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SYNOPSIS 1. INTRODUCTION 2. HISTORY OF TEXTTILES 3. BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA 4. COMPANY PROFILE OF RAYMONDS TEXTILES 5.

FIRM PROFILE OF SRINIDHI SILKS AND TEXTILES 6. CONSUMER SURVEY ANALYSIS 7. SUGGESTIONS & CONCLUSIONS CONSUMER QUESTIONNAIRE ANNEXURES BIBILIOGRAPHY

CONTENTS INTRODUCTION INTRODUCTION TO THE STUDY PRODUCT AIMS AND OBJECTIVES SCOPE OF THE STUDY METHODOLOGY LIMITATIONS 1. HISTORY OF TEXTTILES HISTORY TEXTILE FABRICS THE USE OF NATIONAL FIBERS YARN AND FABRIC PRODUCTION A SLICE OF WOOLEN INDUSTRY 2. BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA TEXTILES INDUSTRY IN INDIA PROBLEMS OF COTTON TEXTILES INDUSTRY COTTON TEXTILE INDUSTRY PLANS TEXTILE POLICY RECENT TREND

3. COMPANY PROFILE HISTORY HR PRACTIOCES BRANDS PRODUCT PROFILE INTERNATIONAL BUSINESS GROUP COMPANIES INTERNATIONAL STORES

FIRM PROFILE SRINIDHI SILKS AND TEXTILES A BRIEF HISTORY CAPITAL STRUCTURE CASH BILL OR CREDIT BILL OBJECTIVES OF THE FIRM MARKETING MIX WORKING LEVELS IN THE FIRM MARKETING PROBLEMS

CONSUMER SURVEY ANALYSIS INTRODUCTION TO STUDY A BRIEF ANALYSIS SUMMARY OF FINDINGS

SUGGESTIONS & CONCLUSIONS SUGGESTIONS TO THE COMPANY CONCLUSION

ANETEXURE Consumer questionnaire Bibiliography

CHAPTER 1 INTRODUCTION

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

INTRODUCTION TO THE STUDY Marketing is a comprehensive term. It includes all resources and a set of activities necessary to direct and facilitates the flow of goods and services from producer to consumer in the process of distribution. Businessmen refer marketing as distribution process. Hum efforts and management constitute the preliminary resources in marketing. Marketing is a complex as well as composite process in a society by which the demand structure for economic goods and services is to be estimated intelligently and also anticipated or enlarged and satisfied through conception promotion exchange and physical distribution to satisfy the needs, desires and wants of the consumers or the market places. Marketing covers all business activity which is necessary for ascertaining market demand, planning, product availability, effecting transfer of ownership of product providing for their physical distribution and facilitating the entire marketing process. God created man and man created markets. Marketing has a special significance in the modern management or business and industry is one of the managerial concepts. Unless it is properly understood and put into practice in

the right use, many of the business or industrial enterprise will collapse or prove failure. As 21st century is fast approaching marketing is becoming more attractive at the state, national and international levels. In the early days production was very less at that time consumer has to reach for the product for satisfying their needs. As because of industrialization today it becomes difficult for a producer to sell his product in the market. It is because of increase in competition. The aim of modern business is to satisfy the consumers and thereby to earn profit. The main intention or aim is to provide quality products at cheaper rate with consumer with the rapidly increase in production of a wide range of products. Marketing was assumed greater importance in recent year. Thus the main object of the marketing is the creative and delivery of standard of living to society. In the modern market, consumer is the king. So a producers rate is decided by the action of consumer i.e., either buying the product or rejecting it. So producer tries hard to achieve the gain competitive efficiency over the other by adopting new technologies in production and cost reduction measures. Consumer oriented marketing points out that the primary task of business is to study needs, desires and values of the potential consumers and on the basis
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of latest and accurate knowledge of market demand enterprise must produce and offer the products which will give the desired satisfaction and service to the customers much better than the competitors. Indian marketing environment is largely described as sellers market. We experience chronic stages and scarcities particularly inconvenience or comfort goods, demand in invariably greater than supply, purchasing power of masses is very limited. Moreover 35% of our population is below poverty line. Bulk of our population resides in villages. The consumers are ignorant, illiterate, unorganized and hence they have a weak bargaining selling concept which is product oriented marketing approach. Research information as well as strategic marketing planning has very limited scope at present. A change is taken place in the marketing environment at a reasonable speed and many consumer oriented marketing companies are beginning to realize the presence or competition and buyers market. This project report is aimed at giving detailed report of marketing analysis of Raymonds Textile. From the necessary primary as well as secondary data colleted within the span of time available analysis and interpretation have been made and conclusion has down on the subject.
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This project report gives analysis of survey findings methodology adopted and observations made in the improvement of the product from the general point of view. Decision regarding marketing mix namely product, price, promotion and distribution are made on the basis of market research reports. Such reports will help to decide the different methods of distribution and promotion. It will also help to decide different prices such reports may help the marketer to adopt a particular strategy so as to get the maximum profit in the available marketing conditions. PRODUCT Raymonds Ltd., is today Indias fastest growing group. Raymonds suiting is one of the popular suiting, which is manufactured in Mumbai by Raymonds Woolen Mills, which is established by Spy group. It has more than 500 showrooms around 200 cities. This is because of the manned, skilled and dedication of the employees. It is the oldest blend with newest technology. It has extra regent lavishing wide range of textile that suit to all the group of the society. It is the name and the word in everybodys mouth. From the beginning, Raymonds has

endeavored to not just to make world-class fabrics using most advanced technologies but also to bring the culture and comfort into millions of people. Its words The Complete Man has blazed a new trial in the minds of people and has own many hearts. This is because the complete man is one when spreads love and compassion with others around him. AIMS AND OBJECTIVES The aims and objectives of this project report is as follows:

To increase marketing knowledge through preparing this project reports


and knows about marketing activities.

To know about present position and competitors of Raymonds


Suitings in Shimoga market.

To study competitive environment while marketing. To know what is the exact market at present for the product. To analyze consumer awareness of different brands of textiles in
Shimoga district.

To examine the sales performance of Raymonds in Shimoga city and


district.

To find out various problems regarding Raymonds


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To assess the market share of Raymonds in Shimoga city. To list out the factors that influence consumers buying behaviour. To evaluate the performance of marketing information system. To collect advice about Raymonds from customers.
SCOPE OF THE STUDY The study of this project report is confined to Shimoga and Hosanagar cities only. The study was conducted to know the competitive environment while marketing the textiles. The study was also intended to know the buyers attitude towards Raymonds Textiles, their frequency of purchasing various other brands of textiles, their opinion regarding the quality colour and price etc. METHODOLOGY Situation analysis should load to a clear statement of the goals and objectives of the proposed investigation. We must have estimated copy of the research and the time required conclusions and recommendations supported by necessary analysis are submitted in the form of a written report and this report must clearly and effectively printout the relationship among the data, the interpretations and the recommendations. To shape the project report, both primary and secondary data have been collected. The primary data, which is also called original data is obtained
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specifically on the project at hand. The sources of primary data are consumers, dealers, salesman and original sales records, under the collection of primary data, personal interview with structural questionnaire has been used as the survey technical for collection of data from consumers. A standard set of questions is prepared to obtain the required information points. On the other hand for the analyzing of the marketing performance of the dealer Srinidhi Silks & Textiles their sales, profits and other details have been collected from the management of the firm and staff. Here secondary data is collected from published and one from unpublished sources likes newspapers, magazines, annual report of the company. What other have learnt, written are put into print constitutes a vast reservoir of information. Our entire preliminary investigation is based on secondary data. Here 100 customers have answered the questionnaires and have helped us to draw conclusions. Some dealer of Srinidhi Silks and Textiles is personally interviewed to find out their opinion. This is a report submitted by a student of final year B.B.M., for the partial fulfillment of obtaining the B.B.M., degree. LIMITATIONS
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The main limitation is making this project report is the time factor.

The survey doesnt cover the entire Shimoga or Hosanagar cities. Much time was spent in explaining to the respondents about the real purpose of survey.

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

Some of the information like, (a) Company profile is made in brief, (b) Short information has been given relating to knowing capital by the firm.

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CHAPTER 2 HISTORY OF TEXTTILES

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

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HISTORY OF TEXTILES

HISTORY The word Textile is derived from Latin word Texture, which means To Weave, originally meant a fabric made from waver fishers. Today the term signifies any of a vast number of fabrics produced by waving, knitting, felting and other techniques, it is also refers to the enterprise that spin yarn from fisher or from synthetic materials and to the finishers and dyers of fabric. This article summarizes the development of the industry. As per the other item, the textile has its own history and origin. The history of textile has been classified into following stages:

Ancient textile Textile in the middle age Textile in the early modern times Textile in the modern times

Ancient Textile: The art of textile making began to develop in the Old Stone Age (the period before 9000 B.C.). The first textile fabric was probable crude felt, made by compressing loose clumps of fleece from wild sheep. Later prehistoric
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people discovered that they could make a course yarn by rolling plant or animal fishers between the palms of the hand. The earliest known textiles made from yarn were finishing nets. The art of wearing yarn into fabric probably developed from the art of wearing strips of materials into mats and baskets. Between 500 and 3000 B.C. people in the middle cart began to weave cloth of simple looms. By about 2000 B.C. wearing had developed in Europe, Asia and South America sprang a mesh fabric resembling knitting by 1000 B.C. Textile in the Middle Age: From the 8th century onwards the Muslims spread the techniques of cultivating cotton and off raising silk warms to Europe. As the textile trade grow landing, spinning and other process developed from household occupied to specified craft. In many European town members of the each craft formed their own guides or association, even actually, master craftsmen is the textile guides controlled textile production.

Textile in early modern times: The European Textile Industry was dominated by France, Germany and Spain in the 16th century and in Holland by the 17th century to furnish and
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knitting was widely practiced.

The first knitting machine was designed by

William Lee, a European clergyman in the 1580s pressing, filling, napping and other finishing; machines were driven by Cranks, tread mill, water wheels on wind mills. By the last 1600s the cottage, domestic or putting out system had largely replaced the guild system of producing textile. Merchants brought raw fiber and placed it in the cottage of workers were paid by the merchants but they usually supplied their own spinning wheel and loans. In the 18th century the serious of techniques was making England the leader of the textile industry. Textile in the Modern Times: In the early1800s Joseph Jacquard a French silk weaver invented the first practical machine for weaving fabrics with intricate design, such as brocade and demark. Lame making machines are developed by John Health Coat and John Cover of England. In 1814 Frances Lowell opened a first mill in America, to perform the all operation in converting raw cotton fiber into finished products.

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Later the 19th century the mercerizing process, the first synthetic dye, the first practical lumping machine to work for better wages, hour and working conditions. In the 20th century many man-made fibers were developed alone or blend they made it possible to produce, light weight durable fabrics with new texture that required less care than many fabrics made from natural fibers. Nylon the first synthetic fiber was Rayon 1940, Polyester 1946 and Spandex 1959. A number of new type of fabric were introduced after 1940, included blended fabric 1942, streath fabric in 1950. Two major finishing advances wash and wear finished for cotton in 1950s also introduced. By the 1960s American textile industry composed a many large companies engaged in all the aspect of textile production. Competition from the Asian countries with cheap labour became so danger, however that is in 1971 the United States established quotas on textile imports. In 1974 as international part of textile and appeared trade came into effect. Under term of agreement an international regulatory body seeks to reduce trade retractions without dispiriting any country textile industry.

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TEXT FIBERS Textile fibers may be classified as natural minerals, modified and man made. To achieve specific characteristics different types of fibers frequently combined. Natural fibers came from animal or plant sources, animal fibers include Alpaca hair, Camel hair, Cashmere, Spun silks etc. Plant sources include Abraca coir, cotton, flex, jute etc. Mineral fiber includes glass, asbestos and metallic fibers. Some time the metal combination with other materials. Man-made fibers included Modacrylic etc. Major fibers in the world may be classified as follows: Cotton Cotton is the world leading textile fibers, is growing many typical and temperature regions throughout the world. Cotton is white, brownish-white, yellowish-white colour. Cotton is used to innerwear and outerwear accessories and decorative materials and has great use of industrial fabrics decorative material. It may be used to make low grade cheap, cheesecloth, print cloth and lace.
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Rayon, Acetate, Nylon, Polyster, Acrylic,

Silk Rewinding the cocoon of the silk warm or larva of the Asiatic silks warm obtains silk. Bombay-movi silk fiber is lustrous, resistant and strong. It is also resistance to leaving drops ecoll and readily absorbs most dyestuff. The leading producer of the silk is China followed by Soviet Union and India etc. Wool Wool is one of the important fibers, which can be used to make warm cloth in the textile industry. From the wool we made sweaters, rugs and other items, which are protects temperature of the body.Wool may be classified as deal sheep fiber and live sheep fiber.Dear sheep fiber is inferior in all properties when compared to live sheep wool. THE USE OF NATURAL FIBERS Until the 20th century, all of the fibrous raw materials available for textile use were based on animal hair, plant or seed fibers or the product of silk warm. These are all organic and are rapidly degraded by weathering are destroyed by decomposing agents in the soil. Only a few sample of textile products have remained from pre historic crass. Cotton, flux silks and wool probably

represents the majors available to ancient civilization, although other fibrous


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materials may also have been used especially the best fibers from Hemp, Jute and sisal. The earliest known samples of yarn and fabric of any kind were found near Rolyhousea, Switzerland, were excavations unearthed bundles of flex fibers and yarn and fragments of plan wave Lenin fabric, estimated to be about 7000 years old. Woven wool fabrics may have been used as early as 4000 B.C. in Mesopotamia and wool spinning and wearing became cottage industries wherever sheep (or in the new world, the member of the Glama family) were raised. The cotton plant is indigenous to India, Egypt and the warmer regions of the America. It was in these regions that the fiber was first used to make textiles. Cotton did not achieve commercial importance in Europe until after the colonization of the new world. Silk culture remained a specialty of the Chinese from its beginning i.c. 2600 BC until the 6th century A.D. when silk warms were first raised in the Byzantine Empire. Synthetic fibers The desire to invent a fiber that resembled silk spurred the development of Rayon (1891) the first synthetic fiber and of its successors, Nylon (1939) and the various forms of polyester. Most synthetic is made by foreign, a thick
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solution of polymerized chemical through spinneret nozzles and hardening the resulting filament in a chemical both. Current position of synthetic fibers The synthetic fiber industry is a true victim of the lop sided duty structure imposed by the government. The main concerns of this industry are high excise duties, irrational customs and import duties, where duty on input and capital goods is higher than that on the finished product and high duty differentials. All these factors have dealt a severe blow to the competitiveness of the industry. The lop-sided duty structure make imports cheaper, thereby carding the bottoming of domestic companies in the case of nylon tire cord fabric and filament yarn. The synthetic fiber industry consists of your main sectors viz. The polyester filament yarn (PFY) Polyester staple fiber (PSF) Nylon filament yarn (NFY) Nylon industrial / nylon tire cord fabric (NIC) The key issue for the industry are

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There will be shortage of cotton in India this year to the extent of 20-25 lakh hales. Last years cotton production was at 170 lakh sales, out of which 60 lakh sales were exported, leaving 110 lakh sales for domestic consumption, with cotton production likely at 145 lakh sales this year, domestic availability will be only 85 lakh sales, a shortfall of 23 percent from last years 110 lakh sales. However appropriate policies are not in place to promote synthetic fiber for filling this gap in domestic consumption as well as for export. Excise duty is a burden on consumers, especially considering the fact that over 70% of synthetic fibers are consumed by the middle and lower income strata of society. Competitiveness of the synthetic fiber industry is severely affected by the following.

Negative protection as a consequence of high power rate, interest, rigid labour policy, poor infrastructure etc.

Irrational custom duty structures where duty on inputs and capital goods is far higher than that of the finished products.

Lakhs of a level playing field because of excise duty on synthetic fibers being higher than that on cotton.

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Cheap import of textile fiber from Cina towards legal and illegal channel. In case of nylon tire cord fabric, Chinese products are quoting 10 to 15 percent lower prices than those rock-bottom prices quoted by producer in Thailand, Indonesia etc., consequent to the South East Asia Crisis.

Yarn and Fabric Production Yarn Production Silk is the only natural filament fiber and it usually requires only the twisting together of several filaments to make a yarn. The other natural fibers must be straightened and laid parallel by combining then must drawn out into a continuous yarn by spinning. The spindle in the earliest spinning wheel (which first appeared in Europe about 1400) is its earliest mechanization. It was only during the last 88th century, with the invention (1767) of the spinning Jenny, a machine that operated a number of spindles at one time, that yarn could be produced in appreciable volume. Richard Arkwrights spinning frame (1769) and Samuels Cromptons Mule (1779) increased yarn production to the paint at which one market could operate 200 spindles at one time. Modern spinning machine are based on early 19th century innovation, primarily the ring spinning

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century innovation primarily the ring spinning frame invented by the American John Sharp in 1928.

Fabric Production

The handloom in many variations was for many centuries the basic weaving instrument; mechanical improvements began to be developed in ancient times. The needle to which alternate innovation, the foot treadle, which could operate one or a series of a needles, followed shortly foot powered looms with several sets of needles appeared in Europe during the 13th century combined with the frame, mounted battles which was used to heat the weft or filling yarns, into place such looms were the principal types used in Europe for many years. The first steps in the creation of the modern loom were the invention by John Kay in 1733 of the flying shuttle which allowed the weaver to send the shuttle across the width of the loom automatically. Edmund Cartwright devised the first steam-powered loom and with Hames Walt built (1785) the first successfully automated pattern weaving. Most modern looms are essentially high-speed versions of the early power looms, now made of steel instead of wool and operating almost entirely automatically.
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Dyeing, Printing and Finishing

Techniques of fabric yarn dyeing have increased in complexity, essentially since the 19th century of coal-tar dye and the 20th century development of synthetic fibers. Fabric printing came late to Europe in 18th century and was at first confine principally to black printing. The silkscreen printing was developed for fabrics only during the mid 1980s. Roller printing using engraver copper rolls was first used in England in 1785. Followed in the same year by improvement that allowed rolled printing in six colors, all in perfect register. Modern roller fabric printed in 16 or more colors.
The Industry

Until the last years of the 18th century, the production of textiles was a handicraft, practiced in small units by skilled artisans and by cottage spinners and weavers. Large and economically vital cloth industries had emerged in Britain, Belgium and other European countries, with the exception of GOBELIN tapestry marks in Paris however few factories in the contemporary sense existed.

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The technical advances achieved during the 1700s particularly in Britain, were the impetus not only for the establishment of the modern textile industry, but for the factory and the Industrial Revolution as a while. Cloth has been made by American colonists since the building of a cloth mill in Massachusetts in 1638. The era of powered textile manufacturing was however inaugurated by an English men, Samuel Staler a former mill supervisor in England rebuilt from memory a spinning frame in providence, registered in 1760 and later founded several other mills. Three years later Eli Whitney introduced his cotton gin and the speed with which it could clean harvest cotton created a new demand for cotton fabrics. Factories sprang-up throughout the eastern United States, particularly in New England. The perfection of practical sewing machines during the mid 19th century increased the consumption of fabrics and the American industry reached competition states European counterparts. After World-War I the textile industry underwent significant changes throughout the World. Continuing a trend that had begun years earlier, much of the US industry moved south from New England. New factories for the production of synthetic fiber were built almost exclusively in the South-Eastern and Mid-Atlantic states. The cotton spinning and weaving mills that had populated factory towns in Massachusetts and New Hampshire during the 19th
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century, closed one after another as the industry moved closed to energy sources and to lower cost labour. At the same time, textile manufacturing expended overseas, large textile establishment in China, Taiwan, Japan and South Korea become competitive with American and European industry. Restrictive quarter and tariff frequently threatened by countries that deem their industries threatened by foreign production. To counter the lower price of the foreign textiles, the US industry is becoming almost entirely automated. Computer controlled technology has reduced labour needs and improved quality as well as allowing manufacturers to make quick changes in the types of textile they produce in response to changing consumer preferences. 5. A Slice of Woolen Industry Like most textile industry woolen and worsted industry also grossly under performed the market, further Indian has imported both the finer apparel wool, the key raw material and as well as the woolen industry. Industry segments Woolen and worsted are two basic segments of the industry. The two differs in the spinning technology involved. Worsted systems use fine long stapled wool, which is comb worthy. This is normally used for suiting knitwear
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and shawls, woolen systems on the other hand utilize medium and coarse wool, not normally comb worthy. This yarn then produced is also somewhat coarser. In either case the yarn can be pure wool or blended with other fibers like polyester and acrylic.

Despite high import content, the industry continues to be a net forex earner with export of Rs.3200 crore against import of Rs.550 crore. In the long run, the demand for products from this industry is expected to grow at a higher rate particularly in exports, which is likely to triple by year 2005. Markets, Domestic and Exports Exports are 0ne sector where industry is making goods bucks. With European countries closing down their textile units. The production is shifting to developing countries like India and China, with increasing demand from cold countries the potential for industry is improving. Evidently, in the year 1996-1997, the wasted fabrics exports rose by 47% while woolen knitwear by 85%. Besides these made ups and ready made garments exports have also been witnessing a good growth in the current fiscal as well. Our country is acting more as a converier of imported wool into different woolen products and their after exporting them. Nonetheless it is also
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doing this creditably with substantial value addition right up to garments are still limited to unorganized sectors. This leads to problems like variable quality and delivery performance managing the huge export potential. The entire woolen and wasted industry can be divided into apparel, nonapparel, non-apparel segments and shoddy sector. Apparel segments primarily comprises spinning yarn which is thereafter converted to fabrics, knitwear, readymade goods and made ups like shawls, scarps, knit wear etc., of the readymade goods, shawls and knit wear are largely dominated by unorganized. Currently knitwear is one of the largest forex earners in the industry, growing at a fast peace. Despite this it is largely unorganized concentrated largely in India. In apparel segment, the industry seems to have grown at a compound annual growth rate of 6% in production through rarely growth has been more in fabrics. In 1996-97 the production of worsted and woolen fabrics rose by about 9%. In the yarn segment, worsted yarn seems to be placed better.

6. Exports of Textile There are hardly any raw material imports as later in abundantly produced in our country. The export of finished cotton produced in our country. The export of finished cotton products shows better profits. Today here are over 150 cotton yarn exporters; these would however gain only marginally as some
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of the benefit of depreciation has to be passed on the buyers to remain competitive. Those, which are engaged in further value addition through specialized yarn or into fabrics, could succeed in keeping a higher realization as profits. The leading cotton textile exporters include Vardhaman group, Arvind mill, GTN mills, Precat etc., Arvind mills currently exports 42% of its turnover, Vardhaman mills exports 26% of its turnover, while companies like marol overseas and GTN are 100% export oriented units. However some other segment of textile like woolen would be affected adversely as they import substantial quantity of their raw materials which is not available in India. The effect would be neglected only to the extent the company is exporting its finished products. Companies like Raymonds are importing almost 50% of their total raw materials requirements. Other companies like to be effected would include Birla VXL, Shri Dinesh mills etc.
Top gainers and losers by textile industry

A. Gainers Top 500 Ranks 358 37 210 43 158


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Textiles Ashima syntax Arvind mills Himatsingka seide Raymond Modern syntax

% in market capital 15.66 0.52 -0.62 -4.18 -18.71

B. Losers Top 500 Ranks 361 342 234 355 490 Textiles Sri Krishna Polyester Mafatlal Indus Morarjee Goculdas Wool worth Garden silk mills % in market capital -36.95 -42.74 -45.03 -50.49 -50.99

In India almost 35% of the export income are covered by textile. There are 16 big exporting companies in our country. The average value per company comes around 264.12 cores. The total value of textile constitutes about Rs.4,225.89 cores. The market value growth compared to other industrial is about 14.44% the textile includes a market capital of 1.70% in 1997, and in 1996, it included 1.91% the total sales considering all the other industries comes around 3,494.07%. there is a sales growth of 19.95%. the total net profit of textile constitutes about 245.86 cores and net profit growth compared to last year is 15.41%.
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Cotton Yarn -Vast Scope for Export Cotton yarn production in India has been increasing at an average of 3 percent over the last decade. In 1995 the output was about 1600 million kg. The average count spun has increased from about 25 in 1961 to about 34 in 1995. the indicates a change in product-mix on favor of finer textiles and high value items. Assuming the present rate of increase the project yarn production by 2002 A.D. is about 2,000 million kg. With the setting up of a number of man-made fiber units and easier availability of the fiber one can expect a higher rate during the coming years. -High Growth Rate The other factor that favor a high growth rate are : the comparatively low share of man-made fiber at 25% in the total yarn production, declining price disparity between man-made fiber and cotton, restricted availability of cotton and increasing use of blended fabrics by lower income group. Assuming a growth rate of 12% a year, the output of blended yarn in 200 A.D may be around 600 million Kg, almost a third of cotton yarn production.

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The project production of 2002 A.D. is 300 million Kg. Thus, the overall production of yarn can be expected to increase by about 30% from 2,090 million kg in 1994-95 to 2,775 million Kg in 2001-2002. however, with a share of 70% for yarn and over 75% for the fiber. - Rising Global Demands Export of cotton yarn have traditionally been regulated within a quantitative ceiling fixed on a year to year basis by the union government with a view to checking undue price rise and ensuring adequate supplies to weavers in the decentralized handloom and power loom sectors. Consequently, yarn exports have been fluctuating widely from year to year from about 40 million Kg in 1969-70 they have declined steadily to an average of 12 million half of the eighties. Since 1985, there has been a steady and appreciate increase expected for a fall in 1988-89. During 1995, these touched an all time high of 240 million Kg. 14% of production. Indias share of world cotton yarn exports is however small at about oneeighth. Global trade in yarn had doubled the ten years ending 1991. more and more countries are importing are importing cotton yarn for local production. The global demand is now over 3000 million kg in 2002 AD. Many importers

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will prefer to buy cotton yarn from countries such as India, which have a vast raw material base. Thus as the second largest producer of cotton yarn and fourth largest producer of cotton, India will have a larger share of the yarn trade. Even a modest share of 20% of the world yarn market would mean an export potential of 700 million kg by 2002 AD. However, two issues have to be addressed before if huge yarn exports are feasible. First, it have to be considered whether large exports will affect the internal availability and price of yarn for different users. Second, whether the mills can compete successfully in the international market with some of the leading countries such as China, Taiwan, Egypt, Turkey and Brazil. -Local Market Benefit Too with the overall yarn production projected at 2,750 million Kg in 2002 AD, exports of the order of 600 million kg will still account for only a little over one fifth of the total and about 30% of cotton yarn output. As yarn output is increasing at a faster pace (5%), largely due to increase in spindle age and partly on account of modernization, that population growth (2%) and there is idle capacity of 15% spindles, even allowing for a possible increase in per

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capital consumption, there will be no difficulty in meeting the internal demand for yarn from handlooms, power looms and hosiery in full. It should be mentioned here that for the quality of an used by the decentralized sector, yarn, CSP a key parameter of quality, has increased by 15% to 25% over the past decade for all counts. In other words, exports have indirectly contributed towards an improvement in the quality of yarn used indigenously both by the decentralized and the organized sectors of the textile industry. -High Quality standard In order to complete in the international market, the two primary requirements are quality and cost. As for as quality is concerned, spinning mills has the necessary technical know-how and expertise and sophisticated machinery to produce high quality yarns. Under the ministry of textile a joint projects high quality yarns for exports was undertaken by the textile research associations and the finding of this study have been disseminated to all mills. -Major Cost Factors as for cost of production, cotton accounts for about 60% ranging from 50% in fine counts to 70% in coarse counts. With a net profit margin of only 3% on sales, cotton cost plays a crucial role in mills profitably.
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A recent study by SITRA in 84 select spinning mills revealed that during 1990-95. the net profit amounted only to 2% of sales. Mills with modern machinery have high productivity, produce high value product and earn a net profit of 10% on exports. As against this, in mills with fairly modern machinery but largely catering to the domestic market, the net profit was only 5%. Cotton costs generally ruled at high level relative to yarn prices during the last four years, which largely explains the comparatively low new profit of 2% registered by the mills. Thus it is essential that mills plan their cotton purchases at competitive prices. As for conversion costs, power is the largest component accounting for about 28% of the total. As spindle utilization is a key parameter in the production economics of spinning mills, almost all mills have generators to activate spindles during the frequent power cut. The cost of power in India has been increasing at 12% annually that is doubling every sex years, as against 7 to 8% for other items and 10% for wages. Though power costs in India are not high when compared worth other yarn exporting countries, there is a need to ensure that adequate power is made available particularly to export mills at reasonable stable cost.

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Among other cost, interest is quite sizable and has increased appreciably in recent years to over five percent of the yarn cost. There is thus as strong case for mills to seek some concession in interest rates. Cotton needs Overall, India has a vast potential for yarn export and has the necessary infrastructure to step up exports to 600 million kg by the turn of the century. The increased need for cotton 2.5 million bales can be largely met by improving the crop yield.

There are already encouraging signs from many cotton growing areas of better yields. The essential pre requisites to setup exports are to make available to mills cotton of needed quality at competitive costs, uninterrupted power supply and some concession in interest rates. For spinning mills to stay competitive in todays context of globalization, modernization plans should be streamed, high labour and machine productivity achieved consistent and high yarn quality maintained energy and other input costs controlled and professionalism in management ensured.

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CHAPTER 3 BRIEF HISTORY OF TEXTILES INDUSTRY IN INDIA

TEXTILES INDUSTRY IN INDIA PROBLEMS OF COTTON TEXTILES INDUSTRY COTTON TEXTILE INDUSTRY PLANS TEXTILE POLICY RECENT TREND

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TEXTILE INDUSTRY IN INDIA Cotton, a shrubby plant widely cultivated to produce two major raw products, a fabric and a seed from the fibers are made fabrics and yarns and from the seed are obtained an oil and other by-product for use in the manufacture of edible and industrial product. Popularly, the term cotton is applied both to the plant crop and to the fibers. Scientifically, however, cotton refuse only to the fibers, which is elongated epidermal cell of the seed coat of certain species of the genus gossipier. Although the plant itself has little or no value industrially, its fibers and seed and thereby product add billions of dollars to world income. The leading cotton producing countries of the world are Soviet Union, United States, China, India, brazil, turkey, Mexico and the Sudan. There is important but smaller, production is Eli Salvador, Guatemala, Handiness and Nicaragua in Central America in Argentina, Colombia, Ecuador, Paraguay, Spain, Cameroon, the Central African Empire, Chad, Zaire, Kenya, Malawi, Morongo, Mozambielle, Nigeria,Rhodiria, the Republic of South Africa, Tanzania and Ciganda M. Africa, in Afghanistan, Burma, Iran, Iraq Israel, Syria and Thailand in Asia and in Australia. History

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Recent development in cotton production and use sometimes over power its ancient past. The modern machine age had its beginnings in the 18th century. During the past 200 years, the history of western Europe, the orient and America has been largely shaped by the abilities of countries to produce and process the cotton fibers and by their need for using it. Cotton becomes King Cotton. When Eli Whitney patented the gin in 1794 and made it possible to separate tint from seed a hundred times faster than before with mechanization. Cotton demand increased until world production reached its peak just before world Warier. The history of cotton, of course is much order and more detailed than such a sketchy review might indicate. No one knows exactly when man first began to use cotton, although there is strong evidence that he at vast 5000 years ago. Bits of cotton string and fabric dating from 3000 B.C. who found in 1929 in Pakistan and these finds confirmed the dyeing of fabric was practiced even then, Herodotus the Greek historian mentioned that cotton of India in the first century B.C. and Alexander the great usually receives credit for first bringing cotton, which be called vegetable wool, into Europe and then into Spain, where it carried early in the 8th century and was used for sails and other things. Weaving spread from Spain into Netherlands, where the furnish made cotton by the middle of the 14th century. Columbus found cotton when he arrived in the
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New World, but long before 1492 cotton has been growing in the southwestern part of what is now the United States and among civilizations of Coastal Peru. Cottonseeds are first planted in Florida by the Spanish in 1556 and by English colonist in the Virginia in 1606. England first received cotton in the term of Indian Fabrics and cotton immediately become competitive with native wool. Creating a contest that lasted until the beginning of 19th century when cotton won. Future of Cotton The position of cotton is United States remains uncertain as to the future. In 1950, its price was artificial is that it was supported at the pasty price of 30 cents per pound and was thus greatly handicapped in its attempts to obtain a large proportion of the export market than had been its lot in the past. While apparently favorable to producers, created as artificial condition based on subsidized domestic market, which did not protect the platter support, the United States had accumulated a carry excess of 8 millions bales. By the end of 1965, the carry over was in excess of 14 million bales. Cotton Textiles Industry The real foundation to the cotton industry was in 1854, when a cotton textile mill was set in Bombay (even though as early as 1818 a mill had been
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setup in Calcutta). Later many more mills were started not only in Bombay but also in other centers such as Ahmedabad, Sholapur, Nagpur, and etc. important centers of Chennai in Tamilnadu, Nagpur, Sholapur and Bombay in Maharashtra, Ahmadabad in Gujarat, Kanpur in Uttar Pradesh and in Delhi. The present position of cotton textile industry is the oldest and largest single industry in the country. It provides income to the handloom weaver in the country numbering well over 4 million persons and thus serves as a source of employment for millions of handloom weaves. Besides provides direct employment to nearly a million workers. There were over 800 textile mills in the country which produced over 1260 million kgs. Of yarn and over 4140 meters of cloth in 1987. India is the 3rd largest producers of cotton yearn and cloth in the world. In the world export market, India is the second only to Japan and contributes 10% to 15% of world export of cotton cloth. The industry was localized Bombay in Maharashtra state up to 1920. Bombay enjoyed suitable climate for spinning and weaving. Besides it could get abundant raw cotton from the well known cotton soil of Maharashtra, Bombay was also a good port and was used to export cotton yarn to Britain, Japan and other countries. In fact, the cotton spinning and wearing industry has been a traditional industry in India. Indian cloths are famous all over the world even during 17th century mainly to supply cotton yarn to China and Japan.
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Later, they started providing yarn for the home market. In the course of time however, Bombay lost its previous position to other regions, the basic reason for this fact was the nature of market for cotton cloth, and cotton cloth was demanded in all part of the country. Problems of Cotton Textile Industry The cotton textile industry, no doubt made much progress in the last 100 years or more of its existence, but the industry is currently going through a crisis. The main problems of the industry are summarized under the following heads: a. Replacement of Plant and Machinery Indian cottage textile industry has been working neither proper replacement nor maintenance of machinery for a long time. During world-warII replacement of machinery and procurement of spare parts was difficult in case of most textile mills, machinery is obsolete in design and completely worn-out. According to one estimate, about 90% of the machinery in cotton textile mills were old and should be separated. Those mills, which neglected the modernization, have become side. Due to this, the cloth produced is substandard and costly and therefore India has been loosing its customers abroad. It has resulted in loss of reputation and badly needed foreign exchange.
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b. Existence of Inefficient and uneconomic units There are existences to a very large number of inefficient and uneconomic mills. One estimate printed out that nearly 30% of the textile mills in the country are inefficient and uneconomical. A number of them have become sick and have been taken over by the government. Besides these clearly inefficient are uneconomical units, many others are working only at a marginal level of efficiency. Some cotton mills are doing extremely well, but the profitability as well as productivity of the industry as a whole or seriously affected by the existence of inefficient and uneconomic units. c. Dimension Productivity and High cost of Production As textile mills are working with old, worn-out and depreciated machinery and due to the inefficiency of many mills, the productivity of labour is low and cost of production is high. This is a serious problem, which the industry is facing. Since, both internal and external markets are affected adversely by high prices. The method of taking this problem would be:

Replacement and renovation of old machinery Closing down of inefficient and uneconomical units Measures to improve the quality of cloth

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d. Inadequate supply of Raw Materials The cotton textile industries face the problem of building up a regular supply of its raw material i.e., raw cotton in adequate quality. Despite the importance of the industry and the long period of its growth the position of raw cotton has remained very uncertain and unstable. This has been particularly, so in case of fine quality of cotton known as long stable cotton. Even this year there is expected to be short fall in the output of cotton by about 75 lakhs bless against the expectation of 122 lakhs bales, set by the cotton advisory board in December 1990. e. Power Cut and Fuel Shortage There had been unprecedented power cut sometimes up to 75% almost throughout the country since middle of 1970. The shortage of fuel oil, resulting from world-wide oil. Crisis, load shedding, substantial increase in electric power rate and heavy rise in the prices of dyes by the textile industry. All these have lead to high cost of production. f. Heavy Excise Duties and Government Control The government has imposed heavy excise duties, which have raised the price of cotton cloth produced mills. The government refuses to lower the tax. What was worse was that the government had lower level of excise duties on
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cloth produced by handlooms. This gave a price advantage to power loom as against the mill. Besides the cotton textile industry has suffered had because of government control of price of cloth, distribution of yarn, pattern of production etc. at one time serious problem of cotton mill industry was with regard to Controlled Cloth meant for poor people. Before 1974, mills were asked to produce 400ml meters of such cloth annually and after April 1974 this was raise to 800ml meters. The industry was loosing heavy has the price of raw cotton were higher than the stamped price of controlled cloth. Even the planning commission convinced that a major factor for the sickness of the industry was the compulsion on mills to produce some quality of controlled cloth. It was only after 1978 that the responsibility of producing controlled cloth was taken away from the private mill sector. g. Completion from decentralized Area In the last 30 years the mill sector is facing stiff competition from power loom commonly known as the decentralized sector. The government

encouraged this sector by charging lower level of excise duty (on the ground the power looms are small-scale units) permitted them to have lower of wages etc. Naturally the cloth provided by the powerlooms small scale could outsell cloth produced by organized sector of the industry. This unfair competition from the

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decentralized sector was the cause for the sickness of a number of mills, which were closed throwing lacks of workers out the employement. The government of India set the National Textile Corporation(NTC) in April 1968 to take over or supervise the functioning of sick mills. The NTC is now managing 125 mils some of which are still running under loss. 3. The Government and New Textile Policy The government of India has always been deeply interested in removing the problems and difficulties of cotton textile industry even though some of the major problems of the industry were created by wrong policy followed by the government. The government has setup the Cotton Textile Corporation to produce raw cotton and disteribute it in a equitable manner, among all the mills in the country. The government has also included all the public mills

tomodernize their equipments to provide cheap finance to textile mills to modernize their equipments. Finally the government has been taking over textile mills to modernize as and when they feel sick, so that workers in these mills might be assured of employment. In fact in June 1985 the government announced a new textile policy with a view to:Maximize the production of cloth of acceptable quality at a reasonable rate. Protect employment and
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Promote export potential of the industry Important features of new textile policy are summarized below:Organized and decentralized sector of the industry The existing system of the discrimination in excise duties in favour of the decentralized sector as against the organized mills sector would be given up. Similarly the other facilities provided to powerlooms in the unorganized sectors would be abolished and all powerlooms would be treated at par and allowed to compete on the basis of their inherent strength and capabilities. -yarn Exports Third cotton exports from country should be given a further boost. The government has announced a 3-year cotton yarn export policy, which in a large measure gives confidence to the foreign and regular supply of cotton yarn from this country. A cash compensatory support of 8% has also been granted by the government on cotton yarn export. The measure has been reasonable for the country. The potential for cotton yarn in international market is vast. Pakistan alone exports 150 million kgs of cotton yarn in a year where as for a large country like India producing 1257 million kgs of cotton yarn. Our export target of 40 million kgs is hardly 3%. -Modernization
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There are no true opinions about the need to modernize the industry and reduce the gap in its development between our technology and the techniques now prevailing in the western and far eastern countries. Modernization

however, calls for major outlays on new machinery, which are beyond this improvised industry. The government has created Rs.7.5 crore-modernization fund scheme, but it fails short or expectations of the industries for one thing, the interest on short loan under the scheme continues to be high at 11.5%. The special loans to wards promoters contribution under the scheme is available only to certain category of mills. Further, unless the accelearated pace will not occur. While the good units will modernized the marginal units will to be able to do so and consequently they may side into the sick list. The financial institution should therefore not only reduce the interest rate but also allow a longer repayment period 10 years. Considerations should also be given by financial institutions to fund 100% of the modernization cost. -Sickness in the Industry Sickness in the industry has become endemic as can be seen from the increasing number of units falling sick. Sickness in textile industry has far reaching implications as it can available installed capacity and create social and political tensions, which our country cannot offer. -Management Techniques
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The textile industry today is a multi fiber and multi purpose one. This has created management problems, which are beyond the capacity of a single mans traditional wisdom. However clever and experienced he may be further more with the unpredictable movement in price of cotton, various fibers and filament yarns, it is not easy to decide at any given moment which particular raw material blend of product is likely to bring maximum returns and minimum cost. In the changing situation, the complicated problems can be tackled with some degree of success only if the management is alert and adopt more modern techniques. 4. Cotton Textile Industry Under Plans

First Plan The program of development formulated for the cotton textile industry in

the first plan envisaged a modest expansion of the industry, particularly in the spinning section through the establishment of new units and expansion of existing uneconomic units. New units were expected to come into existence with a total installed capacity of about 3,50,000 spindles. The addition of these units was to raise the number of spindle from 1,09,42,241 at the end of 1950-51 to 1,12,92,241 number of spindles in 1995-95. further, the expansion of some of the 150 units of uneconomic size that were in existence at the commencement of plan period was expected to add another 50,000 spindles. A program of fuller
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utilization of the existing capacity both in the mill and handlooms sector of the industry was visualized in the plan. The plan load down targets of production for the yarn and mill cloth of 1,640 million and 4,700 yards respectively to the achieved in 1955-56 as against corresponding figures of 1,179 million and 3,718 million yards in 195051. It was envisaged that 3.7 million sales of domestic of cotton would be consumed by mill sector in 1955-56. Import throughout the period of plan were expected to be order of 1.2 million bales per annum. Taking into account the unit are expansion in existing units effected during the plan period there were on January 1856. 121 spinning mills and 291 composite mill with a spindlage of 1,20,51,209 and loomage of 2,02,901. the increase in the spindlage and loomage during the plan period has been 11,08,968 and 8,490 respectively and were in excess of the targets was partly due to the expansion of some uneconomic units and the conversion of some of the purely spinning mills into composite mills on the basis of approval given for spindlage and loomage capacity under the past expansion scheme. The output of mill yarn in 1955 was 1,630 million lbs and the target for the plan was achieved. In the handloom sector also the production increase steadily the production during 1955-56 was

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

Second Plan The overall cloth target including the production from the

decentralization sector was envisaged at 8,500 million yards in 1960-61 and the output of yarn was expected to increase from 1,630 million lbs to 1,955 million lbs. The total requirement was calculated on the basis of an estimated per capita requirements of 18.4 yards and exports of the order of 100 million yards per yarn. The production of cloth and yarn during the period under review as below. Year 1955 1956 1957 1958 1959 1960 Mill Rate 5094 5307 5317 4925 4920 548 Production of cloth Production Handloom and powerloom of yarn (million yards) (million lbs) 1753 1630 1787 1671 1946 1700 2126 1685 2258 1723 2195 1737

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

the total demand of cloth was put at 8,450 million yards. The export target for cloth was envisaged at 850 million yards. Out of target of 9,300 million yards
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of cotton piece goods, the decentralized sector was allotted 3,000 million yards and the million sector 5,000 yards as against the current level of the output and the estimated effective capacity of about 5,000 million yards. To achieve the additional production of 800 million yards in the million sector, it was expected that about 25,000 automatic looms would be installed during 3rd plan. As a result of these developments the consumption of cloth per capita was likely to go to 17.2 yards by 1965-66.

The progress made by cotton textile industry during the period of 1951 to 1968 (july) is shown in the tables below: Progress of Cotton Textile Industry (1951-68) Year 1951 1968 ( july )
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No. of Spinning Mills 103 350

Spindles Installed 1843 5194

No. of Composite Mills 275 200

Spindles Installed 9156 12110

Looms Installed 195 207

Total No. of Spindles 10,999 17,308

Progress made in the production of cloth Decentralised Total Sector 1951 3727 1013 4740 1956 4852 1663 6515 1961 4701 2372 7073 1966 4239 3097 7336 1967 4097 3179 7279 The third plan achievement of cloth and yarn production fell considerably short of the target, the shortfall was more pronounced in the case of mill made cloth. While the total production cloth during 1955-67 increased by one and half times, the production in decentralized sector almost triple. The mill sector has remained mostly stagnant after 1956.

Year

Mills

Fourth Plan

Production

of

cotton textiles during 4th plan(cloth in million meters/yarn in million kgs.) Sector Mill sector Decentralised Total cloth (A+B) Cotton yarn Mill sector The failure of achieve of 4 plans target for cotton production and the extensive power shortage of a large magnitude were two most important causes responsible for short fall in the production of both cotton yard and cloth during 1973.
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1969 4192 3561 7753 0962

1970 4156 3692 7848 0965

1971 3960 3396 7356 0882

1973 4244 3784 8028 0972

1974 4169 3604 7775 0998

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

to be stepped unto 10,000 million meters by 1978-79, in accordance with the policy of encouraging the decentralized sector, a significance share of additional production during 5th plan was allocated to this sector. The contribution of each of these sectors in the overall production of 10,000 million meters was envisaged as follows: Mills Handlooms Power looms 5200 million meters 3000 million meters 1800 million meters

In order that the requirements of yarn for decentralised sector were adequately met the spinning capacity in the mill sector would be expanded so as to provide a marketable surplus of 580 million Kgs of yarn by 1978 79.

Recent trend The growth of production in the cotton textile industry in recent years is given below. Decentralized sector

Year
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Mill sector

Total

1973 1974 1975 1976

4083 4450 4979 4161

3863 3818 4001 4238

7946 8268 8980 8399

From the above it may state that the cotton textile industry event the year 1976 has not shown any encouraging trends. Anticipated production of total cloth in 1976 77 was put as 8399 million meters of cloth by 1978 79 with improving standard of living, it was expected that the consumption of cotton cloth in our country would improve. But it has actually fallen. In 1964, the per capita consumption of cloth in this country was 15.22 meters, which has fell to the level of 12.6 meters in 1975 76 and further to 11.4 meters in 1976 77. Increasing competition in the World Market Another important problem facing cotton textile industry is the increasing competition in world market. India, which was an important importer of cotton textile both from U.K. and Japan, became an exporting country for cotton fabrics during Second world war. High hopes were held regarding the

maintenance of their exports and at the time of the Buxton conference. India was allotted an export quota of 100 million yards. But of late, the industry has been facing competition in International markets from Japan, Hong Kong, China and USSR and some fast European countries. Consequently our exports had an erratic trend till 1959 and they declined in 1960 and 1961. As against
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export target of 1000 million ears of cloth envisaged in the second plan the actual exports could not exceed 720 million yards. The low level of exports in 1958 was apparently due to the world wide recession in that year as well as intensified foreign competition, while the low level in 1960 was mainly due to the short fall in the cotton crop during the 1959 60 season and consequent increasing internal prices of indigenous cotton and cotton textiles. During third plan period also the export performance was not impressive. It fluctuated widely and the performance in the recent years was much lower when compared to 1960. It will be worthwhile to note that is a slowly of exports also moved down. During 1965 and 1969, it fell from 20.40 U.S. cents, while the price of cotton moved up by about 26%. The below table shows the exports of cotton by India unto the beginning of fourth plan.

Quantity Mills made Handloom Year 1960 61 1961 62 1962 63 The factors are:
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Values Rs. Crore Mill made 83.1 74.3 62.4 Handloom 7.5 13.1 7.3 Total 90.6 87.4 69.7

sq. meters million 602 513 410

meters million 26 40 27

The severe competition offered by the country such as Japan, Hong Kong and Pakistan. The growth of local textile production in some of our traditional markets in Africa and South East Asia. The imposition restriction in Western Europe and North America. The rise of synthetic fiber industry as a keen competition to the cotton textile industry. As for as local hindrances are concerned it may be mentioned that periodic difficulties in respect of the availability of raw cotton and inadequate attention to modernisation or the raising of productivity are accentuating the export problem of our textile industry. The economic and scientific research foundation in its findings points out that, inspite of the significant changes the machinery installed in the past few years, there continues a technological gap of 4 to 5 years in the best mills a compared to their counter parts abroad. If this is the case with the best mills, the position in the other mills can well be imagined. Thanks to the impressive increase in export of yarn and approval made possible by the aggressive sales derive through build deals and more effective propaganda by the cotton textile export promotion council and more thoughtful dispensation or export assistance, exports of mill make cotton textile from
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India set a new record in 1969-70, despite the lower earnings at Rs.111.53 crores represented an increase of little over 14% over the 1968-69 figure of Rs.97.52 crores and of 9% over previous best Rs.21 lakhs. Total exports of cotton fabrics reached a higher level of Rs.254 crores in 1976-77 as against Rs.161 crores in 1975, Rs.158 crores in 1974 and Rs.69.7 crores in 1969. Should India come Clothiers to the World or its textiles dump? The textile industry is Indias largest foreign exchange earner and our largest employer in the industrial sector. We have the largest and arguably the best spinning industry in the world. Our cotton yarn commands excellent brand equity in the international market where it now holds a share of over 25%. In fabrics, our mill industry contributes nearly 50% of our exports, despite accounting for less than 5% of the production. Yet 264 spinning mills in the organised sector and 117 composite mills are currently lying closed. What ails Indian Textiles? The on going process of phasing out bilateral textile quotas has through up tremendous challenges for our textile industry in the international markets. Our exports are under pressue and already showing signs of faltering. Removal of restrictions on imports into India has already led to a 40% increase in textile imports this year. And with 300 more textile items becoming freely

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importable from April this year. The situation will only deteriorate in the future. This is obviously the time to concentrate our energies on upgrading the competitiveness of our textile industry in order to help it convert the challenges in the domestic and international market into opportuities. And what are government policies doing to our textile indstry? In cotton yarn, inefficient units that produce low value, low quality goods at exorbitant cost are given duty exemption on the grounds that they are in the small scale sector. This inspite of clear evidence that a viable spinning unit can just not be establish within the investment limits stipulated for SSI units. Organised spinning mills suffer excise burden of 9.2% and are crumbling under the weight. 120 large mills have closed down since the excise increase. Yet, the government has collected less excise duty than in 1995 -96, when the rate was half, statistics prove that 56% of duty is evaded. So the 9.2% duty is either driving mills to closure or to evasion. The textile industry does not need only subsidies just give it a level playing field: Exempt cotton yarn from payment of excise duty for a period of 3 years using unveiled portion of interest subsidy of technology upgradation fund.
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Withdraw excise exemption to SSI spinners. Charge uniform duty of 8% on all fabric processors and restrict exemption only to hand processor not using any power operated machines. Withdraw hank yarn obligation and handloom reservation. Introduce uninterrupted modest chain. Pre And Post WTO Era WTO is becoming a bugbear for Indian industry in general and the textile industry in particular. It is now for the government to make it easy for the textile industry to compete with transnational players. After the lifting of

quantitative quota restrictions, the industry will flounder if the government remains a mute spectator. The conversion of the General Agreement of Tariffs and Trade (GATT) into the World Trade Organisations (WTO) in 1985 and signing of the most ambitious though complex agreement through its Uruguay Round gave a new dimension to international trade. Also there was a significant impact on Indias foreign trade policy. During the talks, the WTO bound states agreed to extend the relaxation to five other non traditional sectors like agriculture, textile & clothing, trade relaxed investment measures (TRIMs), trade related intellectural property rights (TRIPs) and trade in services.
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The agreement on textiles & clothing (ATC) makes it obligatory on the part of all member countries to dismantle their Quantitative Restrictions (QRs) being extended to this sector in the respective countries and phase out all quotas existed and phase out all quotas existed under the Multi Fiber Agreement (MFA) by January 1, 2005. The worst effect of lifting QRs will be felt mostly by the developing countries including India wherein this industry has been under constant government regulation for more than four decades (since year 1955). Till 1985, government policies in this sector were being dictated with the aim of imp substitution instead of promoting exports to stimulate the growth of this sector, the government made a policy statement in 1985 with the primary objective to make available acceptable quality cloth at an affordable price to Indian people and at the same time protecting the interest of employees in the organised textile sector as well as the cotton growers. Textile industry in India accounts for around 7 percent of countrys GDP and about a fifth of the total industrial production. It contributes 14 percent of value addition in the manufacturing sector and about a third of the countrys foreign exchange earnings comes from this sector. Over the years, Indias per capita availabality of cloth also increased from 17.3 sq.mt. in 1980 81 to about 19.3 sq.mt. in 1996 97.
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With a rapid change in global textile trade in the recent yeas and the ATC coming into place, 1985 textile policy of the government needed a much deserved review. The government setup an Expert committee in July 1998 under the chairmanship of ex textile secretary S.R. Sathyam to evaluate the existing policy and recommended measures for this sector to face global challenges. Though the report was submitted to the government within the stipulated six month period, little effort has been made after that to implement the recommendations owing to unexplained reasons. Industry sources feel that the suggesitons for dereserving the readymade garment (RMG) section from its present status under SSI sector has compelled the government for such an inordinate delay in its implementation. Also, the committees recommendation for immediate repeal of SSI reservation to the clothing and knitwear segments and removal of all textile items from the preview of Essential Commodities Act, 1955, expect for raw cotton, cotton seeds, raw jute and jute textile,has not been quietly welcomed by certain segments in the industry. The committee has been of the opinion that textile industry should be out of all kind of government regulations expect a few responsible for healthy and accelerated growth of this sector while protecting the interest of consumers and the environment.
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Though textile exports have fallen short of the targeted $ 14.39 billion in 1999 2000, these have registered a growth of 6.1 percent. ($13.32 billion) compared to that of the previous year and in the first four months of current financial year, cotton textile exports have seen a remarkable growth of 13.8 percent compared to 13.1 percent decline for the corresponding period in the previous year. India is the third largest producer of cotton after China and US withits annual production at about 2.7 million tones, the competitive advantage of India lies in the availabality of its low cost skilled labour and the use of indigenous textile machineries in mills. Contrary to this, the export of India cotton is not picking up because of its poor quality and high price in the international market. The quantity of man made yarn, blended spun yarn and blended spun yarn export increased from 83 million kg in 1997 98 to 93 million kg in 1998 99, in actual rupee terms the value declined from Rs. 8.6 billion in 1998 99. India has been hard put to realise the export potential of its cotton yarn surplus due to the current quota restriction in the developed countries. And back at home, the government imposed a number of obligations on the idustries in this sector certain restriction hindering the growth of this industry are:

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Certain varieties of garments being reserved for production only for the handloom sector event though these products could be manufactured more economically by the organised sector. Compelling composite units to set aside 50% of their cloth production to sell at a price fixed by the government, which falls short of normal cost of production by 15 to 20%. Introducing Janata cloth to be manufactured only by the handlooms and government controlled units and to finance the scheme, the government levies an AT & T (additional duty for textile & textile articles) on the entire textile industry. Cotton mills prohibited from producing non cotton fabrics, even when there is not sufficient supply of cotton to these mills. In view of the fast changes that have taken place world over in this sector in the recent years, Indias textile policy and the governments regulations for this industry need a closer look so as to make this industry globally competitive. The government should work out ways to minimise the efect of restrictions on this sector so that the industry could gear up to withstand the threat for competitions from transactional players even after lifting of QRs and quota restrictions.
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Year wise Production of Spun Yarn & Fabrics

Year 2006 07 2007-08

Spun Yarn (Tonnes) 2973000 2807810

Fabrics(mm.Sq. m.) 36896.00 35766.20

Export, Import and Domestic Consumption of Indian Cotton

Export Spun Yarn 2006 07 5476.20 2007 08 4519.50 Fabrics 2006 07 3427.80 2007 08 3729.70 Woolen & Blended Yarn 2006 07 262.70 2007 08 176.80 Woolen Fabrics 2006 07 126.20
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Import 18.30 20.60 150.40 224.20 13.40 10.30 16.60

Domestic Consumption (mn sq. m) 26142.10 25501.10 133322.60 129294.50 264.60 281.60 1054.70

2007 08

117.00

12.60

1062.60

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CHAPTER 4 COMPANY PROFILE

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

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HISTORY

Around the time the Singhania family was building, consolidating and expanding its various businesses in Kanpur, one Mr. Wadia, was in a similar manner engaged in fulfilling his dream: he set up a small woollen mill in the area around Thane creek, 40 kms away from Bombay. This mill was soon acquired by the Sassoons, a well-known industrialist family of Bombay, who renamed it as The Raymond Woollen Mills. When the Singhanias were looking for new regions to establish their presence and new fields to venture into, they concurred that textiles appeared to hold promise. A piece of information that a woollen mill was available on the outskirts of Bombay clinched the issue. When the grandson of Lala Juggilal, Lala Kailashpat Singhania took over Raymond in 1944, the mill was primarily making cheap and coarse woollen blankets, and modest quantities of low priced woollen fabrics. The vision and foresight of Mr. Kailashpat Singhania helped greatly in establishing the J.K. Groups presence in the western region. Under his able stewardship, Raymond embarked upon a gradual phase of technological
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upgradation and modernisation producing woollen fabrics of a far superior quality. Under Mr. Gopalakrishna Singhania, the mill became a world-class factory and the Raymond brand became synonymous with fine quality woollen fabrics. At Raymond, quality did not rest on its laurels. When Dr. Vijayapat Singhania took over the reins of the company in 1980, he injected fresh vigour into Raymond, transforming it into a modern, industrial conglomerate. His son Mr. Gautam Hari Singhania, the present chairman and managing director has been instrumental in restructuring the Group. With the divestment of the Synthetics, Steel and Cement divisions he initiated, the Group has emerged stronger with a better bottom line, more focused approach, become market oriented and achieved a consolidated position. Today, the woollen mill by the creek has turned into a Rs. 1400 crores conglomerate and is Indias leading producer of worsted suiting fabric with 60% market share. It is also the largest exporter of worsted fabrics and readymade garments to 54 countries including Australia, Canada, USA, the European Union and Japan. The Raymond group is also the leader among readymades in India with a turnover of Rs. 2000 million with its three brands Park Avenue, Parx and Manzoni.

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In its pursuit of excellence Raymond continues to achieve enhanced customer satisfaction through ongoing innovation. And happily the growth graph continues to rise higherand higher.

HR PRACTIOCES Excellence is a way of life at Raymond that has been manifested in all our endeavours for the past 75 years. These endeavours have been translated into designing and developing products of international standards, delivering enhanced values through brand building, distribution and customer relationship. Raymond today, is a culmination of untiring human efforts based on the fabric of values. People are our prime resource in establishing market leadership. We value our people and always strive for their all round development.

CONTINUOUS LEARNING AND DEVELOPMENT We strive for organizational excellence through continuous development of our human resources. We strive to simply be the best, creating focus and driving business performance through our people. There is an intense focus on continuously developing our abilities to respond to existing and future business requirements. A detailed training and development plan is drafted and implemented each year, which comprises level-wise planned interventions as
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well as specific need-based interventions through Training Need Analysis, to equip people to excel in their current roles and develop them for possible future roles. There is great emphasis on behavioral and attitudinal training apart from technical training, as well as continuous on-the-job rotation wherever applicable.

EMPLOYEE INVOLVEMENT We believe that employee involvement is the key to continuous improvement, sound decision-making and developing an open and transparent organization. Kaizen initiatives, Quality Circles and Suggestion Schemes in all departments of the plants, enable us to tap latent creativity among organizational members. CORPORATE RESPONSIBILITY A responsible corporate citizen, aware of its social obligations, the Raymond Group has displayed an innate desire and a missionary zeal to contribute its mite to the welfare and social upliftment of the community. Temples, hospitals and dispensaries, schools, sports foundations, modern housing, recreational centresthe Group has provided it all, improving the quality of life not only of its employeesbut also of a large cross-section of society.
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The Group has always provided equal employment opportunity to women and set up support systems like crche, medical and transport facilities for them. Raymond Embryo Research Centre and JK Trust-Gram Vikas Yojana We aim for the socio-economic upliftment of the rural poor through the optimum use of technology for generating gainful employment and to improve their quality of life. In the year 1983, the Embryo Research Centre for cattle was established by us at Gopalnagar. The main objective behind establishing the Centre was to produce genetically superior, high milk-yiedling cattle through the technique of Embryo Transfer, and thus improve the socio-economic status of farmers. Today, we have 44 Veterinary Officers and 10 Rural Development Officers working on the project, covering 370 Integrated Livestock Development Centres spread over 3700 villages of Andhra Pradesh, Madhya Pradesh and Chattisgarh. BRANDS Raymond

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The largest and most respected textile brand in India for 'The Complete Man' addressing the innate need of men to look good and at the same time possess strength of character.

Park Avenue Formal readymade garments & accessories for men it has recently bagged the "Most Admired Brand" and "Most Admired Trouser Brand" awards. Parx The semi formal and casual range of cottons, blends and denim wear catering to the smart, fashionable and comfortable clothing segment. Manzoni The luxury range of mens shirts and ties acknowledged for its high quality and international styling. Be: An exclusive prt-a-porter line of ready-to-wear designer clothing for women and men in western, ethnic and fusion styles. KamaSutra
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The premium condom brand with the unique 'for the pleasure of making love' positioning in textured & flavoured variants. Premium The range of cosmetics & toiletries including after shaves, shampoos, cologne, shaving cream, soaps, deodorants, room fresheners, etc. ColorPlus Premium casual wear brand in high quality natural fibres like cotton and linen, in superior mixed and performance oriented weaves.

PRODUCT PROFILE Premium Suiting Fabric- for Suits, Jackets, Trousers and Ethnic-wear * Pure-Wool From 22.5 to 13.5 micron wool and its combination with speciality fibres like cashmere, angora, camel hair, alpaca, linen and silk. * Polyester-Wool Combination of fine polyester with 24.5 to 15.5 micron wool and speciality fibres like cashmere, angora, camel hair, linen and silk etc. * Polyester-Viscose - Tropical Suiting Combination of fine polyester with viscose, modal linen and silk fibres.

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INTERNATIONAL BUSINESS TEXTILES It all began with a small but significant order from Fiji for Rs. 7,000 worth of Raymond fabrics. In the St. Eriks Fair in Sweden, a sizeable order was won and executed and ever since exports have never looked back. Today, Raymond is the largest exporter of worsted fabrics and readymade garments to over 58 countries including Australia, Canada, USA, the European Union and Japan. From winning the first ever Government of India award for outstanding export performances, Raymond has continued to win a number of export awards. Happily the export graph continues to rise higherand higher. The fact that Raymond makes world-quality fabrics is evident in the global acceptance the brand has achieved. Internationally renowned menswear designers today style their latest collections from Raymond- the fabric in fashion.

WHAT WE EXPORT FABRICS All Wool, Wool Rich, Polyester Wool & Polyester Viscose fabrics .Exotic fabrics like Wool Silk, Wool Cashmere, Cape Wool and Linen blends.
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Available in variety of finished and stretch properties both with and without Lycra.

BLANKETS All Wool, Wool Rich Blankets & Flannels. GARMENTS Trousers, Jackets, Suits, Shirts, Jeans and T Shirts. Readymade accessories such as Ties, Socks Handkerchiefs and Leather Belts. DENIM Raymond Denim enjoys a substantial market share in all parts of the world. The company exports 55% of its production to around 20 countries around the world and to leading denim wear brands like Levi's, Pepe, Lee Cooper and retail brands like Zara, H&M, Gap, Tommy Hilfiger, etc. Where We Export European Union (U.K., Portugal, Spain, Italy, Germany, Greece) Turkey, Poland, Lebanon, Egypt, Middle East, Mauritius, USA, Colombia, HongKong, Korea, Philippines, Indonesia, Bangladesh, Sri Lanka, Nepal and Pakistan.

What We Export
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FILES & TOOLS Ring based denim i.e. stretch, flat (mercerised), streaky, dark, ecru and tinted, in weights varying from 7.5 oz to 14.5 oz. J.K. Files & Tools enjoys a substantial market share in all parts of the world and is a strong brand name in Africa, Asia and Latin American markets. It exports more than 50% of its production to more than 80 countries around the world and enjoys more than 30% share in the global market. Since 1972 this division has been regularly receiving the Engineering Export Promotion Council's excellence award. Customers all over the world prefer the company's products as it means value for money in terms of all aspects of the product and services. JKFT supplies files to Original Equipments Manufacturers (OEMs) in Europe and USA. It also supplies to Machete manufacturers who complement their product range with the company's files. JKFT also services to large distributors and wholesalers who deal in tools and hardware items.

CONDOMS J.K. Ansell has consistently earned the approval of buyers the world over and is recognised both for high quality condoms and consumer appeal.

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At every stage in the process, from sourcing the raw material through the production process to dispatch, stringent quality parameters are met. The plant is ISO 9001 certified and accredited for CE Mark from British Standards Institute, UK. We have elaborate testing facilities in-house. Our products also conform to various international standards like ISO 4074, BS 3704, ASTM, WHO, SABS and US FDA 510K. The company exports condoms to over 25 countries including South Africa, Russia, Ukraine, Saudi Arabia, Kuwait, Ivory Coast, Bangladesh, Sri Lanka, Botswana, Romania, Nepal and UAE. Branded condoms apart, the company is also involved in institutional supplies to various countries. It has in the past supplied condoms under EEC, World Bank UNFPA funded programmes to Bangladesh and Kenya. The company has also exported bulk products to Ansell International for the markets of USA and South Africa. GROUP COMPANIES Incorporated in 1925, the Raymond Group is a Rs. 1400 crore plus conglomerate having businesses in Textiles, Readymade Garments,

Engineering Files & Tools, Prophylactics and Toiletries.

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The group is the leader in textiles, apparel, & files & tools in India and enjoys a pronounced position in the international market. Raymond believes in Excellence, Quality and Leadership. Raymond Ltd.Raymond Limited is Indias leading producer of worsted suiting fabric with a 60% market share. Raymond Apparel Ltd. has three highly regarded menswear brands in its folio: Park Avenue, Parx & Manzoni. J.K. Ansell Ltd. is the manufacturer and marketer of KamaSutra brand of premium condoms. J.K. Helene Curtis Ltd. is the marketers of the Park Avenue and Premium brands of mens toiletries. ColorPlus Fashions Pvt. Ltd. Established in 1994 ColorPlus is one of the leading domestic brands for premium casual wear in the country

RAYMOND LTD. Incorporated in 1925, Raymond Limited has four divisions comprising of Textiles, Denim, Engineering Files & Tools, Aviation and Designer Wear. Raymond Textile is India's leading producer of worsted suiting fabric with over 60% market share. With a capacity of 25 million meters of wool &
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wool-blended fabrics, Raymond Textiles is the worlds third largest integrated manufacturer. The company exports its suitings to more than 50 countries including USA, Canada, Europe, Japan and the Middle East. Over the years, Raymond Textile has developed strong in-house skills for research & development, which has resulted in path-breaking new products. Perceived as pioneer and innovator, Raymond Textile has been responsible for raising the standard of the Indian textiles industry. The Denim division has an installed capacity of 16 million meters and produces high quality ring denims. The company currently ranks among the top 3 producers in India. The products are exported to over 30 countries in the world. The Engineering Files & Tools division, J K Files & Tools, is the worlds largest producer of steel files with 90% market share in India and about 30% market share in the world. The Designer Wear division, Be: is an exclusive pret-a-porter range that houses designs by some of the finest Indian designers. Be: offers an eclectic mix of formal, office and evening wear for men and women, in western, ethnic and fusion styles with accessories. The Aviation division, Million Air was launched in 1996 to provide air charter services. Known for high quality and reliable services, Million Air has a fleet of three helicopters and one executive jet.

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RAYMOND APPAREL LTD. To some, the ultimate in fashion. To others, something to aspire for. Brands from Raymond Apparel Ltd the finest in ready made garments. More of a tradition that lives on forever. Dressing up gentlemen over the years, it is Nirvana for the senses. Dating back to as early as 1969, Raymond Apparel Ltd. has evolved with the times. Its rich heritage continues to be reflected in the clothing even today. It has three highly esteemed menswear brands in its portfolio Park Avenue Parx Manzoni

Each brand targets a specific segment. Park Avenue is a formal brand while Parx, a smart casual brand and Manzoni the connoisseurs delight. With a well-established network of distributors and countless outlets across the country, it cuts across regions and culture with a variety that combines style, simplicity and elegance. The company and the brands have won recognition and fame consistently. The latest in the list are

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IFA (Images Fashion Awards) 2003 Awards Won 1. The Most Admired Apparel company of the Year Raymond Apparel Ltd. 2. The Most Admired Suit Brand of the Year Park Avenue 3. The Most Admired Trouser Brand of the Year Park Avenue Nominees The Most Admired Shirt Brand of the Year Park Avenue 1. The Most Admired Trouser Brand of the Year Parx CMAI (Clothing Manufacturers Association of India) Apex Awards Awards won 1. Largest Brand of the Year 2001-02 Park Avenue 2. Menswear Brand of the Year 2001-02 - Park Avenue Nominees 1. Advertising Campaign of the Year 2001-02 Park Avenue 2. Advertising Campaign of the Year 2001-02 Parx 3. Menswear Brand of the Year 2001-02 Parx Business World Most Respected Company Awards 2003 Award won The Most Respected Company in the Ready-mades & Textiles Sector Raymond
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INTERNATIONAL STORES India Bangladesh Kingdom Of Saudi Arabia Nepal Sri Lanka Sultanate Of Oman U.A.E.

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CHAPTER 5 FIRM PROFILE SRINIDHI SILKS AND TEXTILES

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

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A BRIEF HISTORY Shimoga city is the district headquarters of Shimoga district. The city is growing very rapidly. The population is also increasing in a surprising rate. Because of the huge market the people in Shimoga will get all types of home appliances, machinery's, foods, cloths etc. the consumers are making plenty of choices to make their purchase for all kinds of goods. There are plenty textile showrooms, which are famous for its goods and services. The important textile showrooms are:

Srinidhi silks and textiles Gandharva Suraha textiles Prestigious silks and textiles

This chapter is the profile of the firm "Srinidhi Silks and Textiles" which is situated in Srinidhi shopping complex, I.S.B (Gopi) circle, Nehru road, Shimoga. This area is one of the prominent shopping area in Shimoga city. People come to this area for making purchase not from other part of the city, but also from the neighboring towns.

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The "Srinidhi Silks and Textiles" was established on 26th March 1984. The whole shop is under the ownership of 3 brothers of the same family. They are: 1.T.B. Ashwathanarayana. 2.T.B. Venkatesh Murthy. 3.T.B. Dattatry Gupta They invested all their money in the construction of complex building and the establishing the showroom. They were timely helped by "Andra Bank" and with few friends. At the beginning it faced some competition from other established firms. But soon after one year the "Srinidhi Silks and Textiles" was famous for its cloths, quick and good service. In the "Srinidhi Textiles" there are plenty of varieties of textiles from different manufacturing companies. It has got a wide range of textile for men section. 50 years back "Srinidhi" shop is just only a "general provision stores". In those days the size of the shop was only 1500 square feet. But as they enter in to textile business (i.e. in 26-03-1984) they achieved lot of success in this field. Now the size of the shop was increased from 1500 square feet to 4000 square feet. Even though they have not had any experience in textiles field. They got motivation and encouragement from their relatives who are in Tumkur.
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From 1984, they never looked back they have only one target, i.e., to achieve their desired goals and to serve the customers. Their slogan is "Limited Profit, Unlimited Dealings". The firm has three concern: 1.Srinidhi investment and leasing syndic etc, Shimoga. 2.Sri Bama Traders, A.P.M.C yard, Shimoga. 3."Srinidhi Silks and Textiles" Hasana.

CAPITAL STRUCTURE The initial investment of "Srinidhi Silks and Textiles" was only between 8 lakh for stocks and of lakh for furniture and fittings. Today, the firms is gaining the annual turnover of more than crores. These years of success is the result of undoubting efforts, dedication, creative thinking and team work for which all the employers of Srinidhi are proud off. They believe in the philosophy that each one of them right down to the least, has an equal important part in the building of each system. In a few years, they recognised the increasing demand for CSIC Mysore silk sarees. They planned to start another shop especially to deal with Mysore Silk sarees of KSIC. They were well supported by the consumers and KSIC to

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go a head with the project. As a result on 28th November 1990 they opened their new shop named as "Srinidhi Fasbions" besides their complex.

SRINIDHI SILKS AND TEXTILES CASH BILL OR CREDIT BILL

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OBJECTIVES OF THE FIRM The firm is undertaking selling activities with the following objectives, Consumer satisfaction: Another important objectives of the firm are consumer satisfaction. It aims to give better quality product to the public at a cheaper price. Introduce new charities of textile: The secondary object of the firm is to introduce new of textile goods in the local market.
a) To Provide cheap price:

Another important objectives of th firm is to provide the textile to the potential consumers in that area as cheap as possible.
b) To attain goodwill:

As aim of every business firm, the proprietor of the firm has to achieve goodwill on that lot of effort and achievements made on create good images or goodwill above the firm on that area by the surrounding customers.

c) Profit:

As in the case of all business firm one of the important objectives of the firm is to earn profit,

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MARKETING TEXTILES:

MIX

STRATEGY

OF

SRINIDHI

SILKS

AND

The concept of market is very important in marketing. The American Marketing Association defines a market as " The aggregate demand of potential buyers for a product or services", Thus a market is a group of buyers and sellers interested in negotiating the terms of purchase or sale of goods or services. The negotiation work may be conducted face to face at certain place and village or it may be done though other means of communication such as correspondence, phones, cable or its may be done though business middlemen and brokers and commission agents facilitating an commission agents facilitating an exchange process between sellers and buyers. Exchange I the heart of commerce and market. Exchange is possible on when where are two or more parties who each have something they desires to exchanges for something else.

Marketing Mix: The marketing mix is the interplay of a basic and their related elements of a marketing program. The 4 pcs. of product, price, promotion and place. They will be examined one at a time, but it is primary importance that to realize that they are interdependent. A change in one element usually brings on a

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change in the others. Proper or chestrotion of these elements is the key to a sound marketing. a) Product Mix: The product is a bundle of all kinds of satisfaction of both material and non-material kinds, ranging from economic utility to satisfaction of a socio psychological nature. A product is all things offered to a market. These things include physical objects, design, brand, label, package, price, services, etc., Product is every thing, which the purchasers, will get in change for money. The buyer not only buys the product but also the product should satisfy him. At is a stage on which the entire drama of successful marketing operation is depends. "Srinidhi silks and textiles" deals with suiting, shirting, sarees and dress materials etc. The suiting and sarees, which Srinidhi deals, are listed as below: Sl no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 Suitings Raymond's Digjam Siyaram's Vimal Gwalior Bombay dying Reid & Taylor OCM BSZ Others Sarees (silks) Dharmavaram Kanchipuram KSIC Mysore silks & Sarees Vimal sarees Bombay dying sarees Others

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Managing the product includes planning and developing the right product or services to be marketed by the company. Policy strategy guidelines are needed for changing the existing product, adding new one's and decisions also needed regarding branding, packaging, colour and the product features.

b) Price Mix: Praise is an important element in meeting consumer needs. Price is always an important consideration for both to the buyer and seller. It can often spell success of disaster to a firm. In economic it has figured prominently for hundreds of years, but its importance was increased today. When barter

economy changes into money economy the importance of price and money grew and they become the very best of the exchange of the economy. Company itself does pricing of any suiting, shirting's, silk sarees etc., Dealer will not be having any authority on fixing the price for the product. The company will fix the price of their products, which includes transportation charges, other charges if any, The dealers will only get an attractive

commission for the sales they perform. The price of the product will depend upon its quality, demand in market, reputed company etc., If the textile manufactured by reputed company is of
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good quality, the price or that textile will be more.

The selling price of

Raymond's textile starts from Rs.500 per meter, and it will increase depending upon its quality. The price of Siyarams textile starts from Rs.180 per meter and it will increase depending upon its quality. Its maximum price is Rs.450. The price of Raymond's was hihg because it was NO 1 suit length in India. The price of other Suitings like B.S.L. OCM, Digjam, Gwalior etc., will starts from Rs 300 and it will also increase depending upon its quality. The " Srinidhi silks and textile", also provided customer.
c) Promotion Mix:

same discount to

Promotion is a device of marketing communication in order to move towards a product, a service or an idea of chattiness of distribution. Thus promotion is necessary for creation of demand, which is one of the main function of selling. Srinidhi Silks and Textiles adopts press and radio advertisement. It will provide it advertisement in various daily newspaper published in Shimoga. It includes Navika, Janavarthe, etc., The A.I.R. of bhadravathi also advertises in its broadcasting.

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Other than the above media's it also advertises its products in many other ways. Its products in many other ways. It includes window display, banner. Etc. The Srinidhi no only advertise in Shimoga city but also advertise in neighboring towns. Throughout the Shimoga district, it will come across many such compounds wall window display's of "Srinidhi". Through pamphlets also advertise their products. Pamphlets will be kept inside the news paper and the consumer will get the pamphlet and will come to know about the proceedings. It also encourages by offering " Discount sales" " Reduction Sales" of the product. During the anniversary times, It will offer contest, gift coupon,

scheme to improve its sales. d) Distribution Mix: Distribution may be defined as an operation or a series of operation which physically bring goods manufactured produced by an particular manufacturer into the hands of the final consumer to under. Distribution

includes all activities, which bring a product from the factory into the hands of the final consumer, which include other marketing operation. The distribution starts from the manufacturing process. "Srinidhi"

regularly brings the goods once in a every month. Here in " Srinidhi", the

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demands of the consumer will be brought and the consumer will get satisfied by the services rendered by the members of " Srinidhi". 4. Working Levels in Prestigious: Proprietor Accountant

Clerk

cashier Salesmen

Supervisor

MARKETING PROBLEMS FACED BY THE FIRM. Sometimes the shop will have to face some problems, regarding the textile products. a) Supply of Product:

b) First and the foremost problem is, the problem of required product for ex. if the consumer wants the textile, which is more in demand at the present market, if the stock is over. The dealer will not get the required product immediately. This is the major problem as the customer changes his mind with day to day changes. Hence supply of product is one of the problem faced by the dealer. c)
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Price of the product:

The second problem faced by the firm is price of the product. It the textile of reputed company their price are little bit high, an ordinary customer will not be able to get the product. The dealer must wait for the arrival of certain customers who able to purchase the product. d) Change of views: Thirdly the consumer may change their views while making purchases. This is how means, the a consumer will get the substitute product even for be cheaper rate than this product. They purchase, lower quality textiles at cheaper rate and they will invest the remaining money in purchasing other products. e) Change of Mind: Another important problem is change of mind of consumers. Here a variety of products will get a very high demand. Every consumer wants to by such type of product. By seeing more demand for the product if the dealer purchases that product and kept it in the shop for sale. When customer come for purchases that product if the dealer brings some more quality of other product in short term the consumer may shifts his demand from that product to another. Because of this the entire new stock will remain unused.

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CHAPTER 6 CONSUMER SURVEY ANALYSIS

INTRODUCTION

TO STUDY A BRIEF ANALYSIS SUMMARY OF FINDINGS

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CONSUMER SURVEY ANALYSIS 1. Introduction to the buyers behaviours In this big vast city Shimoga, there are lots of people who wear textile clothes, Shimoga is a vast growing city. Most of the people are educated. Here the consumer plays as important role in the textile field. They are consumers are known as the "king of the market". The reputation of only of its goods is entirely dependent upon the attitude of the consumers. Some people express their opinion in a very difficult way. So the consumer satisfaction must be the motion of every manufacturer. The survey is conducted with a view to as certain the consumers attitude towards various types of textile clothes. In Shimoga city, with special reference to the "RAYMONDS suiting and shirting's of "Srinidhi Silks and Textiles". The survey is conducted among the different classes of people residing in Shimoga city. For this survey questionnaires method is adopted. The main aim of this survey is to study the opinion of the people residing in Shimoga City about Raymond. The answer given by the respondents are analysed and classified. Their opinion is the key to the survey.

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Persons have participated for our questionnaire to make this survey suggestion. The percentage wise opinion has been shown in all the tables formed below for the purpose. A brief analysis: Here, in this survey the total number of persons are interviewed were 100. Respondents. The respondents include student, businessman, employers and other type of people.

Table 1 The following table and graph shows the were all selection of the textile cloth in Shimoga city.
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Textile Brand Raymonds Siyaram Digjam Others Total

No. of respondents 36 22 18 24 100

Per (%) 36 22 18 24 100

40 35 30 25 20 15 10 5 0 R m ay onds S aram iy D igjam O thers

In the above table we choose the overall selection of textile clothes in the Shimoga city. Here, in this table, the consumer prefer Raymond's upto 36% than come Siyaram's at 22% favour by Digjam 18% and other textiles at 23%. Table 2 The following table & graph shows the selection of only students. Textile Brand Raymonds Siyaram Digjam Others No. of respondents 7 4 3 6 Per (%) 35 20 15 30

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Total
7 6 5 4 3 2 1 0 Ry od amn s S a m iy ra

20

100

D ja ig m

O e th rs

In the above table we choose only 20 respondents who are students. In this table most of the student prefer Raymonds because it has good colour, medium price so that they can afford themselves. So they rated Raymonds at 35%, Siyarams at 20%, Digjam at 15% and they rated others at 30%.

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Table 3 The following table and graph shows the selection of various textile brands according the business man. Textile Brand Raymonds Siyaram Digjam Others Total No. of respondents 13 5 8 4 30 Per (%) 43.33 16.67 26.67 13.33 100

1 4 1 2 1 0 8 6 4 2 0 Ry od amn s S a m iy ra D ja ig m O e th rs

The market share of Raymond is very high compared to others textile because the business class consists of both executive as well as non-executives. The executives prefer Raymonds most. So they rated Raymonds at 43.33%, Siyarams at 16.67%, Digjam at 26.67% and others at 13.33%. we have chosen 30 respondents who are business men. Table 4 The following table and graph shows the selection of various textile brands according to employees. Textile Brand No. of respondents Per (%) Raymonds 16 53.34
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Siyaram Digjam Others Total

4 7 3 30

13.33 23.33 10.00 100

Others 10%

Digjam 23% Raymonds 54%

Siyaram 13%

In the above table we have interviewed 30 respondents who are employer out of these they have given more performance to Raynmonds Textile. Because of the good colour, durable, style, reputed company etc. they rated Raymonds at 53.34%, Siyaram's at 13.33%, Digjam at 23.33% and others at 10%.

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Table 5 The following table and graph shows the selection of various brands of textiles according to other types of people. Textile Brand Raymonds Siyaram Digjam Others Total No. of respondents 4 5 4 7 20 Per (%) 20 25 20 35 100

8 7 6 5 4 3 2 1 0 Raymonds Siyaram Digjam Others

In the above table 20 respondents are interviewed who are other type of persons. Out of them, more number of persons gave others at first place and rated at 35%, Raymonds at 20%, Siyarams at 25% and Digjam at 20%. COMMON SURVEY ANALYSIS ACCORDING TO THEIR INCOME

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Table 6 The following table and graph shows the brands. Performance among the people having income below-3500. Textile Brand Raymonds Siyaram Digjam Others Total No. of respondents 2 4 2 6 14 Per (%) 14.28 28.57 14.28 42.87 100

6 5 4 3 2 1 0 Raymonds Siyaram Digjam Others

In the above table the respondents having their income below 3000 have being interviewed. Only 14 persons 14.28% of them buys, Raymond's 28.57% buys Siyaram's 14.28 of them buys Digjam and 42.87% of them buys other types of textiles. Table 7 The table and graph showing the selection of textile brands among the people having their income between 3000-5000.
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Textile Brand No. of respondents Per (%) Raymonds 6 30 Siyaram 3 15 Digjam 4 20 Others 7 35 Total 30 100 In the table 20 persons are interviewed who are having income between
7 6 5 4 3 2 1 0 Raymonds Siyaram Digjam Others

Rs.3000-5000. Out of 20 respondents, 6 persons choose Raymonds, 3 persons choose Siyarams, 4 persons choose Digjam's and 7 personn choose others type of textile. They rated raymonds at 30%, Siyaram's at 15%, Digjam's at 20% and others at 35%. Table 8 The following table and graph shows the selection of textiles brand among the people having income between Rs. 5000-10000. Textile Brand Raymonds Siyaram Digjam
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No. of respondents 14 3 5

Per (%) 53.84 11.53 19.25

Others Total

4 26

15.38 100

14 12 10 8 6 4 2 0 Raymonds Siyaram Digjam Others

In the above table 26 respondents are interviewed who have a monthly income between Rs 5000 to Rs.8000. out of 26 respondents interviewed they rated 53.84% for Raymond's, followed by Siyarams at 11.53%, Digjam at 19.25% and others at 15.38%. Table 9 The table and graph showing the selection of branded textile among the people having income above Rs. 10000.

Textile Brand Raymonds Siyaram Digjam Others Total

No. of respondents 24 8 5 3 40

Per (%) 60 20 12.5 7.5 100

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25 20 15 10 5 0

Raymonds

Siyaram

Digjam

Others

In the above table, 40 persons are interviewed who are having the monthly income of Rs. 10000 above. Out of these 40 people 60% of the people rated Raymonds, 20% rated Siyarams 10.50% rated Digjam and 7.50 rated other type of textiles. Table 10 Classification of the following factors while purchasing Raymonds textile of any other products. Classification Quality Colours Durability Economical Price Style Reputed company Total
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No. of respondents 46 10 15 4 8 10 7 100

Per (%) 46 10 15 4 8 10 7 100

In the above table, the respondents were classified according to the above factors. 46% of the people buy the products (i.e. textile) because of its quality, then 10% of the people buy according to the colour, 15% fo the people buy according to the durability, 4% of the people buy because of economical, 8% of the people buy by seeing the price, 10% of the people buy according to their style and lastly 7% of the people buy bu textile due to the company reputation.

Classification of the following factors while purchasing Raymonds textile of any other products

10% 8%

7%

46%

4% 15% 10%

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Q uality D urability P rice R eputed company

C olours E conomical S tyle

Table 11 The following table showing respondents buying decision of Raymonds textile. Particulars Advertisement Friends Neighbours Others Total No. of respondents 52 24 18 6 30 Per (%) 52 24 18 6 100

In the above table people buy according to their own choice, influenced by some body and others. To check the buying decision of the consumers about Raymonds, 100 respondents were select, Raymonds as their brand out of 30 respondents 52% of people buy through advertisement, 24% of them buy because they are influenced by their friends, 18% of others boy because of their neighbours buy 50, 6% of them due to other reason such as special occasion, marriages, some body boy for them.

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The following Graph showing respondents buying decision of Raymonds textile.

P artic ulars of res pondents No. m ale fem ale total 24 18 6

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Table 12 The following table shows the texture that the respondent like most. Particulars No. of respondents Per (%) Cotton 35 35 Synthetic 20 20 Both 45 45 Total 100 100 The above table shoes the different likes of the respondents while. When

Both 45%

Cotton 35%

Synthetic 20%

the purchase textile. 35% of the respondents purchase cotton tax title. Where as 20% of them purchase. Synthetic textile and lastly 45 of them purchase both types of textile.

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Table-13 The following table showing types textiles preferred by respondents Category of cloth Branded Unbranded Both Total No. of respondents 80 4 16 100 Per (%) 80 4 16 100

Unbranded 4%

Both 16%

Branded 80%

The above table shows the attitude and inciation of customer regarding to the branded and unbranded textile cloth out of 100 respondents 80% of them purchase branded cloth 4% of them purchase unbranded and 16% of them purchase both type of textile cloth.

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Table-14 The following table and graph shows the opinion of respondents regarding the price of Raymond's Textile.

Opinion Low Medium High Total

No. of respondents 6 3 64 100

Per (%) 6 3 64 100

64 70 60 50 40 30 20 10 0 Lo w Me d ium No . o f re sp o n dents Hig h 6 3

In the above table; 100 respondents are interviewed who are interested in Raymond's Textile, out of them 6%. People tells the Price of Raymond's Textile is low , 30% of them telles. Its prices as medium and 64% of them tells the price of Raymond's is high.

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Table-15 The following table and graph shows the opinion respondents regarding the quality of Raymond's Textile. Opinion Good Excellent Satisfactory Not bad Total No. of respondents 32 54 9 5 100 Per (%) 32 54 9 5 100

60 50 40 30 20 10 0 Go od Excellen t Satisfacto ry No t bad

In the above table 100 respondents who purchase Raymond's Textile give their opinion about the quality of Raymond's textile out of respondents, 32% of them rated the quality as good, then 54 of them rated as excellent, there, 9% of them rated as satisfactory and 05% of them rated as not bad SUMMARY OF FINDINGS. The following table shows the total percentage Of customers of different brands of textile cloth.

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Respo ndents Studen ts Busine ss men Emplo yer Others Total

Raymond s No 7 13 16 4 40 % 35 43.3 3 53.3 4 20

Siyarams No 4 5 4 5 18 % 20 16.67 13.33 25

Digjam No 3 8 7 4 22 % 15 26.67 23.33 20

Others No 6 4 3 7 20 % 30 13.33 10 35

Tota l 20 30 30 20 100

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CHAPTER - 7 SUGGESTIONS & CONCLUSIONS

SUGGESTIONS TO

THE COMPANY CONCLUSION.

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SUGGESTION & CONCLUSION


1.

Suggestions to company and firm: In this survey, we have sent that all the user of the product, i.e. the students, employers and businessman given the Raymonds first place and the others gives the other type of people gives the third place. In this survey, it is absorbed that its performance, quality, good colour price and other attributes have attached a large number of customers. Similarly "Srinidhi silk and Textiles" has also a very good reputation and they have gone a long way in the sales and service activities. The following are the suggestions for the better performances of Raymond textiles to increase their sales and services.

a. Product Raymonds textiles is the leading company in words woolen and textiles Manufacturing in our country. It has earned a very good name and popularity in the world of suiting and shirting's. Therefore almost every consumer is satisfied with the results. The following are some suggestions for attracting better performances of "Raymond's" and increase the sales in the future.

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The manufacturers have to put more efforts on maintaining and improve the quality of Raymond's. They should see that textile Manufactured is of good quality.

The Raymond Textile Company is expected to increase its distributing channels and should keep supplying the goods in time required by the dealers whatever their demand.

Inspire of good quality, it is unobserved that the textile of Raymond's have good popularity and there is a lot of demand in the market as compared to others. Here, some of the consumers do not purchase the textile of Raymond's always, but only one in a way. Sot he manufacturer is required to take proper promotional activities in under to popularize the product through different advertising media's.

Dealers most take responsibilities if there is any small complaint from the customers.

b. Price The Raymond's textile has got a very good image and has got a very good image and has on increasing demand. As there are number of competitors existing in the market, the price becomes an important factor in order to increase the sales and rise in demand. Raymond's is accepted by middle class and rich people by majority. The low class people feel that the price is

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relatively high but they also buy it once in a way. Therefore the price of the product must be comparative. So as to improve sales in the competitive market. The following are some suggestions towards the price: 1. The cost of production should be certain led by increasing the production while implementing the cost. Care must be taken such that quality of the product is not affected adversely. 2.Here, the low class people buy the product once in a way, 50 proper care should be taken and the price should be lowered at least to compensative them. 3.They must try to maintain the price stability as for as possible. 4.Price must be fair in order to create impulsive buying. 5.The market expenditure should be minimized. However, the high pricing strategy, involved in this textile is mainly to building the image of the company.

PROMOTION AND DISTRIBUTION: Sales promotion is an important instrument to lubricate the marketing efforts. The promotion strategies, taken up by the company is quite satisfactory.
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The sales officers visit the dealer once in a while. This is mainly to assess the sales, to know the problems of dealers, if any. The advertisement of Raymond's appears in T.V. Newspapers, magazines etc, as for as distribution is concerned. In this survey as far as the advertisement of Raymond's is concerned, most of the consumers are influenced by magazine and T.V Srinidhi has also adopted different media of advertisement in Shimoga city in addition to the process efforts. Thus the general condition of promotion and distribution of producers as well as dealers are quite satisfactory. There are some further suggestion for improvement. The person sales promotional activities should be taken in order to increase buying responses by ultimate consumers and also to improve. Market share of Raymond's. Attractive advertisement through all the media's of a advertising is very necessary in order to increase the usage rate of sent consumer and also to meet the competition. Promotional measures such as contests, prize coupons and premium should be attached to sales.

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Srinidhi should also take greater care for local advertising. Regular advertising is to be given in local newspapers, some promotional measures have to be provided for customer who buy in bulk.

To maintain the quality where many of the manufacturers fail when they look for more turnover or when their product is having a good demand in the market, once the manufacturer gets a top position in the market. Many of them fail to maintain the quality of the product. This should be avoided so that they can maintain and improve their turnover.

The dealers should improve the display of the product, so that the consumer will be attracted towards the product. Also, the dealer should highly the product compared to the other products. Public relations have now become an important marketing function.

Effective marketing communication is not possible without establishing and maintaining mutual understanding between the company and its customers. A bright image of the product is created and maintained only by public relations. The marketing practitioner finds that the customer wants to delivery of their product at right place, at the right time and at the right quality. The ingredients of marketing mix such as product, price and promotion constitutes the first half of the marketing. The distribution logistics inputs, is termed as the other half of the marketing concept of customer oriented market planning. As
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far as the distribution the manufacturer has got dense network of distribution. The dealers are quite satisfactory about the general conditions of distribution of product. CONCLUSION: The result of this survey is sufficient enough to prove that the Raymond's silk mills ltd., co has a very good reputation in the market. It has been successful in maintaining the quality and performance etc. in order to maintain higher competition efficiently. There should be continuous and through product planning. It is also observed that it is facing heavy competition from various other brands such as Digjam, BSL, and Bombay dyeing etc. therefore, it is most important to keep the competitive efficiency high. It is also necessary that the producers to see an the facts of production, price and distribution facilities. In this present competitive market, the consumers have been describing as the "King". Thus it is very essential that very manufacturer should manufacture those products and services that satisfies present needs of the consumers. Consumers orientation is of an immense importance for image for creating and maintaining the brand image in the minds of the consumer. Thus, it is important on the part of the Raymonds limited of dealer in Shimoga city may
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consider this analysis and suggestions for achieving higher market performance in the future. Since the sales of textile is being seasonal and due to some other technical reason. The company could not reach its usual profit percentage. Despite this fact, the company has managed to increase its sales turnover for the year. However, the operating profits were lower. The company should take measure to improve sales and turnover of the product.

BIBLIOGRAPHY

i) Encyclopedia ii) Business today iii) Raymond's dealers iv) News papers and journals v) Marketing management vi) Friends vii) Web site

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CONSUMER QUESTIONNAIRE

Dear Sir, I am final year B.B.M student from Sahyadri College. I am doing survey on attitude of consumer towards "Raymonds Textile". So I request you to kindly spare some time for filling up the below questionnaire form.

Thanking You, ANKITH BM 1. Name & Address 2. Age 3. Occupation a) Student c) Employer [ ] 4. Monthly Income a) Below 3000 c) 5,000/- to 10,000 [ ] : : : b) Businessman d) Others [ ] [ ]

: [ ] [ ] b) 3,000 to 5,000 [ ] d) above 10,000 [ ]

5. Do you purchase textile cloth?


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Yes

[ ]

No

[ ]

6. If Yes of which textile company? a) Raymond's c) Siyaram's [ ] [ ] b) Digjam [ ] [ ]

d) Others

7. Which type of texture do you like most? a) Cotton [ ] b) Synthetic [ ] c) Both [ ]

8. Which category do you generally use most? a) Branded [ ] b) Unbranded [ ]

9. Have you heard about Raymond's Textiles? Yes 10. If Yes, How? a) Advertisement [ ] c) Neighbors [ ] 11. Do you use Raymond's Textiles? Yes [ ] No [ ] b) Friends d) Others [ ] [ ] [ ] No [ ]

12. If Yes, on what basis do you prefer? a) Quality b) Style c) Economical d) Good colour [ ] [ ] [ ] [ ] e) price [ ] f) Durable [ ] g) Reputed [ ]

13. If No, why?


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a) Poor quality c) High price

[ ] [ ]

b) Not attractive d)Non-durable

[ ] [ ]

e) Not interested in this material 14. What is your opinion about the price? a) Low [ ] b) Medium [ ] c) High [ ]

15. What is your opinion about the quality? a) Excellent c)Satisfactory [ ] [ ] b)Good d) Not bad [ ] [ ]

16. Are you aware of Srinidhi Silk and Textiles? Yes [ ] No [ ]

17. Are you satisfied with the service provided by them? Yes 18. Suggestions: ______________________________________________ ______________________________________________ Thanking you, Date: Place: [ ] No [ ]

Signature

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ANNEXURE

CONSUMER QUESTIONNAIRE BIBILIOGRAPHY

Encyclopedia Business Today Raymonds dealers News paper & Journals Marketing Management Friends Website

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