PROJECT REPORT

ON

Marketing Strategies of Aditya
Birla Group



SUBMITTED BY
vijay


SL
NO
CONTENTS PAGE
NO
1
Acknowledgement
1
2
Executive summar
2
!
O"#ectives
!
$
T%e &ndian textile industr
A' Profile [4]
(' Export of textiles [5]
C' Recent world textile trade [6]
)' Export promotion measures [7]
$*+
,
T%e -irst &ndian multinational
A' Profile [8]
(' dit!a "i#ram $irla [%]
C' &ectors of t'e (roup [1)]
)' Or(anisational c'art [11]
E' &ectors of t'e compan! [1*]
.' Product mix [1+]
G' &wot anal!sis [14]
/' ,e! mana(ement personnel [15]
&' -uture plans [16]
0*11
1
Stage 12Plant training3
. /arn manufacturin( process [18]
0. 1efects associated wit' !arn [1%]
2. O$ser"ations [*)]
1. 3ualit! assurance [*)]
E. Reasons and measures for waste [*1]
-. Reasons for production losses and pac#in( complaints [**]
1+*22
+
Stage 2 2Analsis on arn market o- Lud%iana3
. Researc' met'odolo(! [*+]
0. &ample si4e [*4]
2. 5imitations [*4]
1. nal!sis and findin(s [*56+4]
E. O$ser"ations [+56+6]
-. Recommendations [+76+8]
2!*!0
0
Stage ! 2Pre4aration o- a glo"al sourcing re5uirement3
. O"er"iew of (lo$al sourcin( [4)644]
0. Need for (lo$al sourcin( [45]
2. 7'e (lo$al sourcin( process [46]
1. -i"e sourcin( strate(ies [47]
!6*$0
6
Calculations
. 2alculation of fa$ric re8uirement 9*: )66)7 [4%]
0. 2alculation of fa$ric re8uirement )76)8 [5)]
2. 2alculation of !arn re8uirement for )7 6)8 [5)]
$6*,7
17
8%ere can we outsource
. -rom 2'ina [51654]
0. -rom Pa#istan [55657]
2. -rom 7ur#e! [5866)]
,1*17
11
9ecommendations
11
12
(i"liogra4%
11
1!
Conclusion
12


Acknowledgement
7'is pro;ect comes out to $e a (reat source of learnin( and experience. 5ots of efforts
'a"e $een put $! "arious people to ma#e t'is pro;ect a success. Pro;ect wor# can ne"er $e
t'e wor# of an indi"idual. <t is more a com$ination of ideas: su((estions: contri$utions
and wor# in"ol"in( man! fol#s. One of t'e most important parts of writin( a report is t'e
opportunit! to t'an# all t'ose w'o 'a"e contri$uted. 7'e list of expression of t'an#s: no
matter 'ow extensi"e: is alwa!s incomplete and inade8uate. 7'is ac#nowled(ement is no
exception.

-irstl! < express m! 'eartfelt t'an#s to =r. .,. 2'aud'ar! 1irector: 1<R1 for allowin(
me to (o on a two mont' interns'ip and (uidin( me w'ene"er re8uired. < would also ta#e
t'is opportunit! to t'an# m! mentor =iss =anis'a &et'i for 'elpin( me t'rou('out m!
pro;ect.

<t (i"es me immense pleasure to ac#nowled(e m! (ratitude to GRASIM for
accommodatin( me in t'e or(ani4ation and 'ence ena$lin( me to underta#e t'e stud! and
also pro"idin( me wit' an opportunit! to learn from t'e ric' and "aried experience of t'e
people < wor#ed wit'.

<n t'e end < would li#e to t'an# t'e lord and m! parents w'o encoura(ed me and
extended t'eir cooperation in completion of t'is pro;ect.
79N,<N> /O? 55
1<@,R 7R<AE1<
006B*))% 6 *)1*C

1
E:EC;T&<E S;==A9>
7'e w'ole interns'ip of mine was di"ided into + sta(esD
STAGE 1*PLANT T9A&N&NG
s < 'a"e to conduct a sur"e! for an industrial product E!arnF: it was "er! essential for
me to under(o trainin( in t'e plant. < was made to understand w'at is !arn manufacturin(
and !arn mar#etin( all a$out. < was ac8uainted wit' "arious processes t'at 'ow raw
material in t'e form of pol!ester and "iscose is $lended to produce fine 8ualit! P6A !arn.
=oreo"er < also learnt a$out t'e "arious (enuine defects or complaints t'at arise in t'e
mar#et.
STAGE 2 ?ANAL>S&S O. >A9N =A9@ET O. )EL/&
lt'ou(' < was as#ed to ta#e a salesman of t'e compan!Gs a(ent o"er t'ere $ut <
preferred (oin( alone so t'at t'e interaction wit' t'e clients are transparent. < 'ad to (et
t'e clients opinion on compan!Gs performance of >R&<= /RN in terms of product
8ualit!: communication 8ualit!: deli"er! s!stem: pricin( strate(!: customer ser"ice "is6H6
"is its main competitors. < also "isited a few non >rasim customers $ut onl! two of t'em
responded $ac#.
STAGE ! ? GLO(AL O;TSO;9C&NG .O9 G9AS&= &N);ST9&ES
7'is was t'e most c'allen(in( part of m! pro;ect. s t'e researc' and presentation
prepared $! me would $e presented $! m! (uide =r. Ai#as ((arwal to =R A<,R=
RO: t'e o"erall textile 'ead of 1<7/ 0<R5 >RO?P. <n fact 'e is one of t'e ma;or
arms of =R. ,?=R=N>5= 0<R5. < 'a"e to find out t'e !arn and fa$ric
outsourcin( re8uirements of t'e compan!: t'en loo# for t'e ma;or textile producin( and
exportin( nations: t'eir trade relations wit' <ndia: and t'e "arious trade routes


*
O(AECT&<ES
&ta(e 1IPlant trainin(J
>et t'e crux of 'ow !arn is manufactured at t'e ele(ant spinners of (rasim
industries.
>et to #now a$out all t'e defects: complaints: 8uestions t'at can arise in t'e
mar#et.
&ta(e * Inal!sis on !arn mar#et of 5ud'ianaJ
E"aluate (rasimGs !arn "is6H6"is its competitors in t'e 5ud'iana mar#et.
E"aluate t'e mindset of t'e lo!al clients.
7r! to #now t'e perception of t'e newer ones a$out t'e $rand and con"ince t'em
if t'e! are not satisfied.
&ta(e + IPreparation of a (lo$al sourcin( re8uirementJ
Explainin( w'atGs (lo$al sourcin( all a$out and its process.
E"aluatin( t'at is a re8uirement for sourcin(D if !es t'en 'ow muc'.
-i(urin( out w'ere in t'e (lo$al mar#et t'e !arn and fa$ric can $e outsourced
from.

!
T/E &N)&AN TE:T&LE &N);ST9>
7'e <ndian 7extile industr! occupies an important place in t'e econom! of t'e countr!
$ecause of its contri$ution to t'e industrial output: emplo!ment (eneration and forei(n
exc'an(e earnin(s. t present: t'e contri$ution of t'e textile industr! to >1P is a$out 4
percent. 7'e textile industr! pro"ides direct emplo!ment to a$out more t'an +) million
people and is t'e second lar(est emplo!ment pro"ider in <ndia after a(riculture. 7'e
contri$ution of t'is industr! to (ross export earnin(s is a$out +7K and it adds less t'an
1.5 K to t'e (ross import $ill of t'e countr!.
7'e textile industr! is a self 6reliant industr! from t'e production of raw materials to t'e
deli"er! of final products wit' considera$le "alue addition at eac' sta(e of processin(.
7'e industr! was delicensed in 1%%1 and under t'e current polic! no prior (o"ernment
appro"al is necessar! to set up textile mills. 7'e per capita clot' a"aila$ilit! in t'e
countr! 'as increased from *4.1 s8uare meters in 1%%1 to +).7 s8uare meters in *)))6)1.
7'e textile sector includin( t'e (arment sector 'as 'ad a continual increase in t'e -1<
inflow from Rs.8).%% million in *))) to Rs.*+4.7+million in *))*BLanuar!6=a!C.
7extiles account for 14 per cent of <ndiaMs industrial production and around *7 per
cent of its export earnin(s. -rom (rowin( its own raw material Bcotton: ;ute: sil#
and woolC to pro"idin( "alue added products to consumers Bfa$rics and (armentsC:
t'e textile industr! co"ers a wide ran(e of economic acti"ities: includin(
emplo!ment (eneration in $ot' or(ani4ed and unor(ani4ed sectors.
=anmade fi$res account for around 4) per cent s'are in a cotton6dominated
<ndian textile industr!. <ndia accounts for 15K of worldMs total cotton crop
production and records lar(est producer of sil#.
<t is t'e second lar(est emplo!er after t'e a(riculture sector in $ot' rural and
ur$an areas. <ndia 'as a lar(e pool of s#illed low6cost textile wor#ers: experienced
in tec'nolo(! s#ills.
lmost all sectors of t'e textile industr! 'a"e s'own si(nificant ac'ie"ement. 7'e
sector 'as s'own a +.66 per cent 2>R o"er t'e last fi"e !ears.
<ndiaMs cotton textile industr! 'as a 'i(' export potential. 2ost competiti"eness is
dri"in( t'e penetration of <ndian $asic !arns and (re! fa$rics in international
commodit! mar#ets. &mall and flexi$le $atc'es of apparels can $e manufactured

in <ndia and can pro"ide a lar(er "ariet! of casual wear and leisure (arments at
si(nificantl! lower costs.
$
TE:T&LE E:PO9TS AT A GLANCE BP9O<&S&ONALC
Sector Target
2005-
06
(Rs. in Crores/ US$ in Millions)
April-Fe. 200!-
05
April-Fe. 200!-
05
" increase/
#ecrease o$
200!-05 o%er
200&-0!
" target
ac'ie%e#
Rs. US$ Rs. US$ Rs. US$ US$
1
Readymade
Garment
6250 23003.1 4746.4 22772.8 4946.7 -1.0% 4.2% 79.1%
2 Cotton
Textiles
4775 14701.8 3033.6 14302.9 3106.9 -2.7% 2.4% 65.1%
3 an-
made
textiles
1750 6153.4 1269.7 7521.2 1633.8 22% 28.7% 93.4%
4 !ool 500 1214.7 250.6 1513.3 328.7 24.6% 31.1% 65.7%
5 "il# 350 1995.0 411.6 2222.4 482.8 11.4% 17.3% 137.9%
Total
Te(tiles
)&625 !*06+.0 ,*))., !+&&2.* )0!,+.+ 2.*" +.)" **.)"
6
$andi%ra&ts
2350 5767.7 1190.1 4230.7 919.0
-
26.6%
-
22.8%
39.1%
7 Coir 250 322.5 66.5 318.0 69.1 -1.4% 3.8% 27.6%
8 '(te 85 841.6 173.7 973.9 211.6 15.7% 21.8% 248.9%
Total )6&)0 5&,,,.+ )))!2.2 5&+55.& ))6,+.5 -0.&" 5.0" *).*"
Source D .oreign Trade Statistics o- &ndia BPrinci4al Commodities E CountriesC )GC&SF Calcutta
E:PO9TS O. TE:T&LES
t present: t'e exports of textiles Bincludin( 'andicrafts: ;ute: and coirC account for a$out
*)K of total exports from <ndia and are t'e lar(est net forei(n exc'an(e earner for t'e
countr! as t'e import content in textile (oods is "er! little as compared to our ot'er ma;or
export products. -urt'er: t'e export $as#et consists of wide ran(e of items containin(
cotton !arn and fa$rics: man6made !arn and fa$rics: wool and sil# fa$rics: made6ups and
"ariet! of (arments. 7extile exports durin( t'e period of pril6-e$ruar! *))46*))5

amounted to ?&N 116%8.5 million as a(ainst ?&N 1114*.* million durin( t'e same period
in t'e pre"ious !ear: s'owin( an increase of around 5.)K. <t ma! $e added t'at t'e textile
exports declined $! 4.)K in 1st 8uarter pril6Lune: *))4C and $! 11.*K in *nd 8uarter
BLul!6&eptem$er *))4C. 9owe"er: textile exports 'a"e increased $! 4.8K in +rd 8uarter
BOcto$er61ecem$er: *))4C. 7'is indicates t'e downtrend in textile exports 'as $een
re"ersed and t'e! are $ac# on pat' of export (rowt'.
,
9ECENT 8O9L) TE:T&LE T9A)E
7'e ?&N 4+) 0n world trade in textile and apparel 'as under(one a num$er of c'an(es in
first 18) da!s of 8uota free tradin( recentl!. @it' 8uotas no lon(er present t'e $u!ers
'a"e t'e option to source from t'e most efficient sources. &uppliers on t'e ot'er 'and are
increasin( competition from low cost countries.

7'e first 18) da!s of 8uota free tradin( 'as seen an increased imports $! ?& and Lapan:
'owe"er imports $! E? 'as declined due to decreased consumer spendin(. 2'ina as
predicted $! all is t'e ma;or (ainer of t'e 8uota free era. 2'ina exports to ?& increased
$! 61K in t'e first 5 mont's w'ile exports to E? 'a"e increased $! +6K and its s'are in
E? and ?& mar#ets 'a"e increased to 1+K and *7K respecti"el!. <n response to t'is
sur(e of 2'inese imports t'e #e! mar#ets of E? and ?& imposed 8uotas and safe(uards
on a num$er of 2'inese products. <mposition of 8uotas and safe(uards on a num$er of
products alon( wit' a possi$ilit! of similar action on a num$er of ot'er products 'as led
to an uncertaint! w'ic' 'as pre"ented t'e $u!in( communit! from firmin( up t'eir
sourcin( plans on lon( term $asis.

&out' sia comprisin( of <ndia: Pa#istan: 0an(lades' and &ri 5an#a is fast emer(in( as
ma;or trade $loc# post 8uota. 7'e re(ion presentl! 'olds 14K s'are in ?& mar#et and %K
s'are in E? mar#et 'a"e seen exports (rowin( in $ot' t'ese main mar#ets. 7'e re(ionGs
exports 'a"e (rown $! **K in ?& mar#et and 6K in E? mar#et. @it' a$undant
a"aila$ilit! of raw material: spinnin(: wea"in( and #nittin( capacit!: low (armentin( cost
and an entire $ou8uet of #nits: wo"en and 'ome textiles on offer &out' sia is expected
to $e t'e ma;or (ainer of safe(uards on 2'ina and <ndia 'as t'e potential to lead t'e race
and (rowt' of &out' sia.

&uppliers are $uildin( capa$ilities in product de"elopment: lo(istics: desi(n and <7
infrastructure to resist t'is price pressure. 0u!ers: on t'e ot'er 'and: are also loo#in( to
wor# differentl! wit' suppliers. 0u!ers are loo#in( to wor# on lon(6term $asis rat'er
t'an on purel! transactional $asis. 5ar(e companies 'a"e (rown in t'e first 8uarter of
*))5 and as expected are main $eneficiaries of 8uota a$olis'ment. lt'ou(' a num$er of
smaller facilities 'a"e also closed durin( t'e first 6 mont's of *))5 $ut t'is is mainl! due
to consolidation of operation $! a num$er of lar(e companies.


7'e future trade is expected to see man! more drastic c'an(es as compared to t'e first
18) da!s and $u!ers and suppliers need to adapt to "arious c'an(es 'appenin( at
consumer le"el in order to $e successful in t'e post 8uota era.
1
E:PO9T P9O=OT&ON =EAS;9ES
<n order to encoura(e up (radation of textiles sector and to (i"e a fillip to exports of
textile products: some of t'e important initiati"es ta#en are as followsO
iC Announcement o- New Textile PolicD * One of t'e main o$;ecti"es of t'e New
7extile Polic! BN7xP6*)))C announced in No"em$er *))) is to facilitate t'e textile
industr! to attain and sustain a pre6eminent (lo$al standin( in t'e manufacture and export
of clot'in(. 7'e polic! endea"ours to ac'ie"e t'e tar(et of textile and apparel exports
from t'e present le"el to ?& N 5) $illion $! *)1): of w'ic' t'e s'are of (arments will $e
?& N *5 $illion. &u$se8uent to t'e announcement of N7xP6 *))): wo"en se(ment of
read!made (arment sector 'as $een de6reser"ed from &&< and t'e announcement 'as
$een made for de6reser"ation of #nitwear from &&<.
7'e &c'emes applica$le last !ear: suc' as follows: continued durin( t'e !ear for
promotion of exportsO
iiC Tec%nolog ;4*gradation .und Sc%emeD* <n "iew of t'e ur(ent need for steppin( up
t'e process of modernisation and tec'nolo(! up (radation of t'e textile industr! in <ndia:
=inistr! of 7extiles launc'ed a 7ec'nolo(! ?p (radation -und &c'eme B7?-&C for t'e
textile and ;ute industr! for a fi"e !ears time frame w.e.f. )1.)4.1%%% to +1.+.*))4:
pro"idin( for 5K interest reim$ursement in respect of loans a"ailed t'ere under from t'e
concerned financial institutions for in"estments in $enc'mar#ed tec'nolo(! for t'e
sectors of t'e <ndian textile industries specified t'ere under. n amount of Rs. 7148.8%
crore in"ol"in( *6+4 applications 'as $een sanctioned ?p to *%t' -e$ruar!: *))4. Out of
w'ic': an amount of Rs.51*%.81 crore stands dis$ursed to ***7 applicants.
iiiC Li"eraliGation o- .)& PolicD >o"ernment 'as allowed forei(n e8uit! participation
up to 1))K: t'rou(' automatic route: in t'e textile sector wit' t'e onl! exception in
#nitwearP#nittin( sector w'ic' is still reser"ed for &&<. &&< in"estment limit for t'e
#nitwearP#nittin( sector 'as $een increased from Rs.1 crore to Rs. 5 crore w.e.f. %t'
Octo$er: *))1.
BivC Ex4ort Promotion Ca4ital Goods BEPCGC Sc%emeD 7'e sc'eme facilitates import
of capital (oods at 5K concessional rate of dut! wit' appropriate export o$li(ation.
<mport of second 'and capital (oods is allowed under t'e EQ<= Polic! as announced on
+1.)+.*))+.

BvC Advance Licensing Sc%emeD @it' a "iew to facilitatin( exports and to access dut!6
free inputs under t'e sc'eme: standard input6output norms for a$out +)) textiles and
clot'in( export products 'a"e $een prescri$ed and t'is sc'eme remained under operation.
BviC )ut Exem4tion Pass (ook B)EP(C Sc%emeD 1EP0 credit rates 'a"e $een
prescri$ed for 8* textiles and clot'in( products. 7'e nomenclature and rates for 1EP0
entries pertainin( to certain textile products 'a"e $een rationali4ed.
+
BviiC )ut )raw"ack Sc%emeD 7'e exporters are allowed refund of t'e excise and
import dut! suffered on raw materials under t'e sc'eme so as to ma#e t'e products more
competiti"e in t'e international mar#et. 2'an(es in ll <ndustr! 1raw$ac# Rates for !ear
*))+6)4 were last re"ised on *%.)1.*))4: w'ic' came into effect from )%.)*.*))4. 7'ese
c'an(es were effected conse8uent on reduction in 0asic customs dut! from *5K to *)K
and a$olition of &1 B&pecial dditional 1ut!C.
BviiiC Construction o- A44arel &nternational =artD pparel Export Promotion 2ouncil
is constructin( an pparel <nternational =art at >ur(aon wit' assistance from
>o"ernment. -or t'is purpose a (rant of Rs. 15 crore was released durin( t'e !ear *))16
)* and of Rs. +) crore 'as $een released durin( t'e !ear *))+6)4. 7'e total area of t'e
plot is 5 acres and it is proposed to $uild an pparel <nternational =art B<=C 2omplex
and *5)6+)) s'owrooms also w'ic' will $e allotted to t'e exporters. 7'is will pro"ide a
world class facilit! to t'e apparel exporters to s'owcase t'eir products and will ser"e as
one stop s'op for reputed international $u!ers. 7'e wor# for construction of apparel mart
is in pro(ress. 7'e apparel international mart is expected to start functionin( from
No"em$erP1ecem$er.
BixC Setting u4 o- modern la"oratoriesD 7'e =inistr! of 7extiles 'as assisted t'e 7extile
2ommittee in settin( up of modern textile la$oratories to ensure t'at t'e textiles exported
from t'e countr! meet all international en"ironmental standards.
BxC A44arel Park -or Ex4orts Sc%emeD centrall! sponsored sc'eme titled Rpparel
Par#s for Exports &c'emeR 'as $een launc'ed. 7'e sc'eme is intended to impart focussed
t'rust to settin( up of apparel manufacturin( units of international standards at potential
(rowt' centres and to (i"e fillip to exports. &ince t'e inception of sc'eme in =arc' *))*:
ele"en Pro;ect Proposals 'as $een sanctioned for settin( up pparel Par#s at 7ronica 2it!
S ,anpur B?.P.C: &urat B>u;aratC: 7'iru"anant'apuram B,eralaC: Aisa#'apatnam Bnd'ra
Prades'C: 5ud'iana BPun;a$C: 0an(alore B,arnata#aC: 7irupur S ,anc'ipuram B7amil
NaduC: &ET: <ndore B=ad'!a Prades'C and =a'al BLaipur: Ra;ast'anC.


T/E 1
ST
&N)&AN =;LT&NAT&ONAL
CO=PAN> P9O.&LE
7'e dit!a 0irla >roup is <ndiaMs first trul! multinational corporation. >lo$al in "ision:
rooted in <ndian "alues: t'e >roup is dri"en $! a performance et'ic pe((ed on "alue
creation for its multiple sta#e'olders. ?&N 8.+ $illion con(lomerate: wit' a mar#et
capitali4ation of ?&N 14 $illion: it is anc'ored $! an extraordinar! force of 7*:)))
emplo!ees $elon(in( to o"er *) different nationalities. O"er +) per cent of its re"enues
flow from its operations across t'e world. 7'e >roupMs products and ser"ices offer
distincti"e customer solutions. <ts 7* state6of6t'e6art manufacturin( units and sectoral
ser"ices span <ndia: 7'ailand: <ndonesia: =ala!sia: P'ilippines: E(!pt: 2anada: ustralia
and 2'ina.
premium con(lomerate: t'e dit!a 0irla >roup is a dominant pla!er in all of
t'e sectors in w'ic' it operates. &uc' as "iscose staple fi$re: non6ferrous metals: cement:
"iscose filament !arn: $randed apparel: car$on $lac#: c'emicals: fertili4ers: spon(e iron:
insulators and financial ser"ices.
T/E N;=(E9S GA=E
DD
7'e world No. 1 in "iscose staple fi$re
DD
7'e worldMs lar(est sin(le location palm oil producer
DD
non6ferrous metals power'ouse and amon( t'e worldMs most cost efficient
producers of aluminium and copper
DD
7'e worldMs lar(est sin(le location world6scale copper smelter
DD
7'e worldMs No. 1 in insulators: wit' its ;oint "enture wit' N>, of Lapan
DD
>lo$all!: t'e fourt' lar(est producer of car$on $lac#
DD
7'e 11t' lar(est cement producer in t'e world and t'e se"ent' lar(est in sia
DD
<ndiaMs premier $randed (arments pla!er
DD
mon( t'e worldMs $est ener(! efficient fertili4er plants
DD
<ndiaMs second lar(est producer of "iscose filament !arn
DD
7'e No. * pri"ate sector insurance compan!: and t'e fourt' lar(est asset mana(ement

compan! in <ndia
0
Adita <ikram (irlaD Putting &ndia on t%e world ma4
formida$le force in <ndian industr!: =r. dit!a 0irla dared to dream of settin( up a
(lo$al $usiness empire at t'e a(e of *4. 9e was t'e first to put <ndian $usiness on t'e
world map: as far $ac# as 1%6%: lon( $efore (lo$alisation $ecame a $u44word in <ndia.
<n t'e t'en "i$rant and free mar#et &out' East sian countries: 'e "entured to set up
world6class production $ases. 9e put <ndian $usiness on t'e (lo$e: ** !ears $efore
economic li$erali4ation was formall! introduced $! t'e former Prime =inister: =r.
Narasim'a Rao and t'e former ?nion -inance =inister: 1r. =anmo'an &in('. 9e set up
1% companies outside <ndia: in 7'ailand: =ala!sia: <ndonesia: t'e P'ilippines and E(!pt.
?nder 'is stewards'ip: 'is companies rose to $e t'e worldMs lar(est producer of "iscose
staple fi$re: t'e lar(est refiner of palm oil: t'e t'ird lar(est producer of insulators and t'e
sixt' lar(est producer of car$on $lac#. <n <ndia: t'e! attained t'e status of t'e lar(est
sin(le producer of "iscose filament !arn: apart from $ein( a producer of cement: (re!
cement and ra!on (rade pulp. 7'e >roup is also t'e lar(est producer of aluminium in t'e
pri"ate sector: t'e lowest first cost producers in t'e world and t'e onl! producer of linen
in t'e textile industr! in <ndia.
t t'e time of 'is untimel! demise: t'e >roupMs re"enues crossed Rs.15: ))) crore
(lo$all!: wit' assets of o"er Rs.16: ))) crore: comprisin( of 55 $enc'mar# 8ualit! plants:
an emplo!ee stren(t' of 75:))) and a s'are'older communit! of 6)):))).
=ost importantl!: 'is companies earned respect and admiration of t'e people: as one of
<ndiaMs finest $usiness 'ouses: and t'e first <ndian <nternational >roup (lo$all!. 7'rou('
t'is outstandin( record of enterprise: 'e 'elped create enormous wealt' for t'e nation:
and respect for <ndian entrepreneurs'ip in &out' East sia. <n 'is time: 'is success was
unmatc'ed $! an! ot'er industrialist in <ndia.
7'at <ndia attains respecta$le ran# amon( t'e de"eloped nations was a dream 'e fore"er
c'eris'ed. 9e was proud of <ndia and too# e8ual pride in $ein( an <ndian.

6
T/E <A9&O;S SECTO9S T/AT T/E G9O;P &S &NTO A9E AS
.OLLO8SD
5?=<N<?=
2OPPER
2E=EN7
2R0ON 052,
7EQ7<5E&
-ER7<5<&ER&
&PON>E <RON
=<N<N>
<N&?57OR&
P5= O<5
>&
&O-7@RE
0PO
-<NN2E N1 <N&?RN2E
7E5E2O=
29E=<25&


17
A)&T>A (&9LA G9O;PHS O9GAN&IAT&ONAL C/A9T

?57R
7E29
2E=EN7
<N1O
>?5-
-ER7<5<&ER
&
1<7/
0<R5
N?AO
9<N152O
<N1?&7R<E
&
>R&<=
<N1?&7R<E
&
1<7/
0<R5
>RO?P

11

<A9&O;S SECTO9S T/AT T/E CO=PAN> &S &NTOO

29E=<25&
&PON>E
<RON 2E=EN7
A<&2O&E
&7P5E
-<0RE
7EQ7<5E&
>R&<=

12




Product mix B277$* 7,C O- G9AS&= &N);ST9&ES

1!
S8OT ANAL>S&S O. T/E CO=PAN>
Strengt%s
Part of 1<7/ 0<R5 >RO?P
0rand name
Presence across t'e "alue c'ain
1e"elop and mana(e relations'ips wit' premium clients

8eaknesses
5ac# of application of modern <7 s!stems
5ac# of expertise in merc'andise de"elopment: (arment desi(n and
manufacturin(.
5ocated in one of t'e lesser #nown de"eloped towns in <ndia: awa! from
(armentin( and retailin( 'u$s.
O44ortunities
0oom in t'e retail sector
0randed (arment retailers loo#in( for one stop s'op solutions.
-lexi$le $ac# end operations
-ocus on retailin( and $randin(
-irst mo"er ad"anta(e
T%reats
Entr! of <talian mills and fas'ion (iants
n explosi"e retail $oom
Entr! of (oliat' store li#e wal6mart

1$

@E> =ANAGE=ENT PE9SONNEL
Board of Directors
DD
=r. ,umar =an(alam 0irla: 2'airman
DD
=rs. Ra;as'ree 0irla
DD
=r. =. 5. pte
DD
=r. 0. A. 0'ar(a"a
DD =r. R. 2. 0'ar(a"a
DD =r. /. P. >upta
DD =r. 2!ril &'roff
DD =r. &. >. &u$'ra'man!an
DD =r. &'ailendra ,. Lain B@'ole6time 1irectorC
DD =r. 1. 1. Rat'i B@'ole6time 1irectorC
DD =r. &. 0. =at'ur
(usiness /eads
DD =r. &'ailendra ,. Lain: "iscose staple fi$re
DD =r. &aura$' =isra: cement
DD =r. Ra"i ,astia: spon(e iron
DD =r. &. ,. &a$oo: textiles: spinnin(
DD =r. Ai#ram Rao: textiles: fa$rics
DD =r. ,. ,. =a'es'wari: c'emicals
8%ole*time )irector and C%ie- .inancial O--icer
DD =r. 1. 1. Rat'i

Com4an Secretar
DD =r. s'o# =alu
1,
.uture 4lans
Our <ision
7o $e a premium (lo$al con(lomerate wit' a clear focus on eac' $usiness.
Our =ission
7o deli"er superior "alue to our customers: s'are'olders: emplo!ees and societ! at lar(e
Our <alues
<nte(rit!
2ommitment
Passion
&eamlessness
&peed



11


STAGE 1 2PLANT T9A&N&NG3
fter a * 'our induction session wit' t'e 9R 'ead of t'e plant: < was
assi(ned t'e /RN =R,E7<N> 1EP7 under t'e (uidance of =r. Ai#as
a((arwal w'o in turn told me t'at < 'a"e to conduct a sur"e! on t'e !arn
mar#et of lud'iana in t'e 1
st
'alf of m! interns'ip. nd !arn $ein( an
industrial productBused $! t'e 'osier! factories and textile millsC: < 'a"e to
conduct industrial mar#etin(. &o in t'e 1
st
two wee#s < was (i"en trainin( in
t'e ele(ant spinners of t'e plant ;ust to #now t'at 'ow t'e !arn is $ein(
manufacturedU @'at are t'e complaints t'at mostl! clients doU @'at are t'e
(enuine defects t'at sometimes creep into t'e !arn despite usin( 'i(' 8ualit!
testin( measuresU @'! do suc' defects occur and 'ow can $e pre"entedU


1+
<A9&O;S )E.ECTS O9 CO=PLA&NTS AN) T/E 9EASONS
ASSOC&ATE) 8&T/ T/E=
1C?NEAENNE&&6@'en t'e !arn is not uniform or smoot' t'rou(' out its len(t' and
$readt'.
*CNEP&Bp'uta#iC6 ccumulation of fl! or unopened fi$re at one place and t'ere $!
ma#in( it une"en.
+C9R<NE&&67'e protrudin( fi$res from t'e !arn $od! ;ust li#e 'airs standin( on t'e
$od!.
4C2RO&& &91E6@'en two or more different s'ades of fi$res mixes wit' eac' ot'er.
5C>?2296@'en t'e 'ard waste of t'e t'read w'ic' is in t'e 'ands of t'e wor#er $!
mista#e mo"es into t'e cone in t'e c'eese $inder or 7-O mac'ine.
6C,NO7&61ue to failure of t'e #notter mac'ine: two t'reads wit' different t'ic#ness
cannot $ind easil! wit' eac' ot'er and t'us ma! clot at t'e place S form a #not.
7C+6P5/6@'en +
rd
!arn from a near$! spindle mixes wit' t'e ot'er two !arns to form t'e
same cone ma! $e due to air pressure: it forms a +6pl!.
8C9<>9 7@<&76w'en t'e no. of $utt increases: ie no of twists in t'e 7-O mac'ine
increases.
%C1O?05E &P<NN<N>6w'en t'e spindle in t'e rin( frame fails to wor#: t'e wor#er ;ust
folds and 'an(s t'e t'read o"er t'e spindle: $ut due to air pressure sometimes t'e ro"in(
from 1 $o$$in spins in to anot'er.
1)CRO55ER P<E2<N>67'e wor#er s'ould mo"e t'e t'read from $eneat' t'e spindle: $ut
'e in a 'urr! does it from t'e top or sidewa!s and so t'e t'read alread! t'ere on t'e
spindle forms a t'ic#er la!er wit' t'e t'read and it $ecomes so t'ic# t'at e"en t'e cutter
in t'e auto corner mac'ine is not a$le to cut it.

11C&O5<1<7/61ept' of t'e s'ade in case of t'e t'read is uniform or constant t'rou(' out
$ut sometimes t'ere are unclear patc'es on t'e o"er all !arn t'ere $! s'owin( t'at t'e
solidit! is not maintained.
1*C@RON> ><7<N>6@'en t'e t'read of 1 spindle is cut loose and t'e wor#er needs to
;oin it a(ain: 'e extends t'e t'read $ut sometimes $! mista#e t'e t'read (oes into t'e next
$o$$in and t'e colour comin( from t'e top $o$$in mixes wron(l! wit' t'e former colour
and t'us lead to difference in s'ades.

1%

O(SE9<AT&ONS );9&NG S/&.T C/ANGE
2leanin( of t'e mac'ine $! t'e pre"ious s'ift wor#er.
2leanin( of t'e doffin( trolle!
Position of t'e lot currentl! on.
ssi(nment of duties $! t'e ;o$$er.
2olourwise settin( of t'e $o$$in on t'e rin( frame.
&pra!in( of lu$ricants
2losure and start of runnin( $elt in t'e auto corner mac'ine.
2olourwise settin( of t'e $o$$in on t'e rac#.
7a#in( o"er t'e c'ar(e from one wor#er.
J;AL&T> ASS;9ANCE &N T/E >A9N )EPT O. G9AS&=
&N);ST9&ES
=AC/&NES .;NCT&ONS
?&7ER 7E&7ER <t measures t'e smoot'ness: t'inness or
t'ic#ness t'rou(' out t'e !arn: K fault in a
particular len(t' of !arn: also tells a$out
t'e ne$s and slu$s.
5E &7REN>79 7E&7ER 7ells t'at 'ow muc' is t'e stren(t' of t'e
!arn: $ot' in case of sin(le and dou$les
!arn. -or ex for1P18 it is 45)).
9O7 <R OAEN 7o c'ec# t'e amount of moisture on t'e

t'read. Normall! t'e moisture s'ould $e
around *.*5 to *.5K.
0OR1 PPERN2E 7o prepare a $oard for oursel"es: to (et an
idea of 'ow t'e !arn will loo# w'en
con"erted into a fa$ric. =oreo"er t'e faults
suc' as ne$s Sslu$s and t'ic# S t'in !arn
are clearl! "isi$le on suc' $oards.
@RPP<N> =29<NE 7o calculate t'e no. of counts.

27
9EASONS .O9 8ASTE
Extra production
1ela! in (i"in( decisions
Excess of carriers in t'e plant
Aariation in actual "s $ud(eted.
Excess of in"entor!.
=ore distance $etween raw materials and mac'ines
9i('er re;ection rate $! t'e customer
<mproper stora(e of raw materials
<mproper communication and irresponsi$ilit!
5ac# of wor#mans'ip spirit
5ow producti"it!
<mproper mana(ement
=EAS;9ES .O9 8ASTE
Production s'ould $e as per re8uirement.
No dela! in (i"in( decisions

mount of in"entor! s'ould $e as per re8uired and $e properl! stored.
Proper distance s'ould $e maintained $etween raw materials and mac'ines.
0est 8ualit! is prepared
@or#ers s'ould feel responsi$le S 'a"e wor#mans'ip spirit:
7ime must $e full! utilised
ProductionPno. of wor#ers s'ould $e increased.

21
9EASONS .O9 P9O);CT&ON LOSSES
0rea#down of t'e mac'ine
Off season
5oss of power
Not to t'e full capacit!
9i(' production time
1efects of mac'iner!
<rresponsi$ilit! of t'e wor#er
=ore time ta#en for s'ift c'an(es
-ailure of spare parts
Excess time to start and stop t'e mac'ine
PAC@&NG CO=PLA&NTS
O?7&<1E 67'e t'reads or !arn not $inded properl! on t'e cone and is comin(
outside t'e cone.
5O7 =<Q6 @'en * different s'ades are mixed to(et'er in t'e 7-O or c'eese wider or
auto corner mac'ine.

R<00ON6@'en w'ole of t'e !arn is not uniforml! distri$uted on t'e cone and some
times it (et accumulated on a small area: it forms a ri$$on.
9R1 @&7E6waste from rin( frame to pac#in( w'ic' cannot $e rec!cled or
reused.
&O-7 @&7E6waste from mixin( to simplex mac'ine w'ic' can $e reused.
-5?06n!t'in( fl!in( and depositin( on t'e !arn t'us ma#in( t'at area t'ic# and
declinin( t'e 8ualit!.
&NR5<N>6w'en t'e !arn is elon(ated or opened it is twisted at some places.
22
STAGE 2 2ANAL>S&S ON >A9N =A9@ET O. )EL/&3
<n t'is part of m! interns'ip: < went to t'e mar#et of 5ud'iana and "isited some $i(
'osier! mills w'ic' produce fine 8ualit! 'osier! from PA !arn. < 'ad to (et t'e clients
opinion on compan!Gs performance of >R&<= /RN in terms of product 8ualit!:
communication 8ualit!: deli"er! s!stem: pricin( strate(!: customer ser"ice "is6H6"is its
main competitors.
9ESEA9C/ =ET/O)OLOG>
PRIMARY DATA6 7'ese data were ta#en from t'e 8uestionnaires filled $! t'e clients.
SECONDARY DATA6 1ata ta#en from t'e compan!Gs sales reports: documents:
$roc'ures: t'e data ta#en from t'e competitorGs office w'ere < "isited as a prospecti"e
customer: "arious internet sources.
9EG&ONS CO<E9E)

L5N19R 0/ P&&
091?R ,E RO1
,,O@5 RO1
&?N1ERN>R
,<5&9 N>R
29N1<>R9 RO1
NE@ ,?N1NP?R<

>?R? RL?N 1EA N>R
7LP?R RO1
,<RP5 N>R
2!
SA=PLE S&IE

A<&<7E1 RE&PON1E1 NO7
RE&PON1E1
,N<77<N> -27OR<E& N1 9O&E<R/
=<55& A<&<7E1
*4 *) )4
>R&<= 2?&7O=ER& 1% 18 )1
NON >R&<= 2?&7O=ER& )5 )* )+

5<=<77<ON& O- 79E PROLE27
=an! of t'e newer clients did not respond properl!.
&ome of t'e clients were $iased.
7'e a(ent o"er t'ere was not so 'elpful: in fact 'e wanted me to complete m!
wor# and (o $ac# soon.
7'e data (i"en $! t'e compan! persons were not up to t'e mar#.
2$
ANAL>S&S AN) .&N)&NGS

s seen from t'e a$o"e pie c'art one can
definitel! sa! t'at: o"erall 8ualit! wise t'e clients are satisfied $! >rasimGs !arn
performance w'ic' is definitel! a (ood si(n for t'e compan!.
9<>9 V 9i('l! satisfied customers: w'o (a"e more t'an 8 out of 1).
=E1<?= V "era(el! satisfied clients w'ose ratin( "aried wit'in 5 to 8.
5O@ V Not satisfied clients: w'o (a"e 5 or less out of 1).

*5
2P V 2onsistenc! of product PRVProduct Ran(e &RV &'ade Ran(e
P= V Pac#in( and =ar#in( PV Product a"aila$ilit!
s far as consistenc! of 8ualit! is concerned: t'e
client seems to perfectl! satisfied wit' t'e consistenc! of product and pac#in(Smar#in(:
as almost 8)K clients fa"oured t'e compan!Gs pac#in( st!le. 0ut in t'eir o"er all ran(e ie
s'ade and product ran(e t'e customer satisfaction le"el is "er! low.

*6
P7 V P/=EN7 7ER=& P2 V PR<2E 2O=PE7<7<AENE&&

O& V OAER55 &5E& PO5<2/ O- 79E 2O=PN/

7'is is t'e area w'ere t'e compan! 'ad to concentrate
t'e most $ecause at a satisfactor! 8ualit! t'e compan! cannot c'ar(e 'i(' prices: w'ic'
was said $! most of t'e clients. E"en some of t'e compan! persons t'at < interacted wit'
accepted t'is fact. =ore o"er t'e radial dia(ram prepared after t'e sur"e! also s'ows t'e
same t'in(.
7'e customers seem to $e perfectl! o# wit' t'e
pa!ment terms and t'e credit period. 0ut accordin( to t'em t'e prices arenGt competiti"e
as per t'e mar#et and w'en tal#s come to t'e o"erall sales polic! of t'e compan!: onl!
1)K were t'orou('l! satisfied.
*7
R7 VResponse time of en8uiries 1&V <nformation of deli"er! status
23V 2ommunication 8ualit! =21V =eetin( committed deli"er!
-1V -lexi$ilit! in deli"er! 51V 5ead time in matc'in(
7imel! deli"er! 'as $een 8uite a consistent
ac'ie"ement for >rasimGs !arn into 5ud'iana. lmost 6) K of t'e clients were 'i('l!
satisfied wit' t'e time limit t'at t'e compan! ad'eres to.

*8
&P V ttitude of sales personnel 1 V ccurac! of documents
71 V 7imel! a"aila$ilit! of documents =- V <nteractionP"isit fre8uenc!
7'is turned out to $e t'e most satisf!in( aspect for t'e
compan! in t'e w'ole sur"e!. lmost %)K of t'e clients were 'i('l! satisfied wit' t'is
parameter.

*%

-2 V -re8uenc! of complaints 2= V 2omplaints 'andlin(
&= V &'ade matc'in(

&2 V &ettlement of complaints NP1 V New product de"elopment
E"en t'e customer ser"ice section of t'e compan! is not
up to t'e mar#. Onl! 6)K clients seem to $e well satisfied wit' t'e customer ser"ice of
t'e compan!. <n toda!Gs world t'e customer ser"ice aspect is t'e most important in an!
compan!. &o t'e compan! 'as to loo# upon it as a matter of serious concern.
+)

T/E O<E9ALL POS&T&ON O. T/E CO=PAN>

7'e a$o"e radial dia(ram s'ows t'e o"erall
position of t'e compan! in t'e e!es of its customers in terms of 8ualit!: consistenc! of
8ualit!: pricin(: timel! deli"er!: communication: customer ser"ice. >reater t'e difference
$etween desired and actual "alues at a particular point: (reater must $e t'e focus of t'e
compan! on t'at particular parameter. <n t'is case t'e compan! needs to concentrate t'e
most on its pricin( strate(! as it s'ows t'e maximum de"iation from t'e desired le"el.
nd t'e clients seem to $e most satisfied $! t'e timel! deli"er! as it s'ows t'e least
de"iation.

!1
=anu-acturerHs Perce4tion o- =a#or (rands :
SANGA=D ?N1<&P?7E1 NO.1 8ualit! wise in t'e 5?19<N mar#et.
Eac' and e"er! $i( and reputed #nittin( and 'osier! 'ouse seems to consume it
wit' (reat fait'. ,nown to 'a"e a (reat feel and s'ine. 0ut most importantl! its
popularit! is due to t'e "er! fact t'at its !arn mo"es "er! smoot'l! on t'e #nittin(
mac'ine'
G9AS&=D "er! well #nown and old $rand 'a"in( some (reat 5O/5
2?&7O=ER&. ,nown for its (ood 8ualit! and comparati"el! lar(er num$er of
s'ades $ut t'e 'indrance is EA<50<5<7/F. <f t'e compan! can cater to all t'e
a"aila$le customers properl! t'en no one could stop it from reac'in( t'e top spot'
C/ENA(D <t is one of t'e top t'ree $rands t'at e"er!one sur"e!ed recollected.
lt'ou(' sli('tl! costlier $ut possess a (ood 8ualit! as well. &o it is comin( up
"er! fast to (i"e &an(am and >rasim a run for its mone!.
(&9LAD not'er 0irla (roup puttin( a lot of efforts to reac' t'e top. 0ut
c'eaper price and a"era(e 8ualit! is ma#in( it clim$ t'e ladder'
O9&ENTD -airl! (ood num$er of respondents said to consume it as well $ut t'e
;ourne! is too far and not eas!'

)EEPA@D lt'ou(' 8ualit! wise not so (ood $ut c'eaper price and some o"er
confidence of t'e ot'er pla!ers is ma#in( it eat into ot'erGs mar#et s'are.
+*


lt'ou(' t'e a$o"e pie c'art s'ows t'at t'e compan! 'as a
comparati"el! (ood mar#et s'are $ut t'e compan! 'as to accept t'e fact t'at its s'are is
decreasin( da! $! da! $ecause of its 'i(' export polic! and its insufficienc! to cater t'e
a"aila$le demand w'ic' is mainl! due to its low production capacit!. s a result of w'ic'
some newer pla!ers w'ic' 'as started a few !ears $ac# are eatin( up into t'e compan!Gs
s'are and are almost t'ere 'ead to 'ead wit' t'e compan!.
++

<f we loo# at t'e price comparati"e anal!sis t'en
we would find out t'at >rasimGs rate is almost t'e 'i('est. &o t'e compan! 'ad to ta#e
t'is matter "er! seriousl! and t'e mana(ement s'ould ta#e 8uic# actions. &o t'at t'e!
donGt la( $e'ind some of t'e infamous pla!ers.

!$
O(SE9<AT&ONS
3ualit! wise t'e w'ole of 1E59< was undi"ided on >R&<= .<t was o$ser"ed
t'at t'e! were prett! 'app! wit' t'e 8ualit! as suc'. =oreo"er t'e (ood 8ualit! is
normall! consistent t'rou(' out $arrin( a few exceptions.
0ut a"aila$ilit! is t'e ma;or pro$lemD t'ere is a real deart' of 8uantit! and s'ades
as well w'ic' t'en forms a constraint for t'e compan! to lead t'e mar#et.
7'e deli"er! is (ood and is usuall! on time: a(ain exceptions are alwa!s t'ere.
0ut t'e response of t'e compan! towards t'e manufacturers is "er! poor w'ic' is
8uite irritatin( and frustratin( for t'e #nitters. 7'e most common term < 'eard all
t'rou('out m! "isit is E,O< &?N@< N9< 9<FD one of t'e main reasons for
t'eir di"ersion towards different ot'er mills.
s far as pa!ment terms and price is concerned: 5ud'iana seemed to $e on two
2ON7R&7<N> EQ7RE=E&. &ome found it to $e "er! (enuine and reasona$le
$ut some were ;ust furious on t'e price le"els.
Re(ardin( t'e parameters w'ic' determined t'e purc'ase of !arn $! t'e
manufacturers: t'e followin( are t'e most importantO 0rand: 3ualit!: Price:
&moot'ness on t'e #nittin( mac'ine: "aila$ilit!: No. of s'ades: -eel and &'ine
in t'e fa$ric later on.
Aarious manufacturers 'a"e made t'eir &E77<N> wit' different mills: so s'ades
of different mills 'a"e $ecome re(ularit! wit'in different 'osier! units.
2onsumption 'as declined in t'e last *6+ mont's due to =ar#et slac#.

5ots of &5?0& on t'e snow w'ite s'ade Bsaw it personall!C w'ic' also tends to
$rea# t'e lar(e num$er of needles at a time t'us creatin( 'u(e losses.
7oo muc' 2O5O?R 05EE1<N> pro$lems mostl! on t'e dar#er s'ades speciall!
t'e red and t'e $ur(und! colour.
+5
&ome customers were also of t'e "iew t'at t'ere is -7ER PRO2E&&
&9OR7>E: around *6*.5K.
RE57<ON&9<P& wit' t'e a(ent or t'e dealer are also a "er! important factor in
purc'asin( a particular mills !arn. &o in t'at case a ma;or portion of t'e amount
of !arn sold in t'e mar#et depended a lot on t'e terms and understandin( t'at t'e!
are wit' t'e dealer.
ccordin( to t'e mar#et >rasimGs !arn 'as impro"ed a lot 8ualit! wise $ut it
s'ould mo"e more smoot'l! on t'e #nittin( mac'ine so t'at t'e needles do not
$rea# re(ularl!.
Pac#in( is $! and far o.#. $arrin( sometimes t'at t'e cones are wet due to
excessi"e moisture and t'ere is a sli('t $indin( pro$lem as well.
&ome of t'e 8ualit! conscious customers are reall! read! to pa! 'i(' prices if t'e
3?5<7/ (i"en to t'em is 79E 0E&7.
s far as m! "isit as compan! personnel (oes: < (ot mixed responses. &ome reall!
discussed a lot wit' me a$out w'at can $e done and 'ow t'e $est can $e
implemented w'ereas some were not e"en $ot'ered to answer m! 8uestions.


!1
9ECO==EN)AT&ONS ON T/E (AS&S O. T/E S;9<E>
1E59< $ein( suc' an important and "ast mar#et as far as >rasim !arn is
concerned: so t'e compan! can esta$lis' its own office in 5ud'iana as some of its
competitors 'as done and 'a"e witnessed positi"e results.
&ome of t'e $asic and re(ular s'ades suc' as Red: Na"!: and 0lac# must $e
a"aila$le all t'e time and in lar(e "olumes.
<f t'e compan! 'as pro"ided t'e mar#et wit' a new s'ade t'en t'ere must $e
continuation of t'at s'ade ot'erwise t'e settin(s of t'e s'ades set $! t'e
manufacturer are $ro#en as a result of w'ic' t'e! $ecome frustrated.
7'e 'ars'est fact t'at came out of t'e sur"e! is t'at all of t'e manufacturers were
not all satisfied wit' t'e response t'at t'e compan! or its a(ent (i"es t'em. &o t'e
compan! as well as its a(ent must listen and not ;ust 'ear t'eir matters.
7'e compan! 'as onl! one a(ent in t'is area: so most manufacturers feel t'at 'e is
doin( 'is monopol! and 'e is e"en tr!in( to control t'e prices of 5ud'iana mar#et
all 'imself. &ome directl! in rut'less tone e"en said t'at !ou 'a"enGt appointed a
ri('t a(ent 'ere. &o t'e compan! s'ould tal# to t'e a(ent re(ardin( t'is and
s'ould well define t'e K of commission of t'e a(ent so t'at t'ere ma! not $e an!
more pro$lems w'atsoe"er.
Now a da!s more $ri('t and fluorescent s'ades are $ein( preferred amon( t'e
#nittin( factories w'ereas normall! t'e manufacturers feel t'at t'e >rasim !arn is
loo# wise dull and e"en t'e s'ine is also "er! low comparati"el!. 0ut onl! addin(
new s'ades wont do: t'e compan! 'a"e to en'ance its production le"el.

7'ere s'ould $e a lot of direct interactions $etween t'e manufacturers and t'e
compan!. $etter communication lin# will 'elp t'e customers to con"e! t'eir
pro$lems directl! to t'e compan!.
&'ould tr! to $rin( down t'e price le"el a little $it.

!+
lt'ou(' t'ere is a 'u(e 186sin(le mar#et: $ut t'e +)6sin(le mar#et is also
(rowin( "er! rapidl!. &o t'e compan! must focus on en'ancin( its production of
+)6sin(le as well.
7'ere s'ould $e re(ular "isits $! t'e compan! personnel to (et order for new
s'ade de"elopments li#e personnel of ot'er mills do.
2an manufacture fanc! !arn a(ain w'ic' t'e compan! produced at some point of
time and were e"en successful.
lt'ou(' not feasi$le all t'e time $ut t'e compan! must not force t'e
manufacturer to purc'ase w'ole of t'e lot at one (o: w'en (i"en a new s'ade
de"elopment. 7'e! s'ould $e allowed to purc'ase in installments.
7r! to reac' or e"en o"er pass t'e 8ualit! of san(am w'ic' is $! far t'e $est
$rand in t'e mar#et.
0e a$solutel! perfect in t'e num$er of counts as decrease in it leads to 'u(e
needle $rea#a(e.
Pac#in( must alwa!s $e done in t'e cartoons and not in ;ute $a(s: w'ic' is
normall! done: so t'at t'e !arn is not destro!ed on its wa!. Excessi"e amount of
moisture s'ould not $e added w'ic' would t'en result in t'e !arn $ein( wet.

Re(ular conferences of t'e compan! in"itin( all its customers must $e or(ani4ed
and conduct meetin(s mixed wit' entertainment so t'at t'e! feel a sense of
$elon(in(ness and attac'ment.
+8
STAGE 3
{PREPARATION OF A GLOBAL SOURCING
REQUIREMENT}


<n m! report < 'ad to explain w'at is (lo$al sourcin( all a$out: its processes: and
its implications. < also 'a"e to e"aluate t'at w'et'er outsourcin( is re8uired for
$ot' >rasim !arn and fa$ric. <f !es t'en 'ow muc'U 7'en < 'ad to loo# into

t'e (lo$al mar#et and loo# for prospecti"e exporters. 7rade relations $etween
<ndia and t'ose countries were also loo#ed into.
GLO(AL SO;9C&NGD O<E9<&E8
7'e @e$sterMs ?ni"ersal 1ictionar! meanin( of ROutsourcin(R isO R compan! or person
t'at pro"ides informationD to find a supplier or ser"ice: to identif! a sourceR. <t is "er!
important to $e clear a$out w'at is meant $! outsourcin(. Outsourcin( essentiall! refers
to 'ow t'in(s are done rat'er t'an w'at is done. <t descri$es 'ow for example <7 ser"ices
are o$tainedD not w'at t'e ser"ices are.
Aer! simpl! outsourcin( can $e defined as a process in w'ic' a compan! dele(ates some
of its in6'ouse operationsPprocesses to a t'ird part!. 7'us outsourcin( is a contractin(
transaction t'rou(' w'ic' one compan! purc'ases ser"ices from anot'er w'ile #eepin(
owners'ip and ultimate responsi$ilit! for t'e underl!in( processes. 7'e clients inform
t'eir pro"ider w'at t'e! want and 'ow t'e! want t'e wor# performed. &o t'e client can
aut'ori4e t'e pro"ider to operate as well as redesi(n $asic processes in order to ensure
e"en (reater cost and efficienc! $enefits.
/&STO9> O. O;TSO;9C&NG
7'e 'istor! of outsourcin( s'ows t'at e"en in t'e industrial a(e: a few t'ousand !ears
later: "er! few companies outsourced an! of t'eir operations. 2ompanies in t'e 18))s
and 1%))s were "erticall! inte(rated or(ani4ations: ta#in( care of t'eir own
production: minin(: and manufacturin( from raw materials to finis'ed (oods as well
as t'en s'ippin( t'e (oods to compan! owned retail outlets. 7'ese companies were
often self6insures: 'andled t'eir own taxes: emplo!ed t'eir own law!ers: as well as
desi(ned and $uilt t'eir own $uildin(s wit'out outside assistance. 7'is of course is
not applica$le to all companies durin( t'at time period: $ut it (i"es a (eneral idea of
t'e time.

7'e 'istor! of outsourcin( s'ows t'at t'rou(' speciali4ation contractin( $e(an to $e
more popular: especiall! in t'e ser"ice industr!. 7'is in turn led to t'e first wa"e of
outsourcin( durin( t'e industrial re"olution pus'in( t'e lar(e6scale (rowt' of
ser"ices suc' as insurance ser"ices: arc'itecture and en(ineerin( ser"ices: amon(
man! ot'ers. t t'is time t'e companies doin( t'e outsourced wor# were mostl!
located in t'e same countr!: often in t'e cit!: ;ust li#e t'e customers.
7'e 'istor! of outsourcin( portra!s t'at as ons'ore outsourcin( continued
manufacturin( outsourcin( of low6tec' items suc' as to!s: s'oes and apparel (oods
$e(an to ta#e place. fter t'is manufacturin( 'i('er "alue items li#e 'i('6tec'
components and consumer electronics $e(an to appear. <n fact outsourcin( 'istor!
demonstrates t'at manufacturin( was t'e first acti"it! t'at $e(an to mo"e to offs'ore
destinations in a 8uest for lower costs. 7'rou(' t'e de"elopment of infrastructure as
transportation and lo(istics impro"ed: t'e costs decreased and offs'ore manufacturin(
increased. s t'e education and s#ills on lower wa(e countries de"eloped:
outsourcin( manufacturers (ained more "alue.


4)
=ore recentl!: in t'e ?& durin( 1%7)s: it was common for computer companies to
export t'eir pa!rolls to outside ser"ice pro"iders for processin(. 7'is continued into
t'e 1%8)s: w'en accountin( ser"ices: pa!roll: $illin(: and word processin( all $ecame
outsourced wor#.
7owards t'e end of modern da! %istor o-
outsourcing: t'e trend 'as mo"ed into t'e world of information tec'nolo(!: data
transcription and call center operations. &tudies on t'e 'istor! of outsourcin(
conclude t'at outsourcin( is clearl! not ;ust a$out pa!rolls and call centers. 7'is can
$e seen $! simpl! loo#in( into !our medicine ca$inet. <t is "er! li#el! t'at t'e RS1
of !our dail! medicine was outsourced to companies in <ndia. /our insurance
compan! w'ic' co"ers t'e costs of !our medications ma! 'a"e t'eir claim processin(
to offs'ore transcription pro"iders. nd !our medical clinic ma! easil! $e
outsourcin( t'e administration of !our confidential medical records to <ndia: Russia
or t'e P'ilippines.

$1
A)<ANTAGES O. O;TSO;9C&NG
7'e Outsourcin( mar#et is estimated to (row tremendousl! in t'e comin( few wit' an
increasin( num$er of companies plannin( to outsource $ot' low end and 'i(' end ;o$s to
offs'ore destinations. lso t'e num$er of companies pro"idin( outsourcin( ser"ices is on
t'e rise: t'us resultin( in lar(er "ariet!. 1ue to t'e fact t'at more and more companies are
outsourcin(: t'e ris#s are (ettin( smaller as $usinesses 'a"e more experience and clearer
o$;ecti"es.
7'ere are se"eral mar#ed ad"anta(es of outsourcin(O
1. Concentration on core "usiness areas
0ac# office operations of a compan! re8uire 'i(' maintenance and speciali4ed attention.
/et most of t'em are critical for t'e compan!Ms e"er!da! acti"ities. 0! outsourcin( t'eir
$ac# office operations $usinesses can concentrate on t'eir core competencies w'ile t'eir
$ac# office operations are $ein( mana(ed smoot'l! $! a speciali4ed t'ird part! compan!.
*. 8orld*class tec%nolog at lower rates
<n"estin( in new tec'nolo(! is "er! costl! and often ris#!. s t'e tec'nolo(! mar#et
de"elops rapidl!: it is difficult to #eep up wit' latest inno"ations and solutions. 7'us
outsourcin( to companies t'at 'a"e t'e resources: expertise and desire to continuousl!
update t'eir tec'nolo(ical solutions: offers a true advantage o- outsourcing.
+. Skilled man4ower at a--orda"le 4rices
Outsourcin( (i"es a compan! t'e a$ilit! to (et access to s#illed and trained man power at
extremel! low rates. 7'is in turn leads to an increase in producti"it! as well as cost
sa"in(s. 0! outsourcin( a compan! sa"es on recruitment: trainin( and ot'er 'uman

resource costs it would ot'erwise 'a"e to maintain internall!. lso an advantage o-
outsourcing is t'at a compan! is a$le to utili4e t'e #ind of expertise it could not
internall! pro"ide.
4. &ncreased 4roductivit
0! emplo!in( s#illed manpower in lar(er num$ers at lower costs companies can reall!
increase t'eir producti"it!. 7'is in turn would result in $etter customer satisfaction and
increased profita$ilit!.
5. (eat Com4etition
<n toda!Gs fast paced (lo$al econom! a compan! needs to pro"ide 'i('68ualit! ser"ices
to its customers in order to retain t'em: as well as pro"ide t'e ser"ices for c'eap prices.
Outsourcin( in t'is case can 'elp t'e compan! maintain lower rates wit' $etter ser"ice
solutions: t'ere$! (i"in( t'em a $etter mar#et position or e"en a competiti"e ad"anta(e.
6. Tax "ene-its
0! selectin( t'e ri('t 0PO destination companies can sa"e up on taxes $! sa"in( on costs.
$2
)&SA)<ANTAGES O. O;TSO;9C&NG
lt'ou(' t'ere are se"eral reasons in fa"or of outsourcin(: a compan! must also consider
t'e disad"anta(es of outsourcin(. 7'ere are ris#s t'at need to $e anal!4ed w'ene"er a
compan! em$ar#s on a new $usiness "enture. E"en t'ou(' outsourcin( is often t'e ri('t
solution for companies: one s'ould not outsource simpl! for t'e sa#e of outsourcin(.
&e"eral $enefits and "alue addition 'a"e to $e reali4ed in order for companies ;ustif!
outsourcin(. <t is a 'ot trend nowada!s and seems an attracti"e option for man!: $ut if t'e
ris#s are not considered in detail: t'e disad"anta(es of outsourcin( ma! dominate t'e
ad"anta(es.
5atel! 'owe"er: t'e concept of outsourcin( 'as $een critici4ed. 7'e ne(ati"e attitudes
toward offs'ore outsourcin( 'a"e $een mostl! discussed $! parties in t'e ?& and ?,:
due to ;o$ losses in t'e mentioned countries. &ome people in countries li#e t'e ?&: feel
t'at outsourcin( is t'reat to t'eir econom!. Outsourcin( ;o$s to offs'ore destinations: is
causin( unemplo!ment in t'e minds of some people. <t cannot $e denied t'at t'e
immediate effects of outsourcin( suc' as la!6offs as well as t'e s'iftin( of production and
;o$s to forei(n locations causes pro$lems man! emplo!ees. 0ot' 'i(' and low6end ;o$s
are mo"in( out of t'e ?& causin( people to loose ;o$s. 7'e needs of companies: national
economies and t'ose of indi"idual people often clas'.
7'e disad"anta(es of outsourcin( ma! include t'e followin(O
K 5oss of mana(erial control: $ecause it is more difficult to mana(e outside ser"ice
pro"iders t'an mana(in( oneGs own emplo!ees wor#in( possi$l! in t'e same $uildin(.
W Often t'e 'idden costs are difficult to calculate or prepare for. 7'ese include le(al costs

related to puttin( to(et'er a contract $etween two companies and t'e time spent to
coordinatin( t'e contract.
K not'er disad"anta(e of outsourcin( can $e a t'reat to securit! and confidentialit!. <f
!our compan! is outsourcin( processes li#e pa!roll: medical transcriptions or ot'er
confidential information: a compan! must $e "er! careful in c'oosin( w'ic' process it
wants to outsource and to w'ic' pro"ider.
K possi$le loss of flexi$ilit! in reactin( to c'an(in( $usiness conditions: lac# of internal
and external customer focus and s'arin( cost sa"in(s ma! also $e a disad"anta(e of
outsourcin(.
K Ot'er disad"anta(es of outsourcin( ma! include unfa"ora$le contract len(t's: loss of
competiti"e ed(e: pro$lems in contract renewal: and contractual misunderstandin(s.

4+

Now da!s -irms are increasin(l! adoptin( t'e "iew t'at Ein order to com4ete
glo"allF ou need to "u glo"allF. <ntrare(ional trade is facilitated $! reduced tariffs:
streamlinin( customerGs re8uirements common s'ippin( documentation and common
transportations and 'andlin( s!stems. >o"ernments are also increasin(l! reco(ni4in( t'e
importance of trade and stri"in( to reduce trade re(ulations. E"en most purc'asin(
professionals toda! must $e familiar wit' domestic and international sources of suppl!.
s a result man! firms now 'a"e o"erseas offices or a(ents to assist $u!ers in t'eir
continous searc' for international suppliers.
9EJ;&9E=ENTS TO (E S;CCESS.;L AT GLO(AL SO;9C&NG
<mpro"ed lo(istic competence.
0etter ne(otiatin( s#ills wit' international carriers.
$reast of complex and d!namic international laws.
7rac# t'e mo"ement of forei(n currencies.
>et 'a$itual to wor# wit' people of di"erse cultural $ac#(round.



$$

NEE) .O9 GLO(AL SO;9C&NG
COSTL P9&CE (ENE.&TS6 2ost differentials arise $ecause of low la$our
rates: efficient production process: a forei(n supplier willin( to accept a lower
profit mar(in or exc'ane rate differences fa"ourin( t'e off s'ore products.
J;AL&T>6 &ome nations 'a"e a (reater potential to produce (ood 8ualit!
products at lower cost.
ACCESS TO TEC/NOLOG>6 >ainin( access to t'e most current
tec'nolo(! lea"es man! firms wit' little c'oice to persue (lo$al sourcin(.
ONL> SO;9CE A<A&LA(LE6 &ometimes no domestic supplier can
ade8uatel! meet t'e re8uirements of purc'asers.
&NT9O);CE CO=PET&T&ON6 -irms t'at rel! on competiti"e forces to
maintain price and ser"ice le"els sometimes use (lo$al sourcin( to introduce
competition to t'e domestic suppl! $ase.
SAT&S.> CO;NTE9T9A)E 9EJ;&9E=ENTS6 2ounter trade
a(reements specif! t'at a compan! must source a specified amount of (oods
from a forei(n countr! if it sells to t'at nation.
9EACT TO SO;9C&NG PATTE9NS O. CO=PET&TO9S6 &ometimes
firms outsource from t'e same supplier or re(ion of t'e world t'at a

competitor uses. 7'e! $elie"e t'at not sourcin( in t'e same re(ion ma! lea"e
t'em at a competiti"e disad"anta(e.
ESTA(L&S/ A P9ESENCE &N .O9E&GN =A9@ET6 9a"in( a presence
in a forei(n mar#et impro"es t'e $usiness relations'ip wit' t'at countr! and
t'us ma! later support an expanded mar#etin( presence. <n addition (lo$al
sourcin( can 'elp pro"ide access to t'at countr!Gs distri$ution c'annel.
S;PPL&E9 9ESPONS&<ENESS6 firm ma! source offs'ore $ecause a
forei(n supplier is more responsi"e to a purc'aserGs needs. 7'e offs'ore
supplier mi('t also $e a$le to pro"ide "isi$ilit! to exact s'ipment dates.
$,


.&<E &NTE9NAT&ONAL SO;9C&NG ST9ATEG&ES
(EG&N &NTE9NAT&ONAL P;9C/AS&NG (> )O=EST&C
(;>E9S
Once a firm decides to $u! internationall! it usuall! assi(ns
one or more $u!ers to 'andle t'e international purc'asin( re8uirements w'ic'
usuall! in"ol"es a $u!er $ecomin( familiar wit' international sources for a
limited num$er of items.
;SE O. S;(S&)&A9&ES .O9 &NTE9NAT&ONAL SO;9C&NG
ASS&STANCE
n increased need to identif! forei(n sources of suppl!
can exceed t'e capa$ilities of t'e domestic $u!in( unit. s a result =N2s
often use forei(n su$sidiaries: ot'er corporate affiliates or external a(ents to
pro"ide assistance in identif!in( and e"aluatin( forei(n suppliers.
ESTA(L&S/ &NTE9NAT&ONAL P;9C/AS&NG O..&CES
7'e lo(ical approac' toward meetin( a compan!Gs
(rowin( international sourcin( re8uirements 'as $een t'e esta$lis'ment of
international purc'asin( offices in selected mar#ets all o"er t'e world.
ASS&GN )ES&GNF (;&L) AN) SO;9C&NG TO SPEC&.&C
LOCAT&ON
<n man! industries it is necessar! to desi(n and $uild
products for sale t'rou(' out t'e world. ssi(nin( t'e desi(n $uild and

sourcin( to a specific location reco(ni4es t'at one unit wit'in a firm ma!
'a"e an ad"anta(e o"er anot'er unit in tec'nolo(!: manufacturin(:
en(ineerin( or procurement.
&NTEG9ATE AN) COO9)&NATE GLO(AL SO;9C&NG
9EJ;&9E=ENTS
7'is is t'e 'i('est le"el of (lo$al sourcin(. <t means
t'at a firm 'as de"eloped t'e s!stems and structure to co ordinate and
inte(rates its purc'asin( strate(!: information and common procurement
re8uirements t'rou('out t'e world.
$+
COSTS ASSOC&ATE) 8&T/ GLO(AL SO;9C&NG
2ommon costs
?nit purc'ase price
7oolin( c'ar(es
7ransportation costs
<nternational transaction costs
dditional costs due to pac#a(in(
2ustoms dut! or tariff
Purc'ase insurance protection
Port terminal and 'andlin( fees

48
Now letGs e"aluate t'at w'et'er outsourcin( is re8uired for >rasim !arn and
fa$ric.
.A(9&C 9EJ;&9E=ENTF /2 B71*7+C
DOMESTIC O27 NOA 1E2 LN -E0 =R REA<&E1
7O75
0?1>E7E1
7O75
>R&<= 5.56 4.84 5.17 5.+5 5.75 7.*% ++.%6 1%.18
>RA<ER 4.*8 +.*8 +.*4 +.** +.5+ 4.*5 *1.8) 1+.*+
7O75 %.84 8.1* 8.41 8.57 %.*8 11.54 55.76 +*.41
EXPORTS
>5O05
0RN1&
*.6) *.75 *.45 *.85 +.5) *.85 17.)) 17.))
R=>
B1O=E&7<2C
.55 .45 .5) .+) .4) .*) *.4) *.4)
EQPOR7&
BO72C
*.)5 *.15 1.7) 1.85 1.85 1.6) 11.*) 1).*)
<N&7<7?7<ON5
&5E&
.*) .*) .*) .*) .*) .*) 1.*) 1.*)
7O75 5.4) 5.55 4.85 5.*) 5.%5 4.85 +1.8 +).8
GRAND TOTAL 15.*4 1+.67 1+.*6 1+.77 15.*+ 16.+% 87.56 6+.*1

Pr!"##i$%
R"&'ir"("$)
O27 NOA 1E2 LN -E0 =R 7O75
-res' fa$ric
Re8uirement BNC
15.*4 1+.67 1+.*6 1+.77 15.*+ 16.+% 87.56
-inis'ed fa$ric
re8uirementBNP.%C V &
16.%+ 15.1% 14.7+ 15.+) 16.%* 18.*1 %7.*8
<n'ouse processin(
capacit!
15.)) 15.)) 15.)) 15.)) 15.)) 15.)) %).))
&9OR7-55 1.%+ .1% 6.*7 .+) 1.%* +.*1 7.*8
*"avi$%
r"&'ir"("$)
>re! fa$ric
re8uirementB&P.%5C
17.8* 15.%% 15.5) 16.11 17.81 1%.17 1)*.4)
<n'ouse wea"in(
capacit!
%.75 %.75 %.75 1).4 1).4 1).4 6).45
&9OR7-55 8.)7 6.*4 5.75 5.71 7.41 8.*+ 41.%5
$6
.A(9&C 9EJ;&9E=ENT B7+*70C
DOMESTIC 31 3* 3+ 34 REA<&E1
7O75
0?1>E7E1
7O75
>R&<= 8.8* 1%.51 1*.18 1*.%6 5+.47 4).78
>RA<ER 7.6+ 15.48 8.*% %.76 41.15 +4.)*
7O75 16.45 +4.%% *).47 **.7* %4.6* 74.8)
EXPORTS
>5O05
0RN1&
8.)1 %.54 11.77 14.*% 4+.61 4+.61
R=>
B1O=E&7<2C
1.7) 1.8* 1.6) .%1 6.)+ 6.)+
EQPOR7& BO72C +.66 4.58 4.*4 +.75 16.*+ 14.*+
<N&7<7?7<ON5
&5E&
.54 .4* .47 .5+ 1.%6 1.%6
7O75 1+.%1 16.+6 18.)8 1%.48 67.8+ 65.8+
>RN1 7O75 +).+6 51.+5 +8.55 4*.*) 16*.45 14).61
Pr!"##i$% r"&'ir"("$) 31 3* 3+ 34 7otal
-inis'ed fa$ric re8uirement BPC +).+6 51.+5 +8.55 4*.*) 16*.45
Production fa$ric re8uirement BPP.%CV3 ++.7+ 57.)6 4*.8+ 46.8% 18).51
<n'ouse processin( capacit! 45.)) 45.)) 45.)) 45.)) 18).))
&9OR7-55 611.* 1*.)6 6*.17 1.8% .51
*"avi$% r"&'ir"("$)

>re! fa$ric re8uirement B3P.%5C +5.51 6).)6 45.)8 4%.+6 11%).)1
<n'ouse wea"in( capacit! +1.*) +1.*) +1.*) +1.*) 1*4.8)
&9OR7-55 4.+1 *8.86 1+.88 18.16 65.*1
/RN RE3?<RE=EN7 -OR )76)8
31 3* 3+ 34 7O75
1!ed >re! 7ext 1!ed >re! 7ext 1!ed >re! 7ext 1!ed >re! 7ext 1!ed >re! 7ext
/arn
re8uirement
%6) 61 1)5 1476 11+ *11 1164 85 147 1+64 1)7 16* 4%64 +66 6*5
<n 'ouse
capacit!
+6) ) ) +6) ) ) +6) ) ) +6) ) ) 144) ) )
&9OR7-55 6)) 61 1)5 1116 11+ *11 8)4 85 147 1))4 1)7 16* +5*4 +66 6*5
5)
s per t'e data (i"en $! t'e compan! and t'e calculations made $! me: it was found out
t'at t'ere is a 'u(e outsourcin( re8uirement.
&ome of t'e nations w'ic' are t'e ma;or producers and exporters of !arn and fa$ric are
c'ina: Pa#istan: <ndonesia: 7'ailand: tur#e!: 2anada etc.
O;TSO;9C&NG .9O= C/&NA
29<NG& 7EQ7<5E <N1?&7R/
7'rou('out t'e rapid economic (rowt' of 2'inaMs reform
period: few sectors 'a"e $een as 'i(' profile as textiles. 7'e sector was one of t'e first
industries to open up and 'as $een a fundamental dri"er of t'e countr!Ms economic en(ine
o"er t'e last *5 !ears. 2'ina textile industr! pla!s an important role in t'e earnin( of
forei(n exc'an(es and contri$utes (reatl! to t'e de"elopment of 2'inaMs econom!.
2'ina 'as t'e worldMs lar(est textile and clot'in( industr!:
wit' t'e export "olume risin( $! an annual a"era(e of 16.8 percent from 1%7) to 1%%%.
?nder t'e trend of economic (lo$ali4ation and trade li$erali4ation: 2'ina textile industr!
faces se"ere c'allen(es from openin( mar#et and fierce competition. fter t'e entr! into
@7O: 2'ina will find itself in a more cruel $attle (round wit' ot'er $i( textile exporters
in t'e pursuit of lar(er mar#et s'are. =eanw'ile: t'e li$erali4ation in tradin( will lead to
a more fiercer competition amon( domestic textile enterprises. 0ased on aut'oritati"e
documents and latest statistics: t'is report intends to ma#e an anal!sis and o"er"iew on
t'e de"elopment status and prospects of 2'ina textile industr!.

Outsourcin( production to 2'inese textile manufacturers
'as $ecome increasin(l! common durin( t'is period: $ut it was in *))5 6 t'e deadline for
liftin( worldwide textile 8uotas loomin( 6 t'at forei(n producers $e(an arri"in( in
dro"es. <ne"ita$l!: w'en t'e 8uotas were remo"ed: textile exports sur(ed more t'an 4)K
in *))5 to ?&N1+5 $illion: despite protectionist measures imposed $! ?& and European
nations in t'e second 'alf of t'e !ear. 2'inaMs textile industr! 'as earned more t'an 7.%
$illion !uan in t'e first fi"e mont's t'is !ear: more t'an 8uadruplin( t'at durin( t'e same
period last !ear
?nder t'e trend of economic (lo$ali4ation and trade
li$erali4ation: 2'ina textile industr! faces se"ere c'allen(es from openin( mar#et and
fierce competition. fter t'e entr! into @7O: 2'ina will find itself in a more cruel $attle
(round wit' ot'er $i( textile exporters in t'e pursuit of lar(er mar#et s'are.
51
N79? 5 B<N1O629<N 0OR1ERCO Nat'u 5a: a part of t'e ancient sil# route: was
reopened on 7'ursda! for resumption of $order trade $etween <ndia and 2'ina: t'e two
(reat economic powers of sia.Resumption of $order trade t'rou(' t'e 9imala!an pass
s!m$olises furt'er stren(t'enin( of $ilateral relations and closer ties $etween t'e two
countries.@it' t'e reopenin( of t'e trade route: Nat'u 5a $ecame t'e t'ird point for
$order trade wit' 7R after &'ip#ela in 9imac'al Prades' and 5ipule#' in ?ttaranc'al.



,2
=AAO9 >A9N E:PO9T&NG .&9=S &N C/&NA
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
7<NL<N
7<N1<N>
7EQ7<5E >RO?P
5ar(e scale state owned co.
'a"in( o"er 8)!rs of
'istor! wit' 1))64)
spindlesS764 looms. <t
produces !arn ran(in( from
6 to 8) counts.
2otton !arn
PP2 !arn
PPA !arn
pol!ester !arn
,el"in( wan(
No.+8:Qitai a"e
T'en(4'uan(4i
9edon( tian;in
2'ina
X866**68*4868+%+
>O/O L<N/<
-<0RE 2O. 571
n enterprise of c'ines S
forei(n LA:started its
operation in 1%%+.
production capacit! of 5))
tonsPmnt' :under t'e $rand
name L<N/<.
1!ed !arn
,nitted !arn
N!lon
filament !arn
lex li
Lindu industrial area
>ao!ao:4'ao(in(
>uan(don(
2'ina
X8667586*8+6*5*4
/<0<N >R2E 2O. One of t'e worldGs lar(est
producers of "iscose ra!on
filament !arn: 'a"in( more
t'an 8))) colours.'u(e
export mar#et all o"er.
Aarious <&O certifications.
-anc! !arn
1ope d!ed
!arn
Aiscose ra!on
filament !arn
&unn!
9an(tian road
Na'an economic
de"elopment 4one
/i$in cit!6644))*
2'ina
L<N>&?
E&71/E
7EQ7<5E 2O. 571
Bwww.eastd!e.comC
P"t owned manufacturin(
firm 'a"in( a production of
5))) tons of OE !arnS
1))))tons of c'eese d!ed
cr!clic !arn
2otton !arn
OE !arn
Pol!ester !arn
East d!e
international trade
dept
&'aos'e road

!arn.mostl! export oriented
co. under $rand name
eastd!e.
9utan(:c'an(4ou
2'ina
X86651%66176571%
-<NE/RN
2ORPOR7<ON
One of t'e lar(est producer
of !arnsSfi$res:'a"in( 4
plants.n annual
production capacit! of
1))))) tons:'u(e exporter:
$rand name6fine!arn
-ull drawn
!arn
1rawn texture
!arn
Pol!ester
filament!arn
Nelllei(' no.1)1
T'u!uan road
&u4'ou new district
&u4'ou:;ian(su
2'ina
X86651*668)16+644
L<N>=EN
T9ON>E
7EQ7<5E 2O. 571
P"t owned enterprise
'a"in( a production
capacit! of 75)))spindles:
exports products: mac'ines:
spare parts as well. 0rand
name6Q?E -EN>
&pun !arn
,nitted !arn
2arded !arn
2om$ed !arn
2otton !arn
/an(lin(
No65:nort' !uelian(
la#e road
Lin(men 'u$ei
2'ina
X8667*46*++6*558


,!
=AAO9 .A(9&C E:PO9T&NG .&9=S &N C/&NA
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
9O51 0<55<ON
7R1<N> 571.
Esta$lis'ed in 1%%8Smostl!
into 'i(' class material
production.
9u(e annual production of
5) mn metresSexports
mainl! to west Europe.
Pol!ester
fa$rics
N!lon fa$rics
5inen fa$rics
2otton fa$rics
2'iffon fa$rics
Lason liao: no 567
1on(xin road:
&'i(iaopan!u town
>uan(4'ou
>uan(don(:c'ina
X866*)684646566*
9?T9O? >O51EN
2<R25E PR<N7<N>
S 1/E<N> 2O. 571
LA esta$lis'ed in 1%%8 and
'a"in( an annual production
of a$out +5mn metres.mostl!
an export oriented compan!.
0lended fa$rics
2orduro!
fa$rics
2otton fa$rics
Ael"eteen
&all! ;in
9uan4'u industrial
(arden:'uan4'u
T'e;ian(:c'ina
X86657*6*+868+7*
5<@? 5<-EN>
7EQ7<5E 2O. 571
-ounded in 1%76.5eadin(
manufacturerS exporter of
fa$ric in &'andon. 9a"in( an
annual production of +)mn
meter
2onfident of $est 8ualit!:
timel! deli"er!:$est price.
&'irtin( fa$rics
&uitin( fa$rics
>re! fa$rics
Aiscose fa$rics
Ra!on fa$rics
Pam 4'ao:
Room no61)*:
0ldn(66:no.4
1:st!anan road:
8in(dao &'andon
2'ina
X8665+*68%7%65%)6
@?L<N> 7<=E&
PR<N7<N>S1/E<N>
2O. 571
Esta$lis'ed in 1%8*: $elie"es
in stron( RS1:!earl!
production of 1))mn metres .
Exported mainl! to australia
under $rand name6&1
Aiscose fa$rics
0lended fa$rics
2otton fa$rics
1!ed fa$rics
5inin( fa$rics
=elon 4'an(
No8:!uanmin( road
&'en(4e town
@u;ian( ;iansu
2'ina
X86651*6615*6%*18

&9N>9<
@9&N
<N1?&7R<5 2O.
571
=ainl! an export of a$out
8mn ?& N:nnual production
of %)mn metres.exported to
Europe:nort'Ssout'
merica:clients include
>P: PO5O R5P9:?20.
2otton fa$rics
@ool fa$rics
&il# fa$rics
cr!clic fa$rics
Pol!ester
fa$rics
2oco c'an(
Rm68*8P8
t'
floor
T'on(;ian $uildin(
&'ennan road east
&'en4en:c'ina
X866*166+45678+%
>?N>T9O?
9?1? 5<N9E
OQ-OR1
29=0R/
-27OR/
partners'ip firm:'u(el!
export oriented compan!.
=a#es products accordin( to
customer re8uirements:
annual capacit! of **mn
metres:export mar#et6 asia
2oated fa$rics
1!ed fa$rics
,nitted fa$rics
@ool fa$rics
Pol!ester fa$ric
=ic'ael wan(
5eat'erSindustrial
par#:$oefen( road
>uan(4'ou:
>uan(don(:c'ina
X866*)686%167*8+
/ON> 3<N
7EQ7<5E
PR<N7<N>S1/E<N>
2O. 571
P"t firm 'a"in( a'u(e
emplo!ee $ase:annual
production of 1))mn metres
Export mar#et6europe
1!ed fa$rics
N!lon fa$rics
Ra!on fa$rics
Pol!ester fa$ric
Lim4'on(
&'en(4e:wu;ian(
2'ina
X86651*66+55676%)
54

O;TSO;9C&NG .9O= PA@&STAN
7'e textile and clot'in( industr! is t'e $ac#$one of
pa#istanGs econom!. <n addition to $ein( t'e countr!Gs lar(est industrial sector: it
accounted for no less t'an 68K of export earnin(s in *))46*))5. as suc' it en;o!s stron(
support from t'e (o"ernment w'ic' is #een to foster t'e sectorGs (rowt'. 7'e
(o"ernmentGs textile "ision *))5 stud! 'as pro"ided muc' of t'e t'in#in( $e'ind future
de"elopment. 7oda! Pa#istan is t'e 8
t'
lar(est textile and clot'in( exportin( nations. 7'e
aimis to ma#e it wit'in top fi"e.
0ilateral trade $etween Pa#istan and <ndia almost
dou$led to cross t'e N1 $n mar# last !ear.t'e N4)) mn increase in t'e !ear endin( marc'
*))6 was attri$uted to t'e launc' of sout' asian free trade a(reementB&-7C and t'e
openin( of rail and road lin#s.
=ost recentl! <ndia and Pa#istan 'a"e decided to ta#e
t'e initiati"e as part of t'eir plans to $oost $ilateral trade and impro"e economic relations
and ease t'e process of (ettin( $usiness "isas. 7'e two sides also decided to si(n a new
s'ippin( a(reement in t'e near future and expedite tal#s to impro"e air ser"ices $etween
t'em. 0esides t'e! a(reed to open $an# $ranc'es in eac' ot'er countries and to (et to
t'eir central $an#s to facilitate applications. 7'ere are in fact + t!pes of trade $etween
<ndia and Pa#istan. 7'e 1
st
is ille(al cross $order land trade $! smu((lers. 7'e *
nd
is

circular or informal trade in"ol"in( a +
rd
countr! w'ere products are re exported. 7'e
final t!pe of trade is le(al (oods on t'e accepta$le trade list. 7'e total si4e of ille(al and
circular trade is muc' lar(er t'an t'e official trade $etween t'e two sides.
7'e wa(a' c'ec# post opened for $ilateral trade on *5
t'

;ul! *))5 as truc#s loaded wit' (arlic and potatoes crossed t'e <ndia Pa#istan $order
mar#in( t'e resumption of direct trade $! road $etween t'e two sides for t'e 1
st
time in
more t'an fi"e decades. 7raders on $ot' sides earlier 'ad to transport t'eir (oods to t'e
nearest port or train station and t'en across t'e $order and also in"ol"ed expensi"e
de"iations "ia f('anistan or du$ai as alternati"e routes.

55


=AAO9 >A9N E:PO9T&NG .&9=S &N PA@&STAN
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
7L 7EQ7<5E =<55&
571
part of t'e famous ela'i
(roup 'a"in(*units ta;1Sta;*
'a"in( a com$ined capacit!
of 4)))) spindles:$rand
name6ta;.all ran(e from 1)s
to 4)s.
2otton !arn
pPc !arn
pP" !arn
cottonP"iscose
!arn
,'urram #a!ani
+16c61:('ali$ road:
(ul$er(6+:5a'ore
Pun;a$65466)
Pa#istan
X%*64*6571)6*16
=OONOO >RO?P
O- <N1?&7R<E&
One of t'e leadin( !arn
manufacturers in
Pa#istanS'a"in( 1*spinnin(
units consistin( of more t'an
*))))) spindles.sales
turno"er of *))mn ?&N.
Pol!ester !arn
pPc mYlan(e
!arn
pP" !arn
tencel !arn
nomex !arn
/ousaf
+:monto(omer!
road:moonoo 'ouse
5a'ore:Pun;a$
Pa#istan
X%*6)4*66*768851
T>R1 N<NE 571 -amil! $usiness esta$lis'ed
in 1886:!arn operation $e(an
in 1%7*.export oriented firm
proud of excellent 8ualit!:
8uic# deli"er!:(ood repo.
cr!clic !arn
2otton !arn
-anc! !arn
Pol!ester !arn
-aroo8 ('ori
=an(a raiwind
road: 5a'ore
Pa#istan
X%*64*65+864)81
PO?5R -<0RE
=<55&
0rand new unit of *+)4)
spindles full! e8uipped wit'
latest rin( frames:#nown for
producin( (re! and d!ed
2arded !arn
2otton !arn
>re! !arn
&pun !arn
&'afi8ue alam
+11:c'apel pla4a
'asrat mo'ani road
,arac'i:sind674)))

!arn.export oriented Pa#istan
X%*6*16*416)8))
,95<1 NT<R
&P<NN<N> 571
One of t'e leadin(
manufacturer of pPc !arn
from 1P6 to 1P4) $ot' for
#nittin(Swea"in( "ariet!.
9a"in( more t'an 5))))
spindlesS1))))tonsP!ear.
2arded !arn
2om$ed !arn
2otton !arn
=o'ammad atif
&uite1*%61+)
Eden centre:;ail
road:5a'ore
Pa#istan
X%*64*675%6*)84





56
=AAO9 .A(9&C E:PO9T&NG .&9=S &N PA@&STAN
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
&99T1 7EQ7<5E
<N1?&7R<E&
P"t owned firm esta$lis'ed
in 1%68 'a"in( a capacit! of
6)) looms and production
a$out 15mn metres. export
mar#et6east europe
2alico fa$rics
2otton fa$rics
2repe fa$rics
1!ed fa$rics
Aiscose fa$rics
-lannel fa$rics
&'a'4ad ta;
p64+:street6*
!arn mar#et
#ar#ana $a4aar
-aisala$ad:pa#
X%*64166**6+75
T.N >RO?P O-
<N1?&7R<E&
Esta$lis'ed in 1%%4:a 'u(e
manufacturerSexporter of
textile fa$ric. Production
capacit!66)mn metres:
export mar#et6nort' merica
1!ed fa$rics
>re! fa$rics
cotton fa$rics
pol!ester
fa$rics
wo"en fa$rics
$leac' fa$rics
=a8sud a siddi8i
National street
1'uddiwala
Laranwala road
-aisala$ad:pa#
X%*64167+46%41
@T<R 7EQ7<5E
=<55& PA7 571
Esta$lis'ed in 1%%):'u(e
export mar#et: production
capacit!615mn metres: $rand
name6c'ira(: an emplo!ee
$ase of o"er 1)))
&atin fa$rics
7will fa$rics
7will wea"e
1!ed fa$rics
2otton fa$rics
&aeed sattar
+% model town
extension
5a'ore:Pa#istan
X%*64*611146)4)
.0 EQPOR7& PA7
571
Presti(ious name in t'e field
of export.more t'an
+)Kexported.total
production is 17 mn metres
2'inon fa$rics
Pol!ester
fa$rics
1!ed fa$rics
=udassar ali
6:(round floor
$usiness center
new ci"il lines

>re! fa$rics
2otton fa$rics
-aisala$ad:pa#
X%*64166+)6*+)
,+

O;TSO;9C&NG .9O= T;9@E>
7ur#e! is anot'er one of t'e ma;or producers and
exporters in textile !arn and fa$ric. 9owe"er <ndia6tur#e! $ilateral trade is currentl!
muc' $elow its true potential. 0ut indiaGs exports 'a"e recorded commenda$le (rowt' in
t'e past two !ears. <ndia and tur#e! si(ned man! a(reements o"er t'e !ears to stren(t'en
and sustain t'eir economic co operation. 7'e 1
st
$ilateral a(reement was si(ned in
1%7+.t'is was followed $! an a(reement on settin( up an <ndia tur#e! ;oint economic
commissionBLE2C si(ned in 1%8+.;oint economic commissionBLE2C si(ned in 1%8+.
@it' t'e restartin( of direct 7ur#is' fli('t $etween
del'i and <stan$ul: new opportunities 'a"e opened up for tappin( t'e true potential.
=oreo"er 7ur#is' $usiness culture is 8uite similar to <ndiaGs. discussions durin( face to
face meetin(s are (i"en more importance t'an written correspondence. -or t'is t'e <ndian
$usinessman needs to ma#e more and more "isits to tur#e!. @it' (reater initiati"e from
t'e <ndian industr! tur#e! can easil! act as a (atewa! to E? as well as central sia.


,0

=AAO9 >A9N E .A(9&C E:PO9T&NG .&9=S &N T;9@E>
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
ER,EN7 7EQ7<5E
<N1?&7R<E&
Esta$lis'ed in 1%5) and
'a"in( a capacit! of
75))tonsP!r wit' latest
tec'nolo(! mac'iner!:a$out
55K exported: one of t'e
$i((est !arn manufacturers
in tur#e!
cr!clic !arn
Pp !arn
-anc! !arn
2'enille !arn
tao(lu textile
=aitepe cad
2ana!a#in:sitesi
0loc# no 11
7op#api:<stan$ul
7u#e!
X%)6*1*661*67+**
PO5/5EN &EN7E7<,
<P5<, &N/55&
7ur#e!Gs finest producer of
pol!ester !arns:production
capacit!64))))tonsP!r and
'as an excellent 8ualit! trac#
record
Pol!ester !arn
pPc !arn
pP" !arn
2a(ata!
Or(ani4e sana!i
0ol(esi
=a"i cad61615%
0ursa:tur#e!
X%)6**46*4+6111)
E7<7E,& ,?=& Esta$lis'ed in 1%6*: leadin(
manufacture of
fa$ricsS!arns.production
capacit!6+)mn metresS
+6)) tonsP!r.clients include
wal mart: cal"in clien
5inen fa$rics
Pol!amide fa$rics
Ra!on fa$rics
Pol!ra!on fa$rics
Lerr! $e'ar
0asin e#spires !olu
>unesli mat$aacilar
&itesi641:(unesli
<stan$ul:tur#e!
X%)65++6*686%5)8
,7& 7EQ7<5E 2O 571 P"t firm esta$lis'ed in
1%8)S one of t'e leadin(
producers of $ot'
2oated fa$rics
2otton fa$rics
Res' fa$rics
!#ut a!din
7elsi4 ma'
&e!it ni4am: card

#nittedSwo"en fa$rics
annual capacit!6146)) tons
export6europe:asia
Polester fa$rics
&!nt'etic fa$rics
Aiscose fa$rics
no6166$
Te!itin $urno
<stan$ul:tur#e!
X%)6*1*6416667++

5%
=AAO9 >A9N P9O);C&NG .&9=S ALL O<E9 T/E 8O9L)
N=E O- 79E 2O=PN/ 2O=PN/ PRO-<5E PRO1?27& 2ON727&
2A5<ER 7EQ7<5E& 5eadin( manufacturer and
exporter of pP" !arns:operatin( +
spinnin( plants in 2anadaS1in
?&:a$out 5)))) spindles.ser"in(
?& Sot'er export mar#ets
t'rou(' "arious a(ents.
pP" !arn
pPc !arn
acr!clic !arn
stretc' !arn
pol!amide !arn
pol!propl!ne
!arn
0asile toutoun(i
45)):t'imens
$l"d
st.laurent 8ue$e
'4r*p* canada
X165146+++68%%
LN> LN> 2O.571 One of t'e leadin( !arn producer
in 7aiwan:exportin( to o"er 5)
countries: clients include
?20:>P:=S&
PPA !arn
N!lon !arn
Pol!ester !arn
m!c'an(
%6f:6*65
'si6nin( n road
7aipei1)+:7aiwa
n
X8866*6*55*6+++
9?5ON 2ORPOR7<ON -ast ad"ancin( as t'e worldGs 1
st

class textile manufacturer:'a"in(
18 plants in nilaiSmale#a in
=ala!sia wit' o"er +))))
spindles
&!nt'etic !arn
Pol!ester !arn
full! drawn
!arn
PO/ !arn
9ualon corp
5e"el %:wisma
>old'ill:67 ;alan
ra;a c'ulan6
5)*))
,uala 5umpur
=ala!sia
X6)+6*)+166)))
P7 E5E>N7 7EQ7<5E
<N1?&7R<E&
<ncorporated in 1%7+:part of t'e
dit!a $irla (roup S lar(est
pP" !arn
spun "iscose
=enera 0ata"ia
5e"el 16: ;i #'

producer of $lended s!nt'etic
ra!on spun !arn in s.e asia:
capacit! of 145))) spindles:
8)Kproducts exported
!arn
micro pol!ester
!arn
micro "iscose
!arn
mas
=ans!ur#a"1*6
La#arta61)%*)
<ndonesia

17
=AAO9 .A(9&C P9O);C&NG .&9=S ALL O<E9 T/E 8O9L)
N=E O- 79E
2O=PN/
2O=PN/ PRO-<5E PRO1?27& 2ON727&
,0B,0?5
&/N79E7<2& PA7
571C
p"t firm esta$lis'ed in 1%87S
(rown to $e t'e leader of
#oreaGs textile industr!:sales
turno"er of o"er 8)mn ?&NS
capacit! of *8 mn metres
annuall.!
2otton fa$rics
Polester fa$rics
Ra!on fa$rics
&!nt'etic
fa$rics
&e$astian #im
,a$ul $uildin(
*65 #alwol don(
!on(san (u:seoul
#orea
X8*6*6+116)4*+
2P<75 7R<2O7 2O.
571
O"er +) !ears of speciali4ed
experience in textile world:one
of t'e most #nown producers in
7'ailand.capacit! of 6)mn
metres annuall!
Lac8uard fa$rics
5ace fa$rics
7ricot mes'
fa$rics
Aora"u;
su;;aporamest
*+18 petc'#asem
road:na#ornpat'om
7'ailand
9ECO==EN)AT&ONS
On t'e $asis of t'e a$o"e researc' t'e followin( points can $e recommended
s per t'e 'u(e deficit in t'e production capacit! of t'e plant: outsourcin( must
definitel! $e done.

0ut $efore (oin( for (lo$al sourcin( t'e compan! can loo# into "arious
opportunities in t'e domestic le"el.
7'e compan! must also t'in# of increasin( its exports if its (oin( for (lo$al
sourcin( $ecause t'at could definitel! impro"e t'e $usiness relations'ips $etween
t'em.
(&(L&OG9AP/>
---.a#it.airla.co/
---.grasi/.co/
---.$ire2$as'ion.co/
11
CONCL;S&ON
>rasim B7'e textile unit of 1<7/ 0<R5 >RO?PC is en;o!in( a fa"oura$le
position in t'e <ndian mar#et ;ust due to t'e fact t'at it is under t'e um$rella of
1<7/ 0<R5 >RO?P and t'e $rand name >R&<=. >rasimGs cement di"ision
contri$utes a$out 47K of its re"enues and textile onl! 4K. ctuall! its mar#et s'are
is declinin( as compared to R/=ON1& and also due to t'e entr! of some new
forei(n pla!ers suc' as RE<1S7/5OR: L.9=P&7E1 in t'e fa$ric section. E"en
in t'e !arn section its contri$ution to t'e mar#et 'as decreased "is6H6"is &N>=:
OR<EN7: 29EN0. &o t'e compan! 'as to loo# into its pricin( strate(! and 'as to
reposition itself in t'e minds of its customers speciall! t'e rural ones.


6*