediator between the buyer and export house. They

carry out pre production planning with the help of the production manager so

that the order gets completed in a smooth and organized manner on time.

• The merchandisers keep track of all the departments' progress with their

orders. They maintain a copy of the documents from all the departments, which

show the status of the orders in those departments.

• The merchandisers discuss the details of the material with the QC's and

pattern masters and negotiate with the buyer if there are any changes to be done.

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• The job of costing the garments is with the senior merchandiser and it has to

be approved by the divisional merchandising head.

RESPONSIBILITIES OF MERCHANDISING DEPARTMENT

• Forecasting sales.

• Planning the product range with the buying team.

• Liaising with buyers, store managers, distributors and suppliers.

• Visiting manufacturers, stores and suppliers.

DOCUMENTS MAINTAINED UNDER MERCHANDISING

DEPARTMENT

Various documents and files that merchandisers maintain are:

Fabric files,

Trim files,

Style master files,

Format files,

Art works files etc.

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STORES DEPARTMENT

Structure of Stores Department

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DEPARTMENT HEAD - Mr.B.L.RANGANATH

NO.OF EMPLOYEES - 60

FUNCTIONS OF STORES DEPARTMENT

Stores department enables the organization in efficient functioning,

removal of obsolete materials, keeping close track of high value

materials, enable the organization in cost reduction. Stores personal can

contribute to productivity and un-stopped production by quick issues,

elimination of pilferage, wastage, safety and insurance aspects care.

The Awesome Apparels Pvt Ltd’s stores department performs

following main functions.

Receiving the goods to stores as per the purchase order.

Arrange the inspection of the materials.

Proper storage of goods in stores department.

Issuing the materials to production.

Maintain the proper inventory level.

Maintaining of proper records.

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TYPES OF STORAGE

The stores department of Awesome Apparels Pvt Ltd., stores and

stocks the raw-materials indifferent cells with special criterion on each

one of its features. The following are the different storage cells available

to store varied materials.

Label

Buttons

Threads

PROCEDURE FOLLOWED IN STORES DEPARTMENT

The stores department of Awesome Apparels Pvt Ltd., follows FIFO

method for issuing goods. The stores department requests the materials

department to place an order when there is no stock of materials asked

by the user department. The materials department sends the copy of

purchase orders to the stores department and in turn the stores

department inspects raw-materials to check whether they meet the

specification and they prepare the goods received report.

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From the following procedure the company receives the

Materials:

The document to be followed as per purchase order of the

Company are delivery challan and bills of vendor.

Materials can be checked for quality and quantity as per

delivery challan.

Separate storage arrangement is made in stores department.

Maintaining goods inward book(GIN) for every incoming

Materials with relevant details.

It is the responsibility of the stores personnel to set the

materials inspected early so that rejected if any can be

returned and accepted quantity and items can be issued for

production.

Maintaining of the stock register. It gives details of the receiving,

Issuing, and balancing of the stores department with quantity

and volume.

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DOCUMENTS MAINTAINED IN STORES DEPARTMENT

The following are the main documents prepared and maintained by

stores department for its purpose of reporting to finance department.

Merchandise/swatch card.

Delivery challan.

Goods Inward Book(GIN)

Stock register

Completion report.

Purchase order.

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PURCHASE DEPARTMENT

STRUCTURE OF PURCHASE DEPARTMENT

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MANAGING DIRECTOR

MANAGER

ASSISTANT MANAGER

HELPER

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DEPARTMENT HEAD-Mr.B.VITTAL RAO

NO.OF EMPLOYEES – 97 EMPLOYEES

OBJECTIVES

Assuring of continuous availability of materials at the

Production cells.

Prevention of excessive investment in materials.

Assuring of minimum wastage.

Purchase price being reasonable and that matches the quality

and service.

To upgrade technical efficiency of the production process. Be

informed of material requirements, stock and usage over

regular intervals to keep a track of records.

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PROCEDURE FOR PURCHASING OF MATERIALS

In AAPL if the management wishes to go in for a new supplier for

purchasing of goods the company follows the following procedure.

Getting trims details from merchandise.

Collecting the consumption of materials from the merchandise.

Making of a purchase order note to the corresponding supplier.

Filing the materials and the sample swatches approved by merchandiser.

Getting sample from supplier and matching it with the approved

swatch card by buyer or merchandise

Daily follow up by the supplier.

Preparing purchase cost after completion of order.

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MATERIALS PURCHASED FROM

The raw materials that are purchased by Awesome Apparels

are being supplied from various suppliers within India and throughout the

world. The company purchases the raw materials in bulk and the materials are

stored under the stores department systematically.

PAYMENT TO THE SUPPLIER

Giving maximum delivery date of 10 to 15 days to the supplier and

payment is made in prior 30 to 40 days by credit.

DOCUMENTS MAINTAINED IN PURCHASE DEPARTMENT

The following are the main documents prepared and maintained by

Purchase department for the purpose of reporting it to the finance

department.

Purchase cost sheet.

Maintaining details of P O in excel sheet by supplier and material

wise.

After receiving bills from the supplier, making of the GIN and

passing the Bills to the finance section.

Maintaining of monthly stock register.

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PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT

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DEPARTMENT HEAD- Mr.M.Prasadh & Mr.L.SINGHANIA

NO.OF EMPLOYEES – 178 EMPLOYEES

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Technician

Checking Supervisor

Assembling Supervisor

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The product is of utmost important to any organization with out

which any managerial activity is impossible. So at AWSOME APPARELS

PVT LTD., the production department acts as a centre of the whole

organization.

OBJECTIVES

To produce the goods within delivery time given by the buyer.

To maintain the quality of the goods.

To observe the production process.

To safeguard the morale of the employees.

To build up the relationship of the workers.

To provide welfare facility to the workers.

PROCESS UNDERTAKEN IN PRODUCTION DEPARTMENT

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PRODUCTION PLANTS AT AAPL

Pattern/sampling section

Fabric section

Cutting section

Production section

Finishing and checking section

Packing and labeling section

I. PATTERN/SAMPLE SECTION

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This is the first step in the manufacturing process. In this process the

buyer sends the sketch and the sample of the garments to pattern masters

along with the measurement sheet, construction sheet and any other

information regarding the garment.

The sample sent to the sample section should be fit by 3 pieces before

wash and must identify the shrinkage before and after wash.

According to this pattern, the master of this section prepares the

pattern with necessary instruction given by the buyer about the garment

and if there is any shrinkage, a sample is sent to the buyer. This method is

called style or idea sample.

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The second step in the pattern section is the buyer sends the

additional measurement of the sample with photography and style sample.

According to the pattern, the master prepares the pattern and sends it to

the buyer. This method is called as fit sample.

If it is accepted by the buyer it will be continued to next process or

otherwise it is further examined.

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II. FABRIC SECTION

The first step in the fabric section is as follows:

The below mentioned is a sample of the merchandise card, which

contains style , design no etc.

Merchandise card

Ex; Design No ; 9661/5434

Color ; Lt, Teal

Date ; 23-08-2008

Exporter ; ACB

Weaver/printer; Lakshmi/Gemini

Code ; D/B/W

After receiving the fabrics, it is examined whether it is printed or dyed

fabrics and it is further cut by 100.10cm and marked by100cmx100cm and

it is sent to the washing section to check if there is any shrinkage and

further it is sent to the checking section to check whether it is according

to the shades mention in the merchandise card.

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Calculation of material defects in fabrics -

In the fabric section they follow the 4point system to calculate the

defects in materials.

Formula for 4point system= No of points x 100

Actual mtrs

Points will be given on the length of the defects

0 to 3 inches = 1 points

3 to 6 inches = 2 points

6 to 9 inches = 3 points

Above 9 = 4 points

If there is any material in which more than 42% defects are found, that

particular material is rejected.

Eg: = 03x100 = 18.29 Accepted

16.40

07x100 = 42.68 Rejected

16.40

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Types of Fabric

Cotton

Likra

Waile

Condra

Jeans

Poplene

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CUTTING SECTION

In the cutting section the pattern, measurement chart, and

sample of the garment is received. The Q C checks the sample and pattern

as per the measurement chart. If there is any mistake it is informed to the

pattern section. QC checks the length and width of the fabric .

The section cuts the lay as per the pattern mark. The next step

involves marking of serial numbers to the fabric cut such as sleeves, front,

collar, etc. The next step involves randomly selecting 7 pieces, that are

checked for perfection. If it is found agreeable then it sent for the next

process.

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III. PRODUCTION SECTION

In this process the cutting section sends the materials with their

serial numbers. The production batch collects this and they follow the

purchase order sheet which contains the buyers requirements. Before

stitching the fabric, the order sheet is referred, in which the requirement or

the pattern is given. One part of the garment is prepared by one person

and it is sent to the next person for further production. It will be continued

up to completion of one garment under the watchful eyes of line/ floor

head’s and once the product or the material is manufactured, then it is

sent to the trimming table for cutting extra threads and once this particular

job is finished , it is sent to the finishing section. The finishing section

examines or verifies the garment for perfection. If it is acceptable, the

product is sent further to under go the necessary process . If not, it is sent

back to the production section for any necessary alteration to the garment.

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IV. FINISHING SECTION

The Finishing section receives the garments from the production

batches with details like p.o. no, style no., color, date and batch no., and

total garments received . In the finishing section the garments are processed

by making button holes and fixation of buttons before sending for washing

(if necessary only.) The button holes and the buttons are made as per the

measurement given by the pattern section.

The washed garments are ironed and moved to the trimming table for

cutting the unnecessary threads and it is checked by the checkers for any

mistake in the garments. In the process the measurement, style and the

manufacturing of the garment is thoroughly checked.

PACKING SECTION

Once these stages are over, folding and tagging is made by this

section and the garments are packed as per the buyer’s instruction. It is

checked by the final auditor of the company and later by the buyer

quality inspector

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PACKINGSECTION

LABELLINGSECTION

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HUMAN RESOURCE DEPARTMENT

STRUCTURE OF HUMAN RESOURCE

DEPARTMENT

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HR MANAGER –Ms.PAVITHRA.D.R.

NO.EMPLOYEES –82 EMPLOYEES

OBJECTIVES

Objectives are pre-determined goals to which individual or group

activity in an organization is directed. Objectives of human resource

dept are influenced by the organizational objectives and individual and

social goals.

To create and utilize an able and motivated work force.

To establish and maintain sound organizational structure.

To attain an effective utilization of human resources in the

achievement of organizational goals.

To identify and satisfy individual and group needs by

providing adequate and equitable wages, incentives, employee

benefits and social benefit.

To maintain high employee morale and sound human relation.

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To provide facilities and conditions for work for maintaining

stability of employment.

CLASIFICATION OF EMPLOYEE

Permanent employee

Probationary employee

Temporary employee

Casual employee

Trainee/apprentice/learner employee

APPOINTMENT OF EMPLOYEES

All appointments of employees will be made in writing by

the managing Director/General manager or such other office

duty authorized by the company.

Employees are required to agree the terms and rules of the

company.

Employees are required to submit medical certificate, age proof and

address proof.

HOURS OF WORK, HOLIDAYS AND OVRETIME

Employee of Awesome Apparels have only one shift they have

to work from 9am to 5.30pm.

The periods of hours of work for all categories of

employee/workmen shall be as per the provision of Factory’s

Act 1948 and the same will be exhibited on the notice to the

Board from time to time.

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Weekly holidays and substitute weekly holidays will be given

subject to the provision of the Factory’s Act 1948.

LEAVES STRUCTURES

Earned leaves, sick leaves, casuals leaves - 12 days

National leaves - 03 days

Festival leaves - 06 days

And all Sundays.

LEAVE RULES

As per Factory’s Act 1948.

Grant of any leave to a workman shall depend upon the

exigencies of work in the factory/company and shall be at the

discretion of the manager.

A workman who desires to obtain leave or absence shall

apply in advance to manager in writing in the prescribed

form.

In case the workman remains’ absent for 8 working days

without applying and sanction of leave shall, automatically

loose his lien or his appointment.

MATERNITY LEAVE

Every women employee who is covered under ESI act, will be

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entitled to maternity leave as per ESI act with salary for a period of 12

weeks that is 6 weeks up to and including the days of delivery there

after 6 weeks immediately following that day.

TRANSFER, INCREMENT AND PROMOTION POLICY

An employee/workman shall be liable to be transferred from

one job to another in any department or section of department

in the factory as the management may decided at its

desecration.

Annual increment will be consider only when it falls due in

resects of the workman concerned on the basis of their date

of appointment.

Employee promotion to a higher grade/skill is the executive

right and function of the management, while promoting an

employee, his merits and seniority will be considered as the

main criteria.

Payment of wages shall be as per Wages Act 1936,

ACCIDENTS

Any workman/employee sustaining an injury during the course of

his work shall immediately bring it to the notice of the foreman,

supervisors, department head or manager for necessary action. All such

injuries shall be entered in the register and shall be kept for the purpose

by the management.

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NOTICE OF STRIKE

No workman/employee shall go on strike without issuing a notice in

prior to the management in writing of his intention to resort to strike.

MARKETING DEPARTMENT

STRUCTURE OF MARKETING DEPARTMENT

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MANAGINGDIRECTOR

MARKETING MANAGER

ASSISTANT MARKETINGMANAGER

HELPER

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MARKETING MANAGER – Mr.K.RAGHAVAN

NO. OF EMPLOYEES – 157 EMPLOYEES(including sales personnel)

OBJECTIVES

The marketing objectives are set by Awesome Apparels Pvt Ltd., to

increase the profits of the company through cost reduction, increasing

market shares, creating new customer loyalty. The following are the

objectives of the marketing department

Setting up of marketing goals and objectives.

Developing the marketing plans.

Organizing the marketing function.

Ensuring the marketing program.

MARKETING

The company itself is responsible for selling their products and it

has been found out that the company has been quite successful in

marketing their own products.

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The company has no different marketing branches. All the products

are exported to US head office.

MARKETING MIX

Marketing mix is the policy adopted by the manufactures to get

successful in the field of marketing. It emphasizes the consumer’s

preference .Manufacturer first analyses the consumer needs and then plans

his production to give ultimate satisfaction to the consumers. Every

management is therefore concerned with the markets and market behavior

to identify needs of the consumers.

Marketing mix is the combination of 4 inputs, which constitute the

important aspects of a companies marketing system. They are

Product.

Price.

Promotion.

Physical distribution

PRODUCT LINE

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Awesome Apparels Pvt Ltd., has a number of products offered under

its brand names. It was adopted as a registered brand name for all its

products by Awesome Apparels Pvt Ltd., to symbolize the philosophy of

the company.

The various names of the brands are given below

women

women

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THE ORIGINAL

Jeans company

FINANCE DEPARTMENT

STRUCTURE OF FINANCE DEPARTMENT

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MANAGING DIRECTOR

FINANCE MANAGER

ASSISTANT FINANCEMANAGER

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DEPARTMENT HEAD – Mrs.VIJAYALAKSHMI.S.L

NO. OF EMPLOYEES – 220 EMPLOYEES

FINANCE DEPARTMENT

Finance is the lifeblood of any business. It should be concerned with

the activation of funds and wide application of the funds. The duties of

of finance department are to perform these functions effectively.

OBJECTIVES

To protect the financial interest of the company.

Monitoring the funds, collections and payment.

Controlling the in-flow and out-flow of cash.

Financial planning and mobilization of cash.

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HELPER

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To ensure that the company does not suffer from shortage

of finance

To exercise the cost control and cost reduction techniques.

To monitor the budget and budgetary control.

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SIGNIFICANT ACCOUNT POLICIES OF FINANCE DEPARTMENT

1) FINANCIAL SOURCE

Awesome Apparels have closely related with Punjab National

Bank. They have taken a loan in the form of letter of credit (LC) from

this bank.

2) ACCOUNTING PROCEDURE

In Awesome Apparels Pvt Ltd., they follow fully computerized

accounting system. They adopt Tally procedure system for their

accounting system.

3) WORKING CAPITAL

It refers to the flow of ready funds necessary for the working of

the organization. A part of investment in fixed assets explains that every

enterprise has to arrange for adequate funds for meeting day-to-day

expenditure to keep it a going concern.

Working capital= current assets-current liability

4) INVENTORY

All raw materials will be at two months stock level. The

purchase is done in bulk depending on the availability and demand for

finishing goods.

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Valuation of inventories

Raw materials are valued at weighted average cost.

Work in progress is valued at materials cost and no overheads are

recognized.

Finished goods are valued at cost excluding excise duty.

5) FIXED ASSETS

Awesome Apparels Pvt Ltd., have 450 stitching machines. All

are imported Machines, Individual cost of this machines are between

Rs.18000 to Rs.26000.

6) DEPRECIATION

Awesome Apparels follows the Return down value method for

calculating the depreciation of the fixed assets. Assets calculated as per

rates specified in schedule XIV of the Company’s Act of 1956.

7) ADVERTISING AND SALES PROMOTION

There is no advertising and sales promotion because the

company produces the product for only one particular buyer i.e. the BIG

APPLE COMPANY., They submit the order for the whole year.

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QUALITY CONTROL DEPARTMENT

STRUCTURE OF QUALITY CONTROL DEPARTMENT

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Managing director

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DEPARTMENT HEAD:PRAKASH.J.

EMPLOYEES: 33

QUALITY CONTROL:

Quality is an essential requirement for any product. Quality is a relative

term and is generally explained with reference to the end use of the product.

Granting the quality is a major concern for any garment industry.

Qualities refers to get the product to the customer as per the specifications

given by the customer and also to obtain good stitching and good material

without any defect. The following are the duties done under quality control

Department:

Fabric roll inspection is done.

Embellishment and trims inspection as per AQL 0.5 (labels, size

labels, wash care labels, twill tape, threads etc).

After cutting is done all cut parts are inspected for measurement

and fabric faults. Not a single panel (front, back, sleeves, sleeve

tape, neck tape, etc) is left from “inspection of measurement and

other faults.”All damaged/improper cut parts are replaced.

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In sewing line:

They make garments only by chain system (only one operation is

given to an operator) this helps in delivering good quality, as the

workers specializes in a single operation.

At the start of every bundle, top bottom and middle pieces are

taken from each bundle and measurement and piece balancing

inspection is again done.

Two mid check points are given in sewing line. 100% pieces are

checked on these points.

During the day, random pieces from each machine are checked for

stitch quality (operator and machine fault) seam allowances taken

by operators in over locks, lockstitch and interlocks are monitored

and simultaneously random measurements are taken.

All threads are cut, before every inspection (mid check points and

final point) and loose threads are taken out before giving to final

inspection. At final inspection pieces are checked 100% from

inside and outside. All shapes, pieces balancing etc. are checked.

Their lines generally work on 2% alteration e.g. on final inspection

table, out of 1000 pieces, 20 pieces alteration are found. They are

continuously working to reduce this alteration percent.

There after audit is done at AQL 2.5 of every pass lot. All audits

are done from a defined chart, which describes the lot size, sample

size and no. of defects allowed. This system is followed strictly as

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per standards and lots are passed and rejected as per the standards

defined.

In-Process Quality Control

One of the keys for producing good quality merchandise is a process of

quality control program. It is possible to control, out going quality with only a

good final audit. Without an effective in-process quality control program, cost

of excessive seconds and repairs will be high. It is far more effective to correct

the problem at the operator level, than after the garment is completely

assembled, pressed, packed and prepared for shipping.

PURPOSE OF INPROCESS QUALITY AUDITING

The primary process of in process auditing is to identify problems early

in the production process.

A problem caused by the operator, the machine, cutting or other factors

in process auditing helps to find specific problems in production and

concentrate on correcting them.

Unless in process quality auditing is been adopted the cost of excessive

seconds and repairs will be high.

It is far more effective to correct the problem at the operator level, than

after the garment is completely assembled, pressed and prepared for

shipping.

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MAINTAINANCE DEPARTMENT

STRUCTURE OF MAINTAINENCE DEPARTMENT

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MANAGINGDIRECTOR

MANAGER

HELPER

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DEPARTMENT HEAD – K.CHANDRAN

NO.OF EMPLOYEES – 60 EMPLOYEES

Maintenance Department

Effective maintenance management forms an important approach to

reduce the total manufacturing cost and improves the productivity of

production process; failure of this management can lead to high penalty

cost.

Maintenance department at AWESOME APPARELS is mainly a

maintenance division and its main work is to maintain the machinery and

imported spare parts in an emergency basis.

OBJECTIVES

To maintain plant and machinery.

Avoid break down during the production process.

To ensure a longer life span of plant and machinery.

To minimize operational costs through optimal maintenance.

The maintenance department in its day-to-day operations consumes the

following materials;

Diesel

Lubricants

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Cotton waste

Needles

Machinery parts etc;

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SWOT ANAYSIS

Strengths

Strong marketing presence and distribution in selected regions in US.

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The garments made by AWESOME APPARELS, especially women’s

garments are of world class quality.

Good quality apparels are manufactured by the company.

Continuous up gradation of the technology is taken up by the company.

World class machinery is being used for all purposes.

Product prices are competitive.

Weakness

The company sources its entire raw material requirement from only one

company, i.e. the BIG APPLE COMPANY.

The company sells its products to only one company, there by not

attracting other markets.

The company has a reputation of being a manufacturer of ladies

garments, so the other lines of products are not being popularized.

The company is perceived as middle class casual wear, even though the

garments manufactured by AAPL are of good quality. There by

restricting its entry into upper class range.

They do not have a strong local presence. 100% of its products are

exported to US.

The on-going recession in US will have a great impact on the company

sales.

Opportunities

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Us has phased out quota regime under the multi-fiber act. This

provides tremendous opportunities for the company to expand.

Their major production is in cotton fabric. The popularization of cotton

fabric all over the world will lead to better demand for the company.

Threats

“Me Too” competitors in garments like John Players, Allen Solly,

Peter England, Levis, etc., are available at equal prices.

The general recession is affecting apparel industry to a great extent.

FINDINGS

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AAPL has a very strong marketing presence in selected regions in the US

market.

The products manufactured by them are of high quality and are

renowned for there high quality.

The capacity utilization is being monitored very rigidly by the

management.

Great importance is given to quality maintenance.

The company has a very poor publicity and marketing, due to this

it has not been able to make it to the other markets.

SUGGESTIONS

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India’s exporters have withstood the adverse effects of international

political situation and general economic slow-down. At the same

time, the prevailing situation in the international market demands a

fresh strategy to face the challenges beyond 2010.

Rapid changes are taking place in the global clothing trade. With the

abolition of quota restriction and emergence of trade blocks, so the

company should be fully geared to compete on the basis of

commercial factors like quality, prices, delivery schedules and

marketing skills.

The company has to take initiative for modernization and innovation

for improving competitiveness. To be globally competitive, there is

need for integrated units having economies of scales

CONCLUSION

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I felt proud of having done my project at AWESOME APPARELS

PVT LTD., Bangalore. The company produces ready-made garments. The

experience I got from my internship study was really fruitful to explore

new product line, people, strategies, work place, organizational culture,

policies and more distinctively the style of managing the company’s

profile.

I believe that the experience I had in my internship training at AAPL

will surely enrich my knowledge on industrial practicalities and my

M.B.A career with a virtual learning experience.

Regarding the management of the company, the organization structure is well

organized and functions smoothly with a panel of experienced and qualified

personnel. As far as the departments are concerned, each and every department

is inter related and inter connected and functions effectively and efficiently

abiding to the strict rules and regulations in order to fulfill the organizational

goals and objectives.

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As far as the present scenario is concerned, there has been a global

crisis, due to which the industry is in turmoil as the number of orders are less.

The company has also issued pink slips to some of the employees due to

industrial slow down.

Even though there has been a decrease in the demand for

the apparels world over due to prevailing economic scenario, the company

seems to be coping well with the situation and is still running the show by

utilizing 60 – 65% of its capacity.

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Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the

US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh

and Japan. The name of these countries with their background can give thousands of insights

to a thinking mind. The slant cut that will be producing a readymade garment will sell at a

price of 600 Indian rupees, making the value addition to be profitable by 300 %.

Currently, because of the lifting up of the import restrictions of the multi-fibre arrangement

(MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on

Textiles and Clothing, the market has become competitive; on closer look however, it sounds

an opportunity because better material will be possible with the traditional inputs so far

available with the Indian market.

At present, the textile industry is undergoing a substantial re-orientation towards other then

clothing segments of textile sector, which is commonly called as technical textiles. It is

moving vertically with an average growing rate of nearly two times of textiles for clothing

applications and now account for more than half of the total textile output. The processes in

making technical textiles require costly machinery and skilled workers.

The application that comes under technical textiles are filtration, bed sheets and abrasive

materials, healthcare upholstery and furniture, blood-absorbing materials and thermal

protection, adhesive tape, seatbelts, and other specialized application and products.

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Strengths

. India enjoys benefit of having plentiful resources of raw materials. It is one of the largest producers of cotton yarn around the globe, and also there are good resources of fibres like polyester, silk, viscose etc...

. There is wide range of cotton fibre available, and has a rapidly developing synthetic fibre industry.

. India has great competitiveness in spinning sector and has presence in almost all processes of the value chain.

. Availability of highly trained manpower in both, management and technical. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.

. The installed capacity of spindles in India contributes for 24% share of the world, and it is one of the biggest exporters of yarns in the global market. Having modern functions and favorable fiscal policies, it accounts about 25% of the world trade in cotton yarn.

. The apparel industry is largest foreign exchange earning sector, contributing 12% of the country's total exports.

. The garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.

Weakness

Massive Fragmentation:

A major loop-hole in Indian textile industry is its huge fragmentation in industry structure, which is led by small scale companies. Despite the government policies, which made this deformation, have been gradually removed now, but their impact will be seen for some time more. Since most of the companies are small in size, the examples of industry leadership are very few, which can be inspirational model for the rest of the industry.

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The industry veterans portrays the present productivity of factories at half to as low as one-third of levels, which might be attained. In many cases, smaller companies do not have the fiscal resources to enhance technology or invest in the high-end engineering of processes. The skilled labor is cheap in absolute terms; however, most of this benefit is lost by small companies.

The uneven supply base also leads barriers in attaining integration between the links in supply chain. This issue creates uncontrollable, unreliable and inconsistent performance.

Political and Government Diversity: The reservation of production for very small companies that was imposed with an intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. However, most of the sectors now have been de-reserved, and major entrepreneurs and corporate are putting-in huge amount of money in establishing big facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the Government has gradually eliminated these restrictions, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textile products; it can certainly provide a base for textiles and apparel companies.

Despite some motivating step taken by the government, other problems still sustains like

various taxes and excise imbalances due to diversification into 35 states and Union

Territories. However, an outline of VAT is being implemented in place of all other tax

diversifications, which will clear these imbalances once it is imposed fully.

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