1.

INDUSTRY PROFILE
Silk is the most elegant textile in the world with unparalleled grandeur, natural
sheen, and inherent affinity for dyes, high absorbance, light weight, soft touch and
high durability and known as the “Queen of Textiles” the world over. On the other
hand, it stands for livelihood opportunity for millions owing to high employment
oriented, low capital intensive and remunerative nature of its production. The very
nature of this industry with its rural based on-farm and off-farm activities and
enormous employment generation potential has attracted the attention of the
planners and policy makers to recognize the industry among one of the most
appropriate avenues for socio-economic development of a largely agrarian
economy like India. The silk industry has a distinctive position in India, that plays
a significant role in textile industry and export. India is the 2nd largest producer of
silk in the world with 23060 metric tonnes (MT) (2011-12) and also the largest
consumer of silk in the world and contributes 15 per cent of the total world raw
silk production. Geographically, Asia is the main producer of silk in the world and
manufactures over 95 per cent of the total global output. Although there are over
40 countries on the world map of that produce silk, bulk of it is produced in China
and India, followed by Japan, Brazil and Korea. China is the leading supplier of
silk to the world with an annual production of 1,24,000 MT (2011-12), out of
which the Mulberry raw silk production is 90,980 MT. India produces a varieties
of silks such as Mulberry, Tasar, Muga and Eri, based production of raw silk,
which is the yarn obtained from cocoons spun by certain species of insects. In
India, mulberry silk is produced mainly in the states of Karnataka, Andhra
Pradesh, Tamil Nadu, Jammu & Kashmir and West Bengal, while the non-
mulberry silks are produced in Jharkhand, Chattisgarh, Orissa and north-eastern
states.

India is well known for its textile goods from very ancient times. The traditional
textile industry of India was virtually decayed during the colonial regime.
However, the modern textile industry took its birth in India in the early nineteenth
century when the first textile mill in the country was established at Fort Gloster
near Calcutta in 1818. The cotton textile industry made its real beginning in
Bombay, in 1850s. The first cotton textile mill of Bombay was established in

1
1854. From its inception, the industry passed through vicissitude of fortune till it
reached its present status. As the industry grew up, the yarn trade with China
fetched it good profit. The Indian market was not favourable initiallt, because of
competition with Lancashire goods, but the natural advantages of humid climate,
raw materials and an external market helped the growth of the industry
considerably. During the later part of the last century, Japan became a rival to
India in yarn trade with China and the Far Eastern Asia. During the First World
War (1914-1918), Japan obtained better opportunities for marketing her yarn in
China (Roy, 1996).1 India was dependent considerably on the United Kingdom
for the supply of machinery, caustic soda, bleaching powder, etc., for her cotton
mills. The home market was not favourable to the industry because of competition
with Lancashire fabrics which poured into India in large quantities. Production of
yarn was more profitable than the production of cloth, since yarn could be
marketed outside. Railway freight charges in India for transporting coal to the
cotton mills were high as the coal had to be obtained from the Damodar Valley,
the only important coal producing area in the country. It was, therefore, more
profitable to import coal from South Africa by sea route for the cotton mills in
India. This situation continued till water power was developed in Bombay and
other areas in the early part of the 20th century.2 The two world wars and the
Swadeshi movement provided great stimulus to the Indian cotton textile industry.
However, during the period 1922 to 1937 the industry was in doldrums and during
this period a number of Bombay mills changed hands. The Second World War,
during which textile import from Japan completely stopped, however, brought
about an unprecedented growth in this industry. The number of mills increased
from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in
1921 and further to 396 mills with over 20 lakh looms in 1941. Thus by 1945,
there were 417 mills employing 5.10 lakh workers (Sastry, 1984).

After independence, the cotton textile industry made rapid strides under the Plans.
Between 1951 and 1982, the total number of spindles doubled from 11 million to
22 million. It increased further to over 47 million by 2011-12. The Indian textile
sector plays an exceptionally significant role in shaping the economy of India
notably in terms of employment, foreign exchange earnings and share in value
added. This sector is the second largest sector after agriculture. It has come of age

2
and is gaining acknowledgment on the world platform with excellent textiles
manufacturing base and availability of massive raw material. India being the
second largest producer of cotton in the world, makes it self sufficient, by
providing a competitive edge to its competitors worldwide in terms of cost of raw
materials. Along with abundant cotton production, India has the availability of
highly skilled labour at very low prices .

Silk is a lustrous, tough, elastic fibre produced by the larvae of silkworms; the
term also covers the thread or cloth made from this fibre. The silk industry
originated in China, as early as 2640 BC according to tradition. Towards the 3rd
century AD, knowledge of the silkworm and its product reached Japan through
Korea; it probably spread to India a little later. India is the largest consumer of silk
in the world. Silk is a unique fabric which has gradually crept in everybody's
home in some way or the other. The Indian silk industry is an integral part of the
Indian textile industry and is among the oldest industries in India. It engages
around 60 lakh workers and it involves small and marginal farmers. Mulberry,
Tasar, Muga and Eri are the types of silk produced in the Indian silk industry.
Indian silk industry is the second highest contribution of silk to the world
production. Consistent market demand and remarkable approach has led to the
widening of this industry (Bhushi and Pharsiyawar, 2004).9 Silk is mainly
produced in Pochampally, Kanchipuram, Dharmavaram, Mysore, etc., in South
India and Banaras in the North for manufacturing garments and sarees.
"Murshidabad silk", famous from historical times, is mainly produced in Malda
and Murshidabad districts of West Bengal and woven with hand looms in
Birbhum and Murshidabad districts. Another place famous for production of silk
is Bhagalpur. The silk from Pochampally is particularly well known for its classic
designs and enduring quality. The silk is traditionally hand-woven and hand-dyed
and also usually has silver threads woven into the cloth. ESIL is one of the largest
high – end fabric manufactures in the World. Facilities at ESIL’s factory and
design center are constantly upgraded as new technology is developed, to keep it
on the cutting edge of industry. A wealth of technical and designing expertise
accumulated over the years is put to work in developing new designs/blends

3
1.1 MICRO SCENARIO

Eastern Silk Industries Ltd. engages in the manufacture and sale of silk yarn and
fabrics in India. The company offers fabrics and made-ups, home furnishings,
fashion fabrics, handloom fabrics, double width fabrics, scarves, laces and belts,
and embroidered fabrics. Eastern Silk Industries exports its products to the United
States, Canada, European Union, the United Kingdom, Japan, Australia, and New
Zealand, as well as Scandinavian and EFFTA countries. Eastern Silk Industries
Ltd. was founded in 1946 and is based in Kolkata.

1.2 MACRO SCENARIO

ESIL is one of the largest high – end fabric manufactures in the World. Facilities
at ESIL’s factory and design center are constantly upgraded as new technology is
developed, to keep it on the cutting edge of industry. A wealth of technical and
designing expertise accumulated over the years is put to work in developing new
designs/blends.

The engineers, technicians and Supervisors in the production units are

experienced and well qualified. The production is done round the clock. The
whole production units are humidity and temperature controlled. The highly
automated production facilities and through control systems are both highly
efficient and environmentally friendly.

The company has been recognized as a Golden Star Export House by the
Government of India. Sales are mainly from export markets. US and Europe
account for about two – third of the company’s exports. Other export destinations
comprise Australia, Middle East, Canada, Japan, New Zealand and Scandinavian
& EFFTA countries. Its equity shares are traded on the Bombay Stock Exchange
and National Stock Exchange.

4
 2 PROFILE OF THE ORGANIZATION
Eastern Silk Industries Ltd. was incorporated in the year -1946. Its today's share
price is 1.58. Its current market capitalisation stands at Rs 11.92 Cr. In the latest
quarter, company has reported Gross Sales of Rs. 514.93 Cr and Total Income of
Rs.520.38 Cr. The company's management includes Deepak Agarwal, G D
Harnathka, Megha Shah, Sundeep Shah. It is listed on the BSE with a BSE Code
of 590022 , NSE with an NSE Symbol of EASTSILK and ISIN of
INE962C01027. It's Registered office is at 19, R. N. Mukherjee Road, ,Kolkata-
700001, West Bengal. Their Registrars are ACC Ltd. It's auditors are BK Shroff &
Co, Suresh Kumar Mittal & Co

2.1 NAME OF THE COMPANY AND HISTORY

Eastern Silk Industries Ltd, a Kolkata based company is the leading exporter of
silk fabrics. The company is present across the entire value chain from silk yarn to
basic fabrics to designed fabrics to embroidered fabrics to made-ups. They
manufacture silk yarns of various counts (20's to 240's) and fabrics in a variety of
weaves, textures and surface-effects. The company's operations include
manufacturing of silk yarn; fabrics and made-ups; home furnishings; fashion
fabrics; handloom fabrics; double width fabrics; scarves, laces and belts, and
embroidered fabrics. They offer products in two groups: furnishing fabrics and
fashion accessories. The furnishing fabrics include plain, embroidery, patch,
weaves, embossing, jacquards, dobbies and emboss. The fashion accessories
include fashion fabrics, readymade furnishings and scarves. The company is
headquartered in Kolkata. They export their products to United Kingdom, United
States, Japan, EFFTA countries, Canada, European Union, New Zealand,
Australia, and Scandinavia. The Government of India recognized the company as
a Golden Star Trading House. Eastern Silk Industries Ltd was incorporated in the
year 1946 with the name Eastern Silk Manufacturing Company Ltd. The company
was thereafter converted into a private limited company with the name Eastern
Silk Manufacturing Company Pvt Ltd on June 12, 1956. They were again
converted into a public limited company and the name was changed to Eastern
Silk Manufacturing Company Ltd on July 26, 1975. In August 12, 1975, the
company changed their name to Eastern Silk Industries Ltd. During the year 1990-

5
91, Eastern Enterprises Ltd became a wholly owned subsidiary of the company.
They also diversified into export of leather goods. In November 1992, the
company came out with the public issue at a premium of Rs 10, aggregating Rs
4.02 crore, to part-finance the expansion of processing facilities and the
upgradation of the looms. During the year 1995-96, the company's overseas
subsidiary, Mayur International Corporation, New York was liquidated and the
entire capital was transferred to the company. During the year 1996-97, they set
up a modern weaving mill and a process house at Gurgaon in Haryana. During the
year 1998-99, the company completed the expansion of the Noida unit by
increasing the capacity from 40.5 lakh meters to 60 lakh meters per annum. They
set up a 100% Export Oriented Unit for the manufacture of dyed and printed silk,
cotton and synthetic fabrics and made-ups at Falta Export Processing Zone in
West Bengal. In addition, they set up a private bonded warehouse in the Export
Processing zone for trading including re-export. During the year, the company
sold their holding of 1,500,000 equity shares of Rs 10 each in Eastern Enterprises
Ltd. As a result, Eastern Enterprises Ltd ceased to be a subsidiary company. In
addition, the company changed their name from Eastern Silk Industries Ltd to ESI
Ltd with effect from November 25, 1998. During the year 2001-02, the company
further changed their name from ESI Ltd to Eastern Silk Industries Ltd with effect
from June 3, 2002. In February 2004, the company commenced commercial
production at their plant at Anekal in Bangalore. The required machineries
imported as well as indigenous were installed and commissioned successfully.
During the year 2004-05, Eastern Jingying Ltd and Sstella Silks Ltd merged with
the company. The company received the ISO 9001: 2000 quality accreditation for
their Unit 2 at Anekal and the yarn manufacturing Unit 3 at Nanjangud. They
commissioned best-in-practice testing facility at an investment of Rs 50 lakh.
During the year, the company introduced embroidered fabric, large width fabrics
and the commercialization of 25 new designs. They entered into four new
geographies and the addition of 25 new clients. The company increased three lakh
meters in installed capacity through the replacement of eight power looms with
auto and introduced four jacquard machines. During the year 2005-06, the
company launched a new product line, namely 'Rustle' in the segment of home
furnishing. In June 2005, they set up on a temporary basis a wholly owned
subsidiary in Singapore in the name of Trade International (S) Pte Ltd to

6
undertake trading activities in fast moving consumer items. However, the said
company was disposed of during the next financial year. During the year 2006-07,
the company completed the expansion of the fabric capacity at the Anekal plant.
In addition, they set up a plant at Bommasundra in Hosur Road for the
manufacture of made-ups. During the year, P K Textiles Ltd, Ethics Commercials
Ltd and Lucky Goldstar Co Ltd became the subsidiaries of the company. During
the year 2007-08, the company expanded the production capacity of Silk
Weaving/ Embrodiery from 13.90 lakh meters to 18.40 lakh meters per annum. In
addition, P K Textiles Ltd, Ethics Commercials Ltd and Lucky Goldstar Co Ltd
ceased to be the subsidiaries of the company. The company is undertaken an
expansion project at Anekal in Bangalore for the manufacture of velvet fabrics at
an estimated capital outlay of Rs 80 crore. The commercial production is expected
to start during the financial year 2009-10. astern Silk Industries Ltd, a Kolkata
based company is the leading exporter of silk fabrics. The company is present
across the entire value chain from silk yarn to basic fabrics to designed fabrics to
embroidered fabrics to made-ups. They manufacture silk yarns of various counts
(20's to 240's) and fabrics in a variety of weaves, textures and surface-effects. The
company's operations include manufacturing of silk yarn; fabrics and made-ups;
home furnishings; fashion fabrics; handloom fabrics; double width fabrics;
scarves, laces and belts, and embroidered fabrics. They offer products in two
groups: furnishing fabrics and fashion accessories. The furnishing fabrics include
plain, embroidery, patch, weaves, embossing, jacquards, dobbies and emboss. The
fashion accessories include fashion fabrics, readymade furnishings and scarves.
The company is headquartered in Kolkata. They export their products to United
Kingdom, United States, Japan, EFFTA countries, Canada, European Union, New
Zealand, Australia, and Scandinavia. The Government of India recognized the
company as a Golden Star Trading House. Eastern Silk Industries Ltd was
incorporated in the year 1946 with the name Eastern Silk Manufacturing
Company Ltd. The company was thereafter converted into a private limited
company with the name Eastern Silk Manufacturing Company Pvt Ltd on June 12,
1956. They were again converted into a public limited company and the name was
changed to Eastern Silk Manufacturing Company Ltd on July 26, 1975. In August
12, 1975, the company changed their name to Eastern Silk Industries Ltd. During
the year 1990-91, Eastern Enterprises Ltd became a wholly owned subsidiary of

7
the company. They also diversified into export of leather goods. In November
1992, the company came out with the public issue at a premium of Rs 10,
aggregating Rs 4.02 crore, to part-finance the expansion of processing facilities
and the upgradation of the looms. During the year 1995-96, the company's
overseas subsidiary, Mayur International Corporation, New York was liquidated
and the entire capital was transferred to the company. During the year 1996-97,
they set up a modern weaving mill and a process house at Gurgaon in Haryana.
During the year 1998-99, the company completed the expansion of the Noida unit
by increasing the capacity from 40.5 lakh meters to 60 lakh meters per annum.
They set up a 100% Export Oriented Unit for the manufacture of dyed and printed
silk, cotton and synthetic fabrics and made-ups at Falta Export Processing Zone in
West Bengal. In addition, they set up a private bonded warehouse in the Export
Processing zone for trading including re-export. During the year, the company
sold their holding of 1,500,000 equity shares of Rs 10 each in Eastern Enterprises
Ltd. As a result, Eastern Enterprises Ltd ceased to be a subsidiary company. In
addition, the company changed their name from Eastern Silk Industries Ltd to ESI
Ltd with effect from November 25, 1998. During the year 2001-02, the company
further changed their name from ESI Ltd to Eastern Silk Industries Ltd with effect
from June 3, 2002. In February 2004, the company commenced commercial
production at their plant at Anekal in Bangalore. The required machineries
imported as well as indigenous were installed and commissioned successfully.
During the year 2004-05, Eastern Jingying Ltd and Sstella Silks Ltd merged with
the company. The company received the ISO 9001: 2000 quality accreditation for
their Unit 2 at Anekal and the yarn manufacturing Unit 3 at Nanjangud. They
commissioned best-in-practice testing facility at an investment of Rs 50 lakh.
During the year, the company introduced embroidered fabric, large width fabrics
and the commercialization of 25 new designs. They entered into four new
geographies and the addition of 25 new clients. The company increased three lakh
meters in installed capacity through the replacement of eight power looms with
auto and introduced four jacquard machines. During the year 2005-06, the
company launched a new product line, namely 'Rustle' in the segment of home
furnishing. In June 2005, they set up on a temporary basis a wholly owned
subsidiary in Singapore in the name of Trade International (S) Pte Ltd to
undertake trading activities in fast moving consumer items. However, the said

8
company was disposed of during the next financial year. During the year 2006-07,
the company completed the expansion of the fabric capacity at the Anekal plant.
In addition, they set up a plant at Bommasundra in Hosur Road for the
manufacture of made-ups. During the year, P K Textiles Ltd, Ethics Commercials
Ltd and Lucky Goldstar Co Ltd became the subsidiaries of the company. During
the year 2007-08, the company expanded the production capacity of Silk
Weaving/ Embrodiery from 13.90 lakh meters to 18.40 lakh meters per annum. In
addition, P K Textiles Ltd, Ethics Commercials Ltd and Lucky Goldstar Co Ltd
ceased to be the subsidiaries of the company. The company is undertaken an
expansion project at Anekal in Bangalore for the manufacture of velvet fabrics at
an estimated capital outlay of Rs 80 crore. The commercial production is expected
to start during the financial year 2009-10. astern Silk Industries Ltd, a Kolkata
based company is the leading exporter of silk fabrics. The company is present
across the entire value chain from silk yarn to basic fabrics to designed fabrics to
embroidered fabrics to made-ups. They manufacture silk yarns of various counts
(20's to 240's) and fabrics in a variety of weaves, textures and surface-effects. The
company's operations include manufacturing of silk yarn; fabrics and made-ups;
home furnishings; fashion fabrics; handloom fabrics; double width fabrics;
scarves, laces and belts, and embroidered fabrics. They offer products in two
groups: furnishing fabrics and fashion accessories. The furnishing fabrics include
plain, embroidery, patch, weaves, embossing, jacquards, dobbies and emboss. The
fashion accessories include fashion fabrics, readymade furnishings and scarves.
The company is headquartered in Kolkata. They export their products to United
Kingdom, United States, Japan, EFFTA countries, Canada, European Union, New
Zealand, Australia, and Scandinavia. The Government of India recognized the
company as a Golden Star Trading House. Eastern Silk Industries Ltd was
incorporated in the year 1946 with the name Eastern Silk Manufacturing
Company Ltd. The company was thereafter converted into a private limited
company with the name Eastern Silk Manufacturing Company Pvt Ltd on June 12,
1956. They were again converted into a public limited company and the name was
changed to Eastern Silk Manufacturing Company Ltd on July 26, 1975. In August
12, 1975, the company changed their name to Eastern Silk Industries Ltd. During
the year 1990-91, Eastern Enterprises Ltd became a wholly owned subsidiary of
the company. They also diversified into export of leather goods. In November

9
1992, the company came out with the public issue at a premium of Rs 10,
aggregating Rs 4.02 crore, to part-finance the expansion of processing facilities
and the upgradation of the looms. During the year 1995-96, the company's
overseas subsidiary, Mayur International Corporation, New York was liquidated
and the entire capital was transferred to the company. During the year 1996-97,
they set up a modern weaving mill and a process house at Gurgaon in Haryana.
During the year 1998-99, the company completed the expansion of the Noida unit
by increasing the capacity from 40.5 lakh meters to 60 lakh meters per annum.
They set up a 100% Export Oriented Unit for the manufacture of dyed and printed
silk, cotton and synthetic fabrics and made-ups at Falta Export Processing Zone in
West Bengal. In addition, they set up a private bonded warehouse in the Export
Processing zone for trading including re-export. During the year, the company
sold their holding of 1,500,000 equity shares of Rs 10 each in Eastern Enterprises
Ltd. As a result, Eastern Enterprises Ltd ceased to be a subsidiary company. In
addition, the company changed their name from Eastern Silk Industries Ltd to ESI
Ltd with effect from November 25, 1998. During the year 2001-02, the company
further changed their name from ESI Ltd to Eastern Silk Industries Ltd with effect
from June 3, 2002. In February 2004, the company commenced commercial
production at their plant at Anekal in Bangalore. The required machineries
imported as well as indigenous were installed and commissioned successfully.
During the year 2004-05, Eastern Jingying Ltd and Sstella Silks Ltd merged with
the company. The company received the ISO 9001: 2000 quality accreditation for
their Unit 2 at Anekal and the yarn manufacturing Unit 3 at Nanjangud. They
commissioned best-in-practice testing facility at an investment of Rs 50 lakh.
During the year, the company introduced embroidered fabric, large width fabrics
and the commercialization of 25 new designs. They entered into four new
geographies and the addition of 25 new clients. The company increased three lakh
meters in installed capacity through the replacement of eight power looms with
auto and introduced four jacquard machines. During the year 2005-06, the
company launched a new product line, namely 'Rustle' in the segment of home
furnishing. In June 2005, they set up on a temporary basis a wholly owned
subsidiary in Singapore in the name of Trade International (S) Pte Ltd to
undertake trading activities in fast moving consumer items. However, the said
company was disposed of during the next financial year. During the year 2006-07,

10
the company completed the expansion of the fabric capacity at the Anekal plant.
In addition, they set up a plant at Bommasundra in Hosur Road for the
manufacture of made-ups. During the year, P K Textiles Ltd, Ethics Commercials
Ltd and Lucky Goldstar Co Ltd became the subsidiaries of the company. During
the year 2007-08, the company expanded the production capacity of Silk
Weaving/ Embrodiery from 13.90 lakh meters to 18.40 lakh meters per annum. In
addition, P K Textiles Ltd, Ethics Commercials Ltd and Lucky Goldstar Co Ltd
ceased to be the subsidiaries of the company. The company is undertaken an
expansion project at Anekal in Bangalore for the manufacture of velvet fabrics at
an estimated capital outlay of Rs 80 crore. The commercial production is expected
to start during the financial year 2009-10. astern Silk Industries Ltd, a Kolkata
based company is the leading exporter of silk fabrics. The company is present
across the entire value chain from silk yarn to basic fabrics to designed fabrics to
embroidered fabrics to made-ups. They manufacture silk yarns of various counts
(20's to 240's) and fabrics in a variety of weaves, textures and surface-effects. The
company's operations include manufacturing of silk yarn; fabrics and made-ups;
home furnishings; fashion fabrics; handloom fabrics; double width fabrics;
scarves, laces and belts, and embroidered fabrics. They offer products in two
groups: furnishing fabrics and fashion accessories. The furnishing fabrics include
plain, embroidery, patch, weaves, embossing, jacquards, dobbies and emboss. The
fashion accessories include fashion fabrics, readymade furnishings and scarves.
The company is headquartered in Kolkata. They export their products to United
Kingdom, United States, Japan, EFFTA countries, Canada, European Union, New
Zealand, Australia, and Scandinavia. The Government of India recognized the
company as a Golden Star Trading House. Eastern Silk Industries Ltd was
incorporated in the year 1946 with the name Eastern Silk Manufacturing
Company Ltd. The company was thereafter converted into a private limited
company with the name Eastern Silk Manufacturing Company Pvt Ltd on June 12,
1956. They were again converted into a public limited company and the name was
changed to Eastern Silk Manufacturing Company Ltd on July 26, 1975. In August
12, 1975, the company changed their name to Eastern Silk Industries Ltd. During
the year 1990-91, Eastern Enterprises Ltd became a wholly owned subsidiary of
the company. They also diversified into export of leather goods. In November
1992, the company came out with the public issue at a premium of Rs 10,

11
aggregating Rs 4.02 crore, to part-finance the expansion of processing facilities
and the upgradation of the looms. During the year 1995-96, the company's
overseas subsidiary, Mayur International Corporation, New York was liquidated
and the entire capital was transferred to the company. During the year 1996-97,
they set up a modern weaving mill and a process house at Gurgaon in Haryana.
During the year 1998-99, the company completed the expansion of the Noida unit
by increasing the capacity from 40.5 lakh meters to 60 lakh meters per annum.
They set up a 100% Export Oriented Unit for the manufacture of dyed and printed
silk, cotton and synthetic fabrics and made-ups at Falta Export Processing Zone in
West Bengal. In addition, they set up a private bonded warehouse in the Export
Processing zone for trading including re-export. During the year, the company
sold their holding of 1,500,000 equity shares of Rs 10 each in Eastern Enterprises
Ltd. As a result, Eastern Enterprises Ltd ceased to be a subsidiary company. In
addition, the company changed their name from Eastern Silk Industries Ltd to ESI
Ltd with effect from November 25, 1998. During the year 2001-02, the company
further changed their name from ESI Ltd to Eastern Silk Industries Ltd with effect
from June 3, 2002. In February 2004, the company commenced commercial
production at their plant at Anekal in Bangalore. The required machineries
imported as well as indigenous were installed and commissioned successfully.
During the year 2004-05, Eastern Jingying Ltd and Sstella Silks Ltd merged with
the company. The company received the ISO 9001: 2000 quality accreditation for
their Unit 2 at Anekal and the yarn manufacturing Unit 3 at Nanjangud. They
commissioned best-in-practice testing facility at an investment of Rs 50 lakh.
During the year, the company introduced embroidered fabric, large width fabrics
and the commercialization of 25 new designs. They entered into four new
geographies and the addition of 25 new clients. The company increased three lakh
meters in installed capacity through the replacement of eight power looms with
auto and introduced four jacquard machines. During the year 2005-06, the
company launched a new product line, namely 'Rustle' in the segment of home
furnishing. In June 2005, they set up on a temporary basis a wholly owned
subsidiary in Singapore in the name of Trade International (S) Pte Ltd to
undertake trading activities in fast moving consumer items. However, the said
company was disposed of during the next financial year. During the year 2006-07,
the company completed the expansion of the fabric capacity at the Anekal plant.

12
In addition, they set up a plant at Bommasundra in Hosur Road for the
manufacture of made-ups. During the year, P K Textiles Ltd, Ethics Commercials
Ltd and Lucky Goldstar Co Ltd became the subsidiaries of the company. During
the year 2007-08, the company expanded the production capacity of Silk
Weaving/ Embrodiery from 13.90 lakh meters to 18.40 lakh meters per annum. In
addition, P K Textiles Ltd, Ethics Commercials Ltd and Lucky Goldstar Co Ltd
ceased to be the subsidiaries of the company. The company is undertaken an
expansion project at Anekal in Bangalore for the manufacture of velvet fabrics at
an estimated capital outlay of Rs 80 crore. The commercial production is expected
to start during the financial year 2009-10.

2.2 NATURE OF BUISNESS

ESIL a Kolkata based company incorporated in April 9, 1946 before

Independence and it got its current name in 1975. The chairman is Mr. Shyam
Sunder Shah. The company is engaged in various multifaceted activities like
manufacture of silk yarn, fabrics and made ups, home furnishings, fashion fabrics,
double width fabric, scarves, laces, melts and embroidered fabrics.The company
has been recognized as a Golden Star Export House by the Government of India.
Sales are mainly from export markets. US and Europe account for about two –
third of the company’s exports. Other export destinations comprise Australia,
Middle East, Canada, Japan, New Zealand and Scandinavian & EFFTA countries.
Its equity shares are traded on the Bombay Stock Exchange and National Stock
Exchange.

ESIL is one of the largest high – end fabric manufactures in the World. Facilities
at ESIL’s factory and design center are constantly upgraded as new technology is
developed, to keep it on the cutting edge of industry. A wealth of technical and
designing expertise accumulated over the years is put to work in developing new
designs/blends.The engineers, technicians and Supervisors in the production units
are experienced and well qualified. The production is done round the clock. The
whole production units are humidity and temperature controlled. The highly
automated production facilities and through control systems are both highly
efficient and environmentally friendly.

13
The company has been recognized as a Golden Star Export House by the
Government of India. Sales are mainly from export markets. US and Europe
account for about two – third of the company’s exports. Other export destinations
comprise Australia, Middle East, Canada, Japan, New Zealand and Scandinavian
& EFFTA countries. Its equity shares are traded on the Bombay Stock Exchange
and National Stock Exchange.

2.3 AREA OF OPERATION

Eastern Silk Industries Ltd, a Kolkata based company is the leading exporter of
silk fabrics. The company is present across the entire value chain from silk yarn
to basic fabrics to designed fabrics to embroidered fabrics to made-ups. They
manufacture silk yarns of various counts (20s to 240s) and fabrics in a variety
of weaves, textures and surface-effects.The companys operations include
manufacturing of silk yarn; fabrics and made-ups; home furnishings; fashion
fabrics; handloom fabrics; double width fabrics; scarves, laces and belts, and
embroidered fabrics. They offer products in two groups: furnishing fabrics and
fashion accessories. The furnishing fabrics include plain, embroidery, patch,
weaves, embossing, jacquards, dobbies and emboss. The fashion accessories
include fashion fabrics, readymade furnishings and scarves.The company is
headquartered in Kolkata. They export their products to United Kingdom,
United States, Japan, EFFTA countries, Canada, European Union, New
Zealand, Australia, and ScandinaviaThe company is presently engaged in the
manufacture and export of silk fabric and made-ups like scarves, garments etc.
with an installed capacity for the production of 40.5 lac metre per annum of fabric
and 150 m. tones p.a. dyed yarn.

ESIL is recipient of outstanding export performance award in the year 1993-94

from Government of India, Ministry of Commerce and certificate of meritorious
performance in the export of natural silk goods during 1990-91, 1992-93 and
1993-94 from the Indian Silk Export Promotion Council (sponsored by the
Government of India).

ESIL is involved in an integrated production facility of silk products starting from

reeling of yarn from cocoons to finished silk. ESIL procures the cocoons from the
southern part of India and Madhya Pradesh. The yarn is reeled on a contract basis

14
 by the various units in different villages in the cottage industry sector. The reeled
yarn is sent either directly in to company's process house at Noida for dyeing or
given to Eastern Enterprises Ltd. (EEL), a wholly owned subsidiary of ESIL.
Around 50% to 60% of the yarn requirement is imported mainly from China,
Brazil and CIS countries. After the weaving of the fabric, ESIL processes and
finishes the fabric at its process house at Noida. The made-ups like scarves etc. are
mainly manufactured in Naraina in New Delhi.Learning from the past, ensuring
healthy present and enhancing prospects for the future is a constant cycle followed
by all organizations with global ambition. Eastern Silk shall keep reinventing
itself as a competitive, innovative and well – respected organization. Be it our
customers or business associates, employees or consumers, we shall add value to
their endeavors through our association. Silk for us not only our business, but a
means to stimulate human creativity and contribute to well being of thousands of
families associated with us. We shall continue to excel with silk

2.4 MISSION AND VISION

2.4.1 MISSION

 Promotion & development of sericulture & silk industry which is a priority

industry because of its being an environment friendly, an effective socioeconomic
tool for employment generation in rural areas.
 Infrastructural and technical support for production of saplings of silkworm food
plant and its plantation and silkworm seed.
 Promotion of appropriate & latest technology of sapling raising & plantation of
silkworm food plants, silkworm seed, silkworm rearing, silk spinning and silk
reeling.
 Facilitate marketing of sericulture produces at the optimum market price.

2.4.2 VISION

 To provide necessary framework for advancing goals and prioritizing Strategies

for the development of sericulture & silk industry to become a major silk
producing country.

15
 2.5 PRODUCTS AND SERVICES

Eastern Silk Industries Limited is engaged in textile business. The Company is

engaged in the manufacture of silk yarn, fabrics and made-ups, home furnishings,
fashion fabrics, handloom fabrics, double width fabrics, scarves, laces and belts,
and embroidered fabrics. The Company's furnishing fabrics comprises plain,
embroidery, patch, weaves and embossing. It’s others furnishing categories
include Jacquard and Dobbies. It offers various fashion accessories, which include
fashion fabrics, readymade furnishings, scarves, cushion covers, curtains and kids
furnishings. It offers a selection of silk fabrics, cotton print fabrics, quilt fabric,
upholstery fabric, drapery fabric for all of types of craft and sewing projects. Its
cushion covers collection is characterized by designs on printed cotton, polyester,
denims and silk. The Company's curtains collection include contemporary designs
on cotton, cotton flex, polyester, poly organza, cotton satin, burnout, organdi, poly
taffta and linen.

2.5.1 PRODUCTS

Historically, clothing is, and has been, made from many materials. These
materials range from grasses to furs, to much more elaborate and exotic materials.
Some cultures, such as the various people of the Arctic Circle, have made their
clothing entirely of prepared and decorated furs and skins. Other cultures have
supplemented and replaced leather and skins with cloth. Cloth is either woven or
knitted, and can be made from a large variety of fibers, which in turn can
be natural, cellulose, or synthetic

2.5.1.1 FURNISHINGS
Eastern fabrics offer Velvet and Recron which are widely offered to various
sectors. We supply these furnishing in various patterns such as abstracts, classical,
damask, floral, geometrical, and natural and stripes and checks. We suggest you
the best type of furnishing that give unique appearance to the room.

Features

 Mattresses

16
 Curtains
 Carpets
 Pillows
 Cushions
 Upholstery

As we believe that furnishings are the ideal choice that gives a neat look to any
interior, we are committed in offering high range of exclusive furnishings. Our
range of customized furnishings is uniquely manufactured keeping in mind our
customers' specifications.

 ABEILIE

WIDTH: 135 cm

COMPOSITION: Cotton Viscose

WT / LINEAR MTR
0.860
:

PRODUCT : Jacquard

17
  ADAMS

WIDTH: 135 cm

COMPOSITION: Poly Linen Lurex

WT / LINEAR MTR 0.295

PRODUCT : Jacquard

 CARRERA

18
WIDTH: 135 cm

COMPOSITION: Polyester Viscose Linen

WT / LINEAR MTR
0.325
:

PRODUCT : Jacquard

 EBY-1721

EBY-1721

WIDTH: 135 cm

COMPOSITION: Linen Cotton Polyester

WT / LINEAR MTR 0.58

PRODUCT : Jacquard

19
  EBY-1726

WIDTH: 135 cm

COMPOSITION: Cotton Linen

WT / LINEAR MTR 0.66

PRODUCT : Machine Embroidery

 LIANA

20
WIDTH: 135 cm

COMPOSITION: Cotton Viscose Acrylic

WT / LINEAR MTR
0.57
:

PRODUCT : Jacquard

 PALETTE

WIDTH: 135 cm

COMPOSITION: Cotton Viscose

WT / LINEAR MTR
0.765
:

PRODUCT : Jacquard

21
  STARGAZER

WIDTH: 135 cm

COMPOSITION: Cotton Viscose Polyester

WT / LINEAR
MTR : 0.525

2.5.1.2 FASHION FABRICS

The fabulous thing about fabric is that it's widely accessible in many different
colours, patterns and designs, but have you considered what material will be best
suited to the project you'd like to undertake? Cotton seems to be the most common
material used in stitchcraft - but what else can you expect to find? Here, we take a
look at the different materials you could base your sewing projects on, describing
their qualities

22
 Varun 1251

 Varun-1252

 Varun-1253

23
 Varun-1605

 Varun-1641

24
 Varun-1670

 Varun-1675

25
 Varun-1678

 Varun-1681

26
  Varun-1706

2.5 COMPETITORS PROFILE

Competitor means any person or entity which is a rival against another. In
business a company in the same industry or a similar industry which offers a
similar product or service. The presence of one or more competitors can reduce
the prices of goods and services as the companies attempt to gain a larger market
share. Competition also requires companies to become more efficient in order to
reduce costs

27
2.5.1 JJ EXPORTERS
JJ EXPORTERS Is one of the leading manufacturers and exporters of silk fabrics,
both traditional and modern. We are in service of this trade for more than 47
years. During this period the company has won several awards, including the
prestigious ‘presidential golden trophy’ in recognition of its excellent export
performance.

In the year 1996, under name and style of j.j.spectrum silk, JJ EXPORTS put up a
state of the art unit equipped with the latest machines of highest quality European
make for different processes including Dornier rapier looms for production of top
quality silk fabrics to compete with the best in the industry. This is a completely
vertical operation with yarn twisting, dyeing, designing and weaving. The plant is
equipped with sophisticated humidification and effluent treatment facility to meet
environmental requirement.

This unit was expanded in 2006 to double the weaving capacity and to weave
fabric Upton 320cm width. JJ EXPORTS merchandise has been well appreciated
and accepted by many renowned names connected with the industry world over.
Backed by over 47 years of experience, we understand the requirements of the
customers and are well equipped to meet them.We have subsidiaries in New York,
Moscow and Verviers (Belgium) to promote the sales of our fabrics.

In the year 2008, JJ EXPORTS opened our first retail outlet in Kolkata under the
name and style of “onset” where we display and sell home accessories like
cushion covers, bedcovers, napkin rings, home furnishing fabrics for curtains and
upholstery. This is located in company owned building in Hindustan Park,
Kolkata.

Apart from the manufacturing facility at Bhagalpur our main manufacturing

facility is situated approximately 28 km from Kolkata on diamond harbour road,
the factory is situated on the main road and the total area is approx. 500,000 sq.ft
of which the constructed area is approx. 200,000 sq.ft.

JJ EXPORTS export during the year 2012-13 was approximately rs 45.00 crores
and the present strength of workers and employees is approximately 550.

28
2.5.2 BONAZA INDUSTRIES
Bonanza Industries Limited is a public limited company incorporated on 20th
April 1981. We are listed on BSE Limited having Scrip Code: 523133. Bonanza
Industries Limited are engaged in a diversified business activities such as trading
in fancy cloths, Travel & leisure industry and more to come. Bonanza Industries
Limited has only one aim that is excellence. We are there 24*7 to cater our

esteemed clients and meet their requirements.

The Company is engaged in the business of manufacturing, processing, dealing ,

exporting, importing of various types of printing, stationery and packaging items,
products, goods things, matters accessiories materials, and whether the same are
made, derived, processed, prepared or otherwise from any papers, card boards,
sheets, rolls reams or others and/ or from plastic, aluminium, strips, acrelics fibres,
PVC or other such and similar or supplementary or substitutes, for any use /uses
in India or abroad and import and export business in the cialis said products,
goods, items along with related, incidental connected services, jobs consultancy,
technologies, managements, agents activities thereof or otherwise.

To do business finance leasing hire purchase factors, securitization, financial and

various other negotiable instrument on any field of capital market, money and
finance market, investment market, property and development market and other
in any industrial, governmental and enterprise and consumer fields and in any
other fields by any other method.

2.5.3 BRANDHOUSE RETAILS LIMITED

Incorporated in 2004,Brandhouse Retails Limited is an India-based fashion

retailer. Reid & Taylor is Company's brand offering in the premium suiting and
garment segment. Stephens Brothers (SB) is Company's brand offering in the
Super-Premium brand segment. Belmonte is Company's brand offering in the mid
premium segment that offers fabrics as well as garments retailed by the Company
through a pan-India network. Belmonte offers fabric, suiting and ready to wear
clothing. Carmichael House is the brand that offers premium and mid-premium

29
home textiles of S.Kumars Nationwide Limited. Dunhill is the offering by the
Company in men's luxury brand segment. The Company has one subsidiary,
Brandhouse Oviesse Limited, which is a Joint Venture Company of the Company
and Oviesse S.p.A., Italy.

2.5 MARKET SHARE

Eastern Silk Industries Ltd., incorporated in the year 1946, is a Small Cap
company (having a market cap of Rs 11.92 Crore) operating in Textiles sector.
Eastern Silk Industries Ltd. key Products/Revenue Segments include Textiles
which contributed Rs 48.04 Crore to Sales Value (93.28 % of Total Sales), Sale of
services which contributed Rs 1.85 Crore to Sales Value (3.58 % of Total Sales)
and Other Operating Revenue which contributed Rs 1.61 Crore to Sales Value
(3.12 % of Total Sales)for the year ending 31-Mar-2018.
For the quarter ended 31-03-2019, the company has reported a Standalone sales of
Rs 23.06 Crore, up 42.52 % from last quarter Sales of Rs 16.18 Crore and up
68.41 % from last year same quarter Sales of Rs 13.69 Crore Company has
reported net profit after tax of Rs -2.29 Crore in latest quarter.
The company’s top management includes Mr.G D Harnathka, Mr.Madhu Kant
Sharma, Mr.Pankaj Kumar Deorah, Mr.Sundeep Shah, Ms.Megha Shah. Company
has Suresh Kumar Mittal & Co. as its auditoRs As on 31-03-2019, the company
has a total of 78,952,620 shares outstanding.

2.6 AWARDS AND ACHIVEMENTS

ESIL has been recognized as a `Trading House' in accordance with the provisions
of the import Policy by the Government of India, Ministry of Commerce, Office
of the Chief Controller of Imports & Exports. The validity of the certificate is
from 1st April, 1993 to 31st March, 1996.

The benefits of recognised trading house are as follows:

a) entitlement of Special Import Licence (SIL) for 5% on FOB value of exports

realised in the preceding licensing year. 1% extra SIL is permitted to exporters of

30
handloom, and handicraft products including silk products provided the export of
these products is more than 50% of their total export.

b) Under the Zero-Duty EPCG scheme, the facility of exemption from execution
of bank guarantee and clearance of Capital Goods on execution of a Bond without
bank guarantee.

ESIL is recipient of outstanding export performance award in the year 1993-94

from Government of India, Ministry of Commerce and certificate of meritorious
performance in the export of natural silk goods during 1990-91, 1992-93 and
1993-94 from the Indian Silk Export Promotion Council (sponsored by the
Government of India).

ESIL is involved in an integrated production facility of silk products starting from

reeling of yarn from cocoons to finished silk. ESIL procures the cocoons from the
southern part of India and Madhya Pradesh. The yarn is reeled on a contract basis
by the various units in different villages in the cottage industry sector. The reeled
yarn is sent

2.7 CORPORATE SOCIAL RESPONSIBILITY

The Company has formulated the Corporate Social Responsibility Committee

(CSRC) in consultation with the Board during the year pursuant to introduction of
Section 135 under the Companies Act, 2013.Sri Sundeep Shah, Sri H. S. Gopalka
and Sri G.D Harnathka are the members of the CSRC. Since the Company has
been incurring cash losses in the last three preceding financial years, the Board
does not recommend any amount to be spent on the CSR activities. However the
Board ensures that once the Company will start earning profits, they shall after
taking into account the recommendations of the CSRC, approve the Corporate
Social Responsibility Policy of the Company and shall disclose contents of such
policy in its report and will also place the same on the Company''s website.

DISASTER RELIEF
Different national entities, corporate or otherwise, coming forward to help the
victims during a natural calamity is crucial to restore nation’s well-being in event
of a disaster. The continuous downpour that caused floods in the North Eastern
states in June 2017 resulted in many families losing their homes and lacking

31
access to basic hygiene facilities. Eastern silk extended help to the victims of these
floods by providing them with relief materials. 22,600 flood-affected people
spread across the states of Uttar Pradesh, West Bengal, Bihar and Assam, were the
direct beneficiaries of this initiative

ENVIRONMENT AND RURAL

Through its rural development initiatives undertaken in the states of Maharashtra,
Karnataka, Kerala and Tamil Nadu, Eastern silk has impacted the lives of more
than 5,000 villagers. These initiatives include provision of sanitation and lavatory
facilities, safe drinking water, and even compost machines. This year, rural
development was not just limited to the aforementioned causes. It also
encompassed the development of rural youth through training and workshops,
educating them about advanced techniques in agriculture, better livelihood
opportunities, and financial literacy

.Every year, the company does its bit to reduce its carbon footprint by planting
trees in different states. This year, Eastern silk planted 50,000 trees near
Himalayan monasteries, schools and forests in the North Eastern state of Sikkim.
The plantations not only aided in securing wildlife habitat and beautifying the
area, but also created around 4,093 workdays of jobs for the rural communities.

2.8 SWOT ANALYSIS

2.8.1 STRENGTHS

 Super quality of seed.

 The silk is produced 30-40% less than the demand of national &
international level.
 Eri silkworm is hardy and Nonviolence (Ahinsa) silk.
 Eri silk is poor person’s silk (cost of production is very less than other
silk).
 Eri silk is course, fine, dense, strong and durable than other silk. It is
suitable for Shawls, Jackets, and Blankets because of thermal properties

32
  Baby dresses are also made from Eri silk because of its soft texture and
moisture absorbent qualities.
 Seri silk worms are sturdier than other silk worms.
 Castor leaves are available throughout the year and these are not attracted
by cattle & wild animal.
 Children and old persons of rear’ s family can also participate in the
rearing process.
 Sericulture helps in enhancing economic status of rural rearers
 It is women’s friendly and ecofriendly occupation.
 There is practically no risk in the industry

2.8.2 WEAKNESS

 Unpredictable rainfall and reducing ground water level effects plantation.

 Climatic condition is another barrier of sericulture.
 There is resistance in rural masses to adopt new technologies for
sericulture.
 The rearers have small land holding for rearing.
 There is lake competitive marketing network.
 There is no proper organization for collecting Cocoon and Seed
distribution.
 Management of the Sericulture forms is poor

2.8.3 OPPORTUNITIES

 Sericulture sector includes active involvement of rural women.

 The demand for silk is growing in the national & international market day
by day because of its qualities.
 Due to awareness in education in rural areas, literate farmers are willing to
accept latest technological knowhow.
 It holds promise as an employment generating industry, especially in
rural and semi-urban areas.
 It gives an additional source of income to agriculture and rural population

33
2.8.4 THREATS

 More and more rural population is migrating from farming to urban areas.
 Other agriculture crops like wheat, grain etc are competitive crops.
 Eri silk has to face compete with the synthetic fiber because of its low
cost.
 Majority of farmers have low land holding capacity.
 The cost of the land is very high. 6. SWOT analysis is to develop work
plan for research that takes into consideration many different internal and
external factors and maximizes the potential of the strengths and
opportunities while seeking minimize the impact of the weaknesses and
threats.

34
 3. ORGANIZTAIONAL STRUCTURE
Eastern Silk Industries Limited (ESIL) is committed to follow the ethical and
lawful business conduct, as a shared value of business practice. Consistent with
this principle, The Board members of ESIL has adopted this Code of Conduct
(COC) as a guide to the ethical and legal standards expected from its Board
members.
The Code of Conduct (COC) has been laid down as values and commitments of
Board Members of ESIL. (The Company) to practice good Corporate Governance
in transparent and accountable manner. This COC is set of duties, obligations and
responsibilities of the Board Members of the Company to act in a manner
upholding the standards of Business Conducts and play vital role in governance
for creating greater values for stakeholders and social responsiveness. In every
situation all the Board Members are expected to use their discretion on a course of
action which would enhance the Company's image as a respected and responsible
organisation.

35
Name Designation

Deepak Agarwal Co. Secretary & Compl. Officer

Deepak Agarwal Secretary

G D Harnathka Executive Director

Madhu Kant Sharma Ind. Non-Executive Director

Megha Shah Executive Director

36
Pankaj Kumar Deorah Independent Director

Sundeep Shah CEO

Sundeep Shah Managing Director

U S Gutgutia Chief Financial Officer

The size of the market and their geographic distribution, income, habits and their
reaction to different selling methods are all related factors that influence the
Orinator Consumer/ Industrial User Agent Agent Agent Producer Industrial User
Agent Insudtrial Distributor Agent Industrial distributor Industrial products
Producer Consumer Retailer Wholesale Retailer Agent Retailer Agent Wholesale
Retailer Consumer products Services 14 channels approach. Together with
customer characteristics are the features of the product such as degree of
standardization perish ability, bulk, service requirement and price also are factors
that drive the channel type (Keegan & Green, 2008). Type of channel can be
direct from the producer – to – customer or elaborate, multilevel channels
employing many intermediaries such as opening their own sale offices, entering
into cooperative arrangements with other exporters, using a local distributor,
piggybacking. Selling direct from producer to customer usually via the internet,

37
mail order, different types of door-to-door selling, or manufacturer-owned retail
outlets is the first alternative in the channel. Internet exporting and the related
form of media are changing the dominant of distribution landscape, successful
cases using internet channel can be listed as EBay and Amazon. Door-to-door
selling using direct sale forces are popular in mid 1990s, which is quite effective
for low cost, mass-market nondurable products and certain services such as
cosmetics (Avon, Amway) or insurances. Manufacturer-owned store or
independent franchise store, company opened a worldwide chain of company-
owned and company – operated to sell their products or services.

38
 4 KEY FUNCTIONAL AREAS
Part of a business’ growth is the deployment of separate departments which
functions with specific focus and definitive path. They are structured according to
certain business requirements and these departments will vary depending on the
type of business being practiced. Knowing the different functional areas of a
business is a basic but major necessity for an entrepreneur especially when he’s
still in the planning stage.

One of the reasons for separating business operations into functional areas is to
allow each to operate within its area of expertise, thus building efficiency and
effectiveness across the business as a whole. The key functional areas of SBI life
insurance are the following:

 Management
 Operations
 Marketing
 Accounting
 Finance
 HR

4.1 HUMAN RESOURCE

Human resource is the most important asset in the business. The heart of an
organization lies on its people. Without people, the day-to-day operation of a
business would cease to function. The success of a business relies fully on the
hands of the employees working in the company. In order to achieve the
company’s goals and objectives, the company’s Human Resource Department is
responsible in recruiting the right people with the required skills, qualifications
and experience. They’re responsible for determining the salary and wages of
different job positions in the company. They’re also involved in training
employees for their development

HR of Eastern silk does following activities

 Selecting suitable candidates for interview process and hiring

39
  Coordinating with management and employees
 Keeping track of maintenance and service department
 Looking into employee benefits
 Developing of both employees and organization
 Developing new ideas and techniques
 Overall guidance for each departments

4.2 MARKETING

Marketing strategy consists of the analysis, strategy development, and

implementation activities in: “Developing a vision about the market(s) of interest
to the organization, selecting market target strategies, setting objectives, and
developing, implementing, and managing the marketing program positioning
strategies designed to meet the value requirements of the customers in each
market target”. Strategic marketing is a market-driven process of strategy
development, taking into account a constantly changing business environment and
the need to deliver superior customer value. The focus of strategic marketing is on
organizational performance rather than a primary concern about increasing sales.
Marketing strategy seeks to deliver superior customer value by combining the
customer-influencing strategies of the business into a coordinated set of market-
driven actions.

Product marketing is a process of promoting and selling a product to a customer.

Also product marketing is defined as being the intermediary function between
product developments and increasing brand awareness. SBI life insurance choose
many methods for marketing.

 Word of mouth: For a new company has, a high share of its expenditure
goes into advertisements and promotions. Eastern silk followed a word-of-
mouth promotion strategy initially and did not spend much on promotions
and advertising.

 Advertisement: advertising strategy. A campaign developed by a business

to encourage potential customers to purchase a good or service.
An advertising strategy is generally tailored to a target audience perceived
to be most likely out of the population to purchase the product.

40
4.3 MANUFACTURING

Silk has set the standard in luxury fabrics for several millennia. The origins of silk
date back to Ancient China. Legend has it that a Chinese princess was sipping tea
in her garden when a cocoon fell into her cup, and the hot tea loosened the long
strand of silk. Ancient literature, however, attributes the popularization of silk to
the Chinese Empress Si-Ling, to around 2600 B.C. Called the Goddess of the
Silkworm, Si-Ling apparently raised silkworms and designed a loom for making
silk fabrics. The secret to silk production is the tiny creature known as the
silkworm, which is the caterpillar of the silk moth Bombyx mori. It feeds solely
on the leaves of mulberry trees. Only one other species of moth, the Antheraea
mylitta, also produces silk fiber. This is a wild creature, and its silk filament is
about three times heavier than that of the cultivated silkworm. Its coarser fiber is
called tussah.

The life cycle of the Bombyx mori begins with eggs laid by the adult moth. The
larvae emerge from the eggs and feed on mulberry leaves. In the larval stage, the
Bombyx is the caterpillar known as the silkworm. The silkworm spins a protective
cocoon around itself so it can safely transform into a chrysalis. In nature, the
chrysalis breaks through the cocoon and emerges as a moth. The moths mate and
the female lays 300 to 400 eggs. A few days after emerging from the cocoon, the
moths die and the life cycle continues.

41
4.5 SALES AND DISTRIBUTION

42
43
 5. FINDING SUGGESTIONS & CONCLUTION
5.1 FINDINGS

 India is well known for its textile goods from very ancient times
 Eastern Silk Industries Ltd. engages in the manufacture and sale of silk
yarn and fabrics in India.
 The company offers fabrics and made-ups, home furnishings, fashion
fabrics, handloom fabrics, double width fabrics, scarves, laces and belts,
and embroidered fabrics
 ESIL a Kolkata based company incorporated in April 9, 1946 before
Independence and it got its current name in 1975
 JJ Exports, bonaza industries and brand house retail ltd are the major
competitors of eastern silk.
 The Company has formulated the Corporate Social Responsibility
Committee (CSRC) in consultation with the Board during the year
pursuant to introduction of Section 135 under the Companies Act, 2013
 Eastern Silk Industries Limited (ESIL) is committed to follow the ethical
and lawful business conduct, as a shared value of business practice.
Consistent with this principle
 ESIL is recipient of outstanding export performance award in the year
1993-94 from Government of India

5.2 SUGGESTIONS

Following are suggestions made for the benefits and augmentation of the sound
working of the company –eastern silk.

 The company should develop more strategy to compete with customer

 Company must develop branches all over the India
 Company must sale products outside the India
 It is suggested that company should not left any stone unturned towards
sound advertisement and promotional measures on every section whether
it is printed, media or air via radio

44
  It is also suggested that skilled management graduates need to be places on
sales and marketing of financial services that can render their best ideas for
the accomplishment of the company goals and objectives to the best
extent.

5.3 CONCLUSION

Eastern Silk Industries Ltd, a Kolkata based company is the leading exporter
of silk fabrics. The company is present across the entire value chain from
silk yarn to basic fabrics to designed fabrics to embroidered fabrics to made-
ups. They manufacture silk yarns of various counts (20s to 240s) and fabrics
in a variety of weaves, textures and surface-effects. The company operations
include manufacturing of silk yarn; fabrics and made-ups; home furnishings;
fashion fabrics; handloom fabrics; double width fabrics; scarves, laces and
belts, and embroidered fabrics. They offer products in two groups:
furnishing fabrics and fashion accessories. The furnishing fabrics include
plain, embroidery, patch, weaves, embossing, jacquards, dobbies and
emboss. The fashion accessories include fashion fabrics, readymade
furnishings and scarves. The company is headquartered in Kolkata. They
export their products to United Kingdom, United States, Japan, EFFTA
countries, Canada, European Union, New Zealand, Australia, and
Scandinavia. Eastern Silk Industries Ltd was incorporated in the year 1946 with
the name Eastern Silk Manufacturing Company Ltd. The company was thereafter
converted into a private limited company with the name Eastern Silk
Manufacturing Company Pvt Ltd on June 12, 1956. They were again converted
into a public limited company and the name was changed to Eastern Silk
Manufacturing Company Ltd on July 26, 1975. In August 12, 1975, the company
changed their name to Eastern Silk Industries Ltd.

45
 6 BIBILOGRAPHY
 https://www.indiainfoline.com/company/eastern-silk-industries-
ltd/management-discussions/2794

 https://www.indiainfoline.com/company/eastern-silk-industries-
ltd/management-discussions/2794

 https://www.moneycontrol.com/india/stockpricequote/textiles-synthetic-
silk/easternsilkindustries/ESI06

 http://www.easternsilk.com/

 https://www.indiainfoline.com/company/eastern-silk-industries-
ltd/summary/2794

 https://in.reuters.com/finance/stocks/company-profile/ESIL.NS
 https://www.business-standard.com/company/esi-
2794/information/company-history
 https://www.indiainfoline.com/company/eastern-silk-industries-
ltd/summary/2794

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