PROJECT REPORT

birla cellulose

ON
A Comparative consumption and demand analysis of cotton, cotton-viscose, cotton-modal yarn in Kolkata Knitting Market

IN Ranchi

Submitted to: Mr. D.Das Choudhary Duration: 12th April 2011 to 12th June 2011

Submitted By: Rajib Rudra Pursuing PGDM (Marketing) From Xavier Institute of Social service, Ranchi

Rajib Rudra

Marketing, XISS Ranchi

Page 1

Rajib Rudra

Marketing, XISS Ranchi

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ACKOWLEDGEMENT
Before I get into the thick of the things I would like to add a few heartfelt words for the people who were part of this project in numerous ways people who gave unending support right from the stage the project was started, appreciated and encouraged when being depressed. In this context I would like to express my gratitude towards my parents and family members who have constantly supported and played a pivotal role in shaping my career. I take this opportunity to express my gratitude to Mr. Das. Choudhary who was my project guide all along throughout the journey of my project. This has been one long project and naturally many people get associated with it. Any bouquet for the merit in this book should go to their door. I owe my sincere gratitude towards my faculty guide Prof. Rohit Vishal Kumar of XISS, Ranchi for extending the support towards the completion of the project. And finally I would like to thank my friends for their unending support.

Rajib Rudra

Marketing, XISS Ranchi

Page 3

PREFACE
Practical training is considered to be an essential part of all the professional institutions and those who are aspiring for Post Graduate Diploma in Management, on job training assumes even more significances. As an aspect of management education which is receiving increased attention from institutes as well as from recruiters on job training is imparted to the students to acclimatize the student with the actual environment of business management. It is also a widely accepted theory that this aspect of management education widens ones thinking about the different concepts of management philosophy, difference between different concepts and ground realities. This project has been done in the field of marketing and project work has been done under the supervision of Mr. D. Das. Choudhary I have done my training in Kolkata. The report gives a true picture of the practical activities done by me within the jurisdiction of the area assigned to me.

Rajib Rudra

Marketing, XISS Ranchi

Page 4

Table of Contents
Company Profile............................................................................................................................................ 6 Project Synopsis: ........................................................................................................................................... 7 Research Analysis:......................................................................................................................................... 9 Average production per machine and per company .................................................................................. 10 Knitting machine manufacturing companies .............................................................................................. 12 Utilization .................................................................................................................................................... 13 Fabric Structure........................................................................................................................................... 14 Market Presence of different types of yarn................................................................................................ 15 Consumption of different yarns .................................................................................................................. 16 Prices of Yarn .............................................................................................................................................. 17 Commission payable ................................................................................................................................... 19 Application of Cotton yarn .......................................................................................................................... 20 Final Product type ....................................................................................................................................... 21 Season ......................................................................................................................................................... 22 Shrinkage..................................................................................................................................................... 23 Pilling Comparison ...................................................................................................................................... 24 Shade Solidity .............................................................................................................................................. 25 Grams Per Meter......................................................................................................................................... 26 Different dyeing charges: ............................................................................................................................ 27 Knitting Charges in Kolkata Market ............................................................................................................ 29 Wastage during conversion ........................................................................................................................ 30 Supply.......................................................................................................................................................... 31 Margin ......................................................................................................................................................... 32 Potential of CottonViscose from respondents point of view .................................................................. 33 Properties of Modal .................................................................................................................................... 34 Price of Modal ............................................................................................................................................. 35 Some Technicality regarding viscose and modal ........................................................................................ 36 Feedbacks and Suggestions from the Respondents: .................................................................................. 37 Recommendations and Strategies .............................................................................................................. 37

Rajib Rudra

Marketing, XISS Ranchi

Page 5

Company Profile
Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of cellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal, and Birla Excel. These brands offer a wide range of functional benefits such as soft feel, high moisture absorbency, bio degradability and comfort to the wearer. These fibres have multiple applications including apparel, home textiles, dress material, knitwear, non-woven etc. Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in 1954. Birla Cellulose is a world leader in viscose staple fibre (VSF). Its production is spread across six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The Group independently fulfills India's entire VSF requirements. With a strong focus on Research and Development (R&D), the Group's R&D initiatives span the entire value chain.

Grasim Forest Research Institute pulp to plantation research Birla Research Institute for Applied Sciences pulp to fibre research Textile Research & Application Development Centre (TRADC) value chain from fiber to garments / made ups

Rajib Rudra

Marketing, XISS Ranchi

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Project Synopsis:
Project Preamble:

In the present scenario, where the cotton prices highly volatile & are soaring to unprecedented levels, the cloth market is looking for better options, and stabilizing of prices. In this context a blend of Viscose- which is a nature based manmade fiber, with better comfort, better body friendly properties, and improved look and feel can be a viable option. It is proposed to conduct a market survey as well as campaign for promotion of the product, to collect the market feedback, to engineer the product development efforts in right direction to achieve success. Introduction: To identify the possibility of replacing 40s combed cotton with 40s C/V (65/35) & 60s combed cotton with 60s C/M (65/35) for Printed Ladies/ Kids top respectively. Research Objective: To find out preferences of the different wholesalers. To compare the different information collected from the market To analyze the data and to suggest a marketing strategy for the company.

Research Methodology: To plot the cotton and viscose price trends, and see the projections. To collect the comparative samples from TRADC for showcasing and giving to customer. Finally to identify and survey the various interested wholesalers/manufacturer of printed tops & Churidhar base in Kolkata, Prepare questionnaire detailing the price and USP and work out the potentiality to draw conclusion. Research will use cross sectional descriptive research design to conduct this project. The data collection will be interviewing (survey) and the tool used in the same will be a questionnaire. Research will use a systematic random sampling method to collect information from the respondents in different industries. Proposed sample size is around 100.

Rajib Rudra

Marketing, XISS Ranchi

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Research will ask the respondents questions as per the questionnaire. Only the completed filled question paper will be considered. The questionnaire will be closed type in nature and directly the respondents will be asked. The closed type questionnaire will help in data analysis.

Rajib Rudra

Marketing, XISS Ranchi

Page 8

Research Analysis:
To analyze the information collected from different respondents we used Microsoft Office Excel functions and chart analysis.

5.71% 17.14% 45.71% 11.43% Knitting machines 3--8 Knitting machines 9--15 Knitting machines 16--24 17.14% Knitting machines 25--40 Knitting machines above 40

Kbcjk C Fig.1.1. Distribution of Knitting machines in Kolkata Knitting market From this pie chart we can see the number of knitting machine holdings by entrepreneurs. 45.71% of the total samples are using 3 to 8 knitting machines. They are basically doing job work.70% among them have started their venture 2-3 years ago and now they are playing well in the market.So, we can say that the majority of production is not in large scale in Kolkata Knitting market. It may seem that the production capacity is low but, this capacity can maintain a balance between the situations when the production orders are high as well as when it is very low (recession type situation). Secondly, in this type of enterprise labor consumption is very less (2 labor per 4 machine) so the chances of Trade Union related problem may be avoided which can hamper the rate of production. 17.14% of respondents are having 9 to 15 and 25 to 40 knitting machines which show that their production capacity are high and 65% of them are having their own garmenting unit. So, whenever they are not doing job work they are having the option of enhancing their garmenting capacity.
Rajib Rudra Marketing, XISS Ranchi Page 9

Only 5.71% of the respondents are using knitting machines above 40. They are the old and giant players in the market and their machines are versatile in nature. The capacity of production is very high while utilization is a bit lesser than the small enterprises.

Average production per machine and per company

Average Production Per Machine

378

Average Production Per Company

6529

1000

2000

3000

4000

5000

6000

7000

Fig.1.2. Average production per machine and per company Average production per day machine of the total sample combined is around 378 kilograms and average production per company is around 6.5 tons.

Rajib Rudra

Marketing, XISS Ranchi

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Average Diameter of Machine

34

Average Machine Per Company

17

10

15

20

25

30

35

40

Fig.1.3.Average diameter of machine and average machine per company On an average there are 17 machines used in every company with an average diameter of 33. If we concentrate upon the mode of knitting machine number then we will find that maximum of the respondents are having 5-6 machines.

Rajib Rudra

Marketing, XISS Ranchi

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Knitting machine manufacturing companies

50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.71% 5.00 0.00 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 8.57% 28.57% 25.71% 37.14% 48.57%

Fig.1.4.Knitting machine manufacturing companies In Kolkata respondents are using 16 different types of companies knitting machineries. Among them it is found that Unitex users are about 48.57% . German terrot users are about 37.14%. Then comes Myer & Cye with 28.57% . It is significant that 25.71% of the respondents are using TSM ludhiana make Indian machines which has low diameter and their production capacity is also low. But their price is comparatively less. So, the entrepreneurs who want to start a new venture for them it might be a less risky strategy to purchase this type of machinery where the initial investment will be low. Well knit and Air china are having market penetration of 8.57% and 5.71% respectively. Rests of the companies are not present significantly in the market.

Rajib Rudra

Marketing, XISS Ranchi

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Utilization
60.00 50.00 40.00 30.00 20.00 10.00 0.00 60%--70% 70%--80% 80%--90% 90%--100% 5.71% 8.57% 11.43%

51.43%

Fig.1.5. Utilization of Imported machines

33.33% 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 60%--70% 70%--80% 80%--90% 11.11% 22.22%

33.33%

90%--100%

Fig.1.6. Utilization of India made machines

Comparing the above two figures 1.5 and 1.6 we can say that 51.43% of the respondents using imported machines are getting 90%-100% machine utilization where as in case of India Made TSM Ludhiana machines this figure is 33.33% In case of India Made machines 33.33% users are getting 80%-90% utilization which is
Rajib Rudra Marketing, XISS Ranchi Page 13

significant enough in comparison with their price.

Fabric Structure
pique loop knit honey comb french terry 2/2 rib 1/1 rib jacqured lycra sinker lycra rib reversible rib interlock sinker 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 5.71% 5.71% 5.71% 5.71% 8.57% 5.71% 11.43% 8.57% 14.29% 22.86% 54.29% 80.00% 80.00% 80.00

Fig.1.7.Different types of fabric structure produced by the knitters From the above graph it can be said that the single jersey (sinker) and double jersey (interlock) are the two fabric types of which the knitters are getting maximum orders from the market. So these designs have captured almost 80% of the market. Single Jersey fabrics are very much essential for inner garments. Although these orders are very much dependent on the market conditions. Sometimes lycra rib and lycra sinker fabrics production becomes higher. In the time of festival season lycra related designs of ladies tops and leggings demand becomes high, so accordingly their production increases.
Rajib Rudra Marketing, XISS Ranchi Page 14

Market Presence of different types of yarn

C:M ( 55:45 ) 100% modal Cotton:Lycra ( 95:5 ) C:P ( 84:16 ) milange C:P ( 60:40 ) C:P ( 84:16 ) C:P ( 80:20 ) C:V ( 55:45 ) milange 100% viscose C:V ( 55:45 ) 100% Cotton 0.00 2.86% 5.71% 11.43% 100.00% 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 5.71% 2.86% 5.71% 2.86% 5.71% 20.00% 11.43%

Fig.1.8. Market presence of different types of yarns In Kolkata, the knitters are primly using these 11 types of yarns and we can see that 100% cotton is everywhere present. The competition is basically in between C:P( 80:20 ) and C:V( 55:45 ), there market presence are 20% and 11.43% respectively. To reduce this 8.57% gap between C:P and C:V it is necessary to form a strong supply chain as well as inbound logistics, which will ensure consistent supply. In the knitting market C:V is having great potential as it can produce better luster and colorful garments. The comfort of C:V is also higher than C:P. In case of C:V mlange the market presence is about 3%.Although C:V mlange is having great scope of success if the dyeing process can be done in some reputed dyeing units.

Rajib Rudra

Marketing, XISS Ranchi

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Consumption of different yarns

100.00 91.43% 90.00 80.00 70.00 60.00 51.43% 50.00 40.00% 40.00 30.00 20.00 10.00 0.00 10s cb 20s cb 25s cb 28s cb 30s cb 34s cb 36s cb 40s cb 40s 44s cb 50s cb 54s cb 60s cb semi cb 8.57% 17.14% 11.43% 11.43% 2.86% 28.57% 28.57% 40.00%

54.29%

14.29%

Fig.1.9. Consumption of different counts of yarn in Kolkata knitting market From this graph we can see that the demand of 40s cb, 30s cb, 25s cb are 91.43%, 54.29%, 51.43% respectively. In Kolkata knitting market 40s cb is used in inner garments as well as in tops and other garments. 30s cb is used to produce ladies tops and leggings (with lycra), mens t-shirt etc. 25s cb can also be used in the same purpose but for a little bit thicker fabric. 20s cb are used to produce collars, cuffs, strips etc. 50s cb and 60s cb are having 28.57% demand and their application is primarily in inner garments of superior quality. Other counts are not that much significantly present in the market
Rajib Rudra Marketing, XISS Ranchi Page 16

Prices of Yarn

60s cb

300 rs/kg

326 rs/kg

352 rs/kg

50s cb

270 rs/kg

300 rs/kg

325 rs/kg

100% cotton 40s cb 245 rs/kg 278 rs/kg 298 rs/kg C:V ( 55:45 ) C:M ( 55:45 ) 225 rs/kg 250 rs/kg 273 rs/kg

30s cb

25s cb

220 rs/kg

242 rs/kg

251 rs/kg

200

400

600

800

1000

Fig.2.1. Prices of different counts of yarn on May,2011 This graph shows as the count become finer, the price gets higher. The Viscose yarn price is 8%-12% higher than the cotton yarn price. In case of Modal yarn the price is 12%--18% higher than cotton. Here it is very difficult to compete with the products of China. According to the respondents China is supplying yarn at cheaper rate in Kolkata market although their quality is not up to the mark. So, to penetrate in Kolkata market the price should be lowered a bit at first and the quality of Viscose or Modal should be outstanding. With this strategy the customers will become brand loyal. The different types of modal and blends yarn count prices are shown in the next page.

Rajib Rudra

Marketing, XISS Ranchi

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28.05.11 CURRENT PRICES FOR MODAL AND BLENDS

S.N O

COUN T 60's 1 CM 60's 2 CM 60's 3 CM 60's 4 CM 30's 4 CM 40'S 5 CM 2/30's 6 M 2/30's 7 CM 24's 8 CM 24's 9 MM

BLEND

COMBED/CARDE D

MODAL APPLICATIO TYPE N MICRO MICRO MICRO MICRO MICRO MICRO MICRO MICRO MICRO MICRO MICRO MICRO WOVEN BED LINEN WOVEN BED LINEN WOVEN BED LINEN WOVEN BED LINEN KNITS KNITS KNITS & WVG KNITS & WVG KNITS KNITS WVG WVG

PRICE (EX MILL) 352.00 356.00 335.00 346.00 257.00 285.00 301.00 272.00 251.00 280.00 365.00 459.00

50:50:0 0 COMBED 65:35:0 0 COMBED 35:65 CARDED 35:65 COMBED 50:50:0 0 COMBED 50:50:0 0 COMBED 100 COMBED 50:50:0 0 COMBED 50:50:0 0 COMBED 100 COMBED 100 COMBED 100 COMBED

10 60'S M 2/80'S 11 M

Chart .1.1. prices of different counts of yarn of modal and their blends

Rajib Rudra

Marketing, XISS Ranchi

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Commission payable

22.86%

11.43%

0.50% of 100 kg 60.00% 8.57% 1% of 100 kg 50 paisa/kg direct purchase

Fig.2.2. Commissions payable during yarn purchase When yarn is being purchased from the agent, the knitters or the garment manufacturer having knitting chain has to pay commission on their purchase amount. There are three systems by which they pay commission. 60% of the respondents pay 0.50% commission on 100 kg of yarn purchase. Here it is significant that 22.86% of the respondents are purchasing directly from the yarn manufacturer.

Rajib Rudra

Marketing, XISS Ranchi

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Application of Cotton yarn

Innr Wr

62.86%

Thermals

48.57%

Kids

80.00%

Mens

74.29%

Ladies

71.43%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

Fig.2.3. Application of cotton yarn in Kolkata knitting market In kids section 80% of the cotton yarn is consumed. In mens and ladies section the consumption are 74.29% and 71.43% respectively. These are manufactured for the local market which includes footpath market also. Those are available starting at 90rs/pcs for one t-shirt to 200rs/pcs in the footpath. In shops the price goes a bit higher in the range of 300rs/pcs to 700rs/pcs although they are not branded one. In innerwear section it is around 63%.This is a huge transaction market and competition is very high among brands like Lux, Rupa, Dilip, Balaram, Gopal, VIP, and Dollar etc.

Rajib Rudra

Marketing, XISS Ranchi

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Final Product type

97.14% 100.00 90.00 80.00 70.00 60.00 50.00 37.14% 40.00 30.00 20.00 10.00 0.00 Printed Dyed Yarn Dyed 54.29% Series1

Fig.2.4. Final product types produced by the manufacturers Here we see that in knitting market 97.14% fabric orders are of dyed fabric. The demand of dyed fabric is highest. In Kolkata as well as its suburb area there are ample of dyeing houses and categorically graded dyeing techniques are available. High range, medium range and low range (according to price) dyeing are available here. In south India some problems have emerged regarding water usage by the industries so, from there the industry persons are coming for contract basis dyeing purpose which is turned out as a boon to the dyers in Kolkata. Printed fabric order is about 54.29%.The printing quality is not at all good in Kolkata. In local printing one medium size child all over printed top piece costs 10rs 12 rs .But there is always the chances of discharge and leaking. So, the garment manufacturers always outsource from the printing units of Ahmadabad and Mumbai which costs 100rs and above depending upon printing style and color.

Rajib Rudra

Marketing, XISS Ranchi

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Yarn dyed fabric user are about 37.14% only as its costing is much higher than dyed. Most of the yarn dyed users have started using it recently. But according to the respondents this market is having tremendous potential in near future.

Season

25.71%

september- february ( summer ) march - august ( winter ) 2.86% all the year

71.43%

Fig.2.5. Season time From the diagram we can see that in Kolkata Market 71.43% of the companies produce throughout the year and 25.71% produce more during summer.

Rajib Rudra

Marketing, XISS Ranchi

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Shrinkage
60.00

50.00 45.71%

48.57%

40.00

30.00

20.00 11.43% 10.00 2.86% 0.00 3%- 5% 5%-7% 7%-10% 10%-12% shrinkage of knitted fabric of cotton

Fig.2.6. Shrinkage of the knitted fabric Shrinkage of the knitted fabric is a very important parameter to judge its quality. Here we can see that 48.57% of the respondents have told that their fabric shrinkage is about 5%--7% and 45.71% of the respondents have told that their fabric shrinkage is about 3%--5%. In case of knitted viscose fabric the shrinkage is above 10% according to the respondents.

Rajib Rudra

Marketing, XISS Ranchi

Page 23

Pilling Comparison
50.00 45.00 40.00 35.00 30.00 20.00% 25.00 20.00 15.00 10.00 14.29% 5.00 0.00 0.00% 2.86% 22.86% 20.00% 17.14% 37.14% 37.14% Pilling rate of cotton - viscose 0.00% Pilling rate of 100% Cotton without enzyme wash 22.86% 5.71%

Fig.2.7.Comparison of pilling between cotton fabric and viscose fabric Pilling is the small pimple type cluster generated on the surface of the fabric due to abrasion for long usage. Here in this diagram it is shown that how the respondents have reacted when asked about pilling of C:V in comparison with 100% cotton. In case of C:V 14.29% of the respondents have told that it generates very high pilling and 37.14% respondents have told that it is prone to high pilling. Where as in case of 100% cotton not a single respondents have told that it generates very high pilling and only 2.86% respondents have told that it generates high pilling. Only 5.71% of the respondents have told that the viscose generates low pilling and 0% respondents have told that C:V is Pill resistant.

Rajib Rudra

Marketing, XISS Ranchi

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Shade Solidity

2.86%

25.71%

Highly solid shade ( above 95% ) Moderately solid shade ( 90%-95% ) Weakly solid shade ( Below 90% )

57.14%

Fig.2.8. Shade solidity on Cotton fabric According to 57.14% respondents cotton shades are highly solid this means no leaking after dyeing. 2.86% respondents told that in some color like red and zed black leaking is there. This means the shades are not solid

Rajib Rudra

Marketing, XISS Ranchi

Page 25

Grams Per Meter

GSM OF KNITTED FABRIC

251 & Above 8.33%

201-250

5.56%

151-200

75.00%

100-150

66.67%

Less Than100

16.67%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Fig.2.9. GSM of knitted fabric manufactured in Kolkata From this diagram we can see that 75% of the respondents are manufacturing 151-200 GSM fabrics. So, we can say that orders of this type of fabrics are maximum in Kolkata knitting market.

Rajib Rudra

Marketing, XISS Ranchi

Page 26

Different dyeing charges:

60.00% 60.00 50.00 40.00 30.00 20.00 8.57% 10.00 0.00 15--35 rs/kg 40--65 rs/kg 70--100 rs/kg 350--450 rs/kg 5.71% 25.71%

Fig.3.1.1.Light color on cotton for per kg of knitted fabric

60.00 51.43% 50.00 40.00 30.00 20.00 10.00 0.00 40--60 rs/kg 65--85 rs/kg 95--120 rs/kg 400--500 rs/kg 5.71%

22.86%

20.00%

Fig.3.1.2.Medium color on cotton per kg of knitted fabric

Rajib Rudra

Marketing, XISS Ranchi

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35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

31.43% 28.57% 28.57%

5.71%

60--75 rs/kg

80--95 rs/kg

100--150 rs/kg

450--550 rs/kg

Fig.3.1.3.Dark color on cotton per kg of knitted fabric

48.57% 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 75--90 rs/kg 95--120 rs/kg 150--180 rs/kg 500--600 rs/kg 5.71% 5.71% 34.29%

Fig.3.1.4.Extra Dark color on cotton per kg of knitted fabric In each category we can see that the superior quality production is less. This is because of the high dyeing charges. For this reason only the reputed brands can afford this.

Rajib Rudra

Marketing, XISS Ranchi

Page 28

In case of light color 60% of the respondents prefer 40rs/kg-65rs/kg. 51.43% respondents prefer to spend 65rs/kg-85rs/kg for medium color on cotton like coffee color. It is noticeable that about 31% of the respondents want to spend 60rs/kg-75rs/kg for dark color like green, red etc. Although we can see that 100 150 rs/kg dark color is also available for dyeing (28.57% respondents are using). This means most of the dark colors are not of very good quality dyeing. In the market one 5 color setting 2 dark, 2 medium, 1 light (Sky blue, Navy blue, coffee, Biscuit, Charkol -- 40 rs/kg) is also available. While in the time of Dyeing of Viscose according to the respondents the cost is 15% to 20% higher than cotton.

Knitting Charges in Kolkata Market

In Kolkata the approximate rates of knitting is given below:24s cb single jersey 30s cb single jersey 40s cb single jersey 40s cb interlock 60s cb interlock 60s cotton: lycra 40s cotton:lycra For single jersey 290 GSM (jacket) For reversible For 60s cb rib For 30s cb rib 7rs/kg-8rs/kg 9rs/kg-10rs/kg 11rs/kg-12rs/kg 10rs/kg-12rs/kg 14rs/kg 40rs/kg 30rs/kg 22rs/kg 10rs/kg-12rs/kg 28rs/kg 13 rs/kg

According to the respondents viscose knitting charges are 15% to 20% higher than these cotton knitting charges

Rajib Rudra

Marketing, XISS Ranchi

Page 29

Wastage during conversion

50.00 45.71% 45.00 40.00 35.00 30.00 25.00 20.00% 20.00 15.00 10.00 5.00 0.00 Wastage negligible 1%--3% of fabric cost 4%--6% of fabric cost 7%--9% of fabric cost 10% of fabric cost 8.57% 8.57% 5.71%

Fig.3.2. Wastage during conversion from fabric to garments Wastage generation is not that much significant according to the respondents. Wastage of 1%--3% of fabric cost is incurred by 45.71% of the respondents.

Rajib Rudra

Marketing, XISS Ranchi

Page 30

Supply
50.00 45.71% 45.00 40.00% 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Whole Sale Supply Own Brand Supply Supply To Other Brands Export 17.14% 42.86%

Fig.3.3.Supply of the manufactured fabric It is seen that 45.71% of the respondents are supplying to their own brand. Those brands are Well Fit, Zero(New Born Baby Wear),Robin, Peperment, Cotton Ginny(Inner Wear),Kids Kool, Afirst, Kids World,A.Tex,Breeze,Penguin(Ladies,Gents,Kids),Classic,Home3,Treandy World.
PANTALOONS REEBOK JOCKEY DOLLAR CITI STYLE RELIANCE MART BAZAR KOLKATA BIG BAZAAR AMUL RUPA LUX VIP 0.00 7.14% 10.00 20.00 30.00 40.00 50.00 60.00 50.00% 21.43% 57.14% 14.29% 28.57% 7.14% 7.14% 7.14% 14.29% 21.43% 21.43%

Fig.3.4. Supply to Other Brands Rajib Rudra Marketing, XISS Ranchi Page 31

Among those 42.86% other branded supply the different segments are shown above graphically. In this graph we can see that supply to RUPA and LUX is 57.14% and 50% respectively. This means they are doing maximum local outsourcing in Kolkata knitting market.

Margin
40.00 35.00 30.00 25.00 20.00% 20.00 15.00 10.00 5.71% 5.00 0.00 Below 4% / kg 4%--7% /kg 8%--12% /kg 12%--15% /kg 15%--19% /kg 20% and above /kg do not want to discuss this issue 37.14%

11.43%

11.43% 8.57% 5.71%

Fig.3.5.Margin on the garments sale per kg Every one in the business want to earn more profit and for that reason margin in the time of sale is very necessary. Here it is seen that the margin is a bit less in comparison with the other parts of India. 35% margin is the highest one and a few manufactures are enjoying that. 20% of the respondents are enjoying 4%--7% margin per kg of sales. But it is seen that 37.14% of the respondents are not interested on discussing those matters. Actually they do not want to discuss on the price related issue as they feel insecure about their pricing strategy. But Birla Cellulose can make them understood that this quarry about price is for the benefit of them. So that they can get the best quality in cheapest rate with a good margin on sale. Reason for their low margin may be the loyal customers.

Rajib Rudra

Marketing, XISS Ranchi

Page 32

Potential of CottonViscose from respondents point of view

100.00 8.57% 11.43% 0.00% 5.71% 0.00% 8.57% 80.00 14.29% 20.00% 8.57% 60.00 20.00% 37.14% 20.00% 5.71% 62.86% 65.71% 28.57% 0.00% 0.00% 17.14% 17.14% 28.57% 28.57%

85.71% 40.00 80.00% 68.57% 62.86% 20.00% 20.00 42.86% 45.71% 11.43% 8.57%

Low potential Moderate potential Good potential Very good potential

8.57%

11.43%

14.29% 0.00

17.14%

14.29%

Fig.3.6.Potential of CottonViscose from respondents point of view According to the respondents it is shown that where C:V can generate high demand in Kolkata knitting market. Rajib Rudra Marketing, XISS Ranchi Page 33

85.71% respondents have told that 40s and 30s C:V will have huge demand for making Ladies Western tops . According to 80% of the respondents in case of Ladies leggings 30s cotton: viscose: Lycra is having high chance of success. In case of kids wear 40s and 30s C:V have 62.86% chance of success.

Properties of Modal
120.00

100.00

80.00 48.57%

40.00%

40.00% 48.57%

40.00%

40.00%

Haven't used 60.00 2.86% 5.71% 40.00 5.71% 8.57% 8.57% 0.00% 57.14% 57.14% 0.00% 2.86 8.57% 20.00% 17.14% 0.00 2.86% 0.00% 0.00 2.86% 0.00% Low Moderate Good Very good

48.57% 20.00 37.14%

14.29%

25.71% 17.14% 0.00 Absorbency Freshness Soft and bouncy Dimensional stability Brilliant colours Unmatched lustre

Fig.3.7.Properties of Modal liked by respondents

Rajib Rudra

Marketing, XISS Ranchi

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Those above mentioned properties are very much liked by the respondents. But it is seen that in each parameter about 40%--50% respondents could not give any answer as they have not used the product in their factory. So, Birla Cellulose should conduct awareness programs to make market penetration process easier.

Price of Modal
40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 very high high moderate within reach 14.29% 28.57% 37.14%

8.57%

Fig.3.8.Price of Modal in comparison with cotton Although physical properties of modal are very much liked by the customers but when it comes to the price 37.14% of the respondents told that it is very high and 28.57% of the respondents told that the price is higher than cotton.

Rajib Rudra

Marketing, XISS Ranchi

Page 35

Some Technicality regarding viscose and modal Properties Viscose

Tenacity modulus elongation wet tenacity wet modulus wet elongation absorbency dye ability reduction of modulus in wet condition increase of elongation in wet condition lowest do highest lowest do highest high good highest highest

Modal
in between do in between in between do in between good good in between in between

Lyocell
highest do lowest highest do lowest good good lowest lowest

Chart.1.2.Comparison in physical properties among Viscose, Modal and Lyocell

Note- 1) fabrics made from Viscose fibers are limpy due to their low modulus, 2) Their strength is getting deteriorated vey highly when they are wet, so they are not favorable to wear 3) Wash ability is also very poor, because of lower wet tenacity. 4) Viscose fabrics are not good for rough & repetitive use due to low abrasion & tensile strength. Those are the experts comment on viscose and modal. So, it is very necessary to incorporate all these properties into Viscose and Modal to make it more acceptable to the customers.

Parameters Count Neps Elongation (%) Elongation (CV %) Hairiness (H) Hairiness (SH)

100% Cotton
30s cb 40 5.8 9.5 7.3

C:M 50:50
30s cb 20 5.4 8.5 7.2

C:M 30:70
30s K 18 6.8 12.5 7

100% Modal
30s K 18 12 9 6.4

1.9

1.7

1.7

1.6

Chart.1.3. comparison in physical parameters between cotton and modal

Picture.1.1. Collection of Modal made comfort wear for ladies Rajib Rudra Marketing, XISS Ranchi Page 36

Feedbacks and Suggestions from the Respondents:

C:V Sample uniformity in dyeing is required and white neps should be rectified In case of yarn supply shortage of material due to moisture loss should be prevented Labor problem Should be tackled carefully In case of viscose wet processing that is dyeing prime technicalities should be clarified In the time of knitting conversion of yarn weight loss should be adjusted by the receiving party Irregularity in supply of viscose and inconsistency in quality should be rectified Suitable Dyed yarn supply should be taken care of Contamination in air should be taken care of Thick and thin places in the yarn should be taken care of After certain days of use C:V gets yellow which should be taken care of In case of modal neps formation should be taken care of as it is very high Sales person behavior are not up to the mark Viscose should be introduced to top dyeing house like Rupa, Kothari, Exodus, Amarnath, Four Star, Delta fabrics where Caustic Soda usage is minimum. During festive season the supply of yarn should be as per demand. 20% difference in rates in China and India should be minimized. Shrinkage in viscose yarn should be reduced Strength of modal fabric should be increased as product development In case of Modal, in Kolkata, niche marketing is very necessary where the target customers will be those ladies who can use No Party Line inner garments as shown in picture 1.1 and for this they should be willing to pay starting range of 22$ to 30$ ( around 1200 INR )

Recommendations and Strategies

To become more acceptable in the market it is very necessary to compete with China in C:V and C:M price. China is supplying viscose 20% less than the Indian price. So, to penetrate in the market it is very essential to negotiate in price and serve the best quality added some additional features. In case of Modal the prime competitor of Birla is Tata. In recent years Tata have done great job. Whenever they brought new types of yarn in the market, to promote it they have arranged a seminar cum lunch program in Kolkata inviting managing directors of
Rajib Rudra Marketing, XISS Ranchi Page 37

different knitting companies. There they have thoroughly explained the technicality about the particular fiber and made everyone aware about the utility of using new type of yarn. In this way they have generated awareness about the yarn. At the penetration stage their price was always negotiable and the supply was outstanding. So, Birla Cellulose will have to take that type of initiation to enhance their sale in Kolkata knitting market. To compete with cotton on these counts Birla should have a firm grip on the supply and procurement of these counts viscose yarns in Kolkata market. It is a very important complains from the respondents that Birlas yarn supply is not consistent in the market. It may be because of the absence of own yarn manufacturing unit as well as own yarn dealer or agent. So, to proof their authenticity in case of supply it is important to establish a proper co-ordination among yarn manufacturer, dealer and end user through systematic inbound logistics. In certain way it is possible to track those customers who are purchasing directly from the mill. Then Birla Cellulose should invite them in the get together of which I have mentioned earlier. There we should clarify the utility of using viscose yarn to them and why it is 8%--12% costlier than cotton that also should be discussed. Colorful dresses attract kids and viscose can be made far more colorful and lusters than cotton. So, here in kids section the scope of success of viscose yarn is very high. In case of ladies tops the same suggestion is applicable. The comfort should be improved in viscose garments and the pilling problem should also be removed as a product development step. The steps taken as product development should be displayed in the get together as a power point presentation. In the time of Durga Puja the sales goes up double as the demand of colorful dresses increases. In this season demand of viscose also goes up. So, 5 to 6 months before Durga Puja it is better to launch viscose as a separate brand besides the existing one. In case of viscose fabric we will have to reduce the uneven shrinkage in the fiber stage so that with better color reflectance viscose fabric can also provide good dimensional stability to the customer. So, this figure is very sensitive for the growth of viscose in Kolkata market. In product development stage Birla Cellulose should do some technical modification in viscose in spinning stage or in fiber stage so that pilling can be reduced and they should make the customers know about modified C:V so that the wrong conception can be changed. It also noticeable that 20% of the respondents in case of cotton-viscose and 12.14% of the respondents in case of 100% cotton do not know about pilling. So, in the get together Birla should point out about Pilling on Viscose.

Rajib Rudra

Marketing, XISS Ranchi

Page 38

Rajib Rudra

Marketing, XISS Ranchi

Page 39