SREE MINAKSISUNDARAM TEXTILES

SREE MINAKSISUNDARAM TEXTILES

Executive Summary

Gaining Economic Significance:-

The Textile Industry is at the cusp of regaining its earlier significance in the Indian Economy.

Currently, the sector accounts for around 14% of the total industrial production and around

4% of the country's overall GDP. The sector contributes valuable foreign exchange for the

country as it accounts for nearly 20% of the country's total exports.Domestic Industry -

Restructuring a growth strategy: The Textile Industry underwent a lean phase during the late

nineties. This was primarily on account of excess capacity, higher interest costs on account of

debt burden, Government policie

Favoring small-scale industries, labour laws and slowdown in the global economy among

others. Declining interest rates, growing domestic economy, favourable Government

policies, revival in global economy and growing potential post-quota regime augured well

for the revival in the textile industry. The changing dynamics of the Indian Economy with

the emergence of the upper middle class segment, higher disposable income and

increasing consumerism is providing some demand side relief for the Textile Industry.

Further, with mushrooming of organized retailing, demand for apparels and textiles

would get a fillip. India,.

India to grab share in Home Textiles, followed by Apparels: India is likely

to make the most of its strength in cotton and low cost skilled labour in increasing its of

pie global textile trade. India's current exports at US$15 bn, accounts for only 4% of the

total world exports, which is expected to grow to US$40 bn capturing a market share of

close to 7-8% by 2010. India is well poised to strengthen its foothold in the global home

textiles segment post dismantling of quotas, which would be followed by higher share in

apparels segment.

Backlash from Developed Countries against China to benefit India: Increasing

dominance of China in global textile trade post quota dismantling is expected to attract

backlash from developed markets like US & EU in order to protect domestic industries.

Thus, protectionist measures against China, is likely to act as a boon for India. India

would be second best choice for the global buyers given its established position in the

global textile

INDUSTRY PROFILE

Textile industry largely depends upon the textile manufacturing and export. It also plays a

major role in the economy of the country. India earns about 27% of its total foreign exchange

through textile exports. Further, the textile industry of India also contributes nearly 14% of

the total industrial production of the country. It also contributes around 3% to the GDP of the

country. India textile industry is also the largest in the country in terms of employment

generation. It not only generates jobs in its own industry, but also opens up scopes for the

other ancillary sectors. India textile industry currently generates employment to more than 35

million people. It is also estimated that, the industry will generate 12 million new jobs by the

year 2010.

Various Categories

Indian textile industry can be divided into several segments, some of which can be listed

as below:

Cotton Textiles

Silk Textile

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

The Industry

India textile industry is one of the leading in the world. Currently it is estimated to be around

US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The

current domestic market of textile in India is expected to be increased to US$ 60 billion by

2012 from the current US$ 34.6 billion. The textile export of the country was around US$

19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of

exports is also expected to increase from 4% to 7% within 2012. Following are area,

production and productivity of cotton in India during the last six decade.

TEXTILE INDUSTRY

Textile industry in india is the second Largest employment generator after agriculture. It

holds significant status in India as it provides one of the most fundamental necessities of the

people. Textile industry was one of the earliest industries to come into existence in India and

it accounts for more than 30% of the total exports. In fact Indian textile industry is the second

largest in the world, second only to China.

Textile Industry is unique in the terms that it is an independent industry, from the basic

requirement of raw materials to the final products, with huge value-addition at every stage of

processing. Textile industry in India has vast potential for creation of employment

opportunities in the agricultural, industrial, organised and decentralised sectors & rural and

urban areas, particularly for women and the disadvantaged. Indian textile industry is

constituted of the following segments: Readymade Garments, Cotton Textiles including

Handlooms, Man-made Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir, and Jute.

Till the year 1985, development of textile sector in India took place in terms of general

policies. In 1985, for the first time the importance of textile sector was recognized and a

separate policy statement was market. The policy also aimed at achieving the target of

announced with regard to development of textile sector. In the year 2000, National Textile

Policy was announced. Its main objective was: to provide cloth 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 the economic growth of the nation;

and to compete with confidence for an increasing share of the global textile and apparel

exports of US $ 50 billion by 2010 of which the share of garment will be

Industry Structure

The textile and apparel industry is one of the leading segments of the Indian economy and the

largest source of foreign exchange earnings for India.

This industry accounts for 4 percent of the Gross domestic product (GDP), 20 percent of

industrial output, and slightly more than 30 percent of export earnings. The textile and

apparel industry employs about 38 million people, making it the largest source of industrial

employment in India. The study identifies the following structural characteristics of India’s

textile and apparel industry:

India has the second-largest yarn-spinning capacity in the world (after China), accounting for

roughly 20 percent of the world’s spindle capacity. India’s spinning segment is fairly

modernized; approximately 35 to 40 percent of India’s spindles are less than 10years old.

During 1989-98, India was the lead-in buyer of spinning machinery, accounting for 28

percent of world shipments. India’s production of spun yarn is accounted for almost

entirely by the “organized mill sector,” which includes 285 large vertically-integrated

“composite mills” and nearly 2,500 spinning mills. India has the largest number of looms in

place toweave fabrics, accounting for 64 percent of the worlds installed looms. However, 98

percent of the looms are accounted for by India’s power loom and handloom sectors, which

use mostly outdated equipment and produce mostly low-value unfinished fabrics. Composite

mills account for 2 percent of India’s installed looms and 4 percent of India’s fabric output.

The hand loom and power loom sectors were established with government support, mainly

to provide rural employment. These sectors benefit from various tax exemptions and other

favorable government policies, which ensure that fabrics produced in these sectors, are price

competitive against those of composite mills. The fabric processing (dyeing and finishing)

sector, the weakest link in India’s textile supply chain, consists of a large number of small

units located in andaround the power loom and hand loom centers. The proliferation of small

processing units is due to India’s fiscal policies, which favor small independent hand- and

power-processing units over composite mills with modern processing facilities. The

production of apparel in India was, until recently, reserved for the small-scale industry (SSI)

sector, which was defined as a unit having an investment in plant and machinery equivalent

to less than $230,000. Apparel units with larger.

Until 2006, Turkey’s textile industry had been experiencing a period of steady growth.

Incomes in Turkey were rising, fuelling domestic apparel and textile demand, and growth in

apparel exports to Europe was strong. In response, Turkish cotton consumption and imports

rose. However, Turkey’s position as a dominant exporter to Europe was soon to be

challenged. China’s 2001 entry into the World Trade Organization marked the beginning of

an influx of Chinese goods around the globe. By 2006, the quota systems that had been in

place to limit Chinese exports of textiles and apparel to many countries had been eased, and

at the end of 2007, European Union quotas expired. With the opening of both the EU and

Turkish markets to Chinese exports, tough price competition from China has had negative

effects on Turkey’s textile and apparel industries. However, it is possible that the recent

worldwide economic crisis could increase the competitiveness of Turkish products,

mitigating the downturn in Turkey’s textile industry.

Turkish Cotton Industry slows

Turkish cotton production has been slowing since the 2004/05 marketing year and has fallen

precipitously in the last two years. Production for 2008/09 is projected to be 2.3 million bales,

a 45% decline from the 2004/05 peak of 4.2 million bales.

Turkey’s imports of raw cotton peaked in 2006/07, when Turkey was the world’s second-

largest importer, importing 4 million bales. Since then, imports have fallen, and the estimate

for 2008/09 is only 2.9 million bales (down 27% from 2006/07). This year, Turkey is

expected to be the fourth-largest importer of cotton, behind China, Pakistan, and Indonesia,

and the third-largest importer of U.S. cotton, behind China and Mexico.

Driving raw cotton imports, Turkey’s mill demand grew until 2006/07, peaking at 7.3

million bales. However, Turkey’s consumption of raw cotton this year is expected to be 5.2

million bales, down 28% from 2006/07. Despite falling consumption, Turkey continues to be

a major player in the world’s cotton supply chain. As with imports, Turkey is the world’s

fourth-largest consumer of cotton, behind China, India, and Pakistan.

Paradoxically, one factor weakening Turkey’s textile industry is the economic strides the

country has made. According to the International Monetary Fund, Turkey’s per-capita GDP

grew 27.3% over the past decade, and recent years have seen increasing stabilization of the

Turkish economy and expansion of the middle class. Rising incomes put pressure on the

textile industry, which must compete with cheap Asian labor in both the domestic and export

markets. Although the textile industry is still Turkey’s largest industrial sector, accounting for

a third of industrial employment, the automotive and electronics industries are growing in

importance (according to the U.S. State Department).

Tough Competition from China

In both its own domestic market and the important European market, Turkey faces tough

competition from Asia, especially China. According to the Turkish Statistical Institute,

Turkey is still a solid net exporter of apparel, with a projected $13.4 billion in exports and

$1.3 billion in imports for 2008. However, imports are rapidly gaining ground. From 2007 to

2008, exports were up slightly (by 6.1%), while imports were up significantly (by 53.9%).

Furthermore, Turkey’s apparel production was down 16.9% from 2007 to 2008.

Much of the growth in Turkey’s imports has been in Chinese apparel. From January through

September 2007 to the same period in 2008, imports from China were up 60.3% in knit

apparel and 48.9% in woven apparel according 06/07 Turkey’s cotton production.

China is the largest foreign supplier of apparel to Turkey, providing 14.9% of Turkey’s total

knit apparel imports and 18.4% of its total woven apparel imports so far in 2008. The value

of Turkey’s imports from China reached new records in September 2008 for both knit and

woven apparel.

Chinese textile and apparel shipments to Europe also are up significantly so far this year.

In fact, for the first ten months of 2008, the EU experienced larger growth in imports from

China (38.54%) than any other region of the world. Despite tough economic times, total

Chinese textile and apparel exports were up 8.43% for the ten-month period. Of China’s

$157.4 billion in global exports of textiles and apparel, $42.5 billion (27.0%) were destined

for Europe, primarily the EU (21.0%) (based on data from the China National Bureau of

Statistics).

Turkey has been feeling the pressure of Chinese competition, as nine of the top ten

destinations for Turkish apparel exports in 2008 were EU countries. The most important des-

tination was Germany, which received 24.6% of total Turkish apparel exports on a dollar

basis (28.5% of knits and 18.9% of wovens). The top non-EU destination for Turkish apparel

was the United States, which received only 2.3% of Turkey’s apparel exports (1.9% of knits

and 3.0% of wovens). For the first nine months of the year, Turkish apparel shipments to the

United States fell 37.1% from 2007 to 2008 (44.3% for knits and 28.2% for wovens),

continuing a seven-year trend of declining importance of the U.S. market to Turkish

exporters.

Along with growing Chinese competition for the European market, the effects of the

economic downturn in Europe have hurt Turkish apparel exports, as the value of September

exports declined 1.4% for knit apparel (to $630.6 million) and 5.5% for woven apparel (to

$450.3 million) (according to the Turkish Statistical Institute). Hardest hit were shipments to

Turkey’s two largest markets, Germany (where exports were flat in knits and down 11.1% in

wovens) and England (with exports down 17.4% in knits and 20.4% in wovens)

Yarn Production

Modernization efforts have brought major changes to the U.S. textile industry. Equipment has

been streamlined and many operations have been fully automated with computers. Machine

speeds have greatly increased. At most mills the opening of cotton bales is fully automated.

Lint from several bales is mixed and blended together to provide a uniform blend of fiber

properties. To ensure that the new high-speed automated feeding equipment performs at peak

efficiency and that fiber properties are consistent, computers group the bales

foproduction/feeding according to fiber properties.

The blended lint is blown by air from the feeder through chutes to cleaning and carding

machines that separate and align the fibers into a thin web. Carding machines can process

cotton in excess of 100 pounds per hour. The web of fibers at the front of the card is then

drawn through a funnel-shaped device called a trumpet, providing a soft, rope-like strand

called a sliver (pronounced SLY-ver).

As many as eight strands of sliver are blended together in the drawing process. Drawing

speeds have increased tremendously over the past few years and now can exceed 1,500 feet

per minute.

Roving frames draw or draft the slivers out even more thinly and add a gentle twist as the

first step in ring spinning of yarn.

Ring spinning machines further draw the roving and add twist making it tighter and thinner

until it reaches the yarn thickness or “count” needed for weaving or knitting fabric. The yarns

can be twisted many times per inch.

Ring spinning frames continue to play a role in this country, but open-end spinning, with

rotors that can spin five to six times as fast as a ring spinning machine, are becoming more

widespread. In open-end spinning, yarn is produced directly from sliver. The roving process

is eliminated.

Other spinning systems have also eliminated the need for roving, as well as addressing the

key limitation of both ring and open-end spinning, which is mechanical twisting. These

systems, air jet and Vortex, use compressed air currents to stabilize the yarn. By removing the

mechanical twisting methods, air jet and Vortex are faster and more productive than any

other short-spinning

After spinning, the yarns are tightly wound around bobbins or tubes and are ready for fabric

forming. Ply yarns are two or more single yarns twisted together

.

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267

2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

2009-10

2010-11

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it

succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet

managed to retain its position as world's second highest cotton producer.

Products

Our vast range of blended fabrics include: blended fabrics, satin fabrics, polyester viscose, 100%

polyester, 100% micro, 100% cotton, polycotton and polonosic.

Quality, being the foremost consideration, ensures that we use the finest yarn. Both, gray yarn and

dyed yarn are used to create stripes and checks. Our variety of fabrics includes:

Blended Fabrics

Cotton Fabrics

Cotton Blended Fabrics

Polyester Viscose Fabrics

Poly Cotton Fabrics

Twill Fabrics

Plain Fabrics

Satin Fabrics

Metti Fabrics

Suitings Fabrics

Shirtings Fabrics

Cross Cord Fabrics

Gabardine Fabrics

» Moreover, we manufacture an extensive range

of suiting’s and shirtings available in different

patterns.

We also produce Worsted Suiting’s for the extraordinary woolen effect. We have also

recently launched very fine count premium suiting’s which provide glorious smoothness and

softness. It is a reversible fabric which can be used both ways.

Production

We employ the latest and the most innovative technologies in production. Our fabrics are

woven on Sulzer, Somet, water jet machines. The unit has a monthly capacity of 0.5 million

meters.

The versatile machines at the plant include doublewidth Sommet Rapier Machines with

Staulby Dobby attachment to create various designs and weaves and Projectile PU Sulzer

Machines .

To stay abreast with technology, we have imported water-jet looms from Japan (Tsudukoma).

These machines ensure perfection in designing and guarantee the best quality.

Training is an integral part of our human resources management. The Quality Control and

Research & Development Department play a very important role in this.

Infrastructure

Our sound infrastructure facilities and experienced workforce from the industry, enable us in

our endeavor to produce quality products.

The technical know-how coupled with the vast experience of our engineers helps in

culminating unrivaled products.

Our team of Research and Development is striving to meet the expectations of our clients by

engineering innovative product

COMPANY PROFILE

INTRODUCTION

S.M.T.L:- The S.M.T.L cotton spinning mill post liberalization environment give rice to

members of industries which brings competitive business war in India.

Industries in India have to think how to think how to face them and survive every

organization is facing unique problem.

Some organization many have old technology some may lay in financial strength and some

may pause be having obsolete products. Some may not have providing good working

environment.

S.M.T.L mainly help the total job environment for the rural people because this area rural

place. The S.M.T.L mainly helps the village people (rural people) quality work life refers to

the favorableness or unfavorableness of a total job environment for people.

The basic purpose is to develop jobs and develop the village people.

The employees working conditions that are excellent for people as well as for the economic

wealth of the organization. The elements in S.M.T.L program include open communication

equitable reward Systems a concern for employee job security and satisfying careers and

group decision making.

Objectives of the company:-

To achieve a turnover of RS /- per annum

1. Maintain cordial relationship between management and the workers.

2. To study the employees work satisfaction level.

3. To upgrade latest technologies training programmers are conducted.

4. To study employee morale.

5. To increase productivity, suggestion, scheme and management rewards have been

introduced.

6. To study working condition and safety measures provided to them.

Vision mission

Vision

Achieving the twin visions of

(a) rendering help to the cotton farmers by way of social services and

(b) endeavoring to attain commercial gain by sustained growth of the Corporation.

Mission

Helping cotton farmers by ensuring them remunerative price for their produce and thereby protect

their interest.

In the case of support price operations, procuring the entire quantity of kapas offered to prevent

distress sale by the farmers

Facilitating the Indian Textile Industry in sourcing their raw material requirement i.e. good

quality, contamination free cotton for production of quality yarn to meet international

competition.

Our mission is to give our customers a competitive advantage through superior

products and services at best prices.

We will meet and exceed our customers' expectations of service through timely

communications and quality information.

To achieve tangible benefits by promoting efficiencies, productivity and

professionalism.

Provide competitive prices and genuine products to our clients.

Creating a climate for voluntary compliance by providing guidance and building

mutual trust.

To promote international textile trade.

FINANCE DEPARTMENT

FUNCTION OF FINANCE DEPARTMENT

RAISING OF FUNDS

Raising of funds generally means collecting financial resources

through various sources such as shares, debentures, short and long terms loans, etc.

ALLOCATION OF FUNDS

Allocation necessary funds for maintaining the activites of a particular process of

the company

PROPER FINANCIAL PLANNING

Financial planning is done to maintain a smooth inflow and outflow of all the

activites which are concerned with financial aspects of the firm. A proper financial plan is

necessary to accomplish the objectivs of the company.

STUDYING THE CAPITAL MARKET

The financial department has to have a clear picture of the capital market in order

to meet their financial aspects

Stores Department: -

It is a service department under the manufacturing division of an organization. An

efficient store keeping system as assistant for smooth flow of materials for production at

economic cost.

By storage is meant holdings in unsteady of all kinds of stores and material including

components spare parts accessions stores holds unproduced ware house of finished stores god

own for finished products.

Function of the stores

Issue requisition on purchasing department for the most economical

quantity of the right kind of material for delivery at the most convenient

place and time consider saving expected from manufacture in quantity as

well as tie up of capital in materials and facilities and other expenses for

maintains the stores.

Check in all materials as the quality and quantity.

Stores all materials in safe and convenient manner for quickly delivery. A

system of code number both to identify and locate the materials should be

issued.

Issue materials agent proper authorization in right quality and quantity and

at right time.

Maintain proper record of receipt, issue, adjustments, and balance.

Keeping store room orderly and having a place for everything and keeping

everything in its place.

Procedure of receipts and issue of materials.

Receipts of materials

1. Suppliers were asked for quotation for materials wanted.

2. Can receipt of the quotation for materials examine the lowest cost and quality

materials will select supplies and place order with those supplies.

3. Supplier will send document through bank or post or directly as required by the

company it the value is more normally the supplier will send documents through on

receipt intonation from bank cashier will release the document by paying the value of

goods sent and the cashier will sent the documents to stores departments.

4. Stores department will get materials form Transports Company by producing RR (or)

LR to them.

5. After receiving materials quality of materials will be cheeked by concerned are

thirties and quantity by the stores department and if any variance either in quality or

quantity follow up action will be initiated for then materials will be by the stores.

6. After receiving materials receipt of materials will be sent to head office Bangalore. In

some occasions payments for materials cost will be paid by head office also according

to terms and conditions agreed with the supplies.

7. Then materials will be entered bin cards.

Issue of materials

1. Normally without indent from concerned departments will not be issued. In S.M.S.T

maintains supervises will write indent to stores through fitters to get materials

required from of indent will be passed by factory manager.

2. Then store will be material entry to bin card and issued the materials to the indent.

3. At the end of month after valuing the materials issued to department during the

month an a make a statement called ‘’stores consumption for the month of 2010-

2011 to head office.

4. At the end of year recenliation will be made between the stores and head office for

correctness of values.

5. Quantity of materials in balance will be cheeked by the stores.

Store location of material store S.M.S.T

Godden

Raw material

Carding

Blow room

combers

Drawing

Simpler

Spinning

Winding

Packing

In S.M.S.T MATERIALS ARE CLASSIFIED AS FAL

1. Gears :- in all gear wheels are again subdivided according to department.

2. Liquids – sub –divided

Oil Diesels Petrol

3. Tools – sub – groups Spanners (double end) -do- (ring type) Dril bits Screw drivers Taps etc

4. Belts -subdivided according to sizes

v.belts plat belts enders belts again v-belts – A-27 to 70 according to sizes B -27 to 74

5. Bolts and nuts

STORES

6. Electrical items

HUMAN RESOURSE DEPARTMENT

Functions of H.R.D:-

1. Performance appraisal

2. Employees training

3. Carrere p

4. lanning and development

5. Involvement in quality circles

6. Involvement in worker participation in management

Working Hours:-

SHIFT FROM TO

Shift – 1 7.AM 3.PM

Shift – 2 3.PM 11.PM

Shift -3 11.PM 7.AM

Welfare facilitieslities:-

1. Housing Facilities

2. Loan

3. Provident Fund

4. Uniform/Cycle facilities

5. Performance appraisal

6. Infrastrue Facilities

Housing facilities:- Housing facilities that is quarters is provided all the

employees. The rent for this deducted from the salaries.

Loan:- The company also provide loans facilities for their employees. For the

purpose of vehicles oat.

Provident fund: - All the employees and executives are covered under provident

fund act (12% of wages or salary is contributed by the management.

Bonus: - bonus are paid in the following base

D.A. 12%, P.F

Health facilities: - the company has provided health facilities for employees.

Performance appraisal:- performance appraisal at S.M.T.L is carried on the basis of quality

and quantity given by each employees it is done over 5years but only for the purpose of

salary incentives and promotion for the employees.

Infrastructure facilities:-

Buildings

Computer

Material holding or safety equipment 0

Quality control laboratory and testing equipment

Medical facilities

Other supporting activities

PRODUCT PROFIL

Processing: - cotton bales are purchased in the form of 170 kgs. Each from various places like

Gujarat, Maharashtra, madhyapradesh and some parts of Karnataka and stored in cotton

godown. Depending upon the daily requirement, bales are issued to department and mixing is

prepared putting different lots. This opened cotton will be processed trough blow room,

carding, comber where thorough opening and cleaning is taken place. Besides short fiber

content in the cotton will also be separated by the combing where fibers are doubled and

paralleled and then it goes to simplex machines where sliver will be converted to roving

which will be fed directly to spinning frame to spin required count of yarn. Since of get yarn

in smaller package this will be fed to winding where package will be made to 1 kg. to 2 kg.,

depending upon the requirement of the market. Then these cones are packed either in HDPE

bags of 50/51/52kg. OR in cartons.

Outlook for industry

The outlook for textile industry in India is very optimistic. It is expected that Indian textile

industry would continue to grow at an impressive rate. Textile industry is being modernized

by an exclusive scheme, which has set aside $5bn for investment in improvisation of

machinery. India can also grab opportunities in the export market. The textile industry is

anticipated to generate 12mn new jobs in various sectores.

NATURE OF THE BUSINESS CARRIAR:-

1. Attitude

2. Environment

3. Nature of job

4. People

5. Stress level

6. Challenges

7. Risk involved and reward

ATTITUDE:

At the person who is entrusted with a particular job needs to have sufficient

knowledge, required skill and expertise, enough experience, enthusiasm, energy level,

willingness to learn new things, dynamism, sense of belongingness in the organization,

involvement in the job, inter personnel relations, adaptability changes in the situation,

openness for innovative ideas, competitiveness, zeal, ability to work under pressure,

leadership qualities and team spirit.

ENVIRONMENT:

The job may involve dealing with customers who have varied tolerance level

preference, behavioral pattern, level of understanding; or it may involve working with

dangerous machines like drilling pipes, cranes, lathe machines, or even with animals where

maximum safety precautions have to be observed which needs lot of concentration, alertness,

presence of mind, quick with involuntary actions, synchronization of eyes, hands and body,

sometimes high level of patience, tactfulness, empathy and compassion and control over

emotions.

NATURE OF JOB:

For example, a driller in the oil drilling unit, a driver unit, a diver, a fire – fighter,

traffic policeman, train engine driver, construction laborers, welder miner lathe mechanic

have to do dangerous jobs and have to be more alert in order to avoid any loss of limb, or loss

of life which is irreparable; whereas a pilot doctor, judge, journalist have to be more prudent

and tactful in handling the situation; a CEO, a professor, a teacher have more responsibility

and accountability but safe working environment; a cashier or as security guard cannot

afford to be careless in his job as it involves loss of money, property and wealth; a politician

or a public figure cannot afford to be careless, for his reputation and goodwill is at stake.

Some jobs need soft skills, leadership qualities, intelligence, decision making abilities,

abilities to train and extract work from others; other jobs need motor skills, perfection and

extreme carefulness.

PEOPLE:

Almost everyone has to deal with three set of people in the work place those are

namely boss, co-workers in the same, level and subordinates. Apart from this, some

professions need interaction with people like patients, media persons, public, customers,

thieves, robbers, physically disabled people, mentally challenged, children, foreign

delegates, gangsters, politicians, public figures and celebrities. These situations demand high

level of prudence, cool temper, tactful ness, humor, kindness, diplomacy and sensitiveness.

STRESS LEVEL:

All these above mentioned factors are inter- related and interdependent. Stress level

need not be directly proportional to the compensation. Stress is of different types mental

stress /physical stress and psychological or emotional stress. A managing director of a

company will have mental stress, a laborer will have physical stress, a psychiatrist will have

emotional stress. Mental stress and Emotional stress cause more damage than physical stress.

CHALLENGES:

The job should offer some challenges at least to make it interesting; that enables an

employee to upgrade his knowledge and skill and capabilities; whereas the monotony of the

job makes a person dull, non-enthusiastic, dissatisfied, frustrating, complacent, initiative-

less and uninteresting. Challenge is the fire that keeps the innovation and thrill alive. A well –

accomplishment challenging job yields greater satisfaction than a monetary perk; it boosts the

self –confidence also.

RISK INVOLVED AND REWARD:

Generally reward on compensation is directly proportional to the quantum of work,

man –hour, nature and extent of responsibility, accountability, delegated powers, authority of

position in the organizational chart, risk involved, level of expected commitment, deadlines

and targets, industry, country, demand and supply of skilled manpower and even political

stability and economic policies of a nation. Although risk involved in every job its nature and

degree varies in them; all said and done is a key criteria to lure a prospective worker to accept

the offer.

Mckensy’s 7S Frame work:

FUNCTIONAL DIRECTORS: (INVOLVING IN DAY-TO-DAY ACTIVITIES)

NATIONAL PRODUCT HEADS: (REGISTRY, DEPOSITORY, EQUITY BROKING,

COMMODITIES BROKING, DISTRIBUTION PRODUCTS, REALTY, INSURANCE,

WEALTH MANAGEMENT, INVESTMENT BANKING, ACCOUNTING & AUDIT)

ZONES: (DIVIDED INTO NORTH ZONE, WEST ZONE, EAST ZONE, SOUTH ZONE,

SOUTH-WEST ZONE)

ZONAL PRODUCT HEADS: (REPORTING TO THE RESPECTIVE NATIONAL

PRODUCT HEADS)

REGIONAL PRODUCT HEADS: (REPORTING TO THE RESPECTIVE ZONAL

PRODUCT HEADS)

CLUSTER HEADS: (REPORTING TO THE RESPECTIVE REGIONAL HEADS)

FUNCTIONAL EMPLOYEES: (BRANCH COORDINATORS, DEALERS, FRONT-

OFFICE EXECUTIVES, CUSTOMER SERVICING EXECUTIVES, SALES /

MARKETING EXECUTIVES, WEALTH ADVISORS)

2. Systems:

The organization follows strict rules and regulations for the employee. It follows

specific entry and exit timing for its employees. Each employee has to follow a specific

dress code depending on his line or work or duty. All junior staff member will have to

report to the designated senior staff member daily attendance register to the human

resource department. This is daily processed at the end of each month.

The company has its regional office in Bangalore, which is headed by a regional

manager. All branch heads and various dept heads will report to him on regular basis.

Finance operations are centralized at the head office level and excess funds are

regularly transferred to the head office account. Periodic fund requirement at the

regional level will be sent as and when required. But the local regional manager would

sign all cheques and such instruments.

Requirement of fresh incumbents are made at local office at the regional level

depending upon the manpower requirement. The respective departmental heads holds

the HR would dispatch interviews and the appointment from the head office.

Usually the employee will be on one-year probation and after successful completion

he will be made permanent employee. Operation of company is monitored by the

chairman of the company and various others senior managers, operations at the junior

level is largely centralized with division heads making key decisions. The company is

follows strict register of quality maintenance with high standards of process and

systems.

3. Style:

The chairman who sits at the head office in Bangalore heads the organization. At

all over the branches across the country Regional manager has been appointed. The

chairman will take decision related to the group as such. All other decisions related to

the relevant to the region and regional heads will take their line of work. Managers are

responsible and accountable for their decisions and subsequent implementations. By

and large decision making are decentralized for day to day affair.

4. Staff:

Each incumbent should have a specific academic qualification to match the

position he is going to hold and also necessary skills to execute the assignment.

Marketing/sales people should posses at least a degree and a management degree is

preferred and should necessary posses good communication skill and fair for sale. He

should have a two wheeler for communicating purpose.

All back end employees should have at less graduation with exposure to necessary

skills. For fresher due training will be given and then will be put on the jobs. Their

potential will be monitored on a regular basis and will be suitable guidance from time to

time. Annual increments are also given on the performance predominant.

5. Skills:

A manager is viewed as a skilled person who has the ability to manage people and

resources and at times finance also. He will be responsible to indentify for the right job

and get the work done efficiently. Min wastages and maximum utilization of available

resources is the key organizational behavior and culture is thought to the fellow

employees and potential employees are suitable nurtured.

6. Strategy:

A company of S.M.S.T’s stature cannot afford to work without objectives. An

overall group objective is already set and all the employees are driven towards

S.M.S.T’s believes that ‘no individual is big as the organizational itself’. Competition is

the key to survival and for giving diversification for the given product as such

competition is always good. S.M.S.T updates itself to the surroundings competition and

bring out changes are services and related products to be in competition. In the

distribution business S.M.S.T enjoys 40% market, which is healthy from the industry

standard. Survival of the company as well as the growth of the company over the past

36 years, has been effectively overcoming competition. As a leading financial services

provider in the country S.M.S.T brand name is well known. After diversifying into

various services providing activities it has become S.M.S.T’s prerogative to be leader in

the business.

SWOT ANALYSIS

Strengths

Vast textile production capacity

Large pool of skilled and cheap work force

Efficient multi-fiber raw material manufacturing capacity

Large domestic market

Enormous export potential

Very low import content

Flexible textile manufacturing systems

Logistics

Brand recognition across

Availability of Low Cost and Skilled Manpower provides competitive advantage to

industry.

Availability of large varieties of cotton fiber and has a fast growing synthetic fiber

industry.

.

Industry has large and diversified segments that provide wide variety of products.

India has rich resources of raw materials of textile industry. It is one of the largest producers

of cotton in the world and is also rich in resources of fibers. India is rich in highly trained

manpower. 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.

India is highly competitive in spinning sector and has presence in almost all processes of the

value chain.

Indian 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

Weaknesses

Use of outdated manufacturing technology

unorganized and decentralized sector

High production cost with respect to other Asian completion

Textile Industry is highly Fragmented Industry.

Industry is highly dependent on Cotton.

Lower Productivity in various segments.

There is Declining in Mill Segment.

Lack of Technological Development that affect the productivity.

. Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and

transportation Time.

Unfavorable labor Laws.

Lack of Trade Membership, which restrict to tap other potential market.

Lacking to generate Economies of Scale.

Higher Indirect Taxes, Power and Interest Rates.

Indian Textile Industry is highly Fragmented Industry.

Industry is highly dependent on Cotton.

Lower Productivity in various segments.

There is Declining in Mill Segment.

Lack of Technological Development that affect the productivity .

Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and

transportation Time.

Unfavorable labor Laws.

Lack of Trade Membership, which restrict to tap other potential market.

Lacking to generate Economies of Scale.

Higher Indirect Taxes, Power and Interest Rates.

Indian textile industry is highly fragmented in industry structure, and is led by small scale

companies. The reservation of production for very small companies that was imposed with

the intention to help out small scale companies across the country, led substantial

fragmentation that distorted the competitiveness of industry. Smaller companies do not have

the fiscal resources to enhance technology or invest in the high-end engineering of processes

.

Indian labour laws are relatively unfavorable to the trades and there is an urgent need

for labor reforms in India.

India seriously lacks in trade pact memberships, which leads to restricted access to

the other major markets

OPPERTUNITIES: - .

Making effective use of established brand name

Further penetration in the retail segment

Cross selling of multiple products thru long-term financial solutions thru financial

planning which is a growing segment which should be explored and implemented

Full advisory platform across products with highly skilled labor.

Growth rate of Domestic Textile Industry is 6-8% per annum.

Large, Potential Domestic and International Market.

Product development and Diversification to cater global needs. .

Market Development.

THREATS:

Has to control costs and manage people & resources effectively

Cyclical / volatile / unpredictable nature of markets could hamper business plans

Threat for traditional market for powerloom and handloom products and forcing them for

product diversification.

Competition from other developing industries.

Elimination of quota system will lead to fluctuations in export demand.

Geographical disadvantages.

International labor and environment laws.

To balance the demand and supply.

To make balance between price and qulity.

FINDINGS AND SUGGESTION

FINDINGS

The factory suffruing from lack skilled labour it leads to lower productivity.

Lack of transportation facilites for distribution of finished goods

Use of treditional technology for production facilites and all tranction done through

human beings

All work done through use of human which leads to increase the cost of production

Huge of unorganised and decentralised sector

Infrastrctural bottlenecks and efficiency such as transaction time at ports and

transportation time

Higher indierct tax,power,interst

Increased the global competition in the post 2005 trade regime under WTO

Inadequate financial facilites to purchase of raw materials and payment made to

labours

Unfavourable labour laws which leads to labour makes strikes against management

Improper storage facilites to store the raw materials and finished goods

SUGGESTION

The factory install new and advanced technology and machinery for productions

facilites. which will make factory as more productivity.

The factory adopt new marketing stratgy and install adquate channels of distribution’s

The factory record all the transation’s through computerised system.which helps to

company to save time and reduse paper work and also it helps proper maintnance of

all documents.

Giving proper trainning to all labours atleast tow days at the week ends, and also

factory made selection procedure based on minimum eudcation qualification.

Giving more welfare facilites to labour which helps to motivate labours and also it

helps to increase the productivety.