Presentation on 6 weeks summer training in Oswal Woolen mills

Presented By:-

Kabir Sandhu

94972238275

India Textile Industry

India textile industry largely depends uponthe textile manufacturing and export.

India earns about 27% of its total foreignexchange through textile exports.

Further, the textile industry of India alsocontributes nearly 14% of the totalindustrial production of the country.

It also contributes around 3% to the GDPof the country.

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

It not only generates jobs in its ownindustry, but also opens up scopes for theother ancillary sectors.

India textile industry currently generatesemployment to more than 35 millionpeople.

It is also estimated that, the industry willgenerate 12 million new jobs by the year2010.

Various categories

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

Cotton Textiles

Silk Textiles

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

Strengths

Vast textile production capacity

Large pool of skilled and cheap work force

Entrepreneurial skills

Efficient multi-fiber raw materialmanufacturing capacity

Large domestic market

Enormous export potential

Very low import content

Flexible textile manufacturing systems

Weaknesses

Increased global competition in the post2005 trade regime under WTO

Imports of cheap textiles from other Asianneighbors

Use of outdated manufacturing technology

Poor supply chain management

Huge unorganized and decentralizedsector

High production cost with respect to otherAsian competitors

NAHAR GROUP OF COMPANIES

OSWAL WOOLLEN MILLS LTD.

It was established in 1949

It is manufacturing all type of blendedworsted yarn, weaving yarn, lois, shawlsetc.

The company is proud to have highlypopular bounded products of knit wearMONTE CARLO and CANTERBURY.

OWM has seven units in differentlocations in Ludhiana engaged intodifferent manufacturing and tradingactivities.

NAHAR INDUSTRIAL ENTERPRISESLTD.

This company was incorporated inSeptember 1983

It is manufacturing edible oils, toiletsoap, fatty acids, citricacid, glycerin, oxygen gas andsolvent, extracted riceoil, vanaspati, sugar and rolling mill.

NAHAR SPINNING MILLS LTD.

It was established in December1980.

It is engaged in manufacturing of alltypes of cotton, acrylic and blendedyarns, as well as knitted fabrics andgarments.

GROWTH CHART- FEATURES

Group turnover is Rs. 2500 crore.

Export market: U.S.A., UnitedKingdom, Germany, Russia, Japan, Australia, New Zealand, Holland, Thailand, SouthAfrica, Singapore, Taiwan, Canada, Egypt, Israel and Bangladesh.

No strike/accident situation and near zerostaff turnover.

Important brand names are “MONTECARLO” and “CANTERBURY”.

OWM were the proud recipient of the“best exhibited products” award fromthe international wool secretariat for twoglamorous brands.

Product portfolio: spinning, knitting,fabrics processing, hosiery garments,knitwear, sugar, infrastructuredevelopment and information technology.

COTTON COUNTY is there emerging readyto wear brand.

Beyond there professional portfolio lies thehuman group that has always been deeplyenriched in social upliftment at every levellike:

Jawahar Lal Oswal Public Charitable Trust

Mohan Dai Oswal Memorial Hospital

ACHIVEMENTS

First gold trophy in export in 1989.

First silver trophy in Hosiery in 1990export award consecutively for five years(1989 to 1994) for export of woolenhosiery garments.

International award for excellenceperformance in export in 1993.

Silver trophy for 2nd highest performancein 1998-1999

ISO 9002 received in 2001.

NAHAR EXPORT LIMITED is the recipientof BEST EXPOTER for the year 2002-03.

NIEL, GARMENT UNIT is the recipient ofstate level safety award.

Exports to high quality conscious countrieslike USA, UK, Germany, Russia, Japan,Australia, New Zealand, Holland, andmany more

OSWAL WOOLLEN MILLS LIMITED

Constitution:-

Public Ltd. Company

Year Of Establishment:-

1949

Locations:-

Registered office:-

G.T. Road, Sherpur,

Ludhiana. 141003

Punjab (India)

Works:-

Miller Ganj, Ludhiana-141003.

Industrial Area-A, Ludhiana-141003.

G.t. Road, Sherpur, Lidhiana-141003.

107, Cochrane Basin Road, Chennai.

Plot No. 222, Sector 18, Gurgaon.

Management Structure &

Departments

List of Boards of Directors:-Mr. Jawahar Lal Oswal Chairman-cum-Managing Director

Mr. Amarjeet Singh Director

Mr. Dinesh Oswal Director

Mr. Kamal Oswal Director

Mr. Sandeep Jain Executive Director

Organizational Graph

Departments In Oswal Woollen

Mills

QUALITY CONTROL

HUMAN RESOURCE DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

PRODUCT PORTFOLIO OF OWM

Wool/ Acrylic Top

Yarns:-

• Weaving wool

• Hand knitting yarns

• Hosiery yarns

Textile Fabrics:-

• Blankets

• Scarf’s

• Gents Lohis

• Woolen Shirting (only for defence)

• Shwal

• Woolen Suiting

Hosiery Knitwear Products:-•Lady Cardigans

•Pullovers

•Woolen Vests, Undergarments for Men

Monte Carlo and Canterbury are popular brands of international quality are segments of OWM’s products.

SWOT ANALYSIS

Strengths of the company

Good brand equity

Many persons are working here for morethan 50 yrs. This shows commitment ofemployees towards their org.

Good training programs by OWM for theiremployees.

Laboratories for testing the quality of theproduct

Weakness of the company

Lack of professionalism

OWM is dependent upon foreign producersfor greasy wool.

Depend on the third party for sale and thedistribution of the product.

Poor after sales services.

OPPURTUNITIES

Fabrication for various companies likesNIKE, MARKS AND SPENCER, GAP, WILLS,etc.

Manufacturing of kids garments

Expanding the business in Finance sector

THREATS

Mushrooming and upcoming of smallhosieries in Ludhiana

Seasonal demand for their major producti.e. pullovers

“ A study on Export

competitiveness of the textile

and garment sector”

Objectives

To study the export import procedure and documentation of Oswal woollen mills.

To study the export competitiveness of textile and garment sector in Ludhiana market.

To study the problems of textile exporters in Ludhiana.

Research Methodology

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how the research is done scientifically.

RESEARCH DESIGN:-“A research design is the arrangement of conditions for collection an analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.”

In this research project, the research design is descriptive in nature.

SOURCES OF DATA

PRIMARY DATA: The primary data is collected by structured questionnaire administered by sitting with guide and discussing the problem.

SECONDARY DATA: It includes material collected from newspapers and journals.

Data collection instruments: E-mails Questionnaire Telephone calls

Universe:-All the organisations whichare into the field of textile andclothing industry

Population: -All the organisationswho are in the field of textile andclothing industry in Ludhiana.

Sampling technique:- : conveniencesampling

Size of sample:- 19

The Composition of Indian

Textile Exports

The Textiles exports basket consists of Ready-made garments, Cotton textiles, Textiles made from man-made fibre etc.

The major export earner is ready-made garments followed by cotton textile and manmade fabrics in April-Oct 2008.

All The textile items are growing impressively

except Cotton Textiles, Silk, Ready Made Garments and Handicrafts.

Textile export (value in $ US

million)

Country-wise Export of Textile Items by

India

Data Analysis and Discussions

Table:4.1: Primary business of

your company (N-19)

Options number of

respondents %age

Manufacturing 18 95%

Trading 1 5%

Multinational 0 0%

Others. 0 0%

Total 19 100%

Table 4.2 : %age of exports to

total sales (N-19)

Options

number of

respondents %age

1-10% 4 21%

10-25% 8 42%

25-50% 4 21%

50-75% 2 11%

Above 75% 1 5%

Total 19 100%

Table 4.3 : Threats of exchange

rate fluctuations (N-19)

options

number of

respondents % age

highly disagree 0 0%

disagree 1 5%

neither agree nor

disagree 0 0%

agree 17 90%

highly agree 1 5%

Total 19 100%

Table 4.4 : Any increase in cost

of production of textile products

(N=17)

optionsrespondents %age

yes 17 90%

no 2 10%

total 19 100%

Table 4.5: Range of increase in

cost of product (N-17)

options

number of

respondents %age

1-5% 7 41%

5-10% 7 41%

10-25% 3 18%

25% & above 0 0%

total 17 100%

Table4.6: Any increase in price

competitiveness of your product (N-

19)

options

number of

respondents %age

yes 19 100%

no 0 0%

Total 19 100%

Table4.6: Satisfaction level of

quality of infrastructure (N-19)

options

number of

respondents %age

yes 0 0%

no 19 100%

total 19 100%

Table4.7: Attention requires

towards physical infrastructure

(N-19)

options

number of

respondents % age

Road 3 16%

Rail 3 16%

Airport 0 0%

Port 7 37%

Power 5 26%

Other 1 5%

total 19 100%

Table 4.8: satisfaction with the

transparency of Indian govt.

(N-19)

options

number of

respondents % age

yes 10 53%

no 9 47%

total 19 100%

Table 4.9: labor productivity

affects your business(N-18)

options

number of

respondents % age

highly disagree 0 0%

disagree 1 6%

neither agree nor

disagree 1 6%

agree 16 88%

highly agree 0 0%

Total 18 100%

Table 4.10: Introduced any

measures to enhance labour

productivity (N-18)

options

number of

respondents %age

yes 3 17%

no 15 83%

total 18 100%

Table 4.11: Competitive

advantage of textile industry (N-

19)

options

number of

respondents %age

cost of the product 5 27%

latest technology 1 5%

quality of product 12 63%

any other 1 5%

total 19 100%

Table 4.12 Factors affecting

exports (N-19)

NO.OF

RESPONSES

MEAN

EXPORT TAXES 47 2.47

EXPORT QUANITATIVE

RESTRICTION

73 3.84

CERTIFICATION 62 3.26

INSPECTION FEE 70 3.68

STATE TRADING

ADMINSTRATION

70 3.68

NON TRADE

BARRIERS

77 4.05

Limitations

Generally the respondents were busy in their works and were not interested in responding.

Some respondents were not clear about their own facts findings.

The respondents in the study may not represent the true characteristics of the target audience.

FINDINGS Exporters are the manufactures of textile and

clothing industry. Most of the companies are in manufacturing business.

Export sales in between 10-25% and rest of the produced material consumed in domestic market.

Exporters face problem of exchange rate fluctuations in foreign market.

Cost of production is increased due to increase in exports of textile and clothing.

Range cost of production is increased due to increase in exports of textile and clothing.

All respondents told that up to some extent price competitiveness is increased of textile products.

4.3 Suggestions

More designs and wider market penetration at cheaper rates through better quality products.

Try to adopt new and modern design to sustain in market.

Providing the technical knowledge for the staff.

CONTINUE….

• Competitive pricing to market requirements.

Continuous Training of Workers to improve their attitudes and functional skills.

Providing transportation, good work environment to employees.

Improvement in technology, training.