A

SUMMER TRAINING PROJECT

ON
“TO STUDY OF CURRENT MARKET
SCENARIO AND EFFECT OF INCREASE IN PRICES OF
HAND KNITTING YARN”

UNDER TAKEN AT
VARDHMAN TEXTILES LIMITED

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mr. LALIT MAHAJAN RAHUL SINGH

STUDENT OF:
RIMT(REGIONAL) COLLEGE OF MANAGEMENT,MANDI GOBINGARH
 CERTIFICATE

This is to certify that, RAHUL SINGH an MBA student from RIMT(REGIONAL) COLLEGE
OF MANAGEMENT was placed in this organization in the Sales Office of Vardhman
Textiles Limited for summer training for a period of eight weeks form 7st June to 20th July, 2010,
in partial fulfillment of the requirement for two year (MBA) degree.
The project entitled, “To Study of current market scenario and effect of increase the price of
Hand Knitting Yarn ” submitted is a bonafide research work carried out under my supervision
and that no part of this research project has been submitted for any other degree. The assistance
and help received during the course of this investigation has been fully acknowledged.

In my opinion, his work has been satisfactory

Signature
Mr. Lalit Mahajan
 ACKNOWLEDGEMENT

Any person can never do work of this nature alone. This formal piece of acknowledgement may
not be sufficient to express the feeling of gratitude and affection for those who were associated
with the project and without whose co-operation and guidance this project could not have been
conducted properly.
It is a matter of great pleasure for me in submitting the project report on “To Study of current
market scenario and effect of increase the price of Hand Knitting Yarn ” in the partial
fulfillment of the requirement of my course from “RIMT(REGIONAL) COLLEGE OF
MANAGEMENT,MANDI GOBINDGARH . It is my profound privilege to thankfully
acknowledge the inspiring co-operation extended to me by all the staff members for the
successful completion of my project.
My first word of thanks goes to Mr. V.K Goyal, CEO, Vardhman Textiles Limited, Ludhiana
for giving me an excellent chance to undergo training in a reputed and prestigious textile
company of India.
It is my profound privilege to express my thanks and gratitude to Mr. Lalit Mahajan, Mr.
Maninder Sharma, Mr. Pawan Sharma, Mr. Mukti Ranjan and Mr. Ankush Khanna for
their kind support and guidance in marshalling my knowledge.
I have, perhaps carved the niche with co-operation of all in whose contact I happen to come
during the entire time-frame of my project.

RAHUL SINGH
 PREFACE
When everybody is providing what is expected from him/her, the person delivering the
unexpected to its customers succeeds in the long run. In today’s marketplace, it is no longer
enough to satisfy the customers, the manufacturer needs to delight them as well. To conquer the
modern business world one needs to be one-step ahead of its competitors.
MBA is combination of both theoretical as well as practical aspects of business and summer
training gives a good opportunity to work in a real work environment. The concept of summer
training, which is there in the curriculum of business management schools, serves three
important purposes:-
Firstly: It gives the student a fair amount of insight of problems faced by them.
Secondly: The summer training project helps business management students to get a first hand
experience of actual working condition, which otherwise is possible only when a student enters a
job.
Thirdly: Summer Training is a learning ground, which helps us to relate the workings of the
corporate world with the class room teaching.
Summer Training helps the students to view the real Business World closely, which in turn
widely influences their conceptions and perceptions. I was fortunate to pursue my training in a
reputed, well established, fast growing and a professionally managed organization.
This project report is the result of eight weeks training at Vardhman Textiles Limited, Ludhiana.
It has given me a great deal of exposure and I have found practical work very different from
theoretical one.
 TABLE OF CONTENTS

1. INTRODUCTION TO INDIAN TEXTILE INDUSTRY

2. INTRODUCTION TO VARDHMAN GROUP
• Company Profile
• About Vardhman group
• Establishment of Vardhman
• Brief history
• Mission Statement
• Logo of Vardhman Group
• Different Departments of Vardhman
• Organization Structure
• Board of Directors
• Group Philosophy
• Quality policy
• Adoption of modern management Practices
• Total productive maintenance
• Product Range
• Business Portfolio
• Different Units of Vardhman Textiles Ltd
• Corporate social responsibility
• Awards
• Porter`s Five Forces Model
• Market Position
• Swot analysis of Vardhman group
• HR Philosophy
3. INTRODUCTION TO PROJECT
4. COMPETITORS OF VARDHMAN IN HAND KNITTING YARN
5. REPORT ON BUSINESS UNIT
6. FUNCTIONAL PROCESS OF SALES OFFICE
7. RESEARCH METHODOLOGY OF THE PROJECT
8. ANALYSIS AND INTREPRETATION
9. FINDINGS
10. SUGGESTIONS AND RECOMMENDATIONS
11. BIBLIOGRAPHY
12. ANNEXURE
 INDIAN TEXTILE INDUSTRY

INTRODUCTION

Textile Industry is one of the largest and oldest industries in India. It has a significant role in
India as it fulfills the essential and basic need of people. Textile Industry in India stands at
unique place and has maintained a sustainable growth over the years. This is a self-reliant and
independent industry and has great diversification and versatility.

Textile Industry in India provides great contribution for the development of economy. It is the
second largest textile industry in the world after China. It provides ample employment
opportunities to people belonging to all classes.

Textile Industry represents the rich culture, tradition, heritage & economic well-being of country
with diversified range and versatility. At the same time industry is competitive enough to fulfill
different demand patterns of domestic and global markets.

Current scenario

The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to
the country's gross domestic product (GDP) and 17 per cent to the country’s export earnings,
according to the Annual Report 2009-10 of the Ministry of Textiles.It provides direct
employment to over 35 million people and is the second largest provider of employment after
agriculture.

According to the Ministry of Textiles, the cumulative production of cloth during April’09-
March’10 has increased by 8.3 per cent as compared to the corresponding period of the previous
year.Moreover, total textile exports have increased to US$ 18.6 billion during April’09-
January’10, from US$ 17.7 billion during the corresponding period of the previous year,
registering an increase of 4.95 per cent in rupee terms. Further, the share of textile exports in
total exports has increased to 12.36 per cent during April’09-January’10, according to the
Ministry of Textiles.

As per the Index of Industrial Production (IIP) data released by the Central Statistical
Organisation (CSO), cotton textiles has registered a growth of 5.5 per cent during April-March
2009-10, while wool, silk and man-made fibre textiles have registered a growth of 8.2 per cent
while textile products including wearing apparel have registered a growth of 8.5 per cent.

Following are some major players in Indian Textile Industry

• Arvind Mills
• Raymond
• Reliance Textiles
• Vardhman Spinning
• Welspun India
• Century Textiles
• Morarjee Mills
• Indo Rama
• GTN Textiles
• Ginni Filaments Ltd.
• LNJ Bhilwara Group
• Mafatlal Textiles
• Modern Group
Government Initiative

According to the Ministry of Textiles, investment under the Technology Upgradation Fund
Schemes (TUFS) has been increasing steadily. During the year 2009-10, 1896 applications have
been sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December
31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5
billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has
been disbursed so far till the end of April, 2010. Moreover, in May 2010, the Ministry of Textiles
informed a parliamentary panel that it proposes to allocate US$ 785.2 million for the
modernization of the textile industry.

The Scheme for Integrated Textile Park (SITP) was approved in July 2005 to facilitate setting up
of textiles parks with world class infrastructure facilities. 40 textiles park projects have been
sanctioned under the SITP. According to the Minister of State for Textiles, Panabaaka Lakshmi,
under the SITP, a cumulative expenditure of US$ 204.3 million has been incurred against
allocation of US$ 220.7 million in the last three years.
The key advantages of the Indian industry are:

 India is the third largest producer of cotton with the largest area under cotton cultivation
in the world. It has an edge in low cost cotton sourcing compared to other countries.

 Average wage rates in India are 50-60 percent lower than that in developed countries,
thus enabling India to benefit from global outsourcing trends in labor intensive businesses
such as garments and home textiles.

 Design and fashion capabilities are key strengths that will enable Indian players to
strengthen their relationships with global retailers and score over their Chinese
competitors.

 Production facilities are available across the textile value chain, from spinning to
garments manufacturing. The industry is investing in technology and increasing its
capacities which should prove a major asset in the years to come.

 Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymond
have established themselves as 'quality producers' in the global market. This recognition
would further enable India to leverage its position among global retailers.

 India has gathered experience in terms of working with global brands and this should
benefit Indian vendors.
 Introduction to Vardhman Group

Company Profile

Registered office/ Corporate office : Chandigarh Road, Ludhiana (PB.)

Date of incorporation : 27 December, 1962

Listings on Stock Exchange : Bombay Stock Exchange, Mumbai

National Stock Exchange, Mumbai

About Vardhman Group

Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at
Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, one of the
largest textile conglomerates in India. The Group portfolio includes manufacturing and
marketing of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel. The group started its
corporate journey with an installed capacity of 6000 spindles in 1965 under the flagship
company Vardhman Spinning & General Mills Limited (now known as Vardhman Holdings
Limited and is an investment arm of the Group) in Ludhiana. Over the years the group has
expanded its spinning capacities besides adding new businesses. The group has also diversified
into yarn processing, weaving, Sewing thread, fabric processing, acrylic fibre manufacturing and
into special/ alloy steels. Today, close to 20,000 people is the Organisation s most important
asset its human capital.
The Vardhman group comprises of three listed and two unlisted companies :-
Listed Companies
• Vardhman Textiles Limited (formerly Mahavir Spinning Mills Limited)
• Vardhman Acrylics Limited
• Vardhman Holdings Limited (formerly Vardhman Spinning & General Mills Limited)

Unlisted Companies
• VMT Spinning Company Limited
• Vardhman Threads Limited

ESTABLISHMENT OF VARDHMAN
The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is
otherwise known as the “MANCHESTER OF INDIA”. Within the precincts of this city is
located the Corporate Headquarters of the Vardhman Group, a household name in Northern
India has carved out a niche for itself in textile industry. The Vardhman Group born in 1965
under the entrepreneurship of Late Lala Rattan Chand Oswal, father of present Chairman cum
managing director Sh. S.P.OSWAL, has today blossomed into one of the largest Textile
Business houses in India.

BRIEF HISTORY
The Vardhman Group is one of the largest textile houses in the country. The group has the
sizeable presence in Spinning, Weaving, Sewing Threads, Fabrics Processing, Acrylic Fiber
manufacturing and Alloy Steels.
In 1965, at the time when India was awakening to the need for industrial investment, Ludhiana, a
bustling town in the fertile Malwa belt of Punjab, witnessed the establishment of Vardhman
which started as a 14,000 spindle spinning unit under the entrepreneurship of Late Lala Rattan
Chand Oswal. Vardhman has grown into full – fledged textile group, with a range of textile
products stretching from fiber to fabric. Over the years, Vardhman has expanded its spinning
capacities besides adding new business.
In 1982, the group entered the sewing thread market and has grown to be the second largest
producer of sewing thread. In 1992, it undertook forward integration in the weaving business. It
has also made its mark as the quality producer of Grey poplin/sheeting/shirting in the domestic
as well as foreign market
In 1990, the group went in for another diversification by entering the weaving business. A
grey fabric weaving facility was set up in Baddi, in Himachal Pradesh with a capacity of 20,000
meters per day. Soon after, the group entered into fabric processing by setting up a unit by name
of Auro Textiles in Baddi itself. This unit today has a processing capacity of 1 lac meters/day.

In 1999, the group went in for diversifying into a business where it didn’t have sufficient
expertise when it set up an acrylic fiber manufacturing facility in Bharuch (Gujarat). But this
shortcoming was overcome by bringing in the technological capabilities of two able Japanese
partners, Marubeni and Exlan, into the venture. So a joint venture Vardhman Acrylics Ltd was
set with a two Japanese companies of late the company setting up man integrated textile
manufacturing facility in Buddni and Satlapur(M.P.) where it is setting up a captive power
generation unit, a spinning unit-Satlapur as a composite unit (spinning and weaving)-
Buddni.The spindle capacity of the group is 8.5 lac. More importantly it would give it’s a
manufacturing presence in central India from where it can better serve its western and south
Indian clients. Until now the company had all its manufacturing units in the northern India which
not only made it difficult to serve its far off clients but also posed the problem of capacity
constraints for the company at the existing units just when demand for Textile is expected to pick
up in the post quotes scenario. The capacity is expected to solve both these problems and is
expected to become operational by 2008.During the year 2004 -05 Vardhman Spinning and
General Mills Ltd. (VSGML) merged into Mahavir Spinning Mills Ltd.(MSML) and VSGML
became a holding company.

Today companies of the Group like Vardhman Spinning & General Mills Ltd. (VSML)
and Mahavir Spinning Mills Ltd. (MSML) are listed and trade on various Stock Exchanges in
India. The Group’s joint ventures include VMT Spinning Company Ltd. (A joint ventures with
Toho Rayon Co. Ltd. and Marubeni of Japan) and Vardhman Acrylics Ltd. (A joint venture with
Japan Exlan and Marubeni, Japan)

Vardhman is also the largest manufacturer and exporter of Cotton yarns from India. It is
the second largest producer of sewing threads in India and a large producer of acrylic fiber and
greige/ finished woven fabrics. The company has been awarded the prestigious ‘Texprocil’
award for outstanding achievements in exports regularly over the last decade. Adherence to
systems and true dedication to quality has resulted in obtaining the coveted ISO-9002, ISO-
14002 quality award which is the first in the Textile Industry in India and yet another laurel to its
credit. Vardhman’s endeavor to provide its customers with state-of-the art products has been
felicitated time and again, by the industry and the Government.
 MISSION STATEMENT

Vardhman aims to be the world class Textile organization producing diverse range of products
for the global Textile market. Vardhman seeks to achieve Customer delight through excellence in
manufacturing and customer service based on creative combination of state of the art technology
and human resources. Vardhman is committed to be a responsible corporate citizen. The mission
of the Vardhman Group can be summed up in a single line i.e. “BEING WORLD CLASS
SPINNERS BY PROVIDING HIGHEST QUALITY PRODUCTS WITHIN MINIMUM
COST”.

The vision of the company is as follows:-

“TO BE GLOBALLY RECOGNIZED AS A LEADING SUPPLIER OF QUALITY

FABRICS”
 LOGO OF VARDHMAN GROUP

• The “FLAME” signifies the growth of each and every individual associated with it
whether he or she is a worker, an employee, share holder or a customer.

• The “STICK” symbolizes cotton, which is basic raw material of the core product of
Vardhman Group.

• The “V” stands for Vardhman Group.

 DIFFERENT DEPARTMENTS OF VARDHMAN

COMMERCIAL DEPARTMENT
• Costing
• Raw Material

ADMINISTRATIVE DEPARTMENT
• Industrial relations
• Personnel department
• Transport
• Security
• Establishment (dispatch & issue)
• Electronic data process (EDP)

PRODUCTION DEPARTMENT
• Spinning I
• Spinning II
• Post Spinning I
• Post Spinning
• Worsted I, II
• Hand Knitting section
• Dye house – unit- II

ENGINEERING DEPARTMENT
• Electronic department
• Mechanical department
RESEARCH AND DEVELOPMENT
• Quality control
• New product development
FINANCE DEPARTMENT

Maintaining accounts

Allocation of finance

MATERIAL DEPARTMENT

Packing material

Promotional material
ORGANIZATIONAL STRUCTURE
 BOARD OF DIRECTORS

SH. SHRI PAUL OSWAL- CHAIRMAN AND MANAGING DIRECTOR

SMT. AMITA NARAIN- (NOMINEE OF IDBI)

 SH. ARUN KUMAR PURWAR

SH. PRAFULL ANUBHAI

SH. SUBHASH KHANCHAND BIJLANI

SH. ASHOK KUMAR KUNDRA

SH. DARSHAN LALSHARMA

SH. SHRAVAN TALWAR

SH. SACHIT JAIN - EXECUTIVE DIRECTOR

SMT. SUCHITA JAIN - EXECUTIVE DIRECTOR

SH. NEERAJ JAIN - EXECUTIVE DIRECTOR

CGM (FINANCE, ACCOUNTS AND TAXATION)

SH. RAJEEV THAPAR

COMPANY SECRETARY

SH. VIPIN GUPTA

AUDITORS

M/S. S.C. VASUDEVA & CO.

CHARTERED ACCOUNTANTS

NEW DELHI

GROUP PHILOSOPHY
The Vardhman Group has always emphasized on total customer focus in all operational areas. It
has continuously monitored and nurtured relationships with all the customers and business
associates.

VARDHMAN BELIEVES IN:

• The fact that ‘change ‘is a way of life.
• Absolute market orientation for a quick and positive response to the customer’s needs.
• An uncompromising commitment to a flexible, professional and personalized service
from within a stimulating result oriented environment.
• Timely delivery with consistent standards
• Response approach to the benefits of R&D and the modern technology.
• Having faith in individual potential and respect for human values.
• Being a responsible corporate citizen with due respect to the laws of the land and its
environment.
• Product to be the best available quality for premium market segment.
• These underline the corporate philosophy, which has shaped VARDHMAN OF YESTER
YEARS into VARDHMAN OF TODAY.
Products to be of the best available quality for premium market segment through
TQM and zero defect implementation. For achieving in all functional areas,
encouraging innovations for constant improvement of the product and service.
Having faith in your skill and ability. Always encourage and motivate your group.
Believe in loyalty.

QUALITY POLICY
Vardhman is the market leader in terms of quality of its quality of its products which justifies the
price premium of the product. Therefore its quality policy has a very important role to play in its
organizational culture.
Its quality policy states that “Quality should be built into the company’s products not only to
meet customer’s requirements continuously but also exceed them. The company shall achieve
this interface with the market place, access to the state of art technology, R&D, process
development and adoption of innovative manufacturing and marketing strategies and it shall be
implemented through a network of system and procedure understood and followed throughout
the company.

The quality policy shall be integrated with company’s main objectives:

• To remain the market leader in quality
• Increase market share with focus on niche segment
• Improve productivity
• Cost reduction
• Reduction in percentage of seconds
The management shall be committed to provide capital and human resources to achieve above
objectives. A company wide policy culture shall be created through training and motivation of
people at all level in the organization.

More than 100 quality circles total, quality management, Manav Vikas Kendras for worker
training, communication meetings, inter functional groups are utilized to send a clear message
from top to bottom that “ The Quality & service are a part and modern add on to Vardhman
Products”

TOTAL PRODUCTIVE MAINTENANCE (TPM)

What is TPM?

It aims to create a corporate system that maximizes the efficiency of the production system.
TPM is based on Participation of all members, ranging from the top management to front line
employees.

TPM Policy of Vardhman Group

Maximize overall effectiveness and reliability of the plant and machinery by aiming at “Zero
Break down”, “Zero Defects”, “Zero Accident” through nurturing team work and continuous
development of all employees, following TPM road map for implementation of “Total
Productive Maintenance” (TPM) in the company.

TPM Mission and how it is Training Related

It come under the training because trainers give knowledge of TPM to employee and its mission
is to maximize overall equipment effectiveness and improve flexibility through achievement of
total reliability of total reliability of the plant and machines and development of human resources
by us hearing cultural change by involving all personal working in the company

PRODUCT RANGE
Yarn
• 100% Cotton- Carded /Combed
• 100% Acrylic
• Acrylic / Cotton
• Polyester / Cotton
• Mélange
• Cones / Hanks Dyeing
• Raw white / Bleached / Dyed yarn
• Compact Yarn
• Cotton Lycra Yarn
• Gassed Mercerized cotton yarn/Special blended yarn

Hand knitting yarn

• Fancy
• Twisted

Sewing threads
• Cotton
• Polyester
• Nylon

Fabrics
• Bottom Weight
• Dyed yarn Shirting

Special Steels
• Alloy steels
• Low carbon steels
• Spring steels

YEAR OF ESTABLISHMENT AND MARKET POSITION

Product Year of Establishment Market Share
Yarn 1965 47%
Steel 1972 10%
Sewing Thread 1982 11%
Fabric 1992 22%
Fibre 1999 8%
Yarns

The constant endeavor to excel has transformed Vardhman into being the country’s largest
manufacturer and exporter of cotton yarns
Catering to the diverse requirements of the local and global clients, Vardhman offers a wide
range of specialized grey, dyed and a variety of blended yarns in cotton, polyester and acrylic.
Technical tie-ups with the world class leaders from Switzerland, Germany, Japan and Korea
have provided state-of-the art machinery that has ensured a range of products admired across the
globe for their impeccable quality and service.
Latest technology, sourced from best available around the world, combined with dexterous hands
has made Vardhman a “Super Market of High Quality Yarns”.
1994 was another milestone towards its mission to supply quality products. Vardhman further
improved the value addition to its existing range of tops, fiber dyed and cone dyed yarns.
This was result of new phenomena that emerged on the horizons of Vardhman and also of Indian
Textiles. A fully integrated dyeing plant was commissioned with technology from Nihon Sanmo
Dyeing Co. Ltd., Japan, and the leader in dyeing technology in the world. It has a capacity of
processing 22 tones fiber/tops and 10-tonnes of yarns per day.
Today Vardhman Group has over 50 tones of dyeing capacity per day, spread over various
plants.

PRODUCTS APPLICATIONS
 Cotton Hosiery Yarn All kinds of knitted garments for kids,
ladies ,gents, socks, t-shirts
Woven Yarn Shirts and Trousers
Tyre Cord yarn Manufacturing of Tyres
Acrylic Yarn Sweaters and Shawls
Hand Knitting Yarn Knitting

Sewing Thread

Vardhman is the second largest producer of sewing thread in the country. The sewing thread
manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its
sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12
percent of the group turnover.

SEGMENT APPLICATIONS
Apparel Sewing Threads Clothing, Tailoring, Hosiery
Specialty Threads Sports, Leather Goods,
Gloves, Mattresses,
Quilting, Parachutes etc.
Textile Crafts Embroidery, Crochet
Tapestry etc.
Kite Flying Kite Flying

Fabrics
The group has created state-of-the-art fabric weaving and processing facilities in its plant at
Baddi, Northern India. The group has installed 208 shuttles less looms and a fabric processing
capacity of 30 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics
business contributes 8 percent to the group turnover.

Fiber

Vardhman ventured into the manufacture of acrylic fiber in 1999. The Joint Venture, Vardhman
Acrylics Ltd., was s ET up together with two leading Japanese business houses namely Japan
Exlan company Ltd. and Marubeni Corporation, Japan.

Today, Vardhman Acrylics ltd. produces consistent superior quality fiber and has emerged as an
important producer in India. The products are marketed under the brand name VARLAN.

Varlan fiber has achieved a high order of recognition in the Indian market for its use in a wide
variety of applications such as dress material, blankets, carpets, upholstery, furnishing fabrics
etc. Vardhman acrylic is committed to continuous efforts for developing newer and exciting
applications in close association with the customers and the end users.

Special steels
Vardhman Special Steels was established in the year 1972 to manufacture Special and Alloy
Steel. The true impetus came with the upgrading of the plant located in Ludhiana to an ultra
modern plant. Today it has an installed capacity of 1, 00,000 MT per annum.
Continuous research and development efforts, focused on customer satisfaction, have enabled
Vardhman Steels to meet the stringent quality requirements of producers of all types of
commercial vehicles, tractors, cars, two wheelers, defense applications, and other engineering
products. The company has received approval for its products from leading Companies like
Telco, Ashok Leyland, Maruti, Hindustan Motors, Yamaha, Kinetic and Escorts among others.

GARMENTS

Vardhman Textiles Limited has entered into a Joint Venture agreement with Japan
based Nisshinbo Textiles Inc. by the name of Vardhman Nisshinbo Garments Company
Limited. The equity participation of Vardhman and Nisshinbo would be in the ratio of 51:49.
Nisshinbo is a world class textile manufacturer with comprehensive operations including
spinning, weaving, knitting, finishing and sewing.

The total manufacturing capacity of the project shall be about 1.8 million pieces per annum. This
venture of Vardhman is a step towards a gradual integration of our Textile Value Chain to meet
the clothing requirements of the higher end customers in domestic and international market. The
estimated capital cost of the project is Rs. 30 crores which will be financed partly from equity
contribution by joint venture partners and partly by debt.

The joint venture company will supply majority of its production for international markets
through Nisshinbo. The Joint Venture Company shall also manufacture shirts for supply to the
domestic brands. Nisshinbo shall also provide technical assistance for setting up the facilities and
for the manufacturing operations.

The Foundation Stone of the project was laid on 21st August, 2009 at Phase D-95, Phase VIII,
Focal Point, Ludhiana . Mr. Takeo Shimura, Vice President, Mr. Masatsugu Ohno, Manager,
Textile Fabrics Division and Mr. Masami Tsuji, Manager, Global Operation Section from
Nisshinbo Textiles Inc., Japan specially came to attend the ceremony.

The Project will provide direct employment to about 600 people and is likely to commence
production in July/August 2010. A team of technical persons shall go to Japan and China during
January to May 2010 for training.

DIFFERENT UNITS OF VARDHMAN TEXTILES LIMITED

Vardhman Group consists of 5 SBU’s spread across the country

Yarn Manufacturing Units Location Spindles

Vardhman Spinning and General Mills Ludhiana (Punjab) 64572
Vardhman Spinning Mills Baddi (Himachal Pradesh) 36288
Auro Spinning Mills Baddi (Himachal Pradesh) 77792
Arisht Spinning Mills Baddi (Himachal Pradesh) 82128
VMT Spinning Company Limited Baddi (Himachal Pradesh) 45120
Arihant Spinning Mills Malerkotla (Punjab) 113804
Mandideep (Madhya
Anant Spinning Mills 74496
Pradesh)
Vardhman yarns Satlapur (Madhya Pradesh) 170528
Vardhman Fabrics (Yarns Division) Bhudhni(Madhya Pradesh) 60000
Vardhman Yarns and Threads Ltd. Spinning Hoshiarpur (Punjab) 60352
Spinning-Total 785080
Rotors
Auro Spinning Baddi (Himachal Pradesh) 1248
Vardhman Fabrics Bhudhni(Madhya Pradesh) 2160
Total 3408

Yarn & Fibre Dyeing Units Location Production Capacity

Vardhman Spinning and General Mills, Dye
Ludhiana (Punjab) 20 Tonnes per day
House
Auro Dyeing Baddi (Himachal Pradesh) 35 Tonnes per day
Fibre Dyeing 15 Tonnes per day
Yarn Dyeing 20 Tonnes per day
Mahavir Mercerizing Unit Hoshiarpur (Punjab) 15 Tonnes per day
Total 65 Tonnes per day

Fabric - Weaving Units Location Production Capacity

Auro Weaving Mills Baddi (Himachal Pradesh) 264 looms
Mahavir Spinning Mills Baddi (Himachal Pradesh) 236 looms
Vardhman Fabrics Bhudhni(Madhya Pradesh) 400 looms
Total 900 looms

Fabric Processing Units ( Finished Fabric) Location Production Capacity

50 million meters per
Auro Textile Baddi (Himachal Pradesh)
anuum
40 million meters per
Vardhman Fabrics Bhudhni(Madhya Pradesh)
anuum
90 million meters per
Total
anuum
Sewing Thread Business Location Production Capacity
Vardhman Yarns and Threads Limited (Unit
Hoshiarpur (Punjab) 21 MT per day
-I)
Vardhman Yarns and Threads Limited (Unit
Ludhiana (Punjab) 7 MT per day
-II)
Vardhman Yarns and Threads Limited (Unit
Perundrai (Tamil Nadu) 3 MT per day
-III)
Vardhman Yarns and Threads Limited (Unit
Baddi (Himachal Pradesh) 2 MT per day
-IV)
Total 33 MT per day

Steel Business Location Production Capacity

Steel Unit-Vardhman Special Steels Ludhiana (Punjab) 100000 MT per

Acrylic Business Location Production Capacity

Fibre Manufacturing Unit-Vardhman Acrylic
Jhagaria (Gujarat) 18000 MT per annum
Ltd.

Globalization:
Vardhman ventured in to the global market in 1986 with an export value of one core to reach
exports of $150 mn in FY 2008-09. Little wonder then, that Vardhman, today, exports 40% of its
yarn production to more than 25 countries and has a strong presence in markets like the EEC,
USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East. Vardhman has a
share of more than 6% in total Yarn exports from India.

Its trusted, tested and reliable workforce, coupled with the latest technology, quality
consciousness, customer oriented services and strong logistics has given Vardhman an edge over
its competitors and in the world’s most quality conscious and price sensitive markets. Thereby
making Vardhman a truly international organization in terms of sourcing from and catering to the
world market.

Markets of Vardhman
Australia Portugal
South Africa Iran
Tunisia Morocco
 Brazil Turkey
Bangladesh Russia
Belgium Saudi Arabia
China Singapore
Canada Sri Lanka
Colombia Spain
Egypt Switzerland
Germany Syria
Greece Thailand
Hongkong U.K.
Indonesia Ukraine
Israel Uruguay
Italy USA
Japan Venezuela
Korea Vietnam
Lebanon New Zealand

To face the challenges of the New World order, Vardhman attaches great importance to the development of its
main resource -People. At its core lies the recognition and respect for individual dignity and human values. It is
the caliber and professionalism of its people that has helped Vardhman maintain its leadership in competitive
environment. At Vardhman people understand the market expectations and competitive challenges. The
emphasis is on fostering innovation and creativity at work so that the employees can translate uncertainties into
opportunities and opportunities into accomplishments.
 Corporate Social Responsibility

Some of our CSR activities -

• Sri Aurobindo Socio-Economic and Management Research Institute are engaged in the promotion of
education, research and publications highlighting social and economic issues facing the society. The
Institute runs a Human Resource Development Centre for providing career counseling and guidance to
college students in Punjab. The teams of experts also visit the colleges in the state to prepare college
students for gainful employment in the industry.
• Sprung from a keen desire to set up an educational institution in Ludhiana and inspired by the writings
of Sri Aurobindo and the Mother, the Trust has set up a college - Sri Aurobindo College of Commerce
and Management (affiliated to the Punjab University) with the mission to create an institution with
distinction dedicated to the ideals of creating disciplined career oriented young people ready for going
for administrative and management roles in enterprises or to set up their own business as entrepreneurs.

A Vardhman initiative to improve the yield of cotton in Punjab in 2001 when the State had suffered a shock
of crop devastation and area under cotton cultivation was dwindling, led to the experiment to adopt villages and
see whether concerted efforts in bringing knowledge to farmers could improve the yield of cotton. The
experiment was successful as it improved the yield of cotton to 873 kg/hectare in 2005 in adopted villages
where the average yield of cotton in the State of Punjab was 587 kg/hectare (world average - 700 kg/hectare). It
found mention in the President's broadcast on Technology Day (11/05/04) as a 'technological event which has
the potential to penetrate into our everyday lives'. The Village Adoption Program also found mention the
President's address to the nation on the eve of India's 56th Republic day. The President of India was gracious to
bless one of the participating Villages -'Gehri Buttar' (District - Bathinda) by his presence on December 10,
 2005.

• Vardhman is actively engaged in the activities of Nimbua Greenfield Punjab Limited (www.ngpl.co.in)
formed by a consortium of Industries of Punjab for developing a common facility for storage, treatment
and disposal of hazardous wastes generated by the Industry with a Government of India grant.
 AWARDS

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SPECIAL ACHIEVEMENT

AWARD IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SILVER TOP

EXPORTER AWARD IN YARN
CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 BRONZE TROPHY IN

PROCESSED YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 WORLD TROPHY IN HIGHEST

EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 BRONZE TROPHY FOR HIGHEST

GLOBAL EXPORT CATEGORY
(OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 WORLD TROPHY IN HIGHEST

EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 SILVER TROPHY FOR HIGHEST

GLOBAL EXPORT CATEGORY
(OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 GOLD TROPHY IN EOU/EPZ FOR

EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 BRONZE

TROPHY IN MILL FABRIC
EXPORTER CATEGORY
TEXTILE EXPORT PROMOTION COUNCIL 2002-03 GOLD TROPHY IN EOU/EPZ FOR
EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 1998-99 SILVER TROPHY

TEXTILE EXPORT PROMOTION COUNCIL 1997-98 BRONZE TROPHY

TEXTILE EXPORT PROMOTION COUNCIL 1996-97 SILVER TROPHY

GOVT. OF INDIA AWARD 1994-95, 1995-96 AWARD OF MERIT

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 BRONZE TROPHY
(MERCHANT EXPORT CATEGORY FOR FABRICS)

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 GOLD TROPHY

(MERCHANT EXPORT CATEGORY FOR FABRICS)

S P Oswal conferred with Padma Bhushan:

(The Padma Bhushan award has conferred to S.P. Oswal by The President of India,
Ms. Pratibha Patil at Rashtrapti Bhawan as on 31st March, 2010.)
Porter’s Five Forces Model
Rivalry among existing competitors : Vardhman besides being the market leader faces a tough
competition from the established players like Oswal and Malwa. Both the competitors are
producing similar products with a little bit of price variation. The customers shift to these brands
looking at the variation in price. But a quality conscious customer always prefers to buy
vardhman products.

Threat of new entrants : Vardhman is also facing threat from companies manufacturing
readymade hosiery as they are quite fashionable, time saving and available at reasonable rates
and they are also facing threat from upcoming local hand knitting yarn manufacturing
companies.

Bargaining power of Buyers: Bargaining power of buyers is always high because if one
company sets higher prices of it`s product, then customer can easily shifts from buying it`s
product to it`s competitor`s product, so here customer bargaining power is high. There is one
more reason that if customer does not like the quality of one company`s product, then customer
has many options to shift to other company`s product.

Bargaining power of Suppliers : The bargaining power of suppliers is always high .

Threat of Substitutes : Vardhman is also facing threat from substitutes available in the market
i.e. products manufactured by Vardhman has many substitutes as other companies like Oswal
and Malwa also manufactures same quality products, so customer has many options to shift from
one company`s product to the other.
 MARKET POSITION

• Largest Spinning capacity in India - over half a million spindles.

• Largest producer of Cotton, Synthetics and Blended yarns in the country

• Largest Dyeing Capacity of Fiber and Yarn

• Largest Exporter of Cotton Yarn

• Market Leader in Hand Knitting Yarns in India

• Largest range of Textile products

• Second largest producer of Sewing Thread in the country

• Collaborations with specialist worldwide

• ERP (Enterprise Resource Planning) enabled solutions for online order tracking

• First Indian Textile company to get ISO-9002 and IS-14002 certification

• Exports to high quality conscious countries like Japan, Hong Kong, Germany, UK and

Switzerland.

• Largest Producer of Hosiery Yarns, dyed yarn and Hand-knitting Yarn.

SWOT ANALYSIS OF THE VARDHMAN GROUP

 STRENGTHS

• Good Brand Equity

• Good technological base with Foreign Collaboration
• High Quality Standards
• High Production Capacity
• Own Research and Development department
• Commitment for growth
• Human Capital
• Zero Defect and optimum production with zero wastage
• Its culture and philosophy

WEAKNESSES

• Comparatively high prices

• Some products are of poor quality.
• Lesser degree of promotional activity
• Long Hierarchy
• Not much outlets.

OPPORTUNITIES

• As quality is good and prices are comparatively high, Vardhman can always easily
liquidate stock pressure by slight reduction in prices.
• As brand image is very good and production is too wide, Vardhman can have some good
customers with whom direct business can be established. With this Vardhman will have
better Quantity and Regularity of sales.
• Strict payments are strengths at times as well as weakness. If a moderate policy, as per
present conditions are adopted, the dealers and customers shall be attracted to buy more
and regularly.
• Shortened hierarchy shall provide hope for better customer service.

THREATS

• Smaller players in the market are using Vardhman’s process as a shield to push their
product at lower prices.
• Companies from south are entering into Ludhiana market.
• Vardhman hand knitting yarn is also facing threats from readymade hosiery as people
prefers to buy it cause it is time saving, easily available at affordable prices which makes
them to shift towards it.

HR PHILOSOPHY
Across the boundaries of time and space, the best transmission and perseverance of culture,
values and philosophy is only through the hearts of people.

 Employees in Vardhman are its most valuable resource and development of business and
of employees must go hand in hand.
 Every employee is special and unique in his own field and has infinite potential to make
contribution to the organization.
 Merit is the most important criteria for recruitment and reward.
 Creativity and innovation in technology and management through our people is our
competitive edge
 HR processes facilitate consistent improvement in performance, productivity and
effectiveness through mutually agreed stretched targets.
 Continuously strive to improve quality of work-life for total job satisfaction and social
harmony for the employees.
 HR prepares people to accept and adapt to change and learning as a way of life
 HR promotes high standards of discipline at the workplace and compliance with the laws
of the land.
 Prepares youth for executive role in business as a major social responsibility.
 INTRODUCTION TO PROJECT

One cannot rely on theoretical knowledge imparted in the institutions. To maximize the
theoretical knowledge, it has to be accompanied by practical one. Lesson learnt in the classroom
helps us to understand the fundamental concepts of management and also facilitate in learning of
practical situations. The practical training helps us to provide necessary industrial exposure and
useful experience. It is therefore, very necessary that theoretical knowledge and practical training
should go hand in hand.
As an integral part of the curriculum, I had opportunity to do summer training at HAND
KNITTING YARN SALES OFFICE of VARDHMAN SPINNING AND GENERAL MILLS.

HAND KNITTING YARN

Yarn is a continuous length of interlocked fibers, suitable for use in the production of textiles,
sewing, crocheting, knitting, weaving, embroidery and rope making. Hand knitting yarn is a
special type of yarn which is knitted manually.
Hand knitting yarn is available in three packings at vardhman:

 HANK

 BALL FORM

 LACHHI

HANK PACKING:
Hank packing is the highest weight packing in hank knitting yarn, with average 3kg yarn in a
packing. Standard package is 3kgs in hanks. In hank packing counts available are 2.5 in
1/2/3/4/6 ply. Hanks include many product varieties like millennium, crystal, brylon, sizzle,
khushboo, rabbit excel, butterfly, shinning star, sensation, etc. Millennium is considered one
of the best products with the sales point of view. Wide range of colors is available in hank
packing.
 BALL PACKING:
Ball packing is the next range in hand knitting yarn, with average packing of 200gms of
packing. The packing is done in cardboard boxes with either 6 yarn balls having 25gms of
weight each and hence 150gms of packing. There are packing of 4 yarn balls also with each
ball weighing 50gm. Some of the major ball packing are soft and smart, cozy care, salsa,
Christina premium, blossom, lamb air etc. out of them soft and smart is considered the best in
term of sales following it is Christina premium.

LACHHI PACKING:
Lachhi packing is the hand knitting yarn packing available in 100gm packs. This is a small
packing targeting to the end consumer. It contains many varieties and product range like
microshine, pretty baby etc.

COMPETITORS OF VARDHMAN IN HAND KNITTING YARN

1. Oswal
2. Malwa
3. Rosy
4. Local small scale manufacturers of hand knitting yarn like Manchanda, Surbhi, Ganga
etc.

Amongst them Oswal is the biggest and the main competitor of Vardhman, Most of the products
manufactured by Oswal are of same quality as of Vardhman, which creates confusion in the
minds of many customers to buy which company`s product. There is also a very small variation
between the prices set by Oswal and Vardhman of their products. Vardhman is the leader in hand
knitting yarn segment whereas Oswal and Malwa are the followers i.e. whenever Vardhman
launch new product, Oswal and Malwa always try to copy that same product. In yarn segment
there are also some local players like Rosy, Manchanda, surbhi etc. who are also affecting
Vardhman`s market share. Vardhman is the most preferred brand amongst all, as customer likes
the quality of it`s product.
 Report on Business Unit

Vardhman manufactures five major products which are Yarns, Fibre, Fabric, Sewing Thread and
Steel. Yarn contributes 47% to the total turnover of the Vardhman out of which Hand Knitting
Yarn contributes 4%. Vardhman is market leader in hand knitting yarn, it holds only 19% of the
market share

I had opportunity to do summer training at HAND KNITTING YARN SALES OFFICE of

VARDHMAN SPINNING AND GENERAL MILLS.

The Sales department has been divided into four section:

Sales Section: The main task of sales section is to satisfy the customers by supplying them
quality goods throughout India. The Officers takes decisions regarding the stock, credibility of
the parties and production planning.

Invoicing Section: This section undertakes the whole invoicing procedure. Generation and
verification of Bill, Collection of C-forms, to be provided are the major tasks of this section.

Accounts Section: This section maintains and records the accounts of all the parties(domestic
and local) of Vardhman. Collection of payment, Insurance claims, Interest and Incentives to be
provided are the major tasks of this section. The Details and accounts of each and every party is
sent to the corporate office by the clerks.

Despatch Section: This section looks after the branch transfer, stock in the warehouse, Packing
and dispatching of goods.

Objective of Sales Office

 Customer satisfaction by providing quality products.

The Sales office is interlinked with other departments of vardhman in a following manner:

Commercial Department: The commercial department performs the task of purchasing the raw
material for the production and deciding the cost of the products. The commercial department is
informed by sales office about the requirement.

Production Department: The production department performs the task of producing the yarn.
The capacity of plant for producing hand knitting yarn is 15-20 tons per day. The requirements
are communicated by the commercial department and production is done accordingly.

Administrative Department: The Administrative department performs the task for hiring and
recruiting new employees, appointment of trainees, Promotions and transfers etc. Moreover it
also undertakes the task of security.

Research and Development: The research and development department plays a vital role as it
performs the task of Quality Check and also decides upon the new products to be launched.

Marketing Department: This department performs the task of deciding the marketing strategies
for the products, Promotional material, and various other activities.

Finance Department: This department performs the task of recording and maintains the
accounts of the company and parties. The Details and records of each party are sent to this
department by the sales office.

Material Department: This department performs the task of providing the packing material like
cartons, boxes and ropes.
 Functional Products of Hand Knitting Yarn

Hank packing Ball packing Lachhi packing

Brilon Fairy angel Prime rose

Neelgiri Cozy care Microshine
Millennium Glamourous Pretty baby
Sparkle Salsa premium Winter shine
Crystal Glam and glitz
Sensation Soft n smart
Madonna Little angel
Kashmira touch Christina premium
Khushboo Caliber plus
Rabbit excel Blossom
Dreamz Smart fibre
Butterfly Lamb-fair
Indica Baby soft
Melody fine Elegance
Ultima
Venice
Sizzle
Ginni
Crazy
Deluxe
Jasmine
Mehak
Maria
Grammy
Shining star
Unique
Charming
Blooming
Desire
Delight
Dhamaal

RESEARCH METHODOLOGY
Marketing Research is the systematic design, collection and analysis of the data and reporting
of information and findings relevant to a specific marketing situation facing the company.
Research Technique
It is imperative to decide upon and document a research methodology well in advance to carry
out the research in a most effective and systematic way. This section describes the research
methodology adopted to serve the objectives of the study in an effective manner. Descriptive
Research technique is being used for this project.

Problem Definition

Vardhman’s hand knitting yarn have only 3-4% stake in its yarn segment. Though Vardhman is
market leader in hand knitting yarn, it holds only 19% of the market share is one of the biggest
challenges. With the passage of time the trend of wearing the hand knitted garments is changing.
The readymade market is taking over the market of hand knitting yarn. After a lot of discussion
decision has been made to identify the reasons for change in trend and decrease in demand of
hand knitting yarn. For this, proper research is required to know the current market scenario and
perception of dealers and customers towards this changing trend.
So as to take a competitive decision, research has to be conducted and accordingly the project
assigned is “ To Study of Current Market Scenario and effect of increase in price of Hand
Knitting Yarn”.

APPROACH OF THE PROJECT

By doing this research and by knowing the reasons for change in trends, Vardhman can decide
whether it needs to improve upon its marketing strategies. In this research, Past sales trend, need
for promotional activities, reasons for declining preference of hand knitting yarn and answers to
many other questions are being sought so that improvements can be made. After survey company
can judge the present scenario and take a corrective decision to capture the market share and add
another feather to its already decorated cap.

COLLECTION OF DATA

In this research project data is collected both from primary and secondary sources.
Primary Data: Dealers were personally visited and interviewed and the data was collected with
the help of questionnaire. The questionnaire is so designed so as to contain appropriate number
of questions and to satisfy all research objectives. The questionnaire contained both open-ended
and close-ended questions. Special care was taken to ensure that questions were simple and did
not lack clarity.
Secondary Data: The secondary data was collected from informational and company’s own
website.

Sample Design
In selecting the sample for the survey, special care was taken to ensure that correct results can be
obtained. Two districts of Punjab named Ludhiana and Jalandhar were covered for this project.
The samples were selected on the sole judgment of the interviewers so that the concerned sample
fit the criteria or possess the characteristics required for their study.

Sampling Technique

Sampling technique used for this project is judgmental sampling.

Sample Size & Break-Up

I had a chance to survey 24 dealers and retailers of hand knitting yarn and 15 customers to know
about the current market scenario and changing trend of hand knitting yarn.

DATA ANALYSIS AND IT`S INTERPRETATION

 FOR MARKET SCENARIO AND EFFECT OF INCREASE IN PRICE OF
HAND KNITTING YARN

Questionnaire for Dealers

Q1. How many brands of the following you deals with?

 Vardhman

 Oswal

 Malwa

 All of above

 Others(please specify)………………………………

Brand Awareness No. of respondents

Vardhman 4
Oswal 3
Malwa 3
All of the above 12
Others 2
Total 24
Q2. Which product do you sell?
• Hand Knitting Yarn

• Readymade Garments

• Both A & B

Products No. of respondents

Hand Knitting Yarn 17
Readymade Garments 5
Both A & B 2
Total 24
Q3. Which type of packing do you prefer?

• Hank packing

• Ball packing

• Lachi packing

• All Above

Type of packing No. of respondents

Hank 6
Ball 4
Lachi 5
All Above 9
Total 24

Q4. What is the point of difference between Vardhman and all other brands ?
• Quality

• Quantity

• Price

• Service

Point of difference No. of respondents

Quality 15
Quantity 5
Price 3
Service 1
Total 24

Q5. For how long you have been in this business?

• Less than 10 years

• 10-20 years

• More than 20 years

No. of years No. of respondents

Less than 10 years 5
10-20 years 7
More than 20 years 12
Total 24
Q6. How much there is increase in price of Vardhman hand knitting yarn as compared to
previous year?
• Approximately Rs. 20

• Rs. 50-100

• Rs. 100-200

Increase in price No. of respondents

Approximately Rs. 20 3
Rs. 50-100 15
Rs. 100-200 6
Total 24
Q7. Has other companies also increased their price as compared to Vardhman?
• Yes

• No

• No Information

Responses No. of respondents

Yes 19
No 1
No Information 4
Total 24
Q8. According to you what is the reason for increase in price of Vardhman hand knitting yarn?
• Increase in fibre price

• Transportation charges

• Any other(please specify) …Labour………………………………………….

Reason No. of respondents

Increase in fibre price 14
Transportation charges 6
Any other 4
Total 24

Q9. Which company has most superior hand knitting yarn?

 Vardhman

 Oswal

 Malwa

 Other

Name of company No. of respondents

Vardhman 20
Oswal 3
Malwa 1
Other 0
Total 24
Q10. How the increase in price will effect the buying behavior of customers?
• Increase

• Decrease

• Remains same

Effect of price No. of respondents

Increase 3
Decrease 12
Remains same 9
Total 24
Q11. Which are the other competitors of Vardhman in the market?
• Oswal

• Malwa

• Both oswal and malwa

• Other (please specify)…………………………………………………..

Name of company No. of respondents

Oswal 7
Malwa 5
Both Oswal & Malwa 12
Other 0
Total 24
Q12. What ultimately consumer demands?
• Low price low quality

• High price high quality

Demand No. of respondents

Low price low quality 10
High price high quality 14
Total 24
 Q13. Has Vardhman hand knitting yarn dominated the market in present era?

• Yes

• No

Responses No. of respondents

Yes 20
No 4
Total 24

Q14. Rank the factor that you think are the reasons for sale of hand knitting yarn on a scale of 1-
5?
• Low cost

• Easy maintenance

• Advertisement

• More warmth

• Durability

Factors Mean Scores Rank

Durability 4.53 1
More Warmth 3.57 2
Advertisement 2.57 3
Easy Maintenance 2.37 4
Low Cost 2.15 5

Q15. What has been the sales trend of hand knitting yarn in recent years?
• Increasing

• Decreasing

• Fluctuating

Sales trend No. of respondents

Increasing 11
Decreasing 10
Fluctuating 3
Total 24
Q16. What do you think about the future demand of hand knitting yarn?
• Will increase

• Will decrease

• Remain stable

Demand No. of respondents

Will increase 6
Will decrease 15
Remain stable 3
Total 24
Q17. Which promotional tools is Vardhman using?
• Posters and banners

• Dealer meetings

• Lucky draw schemes

• All of the above

• None of these

Promotional tools No. of respondents

Posters and banners 4
Dealer meetings 5
Lucky draw schemes 2
All of the above 2
None of above 11
Total 24
Q18.Any suggestions-
…………………………………………………………………………………
……………………………………………………………………………………
…
……………………………………………………………………………………
……………………………………………………………………

Thanks for the cooperation !

 QUESTIONNAIRE

FOR CUSTOMERS

NAME ..................................... AGE................. GENDER.................

ADDRESS: .......................................................................................................................

Q1. How often do you knit?

• Daily

• Weekly

• Monthly

• Yearly

Time period No. of respondents

Daily 0

Weekly 0

Monthly 6

Yearly 9

Total 15
Q2. For how many years are you using Vardhman hand knitting yarn?

• 1 year

• 2 year

• 5 years

• More than 5 years

Time period No. of respondents

1 year 0

2 years 2

5 years 3

More than 5 years 10

Total 15
Q3. What do you knit?
• Sweater

• Gloves

• Cap

• Socks

Type of product No. of respondents Percentage

Sweater 10 67

Gloves 2 13

Cap 1 7

Socks 2 13

Total 15 100

Q4. Why do you use hand knitting yarn?

• Attraction

• Love
 • Warm

• Durable

Reason No. of respondents

Attraction 4

Love 1

Warm 8

Durable 2

Total 15

Q5. Do you consider hand knitting yarn as?

Fashionable……………………………………………………..Traditional

Consideration No. of respondents

Fashionable 5
Traditional 10
Total 15
Q6. What type of packing do you prefer most?

• Hank Packing

• Ball Packing

• Lachi Packing

Type of packing No. of respondents

Hank 3

Ball 9

Lachi 3

Total 15
Q7. What makes Vardhman better than other other brands?
• Quality

• Quantity

• Price

• Service

Point of difference No. of respondents

Quality 13

Quantity 1

Price 1

Service 0

Total 15
Q8. Will increase in price of Vardhman hand knitting affects your buying behavior?
• Yes

• No

Response No. of respondents

Yes 12

No 3

Total 15
Q9. Is price of Vardhman hand knitting yarn high as compared to other brands in the market ?
• Yes

• No

Response No. of respondents

Yes 12

No 3

Total 15
Q10. Which type of quality do you usually prefer?
• Plain

• Feather

• Fancy

• Raising

• Other

Type of quality No. of respondents

Plain 5

Feather 4

Fancy 5

Raising 1

Other 0

Total 15
Q11. How many of the following are you aware of ?
 Vardhman

 Malwa

 Oswal

 Other(please specify)……………………………………………………………….

Name of the company No. of respondents Percentage

Vardhman 0 0

Malwa 2 13

Oswal 2 13

Other 2 13

Both A &B 0 0

Both A & C 8 54

Both B & C 0 0

A,B & C 1 7

Total 15 100
Q12. Are you satisfied with the increase in price of Vardhman hand knitting yarn?
• Yes

• No

Response No. of respondents

Yes 3

No 12

Total 15
Q13. Are you satisfied with the services of dealers?
• Yes

• No

Response No. of respondents

Yes 15

No 0

Total 15
Q14. In future what would you prefer?
• Hand knitted goods

• Readymade garments

Type of goods No. of respondents

Hand knitted goods 10

Readymade garments 5

Total 15
 Q15. Any suggestions-
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………

Thanks for the cooperation !

Findings

Most preferred Brand: Through our survey we found that Vardhman is the most preferred
brand amongst customers i.e. they demand vardhman yarn first and if it is not available in shop,
only then they buys other companies products.
Known for Best Quality: While conducting survey, I found that most of the customers buy
hand knitting yarn only because of it`s quality i.e. price and shades comes after that. Vardhman
is the only company which rises up to their expectations by providing them quality products with
more warmth and durability within it.

Change in trend of Hand knitting yarn: As we know that nowadays most of the people likes to
wear readymade hosiery as they feels it to be more fashionable and in trend rather than wearing
hand knitting yarn clothes, which leads to a big setback for many hand knitting yarn
manufacturing companies and causes a decline in its demand.

Tough Competition: We also found that there is a neck to neck competition between Vardhman
and Oswal and there are also some local players who are affecting the market share of both
above mentioned companies. Prices set by Vardhman and Oswal are pretty high which makes the
customer to buy local made products.

Hike in prices: There has been increase in prices of hand knitting yarn year by year. Due to this
reason many people have stopped knitting. If we compare the current prices of hand knitting yarn
with the previous year, we will find that there has been increase of around 100rs per kg which is
more than a sufficient reason for customers to divert from hand knitting towards readymade
hosiery as it saves both time and money.

Suggestions and Recommendations

Sales Promotion Activities: Vardhman should increase its sales promotion activities i.e. it
should give some promotional material or offers to the customers so that customer would more
prefer buying its products over it`s competitors. As we know that retailer is the only one medium
through which hand knitting companies can sell its products to the customer, so it should provide
him some incentives, advertising material and should hear their grievances and suggestions,
which might be beneficial for the companies in deciding it`s future prospects. Advertisement also
can prove to be an effective source of promotion. Vardhman should go for brand endorsement
from famous celebrities, which might influence the buyers to buy it`s product.

Attractive Packaging : Vardhman should go for attractive packaging to encourage the

customers to buy it`s products i.e. they should provide free knitting sticks and design books
along with the product which further might help in increase its products sale.

Affordable Prices: Prices of hand knitting yarn is increasing day by day which is the main
reason for many customers to stop knitting. Hand Knitting Yarn is mostly preferred by the
middle class women and women in rural areas, so company should set prices accordingly. Thus
hike in prices might lead to customers shift from hand knitting yarn to readymade hosiery.

Regular Inspection of Market : Company should make one inspection team and sends it to the
market for regular inspection and to check duplicacy of Vardhman products because many local
dealers sells inferior quality products with a tag of Vardhman on it to the customers which might
affects the goodwill of Vardhman in the market.

Increase in number of dealers: In my survey, I found that customer first preference is to buy
Vardhman products as it is of good quality but the dealers who were selling those products are
very less in numbers, which further gives an opportunity to the local retailers and dealers to sell
their product with a tag of Vardhman on it. There is also some lack of awareness amongst
customers as most of them doesn`t know from where to buy Vardhman`s product i.e. they don`t
have any information about Vardhman`s dealers present in the market. So, here Vardhman
should increase it`s dealers and makes the customer aware about them in order to avoid
duplicacy in the market.

Improve Quality : As we know that people buys Vardhman products, only because of it`s
quality, but most of the dealers and retailers of Vardhman surveyed, were of the opinion that
Vardhman should improve the quality of it`s some products as it is declining day by day, which
makes their customer to shift towards other company`s product.

BIBLIOGRAPHY

1.www.vardhman.com

2. www.ibef.org

3. www.googlescholar.com

4. www.interbrand.com
5. Marketing Management By Phillip Kotler

6. Marketing Research By Naresh K. Malhotra

ANNEXURE
QUESTIONNAIRE FOR DEALERS

NAME- ………………………..

ADDRESS- …………………………………………………………………………………..
………………………………………………………………………………….
Q1. How many brands of the following you deals with?
• Vardhman

• Oswal

• Malwa

• All of above

• Other

Q2. Which product do you sell ?

• Hand knitting yarn

• Readymade garments

• Both A&B

Q3. Which type of packing do you prefer?

• Hank packing

• Ball packing

• Lachi packing

• All of above

Q4. What is the point of difference between Vardhman and all other brands?
• Quantity

• Quality

• Price

• Service

Q5. For how long have you been in this business?

 Less than 10 years

 10-20 years

 More than 20 years

Q6. How much there is increase in price of Vardhman hand knitting yarn this year as
compared to previous year ?
 • Approximately Rs.20

• Rs.50-100

• Rs.100-200

Q7.According to you what is the reason for increase in price of Vardhman Hand kiniting
yarn?
Increase in fibre prices
Transportation charges
Any other(please specify)…………………………..

Q8. Have other companies also increased their price as compared to Vardhman?
 Yes

 No

 No information

Q9. Which company has most superior hand knitting yarn?

 Vardhman

 Oswal

 Malwa

 Other

Q10. How much the increase in price will effect the buying behavior of customers?
 Increase

 Decrease

 Remains same

Q11. Has Vardhman hand knitting yarn dominated the market in present era?
 Yes

 No

Q12. Which are the other competitors of Vardhman in the market ?

 Oswal

 Malwa

 Other (please specify)…………………………………………….

Q13. What ultimately consumer demands?

 Less price less quality
  More price more quality

Q14. Rank the factors you think are the reasons for sale of hand knitting Yarn on a scale of
1 to 5-
• Low cost

• Easy Maintenance

• Advertisement

• More warmth

• Durability

Q15. What has been the sales trend of Hand Knitting yarn in recent years?
Increasing Decreasing Fluctuating

Q16. What do you think about the future demand of hand knitting yarn?
Will increase

Will decrease

Will remain stable

Q17.Which promotional tools is Vardhman using?

Poster and banners

Dealer meeting

Lucky draw schemes

All of above

Non of these

Q18. Any suggestions-

………………………………………………………………………………………………
……………………………………………………………………………………………………
…………
……………………………………………………………………………………………………
…………………………………………………………..
 Thanks for your cooperation !

QUESTIONNAIRE
FOR CUSTOMERS
NAME ..................................... AGE................. GENDER.................

ADDRESS: .......................................................................................................................

Q1. How often do you knit?

 Daily

 Weekly

 Monthly

 Yearly

Q2. For how many years are you using Vardhman hand knitting yarn?
 1 year

 2 year

 5 years

 More than 5 years

Q3. What type of packing do you prefer most?

 Hank Packing
  Ball Packing

 Lachi Packing

Q4. What makes Vardhman better than other other brands?

 Quality

 Quantity

 Price

 Service

Q5. Will increase in price of Vardhman hand knitting affects your buying behavior?
 Yes

 No

Q6. Is price of Vardhman hand knitting yarn high as compared to other brands in the market ?
 Yes

 No

Q7. Which type of quality do you usually prefer?

 Plain

 Feather

 Fancy

 Raising

 Other

Q8. How many of the following are you aware of ?

 Vardhman

 Malwa

 Oswal

 Other(please specify)……………………………………………………………….

Q9. Are you satisfied with the increase in price of Vardhman hand knitting yarn?
 Yes

 No

Q10. Are you satisfied with the services of dealers?

 Yes
  No

Q11.Any suggestions-
………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………….
Thanks for your cooperation