FLAXO EXPORTS

GROUP C9

Brief Introduction
Product
Handloom Products
Customers
Exports to various countries; primarily Walmart & Target
Location and Origin
Panipat, Haryana | Since 1982
Competitors
200 SMEs Exporters around Panipat

Objectives

Objectives and Challenges:

Business Growth
Explore new
markets
Quality perfection
May implement
Chinese practices

Challenges

Environment
Recruitment
Training and Feedback
Peoples Attitude
Unions
Legal Issues
Cost factors

Layout
Market Scenario
Flaxos Position
Opportunities
Challenges
Dilemmas

Market Scenario:
200

SMEs exporters, 1300 very smalls firms

1,25,000

employees

Turnover

150 billion

Labour

Intensive (30-40% of cost)

Migrant

population,

Culturally

diverse, semi-literate

workforce
Products

are unique to Panipat

Layout
Market Scenario
Flaxos Position
Opportunities
Challenges
Dilemmas

Flaxos Position:
Among
Exports

Top 5 exporters in Panipat

to over 20 countries

Turnover
488
2

of 400 million

Employees

Factories and 1 Head Office

Values
Professionalism,

timely delivery, humane,

quality
Experienced

firm (credibility) gives advantage

Flaxos Position:
Location

Pay Structure

Head office; 16
Piece Rate; 370
Factory 2; 196

Time Rate; 115

Factory 1; 275

Diversity
Women; 76

Men; 412

Flaxos Position:
Personal

attention

Motivation

Helped
No

and enhanced morale

in financial needs

abusive language use

Family

Anil

values of owners were held high

Sharma

High

respect; Directly Supervises

Suggestion
Feeling

box to hear out employees

of being in community Happy Family

Layout
Market Scenario
Flaxos Position
Opportunities
Challenges
Dilemmas

Opportunities:
Generating
Exploring

Growth

New markets

Bringing

in Foreign Best practices

(China)
Using

better machinery to improve quality

Alliance

with other companies

Layout
Market Scenario
Flaxos Position
Opportunities
Challenges
Dilemmas

Objectives

Objectives and Challenges:

Business Growth
Explore new
markets
Quality perfection
May implement
Chinese practices

Challenges

Environment
Recruitment
Training and Feedback
Peoples Attitude
Unions
Legal Issues
Cost factors

Challenges
Environment
Turbulent

nature of market

Behaviour

of people towards job

changing
Walmart
Indian

& Target expects superior quality

Trade Union Federation

Emphasise
50

of forming unions

Flaxo employees enrolled

Challenges
Recruitment
Easy

No
No

availability of manpower

HR Department

rule/system of retirement

Placement

Agencies

Challenges
Market
Focus

is becoming Turbulent

from loyalty to competencies

Challenges
Training and Feedback
No

performance appraisal

Appraisal

was judgemental

Revenue
Quality
Complaints

received

No

organised training

Skill

transferred done at indigenous level

Challenges: Scalability

Challenges
Peoples Attitude
People

Not

are semi-literate

take keen interest in formal Training

Dont

know their legal rights/facilities

Women

dont use crche facility

Quietly

accepted terminations

Attitude

evolved into culture in Panipat

Challenges: Chinese practices go against culture

Challenges
Unions
No

desire to unionise

Unions

in non-export sector led to 350 mills lock-

out
Individual
Problem

& personal care given

with union leaders over Bonded labour

Piece-rate

system ensured sense of fairness

Challenges: Scalability, Law restrictions

Challenges
Legal Issues
Not

aware of Labour regulations

Industrial

Disputes Act,1947

Payment

of Gratuity Act,1972

Factories

Act

Employees

Provident Fund Act,1952

Superficial
To

following rules

tackle Walmart surprise checks

Settles

conflicts informally

Challenges: Loss of credibility

Challenges
Cost Factors
Flaxo

initially invested 30 million in plant

and machinery

Estimated

cost of 80 million (as of

2007)
It

is a huge investment

Challenges: Financing via loans

Layout
Market Scenario
Flaxos Position
Opportunities
Challenges
Dilemmas

Dilemmas
Follow indigenous
practice
Gradual changes

Legal emphasis

Family Values

Adopt Foreign Practice

Radical Changes

Ethics and Informal

Company Values

Thank You