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UNDER TAKEN AT
VARDHMAN TEXTILES LIMITED
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.
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
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.
• 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
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 “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.
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
COMPANY SECRETARY
AUDITORS
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.
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.
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”
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.
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.
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
Sewing threads
• Cotton
• Polyester
• Nylon
Fabrics
• Bottom Weight
• Dyed yarn Shirting
Special Steels
• Alloy steels
• Low carbon steels
• Spring steels
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.
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
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
(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.
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
• ERP (Enterprise Resource Planning) enabled solutions for online order tracking
• Exports to high quality conscious countries like Japan, Hong Kong, Germany, UK and
Switzerland.
WEAKNESSES
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.
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.
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
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.
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
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”.
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
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.
Oswal
Malwa
All of above
Others(please specify)………………………………
• Readymade Garments
• Both A & B
• Hank packing
• Ball packing
• Lachi packing
• All Above
Q4. What is the point of difference between Vardhman and all other brands ?
• Quality
• Quantity
• Price
• Service
• 10-20 years
• Rs. 50-100
• Rs. 100-200
• No
• No Information
• Transportation charges
Oswal
Malwa
Other
• Decrease
• Remains same
• Malwa
• Yes
• No
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
Q15. What has been the sales trend of hand knitting yarn in recent years?
• Increasing
• Decreasing
• Fluctuating
• Will decrease
• Remain stable
• Dealer meetings
• None of these
FOR CUSTOMERS
ADDRESS: .......................................................................................................................
• Weekly
• Monthly
• Yearly
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
1 year 0
2 years 2
5 years 3
Total 15
Q3. What do you knit?
• Sweater
• Gloves
• Cap
• Socks
Sweater 10 67
Gloves 2 13
Cap 1 7
Socks 2 13
Total 15 100
• Attraction
• Love
• Warm
• Durable
Attraction 4
Love 1
Warm 8
Durable 2
Total 15
• Hank Packing
• Ball Packing
• Lachi Packing
Hank 3
Ball 9
Lachi 3
Total 15
Q7. What makes Vardhman better than other other brands?
• Quality
• Quantity
• Price
• Service
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
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
Yes 12
No 3
Total 15
Q10. Which type of quality do you usually prefer?
• Plain
• Feather
• Fancy
• Raising
• Other
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)……………………………………………………………….
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
Yes 3
No 12
Total 15
Q13. Are you satisfied with the services of dealers?
• Yes
• No
Yes 15
No 0
Total 15
Q14. In future what would you prefer?
• Hand knitted goods
• Readymade garments
Readymade garments 5
Total 15
Q15. Any suggestions-
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………
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.
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
ANNEXURE
QUESTIONNAIRE FOR DEALERS
NAME- ………………………..
ADDRESS- …………………………………………………………………………………..
………………………………………………………………………………….
Q1. How many brands of the following you deals with?
• Vardhman
• Oswal
• Malwa
• All of above
• Other
• Readymade garments
• Both A&B
• 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
10-20 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
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
Malwa
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
Dealer meeting
All of above
Non of these
QUESTIONNAIRE
FOR CUSTOMERS
NAME ..................................... AGE................. GENDER.................
ADDRESS: .......................................................................................................................
Weekly
Monthly
Yearly
Q2. For how many years are you using Vardhman hand knitting yarn?
1 year
2 year
5 years
Lachi Packing
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
Feather
Fancy
Raising
Other
Malwa
Oswal
Other(please specify)……………………………………………………………….
Q9. Are you satisfied with the increase in price of Vardhman hand knitting yarn?
Yes
No
Q11.Any suggestions-
………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………….
Thanks for your cooperation