General Introduction

Company General Profile

Registered office:

Aerodrome Road, Jamnagar361006,Gujarat.

Registrars & share transfer agents:

MCS Limited,77/2A, Hazra Road, Kolkata 700 029

Tel: (033) 2454 1892 - 93

Fax: (033) 2454 1961, 2474 7624 

E-mail: mcskol@rediffmail.com

Company secretary & Compliance officer:

Mr. G K Sureka 

Equity Shares:

To be traded compulsorily in dematerialized form ISIN No.INE471A01023

Listed on:  Bombay Stock Exchange Ltd.

Stock Code: 503796

Listed on: National Stock Exchange of India Ltd.

Symbol: "DIGJAM"

Series: EQ

Annual General Meetings:

Held at Registered Office

Last three AGMs held on

- August 25, 2011 

- January 18, 2011

- September 16, 2009

Size of unit and forms of org.

The DIGJAM is large-scale industries.

This company is a large-scale unit because according to

definitions of large-scale industry company has

investment in fixed assets is more than 5 corers.

The following characteristic of large-scale industry are

also found in DIGJAM automation.

Expert management

Enterprising management

Wide distribution of risk

Service of high skill technicians

Compulsory incorporation

An artificial person

Perpetual life

Limited liability

LOCATION OF THE UNIT

Location of the Plants

Birla VXL Limited has a composite textile mills for the manufacture of

woollen/ worsted fabrics at Jamnagar, Gujarat (DIGJAM unit). The

Company also has a ready-to-wear garment manufacturing unit at Faridabad,

Haryana (Universal Clothing unit).

Company Profile

DIGJAM Limited, an S K Birla Group Company, began its activites nearly 60

years back in Jamnagar, Gujarat. Since then, it has been catering to the ever-

growing demands of the Clothing and Fashion industry, in the domestic as well

as the international markets.

Birla VXL (BVL), controlled by the S K Birla group, was incorporated in

Mar.'48. It has diversified into textiles, solvent extraction, electricity meters,

protection relays, defence stores and heavy chemicals. All its plants are in

Gujarat and Punjab. The Japanese giant, Mitsubishi Electric Corp., holds a 2%

stake. In 1992, BVL drew up major plans for expansion and diversification.

Siddharth Sugar Products was formed to manufacture soya products in

collaboration with Central Soya, US, which has a 40% stake in the new venture.

VXL holds 60% of the total capital of Rs 45 mln ($ 1.4 mln). It signed an

agreement with the well-known Swiss company, Landis, and Gyr Energy

Management Corporation and formed VXL Landis & Gyr, to manufacture

superior ranges of electricity meters and test benches. The know-how for

electronic test instruments is being supplied by Siemens. Universal Electrics,

Universal Engineering and Sidhart Oils earlier units of Birla VXL were

subsequently transferred to the company's subsidiaries viz VXL Engineers

(earlier known as Unitron), VXL Landis & Gyr and Sidharth Soya Products

respectively. VXL Landis & Gyr Ltd, ceased to be a subsidiary with the sale of

BVXL's 34% holding to the Swiss company. OCM India, Trinity Textiles, VXL

Investments, Birla Salt & Chemicals are other subsidiaries of BVXL. Oriental

Carpet Manufacturers (OCM), Saurashtra Cement and Shree Digvijay Woollen

Mills (Digjam) are the other companies merged under the VXL banner. During

1996-97, the company expanded the spindle capacity at Digjam and OCM units

by 12232 spindles each. BVXL has also entered into a license agreement with

Haggar Clothing Co.,USA entitling it to market the readymade trousers in India

under the Haggar technology and brand. Both the textile units have received

ISO certification. It is currently installing a thermal power station at the

Saurashtra Chemicals unit which is expected to be commissioned in the second

half of 1998. The management has declared a lockout at this plant from 24th

May 1997 following labour disputes. The company has entered into a strategic

alliance with Dormeuil of France to form Dormeuil-Birla VXL, with 49%

holding, which will provide guidance on new designs and fabric quality and

also help in marketing and export of the fabrics manufactured under the

Dormeuil licence. It also formulating a new scheme to manufacture spun silk

yarn, for export and internal consumption, in financial and technical

collaboration with Masuzawa of Japan. The project which is expected to cost

Rs.18 crs will be spun off as a subsidiary. During 1998-99, VXL Investments

has ceased to be subsidiary by the virtue of its amalgamation with Janardhan

Trading Company Ltd. Saurashtra Chemicals Ltd ceased to be a subsidiary of

the company in the year 1999-2000, after allotment of shares in accordance with

the scheme of arrangement implemented as per orders of the High Court of

Gujarat. The company has divested its entire stake of 75.32% in Sidharth Soya

Products Limited(subsidiary company) in favour of Noble Grain India Private

Limited.Consequent of this divestment,Sidharth Soya Products Limited has

ceased to be subsidiary of the company with effect from 14.10.2004.

Andersen Consulting, a leading management and corporate advisors agency,

undertook a major review of the operational parameters of our textile company.

Following a thorough review of the operating and marketing practices,

recommendations were made which now form the basis of our strategic

marketing and manufacturing thrusts spanning the coming 3-4 years. The

company has also initiated steps to strengthen its organization and induct the

youth and skills necessary to attain results from this strategic shift-cum-

consolidation exercise.

While the company lays uniform stress on all fundamental aspects such as

quality, designs and cost-friendliness for products under all its brands, DIGJAM

is undoubtedly its premium fabrics brand. DIGJAM has a high-end fabric brand

presence in the domestic market, reputed for its finish and quality. The company

manufactures over 3000 design-shade combinations each year in Light Wool,

Polyester Wool and Woolen fabrics for the DIGJAM brand alone. Constant

research on designs ensures creation of innovative future trends. In the new

millennium, DIGJAM introduced super- premium fabrics designed by European

experts (with whom we work regularly and extensively) comprising fine wool

yarn of Super 150s and Super 120s and occasionally blended with exotic fibres

like Silk or Cashmere.

Dressing in India has come of age - rising affluence levels, increased media

exposure of international fashions and a growing tendency towards self-

indulgence have all contributed to it. The all-round impact is visible with the

influx of international, and domestic products and brands in both, formal and

casual wear. Indian customer has choice today, but one where we are

determined to make and sustain our mark.

The DIGJAM brand will increasingly reflect both tradition and modernity in its

positioning, product range and marketing approach. We intend to position the

brand as the clear favorite for a wider, but demanding clientele with special

emphasis on becoming the preferred premium choice for the youthful consumer.

This segment offers a high potential in terms of market size and also presents a

tougher challenge to us in terms of providing satisfaction. DIGJAM's superior

product quality is at par with global standards and many of the world's best

readymade brands use fabrics produced by us. A major proportion of our output

is exported to USA, Europe, Middle East and Far East. This bodes well for our

future as our preeminent position as one of the largest manufacturer of textiles

from India.

Our marketing thrust will over time impact all facets of the brand's interface

with consumers, including new product introductions, consumer promotions and

the rich retail experience. It must be noted that the DIGJAM brand has been

ranked at no. 4 among the top Apparel brands of our country, in a study

conducted by the prestigious Economic Times newspaper of the Times of India

group. Apparel category comprised of all the top Fabric brands as well as the

Readymade Garment brands available in the country. This particular study at

the consumer level at a national level was conducted to find out ‘India's Most

Trusted Brands.'

DIGJAM products and their ranges are available at its exclusive showrooms and

over 4000 other retail outlets across the country.

Mission

To be an enterprise acclaimed for its products & services among peers and

customers alike, by having responsible workforce & through best available

technology.

Vision

To be the clear favorite & premium contender in our principal market.

MAIN OBJECTIVES OF THE COMPANY

The main objects of the Company are as follows:

(As set out in the Memorandum and Articles of Association of the Company)

1. To carry on the business of spinning, weaving, manufacturing and dealing in

wools, jute, flax and hemp,

cotton, silk and other fibrous substances, and the preparation, bleaching, dyeing,

printing or colouring of

any of the said substances, and for that purpose manufacture bleaching, dyeing

and other materials and

generally to act as merchants for the purchase and sale of yarn, linen cloth,

woolen and other worsted

stuff, and other fibrous products and goods, whether textile, felted, netted or

looped, and to do all other

things and processes which are incidental or connected with all or any of the

foregoing trades, businesses

or industries.

2. To carry on all or any of the business of silk mercers, silk weavers, cloth

manufacturers, hosiers, carpet

makers, makers and suppliers of clothing lingerie, and trimmings of every kind,

furriers, milliners,

glovers, lace makers and dealers, feather dressers and merchants, hatters,

importers and wholesale and

retail dealers in any of the foregoing and in textile fabrics of all kinds.

3. To wash, clean, purify, scour, bleach, wring, dry iron, colour, dye, disinfect,

renovate and prepare for use

all articles of wearing apparel, household, domestic and other linen, cotton and

woolen goods and

clothing and fabrics of all kinds.

The object clause of the Company enables the Company to undertake the

activities for which funds are being

raised in the present issue.

Awards & Recognitions

Confidence in textiles 2010

ISO 9001:2000 2007

Lycra Assured 2005

Export House Certificate 2004

Export Performance Trophies

Energy Conservation

Ahead from the time

1. Using the best technology and machines available, Digjam has achieved

the ISO 9001 international quality Certification. 

2. Impressive capability: The present production capacity is over 5 million

meters per annum of woolens is one of the highest in the industry. 

3. Exporting nearly 35% if its total production. Digjam textiles are now in

use in the U.S.., Canada, U. K., Europe, Middle East Far East, Japan &

Australia.

4. For four consecutive years, Digjam Limited has received the highest

Exporter Award, in the woolen worsted category, from the export

Promotion Council, a Govt. of India Undertaking.

5. Digjam is a Unit of the trusted Birla Group of Industries with a world-

wide presence and strong reputation. 

6. The first and only worsted mill in India to be awarded the status of

"ACCREDITED MILL" from the internationally renowned DuPont.

7. Woolmark & Wool blend mark license from International Wool

Secretariat.

Digjam has been awarded the status of "ACCREDITED MILL" from the

internationally renowned DuPont and is now a part of the elite LYCRA®

ASSURED Network, which is the world's leading supply chain for innovative,

quality stretch fabrics.

In this difficult business environment, alliances are becoming more important

than ever and the ability to differentiate one's company is even more crucial.

These two business needs are the drivers behind our decision to be part of the

exclusive LYCRA® ASSURED Network.

The goal is to create value in the LYCRA® ASSURED Network as a whole,

thus making it the automatic first stop for the world's leading buyers looking for

premium stretch solutions and the latest fiber and fabric innovations and new

concepts. The expanded support and services planned by DuPont as part of the

value delivered by membership in the Network are mentioned below:

Early access to new DuPont technologies and exciting innovations not only for

Lycra®, but also for other important products like Teflon®, Tactel®,

Coolmax®, Cordura®, Supplex®, Thermolite®, and technical support.

New revenue growth opportunities.

Significant cost and competitive advantages.

Constant promotion of LYCRA® ASSURED Network benefits and the

products of its partners to key buyers.

Keeps us at the forefront of stretch innovations.

New global sourcing options - from fiber through garment.

ATS fabric library.

Exclusive or priority access to market research.

Participation in exclusive retail and consumer promotions. 

PRODUCTION

DEPARTMENT

Introduction

Production department is the most important section of

any firm without production we can’t able to run business

smoothly.

Production department gives nice result if it organized

well Jyoti CNC automation has well organically production

department.

Now we going to see the top-to-toe of production

department remember organized production gives desirable

result.

FLOW CHART OF PRODUCTION MANAGEMENT

Organization of production

department

Production manager

Purchase

Officer

Maintenance

officer

Assistance

Foreman

Workers

Infrastructure Facilities

1. Raw materials

The major raw materials manufacture of fabric at DIGJAM unit at Jamnagar

are as follows:

a. Greasy Wool: The major suppliers of Greasy Wool are in Australia and

New Zealand. Greasy Wool can be easily imported under Open General

License (OGL) and there are no restrictions on its imports.

The desired micron and quality are easily available as per specified

parameters.

b. Polyester: Polyester fibre is easily available in India and is being

purchased locally. Sometimes small quantities are imported from Germany.

c. P/V Yarn: Polyester/Viscose yarn is also easily available in India and

there are many suppliers for the same.

The major raw material required for making readymade garments at

Universal clothing unit at Faridabad is fabric, which is sourced from the

Digjam unit. Accessories and Trims at Faridabad unit are procured

domestically or from overseas market as per the buyer’s specifications. 31

2. Utilities

Water: The average monthly consumption of water at Jamnagar unit is

approx. 47,000 Kilo Ltr. and approx.1200 Kilo Ltr. at Faridabad unit. The

Company has adequate water supply for both the plants from

respective Municipal Corporations and from own and outside boring wells.

Power: The Jamnagar unit of the Company has connected load of 3,500 KA

from Gujarat Electricity Board as against its existing peak requirement of

3,300 KVA. The unit also has standby Generator Sets of 4500 KVA. The

Faridabad unit of the Company has connected load of 500 KVA from

Dakshin Haryana Vidyut Vitran Nigam Board as against its existing peak

requirement of 500 KVA.

During the three months period ended on 31/03/2006 the Company

purchased 4,396 thousand units and generated 132 thousand units through

diesel generators for its operations. Consumption of power for production of

fabrics and blankets etc. was 3.57 KWH per unit (per mtr.).

Manufacturing

"We are what we repeatedly do. Excellence therefore, is not an act but a habit"

- Aristotle

The Plant:

Digjam, a completely vertically integrated plant located in Jamnagar, has ultra-

modern production facilities to convert tops to finished fabrics through the

processes of scouring and combing, dyeing, spinning, weaving and finishing.

The Machinery:

The machinery employed in these processes is state-of-the-art, imported from

France, Germany, Switzerland, Belgium and South Korea.

Quality control:

Stringent quality checks at each stage of Production ensure that only the finest

fabric gets to wear the DIGJAM label. This has earned an ISO:9001

Certification for the plant.

Capacity:

The present production capacity is over 6 milliom meters per annum. The plant,

spread over 47 acres, employs 300 executives and a dedicated force of 1050

workers.

Better solutions:

Recently, an internal study was undertaken to improve operational efficiency

across departments. The recommendations are being implemented through a

project called 'Lakshya 2000'. In order to achieve better inventory control,

reduce lead-time and create a more responsive production planning and

control, DIGJAM has procured an ERP Solution, which is in the final stages

of implementation.

Scouring and Combing:

This fully air-conditioned department is equipped with latest CA-6 cards. To

ensure better quality control on the raw material, Digjam has introduced the

latest fully-automatic tow-to-top converter lines to prepare polyester tops.

Dyeing Section:

This is another high-tech area in Digiam, where fully automatic

microprocessor-controlled HP HT Dyeing machines are in operation. Also in

use are radio frequency dryer, Vigoureux printing and Jet dyeing machines.

The dyeing plant has a computerized IBM-based system for color matching.

Spinning Process:

Worsted spinning is carried out in a fully air-conditioned plant, equipped

with preparatory, spinning, air splicing and electronic cleaning machines.

Weaving Machines:

A well-laid out weaving shed houses 116 Sulzer-Ruti microprocessor

controlled projectile weaving machines. The Sulzers are the world's highest

rated weaving equipment, capable of producing the highest 

quality of fabrics.

Finishing:

The finest Italian, Swiss and Japanese machines finish the fabric to

perfection. These machines use a process sequence that is automatically

controlled by a punch card system. In this way, perfect uniformity is

ensured, thus avoiding lot variations.

The process of manufacturing woolen/worsted fabrics involves following

steps:

1. Grey Combing: The wool received as per specifications in different

microns is opened, scoured, dried, carded and combed.

Scouring: Removes dirt, sweat, natural grease etc.

Carding: Individualisation of fibres is achieved and it also separates

vegetable matter. It converts loose fibres into a continuous sliver for

subsequent process.

Gilling & Combing: Parallelisation of fibres. Removal of vegetable

matters and short fibres is achieved.

2. Tow to top converter: Polyester is received in a tow form and is cut in

the required length to match with wool

fibre for homogeneous blending. 30

3. Dyeing: Wool tops and polyester tops are dyed separately in required

colours. There is a separate section for

fabric dyeing for qualities that are dyed after weaving.

4. Recombing & Spinning: During dyeing process, certain degree of

disturbances take place in the fibre. Hence

parallelisation is required. In recombing we achieve this as well as remove

short fibres to achieve better

quality of yarn and improve spinning performance. Gradual reduction in

weight from top to required yarn

count is achieved through the processes of gilling, rowing and ring frame

jointly described as spinning.

Depending on the count and blend, the twist is also imparted to give

adequate strength to the yarn. This is

followed by autoconing to remove spinning faults, if any, and the final yarn

is assembled and twisted to make

it suitable for weaving.

5. Warp preparation: We use sectional warpers and depending on the

pattern required in the fabric, the creel is

arranged. The warp beams are produced followed by drawing, reaching and

denting to prepare the beam for

weaving.

6. Weaving: The weaving takes place on the loom with interlacement of

warp and weft. Number of ends and

picks are dependent on the count and weave required.

7. Mending: It is the manual operation carried out by trained workmen to

rectify spinning and weaving faults

that may be present in the fabric.

8. Finishing: It is divided into two areas, viz., wet processing and dry

processing. In wet processing, the fabric

is washed with detergent to remove stains or chemicals that are applied

during earlier operations. It also

eliminates stresses on the yarn during spinning and weaving. In dry

processing, the fabric is set for

dimensional stability, sheared to give clear fabric which is then pressed and

becomes ready for tailoring.

9. Inspection & folding: 100% of the fabric is inspected and graded

(fresh/defective). The inspected fabric is cut

into lengths as per market requirements and delivered to Warehouse.

10. Quality control: At each stage of production, control checks are

incorporated to ensure the required quality.

This is an online process. Certain tests like shrinkages, pilling, washing

fastnesses, etc., are carried out in the

Central Lab.

11. Designing: A team of qualified and experienced designers on a

continuous basis, develop fabric in required

texture, weave, colours and designs to cater to both domestic and export

requirements.

12. Production planning: It is the nerve centre, coordinating activities from

the time of procurement of orders to

delivery upto Warehouse. It also ensures timely delivery of all fabrics in the

stipulated time frame and in

assortments.

Design & Development:

Design Development & Quality Assurance:

Monitoring of Design trends / seasonal needs and constant development

work enables Digjam to respond rapidly to market demand and buyer needs.

Higher Standards of inspection at all stages, using the latest test equipment,

ensures the near perfect quality and 'integrity' of Digjam woolen textiles

Multi-terminal computers reinforce production control applicants.

The Finest Range of Fabrics:

Digjam manufacturing an impressive variety of suiting’s ranging from 100%

pure wool to wool blended with polyester & other micro fibers. The

'Panorama' range of wool form Australia and sophisticated techniques

Digjam produces glorious blends of silk, mohair, camel hair, angora and

cashmere. Fabric ranges from light weight woolens in super 120's to blends

in the 60's. The numerous shades, weaves and texture in this range of

Digjam woolens offer the best choice to buyers.

Stages of Verifications in realization of the Product

Stages & Products Parameter Tested/ inspected

A. Greasy wool Micron

Length Parameter

Strength

B. Polyester

a. Tow Dinier

Strength

b. Grey Top Length Parameter

Neps Counter

Antistat%

Fused Fibre

C. Dyes Strength & Tone of 1% Shade

D. Grey Wool Micron

Length Parameter

Neps Count

CV%

Oil

Moisture Content %

E. Top Dyeing/Top Printong Shade Matching

Fastness (wash, light, dry cleaning, K/D, heat, setting,

perspiration, water)

F. Yarn Dyeing Shade Matching

Fastness (wash, light, dry cleaning, perspiration, water)

G. Recombed Top Shade Matching

Length Parameter

Neps Count

Blend Composition (For Blended wool top only)

Oil %

Moisture Content %

H. Spun Yarn (Single) Uster U%

CVM

Thick Places

Neps

Count & Count CV%

Classimate

I. Single / Two Fold Yarn Package Inspection

J. Grey Loom sate fabric Fabric

Weight / mt

K. Fabric Dyeing Shade Matching

Fastness (wash, light, dry cleaning, perspiration, water)

L. Fabric Piling

Shrinkage (Relaxation)

Steam Stability

Dry Clean stability

100% Inspection (for shade matching & Design

checking, grading & to check width Skew and bow)

Ends / 10cm

Picks / 10cm

Crease recovery angle

Wt/mtr (in gms.)

Fabric Drape (%)

Color fastness (wash, light, dry cleaning, Water,

perspiration)

PERSONAL DEPARTMENT

Introduction

Personnel management is the part of the

management function part of the management function

is primarily concerned with the human relationship

with in an Organisation.

Personnel management is concerned with the

managerial functions (planning, Organisation,

directing controlling, co-ordination) and operative

function (production, development, compensation,

integration, maintenance) with a view to attaching,

organisation goals economically and effectively and

meeting the individual and social goals.

So, personnel management is a process of

producing the required member and person at the right

time on right place for right job and utilizing their

ability to achieved goals.

We can say that personnel management is that

part of management which covers all the important

aspects like manpower planning, selection process,

method of training and development performance

appraisal, promotion, transfer, salary and industrial

relation.

HRM

BOARD OF DIRECTORS

DESIGNATION NAME

Chairman Emeritus Sri S. K. Birla

Chairman Sri Sidharth Birla

Director Sri R. K. Choudhury

Director Dr. G. Goswami

Director Sri G. Momen

Director Sri A. C. Mukherji

Director Smt. Meenakshi Bangur

Managing Director Sri C. L. Rathi

Company Secretary &

Executive Vice President (Legal)

Sri G. K. Sureka

President Sri R. K. Kedia

Vice President (Exports) Sri P. K. Das

Vice President (Operations) Sri Virender Gupta

Vice President (Sales & Marketing) Sri Ravinder Sharma

BRIEF BIOGRAPHY OF THE DIRECTORS

S.K. Birla - Chairman

Shri S. K. Birla, the Chairman of the Board of Directors, aged 72 years, is an

entrepreneur and Director of various

companies. He has wide experience of over 53 years in the fields of Finance,

Marketing, General Management,

Board level Corporate Governance, Strategic Issues, Corporate and Finance

Structuring, Resource Mobilization,

Planning and Budgeting. He was President of various leading Chambers of

Commerce like The Federation of

Indian Chambers of Commerce, New Delhi, Indian National Committee of

International Chamber of Commerce,

New Delhi and Indian Chamber of Commerce, Kolkata, Chamber of

Commerce of G-77 countries of United

Nations, New York. He was previously a member of various Government of

India bodies including Prime

Minister’s National Integration Council, Delhi and official delegation to

UNCTAD’72 and CAFEA’66. He is also

associated with several education and philanthropic institutions.

Work Culture

Digjam Limited offers a great working environment, charged with the spirit of

competitiveness. The compensation package that Digjam Limited offers rivals

the best in the industry.

Keep checking this section because it is constantly updated, giving you

information about the latest requirements at Digjam Limited. 

As and when there is a requirement that best suits you, we will get in touch with

you.

ENVIRONMENT & SAFETY

Company is conscious of the need for environmentally clean and safe operations.

Both the existing plants of the Company have obtained “No Objection” certificates

from concerned Pollution Control Authorities. However consent for pollution

control in Faridabad unit has expired on 31/03/2006. The Company had applied

for renewal of the consent and same is awaited.

Company is conscious of the need for environmentally clean and safe

operations. Our policy requires all operations to be conducted in a

way so as to ensure safety of all concerned, compliance of statutory

and indust r ial requi rements for envi ronment protect ion and

conservation of natural resources.

HUMAN RESOURCES

Management recognizes that employees represent our greatest

assets and it is only through motivated, creative and committed

employees that we can achieve our aims. Hence, the Company

attempts to take care of welfare and betterment of employees.

Digjam Achievers Unlimited (DIACHS) Club.

A unique and one of kind exclusive club created for the first time in the

industry. Based on certain parameters and criteria, top Wholesalers,

Retailers and Digjam Retail Showrooms were selected for the DIACHS

Club. 

Objective is to work together for mutual benefit and increase our business.

To reward the good and consistent performers and to enter into a committed,

long-term relationship with the Dealers. Membership valid for 1 year. The

members have the following benefits:

Special incentive on turnover on achievement of a minimum turnover

target (based on certain parameters).

Special Qualities / Design Selection: Special qualities to be developed for

‘Achievers Unlimited’ members. Participation and involvement of club

members for range development.

Special samples of selected / fast moving qualities to be provided to club

members.

Achievers Unlimited Members Meet - To participate in ‘DIACHS Meet’

organised once in a year. In such functions, the top performing members

to be awarded and honored by top management.

Special Service: To give priority to them in order procurement and

execution. Suitlengths to be despatched to club members through courier

on paid basis.

Special Certificate recognizing members as part of the Digjam Achievers

Unlimited family.

The formation of this unique club was made know to the achievers at

Dealer’s Meet organized at ‘The Intercontinental, Goa’ in September, 2004.

Manpower

The present manpower strength of the Company is as follows:

Sr.No. Category No.of employees/staff/workers

1 Management personnel 6

2 (a) Senior Managers 15

(b) Managers 51

3 Covered Staff/Workmen 1119

4 Badli worker 269

5 Contractual workers 129

Total 1589

MARKETING

DEPARTMENT

Introduction

Various experts in different ways have designed the

term marketing. But the presentation of them is almost same

all of them agree with the dame thing that it is the

communication of 4 Ps.

1 s t product.

2nd price.

3 rd place.

4 t h promotion.

“Marketing department is the blending of four inputs

which from the core of whole marketing system”.

“Market is the set of marketing tools that the firm use

to pursue its marketing objectives in the target ”.

From the above definition it is clear that marketing

department is great part of firm. Now let us go through how

our company under consideration Jyoti CNC does its

marketing.

Quality Policy

Our company is committed:

1. To achieve the highest quality standards of its fabrics and services for

maximum customer satisfaction by following systematic quality

management system.

2. To continually improve the effectiveness of the quality management

system.

Quality Assurance

Hard work and exhaustive research by a team of expert textile engineers and some

of the world's most brilliant creative designers has created the Quintessential

Quality of Digjam.

Fine, Soft, Light, Textured like no other… superior product quality, at par with

global standards. Impassioned to surpass anything created earlier, Digjam Team

has honed its talents, sharpening insights, enabling excellence at every step. 

And imparting that unique something that can only be experienced… top quality

fabric for that great suit. 

Higher standards of inspection at all stages, using the latest test equipment, ensure

the near perfect quality and 'integrity' of Digjam fabrics, which go through a

number of stringent tests and verifications before it comes to you.

Quality Control 

Stringent quality checks at each stage of Production ensure that only the

finest fabric gets to wear the DIGJAM label. This has earned an ISO:9001

Certification for the plant.

PRICING POLICIES

Price is the powerful marketing instrument. As a marketing weapon, pricing is

the big gun. Pricing a product is one of the most important and critical areas in

the marketing management. A price policy is the standing answer of the firm to

recurring problem of pricing.

This company is following penetration pricing polity i.e. the company has

adopted a low price. The company has adopted penetration pricing because of

the following reasons;

A: There is a cutthroat competition in the forging industry. So in

order to capture and hold a share of market position the company has

adopted penetration pricing.

Marketing & Selling arrangements

BVXL manufactures and markets its suitings fabrics under its well

established and famous brand - “DIGJAM”.

The Company’s DIGJAM unit at Jamnagar is one of the major producers of

quality worsted woollen fabrics in the country and its products carry the ISO

9002 and the Woolmark certifications.

The Company is backed by strong designing cell and is supported by

regional sales representatives spread throughout the country. The DIGJAM

unit has a network comprising of about 1500 direct dealers in domestic

market. Apart from this, there are about 4000 tag dealers who are serviced

by the wholesale channel. For export marketing, the Company has an office

in New York, USA and has appointed Export agents in various parts of the

world. The Company is one of the largest Indian exporter of worsted

woollen fabrics.

DIGJAM has been awarded the status of "ACCREDITED MILL" by the

internationally renowned DuPont and is

now a part of the elite LYCRA®

ASSURED Network, which is the world's leading supply chain for

innovative, quality stretch fabrics. The Company has not entered into any

collaboration agreement.

Business Strategy

Established strong presence in the fast growing Ready Made Garment

segment

Traditionally, the worsted fabric industry focused on providing fabric, which

were customized into garments by tailors. This business model is slowly

giving way to Readymade Garments (RMG) under brand names. Some of

the other trends include:

Preference of casual wear to formal wear (woollen / worsted fabrics

considered to be suitable only for suits and other formal wear);

Lightweight fabrics and fabrics that require less care like wrinkle free

fabrics, etc. are preferred; In view of these developments, the new proposals

(in addition to traditional business line) are as follows: 32

Prioritise and expand Company exclusive show rooms to sell fabric as well

as “branded RMG” (under DIGJAM) as this will boost the overall plans of

the Company in providing “one stop” shopping

experience to customers; Sell fabric and “branded RMG” direct to

department chains and malls; Sell fabric directly to RMG brands –

Domestic as well as exports; Sell garment packages to RMG brands /

department chains, malls in Buyer’s brands (Private Label) -

domestic as well as export market; In short to medium term – focus on

fabric selling and in medium to long term – focus on garment selling both

branded as well as non-branded;

Build a portfolio of non-worsted outsourced fabrics to offer a wide range to

the consumers; Building better sales infrastructure

The key steps in this regard include:

Strengthening the sales and marketing channels.

Expanding geographical reach through increasing dealerships, opening

exclusive showrooms; besides redesigning the sales terms to ensure greater

through put By aggressive & intelligent use of both electronic & print

media to increase the visibility of the ‘DIGJAM’

brand;

Improving product mix:

In past few years, the Company’s product mix was skewed towards

‘Economy’ segment, which impacted the

margins significantly. As part of its strategy, the Company proposed to

reorient its product mix to cater more to

‘Standard’ and ‘Premium’ segments thereby increasing the overall margins.

Future Outlook

In Post –Quota era, there are huge opportunities for those who will innovate,

offer product-plus, cost-efficiency

and customer service.

Suitings market in India is growing and formals are in vogue. High exposure

to international business, invasion of TV-Mobile-Internet, high infusion of

FDI, better levels of air-conditioning in offices – cars - homes are some

triggers to it's growth. The Company believes that the market will grow

much faster in coming years. The Company has a distinct image in the

market and will endeavor to strengthen it further. The Company is well

placed amongst the peer set competitors.

Competitive Strengths

Presence - DIGJAM is an old and established brand in the market and its

long lasting presence provides it with a good positioning in the market.

Exports – Consistent growth in exports over the years - almost all major

countries.

Flexibility - Has been flexible to adjust to change in market conditions in

serving the dealers. Well defined and market friendly sales policies.

Quality Product – The finish imparted to its fabric is comparable to the best

available in market.

Product Range – It is big and diverse enough to have a fair representation

for all segments. Strong in Economy and Standard range

Distribution Network – A strong distribution network comprising of Retail

Showrooms, General Retailers and Wholesalers. An all-India presence.

Quality Management System - DIGJAM unit has been accredited with ISO

9002 : 2000 Quality Management System Certification.

Principal Competitors

The woollen/worsted fabric industry in India is dominated by a few major

players viz. Raymond Ltd (Raymond),

Birla VXL Limited ( DIGJAM), OCM India Ltd. (OCM), a subsidiary of

Birla VXL, Shri Dinesh Mills Ltd

(Dinesh) and S Kumar’s (Reid & Taylor) accounting for 88% of the total

domestic market share. Apart from this, Grasim Industries Limited,

Bhilwara Suitings Limited and Reliance (Vimal) are also present in this

segment.

Insurance: Adequate Insurance Cover has been taken for all the properties

viz.

FINANCIAL

DEPARTMENT

INTRODUCTION

Financial management is that managerial activity which is concerned with the

planning and controlling of the firm’s financial resources. Through it was

branch of economics till 1980. As a separate activity or discipline it is of recent

origin. Still, it has no unique body of knowledge of its own and draws heavily

on economics for its theoretical concepts even today.

Now days, to finance business company has to maintain the financial status at

the required level and also has to show financial stability of the company, and to

get finance the company has to show cash flow, important ratios, working

capital management, etc

FINANCIAL PLANNING

Financial planning is based on the going concern keeping in mind working

capital. Financial planning is based on the product sold to customers. It should

estimate the resources required to carry out operations and determine how far

these resources can be generated internally by the firm itself and how far they

will have to be obtained externally.

Financial planning is primarily a statement estimating the amount of capital and

determining its composition. It includes:

Determination of the quantum of finance, i.e. the amount needed for

implementing business plans.

The determination of the form and proportionate amounts of securities.

Laying down the policies as to the administration of the financial plans.

CAPITAL PLANNING:-

Capital planning is based on year to year increasing in turn over to that

extent what machinery to be purchased that is capital planning.

WORKING CAPITAL:-

Working capital is that which is held to meet day to day requirements of

business, which changes from day to day, and which is converted into

cash continuously. The risk factor is low in it. Working capital is also

known as current capital, circulating capital and floating capital. So it is

also known as a variable cost.

PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED

ON SEPTEMBER 30 TH , 2010 AND MARCH 2008-2009

PARTICULERS 2009‘10(18Month)

(lakhRs.)

2008‘09(12Month)

( lakhRs.)

INCOMES

a. Sales 185,93.26 139,92.89

b. Other incomes 1,16.54 1,01.41

TOTAL 187,09.80 140,94.30

EXPENDITURE

Materials 86,00.44 64,95.94

Manufacturing &other expense 98,76.99 72,12.05

Interest &financial changes 11,24.76 10,98.53

TOTAL 196,02.19 148,06.52

P&Lbefore dep,exceptional items &tax (8,92.39) (7,12.22)

Dep. &Amortisation 7,65.79 5,42.35

(16,58.18) (12,54.57)

Exceptional items 60,48.61 1,18.90

P&L before tax (43,90.43) (11,35.67)

Provision for tax:

Less:Fringe benifite tax _ 20.57

Less:Excess provision in earlier years 21.54 _

Net P&L after tax 44,11.97 11,56.24

Balance brought forward (137,53.45) (125,97.21)

Balance carried forword to B/S (93,41.48) (137,53.45)

Earning per share(EPS) without

considering exceptional items:

Basic &Diluted EPS-Rs. (2.79) (1.88)

After considering Exceptional items

Basic &Diluted EPS-Rs. 6.01 1.71

BALANCE SHEET AS ON 30 Th SEPTEMBER, 2010

PARTICULARS Sch

No.

As at sep.

30,2010(la

kh rs.)

I.SOURCES OF FUNDS

a. Shareholders’ funds 1 90,25.79 88,75.79

b. Share Capital 2 5,00.00

LOANS

1. Secured Loan 2 53,14.60 127,84.46

2. Unsecured Loan 3 23,10.15 18,82.47

TOTA

L

171,50.54 235,42.72

II.APPLICATION OF FUNDS

1. Fixed Assets 4

a .Gross Block 248,92.60 249,77.28

b. Less:Accumulated Depriciaton 194,07.57 187,60.07

c. Net Block 54,85.04 62,17.21

d.Capital Work in Progress including

capital advances

4.47 28.55

54,89.51 62,45.76

2. Investments 5

Current Assets, Loans and Advances

a. Inventories 6 38,70.32 39,84.85

b. Sundry Debtors 7 24,88.07 31,57.20

c. Cash And Bank 8 2,12.66 60.66

d. Loans and Advances 9 13,86.56 13,92.31

Less: Current Liabilities & Provisions

a. Liabilties 10 52,52.70 50,05.38

b. Provisions 11 3,85.36 4,87.33

TOTAL CURRENT LIABILITIES 56,38.06 54,92.71

Net Current Assets 23,19.55 31,02.31

TOTAL 171,50.54 235,42.72

CONCLUSION

DIGJAM Limited, an S K Birla Group Company, began its activites nearly

60 years back in Jamnagar, Gujarat. Digjam is a composite Worsted Mills

equipped with latest state of the art plant and machinery. It is an ISO 9001

certified Company, where quality assurance and customer satisfaction is our

prime endeavor .To achieve quality standards they have a fully equipped R

& D Dept., which ensure latest testing standards. They are having an ultra

modern composite unit with a production capacity of over 5 million meters

per annum, of which nearly 35-40% (approximately) is exported to major

countries across the globe. Apart from manufacturing quality fabrics, they

produce Blankets and Lohis also.

Future Plans

The global trend in textiles is shifting to ready-to-wear (RTW). We, at Digjam

Limited plan to gear ourselves for this shift with the launch of an exclusive

range of RTW.

The RTW range will be available across India through a chain of select

showrooms, run by franchisees and dealers.

BIBLIOGRAPHY

BOOKS:-

KOTLER PHILIP, PEARSON PRENTICE HALL PUBLICATION,

MARKETING MANAGEMENT, 13TH EDITION – SECOND

IMPRESSION - 2009

SHERLERKER S. A., HIMALYA PUBLICATION, MARKETING

MANAGEMENT, REVISED 12TH EDITION - 1991

WEBSITE:-

www.digjam.co.in

www.digjamsuiting.com