“MARKETING MIX ASPECTS”

A study with reference to

THE RAMCO CEMENTS LTD,
VIJAYAWADA

A project report submitted in partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

PRABHU JANARDHAN ASOPA

(Regd no: 117200202199)

Under the esteemed guidance of

Prof. M. VENKATESHWARLU, M.B.A., Ph.D.

DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

ANDHRA UNIVERSITY

VISAKHAPATNAM

2017-2019
 CERTIFICATE

I hereby certify that the project work entitled A Study on

“MARKETING MIX ASPECTS” with respect to M/s VARUNA
APPARELS & EXPORTS, VISAKHAPATNAM is a bonafide work done by
Mr. PRABHU JANARDHAN ASOPA , student of 2017-2019,
Regd.No.117200202199,submitted in the partial fulfillment for the award of
Master of Business Administration under my guidance.

Place: VISAKHAPATNAM Prof. M. Sarada Devi, M.B.A., Ph.D.

Date: (Professor)
 DECLARATION

I hereby declare that the project entitled “A Study on MARKETING MIX

ASPECTS” with reference to RAMCO CEMENTS, VIJAYAWADA is an
original report submitted for the award of degree of “MASTER OF BUSINESS
ADMINISTRATION”. This is a work carried out by me under the guidance of
Prof. M. SARADA DEVI, DEPARTMENT OF COMMERCE AND
MANAGEMENT STUDIES, ANDHRA UNIVERSITY, Visakhapatnam.

I also declared that this report has not been previously formed the basis for any
award to any candidate of any degree, diploma associate ship, fellowship or
similar title in this university or in any other university.

Place: VISAKHAPATNAM BHARATH RAJU.P

Date: (REGD. NO 117200202170)

2017-2019
 ACKNOWLEDGEMENT

I would take this opportunity to express my sincere thanks to one and all who
forwarded their co-operation for completing the project successfully.

First I would like to thank Mr. G.SATYANARAYANA, professor & head of

the department of commerce and management studies, Andhra University,
Visakhapatnam, for granting me permission for doing this project.

I also thank to M SARADA DEVI, professor, department of commerce and

management studies, Andhra University, Visakhapatnam, for giving me this
suggestion and encouraging me in the entire period of my course, completion of
my project. I am grateful to external project guide Mr.P.VISHNU, Marketing
Manager, MM department, RAMCO. Last but not least, I would like to express
my sincere thanks to all my other faculty members and friends who encouraged
me in completing this project successfully.

BHARATH RAJU PINNAMARAJU

REGD. NO 117200202170

2017-2019
 INDEX
Ser Title Page No
1 PREFACE i
2 ACKNOWLEDGEMENT ii
3 COMPANY PROFILE 1
4 ORGANIZATION STRUCTURE 2
5 FACTORY LAYOUT 3
6 ABOUT THE COMPANY 4
7 MAJOR OVERSEAS CUSTOMERS 6
8 FLOW DIAGRAM OF WORKING IN AN EXPORT HOUSE 7
9 PRODUCT DEVELOPMENT DEPARTMENT 8
10 MERCHANDISING DEPARTMENT 12
11 SAMPLING DEPARTMENT 19
12 FABRIC SOURCING DEPARTMENT 22
13 FABRIC STORE 25
14 FLOW FOR ORDER PROCESSING 27
15 FABRIC INSPECTION 28
16 TESTING LAB 30
17 ACCESSORIES STORE 37
18 RESEARCH & DEVELOPMENT DEPARTMENT 40
19 MACHINE MAINTAINANCE DEPARTMENT 44
20 CAD DEPARTMENT 47
21 WORK FLOW OF SPREADING & CUTTING 51
22 SPREADING DEPARTMENT 52
23 CUTTING DEPARTMENT 54
24 TICKETING, FUSING, CHECKING & BUNDLING 56
25 PRODUCTION, PLANNING & CONTROL DEPARTMENT 58
26 SEWING DEPARTMENT 60
27 WASHING DEPARTMENT 62
28 FINISHING DEPARTMENT 64
29 PACKAGING DEPARTMENT 66
30 DETAILS OF STYLE STUDIED DURING INTERNSHIP 68
PREFACE:-
This report is an account of hard work done and experience gained in the company having a
reputed stand in the international market and policy of keeping itself updated with the
changing times. This hard work is original in style and method & no pains have been spared
too make it as compact, perfect and reliable as possible. The report mainly deals in the
application of theoretical knowledge into a practical experience.
This report attempts to present our experience in M/s VARUNA APPARELS & EXPORTS.
India’s premier export house. It gave us an opportunity to be a part of an esteemed
organization and get the first hand knowledge of working of various departments under
various heads.
It covers the basic structure of an export house and working. It also includes various formats
that are used in firms to maintain the records. Overall, this report covers the individual
study of each department that a garment undergoes.
As such, this report is not sufficient to pen down what we have gained from this in plant
training. So, it should not be compared with the experience that is learned by working in an
expert house.
COMPANY PROFILE
COMPANY NAME M/s VARUNA APPARELS & EXPORTS
ADDRESS PLOT NO 44B, APPAREL EXPORT
PARK, AUTONAGAR,
VISAKHAPATNAM -12
TELEPHONE +891-2540627
E-mail varunavsp@gmail.com
Year Est. 2011
Market Defence Organisations & Exports
CEO Mrs. NEELAM
ANNUAL 20 CRORES
TURNOVER
MAN POWER 125
MONTHLY 25000 PCS
PRODUCTION
ABOUT THE COMPANY

With a strong hold on varied market segments across the world VARUNA
APPARELS & EXPORTS are recognized as a reputed garment manufacturing
company. Incepted in the year 2011, they have acquired immense design
expertise that helps us in meeting the diverse requirements of their clientele.

They are manufacturers, exporters and suppliers of exclusively for Defence

Organisations & Exports of Cotton Vests

They have state-of-the art facilities comprising in-house computer embroidery

facility, washing facilities and a sophisticated array of machinery.

These facilities assist us in producing a quality assured range of garments for

their valued clients.

Ever since its inception, Varuna Apparels has never looked back. Growing with

Strength as well as value it has achieved the production capacity of 25000 PCS.
Garments per Month.
Factory Layout :-
FLOORS DEPARTMENTS

BASEMENT Stitching

a. Fabric Store
b. Trim Store
GROUND
c. Cutting Department
d. Human Resource

a. office

1ST b. Showroom

c. Director office

d. Merchandising

e. Stitching

f. Sampling

g. Quality

h. IT & Accounts

2ND Finishing &Packing

3RD Washing
 Work flow
BUYER

PRODUCT DEVELOPER

MERCHANT

SAMPLING

FABRIC

TESTING

MARKER PLANNER

SPREADING

CUTTING

BUNDLING & TICKETING

RESEARCH AND DEVELOPMENT

PRODUCTION

WASHING

FINISHING & PRESSING

PACKING & FINISHING

PRODUCT DEVELOPMENT
In the context of garment export business normally product development is
handled by design department. But where there is no design team, merchants
are responsible for whole production development process. In export houses
sampling department is considered as product development department.
CLASSIFICATION:-

PRODUCT DEVELOPMENT

INTERNAL DESIGN EXTERNAL DESIGN

1. INTRODUCTION:

Clothing is the basic necessity for humans. Introduction of new fashion is attracting
consumers to go for readymade garments which offer designs in line with the latest trends.
A continuous improvement in literacy ratio and shift to urban areas also leads to change in
clothing preferences with more population opting for readymade garments.

2. PRODUCT & ITS APPLICATION:

Shirts and Trousers are two key components of men’s formal clothing. As more youth
complete their education and aspire for white collar jobs, they follow typical office goers’
pattern of readymade garments to avoid being singled out. As readymade garments are
designed by the professional fashion designers these are in sync with the current trends and
offer psychological satisfaction to the user.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Graduate in any discipline.

4. INDUSTRY OUTLOOK & TRENDS:

The trend for custom stitching of shirts, trousers etc. is on decline due to time and cost
involved. Also, the consumers are unable to imagine how a particular fabric would look or
feel once a garment is stitched out of it. Such issues have led to growing demand for ready
to wear shirts and trousers. The customers also get huge variety of fabric types, prints,
designs, patterns and styles in readymade garments. Therefore the demand for these
products is on the rise.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

Increasing population, constant migration of workforce to urban areas, general preference

for while collar jobs, increasing disposable income levels and aspiration to wear clothing
based on latest fashion trends is generating robust demand for men’s shirts and trousers.
There is also good demand in Europe and American markets and these countries buy huge
quantities from India, Pakistan, Bangladesh, Sri Lanka, Vietnam, Thailand, Indonesia,
Malaysia and several African countries.
6. RAW MATERIAL REQUIREMENTS:

Main raw material required for shirts and trousers is the fabric. Both, cotton and blended
fabric is used in the products depending on customer choice and the budget. Cotton fabrics
of superior quality are expensive compared to synthetic or blended fabrics. Raw material is
available in almost all towns of India either directly from the fabric manufacturers or
wholesalers. Many mills have their agents or brokers who book orders from traders and
garment factories on regular basis. Apart from fabric, other inputs are thread, buttons,
labels, zippers, pocket & lining fabric (for trousers) and interlining (used in shirt collar, cuffs
and trouser belt). Wholesalers of these materials are found in every large city although New
Delhi, Mumbai, Ludhiana, Coimbatore and few other cities have several dealers and
importers of these consumables.

7. MANUFACTURING PROCESS:

Fabric received from the mill is inspected on the inspection machine and defects marked
with adhesive flags on the edge of the fabric. The fabric is then spread on long table
(usually 4 to 8 meters long) to form layers. Separately, patterns of card board or metal
sheet are prepared for each piece of a garment. These patterns are laid on layers of fabric
in such a way that wastage is minimized and fabric’s desired warp and weft construction as
well as design or pattern is achieved in critical parts of the garment. Care is also taken to
eliminate parts of fabric having major defects. Several layers of fabric are cut simultaneously
through a vertical motorized blade and pieces of garments obtained. Stitching of garments is
done in assembly line mode wherein each worker stitches only some parts of the garment
and unfinished garment moves forward from table to table in the assembly line. Therefore
cut pieces from cutting table are distributed to the respective workers and then the garment
assembly starts from 1st worker and reaches the last stage where it gets fully stitched. The
garment is cleaned by removing loose threads and dirt with blower, steam pressed and
packed. Garments are manufactured in sets of different sizes, colors and design/patterns as
per customer requirements.
8. MANPOWER REQUIREMENT:

The enterprise needs 50 employees to start with, as detailed below:

Sr.No. Designation of Employees Monthly Number of Annual cost

Salary ₹ employees required ₹. in lacs

Variable Labour / Workers:

1 Machine operators 12,000 30 43.20

2 Production Helpers 8,000 8 7.20

sub-total 38 50.40

Fixed Staff Costs:

1 Factory Manager 35,000 1 4.20

2 Packing Staff 8,000 4 3.84

3 Purchase Executive 20,000 1 2.40

4 Marketing Executive 20,000 1 2.40

5 Accounts Executive 20,000 1 2.40

6 Commercial Assistant 12,000 1 1.44

7 Security Guard & Peons 10,000 2 2.40

8 Driver 12,000 1 1.44

sub-total 12 20.52

Total 50 70.92
9. IMPLEMENTATION SCHEDULE:

Selection and procurement of machines takes 2 to 3 months. Recruitment of manpower also

takes about 2 months. Reasonable planning can help complete the project in about 4
months.

Sr. No. Activity Time Required (in months)

1 Acquisition of premises 2

2 Construction (if applicable) -

3 Procurement & installation of Plant & Machinery 3

4 Arrangement of Finance 2

5 Recruitment of required manpower 2

Total time required (some activities shall run

4
concurrently)

10. COST OF PROJECT:

The project is expected to cost ₹ 61.68 lacs as detailed below:

Sr. No. Particulars ₹ in Lacs

1 Land -

2 Building -

3 Plant & Machinery 29.00

4 Furniture, Electrical Installations 4.75

5 Other Assets including Preliminary / Pre-operative expenses 10.00

6 Margin for Working Capital 17.93

Total 61.68
11. MEANS OF FINANCE:

Bank term loans are assumed @ 60% of fixed assets. The proposed funding pattern is as
under:

Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution 35.43

2 Bank Finance 26.25

Total 61.68

12. WORKING CAPITAL CALCULATION:

The project requires working capital of ₹ 35.10 lacs as detailed below:

Sr. No. Particulars Gross Amt. Margin % Margin Amt. Bank Finance

1 Inventories 18.98 40% 7.59 11.39

2 Receivables 19.13 40% 7.65 11.48

3 Overheads 6.49 100% 6.49 -

4 Creditors -9.49 40% -3.80 -5.69

Total 35.10 17.93 17.17

13. LIST OF MACHINERY REQUIRED:

Sr. No. Particulars UOM Qty. Rate (₹) Value (₹ in Lacs)

Plan & Machinery / equipments

a) Main Machinery

Single needle machines +

i. Nos 20 75,000 15.00
Accessories

ii. Fabric Cutting table + Machine LS 1 1,00,000 1.00

iii. Over lock machines No 2 75,000 1.50

Double Needle machine +

iv. Nos 2 75,000 1.50
Accessories

v Zig Zag stitching machine Nos 2 75,000 1.50

vi. Button hole & stitching machines Set 1 2,50,000 2.50

vii Washing machine - commercial Nos 2 1,00,000 2.00

b) Ancillary machinery

i. Lab Equipments LS 1 2,00,000 2.00

ii. Steam Iron, Blower etc. LS 1 1,00,000 1.00

iii. Trolleys & material handling LS 1 1,00,000 1.00

sub-total Plant & Machinery 29.00

Furniture / Electrical
installations

a) Computer and printer Set 2 50,000 1.00

Sr. No. Particulars UOM Qty. Rate (₹) Value (₹ in Lacs)

b) Office Tables, Chairs LS 1 1,00,000 1.00

c) Inspection, packing & storing tables Nos 3 25,000 0.75

 d) Storage Racks Nos. 25 8,000 2.00

sub total -

Other Assets 4.75

a) Rent Deposits 2 1,25,000 2.50

b) Delivery Van Nos 1 7,50,000 7.50

sub-total Other Assets 10.00

Total 43.75

Single Needle and Double Needle stitching machines are available from following suppliers.
They have offices across several cities in India. There may also be other local machinery
manufacturers offering alternate machines of various makes and models.

 IIGM Private Limited

Springdale No. 51,
Residency Road, 3rd cross,
Bangalore 560025
www.iigm.in

 Juki India Private Ltd

1090/I, Ground Floor,
18th Cross, Sector III,
HSR Layout,
Bangalore 560102
www.jukiindia.com

 Brother International (India) Pvt Ltd

Unit No.408, 215, Atrium B-Wing,
4th floor, Opp. Sangam Cinema,
Andheri Kurla Road, Andheri (East),
Mumbai 400093
www.brother.in
14. PROFITABILITY CALCULATIONS:

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity utilization % 60% 70% 80% 90% 100%

2 Sales ₹ in Lacs 221.40 258.30 295.20 332.10 369.00

Raw Materials & Other

3 ₹ in Lacs 187.28 218.50 249.71 280.92 312.14
direct inputs

4 Gross Margin ₹ in Lacs 34.12 39.80 45.49 51.18 56.86

5 Overheads except interest ₹ in Lacs 38.93 38.93 38.93 38.93 38.93

6 Interest ₹ in Lacs 5.12 5.12 5.12 5.12 5.12

7 Depreciation ₹ in Lacs 6.06 6.06 6.06 6.06 6.06

8 Net Profit before tax ₹ in Lacs -16.00 -10.31 -4.62 1.06 6.75

The above calculations are based on assumed unit sales price varying from ₹ 425 to
₹ 600 for various products. The key raw material is assumed at a cost range of ₹ 125
to ₹ 225 per meter. Electricity tariff is assumed at ₹ 8 per KwH.

15. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 76.28% of projected capacity as detailed
below:

Sr. No. Particulars UOM Value

1 Sales Realization ₹. In Lacs 369.00

2 Variable costs ₹. In Lacs 311.66

3 Fixed costs incl. interest ₹. In Lacs 44.05

4 BEP = FC/SR-VC x 100 = % of sales 76.82%

16. STATUTORY / GOVERNMENTAPPROVALS:

The project does not require any specific government approval. Registration with
MSME is optional. An Entrepreneur may be required to obtain Shops & Establishment
 Registration and Professional Tax registration by local Municipal authorities.
Registration under Factories Act, Provident Fund Act and ESI provisions would be
required depending upon the number of employees, the location, the level of
mechanization and the age of the enterprise. Entrepreneur may contact State
Pollution Control Board where ever it is applicable.

17. BACKWARD OR FORWARD INTEGRATION:

As the machines used in the project are versatile, the Entrepreneur can also consider
manufacture of home furnishing articles like bed sheets, pillow covers, wall hangings
etc. depending on opportunities in the market he / she is familiar with.
Disclaimer:

Only few machine manufacturers are mentioned in the profile, although many
machine manufacturers are available in the market. The addresses given for
machinery manufacturers have been taken from reliable sources, to the best of
knowledge and contacts. However, no responsibility is admitted, in case any
inadvertent error or incorrectness is noticed therein. Further the same have been
given by way of information only and do not carry any recommendation.