EXECUTIVE SUMMARY
INTRODUCTION Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the flagship Company of the LNJ Bhilwara Group. RSWM is a premier company of the Group, with a turnover of Rs. 1150 crore in 200708. RSWM is exporting a complete range of yarn and fabric to over 70 countries worldwide, giving RSWM a markedly visible presence across the textile world. RSWM is engaged in manufacturing synthetic and blended spun yarns and fabrics. RSWM offers one of the broadest ranges of products in terms of fiber blends, counts and shades. The current yarn portfolio of the company can be classified into three main categories –
a) Grey Yarn b) Dyed Yarn, c) Mélange Yarn.
The company owns the Mayur brands under which it markets its blended suiting fabrics in the domestic market.
i
2
INTRODUCTION TO THE ORGANIZATION Mission:
“With unique insight into consumer behavior, we strive to offer the best. Following distinct business strategies, the company will continue its tradition of manufacturing the finest products.”
3
Vision:
“RSWM envisages itself as a trend setter of the textile industry. It is committed to introduce innovative products in the industry which will set new standards.”
Mr. L. N. Jhunjhunwala
Mr. Ravi
Mr. Shekhar Agarwal
Chairman - Emeritus
Jhunjhunwala
Vice Chairman & Managing
Chairman
Director
Mr. Riju Jhunjhunwala
Mr. J. C. Laddha
Mr. A.K. Churiwal
Joint Managing Director
Executive Director
Director
4
Mr. Kamal Gupta
Mr. R.P. Khaitan
Mr. D. N. Davar
Director
Director
Director
Mr. Sudip
Mr. S. K. Srivastava
Bhattacharyya
Nominee Director, LIC
Mr. Pradeep Dinodia
Nominee Director, Exim Bank
Director
5
INTRODUCTION TO LNJ GROUP LNJ Bhilwara group has emerged as one of India's leading corporate houses, in the last four decades. The pursuit of leadership began in 1961, a journey that was initiatedMr. byLAXMI
NIVAS JHUNJHUNWALA(LNJ), whose vision and values continue to drive the group even today. The LNJ Group is a multi - product conglomerate with a global - presence, and with business interests spanning a diverse range of industries... like Textiles, Power -Generation, Graphite- Electrodes, Sponge - Iron, Information- Technology and IT - Enabled services. The Group has successfully integrated its operations into today's Global - Economy, with export earnings compromising over 46% of total revenue with over 20,000 employees and 17 production units located strategically across the country. The LNJB Group's leadership in the textile industry is exemplified in the equity that its brands enjoy in the Indian market place.... like MAYUR Suiting, BSL Suiting, LA Italia Fashions and Buddy Davis Leisurewear. The LNJ Bhilwara Group, founded in 1961, has today grown into a strong global presence worth Rs. 2049 crores. The Group has been nurtured into a successful growth track by the able guidance of the Founder and Chairman - Emeritus, Mr. L. N. Jhunjhunwala. Currently, the LNJ Bhilwara Group stands as one of the largest firms onthe corporate horizon in India with over 20,000 employees and 17 production units positioned at strategic locations across the country. The Group's export earnings comprise of 46 % of the Group's turnover. The LNJ Bhilwara Group is a well – diversified conglomerate. It has been actively seeking growth and profitability by investing in a variety of systematically identifiedbusinesses making it a multi – product conglomerate with interests in a range of industries such as textiles, graphite electrodes, power generation, power engineering, consultancy services, steel and IT enabled services. 6
The pioneering textile division of the Group is not only a key player in the industry but also has many firsts to its credit. The textile division has the sole distinction ofproducing a unique fire retardant yarn called Trevira CS (now known as Len zing, Austria). It is also the sole licensee for the highly specialized yarn called Tencel. The Group has time and again been acknowledged for its world – class quality products in the domestic market such sa Mayur Suiting, BSL Suiting, La Italia Fashions and Geoffrey Hammond superfine suiting. At the same time, their services to several leading global brands for knitted garments have been recognized with the units garnering top export awards in different fields for several years in a row. The LNJ Bhilwara Group also has the largest integrated graphite electrodes manufacturing plant in South – east Asia with a reputed clientele comprising of major steel plants in the world. Graphite exports constitute 70 % of total sales volume. An evidence of their success can be seen in the fact that HEG, an integral part of the Group, is all set to undertake a Rs. 450 crores expansion plan to tap opportunities in the export market. The expansion of the Mandideep plant would double the capacity from 30,000 TPA to 60,000 TPA. Following the success of its earlier hydro – electric power project of 15 MW at Tawa Nagar (MP) in 1997, the Group has commissioned, India's first IPP Hydro –electric Malana Power Project of 86 MW in a record time of 30 months at Kullu (HP), in July, 2001 and is set to commence work on 200 MW Allain - Duhangan Hydro Electric Project at Manali (HP). Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS / ISO 9001 : 2000 certification for setting exemplary standards in quality.
Business Units of the GroupS
7
8
INTRODUCTION OF THE COMPANY
RSWM is a professionally managed, progressive and growth oriented company with business interests in Yarn, Fabrics, Garments and Denim. It is one of the largest producers and exporters of polyester viscose blended yarn in the country. The company operates around 3,60,000 spindles and produces 1,00,000 MT of yarn per year. RSWM possesses strengths and expertise to deliver India‟s largest quantities of grey, dyed
and mélange yarn, while specializing in technical fabric. It is equipped with in - house fabric weaving and processing facilities, with an installed capacity of 12 million meters per annum. Modern technologies and world - class skills have enabled the company to produce the finest quality adhering to stringent international norms. The company has state – of – the – art garment unit for global customers with a capacity to deliver 13,000 units daily. plan of Rs. RSWM‟s leadership is exemplified in the equity that it enjoys in Indian as
well as international market. RSWM has acquired 50 % equity stake in SISA S. A. Spain that will enhance its presence in higher value added international yarn market. An expansion 900 crores has been initiated by RSWM in order to expand its horizons. 9
The LNJ Bhilwara Group has its srcin in 1941 when the founder and Chairman Emeritus, Mr. L. N. Jhunjhunwala (LNJ) was hardly 13 years old. A company called
General Merchandise
Dealer Ltd.,
Calcutta
(West Bengal) was
incorporated by his uncle for importing cosmetics. After graduation from School in 1945, Mr. LNJ was persuaded to join the family business and take major responsibility in Indo Eastern Trading Company also set up by his uncle for export of jute goods. This venture was a great success and by 1950 - 51, it became one of the top 10 exporters of jute goods from India. At the age of 31 years, in 1959, Mr. LNJ was given the license to put up a medium sized textile mill at Bhilwara in Rajasthan at a cost of Rs. 6 million. This venture, Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the first textile mill of the LNJ Bhilwara Group in Rajasthan was a big success and continues to be the flagship company of the Group. In 1968 - 69, RSWM manufactured India‟s first polyester viscose (PV) blended yarn and this is where Mr. LNJ made his fortune. Having consolidated this business, the group started diversification. RSWM started with 12500 spindles and today working with 1,64,000 spindles due to its dedication and quality consciousness. It has the most modern spinning and weaving plants, considered as trendsetters and dominant in technology, quality and product - mix in the Indian Textile industry. The Spinning units are equipped with preparatory machines from Trutzschler, Rieter, Vouk, Crosrol and Lakshmi Machines. The post - spinning machines have been imported from Schlafhorst (Autoconers 238 & 338), two – for - one twister from Volkmann, Leewha and Murata. The group‟s philosophy is not to compromise on technology or raw material. Thus special fibres like flame retardant polyester from Hoechst (Germany), Tencel from Acordis (U.K.), Flax from Belgium and Silk from China are imported to spin world – class yarns. The units are also equipped with Fiber dyeing IITHP dyeing
10
technology from Dalal - Obermeir. Weaving Plants have Sulzer P7100 & P7200, projectile & rapiers, apart from air jet & Sulzer and Toyoda weaving machines. Its Denim and 46MW Captive Power Plants have commenced operation. As a significant milestone of its expansion plan, RSWM International B. V. Holland is incorporated as a 100 % subsidiary of the company. It has also announced the acquisition of Cheslind Textile Ltd., a Bengaluru based textile unit. In a culture, where the earth is referred to as Mother, caring for the environment is ingrained. In caring for the earth we are committed to leaving our children and the generations to come a clean, green earth. A promise that we live by and live up to in everything we do. At every step in the manufacturing process, we employ eco -friendly processes not just to abide by laws but also to sustain and take forward the 'green' traditions that form a rich part of our heritage. Effluent treatment is carried out using the latest state – of – the art technology. All the water used in fabric dyeing and finishing is recycled for use in the process - house and in horticulture. We are continuously greening all our plants, residential and other facilities, planting thousands of saplings every year. Environmental care is executed with an eye for detail. The Banswara unit has over 42,000 square metres of greens, with over 50,000 plants having been planted on the campus and an exquisite 11 – acre orchard surrounding an artificial lake. The Banswara unit was accorded the best plantation award in Rajasthan.
Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the leading Company of the LNJ Bhilwara Group, is principally engaged in the manufacture of synthetic, blended, mélange and
specialty
yarns
and
fabric.
RSWM is a premier company of the Group, with a turnover of Rs.1173.82 crore in 2010 - 2011. RSWM is exporting a complete range of yarn and fabric to over 70 countries worldwide, giving RSWM a markedly visible presence across the textile world. The manufacturing capacity of the Company is upwards of Yarn per annum from its five units - Gulabpura, Banswara, Mandpam, Rishabhdev and Ringas located in Rajasthan. 11
RSWM also manufactures of fabric per annum at its Mordi (Banswara) unit. All the plants are equipped with state – of – the – art machines and Captive Power Generation facilities. RSWM is the first composite textile mill in India to be accorded the ISO Certification. The Company also enjoys a prestigious „Three Star Export House‟ status and, over the years, has received several Export Awards from SRTEPC. The company‟s leadership in the textile industry is exemplified in the equity that its
brand enjoys in the Indian market - place – “Mayur Suitings”
RSWM is in the process of modernization drive and increase of spindles of its all the manufacturing units. RSWM will soon introduce ready - to - wear Apparels. To enhance its operating capacity, RSWM has acquired Jaipur Polyspin Ltd. for manufacturing of Synthetic Blended Yarn.
12
COMPANY PROFILE NATIONWIDE NETWORK
RSWM Ltd Gulabpura
Banswara
Synthetic, Regenerated Cellulosic, Blended, Dyed Yarn & Fabric Synthetic, Regenerated Cellulosic & Cotton-Blended Grey Yarn
13
Mandpam
Cotton Mélange Yarn, Cotton-Blended Mélange & Dyed Yarn
Rishabhdev
Synthetic, Blended & Grey Yarn
Ringas
Synthetic & Blended Dyed Yarn
Bangalore
Apparels
Mordi (Banswara)
Process House
HEG Ltd. Mandideep
Graphite Electrodes
Durg
Steel
Durg
Waste Heat Recovery Power
Tawa
Hydro Electric Power
Maral Overseas Ltd. Cotton Yarn, Cotton-Knitted (100% EOU) Fabric & Cotton Knitwear Maral Sarovar Jammu
Cotton-Knitted Fabric, Cotton Knitwear & Sweaters
Noida
Knit wears
BSL Ltd. Mandpam:
Yarn, Worsted & Synthetic Fabric, Readymade Garments & Accessories
Bhilwara Spinners Ltd. Bhilwara
Synthetic, Blended Grey & Dyed yarn
Bhilwara Melba De Witte Pvt. Ltd. 14
Mordi (Banswara)
Specialized Automotive Fabric, Furnishing Fabric
Bhilwara Processors Ltd. Mandpam
Processing of Synthetic & Worsted Fabric, Tops Fiber Dyeing
Malana Power Company Ltd. Malana
Hydro Electric Power (Kullu)
AD Hydro Power Ltd. Manali
Allian-Duhangan Hydro Electric Power
Indo-Canadian Consultancy Services Ltd. Noida
Power Engineering Services
Bhilwara Scribe Pvt. Ltd. Bhopal
IT-Enabled Services
Corporate Office Noida
National Capital Region and Delhi
Regional / Marketing Offices 15
Mumbai Kolkata Bangalore Delhi Ludhiana
AWARDS The LNJ Bhilwara Group not only has several firsts to its credit but also recognition for its commitment to quality and excellence with several national awards and certifications. GRAPHITE ELECTRODE
HEG is the winner of CAPEXIL Highest Export Award for Graphite Electrodes for the last 18 consecutive years.
HEG bagged "Rajiv Gandhi National Quality Commendation" and „National Export‟
Awards.
HEG- Graphite Division bagged National Export Award.
HEG bagged 3 National Awards for Quality Circles.
TEXTILES
RSWM is the winner of SRTEPC Highest Export Award for polyester/viscose yarn exports for the last several consecutive years, which includes two gold and one bronze in March 2005.
Maral is India‟s fully integrated 100% EOU cotton knitwear unit and winner of
TEXPROCIL Silver trophy in 100% EOU / EPZ category. Maral has also been awarded Silver Trophy by AEPC.
Maral is the recipient of Rajiv Gandhi National Quality Award. 16
Maral bagged "Greentech Safety Award".
RSWM, Rishabhdev unit bagged National Export Award. Rishabhdev unit also bagged SRTEPC Excellence award for highest production in export of 100% Polyester spun yarn.
BSL received the "National Certificate of Merit" for outstanding export performance.
Bhilwara Spinners has been accorded the prestigious “Niryat Shree” -Certificate
of
Excellence for Outstanding export performance.
Power Malana Power bagged “ Greentech Environment Excellence‟ Award.
INTERNATIONAL PARTNERS & ASSOCIATES The LNJ Bhilawara Group, in its quest for excellence and growth has partnered with the following international companies:
Stat Kraft Norfund Invest Ltd., Norway -Setting up a 192 MW Hydroelectric Project at Manali.
RSW International, Canada -Power Consultancy Services.
International Finance Corporation, Washington -Equity holders in AD Hydro Power Project
De Witte Lietaer, Belgium -Specialized Automotive Furnishing Fabrics
Tencel, UK (now Lenzing, Austria)-Tencel Yarn Spinning
Hoechst‟ (now Trevira CS), Germany-Flame
Retardant Yarns & Fabrics
eScribe Inc., USA -IT Enabled Services
Enercon (India) a subsidiary of Enercon (Germany)- Setting up Wind Energy Project
17
18
BUSINESSES OF RSWM LTD: RSWM is a leading manufacturer of synthetic and blended spun yarn and fabric. It is one of the largest exporters of synthetic yarn from India and has a commanding position in the domestic market. The company also has a presence in the cotton yarn. Spinning, fabric, processing and garments manufacturing segments, Last year was went to start production in its denim manufacturing plant in Mordi (in the district of Banswara in Rajasthan), the Company is now present across all segments in the textiles value chain. During the year under review, the gross turnover of the Company increased by 10.25% to Rs. 1064.69 Crore in 2006 – 2007, from Rs. 1173.83 crore in 2007 - 2008. This performance was led by strong performances in both domestic and export markets. RSWM exports its yarn and fabric to over 70 countries in Europe, North, and South America, the Middle east, Africa, South - east Asia and Australia. Chart (Under) shows the performance of the Company in its key markets. Exports of the Company grew by 10.11 % to Rs. 532.58 corer in 2006-07 from Rs. 586.44 corer in 2007 - 08, while domestic sales grew by 10.39 % during the year. (2010 -11 Domestic Sales - 532.10, 201112 Domestic Sale - 587.39) As a result, the share of export has increased and now accounts for over 50% of RSWM‟s revenues the – art process house at Mordi, Banswara and Rajasthan.
19
Chart-a- Revenues in key markets (Rs. In corers) Domestic Sales
Sales
590 580 570 560 550 Sales
540 530 520 510 500 2006-07
2007-08
Exports in Key Markets Sales
590 580 570 560 550 Sales
540 530 520 510 500 2006-07
2007-08
20
21
YARN BUSINESS RSWM offers one of the broadest ranges of products in terms of fiber blends, counts and shades. Fiber processed by the Company includes polyester, viscose, acrylic, cotton, wool, rayon, silk, polyamide, and linen. In addition, the Company produces a range of specialty products made out of both unorthodox fiber, e. g. Soya protein and bamboo, and branded fiber such as tencel and lycra. Many of these yarns have functional qualities flame resistant, anti-bacterial, anti-static, odour preventive and UV protective. These are niche products and the Company expects their market size to increase in the future. Yarn markets situation improved in 2007 - 08 compared to the 2006 - 07 and RSWM was able to benefit from additional capacities, which became available during this period, especially in grey yarn and Denim. On the cost side, due to global hike in the prices of oil, furnace oil prices are a big cause of worry for the industry. RSWM was able to increase its production of yarn, thanks to the completion of its modernization and expansion plan that started in 2004 - 05. Yarn sales grew by 6.44% to Rs. 229.07 crore in 2011 - 12 from Rs. 215.21 crore in 2010 - 11. The current portfolio of RSWM can be categorized into three main categories – Gray Yarn, Dyed Yarn and Mélange Yarn. 22
GREY YARN
Grey yarn is produced using blends of different synthetic fiber such as polyester and viscose, blends of synthetic and natural fiber and pure cotton at the Banswara and Rishabhdev plants. Although grey yarn constitutes a relatively lower value - added segment,
vis-à - vis dyed and mélange, it is by far the largest in terms of volume and is
crucial to the product portfolio offered to customers. During 2007 - 08, RSWM Ltd. added 24000 spindles of polyester cotton blended yarn at its Kharigram unit. Manufacturing of 100% viscose yarn at the Rishabhdev plant and open end rotors at the Banswara unit purchased levels 2006 - 07, also achieved full production levels during the previous year. During the previous to previous year, the Company had diversified into manufacturing 100% cotton yarn. In 2007 - 08, spindles under 100% cotton yarn increased marginally to 44,000, taking the total capacity of Gray yarn to 1,64,000 spindles. Apart from the increase in production due to addition capacity developed during the year, there
were
considerable
increases
in
operating
efficiencies,
as
a
result
of
the
modernization of existing plant and machinery.
DYED YARN Dyed yarn is produced at the Company's Gulabpura and Ringas plants. These are relatively higher value added products and made according to customer specifications of blend, counts and shades. With the amalgamation of Jaipur Polyspin Limited (the Ringas plant), RSWM has a capacity of around 92,000 spindles for Dyed Synthetic yarn. During the year, the thrust of the business was on developing new products with better margins for a diverse set of the end - use segment which included knitting, Furnishings, home textiles
23
and carpets. Such sales represented approximately 6 % of the total sales of dyed yarn, and are expected to grow in the future.
MÉLANGE YARN Mélange yarn is a premium product made from cotton and its blends and is used in manufacture of knitwear and hosiery. During the year, the Company had increased its capacity of Dyed Mélange yarn, following which it has become one of the largest manufacturers of mélange yarn in the country with 30,000 spindles. While this segment is still quantitatively very small compared to the grey and dyed yarn business of the Company, it commands the highest value added in RSWM's overall yarn portfolio. During the year, Mélange yarn sales increased by 12.03%.
MARAL OVERSEAS LIMITED (MOL) Maral Overseas Ltd., a part of the LNJ Bhilwara Group, a conglomerate with a global presence. Maral is the country‟s largest „Vertically Integrated‟ knitwear company lo cated in
the
heart
of
India‟s
cotton producing
region
near
Indore,
Madhya Pradesh.
Its other units are located in Jammu and Noida (NCR - Delhi). Maral is India‟s first 100% Export – Oriented – Unit to get the prestigious ISO certification. Maral has been accorded a „Trading House‟ status, and is an internationally preferred manufacturer and
supplier of Cotton Yarn, Knitted Fabrics, Knitwear and Sweaters. Maral has been accredited by Marks & Spencer.
BHILWARA MELBA DE WITTE PVT. LTD. Bhilwara Melba De Witte Pvt. Ltd. (BMD) was established in 1998. It is a joint venture of LNJ Bhilwara Group and De Witte Liter, a part of Gamma Holding of Belgium, to manufacture high performance specialized furnishing fabrics. 24
BMD has its manufacturing plant at Banswara in Rajasthan. It has fully integrated state – of – the – art facility for automotive textiles, which is equipped with Air – texturing, yarn dyeing, warping, weaving, warp & circular knitting, processing and lamination.
BSL LIMITED (BSL): BSL Ltd. Established in 1971 at Bhilwara, Rajasthan. Today, BSL has emerged as a strong global player producing over 12 million meters of fabric every year. BSL is equipped with state – of – the - art technology. Right from raw material sourcing to product finishing, meticulous attention is paid to detail at every stage of production. The emphasis is to achieve shorter lead times and greater efficiency by following integrated yarn preparation, spinning, weaving and finishing processes.
BHILWARA SPINNERS LTD. Bhilwara Spinners Ltd. (Bhilspin), established in 1980, manufacturers Synthetic Blended Grey and Dyed yarns at its manufacturing Unit at Bhilwara in Rajasthan. Today, the company has 30,000 spindles to manufacture 12,000 MT per annum. Bhilspin has been accorded “Export House" status and conferred "Niryat Shree” for its export performance. Bhilspin also enjoys IS / ISO 9001 : 2000 certification.
FABRIC AND GARMENTS BUSINESS The company manufacturing a range of blended suiting fabrics and has a significant presence in the domestic market with its Mayur brand. Apart from
25
this, the segment includes a new garments unit in Bangalore and a fabric processing plant in Mordi Banswara (Rajasthan).
FABRIC RSWM believe that there is a huge potential for this business in the new market scenario and has plant to strategically move to the higher value added products in Fabric. The company expects significant gains from this move and has plans to further ramp - up the fabric manufacturing capacity. To give a quantum boost to these initiatives, RSWM signed up with Salman Khan, one of the most popular actor in the bollywood, as the brand ambassador for its Mayur range of Suitings and shirting.
GARMENTS During the year, the company scaled ups the commercial production in its new garments facility in Bangalore. The business has a strong order book position and the company expects a healthy pay back from the Garment business in the future.
DENIM During
the
previous
year,
RSWM
had
decided
to
enter
in
the
Denim
Fabric
manufacturing business, in line with its strategy to move to higher value added segments for wider based growth in the future. With in the category, your company plans to focus on producing high - end specialty Denim fabric, which has better realization and demand in international market. The state – of – the art denim manufacturing facility, will come up at its existing ovation in Mordi, and have a capacity of 27 million meters per annum.
THERMAL POWER
26
RSWM”s manufacturing process relies on furnace oil based power Plans for their energy
requirements. High crude oil prices during the Last fees years have had an adverse impact on the profitability of our Operation. Last year, company decided adverse impact in thermal power plants to rope in this ever – increasing cost of power. The 46 MW plant is being located in Banswara, Rajasthan. The plant will provide captive power to its existing operations in Banswara, Bhilwara, Rishabdev, Kharigram, Ringas, Mordi and also the proposed Denim projected in Mordi. The existing furnace oil – based power plants will be kept as stand – by - facilities.
HEG LTD. HEG Ltd., a premier company of the LNJ Bhilwara Group, is India’s leading Graphite Electrodes manufacturer and an established global player in the sector. It is the single largest integrated Graphite Electrodes manufacturing facility in South Asia South East Asia and the Middle East. HEG is also the only one of its kind in the region to process the sophisticated UHP (Ultra High Power) Electrodes with technology from SERS – a subsidiary of Pechinery, France.
SOCIAL INITIATIVES Over the last 47 years, RSWM has taken a number of initiatives in education, healthcare and community development. The company has established and Promoted a number of school and training centers, including facilities for the Physically disadvantage near its manufacturing plants. It also runs “MAYUR HELPLINE” a 24 hour free ambulance
service for trauma victims. The company stated an initiative to create awareness in nearby village about the Activities of the company and providing employment to local people. In Kharigram, a blood donation camp was organized; where 77 units of blood were Donated by employees of unit.
27
28
INTRODUCTION TO THE INDIAN TEXTILE WORLD The textile industry occupies a unique position in the Indian economy as it contributes significantly to the industrial production, employment generation and foreign exchange earnings. The Indian textile industry is extremely complex and varied with hand - spun and hand woven sector at one of the spectrum and the capital – intensive sophisticated mill sector at the other, with the decentralized power loom and knitting sectors coming in between. This industry uses natural fibers - cotton, jute, silk and wool, as well as synthetic / man – made fibers - polyester, viscose, nylon, acrylic and their multiple blends.
The complex and varied structure of the industry coupled with its close linkage with our ancient culture and tradition provides it with the unique capacity to produce, with the help of latest technological inputs and designs capability, a wide variety of products suitable to the varying consumer tastes and preferences, both within the country and overseas. The textile industry has shown remarkable resilience and grown considerably in terms of installed spindle age, yarn production and output of fabrics and garments. It is the only industry, which is self – reliant and complete in value chain i. e . from raw material to the highest value added products - garments / made - ups. Therefore the growth and development of this industry has a significant bearing on the overall development of the Indian economy. Year 2005 (An opportunity knocking at our Door) "Garment Export a rocket propellant for employment generation." The scope of improvement that can be made on the employment front with in a very short span of time with minimum investment, only if the Government of India places it as per priority industry like some of our neighboring countries have. Thus Garment Manufacturing and Export industry that is the real engine
29
of growth for the whole textiles sector in India. With substantial and development of this sector, there is much scope for the growth of Indian textiles for exports. With promise of greater globalization and liberalization, Indian textile industry seems to be looking ahead with both challenges and innovations, to have close look at how the major structural changes in world economy will affect the prospects of Indian textiles Industry. In light of this, a review of Indian textile scenario in particular and the world situation in general will help all sectors of Indian Textile industry to re - organize themselves to face new challenges both known and unknown that may come in future. Thus we find many scopes in the development of Indian Textile Industry.
30
INDIAN TEXTILES INDUSTRY Textiles account for 14 percent of India‟s industrial production and around 50 per cent of its export earnings. From growing its own raw material (cotton, jute, silk and wool) to providing value
added products to consumers (fabrics and garments), the textile industry
covers a wide range of economic activities, including employment generation in both organized and unorganized sectors. Indian fabric is in demand with its ethnic, earthly colored many textures.
This
conveys
that
it
holds
potential
if
one
is
ready
to
innovate.
The textile industry is the largest industry in terms of employment economy, expected „to generate 12 million new jobs by 2012 . It generates massive potential for employment in the
sectors from agricultural to Industrial. Employment opportunities are created when cotton is cultivated. It does not need any exclusive Government support even at present to go further. Only thing needed is to give some directions to organize people to get enough share of the profit to spearhead development.
SEGMENTS Textile industry is constituted of the following segments • Readymade Garments • Cotton Textiles including Handlooms (Mill made / Power loom/ Handloom) • Man-made Textiles • Silk Textiles • Woolens Textiles • Handicrafts including Carpets • Coir 31
• Jute
Manmade fibers account for around 40 per cent share in a cotton dominates
textile industry. India accounts for 15% of world‟s total cotton crop
Indian
production and records
largest producer of silk.
It is the second largest employer after the agriculture sector in both rural And urban
areas. India has a large pool of skilled low-cost textile workers, experienced in technology skills. •
Almost all sectors of the textile industry have shown significant achievements. The sector
has shown a 3.66 per cent CAGR over the last five years. •
India‟s cotton textile industry has a high export potential. Cost competitiveness is driving
the penetration of Indian basic yarns and grey fabrics in international commodity markets. Small and flexible batches of apparels can be manufactured in India and can provide a larger variety of casual wears and leisure garments at significantly lower costs. •
Besides natural fibers such as cotton, jute and silk, synthetic raw material products such
as polyester staple fiber, polyester filament yarn, acrylic fiber and viscose fiber are produced in India.
CURRENT SCENARIO Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The name of these countries with their background can give thousands of insights to a thinking mind. The slant cut that will be producing a readymade garment will sell at a price of 600 Indian rupees, making the value addition to be profitable by 300 %.become competitive; on closer look however, it sounds an opportunity because better material Currently, because of the lifting up of the import restrictions of the multi-fiber arrangement (MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the market haswill be possible with the traditional inputs so far available with the Indian market.
32
At present, the textile industry is undergoing a substantial re-orientation towards other then clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers. The application that comes under technical textiles are filtration, bed sheets and abrasive materials, healthcare upholstery and furniture, blood-absorbing materials and thermal protection, adhesive tape, seatbelts, and other specialized application and products.
STRENGTHS
India enjoys benefit of having plentiful resources of raw materials. It is one of the largest producers of cotton yarn around the globe, and also there are good resources of fibers like polyester, silk, viscose etc.
There is wide range of cotton fiber available, and has a rapidly developing synthetic fiber industry.
India has great competitiveness in spinning sector and has presence in almost all processes of the value chain.
Availability of highly trained manpower in both, management and technical. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.
The installed capacity of spindles in India contributes for 24% share of the world, and it is one of the biggest exporters of yarns in the global market. Having modern functions and favorable fiscal policies, it accounts about yarn.
33
25% of the world trade in cotton
The apparel industry is largest foreign exchange earning sector, contributing 12% of the country's total exports.
The garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or
export markets.
WEAKNESS MASSIVE-FRAGMENTATION: A major loophole in Indian textile industry is its huge fragmentation in industry structure, which is led by small-scale companies. Despite the government policies, which made this deformation, have been gradually removed now, but their impact will be seen for some time more. Since most of the companies are small in size, the examples of industry leadership are very few, which can be inspirational model for the rest of the industry.
POLITICAL AND GOVERNMENT DIVERSITY: The reservation of production for very small companies that was imposed with an intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. However, most of the sectors now have been de-reserved, and major entrepreneurs and corporate are putting-in huge amount of money in establishing big facilities or in expansion of their existing plants. Secondly, the foreign investment was kept out of textile and apparel production. Now, the Government has gradually eliminated these restrictions, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textile products; it can certainly provide a base for textiles and apparel companies.
34
Despite some motivating step taken by the government, other problems still sustains like various taxes and excise imbalances due to diversification into 35 states and Union Territories. However, an outline of VAT is being implemented in place of all other tax diversification, which will clear these imbalances once it is imposed fully.
LABOR LAWS: In India, labor laws are still found to be relatively unfavorable to the trades, with companies having not more than ideal model to follow a 'hire and fire' policy. Even the companies have often broken their business down into small units to avoid any trouble created by labor unionization. In past few years, there has been movement gradually towards reforming labor laws, and it is anticipated that this movement will uphold the environment more favorable.
DISTANT GEOGRAPHIC LOCATION: There are some high-level disadvantages for India due to its geographic location. For the foreign companies, it has a global logistics disadvantage due the shipping cost is higher and also takes much more time comparing to some other manufacturing countries like Mexico, Turkey, China etc. The inbound freight traffic has been also low, which affects cost of shipping – though, movements of containers are not at reasonable costs.
LACK OF TRADE MEMBERSHIPS: India is serious lacking in trade pact memberships, which leads to restricted access to the other major markets. This issue made others to impose quota and duty, which put scissors on the sourcing quantities from India.
OPPORTUNITIES Complete elimination of the quota restrictions under the Multi Fiber Agreement (MFA) by 2005 will provide an expanded opportunity alongside enhanced competition for the Indian textile units, as more markets would be open for access.
35
The government encourages the establishment of 100 per cent export oriented spinning units. According to the 2000-01 Exim policy, all capital goods in the textile sector have been covered by Export Promotion Capital Goods scheme, which attracts 5 per cent customs duty without any countervailing duty.
POLICY INITIATIVES The government adopted the National Textile policy in 2000 to harness opportunities for increasing India‟s share in global trade. The policy aims to increase the value of textile and
apparel exports from the current US$ 10 billion to US$ 50 billion by 2010. It also aims to increase cotton productivity by at least 50 per cent and upgrade its quality to international standards.
The government will encourage the establishment of world-class integrated textile complexes and processing units. A scheme for setting up integrated apparel parks has been initiated. This will enable the ready-made garment industry to set up modern units with excellent infrastructure. Rapid implementation of the Textile Up gradation Fund Scheme aimed at providing an impetus to the modernization of textile and jute industries is a priority with the government. A provision of US$ 41 million in 2001-02 and an incentive for modernization is offered by enhancing the depreciation rate of machinery installed under the scheme to 50 per cent per annum.
36
DEPARTMENTS PRODUCTION DEPARTMENT SPINNING There are three sections in spinning unit mainly preparatory section, Spinning section & post spinning section. The main function of this section is proper mixing of polyester & wool en raw material, which comes in pressed bales & manufact uring of yarn 65% relative humidity, is required in this section. This truly international blended yarn is the result of the world's premium technologies, Radio frequency dryers, which are ultimate in advancement of drying dyed polyester & woolen tops & gri lling & combining machines from NSC, France internationally renowned for the mixing of polyester woolen blends contributing to the yarn's technologies suprema
cy are BSL ring frame machines and electronically monitored
T.F.O. Auto corners The Zinsser ring spinner 421 combines solid & reliable engineering with top-level efficiency, reliability & sturdiness using automation & high teach components of the future.
WEAVING This section is divided into 4 subsections i.e. preparatory, loom, checking & mending .The main function of this section is manufacturing of fabric from yarn 74% relative humidity is maintained in this section. In this section the richest quality polyester & viscose go into the fashioni ng this dream blend of suiting & BSL sulzerruti shuttle less-projectile looms weave an extremely advanced & precision controlled fabric. The fabric is credited with optimum finish.
PROCESSING There are two sub sections dying & finishing. It is designed to quickly & evenly impart the desired degree of finish & to accurate consistently repeat this under the production conditions. Finishi ng is undertaken with sharing equipment and finally rotary press ensures all the work, that every inch of the fabric is uniformly accepted worldwi de.
37
Supervisor, machines & papers press give the fabric a qualitative finishing edge. The processing technology is employed to create these fabrics in truly world -class fashion.
IT DEPARTMENT RSWM leverages information technology (IT) tools extensively in its operations to achieve creator productivity & efficiency. The company has integrated IT in its core functioning from purchase of raw material to sale of final product. The company deployed a specialized ERP (enterprise resource planning) solution for textile companies, which is fully functional across all its
existing manufacturing location.
This solution enables the company to get real time information on customer orders, raw material purchase, and material handling stores & inventory situation, production, standard costing, invoicing & sales. Apart from this core system, the company also uses specialized modules for functional areas of finance
& human resources.
At first when RSWM realized the need, such type of computer arrangements through which they can transfer or collect the data or information conveniently & online with the help of computer setup among there unit.
RAW MATERIAL DEPARTMENT Raw material department deals with the raw material requirement by different units. According to the final yarn required every unit calculate their raw material need & give this to raw material department. Then they will decide how much material should order for the month on the basis of analysis that how much material is present in godown& how much is in transit. These requirements are than sent to Mumbai office where all the units of RSWM send their respective requirements & than their purchase is done on group basis in lump some amount in order to get raw 38
material at economic rate. The minimum level that is maintained in godown is 25%.Various types of raw material used our here are as follows:
Viscos
Polyester
Cotton
Acrylic
Silk
Nylon.
Mainly the raw materials come from following place: Rajasthan, Gujarat, M.P. and Maharashtra. In unit 6, 7, 8 there is a production of 100% fiber either cotton or polyester.
39
PERSONAL DEPARTMENT RECRUITMENT:Recruitment of suitable person for specific post and his proper placement plays a very important role for smooth running of the industry. The sources of candidates for filling of vacancies are: 1. Through district employment exchange. 2. Through advertisement in the Newspaper. 3. Through putting up a notice of vacancy on the notice board. In our case as we are not recruiting any experienced workmen other than Maintenance & Engineering Department. Therefore, we have to depend only on District Employment Exchange and through personal contact and propaganda through old labours, masters and trainers only.
SELECTION:Candidates called for interview are required to clear the different criteria fixed for the selection of candidates. They will have to submit the required documents which are essential for the selection of the candidates.
Main function of personal department is to selection of
workers according to their norms & rules. There are some norms for selection of 1. He must be educated of 12
th
the workers.
standard.
2. His age between 18 to 25 year. 3. His minimum height minimum5.2 4. His weight is minimum 48kg. 5. Finger - & Eye are also tested before selection of workers. 6. Blood group, two photo & reference are essenti al. 7. Some s ilent nor ms of the indus tries. They also select non-experience workers for their long life work. They select 60% outsiders & 40% local people for their work.
40
RSWM provide a better environment & also provide so many facilities to their workers. They provide mess facilities, bus facilities, and rest room; provide dress, dispensary & so many more facilities are provided to the worker by RSWM.
PLACEMENT:The workmen are then divided in two batches as per the re
quirement of the land
as per the knowledge and physique of the workmen. Within total 52 days all workmen are being trained in different department s and after t aking their technical test the successful persons are then given to their respective department and considered as half workm en or LCT.
DETAILS OF WAGES/STIPEND PAID TO A
NEW WORKMEN
1.
1-40
: Rs.73/-
P.D.
2.
41-100
: Rs.83/-
P.D.
3.
101-145
: Rs.96/-
P D.
4.
146-270
: Rs.106/-
P.D.
5.
Up to 271
: Rs.190/-
P.D.
OTHER FACILITY:1. C.L. – THEY GET ONE C.L. ON 32 ATTENDENCE 2. P.L. - THEY G ET ONE P.L. ON 20 ATTEND ENCE 3. P.F. -
12% OF EMPLOYEE & 12% OF EMPLOYER
4. GRAT UITY- 5% 5. BONUS- 20% 6. PAY HOLIDAY7. INSURANCE8. DISPANCERY9. CYCLE STAND10. HOSTEL11. SPORTS WEEK41
12. PRIZE SCHEME13. PROMOTION14. DRESS, SHOES, &SOCKS-
42
MAINTENANCE OF PERSONAL RECORDS Once a workmen /Staff is recruited, it becomes very essential to keep all his personal records in pro per file. The Personal rec ords give us the details of his job pro file,
e.g. details of his permanent and present address, department, code No., Blood Group, his reference, Mill No. Permanent shift allotted to the 'workmen, his education details, experience details, wages and increment details. The personal; record also contains details of warning/charge sheets and suspension the individual workmen from time to time, prom ot i on detai ls et c.
TIME OFFICE DEPARTMENT Another important function of the P & A department is keeping proper record of attendance of staff/workers and also to provide the required number of labors in each shift for smooth running of the plant. Presently we have a system of signing in the register for staff members and time punching system for workers.
Workers are dividing into four Shifts. Shifts
Timing
Lunch break
General
8.00 A.M. To 5.00 P.M.
1.00 pm 2.00 P.M
X–A
7.00 A.M. To 3.00 P. M.
Half an hour during the shift
Y- B
3.00 P.M. To 11.00 P. M.
__””__
Z-C
11.00 P.M. To 7.00 A.M.
__””__
Duty hours for staff other than shift is:
Lunch break
9.00 A.M. To 1.00 P.M.
1.00 P.M. To 2.00 P.M.
2.00 P M. To 6.00 P.M. Time keepers verify the engagement of every labour by going to the dept. after beginning of the shift. At the end of the month total present days are calculated and salary/wages are prepared. Salary to staff is paid through SBBJ Bank on 1st day of every month. The salary details arc sent to Bank and salary slips are given to the individual staff member. Wages are paid to all workmen in cash oil 10th day of every month Wages issued to all workmen on 7th of every month.
43
Unpaid wages are paid to workmen on every 21st day of the month Important fu nction of tim e office. 1.
Record of old & new worker.
2.
Personal detail of worker
3.
Payment of worker
4.
Bonus working days PL & leave are recorded.
5.
Attendance
record.
P.F.12% of salaries
LEGAL DEPARTMENT All the cases pertaining to personal department and the negotiable instrument are dealt with by legal I/C. All cases relevant to any court Cases of personnel department are dealt in
Court of Asst. labour commissioner
Labor tribunal
High Court
fall under his jurisdiction.
the following:
Pertaining to dismissal and compensation, the company has no retainer as on date. He issues his notice, prepares plaintiff document and
engage advocates for filling the
cases
is various courts. This is all about the legal I/C. A part from his, another department i.e. Public Relations is also dealt by manager Legal.
SAFETY COMMITTEE The main aim of safety department if to secure of whole the workers from the uncertainty & risk because in the mill so many workers are work on machinery & on electronic tools and the safety of those worker is most important for the organization. For the security of the workers they have some rules within the organization & also have so many security guards, which are care of all the employees in every department & also on main gate of the mill. Management has provided the helmet for the security of the workers. When any worker is come into the mill then the guard has right to check there helmet, & within the mill the maximum speed of the vehicles is 20km/ph. 44
They have a dispensary within the organization for the workers because when they injured then they get fast treatment and three compounder are appointed in three different shifts so the workers get the benefit in night
also.
HRD DEPARTMENT The management of human resources has very significant area to define human values, physical social activities and for saving this peculiarities. Every company makes criteria, which consist of human principles so this company has also separate department for human resources. The main work of HRD department is manpower planning. The whole process of the worker after selection is done in the HRD department. Where the man‟s are needed & what
person do what work & in what time is all planning is done in HRD department.
HRD Activities of Workers –
(a)
New workers
Old workers
HRD activitie s for new workers-
Following works is carried out by HRD for new workers:i. General process orientation. ii. Fiber → marketing, brief knowledge / overview Safety iii. Fire fighting etc. These above activities are carried out for the first 40 days, during these days the practical training carried out on the show floor. After 40 days of training, the new workers are sent to respective dept. as half skilled workers. So after all this i.e. 104 days their skill test is taken &if they pass, then they will be regarded as skilled workers.
(b)
Activities for old workers:Training is given to them from time to time to upgrade their skills, HRD organize
refresher courses that are need based whenever they get the requirement from the respective dept. in the organization and identification of the need is done by the respective dept. in 45
consultancy with the HRD dept. HRD has also got the responsibility to schedule the training schedule.
Milestones
RSWM has initiated a Rs. 900crore expansion plan. Its Denim & 46 MW Captive Thermal Power Plants have commenced operation.
RSWM was recently felicitated with Rajiv Gandhi National Quality Award.
RSWM expands their spindle capacities at all the plants.
Ounced the acquisition of Cheslind textiles Ltd., a Bangalore based textile unit.
RSWM International B.V., Holland, Incorporated, a 100% subsidiary of RSWM, executes a 50:50 JV with SISA S.A., Spain. The New JV entity is known as RSWM SISA.
RSWM ropes in Salman Khan as brand ambassador for Mayur Suiting.
46
47
