SYNOPSIS

1. INTRODUCTION

2. HISTORY OF TEXTTILES

3. BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA

4. COMPANY PROFILE OF RAYMOND’S TEXTILES

5. FIRM PROFILE OF SRINIDHI SILKS AND TEXTILES

6. CONSUMER SURVEY ANALYSIS

7. SUGGESTIONS & CONCLUSIONS

CONSUMER QUESTIONNAIRE

ANNEXURES

BIBILIOGRAPHY

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CONTENTS

1. INTRODUCTION INTRODUCTION TO THE STUDY PRODUCT AIMS AND OBJECTIVES SCOPE OF THE STUDY METHODOLOGY LIMITATIONS

2. HISTORY OF TEXTTILES HISTORY TEXTILE FABRICS THE USE OF NATIONAL FIBERS YARN AND FABRIC PRODUCTION A SLICE OF WOOLEN INDUSTRY

3. BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA TEXTILES INDUSTRY IN INDIA PROBLEMS OF COTTON TEXTILES INDUSTRY COTTON TEXTILE INDUSTRY PLANS TEXTILE POLICY RECENT TREND

4. COMPANY PROFILE

HISTORY HR PRACTIOCES BRANDS PRODUCT PROFILE INTERNATIONAL BUSINESS GROUP COMPANIES INTERNATIONAL STORES

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5. FIRM PROFILE SRINIDHI SILKS AND TEXTILES

A BRIEF HISTORY CAPITAL STRUCTURE CASH BILL OR CREDIT BILL OBJECTIVES OF THE FIRM MARKETING MIX WORKING LEVELS IN THE FIRM MARKETING PROBLEMS

6. CONSUMER SURVEY ANALYSIS

INTRODUCTION TO STUDY A BRIEF ANALYSIS SUMMARY OF FINDINGS

7. SUGGESTIONS & CONCLUSIONS

SUGGESTIONS TO THE COMPANY CONCLUSION

ANETEXURE

Consumer questionnaire Bibiliography

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CHAPTER – 1

INTRODUCTION

INTRODUCTION TO THE STUDY

PRODUCT

AIMS AND OBJECTIVES

SCOPE OF THE STUDY

METHODOLOGY

LIMITATIONS

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INTRODUCTION TO THE STUDY

Marketing is a comprehensive term. It includes all resources and a set of

activities necessary to direct and facilitates the flow of goods and services from

producer to consumer in the process of distribution. Businessmen refer

marketing as distribution process. Hum efforts and management constitute the

preliminary resources in marketing.

Marketing is a complex as well as composite process in a society by

which the demand structure for economic goods and services is to be estimated

intelligently and also anticipated or enlarged and satisfied through conception

promotion exchange and physical distribution to satisfy the needs, desires and

wants of the consumers or the market places.

Marketing covers all business activity which is necessary for

ascertaining market demand, planning, product availability, effecting transfer

of ownership of product providing for their physical distribution and

facilitating the entire marketing process.

God created man and man created markets. Marketing has a special

significance in the modern management or business and industry is one of the

managerial concepts. Unless it is properly understood and put into practice in

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the right use, many of the business or industrial enterprise will collapse or

prove failure.

As 21st century is fast approaching marketing is becoming more

attractive at the state, national and international levels. In the early days

production was very less at that time consumer has to reach for the product for

satisfying their needs. As because of industrialization today it becomes

difficult for a producer to sell his product in the market. It is because of

increase in competition.

The aim of modern business is to satisfy the consumers and thereby to

earn profit. The main intention or aim is to provide quality products at cheaper

rate with consumer with the rapidly increase in production of a wide range of

products. Marketing was assumed greater importance in recent year. Thus the

main object of the marketing is the ‘creative and delivery of standard of living

to society’.

In the modern market, consumer is the ‘king’. So a producer’s rate is

decided by the action of consumer i.e., either buying the product or rejecting it.

So producer tries hard to achieve the gain competitive efficiency over the other

by adopting new technologies in production and cost reduction measures.

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Consumer oriented marketing points out that the primary task of

business is to study needs, desires and values of the potential consumers and

on the basis of latest and accurate knowledge of market demand enterprise

must produce and offer the products which will give the desired satisfaction

and service to the customers much better than the competitors.

Indian marketing environment is largely described as seller’s market.

We experience chronic stages and scarcities particularly inconvenience or

comfort goods, demand in invariably greater than supply, purchasing power of

masses is very limited. Moreover 35% of our population is below poverty line.

Bulk of our population resides in villages. The consumers are ignorant,

illiterate, unorganized and hence they have a weak bargaining selling concept

which is product oriented marketing approach. Research information as well as

strategic marketing planning has very limited scope at present. A change is

taken place in the marketing environment at a reasonable speed and many

consumer oriented marketing companies are beginning to realize the presence

or competition and buyers market.

This project report is aimed at giving detailed report of marketing

analysis of “Raymond’s Textile”.

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From the necessary primary as well as secondary data colleted within the

span of time available analysis and interpretation have been made and

conclusion has down on the subject.

This project report gives analysis of survey findings methodology

adopted and observations made in the improvement of the product from the

general point of view.

Decision regarding marketing mix namely product, price, promotion and

distribution are made on the basis of market research reports. Such reports will

help to decide the different methods of distribution and promotion. It will also

help to decide different prices such reports may help the marketer to adopt a

particular strategy so as to get the maximum profit in the available marketing

conditions.

PRODUCT

Raymond’s Ltd., is today India’s fastest growing group. ‘Raymond’s

suiting’ is one of the popular suiting, which is manufactured in ‘Mumbai’ by

‘Raymond’s Woolen Mills’, which is established by “Spy group”. It has more

than 500 showrooms around 200 cities. This is because of the manned, skilled

and dedication of the employees.

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It is the oldest blend with newest technology. It has extra regent

lavishing wide range of textile that suit to all the group of the society. It is the

name and the word in everybody’s mouth. From the beginning, Raymond’s has

endeavored to not just to make world-class fabrics using most advanced

technologies but also to bring the culture and comfort into millions of people.

Its words “The Complete Man” has blazed a new trial in the minds of

people and has own many hearts. This is because “the complete man” is one

when spreads love and compassion with others around him.

AIMS AND OBJECTIVES

The aims and objectives of this project report is as follows:

To increase marketing knowledge through preparing this project reports

and knows about marketing activities.

To know about present position and competitors of ‘Raymond’s

Suitings’ in Shimoga market.

To study competitive environment while marketing.

To know what is the exact market at present for the product.

To analyze consumer awareness of different brands of textiles in

Shimoga district.

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To examine the sales performance of ‘Raymond’s in Shimoga city and

district.

To find out various problems regarding ‘Raymond’s

To assess the market share of ‘Raymond’s in Shimoga city.

To list out the factors that influence consumers buying behaviour.

To evaluate the performance of marketing information system.

To collect advice about Raymond’s from customers.

SCOPE OF THE STUDY

The study of this project report is confined to Shimoga and Hosanagar

cities only. The study was conducted to know the competitive environment

while marketing the textiles. The study was also intended to know the buyers

attitude towards “Raymond’s Textiles”, their frequency of purchasing various

other brands of textiles, their opinion regarding the quality colour and price

etc.

METHODOLOGY

Situation analysis should load to a clear statement of the goals and

objectives of the proposed investigation. We must have estimated copy of the

research and the time required conclusions and recommendations supported by

necessary analysis are submitted in the form of a written report and this report 10

must clearly and effectively printout the relationship among the data, the

interpretations and the recommendations.

To shape the project report, both primary and secondary data have been

collected. The primary data, which is also called original data is obtained

specifically on the project at hand. The sources of primary data are consumers,

dealers, salesman and original sales records, under the collection of primary

data, personal interview with structural questionnaire has been used as the

survey technical for collection of data from consumers. A standard set of

questions is prepared to obtain the required information points.

On the other hand for the analyzing of the marketing performance of the

dealer “Srinidhi Silks & Textiles” their sales, profits and other details have

been collected from the management of the firm and staff. Here secondary data

is collected from published and one from unpublished sources likes

newspapers, magazines, annual report of the company. What other have learnt,

written are put into print constitutes a vast reservoir of information. Our entire

preliminary investigation is based on secondary data.

Here 100 customers have answered the questionnaires and have helped

us to draw conclusions. Some dealer of “Srinidhi Silks and Textiles” is

personally interviewed to find out their opinion.

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This is a report submitted by a student of final year B.B.M., for the

partial fulfillment of obtaining the B.B.M., degree.

LIMITATIONS

The main limitation is making this project report is the time factor.

The survey doesn’t cover the entire Shimoga or Hosanagar cities.

Much time was spent in explaining to the respondents about the real

purpose of survey.

Some of the respondents did not know positive attitude in collecting the

information.

Some of the information like,

(a) Company profile is made in brief,

(b) Short information has been given relating to knowing capital by the firm.

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CHAPTER – 2

HISTORY OF TEXTTILES

HISTORY

TEXTILE FABRICS

THE USE OF NATIONAL FIBERS

YARN AND FABRIC PRODUCTION

A SLICE OF WOOLEN INDUSTRY

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HISTORY OF TEXTILES

HISTORY

The word ‘Textile’ is derived from Latin word ‘Texture’, which means

‘To Weave’, originally meant a fabric made from waver fishers. Today the

term signifies any of a vast number of fabrics produced by waving, knitting,

felting and other techniques, it is also refers to the enterprise that spin yarn

from fisher or from synthetic materials and to the finishers and dyers of fabric.

This article summarizes the development of the industry.

As per the other item, the textile has its own history and origin. The

history of textile has been classified into following stages:

Ancient textile

Textile in the middle age

Textile in the early modern times

Textile in the modern times

Ancient Textile:

The art of textile making began to develop in the Old Stone Age (the

period before 9000 B.C.). The first textile fabric was probable crude felt, made

by compressing loose clumps of fleece from wild sheep. Later prehistoric

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people discovered that they could make a course yarn by rolling plant or

animal fishers between the palms of the hand. The earliest known textiles

made from yarn were finishing nets.

The art of wearing yarn into fabric probably developed from the art of

wearing strips of materials into mats and baskets. Between 500 and 3000 B.C.

people in the middle cart began to weave cloth of simple looms. By about

2000 B.C. wearing had developed in Europe, Asia and South America sprang a

mesh fabric resembling knitting by 1000 B.C.

Textile in the Middle Age:

From the 8th century onwards the Muslims spread the techniques of

cultivating cotton and off raising silk warms to Europe. As the textile trade

grow landing, spinning and other process developed from household occupied

to specified craft. In many European town members of the each craft formed

their own guides or association, even actually, master craftsmen is the textile

guides controlled textile production.

Textile in early modern times:

The European Textile Industry was dominated by France, Germany and

Spain in the 16th century and in Holland by the 17th century to furnish and

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knitting was widely practiced. The first knitting machine was designed by

‘William Lee’, a European clergyman in the 1580’s pressing, filling, napping

and other finishing; machines were driven by Cranks, tread mill, water wheels

on wind mills.

By the last 1600’s the cottage, domestic or putting out system had

largely replaced the guild system of producing textile. Merchants brought raw

fiber and placed it in the cottage of workers were paid by the merchants but

they usually supplied their own spinning wheel and loans.

In the 18th century the serious of techniques was making England the

“leader of the textile industry’.

Textile in the Modern Times:

In the early1800’s ‘Joseph Jacquard’ a French silk weaver invented the

first practical machine for weaving fabrics with intricate design, such as

brocade and demark. Lame making machines are developed by “John Health

Coat and John Cover’ of England. In 1814 ‘Frances Lowell’ opened a first

mill in America, to perform the all operation in converting raw cotton fiber

into finished products.

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Later the 19th century the mercerizing process, the first synthetic dye, the

first practical lumping machine to work for better wages, hour and working

conditions.

In the 20th century many man-made fibers were developed alone or blend

they made it possible to produce, light – weight durable fabrics with new

texture that required less care than many fabrics made from natural fibers.

Nylon the first synthetic fiber was Rayon 1940, Polyester 1946 and Spandex

1959.

A number of new type of fabric were introduced after 1940, included

blended fabric 1942, streath fabric in 1950. Two major finishing advances

wash and wear finished for cotton in 1950’s also introduced.

By the 1960’s American textile industry composed a many large

companies engaged in all the aspect of textile production. Competition from

the Asian countries with cheap labour became so danger, however that is in

1971 the United States established quotas on textile imports. In 1974 as

international part of textile and appeared trade came into effect. Under term of

agreement an international regulatory body seeks to reduce trade retractions

without dispiriting any country textile industry.

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TEXT FIBERS

Textile fibers may be classified as natural minerals, modified and man

made. To achieve specific characteristics different types of fibers frequently

combined.

Natural fibers came from animal or plant sources, animal fibers include

Alpaca hair, Camel hair, Cashmere, Spun silks etc. Plant sources include

Abraca coir, cotton, flex, jute etc.

Mineral fiber includes glass, asbestos and metallic fibers. Some time the

metal combination with other materials.

Man-made fibers included Rayon, Acetate, Nylon, Polyster,

Acrylic, Modacrylic etc.

Major fibers in the world may be classified as follows:

Cotton

Cotton is the world leading textile fibers, is growing many typical and

temperature regions throughout the world. Cotton is white, brownish-white,

yellowish-white colour. Cotton is used to innerwear and outerwear accessories

and decorative materials and has great use of industrial fabrics decorative

material. It may be used to make low grade cheap, cheesecloth, print cloth and

lace.18

Silk

Rewinding the cocoon of the silk warm or larva of the Asiatic silks

warm obtains silk. Bombay-movi silk fiber is lustrous, resistant and strong. It

is also resistance to leaving drops ecoll and readily absorbs most dyestuff. The

leading producer of the silk is China followed by Soviet Union and India etc.

Wool

Wool is one of the important fibers, which can be used to make warm

cloth in the textile industry. From the wool we made sweaters, rugs and other

items, which are protects temperature of the body.Wool may be classified as

deal sheep fiber and live sheep fiber.Dear sheep fiber is inferior in all

properties when compared to live sheep wool.

THE USE OF NATURAL FIBERS

Until the 20th century, all of the fibrous raw materials available for

textile use were based on animal hair, plant or seed fibers or the product of silk

warm. These are all organic and are rapidly degraded by weathering are

destroyed by decomposing agents in the soil. Only a few sample of textile

products have remained from pre historic crass. Cotton, flux silks and wool

probably represents the majors available to ancient civilization, although other

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fibrous materials may also have been used especially the best fibers from

Hemp, Jute and sisal.

The earliest known samples of yarn and fabric of any kind were found

near Rolyhousea, Switzerland, were excavations unearthed bundles of flex

fibers and yarn and fragments of plan wave Lenin fabric, estimated to be about

7000 years old. Woven wool fabrics may have been used as early as 4000 B.C.

in Mesopotamia and wool spinning and wearing became cottage industries

wherever sheep (or in the new world, the member of the Glama family) were

raised.

The cotton plant is indigenous to India, Egypt and the warmer regions of

the America. It was in these regions that the fiber was first used to make

textiles. Cotton did not achieve commercial importance in Europe until after

the colonization of the new world. Silk culture remained a specialty of the

Chinese from its beginning i.c. 2600 BC until the 6th century A.D. when silk

warms were first raised in the “Byzantine Empire”.

Synthetic fibers

The desire to invent a fiber that resembled silk spurred the development

of Rayon (1891) the first synthetic fiber and of its successors, Nylon (1939)

and the various forms of polyester. Most synthetic is made by foreign, a thick

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solution of polymerized chemical through ‘spinneret nozzles’ and hardening

the resulting filament in a chemical both.

Current position of synthetic fibers

The synthetic fiber industry is a true victim of the lop sided duty

structure imposed by the government. The main concerns of this industry are

high excise duties, irrational customs and import duties, where duty on input

and capital goods is higher than that on the finished product and high duty

differentials. All these factors have dealt a severe blow to the competitiveness

of the industry. The lop-sided duty structure make imports cheaper, thereby

carding the bottoming of domestic companies in the case of nylon tire cord

fabric and filament yarn.

The synthetic fiber industry consists of your main sectors viz.

The polyester filament yarn (PFY)

Polyester staple fiber (PSF)

Nylon filament yarn (NFY)

Nylon industrial / nylon tire cord fabric (NIC)

The key issue for the industry are

There will be shortage of cotton in India this year to the extent of 20-25

lakh hales. Last years cotton production was at 170 lakh sales, out of 21

which 60 lakh sales were exported, leaving 110 lakh sales for domestic

consumption, with cotton production likely at 145 lakh sales this year,

domestic availability will be only 85 lakh sales, a shortfall of 23 percent

from last years 110 lakh sales. However appropriate policies are not in

place to promote synthetic fiber for filling this gap in domestic

consumption as well as for export.

Excise duty is a burden on consumers, especially considering the fact that

over 70% of synthetic fibers are consumed by the middle and lower

income strata of society.

Competitiveness of the synthetic fiber industry is severely affected by the

following.

Negative protection as a consequence of high power rate, interest, rigid

labour policy, poor infrastructure etc.

Irrational custom duty structures where duty on inputs and capital

goods is far higher than that of the finished products.

Lakhs of a level playing field because of excise duty on synthetic fibers

being higher than that on cotton.

Cheap import of textile fiber from Cina towards legal and illegal

channel. In case of nylon tire cord fabric, Chinese products are quoting

10 to 15 percent lower prices than those ‘rock-bottom’ prices quoted by 22

producer in Thailand, Indonesia etc., consequent to the South – East

Asia Crisis.

Yarn and Fabric Production

Yarn Production

Silk is the only natural filament fiber and it usually requires only the

twisting together of several filaments to make a yarn. The other natural fibers

must be straightened and laid parallel by combining then must drawn out into a

continuous yarn by spinning. The spindle in the earliest spinning wheel (which

first appeared in Europe about 1400) is its earliest mechanization. It was only

during the last 88th century, with the invention (1767) of the spinning Jenny, a

machine that operated a number of spindles at one time, that yarn could be

produced in appreciable volume. Richard Arkwright’s spinning frame (1769)

and Samuel’s Crompton’s ‘Mule’ (1779) increased yarn production to the paint

at which one market could operate 200 spindles at one time. Modern spinning

machine are based on early 19th century innovation, primarily the ring spinning

century innovation primarily the ring spinning frame invented by the American

‘John Sharp’ in 1928.

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Fabric Production

The handloom in many variations was for many centuries the basic

weaving instrument; mechanical improvements began to be developed in

ancient times. The needle to which alternate innovation, the foot treadle, which

could operate one or a series of a needles, followed shortly foot powered looms

with several sets of needles appeared in Europe during the 13 th century

combined with the frame, mounted battles which was used to heat the weft or

filling yarns, into place such looms were the principal types used in Europe for

many years.

The first steps in the creation of the modern loom were the invention by

‘John Kay’ in 1733 of the flying shuttle which allowed the weaver to send the

shuttle across the width of the loom automatically. ‘Edmund Cartwright’

devised the first steam-powered loom and with Hames Walt built (1785) the

first successfully automated pattern weaving. Most modern looms are

essentially high-speed versions of the early power looms, now made of steel

instead of wool and operating almost entirely automatically.

Dyeing, Printing and Finishing

Techniques of fabric yarn dyeing have increased in complexity,

essentially since the 19th century of coal-tar dye and the 20th century 24

development of synthetic fibers. Fabric printing came late to Europe in 18th

century and was at first confine principally to black printing. The silkscreen

printing was developed for fabrics only during the mid 1980’s. Roller printing

using engraver copper rolls was first used in England in 1785. Followed in the

same year by improvement that allowed rolled printing in six colors, all in

perfect register. Modern roller fabric printed in 16 or more colors.

The Industry

Until the last years of the 18th century, the production of textiles was a

handicraft, practiced in small units by skilled artisans and by cottage spinners

and weavers. Large and economically vital cloth industries had emerged in

Britain, Belgium and other European countries, with the exception of

GOBELIN tapestry marks in Paris however few factories in the contemporary

sense existed.

The technical advances achieved during the 1700’s particularly in

Britain, were the impetus not only for the establishment of the modern textile

industry, but for the factory and the ‘Industrial Revolution’ as a while.

Cloth has been made by American colonists since the building of a cloth

‘mill’ in Massachusetts in 1638. The era of powered textile manufacturing was

however inaugurated by an English men, Samuel Staler a former mill

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supervisor in England rebuilt from memory a spinning frame in providence,

registered in 1760 and later founded several other mills.

Three years later ‘Eli Whitney’ introduced his cotton gin and the speed

with which it could clean harvest cotton created a new demand for cotton

fabrics. Factories sprang-up throughout the eastern United States, particularly

in New England. The perfection of practical sewing machines during the mid

19th century increased the consumption of fabrics and the American industry

reached competition states European counterparts.

After World-War I the textile industry underwent significant changes

throughout the World. Continuing a trend that had begun years earlier, much of

the US industry moved south from New England. New factories for the

production of synthetic fiber were built almost exclusively in the South-

Eastern and Mid-Atlantic states. The cotton spinning and weaving mills that

had populated factory towns in Massachusetts and New Hampshire during the

19th century, closed one after another as the industry moved closed to energy

sources and to lower cost labour.

At the same time, textile manufacturing expended overseas, large textile

establishment in China, Taiwan, Japan and South Korea become competitive

with American and European industry. Restrictive quarter and tariff frequently

threatened by countries that deem their industries threatened by foreign 26

production. To counter the lower price of the foreign textiles, the US industry

is becoming almost entirely automated. Computer controlled technology has

reduced labour needs and improved quality as well as allowing manufacturers

to make quick changes in the types of textile they produce in response to

changing consumer preferences.

5. A Slice of Woolen Industry

Like most textile industry woolen and worsted industry also grossly

under performed the market, further Indian has imported both the finer apparel

wool, the key raw material and as well as the woolen industry.

Industry segments

Woolen and worsted are two basic segments of the industry. The two

differs in the spinning technology involved. Worsted systems use fine long

stapled wool, which is comb worthy. This is normally used for suiting knitwear

and shawls, woolen systems on the other hand utilize medium and coarse wool,

not normally comb worthy. This yarn then produced is also somewhat coarser.

In either case the yarn can be pure wool or blended with other fibers like

polyester and acrylic.

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Despite high import content, the industry continues to be a net forex

earner with export of Rs.3200 crore against import of Rs.550 crore. In the long

run, the demand for products from this industry is expected to grow at a higher

rate particularly in exports, which is likely to triple by year 2005.

Markets, Domestic and Exports

Exports are 0ne sector where industry is making goods bucks. With

European countries closing down their textile units. The production is shifting

to developing countries like India and China, with increasing demand from

cold countries the potential for industry is improving.

Evidently, in the year 1996-1997, the wasted fabrics exports rose by

47% while woolen knitwear by 85%. Besides these made ups and ready made

garments exports have also been witnessing a good growth in the current fiscal

as well. Our country is acting more as a converier of imported wool into

different woolen products and their after exporting them. Nonetheless it is also

doing this creditably with substantial value addition right up to garments are

still limited to unorganized sectors. This leads to problems like variable quality

and delivery performance managing the huge export potential.

The entire woolen and wasted industry can be divided into apparel, non-

apparel, non-apparel segments and shoddy sector. Apparel segments primarily

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comprises spinning yarn which is thereafter converted to fabrics, knitwear,

readymade goods and made ups like shawls, scarps, knit wear etc., of the

readymade goods, shawls and knit wear are largely dominated by unorganized.

Currently knitwear is one of the largest forex earners in the industry, growing

at a fast peace. Despite this it is largely unorganized concentrated largely in

India. In apparel segment, the industry seems to have grown at a compound

annual growth rate of 6% in production through rarely growth has been more

in fabrics. In 1996-97 the production of worsted and woolen fabrics rose by

about 9%. In the yarn segment, worsted yarn seems to be placed better.

6. Exports of Textile

There are hardly any raw material imports as later in abundantly

produced in our country. The export of finished cotton produced in our

country. The export of finished cotton products shows better profits. Today

here are over 150 cotton yarn exporters; these would however gain only

marginally as some of the benefit of depreciation has to be passed on the

buyers to remain competitive. Those, which are engaged in further value

addition through specialized yarn or into fabrics, could succeed in keeping a

higher realization as profits.

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The leading cotton textile exporters include Vardhaman group, Arvind

mill, GTN mills, Precat etc., Arvind mills currently exports 42% of its

turnover, Vardhaman mills exports 26% of its turnover, while companies like

marol overseas and GTN are 100% export oriented units.

However some other segment of textile like woolen would be affected

adversely as they import substantial quantity of their raw materials which is

not available in India. The effect would be neglected only to the extent the

company is exporting its finished products. Companies like Raymond’s are

importing almost 50% of their total raw materials requirements. Other

companies like to be effected would include Birla VXL, Shri Dinesh mills etc.

Top gainers and losers by textile industry

A. Gainers

Top 500 Ranks Textiles % in market capital358 Ashima syntax 15.6637 Arvind mills 0.52210 Himatsingka seide -0.6243 Raymond -4.18158 Modern syntax -18.71

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B. Losers

In India almost 35% of the export income are covered by textile. There are 16

big

exporting companies in our country. The average value per company comes

around 264.12 cores. The total value of textile constitutes about Rs.4,225.89

cores. The market value growth compared to other industrial is about 14.44%

the textile includes a market capital of 1.70% in 1997, and in 1996, it included

1.91% the total sales considering all the other industries comes around

3,494.07%. there is a sales growth of 19.95%. the total net profit of textile

constitutes about 245.86 cores and net profit growth compared to last year is

15.41%.

Cotton Yarn

-Vast Scope for Export

Cotton yarn production in India has been increasing at an average of 3 percent

over the last decade. In 1995 the output was about 1600 million kg. The

average count spun has increased from about 25 in 1961 to about 34 in 1995.

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Top 500 Ranks Textiles % in market capital

361 Sri Krishna Polyester -36.95

342 Mafatlal Indus -42.74

234 Morarjee Goculdas -45.03

355 Wool worth -50.49

490 Garden silk mills -50.99

the indicates a change in product-mix on favor of finer textiles and high value

items. Assuming the present rate of increase the project yarn production by

2002 A.D. is about 2,000 million kg.

With the setting up of a number of man-made fiber units and easier

availability of the fiber one can expect a higher rate during the coming years.

-High Growth Rate

The other factor that favor a high growth rate are : the comparatively low share

of man-made fiber at 25% in the total yarn production, declining price

disparity between man-made fiber and cotton, restricted availability of cotton

and increasing use of blended fabrics by lower income group.

Assuming a growth rate of 12% a year, the output of blended yarn in 200

A.D may be around 600 million Kg, almost a third of cotton yarn production.

The project production of 2002 A.D. is 300 million Kg. Thus, the overall

production of yarn can be expected to increase by about 30% from 2,090

million kg in 1994-95 to 2,775 million Kg in 2001-2002. however, with a share

of 70% for yarn and over 75% for the fiber.

- Rising Global Demands

Export of cotton yarn have traditionally been regulated within a quantitative

ceiling fixed on a year to year basis by the union government with a view to

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checking undue price rise and ensuring adequate supplies to weavers in the

decentralized handloom and power loom sectors.

Consequently, yarn exports have been fluctuating widely from year to

year from about 40 million Kg in 1969-70 they have declined steadily to an

average of 12 million half of the eighties.

Since 1985, there has been a steady and appreciate increase expected for

a fall in 1988-89. During 1995, these touched an all time high of 240 million

Kg. 14% of production.

India’s share of world cotton yarn exports is however small at about

one-eighth. Global trade in yarn had doubled the ten years ending 1991. more

and more countries are importing are importing cotton yarn for local

production. The global demand is now over 3000 million kg in 2002 AD.

Many importers will prefer to buy cotton yarn from countries such as India,

which have a vast raw material base.

Thus as the second largest producer of cotton yarn and fourth largest

producer of cotton, India will have a larger share of the yarn trade. Even a

modest share of 20% of the world yarn market would mean an export potential

of 700 million kg by 2002 AD.

33

However, two issues have to be addressed before if huge yarn exports

are feasible. First, it have to be considered whether large exports will affect the

internal availability and price of yarn for different users.

Second, whether the mills can compete successfully in the international

market with some of the leading countries such as China, Taiwan, Egypt,

Turkey and Brazil.

-Local Market Benefit Too

with the overall yarn production projected at 2,750 million Kg in 2002 AD,

exports of the order of 600 million kg will still account for only a little over

one fifth of the total and about 30% of cotton yarn output. As yarn output is

increasing at a faster pace (5%), largely due to increase in spindle age and

partly on account of modernization, that population growth (2%) and there is

idle capacity of 15% spindles, even allowing for a possible increase in per

capital consumption, there will be no difficulty in meeting the internal demand

for yarn from handlooms, power looms and hosiery in full.

It should be mentioned here that for the quality of an used by the

decentralized sector, yarn, CSP a key parameter of quality, has increased by

15% to 25% over the past decade for all counts. In other words, exports have

indirectly contributed towards an improvement in the quality of yarn used

34

indigenously both by the decentralized and the organized sectors of the textile

industry.

-High Quality standard

In order to complete in the international market, the two primary

requirements are quality and cost. As for as quality is concerned, spinning

mills has the necessary technical know-how and expertise and sophisticated

machinery to produce high quality yarns. Under the ministry of textile a joint

projects ‘high quality yarns for exports’ was undertaken by the textile research

associations and the finding of this study have been disseminated to all mills.

-Major Cost Factors

as for cost of production, cotton accounts for about 60% ranging from 50% in

fine counts to 70% in coarse counts.

With a net profit margin of only 3% on sales, cotton cost plays a crucial

role in mills profitably.

A recent study by SITRA in 84 select spinning mills revealed that during

1990-95. the net profit amounted only to 2% of sales. Mills with modern

machinery have high productivity, produce high value product and earn a net

profit of 10% on exports. As against this, in mills with fairly modern

35

machinery but largely catering to the domestic market, the net profit was only

5%.

Cotton costs generally ruled at high level relative to yarn prices during

the last four years, which largely explains the comparatively low new profit of

2% registered by the mills. Thus it is essential that mills plan their cotton

purchases at competitive prices.

As for conversion costs, power is the largest component accounting for

about 28% of the total. As spindle utilization is a key parameter in the

production economics of spinning mills, almost all mills have generators to

activate spindles during the frequent power cut.

The cost of power in India has been increasing at 12% annually that is

doubling every sex years, as against 7 to 8% for other items and 10% for

wages. Though power costs in India are not high when compared worth other

yarn exporting countries, there is a need to ensure that adequate power is made

available particularly to export mills at reasonable stable cost.

Among other cost, interest is quite sizable and has increased appreciably

in recent years to over five percent of the yarn cost. There is thus as strong case

for mills to seek some concession in interest rates.

Cotton needs

36

Overall, India has a vast potential for yarn export and has the necessary

infrastructure to step up exports to 600 million kg by the turn of the century.

The increased need for cotton 2.5 million bales can be largely met by

improving the crop yield.

There are already encouraging signs from many cotton growing areas of

better yields. The essential pre requisites to setup exports are to make available

to mills cotton of needed quality at competitive costs, uninterrupted power

supply and some concession in interest rates.

For spinning mills to stay competitive in today’s context of globalization, modernization plans should be streamed, high labour and machine productivity achieved consistent and high yarn quality maintained energy and other input costs controlled and professionalism in management ensured.

37

CHAPTER – 3

BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA

TEXTILES INDUSTRY IN INDIA

PROBLEMS OF COTTON

TEXTILES INDUSTRY

COTTON TEXTILE INDUSTRY

PLANS

TEXTILE POLICY

RECENT TREND

38

TEXTILE INDUSTRY IN INDIA

Cotton, a shrubby plant widely cultivated to produce two major raw

products, a fabric and a seed from the fibers are made fabrics and yarns and

from the seed are obtained an oil and other by-product for use in the

manufacture of edible and industrial product. Popularly, the term cotton is

applied both to the plant crop and to the fibers. Scientifically, however, cotton

refuse only to the fibers, which is elongated epidermal cell of the seed coat of

certain species of the genus gossipier. Although the plant itself has little or no

value industrially, its fibers and seed and thereby product add billions of

dollars to world income.

The leading cotton producing countries of the world are Soviet

Union, United States, China, India, brazil, turkey, Mexico and the Sudan.

There is important but smaller, production is Eli Salvador, Guatemala,

Handiness and Nicaragua in Central America in Argentina, Colombia,

Ecuador, Paraguay, Spain, Cameroon, the Central African Empire, Chad,

Zaire, Kenya, Malawi, Morongo, Mozambielle, Nigeria,Rhodiria, the Republic

of South Africa, Tanzania and Ciganda M. Africa, in Afghanistan, Burma,

Iran, Iraq Israel, Syria and Thailand in Asia and in Australia.

History

39

Recent development in cotton production and use sometimes over power

its ancient past. The modern machine age had its beginnings in the 18 th

century. During the past 200 years, the history of western Europe, the orient

and America has been largely shaped by the abilities of countries to produce

and process the cotton fibers and by their need for using it. Cotton becomes

‘King Cotton’. When Eli Whitney patented the gin in 1794 and made it

possible to separate tint from seed a hundred times faster than before with

mechanization. Cotton demand increased until world production reached its

peak just before world Warier.

The history of cotton, of course is much order and more detailed than such

a sketchy review might indicate. No one knows exactly when man first began

to use cotton, although there is strong evidence that he at vast 5000 years ago.

Bits of cotton string and fabric dating from 3000 B.C. who found in 1929 in

Pakistan and these finds confirmed the dyeing of fabric was practiced even

then, Herodotus the Greek historian mentioned that cotton of India in the first

century B.C. and Alexander the great usually receives credit for first bringing

cotton, which be called vegetable wool, into Europe and then into Spain, where

it carried early in the 8th century and was used for sails and other things.

Weaving spread from Spain into Netherlands, where the furnish made cotton

by the middle of the 14th century. Columbus found cotton when he arrived in 40

the New World, but long before 1492 cotton has been growing in the

southwestern part of what is now the United States and among civilizations of

Coastal Peru. Cottonseeds are first planted in Florida by the Spanish in 1556

and by English colonist in the Virginia in 1606. England first received cotton

in the term of Indian Fabrics and cotton immediately become competitive with

native wool. Creating a contest that lasted until the beginning of 19th century

when cotton won.

Future of Cotton

The position of cotton is United States remains uncertain as to the future.

In 1950, its price was artificial is that it was supported at the pasty price of 30

cents per pound and was thus greatly handicapped in its attempts to obtain a

large proportion of the export market than had been its lot in the past. While

apparently favorable to producers, created as artificial condition based on

subsidized domestic market, which did not protect the platter support, the

United States had accumulated a carry excess of 8 millions bales. By the end of

1965, the carry over was in excess of 14 million bales.

Cotton Textiles Industry

The real foundation to the cotton industry was in 1854, when a cotton

textile mill was set in Bombay (even though as early as 1818 a mill had been

41

setup in Calcutta). Later many more mills were started not only in Bombay but

also in other centers such as Ahmedabad, Sholapur, Nagpur, and etc. important

centers of Chennai in Tamilnadu, Nagpur, Sholapur and Bombay in

Maharashtra, Ahmadabad in Gujarat, Kanpur in Uttar Pradesh and in Delhi.

The present position of cotton textile industry is the oldest and largest

single industry in the country. It provides income to the handloom weaver in

the country numbering well over 4 million persons and thus serves as a source

of employment for millions of handloom weaves. Besides provides direct

employment to nearly a million workers. There were over 800 textile mills in

the country which produced over 1260 million kgs. Of yarn and over 4140

meters of cloth in 1987. India is the 3rd largest producers of cotton yearn and

cloth in the world. In the world export market, India is the second only to

Japan and contributes 10% to 15% of world export of cotton cloth.

The industry was localized Bombay in Maharashtra state up to 1920.

Bombay enjoyed suitable climate for spinning and weaving. Besides it could

get abundant raw cotton from the well known cotton soil of Maharashtra,

Bombay was also a good port and was used to export cotton yarn to Britain,

Japan and other countries. In fact, the cotton spinning and wearing industry has

been a traditional industry in India. Indian cloths are famous all over the world

even during 17th century mainly to supply cotton yarn to China and Japan. 42

Later, they started providing yarn for the home market. In the course of time

however, Bombay lost its previous position to other regions, the basic reason

for this fact was the nature of market for cotton cloth, and cotton cloth was

demanded in all part of the country.

Problems of Cotton Textile Industry

The cotton textile industry, no doubt made much progress in the last 100

years or more of its existence, but the industry is currently going through a

crisis. The main problems of the industry are summarized under the following

heads:

a. Replacement of Plant and Machinery

Indian cottage textile industry has been working neither proper

replacement nor maintenance of machinery for a long time. During world-war-

II replacement of machinery and procurement of spare parts was difficult in

case of most textile mills, machinery is obsolete in design and completely

worn-out. According to one estimate, about 90% of the machinery in cotton

textile mills were old and should be separated. Those mills, which neglected

the modernization, have become side. Due to this, the cloth produced is

substandard and costly and therefore India has been loosing its customers

abroad. It has resulted in loss of reputation and badly needed foreign exchange.

43

b. Existence of Inefficient and uneconomic units

There are existences to a very large number of inefficient and

uneconomic mills. One estimate printed out that nearly 30% of the textile mills

in the country are inefficient and uneconomical. A number of them have

become sick and have been taken over by the government. Besides these

clearly inefficient are uneconomical units, many others are working only at a

marginal level of efficiency. Some cotton mills are doing extremely well, but

the profitability as well as productivity of the industry as a whole or seriously

affected by the existence of inefficient and uneconomic units.

c. Dimension Productivity and High cost of Production

As textile mills are working with old, worn-out and depreciated

machinery and due to the inefficiency of many mills, the productivity of labour

is low and cost of production is high. This is a serious problem, which the

industry is facing. Since, both internal and external markets are affected

adversely by high prices.

The method of taking this problem would be: -

Replacement and renovation of old machinery

Closing down of inefficient and uneconomical units

Measures to improve the quality of cloth

44

d. Inadequate supply of Raw Materials

The cotton textile industries face the problem of building up a regular

supply of its raw material i.e., raw cotton in adequate quality. Despite the

importance of the industry and the long period of its growth the position of raw

cotton has remained very uncertain and unstable. This has been particularly, so

in case of fine quality of cotton known as long stable cotton. Even this year

there is expected to be short fall in the output of cotton by about 75 lakhs bless

against the expectation of 122 lakhs bales, set by the cotton advisory board in

December 1990.

e. Power Cut and Fuel Shortage

There had been unprecedented power cut sometimes up to 75% almost

throughout the country since middle of 1970. The shortage of fuel oil, resulting

from world-wide oil. Crisis, load shedding, substantial increase in electric

power rate and heavy rise in the prices of dyes by the textile industry. All these

have lead to high cost of production.

f. Heavy Excise Duties and Government Control

The government has imposed heavy excise duties, which have raised the

price of cotton cloth produced mills. The government refuses to lower the tax.

What was worse was that the government had lower level of excise duties on 45

cloth produced by handlooms. This gave a price advantage to power loom as

against the mill. Besides the cotton textile industry has suffered had because of

government control of price of cloth, distribution of yarn, pattern of production

etc. at one time serious problem of cotton mill industry was with regard to

‘Controlled Cloth’ meant for poor people. Before 1974, mills were asked to

produce 400ml meters of such cloth annually and after April 1974 this was

raise to 800ml meters. The industry was loosing heavy has the price of raw

cotton were higher than the stamped price of controlled cloth. Even the

planning commission convinced that a major factor for the sickness of the

industry was the compulsion on mills to produce some quality of controlled

cloth. It was only after 1978 that the responsibility of producing controlled

cloth was taken away from the private mill sector.

g. Completion from decentralized Area

In the last 30 years the mill sector is facing stiff competition from power

loom commonly known as the decentralized sector. The government

encouraged this sector by charging lower level of excise duty (on the ground

the power looms are small-scale units) permitted them to have lower of wages

etc. Naturally the cloth provided by the powerlooms small scale could outsell

cloth produced by organized sector of the industry. This unfair competition

46

from the decentralized sector was the cause for the sickness of a number of

mills, which were closed throwing lacks of workers out the employement.

The government of India set the National Textile Corporation(NTC) in

April 1968 to take over or supervise the functioning of sick mills. The NTC is

now managing 125 mils some of which are still running under loss.

3. The Government and New Textile Policy

The government of India has always been deeply interested in removing

the problems and difficulties of cotton textile industry even though some of

the major problems of the industry were created by wrong policy followed by

the government. The government has setup the Cotton Textile Corporation to

produce raw cotton and disteribute it in a equitable manner, among all the mills

in the country. The government has also included all the public mills

tomodernize their equipments to provide cheap finance to textile mills to

modernize their equipments. Finally the government has been taking over

textile mills to modernize as and when they feel sick, so that workers in these

mills might be assured of employment. In fact in June 1985 the government

announced a new textile policy with a view to:-

Maximize the production of cloth of acceptable quality at a reasonable

rate.

Protect employment and47

Promote export potential of the industry

Important features of new textile policy are summarized below:-

Organized and decentralized sector of the industry

The existing system of the discrimination in excise duties in favour of

the decentralized sector as against the organized mills sector would be given

up. Similarly the other facilities provided to powerlooms in the unorganized

sectors would be abolished and all powerlooms would be treated at par and

allowed to compete on the basis of their inherent strength and capabilities.

-yarn Exports

Third cotton exports from country should be given a further boost. The

government has announced a 3-year cotton yarn export policy, which in a large

measure gives confidence to the foreign and regular supply of cotton yarn from

this country. A cash compensatory support of 8% has also been granted by the

government on cotton yarn export. The measure has been reasonable for the

country. The potential for cotton yarn in international market is vast. Pakistan

alone exports 150 million kgs of cotton yarn in a year where as for a large

country like India producing 1257 million kgs of cotton yarn. Our export

target of 40 million kgs is hardly 3%.

-Modernization48

There are no true opinions about the need to modernize the industry and

reduce the gap in its development between our technology and the techniques

now prevailing in the western and far eastern countries. Modernization

however, calls for major outlays on new machinery, which are beyond this

improvised industry. The government has created Rs.7.5 crore-modernization

fund scheme, but it fails short or expectations of the industries for one thing,

the interest on short loan under the scheme continues to be high at 11.5%.

The special loans to wards promoters contribution under the scheme is

available only to certain category of mills. Further, unless the accelearated

pace will not occur. While the good units will modernized the marginal units

will to be able to do so and consequently they may side into the sick list. The

financial institution should therefore not only reduce the interest rate but also

allow a longer repayment period 10 years. Considerations should also be given

by financial institutions to fund 100% of the modernization cost.

-Sickness in the Industry

Sickness in the industry has become endemic as can be seen from the

increasing number of units falling sick. Sickness in textile industry has far

reaching implications as it can available installed capacity and create social

and political tensions, which our country cannot offer.

-Management Techniques49

The textile industry today is a multi fiber and multi purpose one. This

has created management problems, which are beyond the capacity of a single

man’s traditional wisdom. However clever and experienced he may be further

more with the unpredictable movement in price of cotton, various fibers and

filament yarns, it is not easy to decide at any given moment which particular

raw material blend of product is likely to bring maximum returns and

minimum cost. In the changing situation, the complicated problems can be

tackled with some degree of success only if the management is alert and adopt

more modern techniques.

4. Cotton Textile Industry Under Plans

First Plan

The program of development formulated for the cotton textile industry

in the first plan envisaged a modest expansion of the industry, particularly in

the spinning section through the establishment of new units and expansion of

existing uneconomic units. New units were expected to come into existence

with a total installed capacity of about 3,50,000 spindles. The addition of these

units was to raise the number of spindle from 1,09,42,241 at the end of 1950-

51 to 1,12,92,241 number of spindles in 1995-95. further, the expansion of

some of the 150 units of uneconomic size that were in existence at the

commencement of plan period was expected to add another 50,000 spindles. A 50

program of fuller utilization of the existing capacity both in the mill and

handlooms sector of the industry was visualized in the plan.

The plan load down targets of production for the yarn and mill cloth of

1,640 million and 4,700 yards respectively to the achieved in 1955-56 as

against corresponding figures of 1,179 million and 3,718 million yards in

1950-51. It was envisaged that 3.7 million sales of domestic of cotton would be

consumed by mill sector in 1955-56. Import throughout the period of plan were

expected to be order of 1.2 million bales per annum. Taking into account the

unit are expansion in existing units effected during the plan period there were

on January 1856. 121 spinning mills and 291 composite mill with a spindlage

of 1,20,51,209 and loomage of 2,02,901. the increase in the spindlage and

loomage during the plan period has been 11,08,968 and 8,490 respectively and

were in excess of the targets was partly due to the expansion of some

uneconomic units and the conversion of some of the purely spinning mills into

composite mills on the basis of approval given for spindlage and loomage

capacity under the past expansion scheme. The output of mill yarn in 1955 was

1,630 million lbs and the target for the plan was achieved. In the handloom

sector also the production increase steadily the production during 1955-56 was

51

estimated to be about 1,500 million yards which fall short to the target of 1,700

million yards.

Second Plan

The overall cloth target including the production from the

decentralization sector was envisaged at 8,500 million yards in 1960-61 and

the output of yarn was expected to increase from 1,630 million lbs to 1,955

million lbs. The total requirement was calculated on the basis of an estimated

per capita requirements of 18.4 yards and exports of the order of 100 million

yards per yarn. The production of cloth and yarn during the period under

review as below.

Year Mill Rate

Production of clothHandloom and powerloom

(million yards)

Production of yarn

(million lbs)1955 5094 1753 1630

1956 5307 1787 1671

1957 5317 1946 1700

1958 4925 2126 1685

1959 4920 2258 1723

1960 548 2195 1737

Third plan

52

On the basis of per capita requirement of 17.5 yards of cloth in 1956-66,

the total demand of cloth was put at 8,450 million yards. The export target for

cloth was envisaged at 850 million yards. Out of target of 9,300 million yards

of cotton piece goods, the decentralized sector was allotted 3,000 million yards

and the million sector 5,000 yards as against the current level of the output and

the estimated effective capacity of about 5,000 million yards. To achieve the

additional production of 800 million yards in the million sector, it was

expected that about 25,000 automatic looms would be installed during 3 rd plan.

As a result of these developments the consumption of cloth per capita was

likely to go to 17.2 yards by 1965-66.

The progress made by cotton textile industry during the period of 1951

to 1968 (july) is shown in the tables below:

Progress of Cotton Textile Industry (1951-68)

Year No. of Spindles No. of Spindles Looms Total53

SpinningMills

Installed CompositeMills

Installed Installed No. of Spindles

1951 103 1843 275 9156 195 10,9991968( july )

350 5194 200 12110 207 17,308

Progress made in the production of cloth

Year Mills DecentralisedSector

Total

1951 3727 1013 4740

1956 4852 1663 6515

1961 4701 2372 7073

1966 4239 3097 7336

1967 4097 3179 7279

The third plan achievement of cloth and yarn production fell

considerably short of the target, the shortfall was more pronounced in the case

of mill made cloth. While the total production cloth during 1955-67 increased

by one and half times, the production in decentralized sector almost triple. The

mill sector has remained mostly stagnant after 1956.

Fourth Plan Production of

cotton textiles during 4th plan(cloth in million meters/yarn in million kgs.)

Sector 1969 1970 1971 1973 1974

Mill sector 4192 4156 3960 4244 4169

Decentralised 3561 3692 3396 3784 3604

Total cloth (A+B) 7753 7848 7356 8028 7775

54

Cotton yarn

Mill sector

0962 0965 0882 0972 0998

The failure of achieve of 4 plans target for cotton production and the

extensive power shortage of a large magnitude were two most important causes

responsible for short fall in the production of both cotton yard and cloth during

1973.

Fifth Plan

During the fifth plan the overall production of cotton cloth was proposed

to be stepped unto 10,000 million meters by 1978-79, in accordance with the

policy of encouraging the decentralized sector, a significance share of

additional production during 5th plan was allocated to this sector. The

contribution of each of these sectors in the overall production of 10,000

million meters was envisaged as follows:

Mills 5200 million meters

Handlooms 3000 million meters

Power looms 1800 million meters

In order that the requirements of yarn for decentralised sector were

adequately met the spinning capacity in the mill sector would be expanded so

as to provide a marketable surplus of 580 million Kgs of yarn by 1978 – 79.55

Recent trend

The growth of production in the cotton textile industry in recent years is

given below.

Year Mill sectorDecentralized

sectorTotal

1973 4083 3863 7946

1974 4450 3818 8268

1975 4979 4001 8980

1976 4161 4238 8399

From the above it may state that the cotton textile industry event the year

1976 has not shown any encouraging trends. Anticipated production of total

cloth in 1976 –77 was put as 8399 million meters of cloth by 1978 –79 with

improving standard of living, it was expected that the consumption of cotton

cloth in our country would improve. But it has actually fallen. In 1964, the

per capita consumption of cloth in this country was 15.22 meters, which has

fell to the level of 12.6 meters in 1975 –76 and further to 11.4 meters in 1976 –

77.

Increasing competition in the World Market

56

Another important problem facing cotton textile industry is the

increasing competition in world market. India, which was an important

importer of cotton textile both from U.K. and Japan, became an exporting

country for cotton fabrics during Second world – war. High hopes were held

regarding the maintenance of their exports and at the time of the Buxton

conference. India was allotted an export quota of 100 million yards. But of

late, the industry has been facing competition in International markets from

Japan, Hong Kong, China and USSR and some fast European countries.

Consequently our exports had an erratic trend till 1959 and they declined in

1960 and 1961. As against export target of 1000 million ears of cloth

envisaged in the second plan the actual exports could not exceed 720 million

yards.

The low level of exports in 1958 was apparently due to the world wide

recession in that year as well as intensified foreign competition, while the low

level in 1960 was mainly due to the short fall in the cotton crop during the

1959 – 60 season and consequent increasing internal prices of indigenous

cotton and cotton textiles.

During third plan period also the export performance was not

impressive. It fluctuated widely and the performance in the recent years was

much lower when compared to 1960. It will be worthwhile to note that is a 57

slowly of exports also moved down. During 1965 and 1969, it fell from 20.40

U.S. cents, while the price of cotton moved up by about 26%. The below

table shows the exports of cotton by India unto the beginning of fourth plan.

Year

Quantity Values Rs. Crore

TotalMills made

sq. meters

million

Handloom

meters

million

Mill

made Handloom

1960 – 61 602 26 83.1 7.5 90.6

1961 – 62 513 40 74.3 13.1 87.4

1962 – 63 410 27 62.4 7.3 69.7

The factors are:

The severe competition offered by the country such as Japan, Hong Kong

and Pakistan.

The growth of local textile production in some of our traditional markets in

Africa and South East Asia.

The imposition restriction in Western Europe and North America.

The rise of synthetic fiber industry as a keen competition to the cotton

textile industry.

58

As for as local hindrances are concerned it may be mentioned that

periodic difficulties in respect of the availability of raw cotton and inadequate

attention to modernisation or the raising of productivity are accentuating the

export problem of our textile industry. The economic and scientific research

foundation in its findings points out that, inspite of the significant changes the

machinery installed in the past few years, there continues a technological gap

of 4 to 5 years in the best mills a compared to their counter parts abroad. If

this is the case with the best mills, the position in the other mills can well be

imagined.

Thanks to the impressive increase in export of yarn and approval made

possible by the aggressive sales derive through build deals and more effective

propaganda by the cotton textile export promotion council and more

thoughtful dispensation or export assistance, exports of mill make cotton

textile from India set a new record in 1969-70, despite the lower earnings at

Rs.111.53 crores represented an increase of little over 14% over the 1968-69

figure of Rs.97.52 crores and of 9% over previous best Rs.21 lakhs. Total

exports of cotton fabrics reached a higher level of Rs.254 crores in 1976-77

as against Rs.161 crores in 1975, Rs.158 crores in 1974 and Rs.69.7 crores in

1969.

Should India come Clothiers to the World or its textiles dump?59

The textile industry is India’s largest foreign exchange earner and our

largest employer in the industrial sector. We have the largest and arguably the

best spinning industry in the world. Our cotton yarn commands excellent

brand equity in the international market where it now holds a share of over

25%. In fabrics, our mill industry contributes nearly 50% of our exports,

despite accounting for less than 5% of the production. Yet 264 spinning mills

in the organised sector and 117 composite mills are currently lying closed.

What ails Indian Textiles?

The on going process of phasing out bilateral textile quotas has through

up tremendous challenges for our textile industry in the international markets.

Our exports are under pressue and already showing signs of faltering.

Removal of restrictions on imports into India has already led to a 40%

increase in textile imports this year. And with 300 more textile items

becoming freely importable from April this year. The situation will only

deteriorate in the future.

This is obviously the time to concentrate our energies on upgrading the

competitiveness of our textile industry in order to help it convert the

challenges in the domestic and international market into opportuities. And

what are government policies doing to our textile indstry?

60

In cotton yarn, inefficient units that produce low value, low quality

goods at exorbitant cost are given duty exemption on the grounds that they are

in the small – scale sector. This inspite of clear evidence that a viable

spinning unit can just not be establish within the investment limits stipulated

for SSI units.

Organised spinning mills suffer excise burden of 9.2% and are

crumbling under the weight. 120 large mills have closed down since the

excise increase. Yet, the government has collected less excise duty than in

1995 -96, when the rate was half, statistics prove that 56% of duty is evaded.

So the 9.2% duty is either driving mills to closure or to evasion.

The textile industry does not need only subsidies just give it a level

playing field:

Exempt cotton yarn from payment of excise duty for a period of 3 years

using unveiled portion of interest subsidy of technology upgradation fund.

Withdraw excise exemption to SSI spinners.

Charge uniform duty of 8% on all fabric processors and restrict exemption

only to hand processor not using any power operated machines.

Withdraw hank yarn obligation and handloom reservation.

Introduce uninterrupted modest chain.

61

Pre – And Post – WTO Era

WTO is becoming a bugbear for Indian industry in general and the

textile industry in particular. It is now for the government to make it easy for

the textile industry to compete with transnational players. After the lifting of

quantitative quota restrictions, the industry will flounder if the government

remains a mute spectator.

The conversion of the General Agreement of Tariffs and Trade (GATT)

into the World Trade Organisations (WTO) in 1985 and signing of the most

ambitious though complex agreement through its Uruguay Round gave a new

dimension to international trade. Also there was a significant impact on

India’s foreign trade policy. During the talks, the WTO – bound states agreed

to extend the relaxation to five other non – traditional sectors like agriculture,

textile & clothing, trade – relaxed investment measures (TRIMs), trade related

intellectural property rights (TRIPs) and trade in services.

The agreement on textiles & clothing (ATC) makes it obligatory on the

part of all member countries to dismantle their Quantitative Restrictions (QRs)

being extended to this sector in the respective countries and phase out all

quotas existed and phase out all quotas existed under the Multi Fiber

Agreement (MFA) by January 1, 2005.

62

The worst effect of lifting QRs will be felt mostly by the developing

countries including India wherein this industry has been under constant

government regulation for more than four decades (since year 1955). Till

1985, government policies in this sector were being dictated with the aim of

imp substitution instead of promoting exports to stimulate the growth of this

sector, the government made a policy statement in 1985 with the primary

objective to make available acceptable quality cloth at an affordable price to

Indian people and at the same time protecting the interest of employees in the

organised textile sector as well as the cotton growers.

Textile industry in India accounts for around 7 percent of country’s GDP

and about a fifth of the total industrial production. It contributes 14 percent of

value addition in the manufacturing sector and about a third of the country’s

foreign exchange earnings comes from this sector. Over the years, India’s per

capita availabality of cloth also increased from 17.3 sq.mt. in 1980 – 81 to

about 19.3 sq.mt. in 1996 –97.

With a rapid change in global textile trade in the recent yeas and the

ATC coming into place, 1985 textile policy of the government needed a much

– deserved review. The government setup an Expert committee in July 1998

under the chairmanship of ex – textile secretary S.R. Sathyam to evaluate the

existing policy and recommended measures for this sector to face global 63

challenges. Though the report was submitted to the government within the

stipulated six – month period, little effort has been made after that to

implement the recommendations owing to unexplained reasons.

Industry sources feel that the suggesitons for dereserving the readymade

garment (RMG) section from its present status under SSI sector has compelled

the government for such an inordinate delay in its implementation. Also, the

committee’s recommendation for immediate repeal of SSI reservation to the

clothing and knitwear segments and removal of all textile items from the

preview of Essential Commodities Act, 1955, expect for raw cotton, cotton

seeds, raw jute and jute textile,has not been quietly welcomed by certain

segments in the industry.

The committee has been of the opinion that textile industry should be

out of all kind of government regulations expect a few responsible for healthy

and accelerated growth of this sector while protecting the interest of consumers

and the environment.

Though textile exports have fallen short of the targeted $ 14.39 billion in

1999 – 2000, these have registered a growth of 6.1 percent. ($13.32 billion)

compared to that of the previous year and in the first four months of current

financial year, cotton textile exports have seen a remarkable growth of 13.8

64

percent compared to 13.1 percent decline for the corresponding period in the

previous year.

India is the third largest producer of cotton after China and US withits

annual production at about 2.7 million tones, the competitive advantage of

India lies in the availabality of its low cost skilled labour and the use of

indigenous textile machineries in mills. Contrary to this, the export of India

cotton is not picking up because of its poor quality and high price in the

international market. The quantity of man made yarn, blended spun yarn and

blended spun yarn export increased from 83 million kg in 1997 – 98 to 93

million kg in 1998 – 99, in actual rupee terms the value declined from Rs. 8.6

billion in 1998 – 99.

India has been hard put to realise the export potential of its cotton yarn

surplus due to the current quota restriction in the developed countries. And

back at home, the government imposed a number of obligations on the

idustries in this sector certain restriction hindering the growth of this industry

are:

Certain varieties of garments being reserved for production only for the

handloom sector event though these products could be manufactured more

economically by the organised sector.

65

Compelling composite units to set aside 50% of their cloth production to

sell at a price fixed by the government, which falls short of normal cost of

production by 15 to 20%.

Introducing ‘Janata’ cloth to be manufactured only by the handlooms and

government controlled units and to finance the scheme, the government

levies an AT & T (additional duty for textile & textile articles) on the entire

textile industry.

Cotton mills prohibited from producing non – cotton fabrics, even

when there is not sufficient supply of cotton to these mills.

In view of the fast changes that have taken place world over in this

sector in the recent years, India’s textile policy and the government’s

regulations for this industry need a closer look so as to make this industry

globally competitive. The government should work out ways to minimise the

efect of restrictions on this sector so that the industry could gear up to

withstand the threat for competitions from transactional players even after

lifting of QRs and quota restrictions.

Year – wise Production of Spun Yarn & Fabrics

Year Spun Yarn (Tonnes) Fabrics(mm.Sq. m.)

66

2006 – 07 2973000 36896.00

2007-08 2807810 35766.20

Export, Import and Domestic Consumption of Indian Cotton

Export ImportDomestic

Consumption (mn sq. m)

Spun Yarn2006 – 07 5476.20 18.30 26142.102007 – 08 4519.50 20.60 25501.10

Fabrics2006 –07 3427.80 150.40 133322.602007 – 08 3729.70 224.20 129294.50

Woolen & Blended Yarn2006 – 07 262.70 13.40 264.602007 – 08 176.80 10.30 281.60

Woolen Fabrics2006 – 07 126.20 16.60 1054.702007 – 08 117.00 12.60 1062.60

67

CHAPTER – 4

COMPANY PROFILE

HISTORY

HR PRACTIOCES

BRANDS

PRODUCT PROFILE

INTERNATIONAL BUSINESS

GROUP COMPANIES

INTERNATIONAL STORES

68

HISTORY

Around the time the Singhania family was building,

consolidating and expanding its various businesses

in Kanpur, one Mr. Wadia, was in a similar manner

engaged in fulfilling his dream: he set up a small

woollen mill in the area around Thane creek, 40

kms away from Bombay. This mill was soon

acquired by the Sassoons, a well-known industrialist family of Bombay, who

renamed it as The Raymond Woollen Mills.

When the Singhanias were looking for new regions to establish their

presence and new fields to venture into, they concurred that textiles appeared

to hold promise. A piece of information that a woollen mill was available on

the outskirts of Bombay clinched the issue.

When the grandson of Lala Juggilal, Lala Kailashpat Singhania took

over Raymond in 1944, the mill was primarily making cheap and coarse

woollen blankets, and modest quantities of low priced woollen fabrics.

The vision and foresight of Mr. Kailashpat Singhania helped greatly in

establishing the J.K. Group’s presence in the western region. Under his able

stewardship, Raymond embarked upon a gradual phase of technological 69

upgradation and modernisation producing woollen fabrics of a far superior

quality.

Under Mr. Gopalakrishna Singhania, the mill became a world-class

factory and the Raymond brand became synonymous with fine quality woollen

fabrics. At Raymond, quality did not rest on its laurels. When Dr. Vijayapat

Singhania took over the reins of the company in 1980, he injected fresh vigour

into Raymond, transforming it into a modern, industrial conglomerate. His son

Mr. Gautam Hari Singhania, the present chairman and managing director has

been instrumental in restructuring the Group. With the divestment of the

Synthetics, Steel and Cement divisions he initiated, the Group has emerged

stronger with a better bottom line, more focused approach, become market

oriented and achieved a consolidated position.

Today, the woollen mill by the creek has turned into a Rs. 1400 crores

conglomerate and is India’s leading producer of worsted suiting fabric with

60% market share. It is also the largest exporter of worsted fabrics and

readymade garments to 54 countries including Australia, Canada, USA, the

European Union and Japan. The Raymond group is also the leader among

readymades in India with a turnover of Rs. 2000 million with its three brands –

Park Avenue, Parx and Manzoni.

70

In its pursuit of excellence Raymond continues to achieve enhanced

customer satisfaction through ongoing innovation. And happily the growth

graph continues to rise higher…and higher.

HR PRACTIOCES

Excellence is a way of life at Raymond that has been manifested in all

our endeavours for the past 75 years. These endeavours have been translated

into designing and developing products of international standards, delivering

enhanced values through brand building, distribution and customer

relationship. Raymond today, is a culmination of untiring human efforts based

on the fabric of values. People are our prime resource in establishing market

leadership. We value our people and always strive for their all round

development.

CONTINUOUS LEARNING AND DEVELOPMENT

We strive for organizational excellence through continuous development

of our human resources. We strive to simply be the best, creating focus and

driving business performance through our people. There is an intense focus on

continuously developing our abilities to respond to existing and future business

requirements. A detailed training and development plan is drafted and 71

implemented each year, which comprises level-wise planned interventions as

well as specific need-based interventions through Training Need Analysis, to

equip people to excel in their current roles and develop them for possible

future roles. There is great emphasis on behavioral and attitudinal training

apart from technical training, as well as continuous on-the-job rotation

wherever applicable.

EMPLOYEE INVOLVEMENT

We believe that employee involvement is the key to continuous

improvement, sound decision-making and developing an open and transparent

organization. Kaizen initiatives, Quality Circles and Suggestion Schemes in all

departments of the plants, enable us to tap latent creativity among

organizational members.

CORPORATE RESPONSIBILITY

A responsible corporate citizen, aware of its social obligations, the

Raymond Group has displayed an innate desire and a missionary zeal to

contribute its mite to the welfare and social upliftment of the community.

Temples, hospitals and dispensaries, schools, sports foundations, modern

housing, recreational centres…the Group has provided it all, improving the

72

quality of life not only of its employees…but also of a large cross-section of

society.

The Group has always provided equal employment opportunity to

women and set up support systems like crèche, medical and transport facilities

for them.

Raymond Embryo Research Centre and JK Trust-Gram Vikas Yojana

We aim for the socio-economic upliftment of the rural poor through the

optimum use of technology for generating gainful employment and to improve

their quality of life.

In the year 1983, the Embryo Research Centre for cattle was established

by us at Gopalnagar. The main objective behind establishing the Centre was to

produce genetically superior, high milk-yiedling cattle through the technique

of Embryo Transfer, and thus improve the socio-economic status of farmers.

Today, we have 44 Veterinary Officers and 10 Rural Development

Officers working on the project, covering 370 Integrated Livestock

Development Centres spread over 3700 villages of Andhra Pradesh, Madhya

Pradesh and Chattisgarh.

BRANDS

Raymond

73

The largest and most respected textile brand in India for 'The Complete

Man' addressing the innate need of men to look good and at the same time

possess strength of character.

Park Avenue

Formal readymade garments & accessories for men it has recently

bagged the "Most Admired Brand" and "Most Admired Trouser Brand"

awards.

Parx

The semi formal and casual range of cottons, blends and denim wear

catering to the smart, fashionable and comfortable clothing segment.

Manzoni

The luxury range of men’s shirts and ties acknowledged for its high

quality and international styling.

Be:

An exclusive prêt-a-porter line of ready-to-wear designer clothing for

women and men in western, ethnic and fusion styles.

KamaSutra74

The premium condom brand with the unique 'for the pleasure of making

love' positioning in textured & flavoured variants.

Premium

The range of cosmetics & toiletries including after shaves, shampoos,

cologne, shaving cream, soaps, deodorants, room fresheners, etc.

ColorPlus

Premium casual wear brand in high quality natural fibres like cotton and

linen, in superior mixed and performance oriented weaves.

PRODUCT PROFILE

Premium Suiting Fabric- for Suits, Jackets, Trousers and Ethnic-wear

* Pure-Wool

From 22.5 to 13.5 micron wool and its combination with speciality

fibres like cashmere, angora, camel hair, alpaca, linen and silk.

* Polyester-Wool

Combination of fine polyester with 24.5 to 15.5 micron wool

and speciality fibres like cashmere, angora, camel hair, linen and silk etc.

* Polyester-Viscose - Tropical Suiting

Combination of fine polyester with viscose, modal linen and silk fibres.

75

INTERNATIONAL BUSINESS

TEXTILES

It all began with a small but significant order from Fiji for Rs. 7,000

worth of Raymond fabrics. In the St. Erik’s Fair in Sweden, a sizeable order

was won and executed and ever since exports have never looked back.

Today, Raymond is the largest exporter of worsted fabrics and

readymade garments to over 58 countries including Australia, Canada, USA,

the European Union and Japan. From winning the first ever Government of

India award for outstanding export performances, Raymond has continued to

win a number of export awards. Happily the export graph continues to rise

higher…and higher.

The fact that Raymond makes world-quality fabrics is evident in the

global acceptance the brand has achieved. Internationally renowned menswear

designers today style their latest collections from Raymond- the fabric in

fashion.

WHAT WE EXPORT

FABRICS

All Wool, Wool Rich, Polyester Wool & Polyester Viscose

fabrics .Exotic fabrics like Wool Silk, Wool Cashmere, Cape Wool and Linen 76

blends. Available in variety of finished and stretch properties both with and

without Lycra.

BLANKETS

All Wool, Wool Rich Blankets & Flannels.

GARMENTS

Trousers, Jackets, Suits, Shirts, Jeans and T – Shirts.

Readymade accessories such as Ties, Socks Handkerchiefs and Leather Belts.

DENIM

Raymond Denim enjoys a substantial market share in all parts of the world.

The company exports 55% of its production to around 20 countries around the

world and to leading denim wear brands like Levi's, Pepe, Lee Cooper and

retail brands like Zara, H&M, Gap, Tommy Hilfiger, etc.

Where We Export

European Union (U.K., Portugal, Spain, Italy, Germany, Greece)

Turkey, Poland, Lebanon, Egypt, Middle East, Mauritius, USA, Colombia,

HongKong, Korea, Philippines, Indonesia, Bangladesh, Sri Lanka, Nepal and

Pakistan.

What We Export77

FILES & TOOLS

Ring based denim i.e. stretch, flat (mercerised), streaky, dark, ecru and

tinted, in weights varying from 7.5 oz to 14.5 oz.

J.K. Files & Tools enjoys a substantial market share in all parts of the

world and is a strong brand name in Africa, Asia and Latin American markets.

It exports more than 50% of its production to more than 80 countries around

the world and enjoys more than 30% share in the global market.

Since 1972 this division has been regularly receiving the Engineering

Export Promotion Council's excellence award.

Customers all over the world prefer the company's products as it means

value for money in terms of all aspects of the product and services. JKFT

supplies files to Original Equipments Manufacturers (OEMs) in Europe and

USA. It also supplies to Machete manufacturers who complement their product

range with the company's files. JKFT also services to large distributors and

wholesalers who deal in tools and hardware items.

CONDOMS

J.K. Ansell has consistently earned the approval of buyers the world

over and is recognised both for high quality condoms and consumer appeal.

78

At every stage in the process, from sourcing the raw material through the

production process to dispatch, stringent quality parameters are met.

The plant is ISO 9001 certified and accredited for CE Mark from British

Standards Institute, UK. We have elaborate testing facilities in-house. Our

products also conform to various international standards like ISO 4074, BS

3704, ASTM, WHO, SABS and US FDA 510K.

The company exports condoms to over 25 countries including South

Africa, Russia, Ukraine, Saudi Arabia, Kuwait, Ivory Coast, Bangladesh, Sri

Lanka, Botswana, Romania, Nepal and UAE.

Branded condoms apart, the company is also involved in institutional

supplies to various countries. It has in the past supplied condoms under EEC,

World Bank UNFPA funded programmes to Bangladesh and Kenya. The

company has also exported bulk products to Ansell International for the

markets of USA and South Africa.

GROUP COMPANIES

Incorporated in 1925, the Raymond Group is a Rs. 1400 crore plus

conglomerate having businesses in Textiles, Readymade Garments,

Engineering Files & Tools, Prophylactics and Toiletries.

79

The group is the leader in textiles, apparel, & files & tools in India and

enjoys a pronounced position in the international market. Raymond believes in

Excellence, Quality and Leadership.

Raymond Ltd.Raymond Limited is India’s leading producer of worsted

suiting fabric with a 60% market share.

Raymond Apparel Ltd. has three highly regarded menswear brands in its

folio: Park Avenue, Parx & Manzoni.

J.K. Ansell Ltd. is the manufacturer and marketer of KamaSutra brand of

premium condoms.

J.K. Helene Curtis Ltd. is the marketers of the Park Avenue and Premium

brands of men’s toiletries.

ColorPlus Fashions Pvt. Ltd. Established in 1994 ColorPlus is one of the

leading domestic brands for premium casual wear in the country

RAYMOND LTD.

Incorporated in 1925, Raymond Limited has four divisions comprising

of Textiles, Denim, Engineering Files & Tools, Aviation and Designer Wear.

Raymond Textile is India's leading producer of worsted suiting fabric

with over 60% market share. With a capacity of 25 million meters of wool & 80

wool-blended fabrics, Raymond Textiles is the world’s third largest integrated

manufacturer. The company exports its suitings to more than 50 countries

including USA, Canada, Europe, Japan and the Middle East. Over the years,

Raymond Textile has developed strong in-house skills for research &

development, which has resulted in path-breaking new products. Perceived as

pioneer and innovator, Raymond Textile has been responsible for raising the

standard of the Indian textiles industry.

The Denim division has an installed capacity of 16 million meters and

produces high quality ring denims. The company currently ranks among the

top 3 producers in India. The products are exported to over 30 countries in the

world. The Engineering Files & Tools division, J K Files & Tools, is the

world’s largest producer of steel files with 90% market share in India and

about 30% market share in the world. The Designer Wear division, Be: is an

exclusive pret-a-porter range that houses designs by some of the finest Indian

designers. Be: offers an eclectic mix of formal, office and evening wear for

men and women, in western, ethnic and fusion styles with accessories. The

Aviation division, Million Air was launched in 1996 to provide air charter

services. Known for high quality and reliable services, Million Air has a fleet

of three helicopters and one executive jet.

81

RAYMOND APPAREL LTD.

To some, the ultimate in fashion. To others, something to aspire for. Brands

from Raymond Apparel Ltd – the finest in ready made garments. More of a

tradition that lives on forever. Dressing up gentlemen over the years, it is

Nirvana for the senses.

Dating back to as early as 1969, Raymond Apparel Ltd. has evolved with the

times. Its rich heritage continues to be reflected in the clothing even today. It

has three highly esteemed menswear brands in its portfolio

Park Avenue Parx Manzoni

Each brand targets a specific segment. Park Avenue is a formal brand

while Parx, a smart casual brand and Manzoni – the connoisseur’s delight.

With a well-established network of distributors and countless outlets across the

country, it cuts across regions and culture with a variety that combines style,

simplicity and elegance.

The company and the brands have won recognition and fame

consistently. The latest in the list are –

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IFA (Images Fashion Awards) 2003

Awards Won

1. The Most Admired Apparel company of the Year – Raymond Apparel Ltd.

2. The Most Admired Suit Brand of the Year – Park Avenue

3. The Most Admired Trouser Brand of the Year – Park Avenue

Nominees

1. The Most Admired Shirt Brand of the Year – Park Avenue

2. The Most Admired Trouser Brand of the Year – Parx

CMAI (Clothing Manufacturer’s Association of India) Apex Awards

Awards won

1. Largest Brand of the Year 2001-02 – Park Avenue

2. Menswear Brand of the Year 2001-02 - Park Avenue

Nominees

1. Advertising Campaign of the Year 2001-02 – Park Avenue

2. Advertising Campaign of the Year 2001-02 – Parx

3. Menswear Brand of the Year 2001-02 – Parx

Business World Most Respected Company Awards 2003

Award won

The Most Respected Company in the Ready-mades & Textiles Sector –

Raymond83

INTERNATIONAL STORES

IndiaBangladeshKingdom Of Saudi ArabiaNepalSri LankaSultanate Of OmanU.A.E.

84

CHAPTER – 5

FIRM PROFILE

SRINIDHI SILKS AND TEXTILES

A BRIEF HISTORY

CAPITAL STRUCTURE

CASH BILL OR CREDIT BILL

OBJECTIVES OF THE FIRM

MARKETING MIX

85

WORKING LEVELS IN THE FIRM

MARKETING PROBLEMS

86

A BRIEF HISTORY

Shimoga city is the district headquarters of Shimoga district. The city is

growing very rapidly. The population is also increasing in a surprising rate.

Because of the huge market the people in Shimoga will get all types of home

appliances, machinery's, foods, cloths etc. the consumers are making plenty of

choices to make their purchase for all kinds of goods. There are plenty textile

showrooms, which are famous for its goods and services. The important textile

showrooms are:

Srinidhi silks and textiles

Gandharva

Suraha textiles

Prestigious silks and textiles

This chapter is the profile of the firm "Srinidhi Silks and Textiles" which

is situated in Srinidhi shopping complex, I.S.B (Gopi) circle, Nehru road,

Shimoga. This area is one of the prominent shopping area in Shimoga city.

People come to this area for making purchase not from other part of the city,

but also from the neighboring towns.

87

The "Srinidhi Silks and Textiles" was established on 26th March 1984.

The whole shop is under the ownership of 3 brothers of the same family. They

are:

1. T.B. Ashwathanarayana.

2. T.B. Venkatesh Murthy.

3. T.B. Dattatry Gupta

They invested all their money in the construction of complex building

and the establishing the showroom. They were timely helped by "Andra Bank"

and with few friends.

At the beginning it faced some competition from other established firms.

But soon after one year the "Srinidhi Silks and Textiles" was famous for its

cloths, quick and good service. In the "Srinidhi Textiles" there are plenty of

varieties of textiles from different manufacturing companies. It has got a wide

range of textile for men section.

50 years back "Srinidhi" shop is just only a "general provision stores". In

those days the size of the shop was only 1500 square feet. But as they enter in

to textile business (i.e. in 26-03-1984) they achieved lot of success in this field.

Now the size of the shop was increased from 1500 square feet to 4000 square

feet. Even though they have not had any experience in textiles field. They got

motivation and encouragement from their relatives who are in Tumkur.88

From 1984, they never looked back they have only one target, i.e., to

achieve their desired goals and to serve the customers. Their slogan is "Limited

Profit, Unlimited Dealings".

The firm has three concern:

1. Srinidhi investment and leasing syndic etc, Shimoga.

2. Sri Bama Traders, A.P.M.C yard, Shimoga.

3. "Srinidhi Silks and Textiles" Hasana.

CAPITAL STRUCTURE

The initial investment of "Srinidhi Silks and Textiles" was only between

8 lakh for stocks and of lakh for furniture and fittings. Today, the firms is

gaining the annual turnover of more than crores. These years of success is the

result of undoubting efforts, dedication, creative thinking and team work for

which all the employers of Srinidhi are proud off. They believe in the

philosophy that each one of them right down to the least, has an equal

important part in the building of each system.

In a few years, they recognised the increasing demand for CSIC Mysore

silk sarees. They planned to start another shop especially to deal with Mysore

Silk sarees of KSIC. They were well supported by the consumers and KSIC to

89

go a head with the project. As a result on 28th November 1990 they opened

their new shop named as "Srinidhi Fasbions" besides their complex.

SRINIDHI SILKS AND TEXTILES – CASH BILL OR CREDIT BILL

90

OBJECTIVES OF THE FIRM

The firm is undertaking selling activities with the following objectives,

Consumer satisfaction:

Another important objectives of the firm are consumer satisfaction. It

aims to give better quality product to the public at a cheaper price.

Introduce new charities of textile:

The secondary object of the firm is to introduce new of textile goods in

the local market.

a) To Provide cheap price :

Another important objectives of th firm is to provide the textile to the

potential consumers in that area as cheap as possible.

b) To attain goodwill :

As aim of every business firm, the proprietor of the firm has to achieve

goodwill on that lot of effort and achievements made on create good images or

goodwill above the firm on that area by the surrounding customers.

c) Profit :

As in the case of all business firm one of the important objectives of the

firm is to earn profit,

91

MARKETING MIX STRATEGY OF SRINIDHI SILKS AND

TEXTILES:

The concept of market is very important in marketing. The American

Marketing Association defines a market as " The aggregate demand of

potential buyers for a product or services", Thus a market is a group of buyers

and sellers interested in negotiating the terms of purchase or sale of goods or

services. The negotiation work may be conducted face to face at certain place

and village or it may be done though other means of communication such as

correspondence, phones, cable or its may be done though business middlemen

and brokers and commission agents facilitating an commission agents

facilitating an exchange process between sellers and buyers. Exchange I the

heart of commerce and market. Exchange is possible on when where are two

or more parties who each have something they desires to exchanges for

something else.

Marketing Mix:

The marketing mix is the interplay of a basic and their related elements

of a marketing program. The 4 pcs. of product, price, promotion and place.

They will be examined one at a time, but it is primary importance that to

realize that they are interdependent. A change in one element usually brings 92

on a change in the others. Proper or chestrotion of these elements is the key to

a sound marketing.

a) Product Mix:

The product is a bundle of all kinds of satisfaction of both material and

non-material kinds, ranging from economic utility to satisfaction of a socio –

psychological nature. A product is all things offered to a market. These things

include physical objects, design, brand, label, package, price, services, etc.,

Product is every thing, which the purchasers, will get in change for money.

The buyer not only buys the product but also the product should satisfy him.

At is a stage on which the entire drama of successful marketing operation is

depends.

"Srinidhi silks and textiles" deals with suiting, shirting, sarees and dress

materials etc. The suiting and sarees, which Srinidhi deals, are listed as below:

Sl no Suitings Sarees (silks)

1. Raymond's Dharmavaram

2. Digjam Kanchipuram

3. Siyaram's KSIC Mysore silks &

4. Vimal Sarees

5. Gwalior Vimal sarees

6. Bombay dying Bombay dying sarees

7. Reid & Taylor Others

93

8. OCM

9. BSZ

10 Others

Managing the product includes planning and developing the right

product or services to be marketed by the company. Policy strategy guidelines

are needed for changing the existing product, adding new one's and decisions

also needed regarding branding, packaging, colour and the product features.

b) Price Mix:

Praise is an important element in meeting consumer needs. Price is

always an important consideration for both to the buyer and seller. It can often

spell success of disaster to a firm. In economic it has figured prominently for

hundreds of years, but its importance was increased today. When barter

economy changes into money economy the importance of price and money

grew and they become the very best of the exchange of the economy.

Company itself does pricing of any suiting, shirting's, silk sarees etc.,

Dealer will not be having any authority on fixing the price for the product. The

company will fix the price of their products, which includes transportation

94

charges, other charges if any, The dealers will only get an attractive

commission for the sales they perform.

The price of the product will depend upon its quality, demand in market,

reputed company etc., If the textile manufactured by reputed company is of

good quality, the price or that textile will be more. The selling price of

Raymond's textile starts from Rs.500 per meter, and it will increase depending

upon its quality. The price of Siyarams textile starts from Rs.180 per meter

and it will increase depending upon its quality. Its maximum price is Rs.450.

The price of Raymond's was hihg because it was NO 1 suit length in India. The

price of other Suitings like B.S.L. OCM, Digjam, Gwalior etc., will starts from

Rs 300 and it will also increase depending upon its quality.

The " Srinidhi silks and textile", also provided same discount to

customer.

c) Promotion Mix:

Promotion is a device of marketing communication in order to move

towards a product, a service or an idea of chattiness of distribution. Thus

promotion is necessary for creation of demand, which is one of the main

function of selling.

95

Srinidhi Silks and Textiles adopts press and radio advertisement. It will

provide it advertisement in various daily newspaper published in Shimoga. It

includes Navika, Janavarthe, etc., The A.I.R. of bhadravathi also advertises in

its broadcasting.

Other than the above media's it also advertises its products in many other

ways. Its products in many other ways. It includes window display, banner.

Etc. The Srinidhi no only advertise in Shimoga city but also advertise in

neighboring towns. Throughout the Shimoga district, it will come across many

such compounds wall window display's of "Srinidhi".

Through pamphlets also advertise their products. Pamphlets will be kept

inside the news paper and the consumer will get the pamphlet and will come to

know about the proceedings.

It also encourages by offering " Discount sales" " Reduction Sales" of

the product. During the anniversary times, It will offer contest, gift coupon,

scheme to improve its sales.

d) Distribution Mix:

Distribution may be defined as an operation or a series of operation

which physically bring goods manufactured produced by an particular

manufacturer into the hands of the final consumer to under. Distribution

96

includes all activities, which bring a product from the factory into the hands of

the final consumer, which include other marketing operation.

The distribution starts from the manufacturing process. "Srinidhi"

regularly brings the goods once in a every month. Here in " Srinidhi", the

demands of the consumer will be brought and the consumer will get satisfied

by the services rendered by the members of " Srinidhi".

4. Working Levels in Prestigious:

Proprietor

Accountant

Clerk cashier SupervisorSalesmen

MARKETING PROBLEMS FACED BY THE FIRM.

Sometimes the shop will have to face some problems, regarding the textile

products.

a) Supply of Product:

b) First and the foremost problem is, the problem of required product for ex. if

the consumer wants the textile, which is more in demand at the present

market, if the stock is over. The dealer will not get the required product 97

immediately. This is the major problem as the customer changes his mind

with day – to – day changes. Hence supply of product is one of the problem

faced by the dealer.

c) Price of the product:

The second problem faced by the firm is price of the product. It the

textile of reputed company their price are little bit high, an ordinary customer

will not be able to get the product. The dealer must wait for the arrival of

certain customers who able to purchase the product.

d) Change of views:

Thirdly the consumer may change their views while making purchases.

This is how means, the a consumer will get the substitute product even for be

cheaper rate than this product. They purchase, lower quality textiles at cheaper

rate and they will invest the remaining money in purchasing other products.

e) Change of Mind:

Another important problem is change of mind of consumers. Here a

variety of products will get a very high demand. Every consumer wants to by

such type of product. By seeing more demand for the product if the dealer

purchases that product and kept it in the shop for sale. When customer come

for purchases that product if the dealer brings some more quality of other

product in short term the consumer may shifts his demand from that product to

another. Because of this the entire new stock will remain unused.

98

CHAPTER – 6

CONSUMER SURVEY ANALYSIS

INTRODUCTION

TO STUDY

A BRIEF ANALYSIS

SUMMARY OF FINDINGS

99

CONSUMER SURVEY ANALYSIS

1. Introduction to the buyers behaviours

In this big vast city Shimoga, there are lots of people who wear textile

clothes, Shimoga is a vast growing city. Most of the people are educated.

Here the consumer plays as important role in the textile field. They are

consumers are known as the "king of the market". The reputation of only of its

goods is entirely dependent upon the attitude of the consumers. Some people

express their opinion in a very difficult way. So the consumer satisfaction must

be the motion of every manufacturer.

The survey is conducted with a view to as certain the consumers attitude

towards various types of textile clothes. In Shimoga city, with special reference

to the "RAYMONDS suiting and shirting's of "Srinidhi Silks and Textiles".

The survey is conducted among the different classes of people residing

in Shimoga city. For this survey questionnaires method is adopted. The main

aim of this survey is to study the opinion of the people residing in Shimoga

City about Raymond. The answer given by the respondents are analysed and

classified. Their opinion is the key to the survey.

100

Persons have participated for our questionnaire to make this survey

suggestion. The percentage wise opinion has been shown in all the tables

formed below for the purpose.

A brief analysis:

Here, in this survey the total number of persons are interviewed were

100. Respondents. The respondents include student, businessman, employers

and other type of people.

Table – 1

The following table and graph shows the were all selection of the textile cloth

in Shimoga city.101

Textile Brand No. of respondents Per (%)

Raymonds 36 36

Siyaram 22 22

Digjam 18 18

Others 24 24

Total 100 100

In the above table we choose the overall selection of textile clothes in

the Shimoga city. Here, in this table, the consumer prefer Raymond's upto 36%

than come Siyaram's at 22% favour by Digjam 18% and other textiles at 23%.

Table – 2

The following table & graph shows the selection of only students.

Textile Brand No. of respondents Per (%)Raymonds 7 35

Siyaram 4 20

Digjam 3 15

102

Others 6 30

Total 20 100

In the above table we choose only 20 respondents who are students. In

this table most of the student prefer Raymonds because it has good colour,

medium price so that they can afford themselves. So they rated Raymonds at

35%, Siyarams at 20%, Digjam at 15% and they rated others at 30%.

103

Table – 3

The following table and graph shows the selection of various textile brands

according the business man.

Textile Brand No. of respondents Per (%)

Raymonds 13 43.33

Siyaram 5 16.67

Digjam 8 26.67

Others 4 13.33

Total 30 100

The market share of Raymond is very high compared to others textile

because the business class consists of both executive as well as non-executives.

The executives prefer Raymonds most. So they rated Raymonds at 43.33%,

Siyarams at 16.67%, Digjam at 26.67% and others at 13.33%. we have chosen

30 respondents who are business men.

Table – 4

The following table and graph shows the selection of various textile brands according to employees.

Textile Brand No. of respondents Per (%)

Raymonds 16 53.34

Siyaram 4 13.33

Digjam 7 23.33

Others 3 10.00

Total 30 100

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In the above table we have interviewed 30 respondents who are

employer out of these they have given more performance to Raynmonds

Textile. Because of the good colour, durable, style, reputed company etc. they

rated Raymonds at 53.34%, Siyaram's at 13.33%, Digjam at 23.33% and others

at 10%.

105

Table – 5

The following table and graph shows the selection of various brands

of textiles according to other types of people.

Textile Brand No. of respondents Per (%)

Raymonds 4 20

Siyaram 5 25

Digjam 4 20

Others 7 35

Total 20 100

In the above table 20 respondents are interviewed who are other type of

persons. Out of them, more number of persons gave others at first place and

rated at 35%, Raymonds at 20%, Siyarams at 25% and Digjam at 20%.

COMMON SURVEY ANALYSIS ACCORDING TO THEIR INCOME

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Table – 6

The following table and graph shows the brands. Performance among the

people having income below-3500.

Textile Brand No. of respondents Per (%)

Raymonds 2 14.28

Siyaram 4 28.57

Digjam 2 14.28

Others 6 42.87

Total 14 100

In the above table the respondents having their income below 3000 have

being interviewed. Only 14 persons 14.28% of them buys, Raymond's 28.57%

buys Siyaram's 14.28 of them buys Digjam and 42.87% of them buys other

types of textiles.

Table –7

The table and graph showing the selection of textile brands among

the people having their income between 3000-5000.

Textile Brand No. of respondents Per (%)

Raymonds 6 30

Siyaram 3 15

Digjam 4 20

Others 7 35

107

Total 30 100

In the table 20 persons are interviewed who are having income between

Rs.3000-5000. Out of 20 respondents, 6 persons choose Raymonds, 3 persons

choose Siyarams, 4 persons choose Digjam's and 7 personn choose others type

of textile. They rated raymonds at 30%, Siyaram's at 15%, Digjam's at 20%

and others at 35%.

Table – 8

The following table and graph shows the selection of textiles brand among the

people having income between Rs. 5000-10000.

Textile Brand No. of respondents Per (%)

Raymonds 14 53.84

Siyaram 3 11.53

Digjam 5 19.25

Others 4 15.38

Total 26 100108

In the above table 26 respondents are interviewed who have a monthly

income between Rs 5000 to Rs.8000. out of 26 respondents interviewed they

rated 53.84% for Raymond's, followed by Siyarams at 11.53%, Digjam at

19.25% and others at 15.38%.

Table – 9

The table and graph showing the selection of branded textile among the people

having income above Rs. 10000.

Textile Brand No. of respondents Per (%)

Raymonds 24 60

Siyaram 8 20

Digjam 5 12.5

Others 3 7.5

Total 40 100

109

In the above table, 40 persons are interviewed who are having the

monthly income of Rs. 10000 above. Out of these 40 people 60% of the

people rated Raymonds, 20% rated Siyarams 10.50% rated Digjam and 7.50

rated other type of textiles.

Table –10

Classification of the following factors while purchasing Raymonds textile of

any other products.

Classification No. of respondents Per (%)

Quality 46 46

Colours 10 10

Durability 15 15

Economical 4 4

Price 8 8

110

Style 10 10

Reputed company 7 7

Total 100 100

In the above table, the respondents were classified according to the

above factors. 46% of the people buy the products (i.e. textile) because of its

quality, then 10% of the people buy according to the colour, 15% fo the people

buy according to the durability, 4% of the people buy because of economical,

8% of the people buy by seeing the price, 10% of the people buy according to

their style and lastly 7% of the people buy bu textile due to the company

reputation.

Classification of the following factors while purchasing Raymonds textile of

any other products

111

112

Table – 11

The following table showing respondents buying decision of Raymonds textile.

Particulars No. of respondents Per (%)

Advertisement 52 52

Friends 24 24

Neighbours 18 18

Others 6 6

Total 30 100

In the above table people buy according to their own choice, influenced

by some body and others. To check the buying decision of the consumers

about Raymonds, 100 respondents were select, Raymonds as their brand out of

30 respondents 52% of people buy through advertisement, 24% of them buy

because they are influenced by their friends, 18% of others boy because of

their neighbours buy 50, 6% of them due to other reason such as special

occasion, marriages, some body boy for them.

113

The following Graph showing respondents buying decision of Raymonds

textile.

114

Table – 12

The following table shows the texture that the respondent like most.

Particulars No. of respondents Per (%)

Cotton 35 35

Synthetic 20 20

Both 45 45

Total 100 100

The above table shoes the different likes of the respondents while. When

the purchase textile. 35% of the respondents purchase cotton tax title. Where as

20% of them purchase. Synthetic textile and lastly 45 of them purchase both

types of textile.

115

Table-13

The following table showing types textiles preferred by respondents

Category of cloth No. of respondents Per (%)

Branded 80 80

Unbranded 4 4

Both 16 16

Total 100 100

The above table shows the attitude and inciation of customer regarding

to the branded and unbranded textile cloth out of 100 respondents 80% of

them purchase branded cloth 4% of them purchase unbranded and 16% of

them purchase both type of textile cloth.

116

Table-14

The following table and graph shows the opinion of respondents regarding the

price of Raymond's Textile.

Opinion No. of respondents Per (%)

Low 6 6

Medium 3 3

High 64 64

Total 100 100

In the above table; 100 respondents are interviewed who are interested in

Raymond's Textile, out of them 6%. People tells the Price of Raymond's

Textile is low , 30% of them telles. Its prices as medium and 64% of them tells

the price of Raymond's is high.

Table-15

The following table and graph shows the opinion respondents regarding the quality of Raymond's Textile.

Opinion No. of respondents Per (%)Good 32 32

Excellent 54 54

Satisfactory 9 9

Not bad 5 5

Total 100 100

117

In the above table 100 respondents who purchase Raymond's Textile

give their opinion about the quality of Raymond's textile out of respondents,

32% of them rated the quality as good, then 54 of them rated as excellent,

there, 9% of them rated as satisfactory and 05% of them rated as not bad

SUMMARY OF FINDINGS.

The following table shows the total percentage Of customers of different

brands of textile cloth.

Respo

ndents

Raymond

s

Siyarams Digjam Others Tot

al

No % No % No % No %

Studen

ts

7 35 4 20 3 15 6 30 20

Busine

ss men

13 43.3

3

5 16.67 8 26.67 4 13.33 30

Emplo

yer

16 53.3

4

4 13.33 7 23.33 3 10 30

Others 4 20 5 25 4 20 7 35 20

Total 40 18 22 20 100

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119

CHAPTER - 7

SUGGESTIONS & CONCLUSIONS

SUGGESTIONS TO

THE COMPANY

CONCLUSION.

120

SUGGESTION & CONCLUSION

1. Suggestions to company and firm :

In this survey, we have sent that all the user of the product, i.e. the

students, employers and businessman given the Raymonds first place

and the others gives the other type of people gives the third place. In

this survey, it is absorbed that its performance, quality, good colour

price and other attributes have attached a large number of customers.

Similarly "Srinidhi silk and Textiles" has also a very good reputation

and they have gone a long way in the sales and service activities. The

following are the suggestions for the better performances of Raymond

textiles to increase their sales and services.

a. Product

Raymonds textiles is the leading company in words woolen and textiles

Manufacturing in our country. It has earned a very good name and popularity

in the world of suiting and shirting's. Therefore almost every consumer is

satisfied with the results. The following are some suggestions for attracting

better performances of "Raymond's" and increase the sales in the future.

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The manufacturers have to put more efforts on maintaining and improve

the quality of Raymond's. They should see that textile Manufactured is of

good quality.

The Raymond Textile Company is expected to increase its distributing

channels and should keep supplying the goods in time required by the

dealers whatever their demand.

Inspire of good quality, it is unobserved that the textile of Raymond's have

good popularity and there is a lot of demand in the market as compared to

others. Here, some of the consumers do not purchase the textile of

Raymond's always, but only one in a way. Sot he manufacturer is required

to take proper promotional activities in under to popularize the product

through different advertising media's.

Dealers most take responsibilities if there is any small complaint from the

customers.

b. Price

The Raymond's textile has got a very good image and has got a very

good image and has on increasing demand. As there are number of competitors

existing in the market, the price becomes an important factor in order to

increase the sales and rise in demand. Raymond's is accepted by middle class

and rich people by majority. The low class people feel that the price is

relatively high but they also buy it once in a way. Therefore the price of the

122

product must be comparative. So as to improve sales in the competitive

market.

The following are some suggestions towards the price:

1. The cost of production should be certain led by increasing the production

while implementing the cost. Care must be taken such that quality of the

product is not affected adversely.

2. Here, the low class people buy the product once in a way, 50 proper care

should be taken and the price should be lowered at least to compensative

them.

3. They must try to maintain the price stability as for as possible.

4. Price must be fair in order to create impulsive buying.

5. The market expenditure should be minimized.

However, the high pricing strategy, involved in this textile is mainly to

building the image of the company.

PROMOTION AND DISTRIBUTION:

Sales promotion is an important instrument to lubricate the marketing

efforts. The promotion strategies, taken up by the company is quite 123

satisfactory. The sales officers visit the dealer once in a while. This is mainly

to assess the sales, to know the problems of dealers, if any.

The advertisement of Raymond's appears in T.V. Newspapers,

magazines etc, as for as distribution is concerned.

In this survey as far as the advertisement of Raymond's is concerned,

most of the consumers are influenced by magazine and T.V Srinidhi has also

adopted different media of advertisement in Shimoga city in addition to the

process efforts.

Thus the general condition of promotion and distribution of producers as

well as dealers are quite satisfactory. There are some further suggestion for

improvement.

The person sales promotional activities should be taken in order to increase

buying responses by ultimate consumers and also to improve. Market share

of Raymond's.

Attractive advertisement through all the media's of a advertising is very

necessary in order to increase the usage rate of sent consumer and also to

meet the competition.

Promotional measures such as contests, prize coupons and premium should

be attached to sales.

124

Srinidhi should also take greater care for local advertising. Regular

advertising is to be given in local newspapers, some promotional measures

have to be provided for customer who buy in bulk.

To maintain the quality where many of the manufacturers fail when they

look for more turnover or when their product is having a good demand in

the market, once the manufacturer gets a top position in the market. Many

of them fail to maintain the quality of the product. This should be avoided

so that they can maintain and improve their turnover.

The dealers should improve the display of the product, so that the

consumer will be attracted towards the product. Also, the dealer should

highly the product compared to the other products.

Public relations have now become an important marketing function.

Effective marketing communication is not possible without establishing and

maintaining mutual understanding between the company and its customers. A

bright image of the product is created and maintained only by public relations.

The marketing practitioner finds that the customer wants to delivery of

their product at right place, at the right time and at the right quality. The

ingredients of marketing mix such as product, price and promotion constitutes

the first half of the marketing. The distribution logistics inputs, is termed as the

other half of the marketing concept of customer oriented market planning. As 125

far as the distribution the manufacturer has got dense network of distribution.

The dealers are quite satisfactory about the general conditions of distribution of

product.

CONCLUSION:

The result of this survey is sufficient enough to prove that the

Raymond's silk mills ltd., co has a very good reputation in the market. It has

been successful in maintaining the quality and performance etc. in order to

maintain higher competition efficiently. There should be continuous and

through product planning.

It is also observed that it is facing heavy competition from various other

brands such as Digjam, BSL, and Bombay dyeing etc. therefore, it is most

important to keep the competitive efficiency high. It is also necessary that the

producers to see an the facts of production, price and distribution facilities.

In this present competitive market, the consumers have been describing

as the "King". Thus it is very essential that very manufacturer should

manufacture those products and services that satisfies present needs of the

consumers. Consumers orientation is of an immense importance for image for

creating and maintaining the brand image in the minds of the consumer. Thus,

it is important on the part of the Raymonds limited of dealer in Shimoga city

126

may consider this analysis and suggestions for achieving higher market

performance in the future.

Since the sales of textile is being seasonal and due to some other

technical reason. The company could not reach its usual profit percentage.

Despite this fact, the company has managed to increase its sales turnover for

the year. However, the operating profits were lower. The company should take

measure to improve sales and turnover of the product.

BIBLIOGRAPHY

i) Encyclopedia

ii) Business today

iii)Raymond's dealers

iv) News papers and journals

v) Marketing management

vi) Friends

vii) Web site

127

CONSUMER QUESTIONNAIRE

Dear Sir,

I am final year B.B.M student from Sahyadri College. I am doing survey

on attitude of consumer towards "Raymond’s Textile". So I request you to

kindly spare some time for filling up the below questionnaire form.

Thanking You,

ANKITH BM

1. Name & Address :

2. Age :

3. Occupation :

a) Student [ ] b) Businessman [ ]c) Employer [ ] d) Others [ ]

4. Monthly Income :

a) Below 3000 [ ] b) 3,000 to 5,000 [ ]

c) 5,000/- to 10,000 [ ] d) above 10,000 [ ]

5. Do you purchase textile cloth?128

Yes [ ] No [ ]

6. If Yes of which textile company?

a) Raymond's [ ] b) Digjam [ ]

c) Siyaram's [ ] d) Others [ ]

7. Which type of texture do you like most?

a) Cotton [ ] b) Synthetic [ ] c) Both [ ]

8. Which category do you generally use most?

a) Branded [ ] b) Unbranded [ ]

9. Have you heard about Raymond's Textiles?

Yes [ ] No [ ]

10. If Yes, How?

a) Advertisement [ ] b) Friends [ ]c) Neighbors [ ] d) Others [ ]

11. Do you use Raymond's Textiles?

Yes [ ] No [ ]

12. If Yes, on what basis do you prefer?

a) Quality [ ] e) price [ ]

b) Style [ ] f) Durable [ ]

c) Economical [ ] g) Reputed [ ]

d) Good colour [ ]

129

13. If No, why?

a) Poor quality [ ] b) Not attractive [ ]

c) High price [ ] d)Non-durable [ ]

e) Not interested in this material

14. What is your opinion about the price?

a) Low [ ] b) Medium [ ] c) High [ ]

15. What is your opinion about the quality?

a) Excellent [ ] b)Good [ ]

c)Satisfactory [ ] d) Not bad [ ]

16. Are you aware of Srinidhi Silk and Textiles?

Yes [ ] No [ ]

17. Are you satisfied with the service provided by them?

Yes [ ] No [ ]

18. Suggestions:

______________________________________________

______________________________________________

Thanking you,

Date:Place: Signature130

131

ANNEXURE

CONSUMER QUESTIONNAIRE

BIBILIOGRAPHY

Encyclopedia

Business Today

Raymond’s dealers

News paper & Journals

Marketing Management

Friends

Website

132