J2

PROJECT REPORT
ON
A FEASIBILITY STUDY ON SETTING UP A
TEXTILE MANUFACTURING UNIT IN DELHI & NCR
IN PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (EVE)
SUBMITTED BY:
TEJPAL SINGH
ROLL NO: 09MBA15
UNDER THE GUIDANCE OF:
PROF! "AMRAN MALI"
FACULTY OF ENGINEERING & TECHNOLOGY
JAMIA MILLIA ISLAMIA
NE# DELHI 110 05
P a g e | 2 A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
DECLARATION
! hereby declare that this pro"ect entitled #A Feasibility study on setting up a Textile
manufacturing unit in Delhi & NC$ is prepared and %ritten by me under the noble
guidance of P$%&! "'($') M'*+,& in partial fulfillment of '(A )*+ening, Degree
*xamination& 2-../.2 at 0amia 'illia !slamia& Faculty of *ngineering & Technology&
Ne% Delhi 1 ..--223
! further declare that this is my original %or4 and ! or any other person has not submitted
this report to any 5ni+ersity hitherto for the a%ard of any diploma or degree3

D'-.:
P*'/.: (Tejpal Singh)
Roll No. 09MBA152
Enrollment No. 09-
105
CERTIFICATE
! certify that this Pro"ect eport entitled #A F.'0+1+*+-2 0-342 %) 0.--+)5 36 ' T.7-+*.
(')3&'/-3$+)5 3)+- +) D.*8+ & NCR9 de+eloped and submitted by
M$! T.:6'* S+)58 to the Department of '(A )*+ening, Program& Faculty of
*ngineering & Technology& 0amia 'illia !slamia& Ne% Delhi 1 ..--22 is an
original piece of %or43
7e undertoo4 this pro"ect research under my guidance& approach and super+ision3
To the best of my 4no%ledge this %or4 has not been published& submitted either in part or
full for any degree or diploma to this 5ni+ersity or any other 5ni+ersity or
institution3
Ne% Delhi
(P$%&! "'($') M'*+,)
AC"NO#LEDGEMENTS
The Final 9ear students of '(A )*+ening, program at 0amia 'illia !slamia are re:uired
to underta4e a pro"ect %or4 in partial fulfilment of the degree3
! %ould li4e to than4 P$%&! "'($') M'*+,& my guide& %ho initiated me into this pro"ect
and encouraged me to consult the rele+ant literature3
;ast but not the least& ! extend my than4s to all my family members& friends and to all
others of their 4ind co/operation and help in bringing out this pro"ect %or43
D'-.:
N.; D.*8+: (T.:6'* S+)58)
ABSTRACT
!ndian textile industry is one of the ma"or sectors of !ndian economy largely contributing
to%ards the gro%th of the country<s industrial sector3 Textiles sector contributes to .8 per
cent of industrial production& 8 per cent of National =DP and .-3>6 per cent of country<s
export earnings3 The opening up of the sector through liberalisation polices set up by the
!ndian =o+ernment ha+e gi+en the much/needed thrust to the !ndian textile industry&
%hich has no% successfully become one of the largest in the %orld3 Textile sector in !ndia
pro+ides direct employment to o+er 62 million people and holds the second position after
the agriculture sector in pro+iding employment to the masses3
=ro%ing at a rapid pace& the !ndian 'ar4et is being floc4ed by foreign in+estors
exploring in+estment purposes and %ith an increasing trend in the demand for the textile
products in the country& a number of ne% companies and "oint +entures are being set up in
the country to capture ne% opportunities in the mar4et3
Currently the !ndian Textile !ndustry is estimated to be around 5?@ 22 billion and is also
pro"ected to be around 5?@ ..2 billion by the year 2-.23 The current !ndian domestic
mar4et of textile is expected to be increased to 5?@ >- billion by 2-.2 from the current
5?@ 683> billion3 !ndian industry of Textiles can be di+ided into se+eral segments& some
of %hich can be listed asA Cotton Textiles& ?il4 Textiles& Boollen Textiles& eadymade
=arments& 7and/crafted Textiles& 0ute and Coir& etc3
Today most of the international brands li4e 'ar4s & ?pencer& 0C penny& =ap ha+e started
procuring most of their fabrics from !ndia3 !n fact& Bal/'art& %ho had procured textile
%orth @ 2-- million last fe% year& intends to procure @ 6 billion %orth of textile in the
years to follo%3
!n this context ! ha+e ta4en up this study on setting up a Textile 'anufacturing 5nit3 The
main goal %as to assess the economic +iability of the proposed business3 The study
pro+ides a thorough analysis of the business opportunity& including a loo4 at all the
possible roadbloc4s that may stand in the %ay of the success of the proposed Textile
5nit3
P a g e | > A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
TABLE OF CONTENT
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Cuestionnaire for exporter3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333
Cost of Pro"ect & 'eans of Finance3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333
Assumption 333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333
P a g e | D A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
CHAPTER ? 1
TEXTILE INDUSTRY: INTRODUCTION
The textile industry occupies a uni:ue place in our country3 Ene of the earliest to come
into existence in !ndia& it accounts for .8F of the total !ndustrial production& contributes
to nearly 6-F of the total exports and is the second largest employment generator after
agriculture3
Textile !ndustry is pro+iding one of the most basic needs of people and the holds
importanceG maintaining sustained gro%th for impro+ing :uality of life3 !t has a uni:ue
position as a self/reliant industry& from the production of ra% materials to the deli+ery of
finished products& %ith substantial +alue/addition at each stage of processingG it is a ma"or
contributor to the country<s economy3
!ts +ast potential for creation of employment opportunities in the agricultural& industrial&
organiHed and decentraliHed sectors & rural and urban areas& particularly for %omen and
the disad+antaged is note%orthy3
Although the de+elopment of textile sector %as earlier ta4ing place in terms of general
policies& in recognition of the importance of this sector& for the first time a separate Policy
?tatement %as made in .IJ2 in regard to de+elopment of textile sector3 The textile policy
of 2--- aims at achie+ing the target of textile and apparel exports of 5? @ 2- billion by
2-.2 of %hich the share of garments %ill be 5? @ 22 billion3 The main mar4ets for !ndian
textiles and apparels are 5?A& 5A*& 5K& =ermany& France& !taly& ussia& Canada&
(angladesh and 0apan3
The main ob"ecti+e of the Textile Policy 2--- is to pro+ide cloth of acceptable :uality at
reasonable prices for the +ast ma"ority of the population of the country& to increasingly
contribute to the pro+ision of sustainable employment and the economic gro%th of the
nationG and to compete %ith confidence for an increasing share of the global mar4et3
P a g e | J A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
C3$$.)- S/.)'$+%
De+eloping countries %ith both& textile and clothing capacity may be able to prosper in
the ne% competiti+e en+ironment after the textile :uota regime of :uantitati+e import
restrictions under the multi/fiber arrangement )'FA, came to an end on .st 0anuary&
2--2 under the BTE Agreement on Textiles and Clothing3
As a result& the textile industry in de+eloped countries %ill face intensified competition in
both their export and domestic mar4ets3 7o%e+er& the migration of textile capacity %ill
be influenced by ob"ecti+e competiti+e factors and %ill be hampered by the presence of
distorting domestic measures and %ea4 domestic infrastructure in se+eral de+eloping and
least de+eloped countries3
The elimination of :uota restriction %ill open the %ay for the most competiti+e
de+eloping countries to de+elop stronger clusters of textile expertise& enabling them to
handle all stages of the production chain from gro%ing natural fibers to producing
finished clothing& The E*CD paper says that %hile lo% %ages can still gi+e de+eloping
countries a competiti+e edge in %orld mar4ets& time factors no% play a far more crucial
role in determining international competiti+eness3 Countries that aspire to maintain an
export/led strategy in textiles and clothing need to complement their cluster of expertise
in manufacturing by de+eloping their expertise in the higher +alue/added ser+ice
segments of the supply chain such as design& sourcing or retail distribution3 To pursue
these a+enues& national suppliers need to place greater emphasis on education and
training of ser+ices/related s4ills and to encourage the establishment of "oint structures
%here domestic suppliers can share mar4et 4no%ledge and offer more integrated
solutions to prospecti+e buyers3
The textile industry is undergoing a ma"or reorientation to%ards non/clothing
applications of textiles& 4no%n as technical textiles& %hich are gro%ing roughly at t%ice
rate of textiles for clothing applications and no% account for more than half of total
textile production3 The processes in+ol+ed in producing technical textiles re:uire
P a g e | I A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
expensi+e e:uipments and s4illed %or4ers and are& for the moment& concentrated in
de+eloped countries3 Technical textiles ha+e many applications including bed sheetsG
filtration and abrasi+e materialsG furniture and healthcare upholsteryG thermal protection
and blood/absorbing materialsG seatbeltsG adhesi+e tape& and multiple other specialiHed
products and applications3 !ndia must ta4e ade:uate measures for capturing its mar4et by
promoting research and de+elopment in this sector& so that it gets the first mo+erLs
ad+antage3
Mision 2-.- for textiles en+isaged gro%th in !ndian textile economy from the current 5?
@ 6D billion to @ J2 billion by 2-.-G creation of .2 million ne% "obs in the textile sectorG
and moderniHation and consolidation for creating a globally healthy and a highly
competiti+e textile industry3
There are opportunities as %ell as challenges for the !ndian textile industry in the post/
'FA era3 (ut !ndia has natural ad+antages %hich can be capitaliHed on strong ra%
material base / cotton& man/made fibers& "ute& sil4G large production capacity )spinning /
2.F of %orld capacity and %ea+ing / 66F of %orld capacity but of lo% technology,G +ast
pool of s4illed manpo%erG entrepreneurshipG flexibility in production processG and long
experience %ith 5?N*5 )*uropean 5nion,3 At the same time& there are constraints
relating to fragmented industry& constraints of processing& :uality of cotton& concerns o+er
po%er cost& labor reforms and other infrastructural constraints and bottlenec4s3 *3g3& cost
of po%er %as s3 J per garment in !ndia %hereas in China it %as only s3 2 per garment3
Further& for the benefit of exporters& there should be a state/o%ned cargo shipping
mechanism3 ?e+eral initiati+es ha+e already been ta4en by the go+ernment to o+ercome
some of these concerns including rationaliHation of fiscal dutiesG technology 5pgradation
through the Technology 5pgradation Fund ?cheme )T5F?,G setting up of Apparel Par4sG
and liberaliHation of restricti+e regulatory practices3
P a g e | .- A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
L'-.0- ).;0 &$%( -8. T.7-+*. 0./-%$!
.3 'inistry of finance has added .>2 ne% textile products under duty dra%bac4
schedule3 The ne% products included %ool tops& cotton yarn& acrylic yarn& +iscose
yarn& +arious blended yarnNfabrics& fishing nets etc3 Further& the existing entries in
the dra%bac4 schedule relating to garments ha+e been expanded to create separate
entries of garments made up of )., cottonG )2, man made fiber blend and )6,
''F3 ?eparate rates ha+e been prescribed for these categories of garments on the
basis of composition of textiles3
23 After the phasing out of :uota regime under the multi/fibre pact& !ndia can
en+isage its textile sector becoming @.--b industry by 2-.23 This %ill include
exports of @2-b3 The proposed targets %ould be achie+ed pro+ided reforms are
initiated in textile sector and local manufacturers adopt measures to impro+e their
competiti+eness3 A 2/pronged strategy aiming to attract FD! by ma4ing reforms in
local mar4et& replacement of existing indirect taxes %ith a single nation%ide MAT&
liberaliHation of contract norms for textile and garments units& elimination of
restrictions that cause poor operational and organiHational performance of
manufacturers& %as suggested3
63 Proposals for moderniHation of NTC mills ha+e been made to the consultati+e
committee members& including formation of a committee of experts to impro+e
management of these mills3 *+en the present status of "ute industry %as under the
scanner of the consultati+e committee3
83 The =o+ernment had announced change from the +alue/based dra%bac4 rate
hitherto follo%ed to a %eight/based structure for textile exports that %ill
discourage ra% material exports and also curtail the scope for misusing the
dra%bac4 claims by boosting in+oice +alue of exports3
P a g e | .. A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
CHAPTER <
INDUSTRY OVERVIE# & PERFORMANCE
?pinning is the con+ersion of fibers into yarn3 These fibers can be natural fibers )cotton,
or manmade fibers )polyester,3 ?pinning also entails production of manmade filament
yarn )yarn that is not made from fibers,3 Final product of spinning is yarn3 Cotton +alue
chain starts from =inning that adds +alue to it by separating cotton from seed and
impurities3 ?pinning is the foundation process and all the subse:uent +alue additions i3e3
Bea+ing& Knitting& Processing& =arments and 'ade ups& depend upon it3 Any +ariation in
:uality of spinning product directly affects the entire +alue chain3
P$%43/- C8'$'/-.$+C'-+%)
The process of ma4ing fabric from ra% cotton is a long one and consists of +arious
stages3 There are t%o technologies a+ailable to spin the yarn& first and the foremost is
ing ?pun and second is Epen *nd3 Bith the de+elopment in technology& and changing
need of people %orld o+er different types of cotton yarns li4e .--F cotton compact yarn&
.--F organic cotton yarns& .--F cotton merceriHed yarns etc3 ha+e been de+eloped
%hich are used to manufacture a %ide +ariety of cotton fabrics and clothing3 'ostly ring
spun yarns are used for producing fine :uality clothing& bed linens& bed sheets& bed
spreads& pillo% co+ers etc3& %hile open end yarns are used for manufacturing denim %ear&
to%els& etc This is similar to treating different diseases %ith different medicines3 ;i4e a
%rong medicine can pro+e haHardous for the heath of a patient& in a similar %ay a %rong
choice of yarn %ill result in the creation of the %rong type of fabric or clothing3
The basic difference bet%een the yarns is their count3 Different counts are used to ma4e
different type of fabrics3 !n some cases& the cotton yarn is blended %ith some other yarn
in different ratios to pro+ide different effects li4e shining or to lend more elasticity to the
yarn3 !t is the yarn count and the t%isting mode of the yarn that actually determines the
P a g e | .2 A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
o+erall strength and loo4 of the manufactured fabric3 .--F cotton compact yarn and
.--F cotton merceriHed yarns ha+e less hairiness and the fabric made from these is of
fine :uality are is used for manufacturing luxury clothing and bedding The count of 9arn
can +ary from D0 -% BD0 & the higher the number& the finer the yarn is3
T8. I)4+') T.7-+*. ')4 S6+))+)5 +)430-$2
The !ndian textile industry is one the largest and oldest sectors in the country and among
the most important in the economy in terms of output& in+estment and employment3 The
sector employs nearly 62 million people and after agriculture& is the second/highest
employer in the country3 The !ndian ?pinning !ndustry is an integral part of the !ndian
Textile !ndustry3
!ndia claims to be the second largest manufacturer as %ell as pro+ider of cotton
yarn and textiles in the %orld
!ndia holds around 22 percent share in the cotton yarn industry across the globe
!ndia contributes to around .2 percent of the %orld<s production of cotton yarn
and textiles
!ndia co+ers >. percent of the international textile mar4et
!n terms of spindleage& the !ndian textile industry is ran4ed second& after China&
and accounts for 26F of the %orldLs spindle capacity
S6+))+)5 C%(6')+.0 +) I)4+'
The spinning industry is dominated by large units and it has been able to undergo
significant moderniHation since the .II-s3 The main factors behind the moderniHation
include lo%ering of custom duties and other restrictions on imports of machinery and
e:uipment and lo%ering of restrictions on imports and exports of ra% cotton and yarn3
The spinning industry& %hich is dominated by medium and large units producing more
than I- percent of the output and total +alue added3 During an early period of policy
reform ).IJ61.II-,& the demand increased due to spurt in exports& %hich caused better
utiliHation of existing spindles and led to reduction in idle capacity3 During later phase
).II-12--2,& the in+estment in ne% spindles increased at a +ery rapid rate3 This lead to
rise in efficiency of the %or4ing spindles and relati+e producti+ity of %or4ing spindles
compared to the most recent technology impro+ed o+er time
The units in spinning sector are relati+ely less as most of the units in this segment belong
to large sector3 This becomes clear as units belonging to cotton and synthetic spinning in
terms of +alue added accounts for 2238 per cent in the total +alue added in textile and
clothing sector3 The high share in +alue added compared to units is mainly because of
dominance of medium and large units in spinning sector3 The share of large units in total
+alue addition in cotton and synthetic spinning sector accounts for J>3. per cent3
A fe% of the large spinning mills %ith their capacity areA
Company Capacity
Mardhaman =roup J&--&--- ?pindles
Nahar =roup 6&D-&--- ?pindles
(annari Amman ?pinning 'ills ;imited 2&2-&--- ?pindles
?angam =roup .&I6&I2- ?pindles
'al%a Cotton ?pinning 'ills .&8-&--- ?pindles
?ambandam ?pinning 'ills ;td .&.-&--- ?pindles
There are.J68 cottonNman/made fiber textile mills )non/?mall ?cale, in the country %ith
6D3-D million spindles& 8& JI&D.J rotors and 2>&228 looms3
E/%)%(+/ -$.)40
The Textile industry has been %itnessing a massi+e upsurge in the recent years3 The
industry siHe has expanded from 5?D 8I billion in 2-->/-D to 5?D >2 billion in 2--I/
.-3 During this era& the local mar4et %itnessed a gro%th of 5?D .2 billion& that is& from
5?D 6- billion to 5?D 82 billion
D%(.0-+/ P$%43/-+%)
The Production of 9arn has been on the rise3 a% material has been less %ith respect to
the demand for ?pun 9arn3 The prices of Cotton 7an4 9arn increased by 6232F in Ect3
2-.- in comparison to the prices of Ect3 2--I3
The consumption of the a% material i3e3 Cotton and the production of yarn ha+e been
going up gradually3
The share of medium and large units in total +alue added of the sector is I23J per cent
%hereas their share in +alue of output is I-32 per cent3 These units employ around >>
percent of the total labor engaged in the spinning sector3
P a g e | .> A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
F%$.+5) E76%$-0
The textiles industry accounts for .8F of industrial production and accounts for nearly
1E 08'$. of the country<s -%-'* .76%$-0 1'0,.-3 The =o+ernment fixed the target for
2--J/-I at US F A!55 1+**+%) an increase of 2-F o+er the actual performance of 5?@
223.8 billion in 2--D/-J& for export of textiles3 7o%e+er& no targets %ere fixed for 2--I/
2-.-3
At present& !ndian textile industry holds 632 to 8 percent share in the total textile
production across the globe and 6 percent share in the export production of clothing3 5?A
is 4no%n to be the largest purchaser of !ndian textiles3
Nearly half of !ndian export %as accounted by eight countries namely (angladesh& *gypt&
China& Portugal& !taly& Tur4ey& !ran and ?outh Korea ussia )!n order of export +alue,3
P a g e | .D A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
;ast year& the proportion %as accounted by only se+en countries namely Tur4ey&
(angladesh& (raHil& *gypt& !taly& ?outh Korea and Peru
P a g e | .J A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
The prices of 9arn export ha+e been increasing %ith no sign of relief due to the recent
increase in demand after a lull period in -J/-I3
SIC"NESSGCLOSURE OF TEXTILE MILLS
The incidence of sic4ness and closure in the organiHed textiles industry is a matter of
concern3 Textiles being the oldest and the largest industry of the country& it is but natural
that at any gi+en point of time some textiles units could be lying sic4 N closed3 Ene main
reason of sic4ness is structural transformation resulting in the composite units in the
organiHed sector losing ground to po%er looms in the decentraliHed sector& on account of
the latter<s greater cost effecti+eness3 Ether causes of sic4nessN closure of the industry
include lo% producti+ity due to lac4 of moderniHation& stagnation in demand and inability
of some units to expand in the export mar4et& increase in the cost of inputs& difficulties in
getting timely and ade:uate %or4ing capital and the a+ailability of po%er& labour
disputes& excess capacity& failure to di+ersify in emerging areas& poor management& etc3
P a g e | .I A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
The ?pinning !ndustry in !ndia is on set to hit the global mar4et %ith other fabrics
as %ell li4e the cotton textiles %ith its enthusiasm and consistency in %or43 !t has already
reached a phenomenal status in !ndia by beating the obstacles that caused a do%nfall
since past fe% years and is no% on its %ay to co+er a %ider area in the spinning sector3
P a g e | 2- A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
S-$'-.5+/ A)'*20+0
The !ndian textile industry is one of the oldest and most significant industries in the
country3 !t accounts for around 8 per cent of the gross domestic product )=DP,& .8 per
cent of industrial production and o+er .6 per cent of the country<s total export earnings3
!n fact& it is the largest foreign exchange earning sector in the country3 'oreo+er& it
pro+ides employment to o+er 62 million people3 The !ndian textile industry is estimated
to be around 5?@ 22 billion and is li4ely to reach 5?@ ..2 billion by 2-.23 The domestic
mar4et is li4ely to increase from 5?@ 683> billion to 5?@ >- billion by 2-.23 !t is
expected that !ndia<s share of exports to the %orld %ould also increase from the current 8
per cent to around D per cent during this period3
Textile industry pro+ides one of the most fundamental necessities of the people3 !t is an
independent industry& from the basic re:uirement of ra% materials to the final products&
%ith huge +alue/addition at e+ery stage of processing 3 !nfact & it is estimated that one out
of e+ery six households in the country directly or indirectly depend on this sector3
7ere %e analyHe the sector<s dynamics through P%$-.$H0 &+=.?&'/-%$ (%4.*!
1) T8$.'- %& N.; .)-$')-0
!ndian Textile !ndustry is +ery dependent on personal contacts and experience3 The ne%
actors %ould ha+e to bring some 4ind of client base along %ith the ne% establishment3
Product differentiation may constitute a barrier of entry as manufacturers are hea+ily
dependent on references and %ord of mouth3 Bithout any established client portfolio it is
difficult to attract& endure increased costs in creating sample collections to sho% potential
customers3 7ence& in startup phase costs are not only associated %ith the manufacturing
re:uired but also %ith the costs for designers and creating samples3 !n the sense of
reference dependency& barriers of entry are considered as +ery strong3
As the ne% entrant has limited experience in textile manufacturing and there are no built
up relationships %ith customers& they might experience disad+antages relati+e to the
P a g e | 2. A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
established competitors3
=o+ernmental policies do affect the business en+ironment to some extent3 An example of
this is subsidies& %hich are offered to companies establishing production in certain
regional areas3
!n addition to these potential barriers of entrance& ne% entrants may ha+e second thoughts
about entering the ne% mar4et& if existing manufacturers may retaliate on ne% entrants3
The !ndian textile industry though& has such a large population of manufacturers so any
ne% actors may hardly be noticed by the competition& %hich minimiHes the ris4 for
retaliation3
) B'$5'+)+)5 6%;.$ %& /30-%(.$0 (4.(')4 0/.)'$+%)
=lobal textile & clothing industry is currently pegged at around 5?@ 88- bn3 5? and
*uropean mar4ets dominate the global textile trade accounting for >8F of clothing and
6IF of textile mar4et3 Bith the dismantling of :uotas& global textile trade is expected to
gro% )as per 'c Kinsey estimates, to 5?@ >2- bn by 2-.2 )2 year CA= of .-F,3
Although China is li4ely to become the <supplier of choice<& other lo% cost producers li4e
!ndia %ould also benefit as the o+erseas importers %ould try to mitigate their ris4 of
sourcing from only one country3 The t%o/fold increase in global textile trade is also li4ely
to dri+e !ndia<s exports gro%th3 !ndia<s textile export )at 5?@ .2 bn in 2--2, is expected
to gro% to 5?@ 8- bn& capturing a mar4et share of close to JF by 2-.23 !ndia& in
particular& is li4ely to benefit from the rising demand in the home textiles and apparels
segment& %herein it has competiti+e edge against its neighbors3
7ence& the bargaining po%er of customers is strong3 For that reason& it is of importance
for a producer of apparel to differentiate their products or production so it %ill not
compete %ith price as primary mean3
Differentiation is accomplished either by :uality or ser+ice3 Differentiation can be
considered as especially important in the !ndian textile industry since contracts are
usually set on short/term basis and are rarely set more than six months ahead3 7ence&
there is a need to tie the customer to manufacturers %ithout the need of explicit contracts3
And Thus& the bargaining po%er for the
Customer is impro+ed3
>) B'$5'+)+)5 6%;.$ %& 0366*+.$0 (0366*2 0/.)'$+%)
!ndia is a country %here %e ha+e numerous players in textile industry %hich all are
+aried in terms of siHe and po%er3 There has been increase in production and supply of
textile products in last fe% decades globally& mainly due to rapidly changing social and
economic structure of the countries %orld%ide3 !n past fe% years& especially after the
remo+al the trade related tariffs and non tariff barriers in 2--2& Asian countries such as
!ndia& china& 7ong Kong and 0apan ha+e emerged as ma"or players in this particular
industry& mainly due to their changes on economic front and infrastructure de+elopments3
The large number of a+ailable suppliers in !ndia gi+es an initial indication of a %ea4
bargaining position for the supplier group3
Additionally& the supplier group lac4s s%itching costs and has a lo% le+el of product
differentiation3 This leads to great possibilities for textile manufacturers to scout the
supplier group for best terms and prices for production3 As a result& manufacturers can
contact a large number of suppliers and play suppliers against each other3 ?uch beha+ior
%ea4ens the bargaining po%er for suppliers and as a result pushes prices do%n and ma4es
prices similar among suppliers3
An ad+antage %hich the !ndian ?uppliers group ha+e capitaliHed on is& due to their ability
to integrate for%ard in +alue added chain& they ha+e achie+ed a better bargaining position
to%ards textile manufacturing3
As pre+iously seen& companies in the textile and apparel sector ha+e established for%ard
to create +ertically integrated company groups3
Deep relationships bet%een manufacturers and suppliers illustrate ho% important the
textile manufacturing industry is for the supplier group3 An example of this is ho%
suppliers and manufactures interact in acti+ities such as research and de+elopment
)&D,3 (y this process the supplier obtains 4no%ledge on %hat customers do%nstream
in the +alue added chain demands3
@) T8$.'- %& 0310-+-3-. 6$%43/-0
Bhen using such a broad term as Textile& there are ob+ious reasons for identifying
substitute product groups pro+es difficult3
Ef course& there are +ariations in types of clothing and material3 Mariations in textile
segment can also be identified as trends in fashion and styles3 7ence products %ithin the
apparel segment can act as substitutes but the general conclusion still standsG thereLs no
substitute to apparel3
5) C%(6.-+-+=. $+='*$2 ;+-8+) -8. +)430-$2
The textile manufacturing segment in !ndia is made out of numerous manufacturers
%hich all are +aried in terms of siHe and po%er3 !t is a massi+e sector %ith thousands of
companies producing apparel3 The apparent high gro%th rate of total textile exports
indicates that the ri+alry bet%een manufacturers is lo%3 The gro%th rate is high in some
product segments but e+en negati+e in others3 7ence& the ri+alry bet%een apparel
manufacturers is di+erse since they en"oy different gro%th rates3
Additionally& textile as a perishable product group is in the ris4 of temptations to cut
prices %hen demand slac4ens3 For example& %hen there are recessions in the business
cycle apparel prices %ill drop significantly in price3 (oth these factors exemplify and
indicate that the ri+alry bet%een manufacturers is high3
As !ndian apparel manufacturers are pressured to lo%er prices in order to stay
competiti+e %ith companies abroad& the o+erall ri+alry %ithin the industry gets
companies to expand their customer base in order to 4eep profits up3 !t is therefore
reasonable to belie+e that such expansions may occur on the behalf of competitors if
possible& and thereby increase the ri+alry in the industry3
C%--%) B'*')/. S8..- &$%( 001?0 -% 00I?09
001?
0
00?
0>
00>?
0@
00@?
05
005?
0A
00A?
0B
00B?
0I
00I?
09
*xport )lac4
balls,
-32- -3J8 .23.. I3.8 8D3-- 2J3-- J23-- 2-3--
EXPORT OF JUTE GOODS ($0 /$%$.)
00@?05 005?0A 00A?0B 00B?0I 00I?09
EXPORT .>-3D. 6>2366 62.3I8 6683J. 2I.3II
P a g e | 2> A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
SIL" EXPORTS
!tem 2-->/-D 2--D/-J
s Crore s Crore
Natural ?il4 9arn&
Fabrics & 'ade/up
.ID>3I- .28-3I6
eadymade =arments ..ID32. .-I63>D
?il4 Carpet .6236> D23..
?il4 Baste 223DJ .23.2
Total 662I322 2D.J3J>
P a g e | 2D A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
CHAPTER ? >
OBJECTIVE OF THE STUDY
To study and analyse the challenges and opportunities of Textile !ndustry in !ndia3
To e+aluate the scope of setting up a Textile manufacturing unit in Delhi & NC
To present the 'ar4et& Technical and financial details of setting up a ne% Textile unit
in Delhi & NC3
P a g e | 2J A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
CHAPTER? ?@
RESEARCH METHODOLOGY
esearch methodology is considered as the ner+e of the pro"ect3 Bithout a proper %ell/
organiHed research plan& it is impossible to complete the pro"ect and reach to any
conclusion3 The pro"ect %as based on the sur+ey plan3 The main ob"ecti+e of sur+ey %as
to collect appropriate data& %hich %or4 as a base for dra%ing conclusion and getting
result3
T8.$.&%$.J research methodology is the %ay to systematically sol+e the research
problem3 esearch methodology not only tal4s of the methods but also logic behind the
methods used in the context of a research study and it explains %hy a particular method
has been used in the preference of the other methods
R.0.'$/8 4.0+5):
esearch design is important primarily because of the increased complexity in the mar4et
as %ell as mar4eting approaches a+ailable to the researchers3 !n fact& it is the 4ey to the
e+olution of successful mar4eting strategies and programmers3 !t is an important tool to
study buyerLs beha+ior& consumption pattern& brand loyalty& and focus mar4et changes3 A
research design specifies the methods and procedures for conducting a particular study3
According to Kerlinger& #esearch Design is a plan& conceptual structure& and strategy of
in+estigation concei+ed as to obtain ans%ers to research :uestions and to control
+ariance3
T26.0 %& $.0.'$/8 +0:
D.0/$+6-+=. R.0.'$/8
The type of research adopted for study is descripti+e3 Descripti+e studies are underta4en
in many circumstances %hen the researches is interested to 4no% the characteristic of
P a g e | 2I A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
certain group such as age& sex& education le+el& occupation or income3 A descripti+e study
may be necessary in cases %hen a researcher is interested in 4no%ing the proportion of
people in a gi+en population %ho ha+e in particular manner& ma4ing pro"ections of a
certain thing& or determining the relationship bet%een t%o or more +ariables3 The
ob"ecti+e of such study is to ans%er the #%ho& %hat& %hen& %here and ho%$ of the sub"ect
under in+estigation3 There is a general feeling that descripti+e studies are factual and +ery
simple3 This is not necessarily true3 Descripti+e study can be complex& demanding a high
degree of scientific s4ill on part of the researcher3
Descripti+e studies are %ell structured3 An exploratory study needs to be flexible in its
approach& but a descripti+e study in contrast tends to be rigid and its approach cannot be
changed e+ery no% and then3 !t is therefore necessary& the researcher gi+e sufficient
thought to framing research3
K3.0-+%)0 ')4 4./+4+)5 -8. -26.0 of data to be collected and the procedure to be used in
this purpose3 Descripti+e studies can be di+ided into t%o broad categoriesA Cross
?ectional and ;ongitudinal ?ectional3 A cross sectional study is concerned %ith a sample
of elements from a gi+en population3 Thus& it may deal %ith household& dealers& retail
stores& or other entities3 Data on a number of characteristics from sample elements are
collected and analyHed3 Cross sectional studies are of t%o typesA Field study and ?ur+ey3
Although the distinction bet%een them is not clear/ cut & there are some practical
differences& %hich need different techni:ues and s4ills3 Field studies are ex/post/factor
scientific in:uiries that aim at finding the relations and interrelations among +ariables in a
real setting3 ?uch studies are done in li+e situations li4e communities& schools& factories&
and organiHations3
Another type of cross sectional study is sur+ey result& %hich has been ta4en by me3 A
ma"or strength of sur+ey research is its %ide scope3 Detail information can be obtained
from a sample of large population 3(esidesG it is economical as more information can be
collected per unit of cost3 !n addition& it is ob+ious that a sample sur+ey needs less time
than a census in:uiry3 Descripti+e research includes sur+ey and fact finding en:uiries of
different 4inds of the ma"or purpose3 Descripti+e research is description of the state of
affairs& as it exists at present3 The main characteristic of this method is that the researcher
has no control o+er the +ariablesG he can only report %hat has happened or %hat is
happening3 The methods of research utiliHed in descripti+e research are sur+ey methods
of all 4inds including comparati+e and co relational methods3 The reason for using such
needs to be flexile in its approach& but a descripti+e study in contrast tends to be rigid and
its approach cannot be changed e+er no% and then3
D'-' /%**./-+%) (.-8%40:
After the research problem& %e ha+e to identify and select %hich type of data is to
research3 At this stageG %e ha+e to organiHe a field sur+ey to collect the data3 Ene of the
important tools for conducting mar4et research is the a+ailability of necessary and useful
data3
P$+('$2 4'-'A The primary data is collected from department of commerce
=o+ernment of !ndia and handicraft export Promotion Corporation of !ndia3 This data is
export data of last fe% years of handicraft export3
S./%)4'$2 D'-' / The CompanyLs profile& "ournals and +arious literature studies are
important sources of secondary data3
D'-' ')'*20+0 ')4 +)-.$6$.-'-+%)
.3 Pie chart and (ar chart
P+. /8'$-:
This is +ery useful diagram to represent data & %hich are di+ided into a number of
categories3 This diagram consists of a circle of di+ided into a number of sectors& %hich
are proportional to the +alues they represent3 The total +alue is represented by the full
create3 The diagram bar chart can ma4e comparison among the +arious components or
bet%een a part and a %hole of data3
B'$ /8'$-:
This is another %ay of representing data graphically3 As the name implies& it consist of a
number of %hispered bar& %hich originate from a common base line and are e:ual %idths3
The lengths of the bards are proportional to the +alue they represent3
P$.6'$'-+%) %& $.6%$-:
The report %as based on the analysis and presented %ith the findings and suggestions3
The sample of the :uestionnaires is attached %ith the report itself3
CHAPTER < 5
FINDINGS AND DATA ANALYSIS
ORGANISATION
CHART
The Company %ill follo% a F3)/-+%)'* %$5')+C'-+%)'* 0-$3/-3$.! *ach person %ill be
assigned a "ob %ith a specific function and is a specialist in it3 The organiHational chart of
the company isA
;A9E5T EF T7*
CE'PAN9
PED5CT!EN
D*PAT'*NT
T8. 6$%/.00 %& M')3&'/-3$+)5 +)=%*=.0 -8. &%**%;+)5 0-.60:
a% 'aterial )Baste Cotton,
Billo%ing
Teasing
Carding
?implex
?pinning
eeling
(undling
M+7+)5:
There are +arious stages in+ol+ed in 'ixing Department3 The follo%ing are some of the
stages3
First ?tage )Billo%ing,A
!n this process& there is a 'achine named B!;;EB 'achine3 !ts %or4 is to clean %aste
and cleans the pic4ed material3 The 'achine consists of long needles3
?econd ?tate )Teasing,A
!n this stage& there is a 'achine named T*A?!N= 'achine3 !t opens the PC %aste and
cleans it further3 This 'achine also consists of Needles %hich are sharper and installed on
%ooden plates3
Third ?tate )'ixing,A
This is one of the +ital stages of mixing process3 !n this process mixing is done in D-A6-
)i3e3, D-F cotton %aste& 6-F PC Baste3
For the best 'ixture the mixed materials is carried out through the Teasing 'achine3
C'$4+)5:
At the Carding Department& the cotton is completely opened into di+ided yarn3 !t is
cleaned by remo+al of dirtiness and foreign matter and sli+er produced suitable for
subse:uent process3 A ?li+er is one drum full of cotton fibers3 For this process c.N6 and
;C36-- 'achines are used3 The deli+ery rate is 1B (.-.$0 G(+) and the one sli+er %ill be
filled %ithin 82 'in3
S+(6*.7 D.6'$-(.)-:
At the simplex the thic4ness is reduced and the gi+en sli+er is hoist and %ound on the
bobbins3 The production of the simplex depends on the spindle speedG t%ist per inch )tpL,
number of spindles etc3& the %eight of one bobbin is . 4g3 For the process ;F .8-- and
T?.2 'achines are used3 !n one 'achine .2- bobbins are produced3
S6+))+)5 S./-+%):
The Next is the spinning process& %here the ro+ing bobbins are fed to a drafting system&
%hich con+erts ro+ing into yarn3 For this process ;=2N. and ;> 'achines are used
and there is another 'achine 'ET'ANAT uc4 2.C doing the same process but it is
automatic and speed is high3
!t ta4es . hour for 2--- spindles
. spindle O -322 4gs
. shift O .2 hours
Therefore& production
For . shift O 2--- x 322x.2 O 22J- 4gs3
?pinning Department play ma"or role in the production side to produce yarn in +arious
types of counts3
., .--F Cotton 9arn
2, ?taple 9arn
.--F Cotton 9arnA
.--F cotton yarn means %ithout blending )'ixing, and manmade fibers& if the yarn is
produced %ith cotton fiber only& then it is 4no%n as .--F cotton yarn3 This yarn is
generally produced on order3
?taple 9arnA
Bith the blending of manmade fibers li4e polyester& +iscose fibers& staple yearn are
produced3 This type of yarn has more shining and strength3
R..*+)5 S./-+%):
!n the reeling section the yarn from spindles is con+erted into han4s )4nots,3 The eeling
'achine can lodge 2- spindles at a time3 !t ta4es 2- minutes for the production of 2-
4nots %hich is e:ual to 8328 4gs3
The final product of the reeling section is transferred to bundling section3
B3)4*+)5 S./-+%):
This department consists of a 'achine named (5ND;!N= 'achine3 A bundling
'achine can accommodate 2- 4nots at a time3 2- 4nots ma4e a bundle3 The 4nots are
pressed and tightened %ith a help of a t%ine3
2- bundles are ta4en together in a 7DP* bags )7igh Density Poly *thylene, and it is
called as Chippam or a bale3 These bundles are pac4ed properly3
. (undle O 8328 4gs
Therefore 2- bundles O I-3J 4gs )I. 4gs,
Therefore . chippam O I. 4gs
Approximately A0 C8+66'(0 are produced in a shift
#'$.8%30+)5:
The Chippams are then mo+ed to the %arehouse till they are ready to be shipped3 The
=odo%n Keepers maintains a record of the number of units %hich ha+e come in during
e+ery shift and the number of units dispatched to e+ery client3
C5A;!T9
CENTE;
?*CT!EN
The :uality control section plays an important role in the industry3 !t fixes the
standards& super+ises %hether the %or4 is done properly so the :uality cotton is
produced3 The central testing laboratory fixes the proper standards of cotton to be
produced3 The "ob of the unit is to produce cotton according to the prescribed :uality3
J Filters are in+ol+ed here %ith Cuality 'anager as its head3 There is filter for
carding& spinning and simplex %ho loo4s after the %or4 done by the employees3 The
filters come directly under the control of Cuality 'anager3 andom samples are
collected from each shift and are examined by the Cuality 'anager himself e+ery
day3
D.6'$-(.)- F+*-.$ N3(1.$ %& .(6*%2..0
Billo%ing and
Teasing Department . I
Carding Department 2 2I
?pinning Department 2 2I
?implex Department 2 2I
(undling and
eeling Department . I
!n mixing department the :uality control section chec4s %hether the mixing of cotton
is done properly3 !n the next process& it chec4s the sli+ers3 The sli+er must be of A
2'$40 in length3 The carding %aste must not exceed AE of the total cotton3 Apart
from this the simplex department is chec4ed e+ery t%o hours3 This is done main to
control the dra%ing speed of the simplex as re:uired3
PURCHASE
DEPARTMENT
R'; M'-.$+'*0:?
For the production process the Baste Cotton is used as a a% 'aterial3 Daily 1>
1'*.0 are used for production process and each bale is %eighted around J-/I- 4gs
and the three different length of fibers are 8-mm& 88mm are used for production
process& mostly 88m are used as ra% material for production process3
a% materials are purchased on daily basis based on consumption3
M'/8+).$2 ')4 S6'$.0:?
To obtain a material for a department the follo%ing procedure is follo%ed3
., The department filter )head, finds out reasons of repair in the 'achine3
2, 7e reports to the Cuality 'anager
6, Cuality 'anager gi+es the form to store
8, !f it is a+ailable in store& they gi+e it right a%ay if not the form is counter signed
by the Factory 'anager and the =eneral 'anager and for%arded to the Purchase
Department3
2, No% the Purchase is made3
Purchase is usually of three types3 There are
., Through :uotationsA
Purchase of hea+y and expensi+e machinery is done by the mill itself3 They get
:uotations from +arious companies and open a tender3 En a specified date the tender
%ith lo%est cost %ill be selected and purchases made %ith the corresponding
company& mode of payment& mode of deli+ery& insurance etc3 are also discussed there
in3
2, ?pares PurchaseA
Purchase of spares for the machinery is generally done from a dealer already fixed
earlier by the management %ho is mostly the +endor of the machinery3
6, *mergency PurchaseA
The =eneral 'anager is entitled to use his +ested po%ers in case of any emergency
purchase3
DATA ANALYSIS
Do you export textile goods to other countriesP
a3 yes
b3 no
As my sample %as textile exporters so all the respondents are exporting textile goods to
other country
Bhich textile you are exportingP
cotton D
%ool 2
sil4 >
"ute 8
others >
Among my samples D exporters are exporting cotton textile& 2 are exporting %ool textile&
> are exporting sil4& 8 are exporting "ute and other textile goods are exported by >
exporters3
To %hich your export business is most related to3
Australia 2
Canada >
France 8
=ermany D
!taly 2
0apan >
Nether/land 8
5ae 6
53s3a3 J
5343 8
Ether countries 6
The maximum export is going to the France follo%ed by 5K& 5A*& and 0apan and lo%est
export is going to Netherlands leaded by =ermany Australia and !taly3
Do you thin4 that recession affected your businessP
a3 yes
b3 no
All the exporters are affected by this rescission3

!f yes then %hat is the impact on the business
a3 profit .
b3 loss ..
Among the samples only one exporter get profit during the recession rest of .. get losses
in their business3
Bhat is the percentage change in export
a3 .-F increase
b3 2-F increase
c3 6-F increase
d3 'ore than 6- F increase
e3 'ore than 6- F decrease
f3 6-F decrease
g3 2-F decrease
h3 .-F decrease
The ma"or loss in the export of textile goods are 6- F and more %hich can be seen in the
accounts of J exporters3
Did any =o+ernment policy help you to o+ercome from shoc4 of recessionP
a3 yes some ho%
b3 yes by +ery extent
c3 not at all
The interpretation of this :uestion sho%s that there is no effort ta4en by go+ernment for
relief of exporters3

7o% much time you thin4 that you need to o+ercome your losses in business
a3 more than t%o year
b3 less than t%o year but more than one year
c3 less than one year
D2F exporters are thin4ing that it needs more than one year to o+ercome their losses3
Bhat you thin4 %ho are esponsible for this all drama )financial crisis,
a3 5?A
b3 *urope
c3 China
d3 !ndia
All the exporters 4no%s that the recession is caused by 5?A
CHAPTER < A
CONCLUSION
Textile mill is a lucrati+e business3 ?o& if you plan to start a textile mill& start learning
%hat it ta4es to start up and open a textile mill3 9arns for hand 4nitting and industrial
yarns are produced by textile mills3 These are distributed to retailers and %holesalers&
both local and abroad3 Textile mills are buildings %here fibers are interlaced together to
produce fabrics3 Cotton& %ool& synthetic blend and %ool blend yarns are also produced
here3 (ut before being mar4eted& the yarns are tested for :uality as part of the textile
millLs research and enhancement pro"ects3 The mill needs test 4nitters to ensure good
:uality yarns& pattern %riters to produce patterns for fabrics that can be used in clothing
and furnishings& and designers %ho are responsible in pattern graphing and coming up
%ith uni:ue designs3 And to gi+e clients a complete supplier pac4age& textile mills
include technical support for the clientLs con+enience3
(efore embar4ing on a business "ourney& e+ery businessman %ho plans to ha+e a textile
mill as his in+estment must first as4 for ad+ice from those %ith experience3 As %e all
4no%& money is not easy to come by3 A business plan is important if you %ant your
business to be lucrati+e& successful and long lasting3 Epening up a business is exciting& at
the same time& a bit troublesome& e+en though you are already experienced3 =etting a
start up financing for a business is an important mo+e in beginning a textile mill outfit3
*ntrepreneurship is an essential part in the foundation of a ne% economy3 ?tart up
financing is an essential mission in starting a business that e+ery entrepreneur and
business agent ali4e cannot ignore3 !n+estor ready small business plan is indispensable in
starting a business no%adays3
There are things to consider before starting a business li4e textile mill3 'a4ing a pre/
business chec4list is important for you to 4no% the feasibility of such concept3 A
chec4list %ill also help you to 4eep tabs on things you are most li4ely to forget or ignore
in other circumstances3 Cuestions li4e& %hat 4ind of s4ills and experience do you ha+e to
start the business& %hat la%ful structure should you use& ho% you can 4eep the companyLs
business records and %hat 4ind of insurance does the company demand need straight
ans%ers from you3 Ether concerns li4e %hat materials are re:uired in starting the
business& ho% are you going to get paid& %ho or %hat are your resources& %here %ill the
business or company be located& %hat financing aid %ill you need& and last but not the
least& %hat %ill be the companyLs name3
!n creating a ne% company li4e textile mill& you must be specific %ith both the short term
and long term goals3 Cuestions li4e ho% soon the company rise and %ho %ill be your
target mar4et that can aid you in dra%ing your intentions3
Persuade e+eryone that your niche is large and continues to %iden3 This %ill gi+e the
impression that your business has a good future %aiting ahead3 Bhether itLs a locally/
based company or a %eb/based business or both& there is the need to ma4e a research
regarding demand and supply3 Although you can pay others for such ser+ices for
thousands of dollars& you can use the internet to loo4 up directories and sites discussing
such topics %ith only +ery minimal fee3
As the !ndian T&C industry has a significant employment potential and export potential
as en+isioned in the *le+enth Plan& =o+ernment should ta4e steps to address the issues
affecting cost competiti+eness of this industry by adopting the follo%ing measuresA
Q Po%er related issuesA ?upport capti+e po%er generation in the regions suffering from
acute po%er shortage by allo%ing exemption of excise and customs duty paid for li:uid
fuels used for capti+e po%er generation3
Q ;abour issuesA !ncrease labour flexibility especially for the labour intensi+e sectors of
T&C industry by allo%ing contract labour& extending labour %or4ing hours and relaxing
the norms of !ndustrial Disputes Act& .I8D %ith regards the number of %or4ers3
P a g e | >- A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
Q Anomalies in taxes and dutiesA Till systematic corrections in the taxation policy are
implemented& de+ise a mechanism to refund the state le+el taxes and duties to T&C
exporters& the incidence of %hich is on an a+erage 8F of the ex/factory price3 Also re+ise
duty dra%bac4 rates to completely neutraliHe the incidence of all duties paid and the
disbursal of duty dra%bac4 claims should be expedited3
Q Transaction costA Documentary procedures at the ports should be simplified to reduce
the transaction costs incurred by the exporters3 *fforts should be made to increase port
capacity and to impro+e railNroad connecti+ity to ports3
Q a% material related issuesA Formulate a comprehensi+e Fibre Policy to ensure
a+ailability of ra% material )especially cotton and polyester, to the domestic T&C
industry at competiti+e prices3 Till a fibre policy is formulated& support the industry to
reduce its dependence on cotton by abolishing import duty on manmade fibres and their
intermediates& and abolishing excise duty on manmade fibre and their intermediates
P a g e | >. A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
BIBLIOGRAPHY
BebsitesA
.3 %%%3%i4ipedia3com
23 %%%3google3com
63 %%%3scribd3com
83 %%%.texmin3nic3in
(oo4s & ArticlesA
1. 'ar4eting managementA analysis& planning& implementation& and control by
Philip Kotler - Business & Economics - 1988
2. Marketing Management by Philip Kotler Ke!in Keller - Business & Economics
- 2""8
#. $esearch metho%ology& a step-by-step gui%e 'or beginners by $an(it Kumar -
)ocial )cience - 2""*
+. $esearch metho%ology by ,ouglas K. ,etterman - Psychology - 198*
P a g e | >2 A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
ANNEXURE
K3.0-+%))'+$. &%$ .76%$-.$
Name of exporter
Address of exporter
Dear ?ir
Do you export textile goods to other countries
c3 yes
d3 no
Bhich textile you are exportingP
cotton
%ool
sil4
"ute
others
To %hich your export business is most related to3
Australia
Canada
France
=ermany
!taly
0apan
Nether/land
5ae
53s3a3
5343
Ether countries
Do you thin4 that recession affected your business3
c3 yes
d3 no
!f yes then %hat is the impact on the business
c3 profit
d3 loss
Bhat is the percentage change in export
i3 .-F increase
"3 2-F increase
43 6-F increase
l3 'ore than 6- F increase
m3 'ore than 6- F decrease
n3 6-F decrease
o3 2-F decrease
p3 .-F decrease
Did any =o+ernment policy help you to o+ercome from shoc4 of recessionP
d3 yes some ho%
e3 yes by +ery extent
f3 not at all
7o% much time you thin4 that you need to o+ercome your losses in business
d3 more than t%o year
e3 less than t%o year but more than one year
f3 less than one year
Bhat you thin4 %ho are esponsible for this all drama )financial crisis,
e3 5?A
f3 *urope
g3 China
h3 !ndia
COST OF THE PROJECT
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P a g e | >> A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC
ASSUMPTIONS
The construction period %ill last for one year
The company %ill %or4 for 6-- days in 6 shifts and the capacity utiliHation at J2F
Cost heads are considered as per current mar4et trendsA a% material& Po%er& ;abour
Costs and ?ales *xpenses3
!nterest has been calculated at .2F on Bor4ing capital and .6F on Term ;oan3
Paybac4 period has been calculated assuming that %e ha+e ta4en the term loan for D
years& interest being payable on monthly basis3
The preliminary expenses may be %ritten off in 2 e:ual installments3
The firm plans to pay di+idend from the second year at the rate of .-F3
Bages and salaries are expected to increase .-F e+ery year3
P a g e | >D A Feasibility study on setting up a Textile manufacturing unit in Delhi & NC

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