CONTENTS

1 INTRODUCTION

1-34

INDUSTRY ANALYSIS
HISTORY OF JUTE INDUSTRY
MEANINGS TO THE INDUSTRY
JUTE INDUSTRY STRUCTURE
INDUSTRY PERFORMANCES
DEMANDS AND SUPPLY IN THE INDUSTRY
INDUSTRY PRACTICES
INDUSTRY ENVIRONMENT
NATURE OF COMPETITION IN THE INDUSTRY
H.R. PRACTICES
ISSUES AND DEVELOPMENT
PROCESS OF PRODUCTION
ARTICLES ON JUTE INDUSTRY.
2- COMPANY PROFILE

35-39

ABOUT THE COMPANY WINSOME INTERNATIONAL LTD.

SALES FIGURE AND DETAILS OF SALES
PLACES TO IT WHICH THE COMPANY SUPPLYS
QUALITY OF THE PRODUCT
GRAPH OF THE COMPANY.
3- MARKETING STRATEGIES AFFECTING ON SALES.

40-51

FOR 1ST YEAR

2ND YEAR
3RD YEAR
4TH YEAR
5TH YEAR

4- SWOT ANALYSIS
STRENGHTS
WEAKNESS
OPPORTUNITIES
THREATS

52-59

5- CONCLUSION, FINDINGS,BIBLIOGRAPHY

60-62

CHAPTER-1
INDUSTRY ANALYSIS
HISTORY OF JUTE INDUSTRY
MEANINGS TO THE INDUSTRY
JUTE INDUSTRY STRUCTURE
INDUSTRY PERFORMANCES
DEMANDS AND SUPPLY IN THE INDUSTRY
INDUSTRY PRACTICES
INDUSTRY ENVIRONMENT
NATURE OF COMPETITION IN THE INDUSTRY
H.R. PRACTICES
ISSUES AND DEVELOPMENT
PROCESS OF PRODUCTION
ARTICLES ON JUTE INDUSTRY.

INDUSTRY ANALYSIS
3

INDUSTRY
Definition
A basic category of business activity. The term industry is sometimes used to describe a
very precise business activity(e.g.semiconductors) or a more generic business activity
(e.g.consumer durables). If a company participates in multiple business activities, it is
usually considered to be in the industry in which most of its revenues are derived
INDUSTRY ANALYSIS
Definition
A market assessment tool designed to provide a business with an idea of the complexity
of a particular industry. Industry analysis involves reviewing the economic, political and
market factors that influence the way the industry develops. Major factors can include the
power wielded by suppliers and buyers, the condition of competitors, and the likelihood
of new market entrants

JUTE INDUSTRY ANALYSIS

Jute is the most versatile fiber gifted to man by nature. Known mainly as the raw material
for making sacks, jute finds extensive use in the making of handicrafts today.The
products like bags, home furnishing, apparel, textile industrial goods, carpets &
handicrafts are made of the ECO-friendly natural fiber are JUTE PRODUCTS
OBJECTIVES
4

TO STUDY THE JUTE INDUSTRY IN INDIA.

TO STUDY THE COMPANY AND ITS PRODUCTION.
TO STUDY THE IMPACT OF MARKETING STRATEGIES ON SALES.
MAKE AN OVERALL ANALYSIS OF THE INDUSTRY.
HISTORY OF JUTE INDUSTRY
Indian Jute Industry
The jute industry occupies an important place in the Indian economy. Providing direct
employment to about 0.26 million workers and around 4.0 million workers indirectly in
the allied sectors, Indian jute industry is an integral part of the Indian Textile Industry. It
is a very old industry, predominant in the eastern part of India. The Government has
included the Jute Sector for special attention in its National Common Minimum
Programme.

Jute Technology Mission

The Government of India has started the "Jute Technology Mission" keeping in view the
growing contribution of the industry to the economy. This will benefit jute growers, the
workers engaged in the sector, jute entrepreneurs and others employed in related
activities. It will play a vital role in modernizing the jute industry and help the country to
5

reap the benefits of enhanced levels of jute diversification.

Jute Mills
Jute mills comprising the industry are located in West Bengal (the maximum number of
mills is here), Andhra Pradesh, Assam, Orissa, Uttar Pradesh, Bihar, Tripura and
Chhattisgarh. India has around 78 jute mills and the eastern state of West Bengal alone
has around 61 jute mills. The central government owns 6 jute mills, the state government
4, 2 jute mills are under cooperatives, and 64 jute mills are under private ownerships.
Earnings
This industry today accounts for a turnover of Rs 6,500 crore annually, contributing to
exports to the tune of nearly Rs.1000 crore. In the financial year 2006-07 (AprilSeptember) exports of total jute products was at 104.3 thousand M.T whose value was
Rs. 583.55 crore.
Organizations
Organizations which control the Indian Jute Industry are as follows:
WINSOME INTERNATIONAL LTD. KOLKATA
National Centre for Jute diversification, Kolkata

Jute Manufacturers Development Council, Kolkata

National Jute Manufacturers Corporation
Jute Corporation of India Ltd., Kolkata
Birds jute & Exports Ltd.
Institute of Jute technology, Kolkata
Indian Jute Industries Research Association, Kolkata

Acts and Rules

The various Acts and Rules which govern the Indian Jute Industry are as follows:
Jute & Jute Textiles Control Order, 2000
Jute Packaging Materials (Compulsory use in Packing Commodities), Act, 1987
Jute Manufactures Cess Act, 1983
Jute Manufactures Development Council Act, 1983

Advantages of Indian Jute Industry

Largest production of raw jute in the world
Largets production of jute finished goods
Environment friendly packaging material
Availability of large scale skilled and cheap labor
Availability of entrepreneurial skills
Huge export potential of jute products
Large domestic market
Flexible textile manufacturing systems
Demerits of Indian Jute Industry

Imports of cheap and alternative textiles from other Asian countries

Use of old methods of manufacturing
Poor supply chain management
Huge decentralized and unorganized sector
High production cost

MEANINGS TO THE INDUSTRY

1) Enable millions of jute farmers to produce better quality jute fibre for
value added diversified jute products and enable them to enhance per hectare
yield of raw jute substantially.
2) Facilitate the Jute Sector to attain and sustain a pre-eminent global
standing in the manufacture and export of jute products.
3) Enable the jute industry to build world class state-of-the-art
manufacturing capabilities in conformity with environmental standards, and,
for this purpose, to encourage Foreign Direct Investment, as well as research
and development in the sector.
7

4) Sustain and strengthen the traditional knowledge, skills, and capabilities

of our weavers and craftspeople engaged in the manufacture of traditional as
well as innovative jute products.
.5) Expand productive employment by enabling the growth of the industry;
Make Information Technology (IT), an integral part of the entire value chain
of jute and the production of jute goods, and thereby facilitate the industry to
achieve international standards in terms of quality, design, and marketing.
.Increase the quantity of exports of jute and jute products by achieving a
CAGR of 15% per annum.
6) Involve and ensure the active co-operation and partnership of
State Governments, Financial Institutions, Entrepreneurs, and Farmers;
organization in the fulfillment of these objectives.

JUTE INDUSTRY STRUCTURE

PRODUCTS

Jute Bags
Jute bags imprinted with designs can be used for promotion of a
company or as a corporate and personal gift.
Cotton Bags
Cotton bags in various shapes, styles and sizes are ideal for almost all
occasions and can be put to number of uses.

Wine Bags
Wine bags in eco friendly materials are a perfect choice for storing your
best wine and also for gifting purpose.
Designer Bags
Jute designer bags are manufactured in every possible design and have
an inimitable style.
Christmas Bags
Christmas bags are ideal for both personal use and corporate promotion
and gifting.
Jute Dresses
We manufacture an exclusive range of dresses in unusual patterns
including stripes, checks and in different color combinations.

Jute Cushion Covers

Made from eco friendly material, Jute cushion covers have been an
inherent part of the home furnishings.

Jute Mats
Attractive jute mats in bright shade combinations and attractive weaves
are easy to wash and maintain.

Jute Trays
Innovatively designed and easy to clean, maintain and durable jute trays
can last for years to come.
Jute Placemats
Attractive jute placemats in spectrum of shades and attractive weaves
are easy to wash and maintain.
Jute Carpets
Hand woven and machine made jute carpets are in innovative designs
and patterns are in demand the world over.
Jute Fashion Accessories
We design and create elegant and highly fashionable jute accessories
from superior quality and eco friendly jute.
9

Jute Stationery
Our collection of jute stationery is both stylish and handy. These
products are designed for both corporate and personal use.

JUTE NECKLACE

JUTE BANGLES AND CLIBS

10

INDUSTRY PETFORMANCE
PRODUTION
Production of jute goods during 2000-01 was an all time record of 16.78 lakh tonnes as
against 14 lakhs tonnes in 1998-99. Production during 1999-2000 (April/Oct.) also
recorded a marginal increase by 1% to reach 9.37 lakh tonnes from 9.32 lakh tonnes
during the same period of last year. This increase in production is attributable to
comfortable raw jute availability at reasonable rates at the beginning of the current year,
stable domestic demand and consequent normal functioning of jute mills. If the current
trend is maintained, production of jute goods is likely to touch around 16 lakh tonnes.

11

PRODUCTION OF JUTE GOODS

QTY : IN 000' M.T. VALUE : Rs / Crores
(APRIL /
MARCH)

HESSIA SACKI
N
NG

CB
C

OTHE
RS

TOT
AL

CORRESPONDING
CONSUMPTION OF
RAW JUTE IN '000
BALES

200203

413.9

676.3

30.5 5312.3

1433

8290

2003 04

368.7

666.6

25.2 340.4

1400.
8023
9

2004 05

392.4

864.6

19.8 401.6

1678.
9598
4

2005 06

344.1

903.3

18.5 330.3

1596.
9068
2

2007 08

344.5

909.2

328.5

1590.
9087
2

2008 09

337.9

952.9

6.6

327.5

1624.
9280
9

2009 10

275.3

1034.3

286.2

1600.
9142
8

2010 11

338.3

1000

5.4

278.1

1621.
9262
8

2011 12

305.2

979.3

5.7

281.1

1571.
3

TURNOVER
Jute industry alone accounts for an annual turnover of Rs 6,500 crore and the value of
export of total jute products is nearly Rs1000 crore.
The Indian jute industry with a turnover of Rs 5,500 crore is finding more takers for
bio-degradable, eco-friendly jute made-ups both in the domestic and international
markets. The rising demand for value-added jute products has encouraged SME jute
players to go for diversification and modernization of their product base.

12

Although the jute sectors mainstay will be packaging material for agro-food
commodities, the small-scale units in the industry also need to expand their product
lines and enter into the production of non-traditional jute items such as soil saver,
decorative fabrics and special Hessian, said Hukmi Chand Bang, proprietor of India
Jute Mills, a small-sized jute mill in Murshidabad, West Bengal.
Some small-scale jute mills in the country have already started using the natural fibre
to make a variety of items including fancy party bags, stylish clutch bags, laundry
bags, rucksacks, branded totes, shopping bags and wine bags.
Given that the market demand for value-added jute products is robust, most smallscale units in the industry are looking at ways to take up product diversification,
while many are also making sincere attempts to revamp their stores and modernise
their machineries and equipments, said Sanjay Dhelia, proprietor of Aaltex
International, a leading Kolkata-based manufacturer and exporter of jute products,
especially different types of fashionable jute bags.
Besides small jute players making an attempt to modernise their units, the Jute
Manufactures Development Council (JMDC) is also doing its bit by initiating a
massive modernisation drive in the jute sector to enable jute units to diversify their
product portfolio.
PROFITABILITY
The Indian jute industry, which dates back to over a century, is one of the oldest
industries in the country. Dominated primarily by small-sized players, the industry is
an important generator of revenue and employment for a large section of the rural
population. Over the years, owing to increasing demand in international markets, the
industry has become largely export-oriented.
Although the market for Indian jute products has witnessed moderate growth in the
last decade, several factors have prevented it from expanding further. Some of these
factors include poor technology and stiff competition from Bangladeshi exporters.
13

In addition, the global economic recession has led to declining sales for most jute
exporters.
Notwithstanding the turmoil in the international markets, Indian jute exporters have
been reporting healthy margins in recent times. This can be attributed largely to the
sudden surge in demand for Indian jute products in the UK.
Indias jute exports in 2008-09 stood at an impressive Rs 200 crore, significantly
higher than the Rs 120 crore reported in 2007-08. Notably, a considerable share of
Indian jute products was exported to the European market.
According to market experts, the ban on plastic and non-biodegradable bags in the
UK has been the key factor behind the sudden increase in jute exports from India.
Moreover,
The volumes of jute exports from Bangladesh have been low due to poor monsoons
and crop failures. This has put the Indian SMEs in the jute segment in an
advantageous position.
To capitalise on the rising popularity and demand for Indian jute products, Indian SMEs
should focus on producing different varieties of jute items. They should also ensure that
their products are competitively priced in order to compete with the Bangladeshi
TOTAL DEMAND AND SUPPLY OF JUTE INDUSTRY
Though jute and jute products are enjoying growth in global demands, its production has
not increased accordingly, since paddy is coming out as a more lucrative harvest for jute
producers.
Even if the current market price for raw jute is Rs. 2,000-2,200 per quintal, the harvesters
are switching over to paddy production as they can generate more income through it.
This is creating an acute gap between the demand and supply of jute, said Mr. AK Barua,
Marketing Manager Jute Corporation of India (JCI). Demand of various procurement
agencies for raw jute has increased to 2.4-2.5 million bales per year, which was around
1.5 million bales before 2 years.
14

Demand for jute and jute products is rising across the world due to the awareness among
people regarding the benefits of the products made from eco-friendly materials such as
jute, said Mr. TK Mandal, Deputy Director, office of the jute commissioner

Around 70-75 percent of total jute production of the country is consumed domestically,
however, according to the Textile Minister Mr. Dayanidhi Maran, markets for jute should
also be developed in foreign countries as its a right time for jute fiber to cash on the
global trend in support of natural fibre.
He added that the stakeholders need to take efforts, such as modernizing work process
and exploring new markets, to make jute products price competitive. Jute producers have
not exploited the benefits of the technology up-gradation funds scheme, he added

INDUSTRY PRACTICES
DISTRIBUTION
. Under the Jute Packaging Materials Act, 1987
(JPM Act), the Government is empowered to consider and provide for the compulsory
of jute packaging material in the supply and distribution of certain commodities in
theinterests of production of raw jute and jute packaging material and of persons
engaged inthe production thereof and for matters connected therewith.
Sacking of Food grain and Sugar consumes approximately 58% of the raw jute produced
in the country. The jute sector occupies an important place in the economy of India in
15

General and eastern sector in particular. It is estimated that the jute industry provides
Directs employment to 0.37 million workers in organized mills and in diversified units
Including tertiary sector and allied activities and supports the livelihood of around 4.0
Million farm families. Therefore, there is a need for protection in the form of reserving
Certain commodities for packaging in jute.
PROMOTION

Promoting arrangements for better marketing and sale of jute.

Suggesting norms of efficiency for jute industry aiming at optimum production, cost
reduction, quality improvement and product standardization.

Devising marketing strategy for maintaining and improving of existing markets and
development of new markets outside India for jute manufactures.

Sponsoring and co-ordinating technilogical and economic research on matters directly

beneficial to the development of jute sector.

Promoting or undertaking the collection and formulationof statistics regarding jute

industry.

Propagating information useful to the growers,dealers and exporters of jute and

producers or manufacturers of jute goods.

Council in its effort towards prioritising promotional activities with focus on

product-market linkage conducts or commissions product, market and
entrepreneurs specific survey and studies.

INDUSTRY ENVIORMENT

16

JUTE INDUSTRY LIFE CYCLE

Till 1947 Indian jute mills dominated the world jute market with 70% of its products
finding place in the global market. It was after the partition in 1947 when almost all jute
producing area went under East Pakistan (now Bangladesh) causing decline to Indian jute
market. At the same time, major jute consuming nations switched to bulk handling
systems and developed alternate synthetic packing materials. Two other issues faced by
Indian jute industry were:
(a) Dependence for raw jute on East Pakistan.
(b) Rapid decline of export market.
Gradually, jute goods exports declined by 30% from 70%. In spite of constraints, jute
goods production showed a gradual increment. In 1947, the total jute production was 10
lakhs MT and the same figure was 16.2 lakhs in 2003 MT respectively. In five decades,
Indian Jute industry expanded by 62%. In recent times plastic bags substituted jute bags
and thus jute was in the verge of extinction. In order to revamp jute industry, in 1987
Government of India reserved the packing of traditional commodities, viz, sugar, food
grains with jute material by proclaiming the Mandatory Jute Packaging Act (PJMA)
1987. Today PJMA is restricted to 100% coverage for sugar & foodgrains, which is the
main bread earner for the industry. Now, in the face of multidimensional threats this
industry is again confronted with danger of extinct.

NATURE OF COMPETITION
. There is an expansion of the market for jute composite products and geo-textiles in both
the domestic and International sectors. Continued and focused attention will be given to
handicrafts, which will include the upgradation of skills, the creation of a better work
17

environment, design and technology intervention, and the development of clusters for
specific crafts with common service facilities, and the overall improvement of
infrastructure, and market development.
A full-fledged Design and Development Centre, and dedicated retail outlets in publicprivate initiative mode for diversified jute products in all the towns and cities with a
population of more than 5 lakhs will be established

Domestic Marketing:
Considering the immense potential of jute products in the domestic market, focused
attention will be given to untapped sectors. The thrust will be on adopting suitable
market promotion programmes for increasing consumer awareness, and highlighting the
environmental advantages of jute by working closely with environment groups.
International Marketing
With the objective of increasing exports to Rs.5000 crore by 2010 from the present level
of Rs.1000 crores:
A multi-disciplinary institutional mechanism will be established to formulate policy
measures and specific action plans, including those relating to the WTO and for closely
monitoring financing proposals;
Strategic alliances will be forged with an aim to gain access to technology;
A brand equity fund, exclusively for jute and jute products will be set up. This will be
consistent with WTO norms;
The proposed Jute Board will incorporate an Export Promotion Council which will play
the role of facilitator and professional consultant for dealing with disputes under various
agreements of the WTO, establishing warehousing facilities in major jute and jute
18

product importing countries, and identifying the existing patent issues with a view to
patenting Indian R&D efforts
MARKETING STRATEGIES

HC Bang, Proprietor, India Jute Mills, says, Earlier, jute items were used as
sacks for packing food grains, cement, wheat and sugar, but today it is used for
different purposes and is considered very fashionable. Designers and handicraft
artisans are using the natural fibre for making a variety of items including fancy
party bags, stylish clutch bags, laundry bags, rucksacks, branded totes, shopping
bags and wine bags.

The rising popularity of jute items has prompted small and mid-sized
companies to revamp their processes, introduce better designs and adopt new
marketing strategies. Jute companies have begun exploring various solutions
to improve their process technology and expand their product base to woo
international buyers.

As M Mukherjee, Spokesperson, Basu Exports, says, Keeping in view the

increasing market demand for green goods, we are largely focusing on the
optimum usage of eco-friendly geo-jute and soil savers. In addition, we are also
working towards increasing our productivity and diversifying our product
range.

Besides, the government has also begun taking initiatives to help small jute
companies upgrade their manufacturing processes and modernise their units.
The Jute Manufactures Development Council (JMDC) has already initiated a
massive modernisation drive in the jute sector to enable jute units to diversify
their product portfolio.

19

HR PRACTICES

There are 73 jute mills in the country, of which 59 are situated in West Bengal, 3
each in Bihar and UP, 4 in Andhra Pradesh and 1 each in Assam, Orissa, Tripura
and MP. At the end of October, 1998, the total number of looms installed in the
industry stood at 44035 and installed spindles at 546836 on the fine side and
84612 on the coarse side. These jute mills employ around 2.32 lakh workers. The
maximum achievable spinning capacity in the organised mill sector is estimated
to be of the order of 18.6 lakh tonnes per annum. As on 23.11.98, only six mills
were lying closed. Out of these six mills two mills namely , Kanpur Jute Udyog
in UP and Katihar Jute in Bihar are lying closed for more than 12 years. These
two closed mills had employed a total of 2340 workers before closure.

With the rise of inescapable competition facing the Indian jute sector, both in the
international and domestic markets, it will be the endeavour of the Government

20

to facilitate upgrading the skills of both workers, and supervisors and managerial
staff who are employed in the jute industry. The Government will support
programmes of organisations and institutions engaged in HRD that address the
professional manpower needs of the industry, as well as at the cutting edge level
of workers and shop-floor supervisors. Institutions will be encouraged to
network and pool their resources and co-operate amongst themselves. IT will
become an integral part of the HRD effort recognizing its vital role in a
progressively IT driven global economic environment.

RECENT ISSUES AND DEVELOPMENT

The a view to streamline the supply of jute bags, the Indian Jute Mills Association
(IJMA) has sought third party study on logistics issues connected with the
despatch of jute goods.

The association has pointed out that the third party study needs to be
commissioned at the earliest by the Directorate General of Supply and Disposal
(DGS&D) to overcome the problem

The issues pertaining to logistics of the dispatch of jute bags were taken up in a
meeting held on Monday between VP Gupta, deputy director general (S&D) and
the representatives of IJMA.

Domestic Market Development

Promoting arrangements for better marketing and sale of jute.

Organisation of domestic exhibitions and sales.

21

Collaboration with the apex state and central marketing agencies and jointly
organising show rooms, exhibition etc.

Holding of seminars, workshops and live demonstration.

Grant of financial support to jute training institutions.

Running of promotional offices.

Export Market Development

Implementation of External Market Assistance (EMA) scheme.

Providing trade intelligence services to the manufacturer exporter.

Partnership in the specialised trade shows and fairs.

Sponsoring of market exploratory mission.

Organisation of buyer-seller meets.

Commissioning of product specific and market specific studies.

Carrying out of publicity and promotional campaigns. Release of informative

Running of common textiles promotional offices a strategic cities abroad.

Changing scenario of Jute industry

At present, jute has been defined as an eco-friendly natural fiber with utmost
versatility ranging from low value geo-textiles to high value carpet, apparel,
composites, decoratives, upholstery furnishings etc.

22

In future, a number of jute mills and mini-jute plants have been seen to be
engaged in jute products and jute blended yarns. We all know that the uses of jute
are manifold, with the traditional usage pattern remaining constricted to packing,
hessian and carpet backing.

The jute sector in India engages a key role in the Indian economy, providing
direct employment to about 0.26 million workers, and supporting the lives of
around 4.0 million farm families. Around 0.14 million people are believed to be
engaged in the tertiary sector, that supports the jute industry. Currently it also
contributes to exports to the tune of about Rs. 1000 crore.

EXPORT GROWTH

India's jute goods export increased by over 45 per cent in March 2009 to 15
million dollar as compared to 28 million dollar in the same period last year owing
to poor off take in major markets of the US and Europe. During 2008-09, the jute
product shipments fell 9.5 per cent to 296 million dollar from 327 million dollar
in the previous fiscal, according to the official data.

The major jute exportable items from India are Hessain, floor coverings and
shopping bags. Industry experts feel that besides less orders from the US and
European markets, hit by the global economic crisis, the sector is also facing
tough competition from its neighbour Banglades which enjoys an
advantage of natural fibre and commands a bigger share than India in the global
jute market
23

Export Promotion Bureau (EPB) statistics shows that jute goods worth US$30.20
lakh exported to Australia in fiscal year 2008-09 while the total export to the
country was US$901.39 lakh. The countrys overall export of jute goods in fiscal
year 2008-09 was US$269.25 million

Jute sector employs about four million farm families, besides providing direct
employment to about 2.6 lakh industrial workers and livelihood to another 1.4
lakh persons in the tertiary sector and allied activitie.

JUTE MANUFACTURING PROCESS

Raw jute in the form of bales are processed in jute mills to produce hessian, sacking, jute
yarn, bags, and other useful products. Raw jute bales from jute fields or suppliers,
carried by trucks are unloaded are stacked in the jute mills gowdown. The production of
jute goods from raw jute processing involves the following steps:
SELECTION
In the selection process, raw jute bales are opened to find out any defect and to remove
the defective portion from the mora by experienced workers. Raw jute bales are of two
types i.e. 150 kg weight and 180 kg weight with or without top portion cutting. The bales
are assorted according to end use like Hessiean weft, Sacking wrap, Sacking weft etc.
After selection, jute bales are carried to softning section by workers called Gariwala and
Bajawala.
24

Softning :
In softning process jute morahs are made soft and pileable. Two methods are used for
softning; use of softning machine and use of jute good spreader. Generally an emulsion
plant with jute softner machine is used to lubricate and soften the bark and gummy raw
jute. The emulsion plant consists of gear pump, motor, vat, jet sprayer, nozzles, emulsion
tank and the jacket. In this softning process jute becomes soft and pileable and suitable
for carding.
Piling and pile Breaking :
The main function of pile breaker is to break the pile and serve it to the carding
machines. The softner machine out put material carried by pilemen through a bile to the
pile place for pilling. During piling a superficial moisture penetrates inside fibre and
"Thermo fillic" action take place which softner the hard portion of the root. After piling
for nearly 24 hours the pile breakers carry the material to the carding machine.
Generally root cutting is done after piling near the hand feed breaker carding machine.
The root weight varies from 5 to 7% of the total weight of jute.
Carding :
Carding is a combining operation where jute reeds are splitted and extraneous matters are
removed. Jute fibres are formed into ribbon called "sliver". There are three different
carding sections: (i) breaker carding (ii) inner carding (iii) and finisher carding
Breaker Carding :
In different jute mills the carding operations has been carried out in two ways:
a. Hand feed breaker carding
b. Rool feed breaker carding
The material after piling more than 24 hours is used in hand feed breaker where the
material after piling for 12 hours used in the rool feed carding.
In the Breaker carding machine soften jute after piling is feed by hand in suitable weight.
The machine by action with different rollers turns out raw jute in the form of jute sliver
for finisher carding. In this process root cutting is necessary before feeding the material
to the hand feed breaker carding machine.
Finisher Carding :
Finisher carding machine make the sliver more uniform and regular in length and weight
obtained from the Breaker carding machine. Finisher carding machine is identical to the
Breaker carding machine, having more pair of rollers, staves, pinning arrangement and
speed. Nearly 4 to 12 slivers obtained from Breaker carding machine is fed on this
machine. The material thus obtained is send to drawing section.

25

Drawing
Drawing is a process for reducing sliver width and thickness by simultaneously mixing 4
to 6 sliver together. There are three types of Drawing Frame machine. In most mills 3
Drawing passages are used in Hessian and 2 Drawing passages are used in Sacking.
First Drawing :
The slivers obtained from finisher carding machine is fed with four slivers on to the first
drawing frame machine. The first drawing frame machines makes blending,
equalising the sliver and doubling two or more slivers, level and provide quality and
colour. This machines includes delivery roller, pressing roller, retaining roller, faller
screw sliders, check spring, back spring, crimpling box etc..
Second Drawing :
In second drawing, the Second Drawing Frame machine obtain the sliver from the First
drawing machine and use six slivers and deliveries per head. The Second Drawing
machine makes more uniform sliver and reduce the jute into a suitable size for third
drawing.
Third Drawing :
In the third drawing, the Third Drawing frame machine uses the sliver from second
drawing. The Third Drawing machine is of high speed makes the sliver more crimpled
and suitable for spinning. The comparison of the three drawing process:
Productivity
Mt/mc/shift
Drawing Process
Efficiency Range (%)
Ist Drawing

55 - 73

1.75 - 2.2

IInd Drawing

64 - 74

1.62 - 1.9

IIIrd Drawing

67 - 70

1.31 - 1.4

Spinning :
Spinning is the process for producing yarn from sliver obtained from Third drawing.
In the spinning process slivers are elongated and fibres are twisted into yarn to impart
strength. spun yarns in the spinning process are wound onto Bobbins. after to fill the
empty bobbins with yarn machine is stopped, replace these bobbins by empty bobbins.
The entire time is called an average cycle time. The time for replacing the bobbins full of
yarn by empty bobbins is called softing time.
The jute spinning frame machine is fitted with slip draft zone and capable of producing
quality yarns at high efficiency with auto-dofting arrangements also. A 4', pithch slipdraft sliver frames available of 20 spindles 100 spindles, having a production range 8 uls
to 28 uls with a flyer speed of 3200 to 4000 RPM. Spinning of several types of yarn is
26

processed by spinning frame machine usingdifferent kinds of bobbins, such as: Food
Grade HCF, Sacking Wrap, Hessian Wrap, Hessian Weft.
Winding :
Winding is a process which provides yarn as spools and cops for the requirement of
beaming and weaving operations. There are two types of winding :
(i) Spool Winding
(ii) and Cope Winding
(i)

Spool Winding
In Spool Winding yarn is produces for warp (the longitudinal yarn). Spool
winding machine consists of a number of spindles. There is wide variation in
the number of spindles per machines from one make to another. Productivity
of spool winding depends on the surface speed of the spindle and machine
utilisation.
Spool winding machine uses the bobbins contain smaller length of yarn. This
machine wound the yarn into bigger packages known as 'spool'. The Spool are
used in making sheets of yarn to form warp portion used during interleecment
of weaving.

(ii)

Cop Winding
Cop Winding machine obtain yarns from the spinning machines. The
spinning bobbins is placed on a suitable pin on top of the cop machine and
yarn tension is maintained by means of a small leaver. The yarn on the
bobbins are cnverted into hollow cylindrical package said to be cop. The cop
is used to form Transverse thread during interlacement of weaving. Generally
a cop winding machines consist 120 spindles.

Beaming :
Beaming process is follows after spool winding. In Beaming operation yarn from spool
is wounded over a beam of proper width and correct number of ends to weave jute cloth.
To increase the quality of woven cloth and weaving efficiency, the wrap yarns are coated
with starch paste. Adequate moisture is essential in this process.
Quality characteristic of a beam is width of beam - number of ends and weight of stand
and there is a continuous passage of yarn through starch solution from spools to the
beam.
Strach solution in water contains tamerine kernel powder (TKP), antiseptic - sodium
silica fluride (NaSiF4) and its concentration varies with the quality of yarn.
27

Weaving :
Weaving is a process of interlacement of two series of threads called "wrap" and "weft"
yarns to produce the fabric of desired quality. There are separate looms for hessian and
sacking in weaving section. The Hessian looms, shuttle which contents cops (weft yarn)
is manually changed. The sacking looms are equipped with eco-loader to load a cop
automatically into the shuttle.
Dumping :
Dumping is the process in which the rolled woven cloth is unrolled and water is sprinkled
on it continuously to provide desired moisture. Each roll is generally104 yards or 95.976
meters. Damping is done manually.
Calendering :
Calendering is a process similar to ironing of fabric. After damping the damped fabric
passes through pairs of heavy rollers rendering threads in fabric flattened and improve the
quality and appearance.
Lapping :
Lapping is the process in which Hessian fabrics are folded into the required size used in
"Bale press" operation on the lapping machine.
Cutting :
Cutting is the process where the sacking cloth is cut to the required length for making
bags for different size such as A-Twill bags and B-twill bags of 100 kg capacity.
Hemming :
In Hemming process, the raw edges of sacking cloth cut pieces are shown by folding it
with sewing machine.
Herackele Sewing :
In Herackele sewing the sides of sacking cloth cut pieces are shown to make a complete
bag.

Bailing :
Bags or Bale processing cloths are pressed compactly according to buyers need.
28

METHODOLOGY
A research design is the arrangement of condition for collection and analysis of data in a
manner that to, combine relevance to research purpose with economy in procedure.
Research Design: -It is a conceptual structure within which research is conducted. It
constitutes the blue print of collection, measurement and analysis of data. Research
Design is needed because it facilitates the smooth sailing of various research operations,
thereby making research as efficient as possible yielding maximum information with
minimum time, effort and money. Research Design stands for advance planning of
methods to be used for collecting relevant data and techniques to be used in the
analysis .The design helps researcher to organize his ideas whereby it will be possible for
him to look for flaws and inadequacies.

29

Method of data collection: -The study is mainly based on secondary data.Information was
collected through directly from MR. PRATIK CHORARIA, even with the help by the
manager of the company (Winsome international ltd.)
Major Growing Areas
Jute thrives best in damp heat, and the climatic conditions prevalent in West Bengal in
India are well suited for its cultivation. Indian states ideally suitable for the cultivation of
jute are: - West Bengal - Bihar - Assam - Orissa - Uttar Pradesh
Mesta, or Kenif, botanically known as Hibiscus Cannabinus, is also grown in these areas
as a textile fiber. Mesta is a coarser, more brittle fians ber, and is used by the jute mills in
admixture with jute to obtain certain desired properties.
SCOPE- My project is made to the scope of one of the industry, who is king in the sector
that is winsome international ltd. and not that I have studied any other industries.
I have studied its rise in the sales and it productions of the company.
What all strategies use by the company.
The growth depicts the goodwill of the company.
SCOPE OF THE INDUSTRY- my scope is to determine the companys sales of five years
with its increments in the profits .
I have analysed its sales of 5 years , to what all sectors it provides its jute , what all
techniques used by the company ,and what is the overcome to it .
I have to know the rising of the demands as it is publicly banned by the government of
the india, so the scope of increments of the sales for the jute is always increasing these
days.
As it is known that there is banninig of use of plastics, so the scope of increments rises
too.
LIMITATIONSThe project ,I have done is limited to the the company itself only.
The gatheration of data is through the company and its members.
The data is limited to the sector of jute industry.

Articles on jute industry

Reopening of Jute Mills in Bangladesh to Create 4000 Jobs

30

By Staff / February 8, 2013 / No Comments

Chittagong, Bangladesh In various cities of Bangladesh around 4,000 direct job
opportunities are going to be created in the jute industry, as the Government has restarted
two closed jute mills and also has plans to reopen another to rejuvenate the countrys jute
sector. Aiming to re-establish the industry at its past glorious position, the Government is
planning to reopen Khulna-based Daulatpur Jute Mills, and already reopened Chittagong-based Forat-Karnaphuli Carpet Factory and Karnaphuli Jute Mills on 26 January,
2013. Of these, the Daulatpur Jute Mills has been carrying out test run for jute production
since April 2012, and is ready for launch of commercial operations, according to the
state-owned Bangladesh Jute Mills Corporation (BJMC).
Upon reopening, the three mills would function under the BJMC, and boost the
Corporations annual production capacity from the present 230,000 tons to 250,000 tons
at optimum levels. BJMC, which owns 24 jute mills, 18 of which are operational, has already developed a project for modernization and expansion of these mills. The project
includes replacing of obsolete machinery, refurbish-ment of old factory premises,
developing new premises and replacing cables.
During last fiscal, BJMC produced 176,000 tons of jute as compared to its previous
fiscals production of 160,000 tons. BJMC exported Tk 10.58 billion worth of jute items
during last fiscal, which is higher than its previous years exports of Tk 9.43 billion
Major fire at Baranagar jute mill in north Kolkata
TNN Feb 29, 2012, 11.44PM IST
KOLKATA: A major fire broke out at Baranagar jute mill on the banks of Ganga in north
Kolkata on Wednesday evening.
According to Bengali TV channel Star Ananda, the fire broke out at around 8.45pm.
Twelve fire tenders have been pressed to bring it under control. Fire was raging at
11.20pm, the channel said
Jute workers protest
PTI Feb 5, 2002, 12.27am IST
kolkata: over 8,000 workers of national jute manufacturers' corporation on monday
staged a demonstration outside its office protesting against any move to privatise njmc
mills. the workers, who assembled at the venue at the call of central trade unions,
submitted a seven-point charter of demands to the authorities, demanding, among others,
removal of 'inefficient' management, jute purchase by jci, immediate payment of wages to
workers, appointment of full-time cmd for njmc, besides maintaining njmc as a public
sector unit.

31

Promoting jute on streets

TNN Oct 4, 2005, 12.16am IST
BANGALORE: What do you do to catch the public eye on the busy MG Road? Do
something different, jara hatke. That's what a group of participants did at a roadshow to
promote a jute exhibition which began at the Institute of Engineers here on Monday.
The group captured the attention of at least 50 persons, including children and even
policemen passing by the boulevard. What attracted the crowd was a policeman on stage
(one of the characters) and another off-stage watching the scene with eagle eyes.
'Jute sculptures' in CP recreate royal procession
TNN Oct 1, 2010, 12.48am IST
NEW DELHI: Tourists visiting the capital during the Commonwealth Games will get to
savour the choicest Indian delicacies in the backdrop of unique sculptures made of jute
and bamboo in Connaught Place. In an effort to showcase the 'Green' Games, Delhi
Tourism is setting up a jute presentation depicting the passage of a royal family through
Delhi streets right across Shivaji Stadium Metro station at Baba Kharak Singh Marg.
The concept about life in Shahjahanabad required over 70 artisans from four states
to build sculptures ranging from horses, camels, elephants and soldiers to even a queen in
a palki.
Jute Fair 2013 From 11th Feb.
Written by Administrator Feb 07, 2013 at 09:23 PM
Port Blair, Feb. 7: The National Jute Board (NJB) has been promoting Indian Jute
Products and creating awareness among the masses by organizing a series of market
promotion activities in various parts of the country with active participation of Jute
Entrepreneurs, SHGs (Self Help Groups), NGOs (Non Governmental Organizations)
engaged in jute diversification activities.
As part of its promotional activities, NJB is organising a JUTE FAIR in Port Blair, in
collaboration with ANCON at Atul Smriti Samity (Bengali Club) from 11 th to 17 th
February, 2013 (11am to 8pm). The fair will be inaugurated by Shri Anand Prakash, IAS,
Chief Secretary, A&N Administration at 6 pm on 11 th February 2013. The fair will
comprise of Display-Cum-Sale of Lifestyle Jute Products.
Jute entrepreneurs from different parts of the country are showcasing their environmentfriendly jute consumer products like Handicrafts, Fancy jute bags, Shopping bags, Gift
articles, wall hanging, soft luggage, home textiles, fabrics, made-ups etc.

32

New panel on MSP for jute set up

KOLKATA: The jute commissioner has constituted a sub-committee this time to
recommend inter-regional differential of various grades of jute and mesta for minimum
support prices (MSPs) based on the official MSP of Rs 1,195 per quintal basis TD-5
(Assam) for 2008-09 jute season.
The decision of setting up the sub-committee has been taken recently after a recent
discussion held at the office of the jute commissioner on fixing MSPs of various grades
of raw jute at different locations. Accordingly, the sub-committee has been formed under
the chairmanship of JCI CMD RC Tiwari.
To examine different parameters of raw jute grown in different regions, to suggest interregional differential in price based on quality and utility of raw jute grower in different
locations and any other recommendations of the committee, if any.
Conventionally, the office of jute commissioner as a competent authority under the
relevant section of Jute and Jute Textile Control Order (J&JTCO) did the excise of fixing
derivative prices for various grades of raw jute and mesta in different jute growing areas
in the country till last year.
The constitution of a subcommittee this time has raised many eyebrows in the local jute
industry and trade circles. This is more so, as JCI happens to be an official nodal agency
for raw jute trade and is assigned to procure raw jute so that fibre prices do not rule below
the official benchmark or MSP in the interest of jute farmers.
But the jute industry is surprised that while forming such a committee, Ijma, which is the
official representative body of the industry, was not consulted by JCI CMD. However, the
manufacturing jute mills are the end users of raw jute and are members of Ijma. Recently,
Ijma chairman has written to jute commissioner Binod Kispotta pointing out this
omission as the power to fix prices of raw jute is officially delegated to him under the
Jute & Jute Textiles Control Order, 2000.
The Ijma chief has requested the jute commissioner to include nominees from the jute
industry and director (jute development), department of agriculture in the panel. Besides,
nominated representatives of West Bengal government and jute growers should also be
included in the committee in overall interest of the jute sector.
The jute commissioner has advised JCI CMD to make necessary correction in the subcommittee considering views expressed by Ijma. Meanwhile, the jute industry has urged
the Union textile secretary to intervene and order an inquiry into the case of unfair
allocation of B.Twill jute bag order to a city-based jute group by the office of jute
commissioner. The industry has also requested the secretary to ensure that such biased
allocations are not made in the future.

33

This concerns the allocation of 58,110 bales for Punjab meant for March delivery where
the group has been awarded around 5% more share than its eligible percentage of 2.84%.
Consequently, it has deceived the share of allocation of rightful quota of B.Twill to other
performing jute mills.
BASU, N.C.: Jute and how to improve its quality, Benga. Agric. J.3.
BANERJEE, D.P.: Diversification o/ the Indian Jute Industry, Industrial Situation in
India,
Vol. VI, No. 1 January, lCJ77.
CHAUDHURI, M.R.: Aprofile ofthe Jute Industry in India, Industrial Situation in India,
o Vol. VI, No. 1, January, lCJ77.
DEY, P.B.: A study o/India sExpon Trade in Jute Goods in relation to its Problems and
Prospects, Industrial Situation in India. Vol. VI, No. 1, January, lCJ77.
GHOSH SUNIL KUMAR: Cost o/Production and the Difficulties ofIntensive Cultivation
ofJute in ~st Bengal, Industrial Situation in India. Vol. VI, No. 1, January, lCJ77.
GUPTA, S.M.: Jute and its quality classification, Jute Bulletin, March, 1949.
GANGULI, S.M.: The problem o/ Grow More Iute, Assam Jute Bulletin, July 1947.
RADHAKRISHNAN, T.: An Improved Future for Jute Goods, Industrial Situation in
India,
Vol. VI, No. 1, January, lCJ77.
RAY, D.C.: The Rivals o/ Jute, .Jute Bulletin, May, 1950

CHAPTER-2

34

ABOUT THE COMPANY WINSOME

INTERNATIONAL LTD.
SALES FIGURE AND DETAILS OF SALES
PLACES TO IT WHICH THE COMPANY
SUPPLYS
QUALITY OF THE PRODUCT
GRAPH OF THE COMPANY.

COMPANY PROFILE
WINSOME INTERNATIONAL LTD.

WINSOME INTERNATIONAL LTD. Is a company having its registered

office at 1, G T Road, Champdany, Baidyabati, Hooghly 712 222. The
company holds a Jute Mill manufacturing jute bags from jute fibre having
35

its capacity of 115 MT / day in 3 shifts. Its Head Office is situated at 16A
Brabourne Road, Kolkata : 700001. This is closely held company. This
belongs to Shri Prakash Chand Choraria, his friends & associates.
Textile Industry obtains fibre from Agriculture (cotton & jutes, etc.) animals and
worms (wool, silk, etc.) and from chemicals (synthetic, terrene, viscose, etc). Jute
is the production which is cheapest in all fibres. Its agriculture is common to
Eastern India including Bengal, A=Bihar, Assam, etc. THE JUTE MILL Is situated
in West Bengal. It obtains its fibre from Assam, Bengal and Bihar.
Jute textile is mainly meant for packaging in the form of jute bags or hessian
cloth. The production of Jute bag is about 60% of the total production whereas
30% is the production in hessian cloth and the balance 10% are for other purpose
like carpets, jute bags and other fancy materials. Jute Mill produces mainly jute
bags and 30% of its capacity is utilized for manufacturing hessian cloth.

Hessain cloth is sold in the open market because its use are many. This is
also laminated with plastic rolls in order to provide safety from water. Jute
bags are used for packing particularly food grains, sugar, spices, vegetables,
etc. The sizes of the jute bags is dependant on the type of its use.
However, some of the sizes are standardized by Indian Standard Institute of
India which are called as ISI mark.

The country India

has Public Distribution System (PDS) for distribution of

food items to the public through the Ration Shop at fixed prices which are
distributed even at discounted prices. The Government of India also
maintains buffer stock of wheat, rice and other items. This procurement of
food is doe by the agencies of the Central Government and also by the
State Government.

36

Jute MILL is a registered Jute Mill with the Governments. As such the
major part of the jute bags manufactured by it are supplied to the Central
and State Governments and its agencies.
Jute MILL had following sales in term of Indian rupees for last

1.

2007 08

Rs.107.01 crores

2.

2008 09

Rs.104.03 crores

3.

2009 10

Rs.111.18 crores

4.

2010 11

Rs.127.25 crores

5.

2011 12

Rs.138.05 crores

years :

In last 5 years the company contacted Sugar Mills as its direct customers
instead of supplying it through middle man (traders & brokers). Sugar
granules are very small in comparison to rice or wheat. As a result, this
requires very thickly woven bags so that sugar does not come out of it.
This bag is called A-twill. Jute MILL had improved its quality in last 5
years substantially. The biggest and most famous sugar mill like Balrampur
Chini, Bajaj Hindusthan, Bilar Sugar Mills, L H Sugar have preferred to
obtain their requirement of A-twill bags from Jute MILL . This was very
good strategy to improve its size.

DGS&D i.e Director General of Supply & Disposal is the Central agency to
procure any production for Central or State Government. This has very
wide network throughout the country. Jute MILL is duly registered with
DGS&D and its get continues order throughout the year from the DGS&D.
But, A-twill bag for sugar, packing are acquired directly or indirectly by
the sugar mills without any intervention by the governments. Since the
quality of A-twill bags of WINSOME is acceptable widely, it has no
difficulty to sale its production directly to sugar mills and it has improved
day by day in last 5 years.

Many government agencies or state government do not acquire their

requirement for jute bags through DGS&D. They procure jute bags by
37

floating tenders.Jute MILL has participated more and more directly in the
tenders floated by State Government agencies and had been successfully to
obtain such orders in last 5 years.

1.

UP Co-op. Sugar Factories Federation Ltd

2.

The Maharashtra State Co-op Federation Ltd

3.

Madhya Pradesh State supplier Corpn Ltd

4.

Haryana State Federation of Co-op Sugar Mills

5.

Maharashtrab State Co-op Tribal Development Co Ltd

6.

Uttarakhand Sugar

Jute MILL is trying to obtain the export order for fancy items like jute
bags, carpets, curtains, fancy hangings, etc. Recently they participated in
International Trade Fair in many countries. The plan is ahead of putting up
some retail shops in USA, Germany, Dubai, etc. to export jute goods
manufactured by the company.

THE JUTE MILL NOT ONLY SELLS GOODS TO ITS SUGAR MILLS, BUT
ALSO DIRECT SELLING TO RETAILERS , RICE MILLS AND ETC.
THE FOLLOWING GRAPH DEPICTS THE COMPANYS GROWTH IN FIVE
YEARS OF THERE SALES.

38

39

CHAPTER-3
MARKETING STRATEGIES
AFFECTING ON SALES
FOR 1ST YEAR
2ND YEAR
3RD YEAR
4TH YEAR
5TH YEAR

40

MARKETING STRATEGIES EFFECTING ON THERE SALES.

THE COMPANY USES ITS SOME OF THE TECHNIQUES LIKE DIRECT
SELLING TO SUGAR MILLS, RICE MILLS, AND VARIOUS OTHER SOURCES
AND TO RETAILERS.
THE

FOLLOWING

DEPICTS

THE

SALES

OF THE

COMPANY

IN

QUANTITIES IN THOUSANDS {000}

1ST YEAR

1125

1899

2056

2190

2386

2ND YEAR

1000

1500

1690

1849

2088

3RD YEAR

1500

2156

2396

2285

2999

4TH YEAR

1963

2222

2986

2500

3600

5TH YEAR

2189

2988

3351

2751

3995

PLACES

TO

WHICH

IT

SUPPLYS

IS

TO

RICE

MILLS,

MILLS,DIRECT SELLING,GOVERNMENT OF KOLKATA,

SUGAR

TO OTHER

STATES.

41

MARKETING STRATEGIES AFFECTING ON SALES

FOR THE 1ST YEAR AS WE CAN SEE THE SALES ARE NORMAL AND IT
DEPICTS THAT THE COMPANY IS NOT MUCH USING ITS SOURCES LIKE
FOR PROMOTION OR PROMOTING IN SALES OF THERE GOODS.
FIRSTLY THEY USE TO BE WITH THE TENDERS WHO USE TO HELP THE
COMPANY IN THERE SALES, BUT IT DOES NOT SUPPORTED MUCH.
THE COMPANY IS SELLING TO MANY SOURCES LIKE SUGAR MILLS ,
RICE MILLS, RETAILERS, CONSUMERS , AND SOME OF THE STATE
GOVERNMENTS OF OUR COUNTRY.
WE CAN SEE THE FOLLOWING GRAPH IN THE PORTIONS OF THERE
SALES.

42

MY CONCLUSION IS THAT THE COMPANY WAS NOT EARNING SUPER

PROFITS, BUT NORMAL PROFITS AND HENCE PRODUCTION AND SALES
WAS ALSO LESS, AS THEY USE TO BE IN TOUCH WITH TENDERS MUCH
SO THERE SALES WERE MUCH DEPENDENT ON THEM RATHER THAN
ANY OTHER SOURCES APPLIED FOR SALES IN STRATEGIES.

43

IN 2ND YEAR WE CAN SEE THAT THE SALES HAVE BEEN REDUCED DUE
TO THE COMPANY WAS SHUT FOR SOME TIME DUE TO STRIKES BY THE
LABOURERS IN THE COMPANY.
WE CAN SEE THE SALES IN AMOUNT WHICH WAS IN 107 CRORES GONE
DOWN TO 104 CRORES WAS DUE TO STRIKES IN THE COMPANY.AND
HENCE THE COMPANY VALUE DECREASED BY 3 CRORES AND THE
PARTNERS PROFITS ALSO DECREASED. THE COMPANY WAS SHUT FOR
AROUND 3-4 MONTHS.
THE FOLLOWING IS THE PIE GRAPH-

AS WE CAN SEE FROM THE ABOVE SALES FIGURE THAT THERE IS A

DEPROVEMENT IN THE SALES DUE TO SOME OF THE LABOURERS AND
HENCE A DECLINE IN PRODUCTION COSTED A COMPANY A SMALL LOSS
OF 3 CRORES IN THE SALES.

44

THERE IS NOT ONLY A DEPROVEMENT IN THE SALES OF ANY OF THE

PARTS TO WHICH THEY SERVE BUT TO ALL THE DEPARTMENTS.

CONCLUSION: ON THE ABOVE ANALYSIS WE CAN DEPICT THAT THE

COMPANY COULD HAVE MEET SOME OF THE DEMANDS OF THE
LABORERS

AND COULD RUN THE THE COMPANY WELL AND

IMPROVED, NOT ONLY IN SALES BUT ALSO IN THE PROFITS OF THE

COMPANY. THE COMPANY WAS SHUT FOR 3-4 MONTHS.

45

IN THE 3RD YEAR WE CAN SEE THAT THE COMPANYS SALES HAS
IMPROVED IN A GOOD STRENGTH DUE TO PICK UP IN THE FOUNDATION
OF FEW OF MORE PURCHASERS IN VARIOUS DEPARTMENTS AND HENCE
IT IMPROVED IN THE SALES AND PROFITS OF THE COMPANY.
THE FOLLOWING IS THE GRAPH :

WE CAN SEE AS FROM THE ABOVE GRAPH AND DATA THAT THERE IS A
SUPER INCREMENT IN SALES NOT ONLY AS FROM THE PREVIOUS YEAR
BUT ALSO FROM THE FIRST YEAR IN ALL THE DEPARTMENTS.

CONCLUSION: AS FROM THE ABOVE GRAPH WE CAN DEPICT THAT THE

COMPANY WAS GETTING IN TOUCH WITH MANY NEW AREAS AND
OTHER PLACES OF THE DEMANDS , SO COMPANY EARNED SUPER

46

PROFITS FROM THAT OF FIRST YEAR ALSO. SO THE FIRM SHOULD

WORK HARD LIKE THAT ONLY.

AS WE CAN SEE THE PRODUCTION ALSO HAS INCREASED FROM OVER

THE YEARS , SO DEFINETLY NOT ONLY WITH THE TENDERS BUT ALSO
FROM VARIOUS SOURCES COMPANY GETS DEMAND FOR THE GOODS .
WE CAN SEE THE PAST YEARS THAT THE SALES WERE NORMAL, BUT IN
SECOND YEAR IT WAS GONE DOWN AND AGAIN IT HAS GROWN. SO THE
COMPANYS GOODWILL IS RECOGNISED AND IMPROVED AROUND THE
SURROUNDINGS.

47

IN THE 4TH YEAR WE CAN SEE THAT THE COMPANY HAS AN GREAT
IMPROVEMENTS AS THE IMPROVEMENTS IN THE PRODUCTION AND
IMPROVEMENT IN THE QUALITY OF THE PRODUCTS.
THE COMPANY IS NOT ONLY SUPPLYING TO ITS STATE AT KOLKATA
BUT ALSO TO OTHER VARIOUS SOURCES OR PLACES TO OTHER CITIES.
WE CAN SEE NOT ONLY A SUPER PRODUCTION IN THE GOODS BUT ALSO
IN THE SALES.
THE PARTNERS OF THE COMPANY HAS INVESTED MORE IN THE
COMPANY AND THEREFORE , HOWEVERLY AN IMPROVEMENT IS THERE
IN THE COMPANY.
THE FOLLOWING IS THE GRAPH WHICH SHOWS THERE SUPER
INCREMENT IN THE SALES OF THE COMPANY.

CONCLUSIONS: A COMPANY CANNOT DEVELOPE BY ITS OWN, BUT IT

HAS TO BE IMPROVED BY THERE MEMBERS.

48

THE COMPANY IS NOT ONLY IN THE PROFITS BUT ALSO THE

PRODUCTION AND THE SALES VOLUME HAS INCREASED IN THE
PERIODS OF 3 YEARS .
SO IT DEPICTS THAT THE COMPANY SHOULD FURTHER PROCEEDS THE
TECHNIQUES USED AND IT WILL IMPROVE THE COMPANYS FINANCIAL
GOALS AND MEETING OF THE DEMANDS OF THE CONSUMERS.
THOUGH THEY WERE BEFORE NOT WELL RECOGNISED IN THE
BEGINNING BUT NOW IT HAS BEEN KNOWN AS ONE OF THE BIG
INDUSTRIES IN INDIA FOR THE JUTE.
WHEN THERE WERE MANT TRADE FAIRS , THE COMPANY WAS KNOWN
AS THE THE KING OF JUTE INDUSTRY.

49

IN THE 5TH YEAR OF THE COMPANY WE CAN DEPICT THAT THE

COMPANY IS INCREASED TO SOME EXTENT NOT AS THE IMPROVEMENT
LIKE FROM 3RD YEAR TO 4TH YEAR.
THE SALES WITH THE VOLUME AND MEETING THE DEMANDS OF THE
COMPANY,IT IS INCREASED.
AS FROM THE COUNTRY INDIA, THE LATEST NEWS TO NOT TO USE
PLASTICS AND USE JUTE BAGS , IT HAS IMPROVED THE SALES OF THE
COMPANY.
THE FOLLOWING IS THE GRAPH OF THE SALES OF 5 TH YEAR OF THE
COMPANY.

50

CONCLUSION: THE COMPANY CAN STILL EXTEND ITS SALES AS IT IS

PUBLICLY ANNOUNCED THAT NOT TO USE PLASTICS ABOVE 40
MACRONS. IT WILL HELP THE COMPANY TO FRTHER RELEASE OUT
MORE SALES .
THERE IS A SLIGHT INCREMENTS IN SALES OF THE COMPANY AS
DEMANDS BY THE SUGAR MILLS AND RICE MILLS HAS INCREASED TOO.
COMPANY IS NOT ONLY IN TOUCH WITH THE TENDORS BUT ALSO THEY
ARE TRYING THERE LEVEL BEST TO SHOW THAT THEY ARE
PRODUCING A- QUALITY MATERIALS WHICH WILL HELP THE SUGAR
MILLS A LOT BY USING THIS TYPE OF FABRICS.

51

CHAPTER-4
SWOT ANALYSIS
STRENGHTS
WEAKNESS
OPPORTUNITIES
THREATS

52

SWOT analysis of jute industry

Despite its fortune on decline, jute is an emerging niche market with plenty of
opportunities for growth and the future of jute lies in its scope of work, declare
Pooja Sharma, Neeraj Kaushik and K N Chaterjee, mooting proposals for the
industry's revamp.

Twenty-first century witnessed a new resurgent and resolute Indian industry in

terms of volume as well as in quality. India has become a hub of not only
Information Technology, Textile, Bio-Technology but also of Leather, Automobile
and other Industries. India experienced the economic growth of 8 - 9% per
annum. The progress of industry has not been achieved overnight but it is the
effect of sustained and gradual efforts by the government & its associate bodies.

Textile & garment industry is among the second highest employment provider in
India after agriculture. It is the mother industry in India, like most of the
industrialised nations, and given the present economic development, it has the
potential to propel the economy at least for next few decades. With the ATC
(Agreement on Textile & Clothing) agreement under WTO (World Trade
Organisation), the global textile industry is presenting enormous potential, at the
same time challenges for nations.

Traditionally India's core competence is in garment sector, however increasing

competition necessitates her to explore new arena and develop her competence
there. Jute industry in this regard presents a vast scope. Jute exists in nature as
weeds. The word jute was used by Roxburgh, Superintendent, Botanical Garden,
Shibpur, West Bengal in 1795 in his letter to the Board of Directors, East India
Company. At that time Oriya word 'Jote' or 'Jhuta' was used for this type of fibre.
Thus, the word jute was the anglicised version of these words. Jute is a natural
vegetable fibre under the category of bast fibres like flax, hemp, kenaf and ramie.
Jute is annually renewable plant belonging to the genus Corchorus of the order
Tiliacea. For commercial use two species, viz, Corchorus olitorious and
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Corchorus capsularis, commonly known as Tossa and white jute respectively are
produced.

In the year 1832 - 33, a spinner in Dundee, UK successfully spun jute yarn of
acceptable quality using machinery in blends with other fibres. After a year or
two, 100% jute yarn was spun easily by applying whale oil and water in the
process. Later in 1855, the first jute mill was established in India, near the present
Hasting Jute Mill.. In a span of 10 years Indian jute goods took over the Dundee
jute goods in world market. Thus started decline of Dundee jute mills and last mill
was closed down in 1996.

At present, an average of 9,71,000 hectares of land is under raw jute cultivation,

and the production of raw jute has been 10,940 thousand bales for last four years.
There are 77 jute mills in India out of which 60 are in West Bengal followed by
Andhra Pradesh where 7 mills are established. The average production of jute has
been 1,597 thousand tons per year and its domestic demand has been 1,372
thousand tons per annum. There are 9 units of jute which are working as 100%
export oriented units, and the average export of jute for last four years have been
286 thousand tons or Rs 10,746 million per annum.

Jute Industry: Growth & Decline

Till 1947 Indian jute mills dominated the world jute market with 70% of its products
finding place in the global market. It was after the partition in 1947 when almost all jute
producing area went under East Pakistan (now Bangladesh) causing decline to Indian jute
market. At the same time, major jute consuming nations switched to bulk handling
systems and developed alternate synthetic packing materials. Two other issues faced by
Indian jute industry were:
Gradually, jute goods exports increased by 30% to 70%. In spite of constraints, jute
goods production showed a gradual increment. In 1947, the total jute production was 10
54

lakhs MT and the same figure was 16.2 lakhs in 2003 MT respectively [6]. In five decades,
Indian Jute industry expanded by 62%. In recent times plastic bags substituted jute bags
and thus jute was in the verge of extinction. In order to revamp jute industry, in 1987
Government of India reserved the packing of traditional commodities, viz, sugar, food
grains with jute material by proclaiming the Mandatory Jute Packaging Act (PJMA)
1987. Today PJMA is restricted to 100% coverage for sugar & foodgrains, which is the
main bread earner for the industry. Now, in the face of multidimensional threats this
industry is again confronted with danger of extinct
For the successful revamp of Indian Jute Industry, a turnaround strategy is the need of the
hour. The authors have endeavoured to critically analyse the strengths, weaknesses,
opportunity and threats (SWOT Analysis) of this industry.

STRENTHS

Jute is a labor intensive industry, which engages 4.35 million people.

Jute industry has lot of potential of providing employment especially in East

Indian region. The industry offers employment opportunity to 7,500 persons per
year, besides more opportunity lie ahead in expansion of existing capacity in new
mills that are coming up in SSI and MSI.

Jute is an eco-friendly and biodegradable product. With the pressure from green
movement, it is going to sustain through consumer's preference.

WEAKNESS

Frequent revision of PJMA guidelines (to add or dilute items for jute packing)
leaves the industry in confusion whether to invest further on the Jute technology
development/product development/market expansion or wait for new policies etc.
55

Though jute industry is a labour intensive, wages represent 35% of total

conversion cost of jute industry, which evades the profit margins.

Multi unionism is one of the major problems faced by jute industry and engages
major concentration of routine management in resolving labour dispute.

The machinery used in jute industry is old and obsolete with age of machinery
ranging between 40 - 150 years. They have lost their capacity to produce quality
products and in spite of routine maintenance, fail to yield standard machine
production. In fact, the 150 years old industry with 75% obsolete machinery is
tagged as "Sunset industry" with "Vintage machinery". Though National Jute
Policy, 2005, aims at revamping the domestic jute industry through modernisation
& by upgrading technology, only a few mills could utilise the fund provided by
Jute Manufacturers and Development Council (JMDC) for modernising theirplant
and machinery plant partly. Thus JMDC had to return major part of the fund, ie,
Rs 80 crores after using less than Rs 10 crores. The Government has ear-marked
Rs 75 lakhs per year per mill for capital investment in modernisation but industry
feels it is inadequate for an average mill and wants it to be raised to Rs 2 crores.

Another weakness of jute industry is poor Research & Development (R&D)

initiation, invention/reverse engineering effort has been grossly neglected in this
sector. The reasons for this are lack of farsightedness & forward planning on the
part of government and industry.

Marketing has been another weak point of jute industry. It has been maintaining a
very slow pace in coming out of traditional way of marketing. Time has come for
the industry to think how to market this versatile, eco-friendly and natural fibre.
Government can only give initiation in product development and test marketing
but the follow-up rests on the industry.

Within the country, wage for workers varies from Rs 50 - Rs 250 per manday.
Government must take immediate steps in this concern and formulate need based
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wage structure for jute sector. While doing so, there should be productivity linked
payment. Payment by result is a universally accepted phenomenon and accepted
by ILO. Trade Unions in the jute sector agree on it but at plant level, same unions
resist, thereby causing labour productivity to be lower than standard.

Indian jute has not been able to build brand image for jute that goes with the
quality.

Opportunites:
In many areas Indian Jute industry is ahead of other jute producing and manufacturing
countries viz.
It has learned how to upgrade a lower grade fibre in the batch mix.
It also leads in diversified value added products.

The Government at the centre and at state has pro-jute mindset. They have plans
for taking jute industry to new horizon. This is evident from National Jute Policy
2005 which targets to reach export Rs 5,000 crores in the 11th fine year plan from
present amount of Rs 1,000 crores.

Brazil is one of the major importers of Indian Jute, and is estimated to have a
market of 25,000 tonnes of foodgrains, and few of Indian jute bag producers have
been awarded zero duty which opens new doors to other industry producers[12].

Industry should accomplish Total Quality Management so as to build quality in

the products.

One of the major threats faced by Indian jute industry/producers is from

Bangladesh Jute industry, which is armed with 7% cash subsidy on all items of
jute products without any string.

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Withdrawal of Export Subsidy Assistance (ESA) from 1 April, 2007 has been a
setback to the export of Indian Jute industry.

The Union Cabinet Committee for Economic Affairs (EA) has approved the
continuation of Technical Upgradation Fund Scheme (TUFS) for next 5 year plan
2007 - 12 for Indian Textile industry including jute industry. The size of
investment is projected at Rs 1,506 crores for this period but it is understood that
jute sector may not get its due share from TUFS money, particularly for jute
machinery modernisation and for upgrading technology.

The Department of Food and Public Distribution (DFPD) has issued orders for
packaging paddy and coarse grains in used gunny bags which is a violation of
Jute Packaging Material Act, 1987, which is considered as threat by jute industry.

As the synthetic lobby is gaining power there is a pressure on government to

dilute jute reservation norms from existing 70% to 30% for grains and from 75%
to 25% for sugar. Though the government has not made the revision yet, this
pressure on government is a threat to jute industry.

Recent government decision to withdraw 10% import duty on jute and jute
products to nil with effect from January 1, 2008, is seen as a threat by the
industry..

The competitive environment that international business face is, to a certain

extent, a function of technological environment and the degree of technological
innovations attributed to the competitive environment. With markets and
competition going global, firms and nations are trying to understand the
implications for their competitive strategies. Indian Jute industry .

Jute is a golden fibre. Being a natural, bio-degradable and eco-friendly fibre, jute
can

be

blended

with

other

compatible

fibres

for

providing

better

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physicalchemical, thermal, comfort and other important properties required for

other applications.

The inherent negative surface characteristics of jute fibres like itching problem,
comfort characteristics, etc, can be modified through bio-technology and
scientific techniques.

Till today, jute fibre is being considered as a cheap fibre, and its uses are only
restricted to the jute granny bags, low-quality house-hold articles. It is the
requirement of the whole world for producing value added products out of jute
material.

The application area of jute need to be enlarged, ie, jute should be used in new
areas like agro-textile, geo-textile, technical textile as well as home textile.

Marketing and promotion of jute has been a major problem, and so the
government and industry should come forward and take adequate steps in this
direction like highlighting its eco-friendly and biodegradable characteristics.

Labour problem is one of the major problems faced by the jute industry. For its
solution government and industry should device a tri-party agreement between
government, mill owners and the trade unions, so as to overcome loss of work by
strikes, lockouts, law off, closure of mill, etc.

Jute Research Association such as JTRL, IJIRA, Institute of Jute Technology

should come forward for better utilisation of resources like jute raw material,
manpower and machinery and equipment for the betterment of jute industry.

The future of jute lies in its scope of work. A detailed research by government
organisations like JRTL, IJIRA and Institute of Jute Technology, Research
Scholars and students in the following areas like Survey on Raw Material, Survey
on Fibre and Survey on Marketing need to be undertaken. Research on
cultivation and marketing of jute, jutefibre, jute promotion and jute blended
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products is required to be done, not merely to enhance the sphere of jute but also
to give the industry a new zone to expand.

The Indian jute industry is having lots of opportunity by its side; It is not only
one of the oldest industries of India but also among the major employer of the
nation. There are a lot of strengths and also much opportunity to grab them but it
could only be done if it overcomes its weaknesses and threats. Jute, the golden
fibre, has a potential of reaching the height where it used to be in the past, but it
is only possible through constant efforts by government and a proper follow-up
by the industry. After all, converting your threats into your opportunities is the
success mantra for the millennium.

CHAPTER-5
CONCLUSION,

FINDINGS,

BIBLIOGRAPHY

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CONCLUSION ON JUTE INDUSTRY ANALYSIS

BASED ON THE ABOVE REPORT,THE FOLLOWING CONCLUSION IS
DRAWN :

Human Resource in jute industry is mainly increased by manpower strength

is increased in 2009 as compared to 2008.

Production of Jute Goods is increased in jute industry.

Turnover of jute industry is increased to 6,500 corers as compared to

previous year of 5,500.

Total demand and total supply of jute goods are also so increased.

Export growth of jute Products

Labor Wages are increased in the jute industry due to good profits.

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Market strategies have created new opportunities for new entrepreneurs to

enter into the jute industry.

Net profit is also increased.

Current period of jute industry is in increasing order and profits are also
increased.

Yield on investments and funds are improved.

Net interest income increased in 2009.

Business growth of jute industry is increased.

THE FINANCIAL POSITION OF JUTE INDUSTRY GROWTH IS

INCREASING YEAR TO YEAR.NET PROFIT IS INCREASED

FINDINGS

At present the supply chain management is poor and it is making its

impact to improve in future.

At present production cost of jute industry is high; cost of production

should be decreased.

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As the jute products are eco-friendly to the nature and, these

products does not harm to the environment. So, these products have
good demand in current period and future.

BIBILOGRAPHY

WWW.JUTE-INDUSTRY.COM/

WWW.GOOGLE.COM

WWW.JUTE-INDUSTRY.COM/JUTE-INDUSTRY-INDIA/JUTE-TRADEASSOCIATIONS.HTML.

WWW.JUTE.COM/HTML/OTHER_ORG.HTM.

WWW.WORLDJUTE.COM/JUTE_NEWS/NEWS_ INDUSTRY_01.HTML.

WWW.JUTE-INDUSTRY.COM/JUTE-INDUSTRY-INDIA.

WWW.ARTICLESBASE.COM/BUSINESS.../JUTE-INDUSTRY-IN-FAVOUR-OFDIVERSIFICATION-1492985.HTML

- UNITED STATES - CACHED.

EN.WIKIPEDIA.ORG/WIKI/JUTE

WWW.JUTE.COM/HTML/CITIZENS%20CHARTER

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