Вы находитесь на странице: 1из 62

A

Project Report on industrial visit


at
Welspun Textile ltd.

SUBMITTED BY:-

GUIDED BY:Miss Dipty Humbal

Name:-LALIT J. MORYANI.
Year:-F.Y B.B.A
Roll no:- 10 BBA 20

SUBMITTED TO:DNV INTERNATIONAL EDUCATION ACEDAMY,


KRANTIGURU SHYAMJI KRISHNA VERMA KACHCHH
UNIVERSITY, BHUJ
Academic year (2010-2011)

WELSPUN INDIA LIMITED

certificate
THIS IS TO CERTIFY THAT
Mr./Miss
Of Class, Roll No,......................................
Exam No,.has satisfactorily
Completed his/her term work
Infor
The term ending in 2010 -2011
Date :-..

Signature

PREFACE

DNV INTERNATIONAL EDUCATION ACADEMY

Page 2

WELSPUN INDIA LIMITED

This report is on the industrial visit conducted at Welspun


India Ltd. (Textile). By the collage as it is included in the syllabus of
F.Y B.B.A.
This is to fulfill the purpose of feeding the practical knowledge
to the students. By this report students could know that how any
industry works in practice in day-to-day routine.
We the students are very much thankful to the concerned
faculty Ms. Dipty Humbal for her kind effort to make out the proper
arrangement for industrial visit and preparation of this report.

ACKNOWLEDMENT
I would like to say heartly thanks to Ms. Dipty Humbal.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 3

WELSPUN INDIA LIMITED

Who always gave valuable suggestions and guidance for completion of


our project. She helped my to understand and remind important details
of the project that we I would have completed.
I also special thanks to my friends, Rajendra, Jitendra, Mahesh.

INDEX
SR.NO.

PARTICULARS

PAGE NO.

Industrial profile

DNV INTERNATIONAL EDUCATION ACADEMY

Page 4

WELSPUN INDIA LIMITED


Company profile
1.

2.

3.

4.

5.

11

General Information

14

1.1

Reasons for selection of location

16

1.2

Mission Statement, Vision of Company

16

1.3

Establishment Year, Market Share

18

1.4

Product Profile

19

Manufacturing/ Production/ Processing Department

23

2.1

No. of Employees in This Department

24

2.2

Production Process

24

2.3

Use of Technology or Machinery

36

2.4

Quality Control during Production Process

37

2.5

Raw Materials

38

2.6

Measures taken for Pollution Control

38

Purchasing And Store Department

39

3.1

Selection of Raw Material Suppliers

40

3.2

Storage of Raw Materials

40

3.3

Steps Taken for Safety of Raw Materials

40

Personal Department

41

4.1

Recruitment and selection

42

4.2

Sources of recruitment

42

4.3

Training welfare and motivation

43

4.4

Management level

45

4.5

Working hours

45

4.6

Attendance and identity card

46

Marketing Department

47

5.1

Umbrella of Products, Brand Name & Positioning

48

5.2

Segmentation and Targeting

48

5.3

Market Research

49

5.4

Marketing Strategy

50

DNV INTERNATIONAL EDUCATION ACADEMY

Page 5

WELSPUN INDIA LIMITED


6.

Finance Department

51

6.1

Cash flow

52

6.2

Profit and loss A/C

53

6.3

Balance sheet

55

8.

S.W.O.T ANALYSIS

58

9.

CONCLUSION

63

10.

BIBLIOGRAPHY

64

Industrial profile
India Textile Industry

India Textile Industry is one of the leading textile industries in the world. Though was
predominantly unorganized industry even a few years back, but the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy gave
the much-needed thrust to the Indian textile industry, which has now successfully become one of
the largest in the world.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 6

WELSPUN INDIA LIMITED


India textile industry largely depends upon the textile manufacturing and export. It also plays a
major role in the economy of the country. India earns about 27% of its total foreign exchange
through textile exports. Further, the textile industry of India also contributes nearly 14% of the
total industrial production of the country. It also contributes around 3% to the GDP of the
country. India textile industry is also the largest in the country in terms of employment
generation. It not only generates jobs in its own industry, but also opens up scopes for the other
ancillary sectors. India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Various categories
Indian textile industry can be divided into several segments, some of which can be listed as
below:

Cotton Textiles
Silk Textiles

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

India textile industry is one of the leading in the world. Currently it is estimated to be around
US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current
domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from
the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in
2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also
expected to increase from 4% to 7% within 2012. Following are area, production and
productivity of cotton in India during the last six decades:

Year

Area in lakh hectares

2000-01 85.76

Production in lakh bales of 170 kegs

Yield kegs per hectare

140.00

278

DNV INTERNATIONAL EDUCATION ACADEMY

Page 7

WELSPUN INDIA LIMITED


2001-02 87.30

158.00

308

2002-03 76.67

136.00

302

2003-04 76.30

179.00

399

2004-05 87.86

243.00

470

2005-06 86.77

244.00

478

2006-07 91.44

280.00

521

2007-08 94.39

315.00

567

2008-09 93.73

290.00

526

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it
succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet
managed to retain its position as world's second highest cotton producer.

Textiles
Last Updated: November 2010.
The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to
the country's gross domestic product (GDP) and 17 per cent to the countrys export earnings,
according to the Annual Report 2009-10 of the Ministry of Textiles.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 8

WELSPUN INDIA LIMITED


The industry provides direct employment to over 35 million people and is the second largest
provider of employment after agriculture.
According to the Ministry of Textiles, the total cloth production increased by 10.2 per cent
during September 2010 as compared to September 2009. The highest growth was observed in the
powerloom sector (13.2 per cent), followed by hosiery sector (9.1 per cent). The total cloth
production during April-September 2010 has increased by 2.1 per cent compared to the same
period of the previous year.
As per the latest data released by the Directorate General of Commercial Intelligence and
Statistics (DGCI&S), Kolkata, the total textile exports during April-July 2010 (provisional) were
valued at US$ 7.58 billion as against US$ 7.21 billion during the corresponding period of the
previous year, registering an increase of 5.20 per cent in rupee terms. The share of textile exports
in total exports was 11.04 per cent during April-July 2010, according to the Ministry of Textiles.
As per the Index of Industrial Production (IIP) data released by the Central Statistical
Organization (CSO), cotton textiles has registered a growth of 8.2 per cent during AprilSeptember 2010-11, while wool, silk and man-made fibre textiles have registered a growth of 2.2
per cent while textile products including wearing apparel have registered a growth of 3 per cent.
As per a Ministry of Textiles press release dated November 2, 2010, India has the potential to
increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8
per cent and reach US$ 80 billion by 2020.

Technical Textile Segment.


According to the Ministry of Textiles, technical textiles are an important part of the textile
industry. The Working Group for the Eleventh Five Year Plan has estimated the market size of
technical textiles to increase from US$ 5.29 billion in 2006-07 to US$ 10.6 billion in 2011-12,
without any regulatory framework and to US$ 15.16 billion with regulatory framework. The
Scheme for Growth and Development of Technical Textiles aims to promote indigenous
manufacture of technical textile to leverage global opportunities and cater to the domestic
demand.
Further, the government is set to launch US$ 44.21 million mission for promotion of technical
textiles, while the Finance Ministry has cleared setting up of four new research centers for the
industry, which include products like mosquito and fishing nets, shoe laces and medical gloves.
As per a joint study of the Ministry of Textiles and an industry body, the global technical
industry is estimated at US$ 127 billion and its size in India is pegged at US$ 11 billion.

Government Initiative.
According to the Ministry of Textiles, investment under the Technology Upgradation Fund
Schemes (TUFS) has been increasing steadily. During the year 2009-10, 1896 applications have
been sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December
DNV INTERNATIONAL EDUCATION ACADEMY

Page 9

WELSPUN INDIA LIMITED


31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5
billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has
been disbursed so far till the end of April, 2010. The Ministry of Textile has sanctioned a total of
US$ 133 million under TUFS during September 2010.
Moreover, in May 2010, the Ministry of Textiles informed a parliamentary panel that
it proposes to allocate US$ 785.2 million for the modernization of the textile industry.

WORLD TEXTILE MARKET


Currently, the global textile and apparel trade is estimated to be over US$ 450 billion3.The
global market for textile trade includes yarns, fabrics, apparel and non-apparel finished products.
Wels pun estimates that the global home textiles market is around US$ 22- 27 billion, accounting
for 5-6% of the total global textile market. The home textiles market includes:

1. Household textiles: Rugs, bed linen, table linen, bathroom and kitchen linen, etc.
2. Furnishing textiles: Curtains, bedspreads and other furnishing articles for home interiors, etc.
Post the expiry of the Agreement on Textiles and Clothing in 2005, India's share of textile
imports into the EU and the US has significantly increased. India is among the top3 leading
suppliers of bed and bath linen in the EU4. India along with China and Pakistan is amongst the
top 3 suppliers of textile globally.

Company Profile
Wels pun India, the flagship company of Wels pun group was incorporated in the
year 1985. Wels pun India Ltd is the largest producer of Terry Towel in Asia and one of the 10
leading in the world, possessing a state-of-the-art, fully integrated terry towel unit at Vapi,
Gujarat. The Company's Plant with state-of-the-art technology, has got ISO 9002 accreditation.
Being an environment friendly manufacturing process company, it has been awarded the
OKOTEX certification. The Company transferred the Spinning division with its assets and
DNV INTERNATIONAL EDUCATION ACADEMY

Page 10

WELSPUN INDIA LIMITED


liabilities to Wels pun Cotton Yarn Ltd. WIL continues to manufacture terry towels, but the yarn
spinning is carried out by the new company - Wels pun Cotton Yarn Ltd (WCYL). The demerger
involved equity swapping in the ratio of 7:3. For every 10 shares of WIL, shareholders were
issued seven shares of WIL and three shares of WCYL.
In order to give impetus to the market share, the Company has embarked upon direct
marketing. The Company has set up a wholly owned subsidiary in the name of Wels pun USA
Inc. in New York to focus on the US markets. It has started using Egyptian Cotton Yarn &
American Pima Cotton in the manufacture of premium quality towels and above same was
registered trademark user of 'Egyptian Cotton' & 'Supima'. The company has started direct
marketing by way of 100% subsidiary in USA and has made grounds for tie-ups with the best in
the market for floating the products in the market. The company chalked out a expansion plan by
setting up a 20 looms at an capital outlay of Rs. 35 corers which is under implementation and out
of which 11 looms have been installed and production has commenced. With this expansion the
capacity has been enhanced to 10800 MTPA.
The company has amalgamate Glofame Cotspin Industries Ltd with itself during
May 2005. According to the scheme of amalgamation, Wels pun India will issue 10
Equity Shares of Rs. 10/- each for every 33 Equity Shares of Rs. 10/- each held by
the shareholders of Glofame Cotspin Industries Ltd. The Scheme became effective
from 1st April 2004. During 2004-05 the company has set up a new plant at Anjar,
Gujarat at an investment of Rs.5.75 Billion. This plant was set up for the new
product category bed linens with a capacity of 35 million meters per annum. Further
the company also undertook a capital expenditure for construction of a commercial
building and installation of processing equipments and Diesel Generator Sets at Vapi
at a cost of Rs. 6002.8 million. The company has also commenced its commercial
production of Toweling facility in March 2005, the spinning facility commenced its
commercial production in June 2005. The bed sheeting facility has commissioned
and scheduled to commence its commercial production at full capacity by
September 2005. The company has increased the installed capacity of Cotton Terry
Towels by 12000 MTPA during 2004-05 and with this expansion the total installed
capacity of Cotton Terry Towels has increased to 23500 MTPA.

What is Welspun..?
DNV INTERNATIONAL EDUCATION ACADEMY

Page 11

WELSPUN INDIA LIMITED

Welspun is a public company. Which provided the yarn and iron pipes business.
Welspun India Ltd. (WIL) started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a
synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally,
Welspun India Limited emerged in the year 1995.
Today, WIL is Asia's largest and the 2nd largest Terry Towel producers in the World.
Welspuns facilities are located in India (Anjar and Vapi at Gujarat), Mexico, Portugal and in
UK. The Company recently demerged its Sales & Marketing and Investment divisions to two
separate Companies - Welspun Global Brands Ltd. and Welspun Investments Ltd respectively.
WIL is Asia 's largest and amongst the top 2 Terry Towel producers in the World.
Business is spread across continents and a distribution network in 32 countries, like U.S.A. ,
U.K, Canada , Australia , Italy , Sweden and France . 94% of the total products are exported.
Offers a variety of Products like Towels in different sizes and qualities, Bed linen using
state of the art technology and the best quality of Egyptian cotton, Bath Rugs and Bath Robes.
Launched organic products utilizing the benefits of Soya, Seaweed, milk and Bamboo.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 12

WELSPUN INDIA LIMITED

Today Welspun City houses a state-of-the-art Line Pipe mill which is capable of producing Spiral
Arc Welded (SAW) Pipes both Helical and Longitudinal pipes of the finest grades and
international standards. This is in addition to the ERW pipes which it manufactures.
The one-of-its-kind Textile Mill produces Terry Towels and Bed linen of the finest and
the best quality in the World. These products are mostly exported to the top retailers of the Globe
which includes most of the Fortune 100 Companies like Wal Mart, Target and J.C. Penny
amongst others.
Wels pun City takes pride in housing one of the only three Plate-cum-coil mills of its kind
in the World. This mill with a capacity of producing plates up to 4.5 meters width and Coil up to
2.8 meters wide is all set to improve Wels pun operational capabilities.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 13

WELSPUN INDIA LIMITED

GENERAL
INFORMATION

COMPANY INFORMATION
Name

:-

WELSPUN TEXTILE INDIA LTD.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 14

WELSPUN INDIA LIMITED


Address

:-

Welspun

City, Taluka

Anjar,

Kutch,
Gujarat -370110
Tel: 02836-661111 Fax: 02836-279010
Email: CompanySecretary_WIL@welspun.com
Website: http://www.welspuntowels com.
Chairman

:-

Board of directors : -

B.K. Goenka, (Chairman and Managing Director)


B.K. Goenka, R.R. Mandawewala, Mr. Murarilal Mittal,
Mr. Atul Desai, Mr. Raj Kumar Jain, Mr. M.K. Tandon

Auditors

:-

Price Waterhouse & Co-Company, Pannalal Silk


Mills Compound

Bankers

:-

Bank of Baroda, State Bank of Bikaner & Jaipur

Company secretary : -

Mr. Sunil Zore Asst. Company Secretary

Units

:-

Vapi and Anjar

Type of company

:-

Public company

Type of Industry

:-

Textile Company

Main promoters

:-

B.K. Goenka, R.R. Mandawewala, and Dipali Goenka

Location

:-

International

DNV INTERNATIONAL EDUCATION ACADEMY

Page 15

WELSPUN INDIA LIMITED


The visualization depicts the flight to greater heights at the same time remaining in touch
with ground Our Logo
realities.

The insignia is a creative visualization of a flying pair of sea gulls.

1.1 Reasons for Selecting this Location:Located near two crucial ports, Kandla and Mundra on the Western coast of India; Kutch offers
several location advantages besides its abundant natural resources. Easily available cotton and
skilled manpower are a few to begin with. The two international ports and national highways are
connected with a well development bank and World Bank, Kutch is ready to emerge as an
industrial capital.

1.2 Mission Statement, Vision of Company: Mission Statement


Our Mission
We endeavor to reach the leadership position in each Segment / Sector of our Product /
Service.
We are committed to satisfy our customers by providing best quality and service, which gives
the highest value for money.
We believe that employees are our most important asset through which we can reach the top
in each category of our Product / Service. Therefore, we will emphasize on their continuous
improvement through upgrading relevant knowledge and training.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 16

WELSPUN INDIA LIMITED

We commit ourselves to continuous growth, so as to fulfill the aspirations of our Customers,


Employees and Shareholders

Vision of Company.

Vision By the year 2012


Welspun India Limited envisions to become a fully integrated home textile Company
(Bed and Bath) and provide one-stop-shop solution to customers across the World.
Welspun is the leader in terms of embracing new technologies, product innovations,
market intelligence etc. and offering competitive end-to-end solutions to customers at globally
competitive prices with effective supply chain management. It aims to become the preferred
partner in Home Textiles for any global initiative. It targets Cost Optimization and aims to also
become the lowest cost producer of home textiles globally.
We aim to
Emerge as a global leader
Preferred by every home serve
With passion grow. @ speed innovate
With quality excel with ethics delighting all stakeholders
We are WELSPUN

Our Motto.
'Dare To Commit'

DNV INTERNATIONAL EDUCATION ACADEMY

Page 17

WELSPUN INDIA LIMITED


It is the vigour and commitment of all at Welspun that has brought it so far and helped to
reach the zenith of success in whichever business they are in. It is through this quality that the
motto of Welspun is Dare to Commit. Welspun doesnt create products, it engineers
satisfaction. Within Welspun, quality of product and service is of paramount importance.
Welspun's state-of-art manufacturing facilities reaffirm world-class quality products and nothing
less. Each and every project is treated as an opportunity and every achievement as a platform to
set new goals. This strategy has enabled Welspun to have delighted customers in 50 Countries.
We dare to commit and deliver on our promises.

1.3 Establishment Year, Market Share.

Establishment Year :- Welspun India Ltd. (WIL) started its activities in 1985 as
Welspun Winilon Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become
Welspun Polyesters (India) Ltd. and finally, Welspun India Limited emerged in the year
1995.

Market Share: - Market, which contributes 30% of home textile demand from 17% to
24%

In Terry towel segment and from 15% to 20% in cotton sheet segment over 2003-2008. We feel
India to be preferred supplier for international vendors therefore increasing its market share
further. Being largest exporter we expect Welspun to be major beneficiary of this scenario, which
accrues global share: After witnessing 1.4% demand slump in 2008, $34bn home textile industry
is back on revival path. India is the Largest beneficiary of the consolidation in the Western world
as home Textile manufacturing capacities in those counties have shrunk at a CAGR of 25% over
2003-2009. India has increased its market share in the US around 90% topline through exports.

1.4 Product Profile

Product Profile : - Welspun Products

DNV INTERNATIONAL EDUCATION ACADEMY

Page 18

WELSPUN INDIA LIMITED


Welspun has a wide ranging portfolio of home textile products comprising terry towels,
bed sheets, bath robes, bath rugs, basic bedding and decorative bedding.
1. Terry Towel
Welspun manufactures terry towels in different shapes and sizes. Some of the towels are
intended for use in a particular setting, such as beach towels, or for a particular purpose,
such as kitchen towels and baby hood towels, or in sizes convenient for a special use,
such as hand towels, face towels and bath sheets. Being woven out of 100% cotton yarn,
these fabrics acquire significant hygroscopic property, which is a prime reason for using
terry fabrics in home textiles in general and towels and bath robes in particular.

2. Bed Sheets
Wels pun manufactures bed sheets in different shapes and sizes based on different bed sizes
and mattress depth. Our bed sheets are made from cotton or various blends, such as polyester
cotton, cotton bamboo and cotton eucalyptus. The main reason for using blends is the cost
and ease of maintenance of the product by the consumer.
3. Bath Robes
Wels pun manufactures bath robes in different designs, shades and weights as per
customer requirements. It has the ability to make piece dyed, yarn dyed, jacquard and
velour bath robes. The bath robes are manufactured in different styles such as kimono",
"hood", "zipper", and "shawl". Welspun specializes in the manufacture of a specific
category of bath robes called wraps". It also provides embellishments, embroidery and
prints as per customer requirements. The fabric for our bath robes is similar to the fabric
of our towels, which enables us to leverage the product development and innovation
undertaken in the production of terry towels.
4. Bath Rugs
Wels pun is able to make rugs of various designs using its multi-level cut loop machine
to create multiple fiber lengths within a rug. Our bath rugs are generally made of cotton,
DNV INTERNATIONAL EDUCATION ACADEMY

Page 19

WELSPUN INDIA LIMITED


nylon or micro fiber and can be latex-backed, depending on consumer preferences. Based
on customer requirements, we make rugs of different sizes and weights including
reversible rugs.
5. Basic Bedding and Decorative Bedding
Our basic bedding products includes mattress pads, blown and garneted pillows and basic
comforters while our decorative bedding products includes comforters, bed skirts, shams,
decorative pillows and bolsters. Most of these products are made of polyester fiber fill wadding.
The fill we use for each product varies according to customer requirements. Since the decorative
products provide the look and feel to the bedroom, the products are design-oriented.
6. "Value Added" Products
In addition to these products, Welspun also manufactures "value added" products such as
"quick dry towels" and "the perfect sheet". Welspun believes that these product offerings are
examples of how consumer research-driven innovation can enhance functionality in its product
offerings.

Terry Towel

DNV INTERNATIONAL EDUCATION ACADEMY

Page 20

WELSPUN INDIA LIMITED

Bed Sheets.

Bath Robes

DNV INTERNATIONAL EDUCATION ACADEMY

Page 21

WELSPUN INDIA LIMITED

Bath Rugs.

Basic Bedding and Decorative Bedding.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 22

WELSPUN INDIA LIMITED

2.
MANUFACTURINGAND
PRODUCTING PROCESS

2.1 No. of Employees in This Department:

DNV INTERNATIONAL EDUCATION ACADEMY

Page 23

WELSPUN INDIA LIMITED


- The Number Of Employees In The

Manufacturing And Production Department Are 5

6Thousand. They work in the three shifts.

Production process:-

2.2

There are five stages.


1 Cultivating and Harvesting
2 Preparatory Processes
3 Spinning
4 Weaving
5 Finishing

1. Cultivating and harvesting


Cotton is grown anywhere with long, hot dry summers with plenty of sunshine and low
humidity. Indian cotton, gossypium arboreum, is finer but the staple is only suitable for hand
processing. American cotton, gossypium hirsutum, produces the longer staple needed for
machine production. Planting is from September to mid November and the crop is harvested
between March and May. The cotton bolls are harvested by stripper harvesters and spindle
pickers that remove the entire boll from the plant. The cotton ball is the seed pods of the cotton
plant, attached to each of the thousands of seeds are fibers about 2.5 cm long.

Ginning

The seed cotton goes in to a Cotton gin. The cotton gin separates seeds and removes the
"trash" (dirt, stems and leaves) from the fiber. In a saw gin, circular saws grab the fiber and pull
it through a grating that is too narrow for the seeds to pass. A roller gin is used with longer staple
cotton. Here a leather roller captures the cotton. A knife blade, set close to the roller, detaches the
seeds by drawing them through teeth in circular saws and revolving brushes which clean them
away.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 24

WELSPUN INDIA LIMITED


The ginned cotton fiber, known as lint, is then compressed into bales which are about 1.5 m
tall and weigh almost 220 kg. Only 33% of the crop is usable lint. Commercial cotton is priced
by quality, and that broadly relates to the average length of the staple, and the variety of the
plant. Longer staple cotton (2 in to 1 in) is called Egyptian, medium staple (1 in to in) is
called American upland and short staple (less than in) is called Indian.
The cotton seed is pressed into cooking oil. The husks and meal are processed into animal
feed, and the stems into paper.

Issues

Cotton is farmed intensively and uses large amounts of fertilizer and 25% of the worlds
insecticide. Native Indian variety was rainwater fed, but modern hybrids used for the mills need
irrigation, which spreads pests. The 5% of cotton-bearing land in India uses 55% of all pesticides
used in India. Before mechanization, cotton was harvested manually and this unpleasant task was
done by the lower castes and in the United States by slaves of African origin

2. processes- preparation of yarn

Opening and cleaning

Platt Bros. Picker


Cotton mills get the cotton shipped to them in large, 500 pound bales. When the cotton
comes out of a bale, it is all packed together and still contains vegetable matter. The bale is
broken open using a machine with large spikes. It is called an Opener. In order to fluff up the
cotton and remove the vegetable matter, the cotton is sent through a picker, or similar machines.
A picker looks similar to the carding machine and the cotton gin, but is slightly different. The
cotton is fed into the machine and gets beaten with a beater bar, to loosen it up. It is fed through
various rollers, which serve to remove the vegetable matter. The cotton, aided by fans, then
DNV INTERNATIONAL EDUCATION ACADEMY

Page 25

WELSPUN INDIA LIMITED


collects on a screen and gets fed through more rollers till it emerges as a continuous soft fleecy
sheet, known as a lap.

Blending, Mixing & Scotching

Scotching refers to the process of cleaning cotton of its seeds and other impurities. A
scotching machine for cotton was first invented in 1797, but didn't get much attention until it was
introduced in Manchester in 1808 or 1809. By 1816 it had been generally adopted. The scotching
machine worked by passing the cotton through a pair of rollers, and then striking it with iron or
steel bars called beaters. The beaters, which turn very quickly, strike the cotton hard and knock
the seeds out. This process is done over a series of parallel bars so as to allow the seeds to fall
through. At the same time a breeze is blown across the bars, which carries the cotton into a
cotton chamber.

Carding

Carding machine
Carding: the fibers are separated and then assembled into a loose strand (sliver or tow) at
the conclusion of this stage.
The cotton comes off of the picking machine in laps, and is then taken to carding
machines. The carders line up the fibers nicely to make them easier to spin. The carding machine
consists mainly of one big roller with smaller ones surrounding it. All of the rollers are covered
in small teeth, and as the cotton progresses further on the teeth get finer (i.e. closer together). The
cotton leaves the carding machine in the form of a sliver; a large rope of fibers.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 26

WELSPUN INDIA LIMITED


Note: In a wider sense Carding can refer to these four processes: Willowing- loosening the
fibers; Lapping- removing the dust to create a flat sheet or lap of cotton; Carding- combing the
tangled lap into a thick rope of 1/2 in diameter, a sliver; and Drawing- where a drawing frame
combines 4 slivers into one- repeated for increased quality.

Combing is optional, but is used to remove the shorter fibers, creating a stronger yarn.

A Combing machine

Drawing
The fibers are straightened several slivers are combined. Each sliver will have thin and

thick spots, and by combining several slivers together a more consistent size can be reached.
Since combining several slivers produces a very thick rope of cotton fibers, directly after
being combined the slivers are separated into rovings. These rovings (or slubbings) are then
what are used in the spinning process.
Generally speaking, for machine processing, a roving is about the width of a pencil.

Drawing frame: Draws the strand out

Slubbing Frame: adds twist, and winds on to bobbins

Intermediate Frames: are used to repeat the slubbing process to produce a finer yarn.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 27

WELSPUN INDIA LIMITED

Roving frames: reduces to a finer thread, gives more twist, makes more regular and even
in thickness, and winds on to a smaller tube.

3. Spinning- yarn manufacture

Spinning

The spinning machines take the roving thins it and twists it, creating yarn which it winds onto a
bobbin.
In mule spinning the roving is pulled off a bobbin and fed through some rollers, which are
feeding at several different speeds. This thins the roving at a consistent rate. If the roving was not
a consistent size, then this step could cause a break in the yarn, or could jam the machine. The
yarn is twisted through the spinning of the bobbin as the carriage moves out, and is rolled onto a
cop as the carriage returns. Mule spinning produces a finer thread than the less skilled ring
spinning.
The mule was an intermittent process, as the frame advanced and returned a distance of 5ft.It was
the descendant of 1779 Crompton device. It produces a softer less twisted thread that was
favored for fines and for weft.
The ring was a descendant of the Arkwright water Frame 1769. It was a continuous process; the
yard was coarser, had a greater twist and was stronger so was suited to be warp. Ring spinning is
slow due to the distance the thread must pass around the ring, other methods have been
introduced. These are collectively known as Break or Open-end spinning.
Sewing thread was made of several threads twisted together, or doubled.

Checking

This is the process where each of the bobbins is rewound to give a tighter bobbin.

Folding and twisting

DNV INTERNATIONAL EDUCATION ACADEMY

Page 28

WELSPUN INDIA LIMITED


Plying is done by pulling yarn from two or more bobbins and twisting it together, in the
opposite direction that in which it was spun. Depending on the weight desired, the cotton may or
may not be plied, and the number of strands twisted together varies.

Gassing

Gassing is the process of passing yarn, as distinct from fabric very rapidly through a series of
Bunsen gas flames in a gassing frame, in order to burn off the projecting fibers and make the
thread round and smooth and also brighter. Only the better qualities of yarn are gassed, such as
that used for voiles, poplins, venetians, gabardines, many Egyptian qualities, etc. There is a loss
of weight in gassing, which varies' about 5 to 8 per cent., so that if a 2/60's yarn is required 2/56's
would be used. The gassed yarn is darker in shade afterwards, but should not be scorched.

Mule spinning

Ring spinning

Measurements

Cotton Counts: The number of pieces of thread, 840 yards long needed to make up 1 lb
weight. 10 count cotton means that 10x840 yd weighs 1 lb. This is coarser than 40 count
cotton where 40x840 yards are needed. In the United Kingdom, Counts to 40s are coarse

DNV INTERNATIONAL EDUCATION ACADEMY

Page 29

WELSPUN INDIA LIMITED


(Oldham Counts), 40 to 80s are medium counts and above 80 is a fine count. In the
United States ones to 20s are coarse counts.

Hank: A length of 7 leas or 840 yards

Thread: A length of 54 in (the circumference of a warp beam)

Bundle: Usually 10 lb

Lea: A length of 80 threads or 120 yards

Denier: this is an alternative method. It is defined as a number that is equivalent to the


weight in grams of 9000m of a single yarn. 15 denier is finer than 30 denier.

Tex: is the weight in grams of 1 km of yarn.

The worsted hank is only 560 yd

4. Weaving-fabric manufacture
The weaving process uses a loom. The lengthways threads are known as the warp, and the
cross way threads are known as the weft. The warp which must be strong needs to be presented
to loom on a warp beam. The weft passes across the loom in a shuttle, that carries the yarn on a
pirn. These pirns are automatically changed by the loom. Thus, the yarn needs to be wrapped
onto a beam, and onto pirns before weaving can commence.

Winding

After being spun and plied, the cotton thread is taken to a warping room where the winding
machine takes the required length of yarn and winds it onto warpers bobbins

Warping or beaming

DNV INTERNATIONAL EDUCATION ACADEMY

Page 30

WELSPUN INDIA LIMITED

A Wrapper
Racks of bobbins are set up to hold the thread while it is rolled onto the warp bar of a loom.
Because the thread is fine, often three of these would be combined to get the desired thread
count.

Sizing

Slasher sizing machine needed for strengthening the warp by adding starch to reduce
breakage of the yarns .

Drawing in, Looming

The process of drawing each end of the warp separately through the dents of the reed and the
eyes of the healds, in the order indicated by the draft.

Pirning (Processing the weft)

Pirn winding frame was used to transfer the weft from cheeses of yarn onto the pirns that
would fit into the shuttle

Weaving

At this point, the thread is woven. Depending on the era, one person could manage anywhere
from 3 to 100 machines. In the mid nineteenth century, four was the standard number. A skilled
weaver in 1925 would run 6 Lancashire Looms. As time progressed new mechanisms were
added that stopped the loom any time something went wrong. The mechanisms checked for such
things as a broken warp thread, broken weft thread, the shuttle going straight across, and if the
shuttle was empty. Forty of these Northrop Looms or automatic looms could be operated by one
skilled worker.
The three primary movements of a loom are shedding, picking, and beating-up.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 31

WELSPUN INDIA LIMITED

Shedding: The operation of dividing the warp into two lines, so that the shuttle can pass
between these lines. There are two general kinds of sheds-"open" and "closed." Open
Shed-The warp threads are moved when the pattern requires it-from one line to the other.
Closed Shed the warp threads are all placed level in one line after each pick.

Picking: The operation of projecting the shuttle from side to side of the loom through the
division in the warp threads. This is done by the Over pick or under pick motions. The
over pick is suitable for quick-running looms, whereas the under pick is best for heavy or
slow looms.

Beating-up: The third primary movement of the loom when making cloth, and is the
action of the reed as it drives each pick of weft to the fell of the cloth.

A Draper loom in textile museum, Lowell, Massachusetts


The Lancashire Loom was the first semi-automatic loom. Jacquard looms and Dobby
looms are looms that have sophisticated methods of shedding. They may be separate looms, or
mechanisms added to a plain loom. A Northrop Loom was fully automatic and was mass
produced between 1909 and the mid 1960s. Modern looms run faster and do not use a shuttle:
there are air jet looms, water jet looms and rapier looms.
Measurements

DNV INTERNATIONAL EDUCATION ACADEMY

Page 32

WELSPUN INDIA LIMITED

Ends and Picks: Picks refer to the west, ends refer to the warp. The coarseness of the
cloth can be expressed as the number of picks and ends per quarter inch square, or per
inch square. Ends is always written first. For example: Heavy domestics are made from
coarse yarns, such as 10's to 14's warp and weft, and about 48 ends and 52 picks.

5. Finishing- processing of textiles


The grey cloth, woven cotton fabric in its loom-state, not only contains impurities, including
warp size, but requires further treatment in order to develop its full textile potential. Furthermore,
it may receive considerable added value by applying one or more finishing processes.
1. Design
Depending on the size that has been used, the cloth may be steeped in a dilute acid and then
rinsed, or enzymes may be used to break down the size.
2. Scouring
Scouring, is a chemical washing process carried out on cotton fabric to remove natural wax
and non-fibrous impurities (e.g the remains of seed fragments) from the fibers and any added
soiling or dirt. Scouring is usually carried in iron vessels called kiers. The fabric is boiled in an
alkali, which forms a soap with free fatty acids. (saponification). A kier is usually enclosed, so
the solution of sodium hydroxide can be boiled under pressure, excluding oxygen which would
degrade the cellulose in the fiber. If the appropriate reagents are used, scouring will also remove
size from the fabric although desizing often precedes scouring and is considered to be a separate
process known as fabric preparation. Preparation and scouring are prerequisites to most of the
other finishing processes. At this stage even the most naturally white cotton fibers are yellowish,
and bleaching, the next process, is required.
3. Bleaching
Bleaching improves whiteness by removing natural coloration and remaining trace impurities
from the cotton; the degree of bleaching necessary is determined by the required whiteness and
DNV INTERNATIONAL EDUCATION ACADEMY

Page 33

WELSPUN INDIA LIMITED


absorbency. Cotton being a vegetable fiber will be bleached using an oxidizing agent, such as
dilute sodium hypochlorite or dilute hydrogen peroxide. If the fabric is to be dyed a deep shade,
then lower levels of bleaching are acceptable, for example. However, for white bed sheetings
and medical applications, the highest levels of whiteness and absorbency are essential.
4. Mercerizing
A further possibility is mercerizing during which the fabric is treated with caustic soda solution
to cause swelling of the fibers. This results in improved luster, strength and dye affinity. Cotton is
mercerized under tension, and all alkali must be washed out before the tension is released or
shrinkage will take place. Mercerizing can take place directly on grey cloth, or after bleaching.
Many other chemical treatments may be applied to cotton fabrics to produce low flammability,
crease resist and other special effects but four important non-chemical finishing treatments are:
5. Singeing
Singeing is designed to burn off the surface fibers from the fabric to produce smoothness.
The fabric passes over brushes to raise the fibers, then passes over a plate heated by gas flames.
6. Raising
Another finishing process is raising. During raising, the fabric surface is treated with sharp
teeth to lift the surface fibers, thereby imparting hairiness, softness and warmth, as in flannelette.

7. Calendaring
Calendaring is the third important mechanical process, in which the fabric is passed between
heated rollers to generate smooth, polished or embossed effects depending on roller surface
properties and relative speeds.
8. Shrinking (Sanforizing)

DNV INTERNATIONAL EDUCATION ACADEMY

Page 34

WELSPUN INDIA LIMITED


Main article: Sanforization finally, mechanical shrinking (sometimes referred to as
sanforizing), whereby the fabric is forced to shrink width and/or lengthwise, creates a fabric in
which any residual tendency to shrink after subsequent laundering is minimal.
9. Dyeing
Finally, cotton is an absorbent fiber which responds readily to coloration processes. Dyeing,
for instance, is commonly carried out with an anionic direct dye by completely immersing the
fabric (or yarn) in an aqueous dyebath according to a prescribed procedure. For improved
fastness to washing, rubbing and light, other dyes such as vats and reactives are commonly used.
These require more complex chemistry during processing and are thus more expensive to apply.
10.

Printing

Printing, on the other hand, is the application of color in the form of a paste or ink to the
surface of a fabric, in a predetermined pattern. It may be considered as localized dyeing. Printing
designs on to already dyed fabric is also possible

Economic, environmental and political consequences of cotton


manufacture.
The growth of cotton is divided into two segments i.e. organic and genetically modified.
Cotton crop provides livelihood to millions of people but its production is becoming expensive
because of high water consumption, use of expensive pesticides, insecticides and fertilizer. GM
products aim to increase disease resistance and reduce the water required. The organic sector was
worth $583 million. GM cotton, in 2007, occupied 43% of cotton growing areas. The
consumption of energy in form of water and electricity is relatively high, especially in processes
like washing, de-sizing, bleaching, rinsing, dyeing, printing, coating and finishing. Processing is
time consuming. The major portion of water in textile industry is used for wet processing of
textile (70 per cent). Approximately 25 per cent of energy in the total textile production like fiber
production, spinning, twisting, weaving, knitting, clothing manufacturing etc. is used in dyeing.
About 34 per cent of energy is consumed in spinning, 23 per cent in weaving, 38 per cent in
chemical wet processing and five per cent in miscellaneous processes. Power dominates

DNV INTERNATIONAL EDUCATION ACADEMY

Page 35

WELSPUN INDIA LIMITED


consumption pattern in spinning and weaving, while thermal energy is the major factor for
chemical wet processing.
The techniques used to process these fibers in yarn are essentially the same as with natural
fibers, modifications have to be made as these fibers are of great length, and have no texture such
as the scales in cotton and wool that aid meshing.
2.3 Use of Technology or Machinery:
EDI & RFID in Welspun USA.
SAP R/3 - Integrates operations, marketing supply chain.
Reverse auction HNS.
Welspun is a leading practitioner of safety and have received the safety
certification of OHSAS - 18001 (HSE) and the ISO 14001 for environment
consciousness.
Preserving the ecological balance - Effluent treatment plants and the Waste
dispersal plants located in and around the Welspun City.
Integration with Customers Market Intelligence: Conducts Grid analysis of
top retailers with respect to Product range.
Ongoing Market Research for evaluation of:
Fast Moving Items best selling SKUs.
Profit margin expectation.
2.4 Quality Control during Production Process: Quality control is the more traditional way that business have used to manage quality. Quality
control is concerned with checking and reviewing work that has been done. Under traditional
quality control, inspection of products and services takes place during and at the end of
operation process.

There are three main points during the production process when inspection is performed:
1. When raw materials are received prior to entering production.
2. Whilst the products are going through production process.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 36

WELSPUN INDIA LIMITED


3. When products are finished inspection or testing takes place before products are
dispatched to customers.
The problem with this sort of inspection is that it doesnt work very well!
There are several problems with inspection during traditional quality control:
1. The inspection process does not add any value. If there were any guarantees that no
defective output would be produced , then there would be no need for an inspection
process in the first place.
2. Inspection is costly , in terms of both tangible and intangible cost. For example material,
labour, time, employee morale, customer goodwill and lost sales.
3.

It is sometime done to late in the production process. This results into defective and non
acceptable actually being received by customers.

4. It is usually done by wrong people e.g. by a separate quality control inspection team
rather than by the workers themselves.
5. Inspection is not often compatible with more modern production techniques.
6. Working capital tied up in stock which cannot be sold.
7. This is often disarrangement as to what constitutes a quality products. For example to
meet quotas , inspectors may approve goods that dont meet 100% confirmation giving
the message to workers that it doesnt matter if their work is a bit sloppy.
As result of above problems , many businesses focused their efforts on improving quality by
implementing quality management techniques which emphasizes the role of quality assurance.
As Deming wrote:
Inspection with the aim of finding bad ones and throwing them out is too late, inefficiently and
costly. Quality comes not from inspection but from improvement of the process.
2.5 Raw Materials: - The First step in production process is of Buying Cotton from the other
firms they Import Cotton from many firms all over the world. Specially Nepal, Pakistan, China
DNV INTERNATIONAL EDUCATION ACADEMY

Page 37

WELSPUN INDIA LIMITED


etc. From India they import cotton from SANKAR firm. The Cotton which has been brought
from these areas has been in much quantity & has been refreshed or cleaned by other heavy
machines with proper under guidance of the supervisors. The Cotton which is brought is loaded
in Spleasles.
Cleaning has been done with the help of employees.

2.6 Measures taken for Pollution Control: - Welspun City is additionally a prime
example of continuous efforts of protecting the environment with a strong emphasis on aforestation. The township is in the process of turning itself in the creation of the largest green
belt in the area, with a veritable forest of about 500,000 trees which includes the Jatropha tree,
the drought resistant perennial whose seeds is used to produce bio-diesel.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 38

WELSPUN INDIA LIMITED

3.PURCHASEAND
STORE
DEPARTMENT

3.1

Selection of Raw Material Suppliers:

Self sufficiency of raw materials

India has a vast pool of raw materials for textiles, both natural and man-made11.Cotton
textiles and clothing account for approximately one-third of global textile trade. China, India and
US accounts for approximately two thirds of global cotton production. Further, India is a country
which has a surplus cotton production as a result of its increased productivity in the last few
years. Other Asian countries such as China, Bangladesh, Pakistan, Thailand and Indonesia are net
importers of cotton. India's self sufficiency in cotton provides it a strong competitive advantage
in global textile and clothing trade
DNV INTERNATIONAL EDUCATION ACADEMY

Page 39

WELSPUN INDIA LIMITED


3.2

Storage of Raw Materials: -

Material is mainly stored in a huge

warehouses which are situated at near the production plant so it can be easily transported for
processing in the plant

3.3

Steps Taken for Safety of Raw Materials: Industrial center is your comprehensive source for safety and environmental product and
supplier information. You can view the latest safety and environmental product
information, articles, events, research and associations. Also search our Online Supplier
Directory, which is broken down into alarms, anti-fatigue,
Emergency response, ergonomics, eye protection, fall protection, foot protection, gates,
hand protection, head protection, hearing protection, lockout, tag out, machine guarding,
mats, medical equipment, first aid, monitoring equipment, protective clothes, rails,
respiratory protection and safety software subcategories.
Its all here to help you streamline your buying process, increase productivity, save time
and save money.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 40

WELSPUN INDIA LIMITED

4.PERSONAL
DEPARTMENT

Wels pun City , a 2500 acre township set up in the heart of Anjar is the
backbone of Wels pun. It was established in 2004 with an initial
investment of Rs. 13,500 million.

4.1

Recruitment and Selection: -

DNV INTERNATIONAL EDUCATION ACADEMY

Page 41

WELSPUN INDIA LIMITED


The process of recruitment has been undertaken for the appointment of the
employees. They give advertisement in newspapers or magazine or a journal with full
information like person required for the particular post with special knowledge & Experience in
that field, & then select accordingly.

External Forces

Internal Forces

Supply and
Demand

Recruitment
Policy

Unemployeemen
t rate

HRP
Recruitment

Labour Market

Size of the
firm

Image

Cost

Political and
Social

Growth and
expansion

4.2 Sources of Recruitment : The Welspun Company specially prefer to use the direct method of
requirement. So the main direct methods are as follows:-

Waiting List: This company maintains the application files in which applications received from casual
applicants are kept pending. Similarly when the number of candidates found to be fit for
job exceeds the number of vacancies, surplus candidates are also kept on waiting list. Such
records are useful whenever the vacancies arise.
(i) Friends & relatives of Present employees:-

DNV INTERNATIONAL EDUCATION ACADEMY

Page 42

WELSPUN INDIA LIMITED


This company prefer to use to get recommendation from their employees, the names of
their friends & relatives for employment. This method is the convenient method for labour
supply & helpful also in maintain goodwill and moral of the present employees.
When Experiences employees are not available through other sources, companies resort to
advertising. In this case, the most appropriate newspaper or journal can be used for the post
concerned.

4.3 Welfare, Motivation of Employees and training.

Welfare and Motivation of Employees:-

The Company provides the safety for the workers like as Helmet, Mask, Hand Glows etc.
Company also not forgets about the Employees Welfare. It provides In its sincere efforts to
improve the lives of children Welspun Vidya Mandir, a school up to class 10, affiliated under
the Central board of Secondary Education, India (CBSE) and Welspun Anganvadi, a preprimary school for children has been set up for children of Welspun employees and local
families. It also provides the Canteen facility, Medical Facility, and also provides the
Insurance Facility.
1.

Fair wages or salary has been provided to the employees working in various
departments.

2. They has been provided good working condition, like airy area with proper ventilation,
noise control instrument etc.
3. Employees safety measures have also been taken care like providing mask at a nonconditioning department.
4. Helmets & Shoes has been given to the people for their safety.
5. Big Canteen facility has been given to the employees.
6. Proper & with regular time gap Interval has been made in various departments.
7. Quarters has been given to the people who are working in the top level of the company.
8. Regular PF has been taken from the employees salary for the future welfare.
9. BUS service has been provided to the employees who are living far from the Industry.
DNV INTERNATIONAL EDUCATION ACADEMY

Page 43

WELSPUN INDIA LIMITED

Motivational Policy of the company:-

o PROVIDENT FUND
o BONUS
o RETIREMENT BENEFIT
o MEDICAL FACILITY
o EMPLOYEMENT INSURANCE SCHEME
o CHILD EDUCATION SCHEME

Training of Employees.
The employees which are selected & then they had been given the
training according to the work handled over to them like training to machine operators who are
standing over the machine, training to the person who checks the pieces produced, supervisors
are also given training to see that all the product had been finished without any default.
There is various other training like give knowledge of economics, human
relation, & Administration to the employees working over there.

4.4

Management Levels: Management Level:-

DNV INTERNATIONAL EDUCATION ACADEMY

Page 44

WELSPUN INDIA LIMITED

Top Level

Middle Level

Director

Labour Level
Labour

CEO

Welspun

(Contractor)

4.5 Working Hours


Daily three shift of 8 hours per shift
First shift

08:00 am to 04:00 pm

Second shift

04:00 pm to 12:00 am

Third shift

12:00 am to 08:00 am

In between every shift they provide recess of one 1 hour


Flexi timing policy (for corporate office)
o This policy is provided to staff members on need basis and will be considered on
case to case basis.
o

The flexibility provided above should be used in consultation with immediate


superior without affecting the work and with a prior sanction from HR
department. All the employees are however required to be present in the office
during the core time mentioned above.

4.6 ATTENDENCE AND IDENTITY CARD


The company provides identification cum punching card. Apart from the companys name and
address, the card has necessary details like employees name and code no. etc. This card is the
DNV INTERNATIONAL EDUCATION ACADEMY

Page 45

WELSPUN INDIA LIMITED


purpose for identity and security. In case of any damage or loss of the card by any employee
he/she will have to inform HR Dept. so that a duplicate card will be issued on extra charge.
In case any employee resigns or terminated from the service company. He/she has to return the
card to HR Dept.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 46

WELSPUN INDIA LIMITED

5 MARKETING
DEPARTMENT

5.1 Umbrella of Products, Brand Name & Positioning


In Welspun there is one of the kind textile mills which produce 2 products they
are:(1) Terry Towels.
(2) Bed Linen.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 47

WELSPUN INDIA LIMITED


These 2 products are the finest & the Best quality in the world. These products are
mostly exported to the top retailers of the Globe which includes most of the Fortune 100
companies like Wal-Mart, Target & P.C Penny almost others.

5.2

Segmentation and Targeting


Warehouse & Dispatch:All the finished products have been stored in warehouse & have been dispatched

at the time of requirement. These all products has been exported to the other countries by method
of transporting.
In this plant generally 24 tons product has been made in 24 hours. Welspun
generally does not Export their product in the general market but they export their product in
USA, JAPAN, CHINA, and various other countries of the world.

5.3 Market Research, Marketing Strategy


A. MARKET STRUCTURE
Consumers.
A majority of purchases in the home textiles segment are made for replacement purposes
and are discretionary in nature. The purchase of home textiles, therefore, gets deferred during
periods of economic slowdown and a subsequent economic upturn tends to be steeper than the
normal rate of consumption growth. Consumption patterns of households vary substantially
across geographies due to differences in culture, traditions and tastes. In the household textiles
sector, Welspun believes that brand awareness among consumers is limited, as can be derived
DNV INTERNATIONAL EDUCATION ACADEMY

Page 48

WELSPUN INDIA LIMITED


from the high market shares for interior department stores, specialty chains and variety chains
operating with their own private label and textile discounters, while super and hyper markets sell
unknown or fancy brand names.
Importers purchase products from manufacturers abroad and we estimate that they
generally add a 30-40% mark-up to cover commissions, credit risk, after-sales service and the
cost of carrying a local inventory to meet small orders. In contrast to the agent, this importer
holds his own stocks at his own risk.
Competition.
Welspun's efforts to sharpen competitive edge
Welspun has followed its defined strategy, improved product mix and optimized
utilization of assets. It has been successful in the optimization of raw material cost and major
input cost.
Welspun is further expanding/modernizing its manufacturing capacities with an objective
to attain increase in volume with lower overhead, better quality and replacement /up gradation of
old technology with the world class technology.
Welspun targets cost optimization with an aim to become the lowest cost producer of
home textiles globally and further aims to become the preferred partner in home textiles for
global initiative with its business model.

5.4

Market strategy

OVERVIEW OF THE INDIAN ECONOMY


India's GDP growth trend
Despite a challenging global economic environment, India's GDP grew at 7.2% in FY10,while
the manufacturing sector grew at 8.9%. It is expected to grow further at 8.5% inFY118 as per the
Economic Survey of India.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 49

WELSPUN INDIA LIMITED

GDP Growth Trend in India


The overall macro-economic trends have resulted in rising per capita income, increased
consumerism and higher consumer spending. A large proportion of this higher consumer
spending is towards textiles, apparel and lifestyle products. The chief reason for this has been
India's changing demographic profile. The disposable income in India is also expected to
increase significantly over the next decade. Welspun believes that the above factors strongly
suggest an ongoing structural shift in the demand pattern for textiles within the domestic
markets. This indicates that the textile industry is on the threshold of higher consumer demand
and consequently higher growth.
India's economy is on the fulcrum of an ever-increasing growth curve. With positive
indicators such as stable 8-9 percent overall annual growth, rising foreign exchange reserves and
rapidly expanding FDI inflows, India has emerged as the second fastest growing major economy
in the world after China.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 50

WELSPUN INDIA LIMITED

FINANCE
DEPARTMENT
6.

6.1 Cash Flow

Particulars

Mar'10

Mar'09

Mar'08

Mar'07

Mar'06

Profit Before Tax

170.46

26.47

41.45

82.48

63.28

Net Cash Flows from Operating Activity

142.31

127.73

119.99

47.15

34.54

Net Cash Used in Investing Activity

-64.91

-156.64

-233.92

-379.57

-384.50

Net Cash Used in Financing Activity

-83.20

25.66

41.99

415.40

351.06

Net Inc/Dec in Cash and Cash Equivalent

-5.80

-3.24

-71.94

82.98

1.10

Cash and Cash Equivalent - Beginning of the


88.81
Year

92.05

163.99

81.01

79.90

Cash and Equivalent - End of the Year

88.81

92.05

163.99

81.01

83.01

DNV INTERNATIONAL EDUCATION ACADEMY

Page 51

WELSPUN INDIA LIMITED

6.2 Profit And Loss Statement

Profit & Loss Welspun India Ltd.


Mar'10

Mar'09

Mar'08

Mar'07

Mar'06

12 Months

12 Months 12 Months

12 Months

12 Months

Sales Turnover

1,838.14

1,347.95

1,249.93

999.42

658.29

Excise Duty

12.79

1.18

3.11

2.38

1.72

NET SALES

1,825.35

1,346.77

1,246.82

997.04

656.58

Other Income

0.00

0.00

0.00

0.00

0.00

INCOME:

DNV INTERNATIONAL EDUCATION ACADEMY

Page 52

WELSPUN INDIA LIMITED


TOTAL INCOME

1,847.88

1,364.15

1,257.32

1,009.84

670.92

Manufacturing Expenses

226.62

174.40

141.97

113.03

72.87

Material Consumed

1,109.72

771.49

693.02

526.29

313.15

Personal Expenses

116.36

103.52

96.34

81.93

58.56

Selling Expenses

26.82

54.61

95.59

50.50

49.21

Administrative Expenses

34.67

41.93

43.92

33.32

35.34

Expenses Capitalized

0.00

0.00

0.00

0.00

0.00

Provisions Made

0.00

0.00

0.00

0.00

0.00

TOTAL EXPENDITURE

1,514.20

1,145.94

1,070.83

805.08

529.12

Operating Profit

311.15

200.82

175.99

191.96

127.45

EBITDA

333.68

218.20

186.49

204.75

141.79

Depreciation

106.32

95.30

84.72

65.06

48.61

Other Write-offs

0.00

0.00

0.00

0.00

0.00

EBIT

227.35

122.90

101.77

139.69

93.18

Interest

105.51

105.97

73.85

50.72

38.35

EBT

121.84

16.93

27.92

88.97

54.84

Taxes

52.23

-5.17

15.19

31.13

21.73

Profit and Loss for the Year

69.62

22.10

12.74

57.85

33.11

Non Recurring Items

7.19

-0.5

13.48

-6.49

-0.4

Other Non Cash Adjustments

38.20

9.37

0.05

0.75

8.86

Other Adjustments

0.00

0.00

0.00

0.00

0.00

EXPENDITURE:

DNV INTERNATIONAL EDUCATION ACADEMY

Page 53

WELSPUN INDIA LIMITED


REPORTED PAT

115.01

30.90

26.27

52.10

41.55

Preference Dividend

1.74

0.00

0.00

0.00

0.00

Equity Dividend

7.31

0.00

0.00

0.00

0.00

Equity Dividend (%)

10.00

0.00

0.00

0.00

0.00

Shares in Issue (Lakh)

730.90

730.90

730.90

730.90

730.90

EPS - Annualized (Rs)

15.73

4.23

3.59

7.13

5.68

Mar'08

Mar'07

Mar'06

KEY ITEMS

6.3 Balance Sheet

Balance sheet Wels pun India Ltd.


Particulars

Mar'10

Mar'09

Liabilities

12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital

78.09

78.09

78.09

81.09

104.19

Reserves & Surplus

539.80

482.14

480.73

461.69

446.65

Net Worth

617.89

560.23

558.82

542.78

550.84

Secured Loans

1,616.36

1,608.91

1,523.57

1,382.11

797.22

Unsecured Loans

41.74

50.00

18.27

12.09

42.31

TOTAL LIABILITIES

2,275.98

2,219.14

2,100.66

1,936.98

1,390.37

Assets

DNV INTERNATIONAL EDUCATION ACADEMY

Page 54

WELSPUN INDIA LIMITED


Gross Block

2,031.45

1,912.12

1,703.39

1,395.98

1,065.51

(-) Acc. Depreciation

524.60

423.14

332.76

249.08

187.00

Net Block

1,506.85

1,488.98

1,370.63

1,146.89

878.51

Capital Work in Progress.

23.98

93.81

142.10

134.29

147.12

Investments.

92.94

104.67

90.48

166.54

105.72

Inventories

354.43

210.56

290.19

236.64

195.13

Sundry Debtors

173.35

152.39

75.34

88.95

41.73

Cash And Bank

83.01

88.81

92.05

163.99

81.01

Loans And Advances

453.64

459.80

374.24

225.24

141.11

Total Current Assets

1,064.44

911.57

831.83

714.83

458.98

Current Liabilities

397.57

375.38

307.78

222.68

187.52

Provisions

14.66

4.50

26.59

2.89

12.44

Total Current Liabilities

412.23

379.88

334.37

225.57

199.96

NET CURRENT ASSETS

652.20

531.68

497.46

489.25

259.02

Misc. Expenses

0.00

0.00

0.00

0.00

0.00

TOTAL ASSETS (A+B+C+D+E)

2,275.98

2,219.14

2,100.66

1,936.98

1,390.37

DNV INTERNATIONAL EDUCATION ACADEMY

Page 55

WELSPUN INDIA LIMITED

8.S.W.O.T
ANALYSIS

DNV INTERNATIONAL EDUCATION ACADEMY

Page 56

WELSPUN INDIA LIMITED

STRENGTHS
1) India is rich in highly trained manpower. So it is like a treasury for
welspun in requirement of employees.
2) India is highly competitive in spinning sector and has presence in
almost all processes of the value chain. Due to this welspun have a
easy availability of advanced equipment and tools.
3) welspun is very diverse in size, manufacturing facility, type of
apparel produced, quantity and quality of output, cost, requirement
for fabric etc. It comprises suppliers of ready-made garments for
both, domestic or export markets.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 57

WELSPUN INDIA LIMITED

WEAKNESSES
1) The reservation of production for very small companies that was
imposed with the intention to help out small scale companies across
the country, led substantial fragmentation that distorted the
competitiveness of industry.
2) Indian labour laws are relatively unfavorable to the trades and there
is an urgent need for labour reforms in India.
3) India seriously lacks in trade pact memberships, which leads to
restricted access to the other major markets.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 58

WELSPUN INDIA LIMITED

OPPORTUNITIES
1) As welspun is a branded public company it has the opportunities
spread their products easily in the country.
2) It can play a vital role in the GDP of our country as it has wide
foreign direct investment.
3) As it has a large premises it can be helpful in reduction of
unemployment which is a contravarcial problem of the country.
4) Now Wels pun is producing a limited products. It has opportunity to
increase the numbers of product.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 59

WELSPUN INDIA LIMITED

THREATS
1) Wels pun is working in the free trade zone which is valid for ten years
only. So is has to leave or plan something else.
2) Competition from other developing countries, especially China.
3) To balance the demand and supply.
4) To make balance between price and quality.
Threat for Traditional Market for Power loom and Hand loom Products
and forcing them for product diversification.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 60

WELSPUN INDIA LIMITED

9. CONCLUSION
From this project report I can conclude that the welspun textile industry
is a important of our country.
94% of the total products are exported.
It gives me great pleasure to note that Kutch is well and truly on its way
to becoming an industrial paradise.
Wels pun is Asia 's largest and amongst the top 2 Terry Towel producers
in the World.
I am happy to witness the participation of key international players like
Wels pun who have contributed handsomely to bring Anjar back to its
full glory.
A promise that extends well beyond economic and commercial growth
and includes social development too.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 61

WELSPUN INDIA LIMITED

10.

BIBLIOGRAPHY

The whole information is collected from the following


resources.
1) Human Resource Management (Garry Dessler, K. Aswathappa,
Ivan) of its 9th edition.
2) www.welspun.com
3) Search engine Google.

DNV INTERNATIONAL EDUCATION ACADEMY

Page 62

Вам также может понравиться