KOLKATA

DEPARTMENT OF FASHION MANAGEMENT STUDIES

INTERNSHIP PROJECT

SAMPLING

SHAHI EXPORTS PVT. LTD.

SHIRIN MORGAN

MFM-SEMESTER III2012-2014

MASTER OF FASHION MANAGEMENT

DEPARTMENT OF FASHION MANAGEMENT STUDIESNATIONAL INSTITUTE OF FASHION TECHNOLOGYKOLKATA

DECLARATION

I hereby declare that this report is an original piece of research work carried out by me under the guidance and supervision of Mr. Satnam Singh, ( Senior Merchandiser),Shahi Exports Pvt. Ltd. The information has been collected from genuine and authentic sources and there is no plagiarism or dishonest means involved. The work has been submitted in partial fulfillment of Master of Fashion Management to NIFT Kolkata.

CERTIFICATE FROM GUIDE REGARDING COMPLETION OF WORK

This is to certify that the Project entitled MERCHANDISING PROCESS IN SAMPLING DEPARTMENT submitted towards the partial fulfillment of the Degree of Master of Fashion Management by SHIRIN MORGAN is her original work under my guidance and the results are based on the research done by her.

Ms. Bharti MoitraChair PersonFMS DepartmentNIFT

Date:Place:

ACKNOWLEDGEMENT

To begin with, I am grateful of Mr. Satnam Singh, Senior Merchandiser, Shahi Exports Pvt. Ltd., Faridabad, who permitted us to do a project on this topic. His constant guidance and positive criticism has helped to a great extent. After facing many of his rejections and corrections, I have been able to complete this project.I take this opportunity to thank everyone who helped me in successfully completing this Internship project regarding Merchandise Planning at Shahi Exports.

I would like to thank my Institute, NIFT KOLKATA, for providing me the opportunity to carry out the study as a part of my Post Graduation Project.

I extend my sincere gratitude to Mr Satnam Singh who had been my project guide and helped me out with his regular guidance and the vision for carrying out this project.

I would like to thank Mr. Harish Ahuja (President) of SHAHI EXPORTS, for providing me the opportunity to undertake this project in their organization.

I would also like to express my gratitude to Ms. Bharti Moitra who supported and helped me throughout the project.

I would also like to thank Ms Sunita Pal (Sample coordinator), MEXX & LUCKY BRAND) who helped me in every step by providing necessary data for carrying out the project successfully.

I would also like to thank all the officials of SHAHI EXPORTS and all my colleagues who have helped me during the course of this project.

EXECUTIVE SUMMARY

The aim of this project is to study the role of a merchandiser in the sampling department. The journey throughout has been exciting and has made me learn a lot about SHAHI and the other elements OF EXPORT HOUSE. The research started with the study of SHAHI and the sampling department. Chapter 1 is Introduction which depicts the companys profile. Its vision and mission,majors buyers and suppliers.Chapter 2 is Chapter 3 is Chapter 4 is about the Chapter 5 is Findings Chapter 6 concludes

TABLE OF CONTENTS

i. Acknowledgement ii. Declarationiii. Certificate Executive summary

Chapter 1:INTRODUCTIONChapter 2: ORGANIZATIONAL STRUCTUREChapter 3:DEPARTMENTSChapter 4:SWOT ANALYSISChapter 5:FUNCTIONAL ANALYSISChapter 6:DEPARTMENT STUDIESChapter 7:OBSERVATIONSChapter 8:FINACIAL STATEMENT ANALYSISChapter 9:RECCOMENDATIONSChapter10:CONCLUSIONSChapter 11: BIBLIOGRAPHY

ANNEXURES

RESEARCH OBJECTIVES2.1.1 Primary Objective To understand the working of sampling department in an export house2.1.2 Secondary Objectives To study the work flow and organizational hierarchy of SHAHI To study the financial statement of the firm in terms of ratio analysis

CHAPTER : 1 INTRODUCTION

SHAHI Exports Pvt. Ltd. is engaged in the manufacture and export of readymade garments in the International market. It is one of the largest export houses in India. The company started its operations in the form of a small fabrication unit with the help of 25 machines.

The company has grown from leaps to bounds from a simple fabrication unit to present turnover of Rs. 2200 crore, around 55000 employees and spread over 27 locations. It has manufacturing units in six different states of India viz. Delhi, Haryana, Uttar Pradesh, Tamil Nadu, Karnataka and Andhra Pradesh. The group is into manufacturing of a wide range of Mens and Ladies wear and also home products.

SHAHI group has all the modern units equipped with state-of-the-art technology giving the best to its buyers.

Its manufacturing facilities includes Assembly line machines, Prima Vision system print/fabric development, Meyer fusing press, Barudan and Tajima, Multi head computerized embroidery machine, in house washing plant, automatic cutting machines (F.K. Systems).

SHAHI has a well-equipped sampling division where latest patterns/designs/styles of high standards are developed with the assistance of experienced designers.

It has a training center for tailors at Faridabad and Bangalore each to train and develop them into vital human resource for efficient operations.

As regards to quality, SHAHI has been ranked one of the best in Asia by J.C.Penny, the world-renowned departmental stores.

1.1 COMPANY PROFILE

Name: Shahi Exports Private Limited Established: 1974 Owner: Mrs. Sarla Ahuja Managing Director: Mr. Harish Ahuja Address: Industrial Plot-1, Sector 28 Faridabad, Haryana Work Force: More than 30,000 Capacity: Over 2 million high quality garments per month Retail House: At Last & Co. , New York Fabric Processing: Sarla Fabrics, Ghaziabad Annual Turnover: INR 2200 crore (Group Turnover)

COMPANY MISSION:Exploring new dimensions of excellence. A path, where there was none. A new horizon beyond yesterday. Excellence beyond today, touching tomorrow. Its a world of relentless quest for quality. Its mindset, the action, and partners of Shahi are ever reaching further, never resting on achievements. Yes! Milestone never takes one there; it is the road that we create to reach excellence. Ever evolving excellence. Shahi believes that its main strength is its people. The larger investments made in the manufacturing units will give the desired results only if backed by a committed human effort. The result will directly give us a sense of pride for being a part of Shahi family.CORPORATE VISIONBe the global best in bringing delight to human life by weaving dreams of fashion & feelings of comfort.CORPORATE VALUESGuiding principles illuminate the path that leads to their destination. SHAHI emphasizes on some guiding principles, which are indicative of the values it believes in and would like to continue in the organization. These are the building blocks of the organizational culture. The company believes in: High level of honesty and a sense of responsibility. Two-way communication channel for all purposes of communication. In sharing the fruit of growth, prosperity with its partners i.e. the employees. In giving each individual room to contribute and grow.

The company firmly believes that team spirit is the hallmark of success.

KEY STRENGTHS Shahi Exports Private Limited (Shahi) is one of the largest vertically integrated garment manufacturer and exporter in India.

Indias second largest apparel exporter by value of exports.

Shahi is one of the most successful professionally managed companies in India.

Indias largest exporter by installed capacity.

Well qualified trained and committed professionals with a shared vision.

Highly qualified Design team, Product development skills and a Design Studio.

High degree of adoption of advanced manufacturing technology MIS and IT systems.

All factories and offices are electronically linked to facilitate all time access to information

Focus on quality and a proven track record :

Short shipment: 0.50%On time delivery: 98%Quality claims: Nil.

PRODUCT PROFILE:The following are based and operated in NCR1. LSD Ladies Specialty Division2. LBAD Ladies branded Apparel Division3. LFD Ladies Fashion Division (basically caters to Wal-Mart)4. HFD Home Furnishing Division

MAJOR BUYERS 7

Tommy Hilfigher Armani Hugo Boss Liz Claiborn Abercrombie & Fitch (A & F) J.C. Penny Kohls Gap Target Wal-mart Calvin Klein Espirit Hennes & Mauritz (H & M) Nautica

SUPPLIERSThe main markets for fabric supply for Shahi are Delhi, Panipat, Amritsar, Salem, Mumbai.Some of the fabric suppliers of Shahi ( for both sampling & Production) are: Muthu Corp, Erode Picanova fabrics pvt ltd, Mumbai New Diamond Woollen mills, Amritsar Mafatlal Industries Ltd, Nadia Ramkumar Mills Pvt Ltd, Bangalore Netflex India Pvt Ltd, Mumbai Priyanka Fabrics, Salem Bhuvana Fabrics, Erode Vincord Textiles, Delhi Vijai Fabric Connection, Erode L.K Woollen & Silk Mills, Amritsar A.P Khanna & Sons Pvt Ltd, New Delhi Himgiri Textiles, Faridabad Rajindra Handloom Pvt Ltd, Panipat Shiv Shakti Furnishing Pvt Ltd KCS Fabrics Pvt Ltd (handloom, jacquard upholstery & curtains) Mauryas, Delhi Parkash textile Mills, New Delhi Charu Enterprises, New Delhi R.G Jindal & sons pvt Ltd.

The thread suppliers are: Coats Vardhaman Pashupati Oswal

Shahi has an in-house testing lab for measuring GSM, color fastness, rubbing fastness, Dimensional Stability, stretchability and testing others properties of fabrics

For labdips, strikeoffs and other approvals, fabrics are sent to testing laboratories like: MTL ITS-International Testing service

1.2 COMPANY HEIRARCHY

CHAPTER: 2 ORGANIZATIONAL STRUCTURES2.1 Product design & developmentHODSenior merchandising managerSenior DesignerAssistant DesignerJunior designerTotal no. of designers:

2.2 Merchandising DepartmentMerchandising managerDivisional merchandising managerSenior merchandiserJunior merchandiserTotal no. of merchandisers including each and every team:2.3 CuttingManagerSpreaderCutting masterQuality checkerPart checkerSupervisorTicketing Bundling FusingPart cutting Total no. of persons in cutting:

2.4 Production DepartmentProduction ManagerFloor ManagerLine supervisorOperators

2.5 Accessory DepartmentAccessory In chargeStore Assistant Quality checkerHelper

2.6 Accounts DepartmentSenior ManagerAssistant ManagerCredit control manager

2.7Quality Assurance Department:

2.8 Sampling:

2.9 Administration:2.10 CAD:

2.11 Embroidery:

2.12 Electrical:

2.13 Fabric:

CHAPTER:3 DEPARTMENTS PRODUCT & DESIGN DEVELOPMENT MERCHANDISING DEPARTMENT SAMPLING DEPARTMENT ORDER ANALYSIS DEPARTMENT COMPUTER AIDED DESIGN DEPARTMENT PRODUCTION PLANNING AND CONTROL DEPARTMENT FABRIC SOURCING DEPARTMENT PURCHASE & LOGISTICS DEPARTMENT TESTING LABORATORY DEPARTMENT FABRIC STORE AND INSPECTION DEPARTMENT CUTTING DEPARTMENT COMPUTERIZED EMBROIDERY DEPARTMENT INDUSTRIAL ENGINEERING DEPARTMENT SEWING DEPARTMENT WASHING DEPARTMENT FINISHING DEPARTMENT PACKAGING AND DISPATCH DEPARTMENT DOCUMENTATION HUMAN RESOURCE

3.1 MERCHANDISING DEPARTMENT

A merchandiser is an interface between the buyer and the supplier who has to ensure the quality of production and timely delivery. Merchandising is a process through which products are planned, developed, executed and presented to the buyers. It includes directing and overseeing the development of product line from start to finish.ROLE OF THE DEPARTMENT To look for the appropriate market To get the samples made according to the buyers specification To estimate and quote the cost of the garment to the buyer and negotiate with them Getting orders Constant interaction with the buyer for the approval To get the fabric and trims in-house for bulk production Co-ordinating with the PPC and production

OBJECTIVE OF MERCHANDISER To create market Understanding buyers requirements Sourcing of materials, fabrics Select the range Creating the product Taking buyers approvals Negotiation with buyer Procuring the orders Materializing the order Execution the order Coordination between production and production planning department Dispatching the shipment

After shipment dispatching merchandiser is also responsible for buyer claims, profit and subsequent orders. If buyer has any problem in quality of the product then it is the responsibility of the merchandiser to resolve the problem with the buyer.

HIERARCHY

PROFIT CENTER HEAD, MARKETINGDIVISIONAL MARKETING MANAGERMARKETING MANAGERSENIOR MERCHANTMERCHANTJUNIOR MERCHANTCO-ORDINATOR

PROCESS OF MERCHANDISING: The first stage of merchandising is when buyer sends either spec, sketch or any garment pieces and asks for sample with costing or only costing using different fabrics. The specs sent by the buyer are also called Tech Packs.

The merchandiser gets the approval of all things like fabric, trims, label, costing etc. and either buyer gives the approval or gives the vendors name. -The allocation chart and FTP directory is received by the merchant from the buyer online.-The fabric CAD is also received from the buyer which has all the details of the pantone shade and the repeat size. -The prints are developed from their own mill, SFL (Sarla Fabric Limited) or are subcontracted.-A CD is developed which has the color picture of the fabric. This is sent to the fabric department for development.-Sample piece is developed.

Next, costing is done on the basis of the spec, sketch and garment which are sent by the buyer for making the sample. Merchandiser does the average costing/consumption of the garment. The quotation is sent to the buyer/buying house and the approval is awaited. One thing is to be noted that while giving the consumption, the cut-able width of the fabric to be received (either mill made-developed in India or imported fabric) has to be considered while costing. Also the marker utilization depends on the style, which may affect the consumption greatly. The fabric characteristic also matters vis--vis nap etc.

The merchandiser monitors the design from sampling to production and then final dispatch. They are a link between the buyer and the company. All correspondence that the buyer wants to do regarding his style will be done through the merchandiser. Merchandiser monitors the total sampling from development to the time the production sample is made and goods go into actual production.

They also see that the fabric is developed on time and send it for approval to the buyer and subsequently if all samples are made on time, send them to the buyer for approval too. They are also in constant touch with production to know the status of their styles.

Merchandising activities include:1. To get order: Buyer directly communicates with the merchandiser in order to place the order. Fixed buyers are allotted to merchandisers and the communication is between the buyer an that particular merchant. 2. Costing: Costing of the garment in bulk is calculated on the basis of quality of material and their requirement in the garment. It is one of the most important activities of the merchandiser. To arrive at a perfect price to be quoted to the buyer, following points are taken into consideration:Costing is done considering these aspects of the cost.

FIXED COST1. Factory Cost - It is the fixed cost incurred for running the factory. It is different for different floor.2. Standard Sewing Cost Direct Labour:Operators Salary Indirect Material:Lubrication Oil, Needles , Cleaning Material Indirect Labour:Staff & Maintenance Salary Indirect Expenses:Power, Depreciation Of The Machinery The standard sewing cost per operator per hour defined by Shahi for its Faridabad unit is Rs 62.83VARIABLE COST1. YY (Yields/yards) It is average consumption of the fabric. It is decided by preparing a mini-marker which includes wastage of fabric due to laying, cutting, fabric defect, end cutting loss, marker loss and the buffer that is maintained to avoid shortage in future.

2. Trims Cost They are procured from local market as well as imported as per buyers requirements. Calculation of cost of fabric per garment Calculation of cost of trims and threads Cut-make cost Poly bag cost Cost of carton box Calculation of consumption of fabric (yields per yard) and threads to produce one garment3. Sampling: Merchandiser is involved in coordinating with the sampling department. Based on the mutual agreement between the merchant and the buyer, sampling department is involved in making samples. In every step of samples, buyer sends back comments along with the tech pack.4. Order confirmation: After the approval of all the samples, the order is confirmed by the buyer. Merchandiser receives the PO sheet. Merchandising department communicates with planning and production departments and decides for the possible PCD (production cut date) for the required quantity. Then he fixes up the PCD and delivery date with the buyer.

5. Preparing the time and action plan: This is prepared by the merchant stating that all the different activities associated with the order should be complete by the stipulated dates. It is like making sub goals to accomplish the ultimate goal which is shipping of the order on the pre- decided date.

6. Preparing the bill of material: This enlists all the different materials required for making the garment.

7. Execution: Merchandising department communicates with the buyer QA during the production. He gets the approval of the quality or any changes in the garment. 8. Shipment of goods: According to delivery date the goods are shipped on time. Documentation department is informed about the delivery date, the quantity etc. In case of any delay, goods are sent through air on the companys cost.For each order, the merchant has to prepare a file containing all the details and relevant documents which is passed on to the subsequent stages in the production process for reference purposes.

DOCUMENTATION IN MERCHANDISINGFile prepared by merchant has following details: Style Specification: contains a brief description of the style. Style # : as mentioned by the buyer Movex item # : Item number of the style by Movex Buyer: Name of the buyer PCD: Production cut date for the style Merchant: Name of the merchant handling the styleThe file contains the following: Purchase order for the style Garment techpack Relevant communication with the buyer regarding proto, fit and pre production samples. All the comments from the buyer for various samples are included. Thread consumption report Fabric Test Report Fabric and trim cards: Contains swatches of the fabric and trims to be used Mini marker with costing averageFOLDER SUMMARYIt consists of the general details like brand name, buyers name, size range and the drawing of the garment.1. Color / Trim Page: It consists of the details like description, size of the trims like button size, material of which it is made of, no. of holes that it should have.

2. Fabric Page: It consists of the details of the fabric like the count of the yarn, construction (EPI, PPI) and color specifications. It also states the value addition finishes and embellishments.

3. Packing And Labeling Details: It consists of the details like type of packing, hanger type, polybag type, clips type of labeling.

4. Label Placement: It describes with figures where the label, hang tag, spare button is to be attached.

5. Correct Balance : Basic and important tips for correct fit

6. How to Measure: It shows how to measure the important dimensions of the garment.

7. Technical Sketch: It is a 2-D representation of the garment showing all the stitch lines, panes, trims etc. symbolically.

8. Development Photos: It consists of the photos of the garment.

9. Specification Sheet: It consists of all the dimensions with tolerances and increments for bigger sizes.

10. Bill Passing Reports: This is the report used in fabric receiving. It states details like type, quantity, receipt no, item details, amount. It also has goods receipt note attached. It contains fabric code, width, color, quantity, rate, value etc.

11. Feedback: The feedback comes in the form of comments and photographs of the garment on the dummy with its errors highlighted like puckering and pinching.

12. Costing Sheet: Contains details like cost of fabric, trims, washing, embroidery, sampling, testing, freight, duty, insurance etc.

13. Style Track Sheet: It is used to track the status of the order. It consists of details like style no., merchants name, floor on which it is allocated, name of the floor manager.

14. Initial Marker Planning Sheet: It consists of fabric width, total pieces, pieces placed, efficiency and length.

15. Approval Form : Approvals can be for fabric, trims, slight errors which are acceptable to the buyer

Workflow of the Merchandising DepartmentFig(1.3)

Buyers enquiry / Tech-packCostingStyle finalizationPurchase Order receivedFit approval process1st fitFabric/Material approval2nd fitFabric/Material orderPre production sampleFabric/Material follow-upSize setFabric/Material in-houseProductionFollow-upRegular tracking and updating buyerOrder shipping

3.2 SAMPLING DEPARTMENTSampling department is the most vital department of the organization. It is the department that develops the samples thus enabling the Product Development. This department prepares samples on the basis of the requirements of the buyer. The sampling department here caters to the need of all the other units of Shahi as it was centralized.

Sampling was self sufficient as it had its own stitching. washing, trimming, spotting, and ironing etc dedicated for the construction of samples only. The fabric and trims are sourced from the in house warehouse depending upon the availability. The fabric which is sourced for the sampling purpose is called yardage and is 25-30mts in length.

SAMPLING PROCESS: The process of sampling goes through a series of sampling stages each of them are explained below:1. PROTO SAMPLE: It is the reflection of the first techpack received from the buyer. The sample is sent to the buyer for the design approval. Proto sample is made in the base size. Styling is important. The comments and second tech pack is sent back referring changes in the sample.2. FIT SAMPLE: The comments are received regarding the shape, size and fullness. The sampleis checked for fit on body forms. It is made in exact fabric, though print maybe different,since the drape and fit are to be checked.3. SECOND FIT SAMPLE: It is similar to the first fit sample made with a few changes according to comments received from the buyer. Again a third or fourth fit sample may be required to be made. After approval of fit sample, order is confirmed along with all the specifications.4. PRE-PRODUCTION/SEALER SAMPLE: This sample is known as the bible of production. It is done for the base size of any one color and actual fabric and actual trims are used.5. SIZE-SET SAMPLE: The sample is made in actual fabric and trims in all sizes and is sent to the buyer for approval.6. GPT SAMPLE: These samples are made for garment testing for seam-slippage, tearing strength, button pulling etc. it is the garment pack sample.7. TOP (TOP OF PRODUCTION) SAMPLE: It is the best sample from first of bulk production.8. SALESMAN SAMPLE: It is made for the buyer to find out the opinion of the store owners whether the style would sell in the market or not, and the demand of that product.

Merchandiser orders for fabric Requisition WORKFLOW OF THE SAMPLING DEPARTMENTFig(1)

Alteration (if any)WashingBar-tacking, B/H SewingEmbroidery (if any)Cutting Raw material is issued on POPatterns are made as per the POThread TrimmingB/A, Riveting

Measurement CheckingIroningInitial CheckingSpottingFinal Checking (according to PO)Packing

MACHINERY DETAILSThe sampling department has 9 lines with different machines.

NoYesFabric in-house in storeUploaded in system by floor in chargeGoods Received Note provided by store in chargePhysical and technical counter check by goods received noteReport to DMM/Fabric sourcing departmentTest by labIs fabric imported/mill made?100% lotting100% lotting100% audit of each lots10% random audit of each lotReport consolidationReport to DMM Report accepted?Uploaded in systemReport to fabric storeUploaded in systemReturn fabric to partyReady to cutRejectedAcceptedYesNoEndStartYesNoReport to fabric storeIf acceptable

3.3 WORFLOW OFTHE FABRIC STORE ANDINSPECTIONDEPARTMENT

Sample cuttingFabric receiving from storesRecording of fabric as per lot/shrinkage/widthFile, sample received from OADCutting approvalCut order issueReceiving of markerLayering Cutting (CAM/manual)CheckingNumberingPassBundlingQuality auditDispatch to stitching unitEmbroidery (if required)Fusing (if required)Re-cutting (if required)3.4 WORKFLOW OF THE CUTTING DEPARTMENT:

3.5WORKFLOW OF THE FINISHING DEPARTMENT

Kaj / Button marking (manually)Receive goods from sewingBartackingButton hole stitchingWashingButton attachingThread CuttingThread suctioningIroningInitial CheckingAlteration (if any)Quality AuditMeasurement check (10%)Final checkingRe-pressingShade matchingFolding and putting in poly bagsTaggingDispatching to packing section

Erudition: Finishing is one of the most important departments where the final appearance of the garment is achieved. Loose threads are deterrent to business It is better to remove as many unwanted threads at the sewing stage as possible Proper carton packing needs to be done for avoiding problems in shipping

CHAPTER:4 SWOT ANALYSISStrength Vertical Integration Specialized units Quality adherence Introduction of ERP Efficient planning DepartmentWeakness Centralized cutting Technological Advancement Centralized Merchandising Inefficient use of ERP Communication gaps between team members Lack of team work

Opportunity Incentives and support from government for export oriented units. International presence

Low labor cost comparing to buying countries

Threat International Competition

1. STRENGTH:

VERTICAL INTEGRATION: Shahi Export House Company started its operation way back in 1973. Earlier established in Delhi ( Okhla), now in Faridabad, Shahi stands vertically integrated as one of the largest manufacturer/exporters in India offering ready-to-wear garments for ladies, men and children. It consists of units including the areas of Noida, Ranjitnagar, Gaziabad and in Bangalore. Though all the units are in different areas of Delhi & surrounding areas, there is a smooth flow of work between all the units. In total there are 18 integrated state-of-the art garment production centers of Shahi. It has its own integrated unit of fabric mills, processing units, printing & dyeing, embroidery, wash & finishes. In the case of fabric capability Shahi has: Integrated fabric base for both wovens and knits. Both facilities equipped with German and Swiss state of the art processing Machines which ensures a high level quality output Sourcing office in China providing access to diverse fabric bases in the Far East Sourcing relationship with all leading mills in India like Arvind, Morarjee, Ashima, Vardhman and several independents in auto-loom sector.

Sarla Fabrics (Earlier called as Palmprint Textiles), the fabric process house is one of Indias foremost wet processing plant. All kinds of woven fabrics like poplin, twill, canvas, gauge, corduroy, chiffon, moss crepe, Rayon, Georgettes, Nets, Velvets, Cambric, satin, Bosky, lycra etc are processed to international standards.

Prints like reactive, vat colour discharge on reactive grounds & pigments apart from some special printing techniques like burnt out effects on polyester-cotton blends are achieved here. In all, the unit produces about 90,000 mtrs of processed fabric per day.This puts Shahi at the top compared to the other export house. It cuts down the lead-time & prices. Consistency: when a company is vertically integrated there is a lot of consistency in the fabric. As from the yarn stage to the weaving stage medium remains one. Therefore there is no involvement from outside. It eliminates the mediators, excluding the provisions of wastages, transportation costs etc. Lead times: when every procedure is done under one roof, it abolishes the time required to transport the material from one place to another. Reduced transportation cost: transporting a product from one place to another consumes time & money. For any value added service like washes, sequins a company send the fabric or garment to other locations but this is not a case with Shahi every thing is done in house thus reducing transportation cost.

Specialized units: Shahi has divided the Faridabad & Bangalore as woven & knits unit respectively. By making the units specialized it has help the company in achieving better & faster production. As the same work is repeated again, it helps staff to understand faster & better which has lead to efficient utilization of resources & quality shipments. QUALITY ADHERENCE: Shahi relates itself with quality. Quality department places checks at all the required areas in all the production departments like, fabric department, cutting department, sewing department, finishing & packaging department. Other than this Q.As are also allotted for each specific brand within the organization. The Q.A department also takes active part in the sampling as it is the base on which order comes.Focus on quality and a proven track record Short shipment : 0.50% On time delivery : 98% Quality claims: Nil.

INTRODUCTION OF ERP M3The whole computerization system helps keep all the departments in link with each other. The software used is used for almost every function & process- Sampling Costing Order capturing (job order details, fabric, trims requirements) Production (Cutting, stitching, finishing, packing, consignment delivery) Shipment (boxes, box no., place) Buyers PO entry (Invoicing & Billing) Accounts/Finance (interlinking of bills, vouchers, payments, salary management, various allowances) Time Management (leave records, calculation of bonus, reimbursement amount etc) The top management people can keep track of the status of production just by a single click. All departments can keep in touch with each other and can know the status of orders.Without this whole computerization system it would had been difficult for various departments to interlink with each other. EFFECIENT PLANNING DEPARTMENT - the planning department of the company has a very good team of members which very carefully studies each garment. After the complete analytical study of each garment the team makes different combinations of folders & attachments in such a manner that it helps in faster & efficient production that too with minimal wastage of time.2. WEAKNESS

CENTRALIZED CUTTING : there is a centralized cutting in the head unit. Cutting for Delhi NCR production units is done at the head unit. At times priority is given more to some orders than that to the others. So, the cutting of the other orders is put to halt. At times when the production units are short of cut pieces they have to wait for the cutting department to work on their order, in turn wasting the time and delay in the production. TECHNOLOGY: machines that are being used in the organization in the sewing department even in the cutting department automatic spreader and cutting machines are very old and need updation. Investment in the machinery is less.

TIME CONSUMPTION IN THE FINISHING DEPARTMENT (SAMPLING) : The sampling in Shahi has to go within 3 days of receiving the tech pack. The pattern making, cutting & stitching is done within 2 days but the finishing department takes more than 1 day to finish a garment. This at times becomes a messy situation. As the sampling department is too big the finishing department & the workers are less compared thus a merchant has to always be present when his/her garment is in finishing department. This affects the efficiency of the company.CENTRALISED MERCAHNDISING: The production units are lacking of merchants to follow an order, all the work is handled and taken care by the merchants in the Faridabad unit. At times it becomes too messy to track one order as the merchant is sitting in Faridabad and giving instructions at Bangalore. This creates confusion as the merchant in Faridabad is not aware of what is going in Bangalore. This eventually increases the lead time as everything has to be sent to Faridabad merchants for approval and then sent back. As the lot approval has to be sent to Faridabad after the approval it is again sent to the production unit, this activity is very time consuming. Even the P.O. is made by the merchant in Faridabad so if there is some shortage of fabric it has to be informed in Faridabad after which again a P.O is raised after which only the fabric is generated. INEFFICIENT USE OF ERP:The merchants & DMMs are not using the ERP system MOVEX efficiently. The system is capable of doing lots of things which can reduce the lead time and increase efficiency of an order, but this is not done. The system is used just to generate the P.O which is a part of the ERP. The merchandisers have not taken any classes for the same; they are working on hit & trial method or learnt something from their seniors.3. THREATS

1) International competitionChina, which is the largest exporter, has substantially increased its market share. Countries like Bangladesh and turkey are very cost effective. China excels in the industry because of cheap labor, efficient management, higher productivity, government policies, strong research and development and industrial base.4. OPPORTUNITIES

1) Incentives and support from government for export oriented units:The government pays duty-drawback i.e. you get the excise duty and import duty back.

2) International presence :SHAHI has a international presence in the global market. It is well-renowned for its quality and facilities. It is one of the leading exporters of apparel.

CHAPTER:5 Functional Analysis

Service: To make the samples of different stages on time for the approval of the buyerPURPOSE: TO ADHERE TO THE HIGH QUALITY AND PROVIDE ON TIME FABRIC & ACCESORIESFUNCTIONSCOMPETENCY

Function1To make samples according to the techpackat all stages1. Highly skilled labor2. Fully equipped infrastructure

Function 2To get approval of the fabric/print, color by the buyer

1. High quality printing and fabric is used2. Shahi has its own factory for printing and mill for fabric3. Highly organized software for ordering i.e. MOVEX

Function 3To coordinate with buying house team and the buyer

1. Skilled personnel, like senior merchandiser or the DMM do this

Function 4To strictly follow the time period allocated for submission of the desired sample

1. Lacks team work and time management.

Function 5To handover the production file to production merchandiser team

Highly organized files are made with details like PO (PURCHASEORDER),TECHPACK,CONSTRUCTION SHEET,MEASUREMENT SPECS,MARKER,TEST,REPORT,FABRIC CARD,TRIM CARD,PDS SHEET ( PRODUCTION ,OB ( OPERATION BULLETIN)

CHAPTER:6 DEPARTMENT STUDIED Mentor: MR. SATNAM SINGH( senior merchandiser)Email:satnam.singh@shahiapparel.co.inNumber: 9871981333BRAND: MEXX & LUCKY BRAND UKMy weekly learning and roles and responsibilitiesOrder LUCKY BRAND ( MENS DIVISION)WEEK 1:I joined the company, on 3RD June. In the first week became acquainted with the company and the team members comprising a senior merchandiser ( Mr Satnam Singh) , assistant merchandisers (Mr Mohit) and sample coordinator(Ms Sunita Pal)WEEK 2: I learnt the sampling procedure.It primarily consists of :1) Sample making2) COORDINATION3) SOURCINGAlso learnt filing of techpaks, different patterns, making a cutting order, filling out submission forms, preparing requisition sheets(for fabric and accessory), downloading the purchase orders and filling out the necessary details.WEEK 3:A file was handed over by the pre-production department for sampling and sourcing as the purchase order was received along with the approved proto sample.

WEEK 4:The fit sample was prepared and was sent to the buyer for approval.The 1st fit sample was rejected. Following were the comments- Fusing was missing from the collar band. And the garment was made with opposite grain of the fabric.

Simultaneously, the order was made for the trims & fabric for production.WEEK 5 Correction was done on the fit sample and 2nd fit sample was made.The 2nd fit was then approved and the final pattern was then sent for grading and marker. The costing was done accordingly.WEEK 6 Follow up was done for the fabric which was ordered around 15 days back.After approval the GPT samples were also made by the sampling department for garment packaging test.The pre-production sample (PP sample ) was made and sent to the buyer for approval.Following were the comments received: Pocket flap did not have continuous check pattern and the fusing in the flap was also missing. The PP sample did not had the actual trims ( labels ,snap buttons etc.), it was made in substitute trims.The PP sample was sent again after correction with actual trims. And was approved by the buyer and was sent after sealing the PP sample (AKA RED TAG SAMPLE) to the merchandiser.Week 7:The production file for the order was made and was handed over to the production merchandiser for production along with the sealer sample and the sourced fabric and trims.Alongside, this team got the account of Bhane, which is SHAHIs own online retail brand launched on December 8th, 2012.The responsibility for BHANE was: To source the fabric and trims for the production. To get approvals on the trims and fabric lots. To get the grading and marker planning done for the fit samples (which were given by the BHANE team). In the end, to make the PP sample and get it approved. Hand over the file to production manager for production along with the sealer sample and trims and fabric.

CHAPTER:7 OBSERVATIONS The average FOB is $10. The most complex stage is getting the approval from the buyer on fabric, shades, print and fit. Any delay at any stage can delay the entire order. The operators in the sampling department are very experienced and highly skilled. They are explained the construction of any new sample by the pattern master and the supervisor. IT plays a crucial role in the merchandising department. All information regarding the order status is fed into the ERP. This facilitates smooth flow in the department. The sampling department as a whole doesnt work on TNA calendar. The maximum time is spent in the procurement and approval of trims and fabric.

CHAPTER:8 FINANCIAL STATEMENT ANALYSIS

Following were the findings:

I. Liquidity Ratios :

Gross working Capital Sum of all current assets

2012-132011-12

6,92,30,91,242.005,43,42,20,152.00

Interpretation: the GWC of the previous year is less the current years by 1,488,871,090.Net working Capital = (CA-CL)

2012-132011-12

23481492032290666159

Interpretation: these are the remaining current assets of the company after paying all current liabilities. The company has more NWC in the current than previous year by 57,483,044. Current Ratio =(CA/CL)2012-132011-12

6,92,30,91,242.001.515,43,42,20,152.001.73

4,57,49,42,039.003,14,35,53,993.00

Interpretation: It shows the current assets available on each 1 rupee of liability.In the current year, it has declined from 1.73 from the previous year to 1.51.It shows that the company doesnt have sufficient current assets to pay off its current liabilities.

Quick Ratio = (CA- Inventory)/CL2012-132011-12

6923091242-24376656750.985434220152-19280499251.12

4,57,49,42,039.003,14,35,53,993.00

Interpretation: Amount of quick assets available against each 1 rupee of liability.It shows the capability of the company to pay its immediate liabilities. In the current year, the company doesnt have sufficient quick assets to overcome its liabilities.II. Capital Structure Ratios :

Debt-Equity Ratio = Borrowed Funds/Owners Capital2012-132011-12

3,67,35,38,430.001.764,10,83,10,603.004.57

2,09,12,63,042.0089,95,38,509.00

Interpretation: It shows the long term solvency of a company. It shows the relation between the borrowed funds and owners capital.Its implies that for each 1 rupee of owners capital, the company has 1.76 rupee of borrowed funds.

III. Profitability Ratio :

Return on Assets = Net Profit/ Total Assets*1002012-132011-12

1,13,96,81,313.000.1184,95,41,729.000.10

10,37,00,97,047.008,20,16,96,278.00

Interpretation: It shows the net profit earned against each 1 rupee of total assets.In the current year, ROA of the company is 11%. Return on Equity = Net Profit/ Equity Capital*1002012-132011-12

1,13,96,81,313.000.5479,20,52,904.000.88

2,09,12,63,042.0089,95,38,509.00

Interpretation: It shows the net profit earned against the equity capital.

Return on Capital Employed = Net Profit/ Total capital Employed2012-132011-12

1,13,96,81,313.000.1179,20,52,904.000.10

10,33,97,43,511.008,15,14,03,105.00

Interpretation: It shows the net profit earned against the total capital employed (equity, debt and current liabilities).Conclusion: Credit worthiness of the company is high. ROE shows that company is earning good profit for the shareholders. The short term solvency of the company is not good.

CHAPTER:9 RECOMMENDATIONS

The team in sampling department should work-out a TNA plan in order to efficiently manage time and submit samples without delay. They should work according to a proper plan so that the work flow will be smooth and the employees wouldnt be overloaded. There was communication gap between departments relating to a particular order and within the team, hence that can be avoided.

CHAPTER:10 CONCLUSIONSI have learnt quite a lot about the working of this industry through this internship. The work involved in an export house is very tedious and requires a great amount of knowledge regarding the fabrics and also time management. Without a TNA plan, it can be very stressful and inefficient.But when the orders are met on time and a cycle is completed which takes about 3 months at the maximum, the rewards which is the satisfaction of the client and self assurance is very fulfilling.During this time frame of internship Gotthe knowledge about the organization setup of SEPL.

Learned about the functional as well as managerial aspects of the company.

Have practical knowledge of process involved in company.

Learned to negotiate with the vendor and Buyer.

Applied the theory to practical work situations.

Follow Up of Sampling in Merchandising Dept.

Learned to follow up with the tech pack.

CHAPTER:11 BIBLIOGRAPHY

www.shahi.co.in www.google.co.in

ANNEXURES