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Index

Sr.

No

Point Chapter 1 Page no

1 Company Profile

1.1 Name of Org

1.2 Business Philosophy

Point wise make a heading of

chapeter name write details of all

the chapters

For all the subtopic first you need to explain the concept in brief and then give information relevant to

company

Eg:- Recruitment and Selection explain in brief the concept and then in next para share the info abt the

company. It needs to be done for every point.

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Instead of Mission and Vision mention a point of Corporate Charter and write below mentioned

Charter

We believe that dreams for the future translate into realities of the present. Extending thisphilosophy, the Group adopted this Corporate Charter, established by our Chairman.

ANSWERS ASSESS THE PRESENT,QUESTIONS QUALIFY THE FUTURE.

DECISIONS DEFINE THE PRESENT,

ALTERNATIVES ASPIRE THE FUTURE.

STRENGTHS SUPPORT THE PRESENT,

OPPORTUNITIES ORIGINATE THE FUTURE.

CONCLUSIONS CLARIFY THE PRESENT,

ANALYSIS ARTICULATES THE FUTURE,

SOLUTIONS STATE THE PRESENT,

METHODS MANDATE THE FUTURE.

SUCCESS SUSTAINS THE PRESENT,

STRUGGLE SETS THE FUTURE.

ABILITIES ACKNOWLEDGE THE PRESENT,

ATTITUDES ASCERTAIN THE FUTURE.

OUTCOMES ORCHESTRATE THE PRESENT,

INTENTIONS IMPROVISE THE FUTURE.

ACTIONS ATTRIBUTE THE PRESENT,COMMITMENT CORRELATES THE FUTURE.

REALITIES RATIONALISE THE PRESENT,

DREAMS DESTINE THE FUTURE.

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Form of OrganizationThere are many forms of business organization viz., sole proprietorship, joint Hindufamily business, partnership, company and the co-operative organization. The section of

a suitable form of business organization is a verysignificant decision for the promotersof a business enterprise; because much of success or failure of business is likely todepend on this choice. The basic objective of the choice of a suitable form of businessorganization is to select that form, which will help the business enterprise in solving itsproblems- leading to its growth and prosperity.

Advantages & Disadvantages of the Form of Organizationof Ashima Group i.e. - Public Ltd. Co.Advantages:

(1) Separate legal existence: Being a separate legal entity, it acts under its own

name. The company may own and dispose off property in its own capacity. It canalso enter into contracts with members and outsiders.

(2) Limited liability: Liability of the members of a limited company is limited to theface value of their shares. Members are not required to contribute to the liabilitiesof the company beyond the nominal value of shares in case of liquidation of acompany.

(3) Transferability of shares: Shares in a company can be transferred fromoneperson to another person without the consent of the other members.

(4) Continuity of existence: The life of a company depends upon the terms of itsmemorandum of association, which may be for a specified period. The death orinsolvency of its members does not affect the existence.

(5) Control: The control over a company can be secured by acquiring majority of thecompanys shares.

(6) Social benefit: The social benefit of a company is that it gives employment to anumber of persons, and contributes to the growth and the development of thenation.

(7) Limitation of action: A company may perform only those acts, which arepermitted by its memorandum. The scope of the companys activities is limited byits memorandum.

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Disadvantages:(1) Lack of secrecy: The Board of Directors, in which a number of persons maybe involved, manages the company. All important matters are discussed in themeeting of directors. In such circumstances, it is rather difficult to maintain the

secrecy of the business.(2) Difficulty in formation: Many legal formalities are required to be completedfor obtaining a certificate of incorporation.(3) Fraudulent management: There are several provisions under the Companies

Act to check frauds; yet frauds are common in many companies.

Organization StructureThe Organizational Structure, which really refers to the chart oforganization, is anoutcome of undergoing the process of organization. It reflects the authority andresponsibility of managers and their subordinates. Its structure reflects the fundamentalobjectives, policies, procedures etc. of the organization.Organizational Structure helpsmanagement in gaining objectives efficiently, in a changing future environmentalscenario. Depending on enterprise situations, an organization structure may takevariations.

On the basis of authority-responsibility relationships, organizations might,broadly be of the following basic types:(I) Line organization(II) Functional organization(III) Line and staff organization

Hierarchy

While looking to the Organizational Structure of Denim Production of Ashima, one could

identify that it is a Functional organization.

A Functional organization is one, in which exercise of functional authorityis done by a functional manager or specialist-not only over his own subordinates;but also over all subordinates in all other departments; in so far as, the particularfunction, pertaining to his specialization is performed by them.

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Reasons for choosing a particular locationGujarat is a state where production of cotton is done on large scale so being inGujarat they are near to the raw material.

Distribution center is also near to the location of the factory.

Skilled labour is also available easily.Infrastructural facilities such as Water, Sewage, Electricity, Tar Road, Access andConnectivity to Public Transportation, Goods Transportation, Post, Courier andTelecommunication, Health and Safety Service, etc. are also offered by thelocation.So because of the above reasons the location of the factory is in theKhokhra Mehmedabad area which provides all the necessary facilities for aTextile Industry.

Benefits of Location

The company gets the following advantages by being present in thelocation where it is at present:

Constant supply of electricity.

Skilled labour is available at cheaper rate.

Well-developed infrastructural facilities.

Market center is located nearby.All the above advantages help the industry to reduce its cost of productioneffectively.

Limitations of LocationThere are no major limitations of the current location.

Plant LayoutThe Company is having Process Layout for its Denim Production, whichis also known as Functional Layout.

Measures to control pollutionGroup Ashima firmly believes that they are the guardians of tomorrows legacy. All of us

should work towards conserving our environment and preserving our natural resources.Their commitment to the `green cause is reflected in their thoughts as well as deeds.Their commitment is towards cleaner production,environmental protection & sustainabledevelopment. Towards this goal they have invented a technology for an innovativeand noble approach to treat textile waste by enriched biomass, opening up a newhorizon for the environmentalists. The excess biomass can be used as a bio-fuelleading to prevention of air pollution and conservation of water and energy.

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Their Corporate Headquarters- Texcellence Complex is in the midst of a lush greenpark with excellent landscaping and thick green foliage, large artificial lake, garden,lawnsThey adhere to the most stringent of pollution control norms. There aresixprimary and secondary effluent treatment plants treating a total 3360 M3 perday.Their effluent treatment norms are in tune with world standards.

Area of FactoryThe factory is spread over 70 acres of land

Marketing PositionThe Group Ashima ranks second in India among the 100% cotton fabricmanufacturers.

Market ShareMarket share of the group is more than 50% in Denim in Ahmedabad.

Physical Distribution & Channels

Physical DistributionThe Distribution of the products to the end users is done through theIndian garment

exporters; their domestic brands and other brands viz. Raymond,Pantaloon, Lee,Wrangler, Ginny & Johnny, Killer, Levis in USA, Ring Denim in UK, etc.

Their Domestic Brands are as follows:

ICON brand of fabrics

Frank Jefferson brand of garmentsThere are both company operated and franchisee showrooms ofFrank Jefferson brand in various markets across the country.

Distribution ChannelThe Distribution Channel of the companys product could be understoodwith the help of given diagram:

GroupAshimaAshimasDomesticBrands

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Other Brands(InternationalandDomestic)Indian

GarmentExportersRetailShops

Advertising & Sales Promotion

Advertising:The company sometimes shows the advertisements of the DomesticBrands i.e. - ICON and Frank Jefferson in News Papers.

Sales Promotion:The company uses mainly two strategies for the sales promotion which areas follows:

1. Value Added Products:The company used to have Value Added Products(same products with new and improved qualities) to create difference among theothers and their products, so that the big brands purchase the fabrics and garmentsfrom them.

2. Nomination of the product:The company prefers to get their fabric nominated,if the fabric is once nominated then they have the upper hand, they can quote theirprices. To nominate their fabric they approach to different brands, show them thefeatures and types of the fabric they have and offer them to buy their products.Sometimes they also go to the showrooms of the brands and identify that whichkind of fabric is sold, and then they approach those brands and offer them to buysame kind of fabric.

Level of competition

The level of competition in the cotton textile industry is high. The majorcompetitors of the Company are Gindal, Shripal and Arvind.

External or export oriented marketingAshima exports its fabrics to more than 45 countries. Around 60% of product is exportedto USA, Egypt and Europe. More than two-thirds of their production of 60 million metersof woven and 2800 tones of circular knitted cotton fabrics is meant for exports. Ashimaalso markets its fabrics to more than 150 Indian garment exporters.

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Human Resource ManagementNumber of workers

The total strength of the people working in the company is 4000. Among them 600 aremanagerial employees and 3400 are workers. Out of 3400 workers, 400 workers areengaged in the Denim production process.

Selection & RecruitmentThe process of recruitment and selection starts only after the approval of Ms. --- thehead of HR and IR department. For recruitment and selection first preference is givento the employees references, second preference is given to the www.naukri.com,www.monster.com and third preference is given to the manpower consultanciesviz. Sarthi Consultancy, Career Mosile Consultancy, Anil Consultancy.

Training & DevelopmentIn the field of human resource management, training and development is the fieldconcerned with organizational activity aimed at bettering theperformance of individualsand groups in organizational settings. It has been known by several names, includingemployee development, human resource development, and learning and development.The Company is organizing young engineers forum on regular basis.Under this forumengineers are giving lectures to the employees so that they can update their knowledge.

Emoluments & CompensationEmoluments

Amounts received from an office or employment including all salaries,fees, wages,perquisites, and other profits as well as certain expenses and benefits paid or providedby the employer, which are deemed to be emoluments.

CompensationCompensation is something which is given to reduce or balance the badeffect of loss, suffering or injury.

Performance Evaluation & promotion

Performance appraisalPerformance appraisal is an evaluation of the performance of an employee. The resultsof the appraisal may be used in deciding an employees pay, career prospects, training,or job satisfaction. It is usually carried out by means of an interview with the employees

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immediate manager, although in some cases self-appraisal may be used. In mostorganizations appraisal consists of assessing the employees ability to meet objectivesand his or her general demeanour as a member of the workforce. The company ishaving its performance appraisal usually every month starting from March for which theyare using the Rating Scale Method.

Trade union & Managements relation with the same.

Trade unionTrade union is an organization whose principal purposes include the regulation ofrelations between employees and employers or employersassociations. Unions affairsare regulated by the Trade Union Act (1984) and theEmployment Act (1988).

SeparationBefore separation 1 Month or 3 Months notice period is given so that onecan improve himself.

Research and Development

Quality assurance perhaps assumes more importance than any other aspect for thegroup. And rightly so,because the discerning customers that the group services,wouldwant nothing but top-notch quality.Towards this end they have one of the best SQCLaboratories, any textile infrastructure can boast of.Group Ashima is equipped withtesting laboratoryknown as Lalita Hargovandas Research Centre. This research centre

was established in 1996. This research centre cum lab is well equipped withultramodern testing facilities and well-trained technical experts. Apart from this their labis well conditioned round the clock as per international standard and is continuouslymonitored by a temperature - humidity chart recorder Well-known national as well asinternational garment brands/retailers have approved this lab.Their lab is accredited bymanufacturers to retailers, as they carry out in-house testing with high standard ofaccuracy and reliability.The laboratory is involved in the testing of cotton,yarn, greyfabrics, dyes, chemicals, auxiliaries and different kind of fabrics at various stages ofprocessing.They have for cotton testing HVI-900 system, version 3.5 for testing length,strength, elongation,colour and micronaire; micro dust trash analysis 3 fortestingfresh, fibre fragments and micro dust in raw cotton apart from a host of other equipment

for micronaire testing, fineness and maturity testing of raw cotton, Lea making for count,CSP measuring, count strength, count determination and the likes. The yarn both in-house production and outside purchase undergoes severe test before weaving. TheUster Classimat III analyses the fault in matrix order of single ply yarn. The UsterTensojet tests the tensile strength of yarn at speeds of 400, 200, 100 and 50 metersper minutes. The Uster Evenness Tester III checks the yarn imperfectness. They alsohave electronic TPI tester, Sigmascope Uster Tensokid and the like.The grey fabrictesting is elaborate too. The Alphatens tests the tensile strength of fabric at a speed

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12 FindingsThe Company is not getting the benefits provided by the Govt. to the industrieslocated in the Industrial Area because it is not located in an Industrial Area.

The factory is spread over 70 acres of land and this space is not utilized completely bythe Company.

Ashima is the Company which is despite running at its full capacity making loss; thereason is that it has not been able to recover from the onslaught of the recession.

13 SuggestionsCompany should expand its production by utilizing its free land area around itsproduction unit.

As there is an increasing demand of Denim in the market so the company shouldincrease the production of Denim by setting more machines, in order to increase itsprofitability.

Company should try to increase the efficiency and reduce the cost of production asmuch as possible for speedy recovery.

Strategies should be made by the Company to face the future recession sothat it may not suffer like it suffered in the last recession.22