CONTE NTS

CHAPTER NO.
I.

PAGE

EXECUTIVE SUMMARY 1 INTRODUCTION

II.

Aims and objectives Scope and Significance Methodology Limitations

III.

LITERATURE SURVEY Features of garment materials History Early techniques

IV.

PROFILE Industry Profile Company Profile Organizational Structure

V.

FUNCTIONAL AREAS Production Finance Purchase and Stores Human Resource Department Quality control

VI.

SWOT ANALYSIS Strengths Weakness Opportunities Threats

VII.

FINDINGS SUGGESTIONS AND CONCLUSION Findings Suggestions Conclusion

BIBLIOGRAPHY APPENDIX

CHAPTER 1

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
The history of textile is almost as old as that of human civilization and as time moves on the history of textile has further enriched itself. In the 6th and 7th century BC, the oldest recorded indication of using fiber comes with the invention of flax and wool fabric at the excavation of Swiss lake inhabitants. In India the culture of silk was introduced in 400AD, while spinning of cotton traces back to 3000BC. In China, the discovery and consequent

development of sericulture and spin silk methods got initiated at 2640 BC while in Egypt the art of spinning linen and weaving developed in 3400 BC. The discovery of machines and their widespread application in processing natural fibers was a direct outcome of the industrial revolution of the 18th and 19th centuries. The discoveries of various synthetic fibers like nylon created a wider market for textile products and gradually led to the invention of new and improved sources of natural fiber. The development of transportation and communication facilities facilitated the path of transaction of localized skills and textile art among various countries. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy. Its vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women and the disadvantaged is noteworthy. Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector. Swathika Textile Mills Private Limited was established in the year 1990 in Tirupur, the cluster of Knitted Garment Industry as a unit catering and fulfilling the needs of the giants in the Garment field by way of Job Work. The company projects its supremacy through

extensive quality control and wide range of products. Various functional departments of the firm are linked through computer networks, which speedens up processes with accuracy and facilitate immediate responses to satisfy customer's needs. The components and the final product go through rigorous inspection at the testing rig, which is fully equipped with latest measuring equipments. The aim of the group is to consolidate, expand and diversify with continued development for fulfilling the requirements in the garment industry. The organizational study was done a Swathika Textile Mill, Padmavathipuram Road, Tirupur. The study was conducted to obtain knowledge about the business and structure of the organization. The study also aims to understand the production process in the organization and to learn the best business practices followed by the company. To obtain the relevant information about the organization, data was collected by observation, from various sources like published materials, company website and from the staffs of the organization through personal interviews and discussion. A SWOT analysis was also conducted to identify the strength and weaknesses of the organization as well as to identify the opportunities and strength of the company.

CHAPTER II

INTRODUCTION

INTRODUCTION TO STUDY
Practical knowledge is essential for every management aspirants. In order to enlighten the students in this dimension, M.G.University in their curriculum insists an Organization Study for the purpose of acquiring in depth knowledge about the organization. The organization chosen by the researcher for the above said purpose is Swathika Textile Mills Pvt. Ltd, Tirupur. Its business, product quality, technical adaptations are some of the factors, which prompted the researcher to conduct the organization study on this firm. The experiences that have gained during the period of study give the researcher an exposure to the practical side of the theoretical knowledge.

INTRODUCTION
Swathika Textile Mills Pvt Ltd, was established in the year 1990 in the cluster of knitted garment industry, Tirupur. The Head office is situated at Coimbatore and the company has two units, Unit I is at Kongu main road, Tirupur and Unit II is at Padmavathypuram, near to Gandhi Nagar around 3 Kms away from Tirupur Railway Station and is around 6 kms from Tirupur City. The Organizational Study is carried out at Unit II. The firm has a total built up area of 18,000sq.ft including conference hall, stocking area for raw materials, stocking area for the packed products and canteen. The company has a good manpower of employees. The company projects its supremacy through extensive quality control and wide range of products. Product's quality is achieved with the use of modern technologies and active involvement of employees. Various functional departments of the firm are linked through computer networks, which speeding up processes with accuracy and facilitate immediate responses to satisfy customer's needs. There will be rigorous inspection in each and every step for assuring the quality of the product. The company also has sister concerns namely, 'Swathika Printers, Tirupur and Devi Karunambigai Textile Mills Pvt Ltd, Arasur, Coimbatore that are also involved in manufacturing and trading activities. The company got recognitions from their customers for the quality of the product. The company is exporting 95% of the products to different European Countries such as Britain, Spain, Germany, Italy etc and the remaining 5% to the local markets.

AIMS AND OBJECTIVES OF THE STUDY

The main aims and objectives of the study are:
1.

To have a general idea about the company, its history, management, present position and future prospects.

2. To know the organizational structure of the company. 3. To learn about the different departments of the company, their specific functions and activities. 4. To know the product profile of the company. 5. To get awareness about the roles and responsibilities carried out by companies by key personnel. 6. To know about the inter dependency of various departments in an organization. 7. To familiarize with internal and external environment and competition facing the company. 8. To gain a real life exposure to management process.

SCOPE OF THE STUDY

The study aims at providing a firsthand experience in organizational effectiveness. It also provides assistance in developing the analytical skills of a person with respect to business management.

SIGNIFICANCE OF THE STUDY

The significance is to get an idea about the actual working of an organization apart from the theory, we learn through the books. This enables us to compare and evaluate the theory with practical side.

METHODOLOGY
The project was in Swathika Textile Mills, Tirupur. The company manufactures Garments such as T-Shirts, Polos, Sweat shirts, Pyjamas, Boxer shirts for Gents, Ladies, Teenagers and Babies.

TYPE AND SOURCE OF DATA

Both primary and secondary data have been used for this study.

PRIMARY DATA
Data collected through direct observation and interaction. Opinion of management and workers.

SECONDARY DATA
Annual reports of the company Company records and manuals Website of the company

LIMITATIONS OF THE STUDY

1. Due to time constraints an in depth study could not be made.

2. Some respondents were non-co-operative, regarding certain questions.

3.

Secrecy nature of business operation prohibits the collection of certain information.

4. Language constraints.

CHAPTER III

LITERATURE SURVEY

INDIAN TEXTILE INDUSTRY The Indian textile industry is the second largest in the world, second only to China. Indian textiles also account for 38% of the countrys total exports and are, therefore, a very important industry. The forecast is that textiles exports will reach USD 35 billion by the year 2000. To sustain this growth, it is imperatives that the textile industry produces goods of high quality at reasonable prices. This means that the industry must continuously modernize its machinery. Therefore, the textile machinery industry sector has an integral role to play in the growth of India's textile exports. Industry analysts note that textile prices are increasingly competitive worldwide as more and more developing countries enter the global textile trade. To maintain, if not increase, its global market share, the Indian textile industry must procure modern, low-cost, textile machinery so that it can produce high quality textiles and garments for export at competitive prices. SOME FACTS ABOUT INDIAN TEXTILE INDUSTRY:

1. There are approximately 1200 medium to large scale textile mills in India. Twenty percent of these mills are located in Coimbatore (Tamil Nadu). 2. India has 34 million cotton textile spindles for manufacturing cotton yarn. Cotton yarns account for 70 percent of India's textile exports. (China has 40 million cotton spindles.) 3. Of the Indian textile yarn exports, almost 80 percent come from coarser yarns (counts below 40s). Consequently, there is a need to upgrade the technology. 4. For the past two years, there has been a significant slowdown in the cotton spinning segment, mainly due to the spiraling price of cotton. 5. The domestic knitting industry is characterized by small scale units which lack adequate facilities for dyeing, processing and finishing. The industry is concentrated in Tirupur (Tamilnadu) and Ludhiana (Punjab). Tirupur produces 60 percent of the country's total knitwear exports. Knitted garments account for almost 32 percent of all exported garments. The major players include Nahar Spinning, Arun Processors and Jersey India. India is presently exporting 6 billion US Dollars worth of garments, whereas with the WTO regime in place, we can increase the production and export of garments to 18 to 20 billion US. Dollars within the next five years. This will enable generation of employment in general and in rural areas in particular. By tripling the export of apparels, we can add more than 5 million direct jobs and 7 million indirect jobs in the allied sector, primarily in the cultivation of cotton. Concerted efforts are needed in cotton research, technology generation, transfer of technology, modernization and upgrading of ginning and pressing factories and an aggressive marketing strategy.

Developing countries with both textile and clothing capacity may be able to prosper in the new competitive environment after the textile quota regime of quantitative import restrictions under the Multi-Fibre Arrangement (MFA) came to an end on 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing. As a result, the textile industry in developed countries will face intensified competition in both their export and domestic markets. However, the migration of textile capacity will be influenced by objective competitive factors and will be hampered by the presence of distorting domestic measures and weak domestic infrastructure in several developing and least developed countries. India must take adequate measures for capturing its market by promote the development in this sector.

CHALLENGES IN THE TEXTILE SECTOR Textile Related Rigid labor law Lack of processing infrastructure Low machinery manufacturing capacity Inverse ratio of Economic General High cost of capital High power cost goods Infrastructure Gaps High transaction cost High & Peak textile tariffs Brand India

Manmade Vs. Cotton Investment Gap Low FDI sector in Textile of

Non availability trained manpower

CHAPTER IV

PROFILE

INDUSTRY PROFILE The textile industry in India is the second largest employment generator after agriculture. It holds significant status in India as it provides one of the most fundamental necessities of the people. Textile industry was one of the earliest industries to come into existence in India and it accounts for more than 30% of the total exports. Textile industry is unique in the terms that it is an independent industry, from the basic requirement of raw materials to the final products, with huge value addition at every stage of processing.

Textile industry in India has vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors and rural and urban areas, particularly for women and the disadvantaged. Indian textile industry is constituted of the following segments, Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir and Jute. History of Textile industry in India Indian textile enjoys a rich heritage and the origin of textiles in India traces back to the Indus valley Civilization where people used homespun cotton for weaving their clothes. Rigveda, the earliest of the Veda contains the literary information about textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment worn by the aristocrats and ordinary simple clothes worn by the common people. The contemporary Indian textile not only reflects the splendid past but also cater to the requirements of the modern times. There has been a distinct and positive shift from quality to quality. Earlier Indian textiles were considered cheap and of low quality. The industry was at that time driven by large volumes, which were of paramount importance. The best quality was produced in Europe and Japan. Since then, India has come a long way, emerging as a manufacturer of high quality yarns and fabrics. The leading mills such as Raymonds, Read & Taylor, Aravind mills etc.Improved their quality standards prevailing into the world.

Implementation of New Equipment The textile industry has also become a high technology. The textile industry has also become a high technology industry. Nobody earlier could have concerned that the industry would require top of the line technical skills. Present day textile machinery is fully computerized and needs totally new skills to effectively manage it. New Marketing Trend On the marketing side, there has been a total change, with almost all players in the industry extending their reach to international markets. The impact of these trends on the textile industry is profound. Increasingly any company cannot sustain itself only on local market demand or only the exports. One has to look at the global markets in totality. Competition The compulsion to access and compete in international markets has been perhaps one of the saving graces for the industry. Clearly the ability and necessity of meeting global competition head on, has forced the industry to upgrade its technology, product quality, cost structure and marketing skills. Truly, we have learnt more from the competitions than from ourselves. Decentralized sectors Another visible change relates to the scale of operations. Earlier textile mills were generally reasonably large size becomes a nonconstraining factor with the advent of power loom sector, which enabled small weavers to make and market their own fabrics in direct competition with large mills. Technocrats Another shift in the industry is regarding entrepreneurship. Technocrats have been able to become possible to have small size spinning, weaving and processing mills. All this was earlier the domain, solely of large businesses. Cost Consciousness The greater competitive pressure have highlighted the need to control cost of every type of whether it be energy, water or labor all of which were earlier taken for granted now every mill is highly cost conscious and industrial engineers keep detailed trace of every cost parameter including energy consumption including energy consumption, waste control, machine efficiency and productivity. No doubt, this will have to be an ongoing exercise. Since cost have to be ruthlessly and persistently brought down. Labor intensive industry

Indian Textiles targets to achieve by end of the 11th Five year Plan (2007-2012) Market size of US$ 115 Billion Export target US$ 55 Billion Domestic market US$ 60 Billion Indias market share in world textiles trade to grow from 3% to 8 % 12 Million additional jobs Investment Rs.150,600 Crore Textiles Export Target (In Billions) Year ( March) 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 April Target 19.73 15.565 15.16 16.31 15.05 13.72 Achievement 19.62* 17.80 13.04 13.16 12.41 10.76

COMPANY PROFILE

Swathika Textiles Pvt Ltd was established in the year 1990 in Tirupur, the cluster of knitted garment industry as a unit catering and fulfilling the needs of the giants in the Garment industry by way of job work. Slowly and steadily the company marched ahead in its growing path with the able and efficient contribution and hard work by the Directors of the company. The company has two manufacturing units and is the exporter of knitted garments for the last 15 years. GOVERNING BODY The company was established with Mr.G.Shanmuganathan, Mr.N.Kasinathan and Mr.K.Murugan as the Directors with a share capital of Rs. 10 lakh each and 1.5 crores loan from The Bank of India. Now the company is managed by Mr.K.Murugan the Managing Director and Mr.Sekar.I, the General Manager. INFRASTRUCTURE The company has a total area of 18,000 sq,ft. Assembling arena, conference hall, guest rooms, canteen are other facilities available in the premises. Trees are planted in the factory to have an echo friendly atmosphere. Modern methods are used for stocking and handling and even the raw materials are stored in the stock yard through the pallets. This has helped the industry to have an elegant look apart from making the handling easy. The present net worth of the company will be around Rs.4 crores. The capability to cater the needs of the buyers the infrastructure is filled with all modern equipments to give high degree of accuracy and capacity to produce 1,20,000 garments per month, depends upon the styles and shades. Products The company manufactures products for Gents, Ladies and Kids such as: T-Shirts Polos Sweat Shirts

Leggings Boxer Shorts Main Customers Pull & Bear, Spain Jerbal, Italy Primark Stores, UK Max collections, Sweden Shahinler, France (Disney) Peacock Stores Ltd, UK National School Wear, UK Bonmarche, UK Vadotex , The Netherlands Classic Edition USA Houses of Trends, Sweden Lutz, Switzerland Bhs UK Replay & sons, Italy HEAD OFFICE: IInd floor Kandasamy Shopping Center, No 408, Rangai Gowder Street, Coimbatore 01 UNIT I : No 15, Annapoorna layout, Kongu main road, Tirupur UNIT II: No. 36(6)/16, IIIrd street Padmavathipuram north, Tirupur

ORGANIZATIONAL CHART

Managing Director

Chief Financial Officer

General Manager

Accounts Officer

Qualit y Contro l Qualit y Assuro Supervis ors

Personn el & admin. Officer Securi ty Office Guards

Merchandis ing Officer

Purchase Officer

Clerks Asst. Merchandis ing Officer Stores Executiv e

Supervisor s Workers

Stores Assistant

Peons

CHAPTER V

FUNCTIONAL AREAS

FUNCTIONAL AREAS The functional area of a company refers to its formal structure which helps to coordinate numerous jobs. The various functional areas in Swathika Textiles Limited are:

1. Production department

2. Finance department

3. Personnel and administration department

4. Purchase and stores department

5. Quality control department

PRODUCTION DEPARTMENT The production is the most important department in the organization and is paid utmost attention. Production involves the step by step conversion of one form of materials into another through chemical or mechanical processing to create or enhance the utility of the products. Production is performed by a group of persons who are responsible for producing goods. Here the entire production process is carried out by the Merchandise department. The production process involves Production planning, Quality control, Acquisition of raw materials and Production. Since the company is an exporting company, it has to be get order for the product. The order for the product is exclusively found out by the Managing Director. Based on the demand for the product, the Merchandise department prepares the quantity of the raw materials and sent to the purchasing department. It will ask the advice from the financial department and the financial department will prepare the cost for each raw material, wages, transportation charges, wastages and the profit margin. If it is agree able with the offer made by the buyer the company will accepts it. The order from the buyer consists of the designs, the Gram Square Meter (GSM) specifications, colour, quantity etc. Based on the order specifications first of all samples are prepared and sent to the buyers. If they were satisfied with these samples the original order will be executed. Production Planning: It includes acquiring of raw materials from the stores department based on the order. Quality Control: The raw materials should be in good quality as per the standards set by the company, otherwise the products turned out to be pure quality.

Acquisition and Issue of Materials: The issue of materials after checking is given to the department for production process. Production process: This includes from purchasing of raw materials to packing. The various sections under Merchandise department are: Fabric Section Cutting Section Printing Section Stitching Section Ironing Section Packing and Dispatch Section. Fabric Section The first section under merchandise department is fabric section. The purchased yarn is sent for dyeing, knitting, washing and compacting. All these process are given as contracts to outside. The material come after dyeing and knitting are checked for its GSM specifications and then sent to washing and compacting. Cutting Section After dyeing, knitting, washing and compacting the cloth material is sent to the cutting section. The cutting master will make the shapes for neck, sleeve and body using cardboard papers and using these shapes the cloth is cut in to appropriate shapes and sizes with the help of cutting machines. Printing Section The pieces that were cut are sent to printing section or embroidery section. The printing is also done using machines. The company doesnt have any embroidery section. So such works are given to outside as contracts. The design and the color will be sent by the buyer. Based on these the print will be taken on an oil type plastic paper. These prints will be transplanted to the frame. The printing is done with a type of dye. The frame is mounted on a machine which can be rotated and the machine can hold 12

frames. To smoothen the printed materials fusion machines are used after stitching. Stitching Section After printing it is sent to the stitching section. There are two stitching section one is exclusively for the preparation of the sample. After each step there will be inspection. The stitching is done with the help of two machines one is singer table and the other is power table. Singer table is used for ordinary stitching and power table is used for pad locking and over locking. Labels, buttons etc are attached during stitching. Here also inspection is carried out to find out whether any mistake is there. Ironing Section After stitching the material is came for Inspection for the measurements. If it agrees with the standard specifications, they will be sent to the ironing section. Small variations in GSM and compacting can be corrected while ironing. Packing and Dispatch After ironing the cloth is sent to the packing section. There they carry out the final inspection. The checked out materials are neatly packed in large carton boxes and sealed. The buyers QC will come and check any of the packed one randomly. If he is satisfied the material the approval for shipment is given.

Hierarchy of Production department

Merchandisin g Officer

Asst. Merchandise Officer

Supervisors

Workers

FINANCE DEPARTMENT Finance is considered as the lifeblood of every business. Success of any organization depends on the efficient utilization of its financial resources. The main function of the finance department is financial planning i.e. raising and utilization of adequate funds. The finance department of Swathika textiles is headed by Chief Financial Officer (CFO). The CFO is responsible for forecasting financial requirements of the company. Under the CFO there is an Accounts Officer. Other clerks of accounts department come under Accounts Officer. Proper fund management is noted in company finance set up. Hierarchy of finance department is as follows
Chief Financial Officer Accounts Officer

Clerks

The functions and responsibilities of the finance department involves maintaining books of accounts, preparation of profit and loss account and Balance sheet, preparing reports for the sales tax returns, finalizing and bargaining with suppliers, proper planning of funds, checking of financial performance and allotment of funds to various departments. Proper books of accounts as required by law have always been kept by the company. Bankers: Bank of India Significant accounting policies 1. System of accounting a) The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except case of significant uncertainties. b) Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.
2.

Revenue recognition

Income and expenses are accounted for an accrual basis except for Excise Duty on uncleared finished goods which is accounted for only in clearance of goods. Bills discounting charges, overdue interest to suppliers and payment to electricity board towards arrears which are accounted for on cash basis. 3. Fixed assets Fixed assets are stated at cost less depreciation. All major modifications or additions to fixed assets, which result in increasing the operational efficiency of the assets are capitalized.
4.

Depreciation Depreciation on the assets is provided on Written Down Value (WDV) Method at the rates specified in schedule XIV of the Companies Act, 1956.

5. Inventories Raw materials, packing materials and fuels are valued at cost are determined on weighted average basis. Stores and spare parts are valued at cost. Loose tools and Moulds are valued at residual value. Finished goods are valued at lower the cost of market value. Stock in process is valued at cost.

6. Investments a) Investments are valued at cost of acquisition. b) Investments made by the company are long term nature and hence temporary diminution in value of quoted investments are not considered to be permanent, and accordingly not provided for. 7. Foreign currency transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Current assets and current liabilities are reinstated at year end exchange rates and the profit/ loss so determined and the realized exchange gains and losses are recognized in the profit and loss account. 8. Borrowing costs Interest and other cost in connection with the borrowing of the funds to the extent related/ attributed to the acquisition/construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to revenue. 9. Lease /hire purchase transactions The actual cost of the assets acquired under the hire purchase transactions is capitalized while the annual finance charges are charged to revenue accounts. In respect of assets taken on lease, the value thereof is not capitalized but contracted lease rental are charged to revenue accounts on accrual basis. 10. Revaluation of sales tax

The Company is revaluing the deferred Sales Tax liability at the year end at the discounting rate of 18% p.a. The surplus/deficit if any due to revaluation is charged to revenue accounts.

PERSONNEL AND ADMINISTRATION DEPARTMENT Personnel department is concerned with management of people in an organization in an optimal manner. The department is mainly concerned with problems regarding the developments of staff and labour force of the organization. This department performs a vital role in the personnel and administrational functions of the organization. Here it is headed by the Managing Director. Hierarchy of HR department
Managing Director General Manager Personnel Administrati on Officer

PERSONNEL DIVISION Duties and Responsibilities 1. Recruitment 2. Selection 3. Conducting training programmes 4. Maintaining employee records 5. Promotion and termination of employees.

ADMINISTRATION DIVISION Duties and Responsibilities 1. General administration 2. Maintaining office administration 3. Guest relation 4. Maintaining staff welfare activities 5. Interaction with Government and Non-government institutions

At present there are 200 employees including office staff]s and supervisors in the organization.

Present Employee Strength

Job Cutting master Overlock tailor Flat lock tailor Checking Iron Packing Person 16 35 25 20 7 10 Assistance 4 35 25 10 2 3

Working hours Office time 10 am to 5 pm Normally the working starts at 9 am and ends at 6.30 pm. 10.40 am to 11 will be morning break. 12.30 to 1.30 lunch break and 4.40 to 5 tea break. The working hrs is based on the order for the product. Night shift is also there.

No trade union activities are there in the organization. The main advantage of the company is that it has well trained and skilled workers. Wage composition Basic pay + Fixed Dearness Allowance + Variable Dearness Allowance

Training In Swathika Textiles job training is given to newly recruited workers to mould them as skilled workers. The skilled workers, supervisors or special training instructors assist the newly appointed workers. Training is also given to managers. This includes both on the job training and off the job training. Safety Measures The company gives great importance to safety of employees and provides clean, safety and healthy working environment. The safety policy shows the concern for the employees by the management. Safety policy 1. Swathika Textiles is committed to provide possible safe and healthy working environment for the protection and well being of the employees and the general public by means of safe plant equipment and safety healthy systems of work. 2. Safety and health of all employees are the prime concern of the organization. 3. Company constantly endeavors to impart integrated safety training to each and every one in the organization.

4. Accidents can be avoided if proper care is taken by all the concerned in the organization 5. Each and every one in the work of Swathika Textiles, no matter in what capacity he/she may function must accept responsibility for safety. 6. The organizations commitment to promote safety of employees shall not end where law ends.

Incentives and welfare facilities The major incentives are Bonus, Dearness allowances, Leave with wages and ESI benefits etc. The company also provides canteen facility, Recreation club etc.

Recruitment and Selection The needs of workmen of the various departments are computed by the concerned department and forwarded to Personnel and Administration Department. The recruitment and selection of labour force is conducted in this department. Staff selection is conducted on the basis of test and interview. Vacancies are notified in leading dailies as and when require. The company also uses internal sources of recruitment. In this case whenever vacancy occurs, somebody within the organization is upgraded, transferred or promoted. The company also has a tradition of selecting the relatives of existing workers and also takes employees on the basis of recommendations of the existing workers. Promotion and transfer

Promotion is given on the basis of seniority, merit and suitability. To arrive at such an assessment a test and interview is conducted. Disciplinary Action An employee who is absent regularly without giving letter is first given a show cause notice and then if he is absent again, he will get a first warning. After this, if he still the same absentee he will be suspended and will be terminated. Security section Security section comes under the Personnel and Administration department. The main function of this department is to safe guard all the properties of the company including men, materials and machine. Important functions involve

Maintaining materials incoming register Maintaining materials outgoing register Issue of Gate pass Maintaining visitor register Checking of loads and vehicles Protect the properties of the company The head of this section is the security officer. At present there are two employees working in this section under the security officer.

PURCHASE AND STORES DEPARTMENT The Purchase Manager (here the General Manager is carrying out the function of Purchase Manager) is informed about, the type of materials required in the organization by purchase

order. The purchase order is prepared in triplicate. The original copy is send to the purchase officer, the department maintains the duplicate copy and the third copy is send to the supplier. In the stores department, which is also known as general/inventory store, raw materials ( yarn, buttons, elastic etc) labels, sticker, liquid ammonia, pigment paste, oil etc are stored and dispatched according to demand. FUNCTIONS OF PURCHASE AND STORES DEPARTMENT Purchase department Receiving purchase requisition and Bill of material Purchase requisition is a formal request of purchase and is issued by needy department to purchase department. Bill of material is a complete list of materials and components required for a particular work order.

Finding the supplier Swathika Textiles have already a list of suppliers. The function of the purchase department is to find the best supplier.

Preparation of purchase order After finding a suitable supplier the purchase order is prepared and sent to the supplier. This is prepared in triplicate form.

Follow up of the purchase order to avoid any unnecessary delay in delivery. Receive the Goods Received Note and Goods Inspection Report to make sure that the right type and quantity of materials have been received.

Return the material to the suppliers which are not according to required specification.

Verify the invoice with regard to quantity, price and other relevant particulars and pass it for payment. Send the invoice to the accounting section.

Stores department The materials purchased may not be used at once. There may be time lag between the purchase and usage of materials. For effecting proper stores control there should be a mechanism for storing or up keeping materials during this period. Stores executive manages store. The functions of store executive are:

Determining minimum and maximum stock level. Determining Reorder level and average stock level Determining Economic Order Quantity(EOQ) Classification and codification of materials Maintaining proper store records.

Hierarchy of purchase and stores department

General Manage r

Purchase officer

Stores Executive Store assistant

Co-ordination and Co-operation between purchase manager and stores executive is very essential for the efficient functioning of this department.

QUALITY CONTROL DEPARTMENT Swathika Textile Mill has a full- fledged Quality Assurance Department which follows all the stringent procedures and test applicable for all international standards. The centralized QC team is a team of highly efficient and follows the standards right from yarn to packing to see nothing is missed. The quality programme starts right from yarn to packing. On every step of production the company concentrates on quality, to make sure that all the parameters are followed. The QC team is managed by the QC manager under his strict guidance all the methods to fulfill international standards. Hierarchy of quality control department

Quality control Manager

Quality assuror

Supervisors

Quality policy

Swathika Textiles quality policy is to give total satisfaction to customers through manufacture and supply of quality products. The company ensures that it comply with all the regulatory requirements and commit it selves to continuously improve its performance. The company follows a strict quality control system. Variability in quality is an inevitable feature of industry. Such variability results in reworks, scrap and other wastes and losses. Quality control department is entrusted with the task of minimizing this variability. Quality checking is also done for materials and parts purchased from outside.

Major functions Determine the quality standards Design of the production system, which would be compatible to the achievements of specific quality.

Inspections of raw materials and finished products

Quality assurance

CHAPTER VI

SWOT ANALYSIS

SWOT ANALYSIS STRENGTH The following features possessed by the company act as its strengths. Good product quality Customer satisfaction Raw materials are locally available Management Information System has been installed. Good relationship between management and workers Monetary and Non-monetary benefits are good. Good management and skilled workers Prime location Website is updating regularly Lack of trade union activities. WEAKNESS The company suffers from the following weaknesses. Huge transportation cost Lack of commitment of workers.

 Company concentrated only on exports.

Even though the company has a good communication between departments there is no person to handle the queries in the reception other than in local language. Piece rate system cannot be applied to whole of the workers.

More money is spent to give wages to employees. Lack of Marketing department and sales are only based on orders. Educational qualification of workers.

OPPORTUNITIES Swathika Textiles can make use of following opportunities. More product variety can be introduced If the company is utilizing its full potential, it can extend the market to more foreign countries.

Company can go for diversification. Hence cost can be reduced.

THREATS

Around 3000 Textile Mills are there in Tirupur. In addition to the competition from these Mills, China and Bangladesh is exporting quality products at low cost.

Increased price of raw materials High wages to employees Changing technology

CHAPTER VII

FINDINGS SUGGESTIONS AND CONCLUSION

FINDINGS It is found that, there exists a sound relationship among management and workers. Good management and skilled workers are the strength. Customers are satisfied with Swathika Textiles product.

 Both monetary and non-monetary benefits are given to staffs and workers.

Competition is facing from nearby firms and also from foreign countries such as China and Bangladesh.

Organization structure is good. There are 5 departments in the company which are interdependent. SUGGESTIONS

A good counseling system should be established to take strict disciplinary actions. The workers are getting more freedom. It is found that some of them misuse this freedom in the absence of supervisors.

CONCLUSION From the close study on Swathika Textiles Ltd, it can be stated that the products of the company have gained high influence among the customers and the company can be proud of the quality of the product maintained by them. Obviously the product has attracted market extensively, as they have strived hard to get on with customer satisfaction. The strategic location of the plant in Tirupur helps to get the raw materials easily as well as cheaply. The company works through several functional departments such as Production, Finance, Personnel and Administration, Purchase and Stores and Quality control departments. Each of these departments is properly organized and has well defined authorities and responsibilities. If the company keeps these strengths and develops more scientific method to improve the efficiency in production, there is a scope for further developments in the years to come. The

company aims to export its product to more foreign countries in the coming years. Thus the researcher found that the company can improve the status and can capture the foreign market easily by effectively utilizing the existing resources of the company.

BIBLIOGRAPHY

BIBLIOGRAPHY

Kothari C.R, Research Methodology, Wishwa Prakasham, 1995 Mamoria CB & Gankar S.V, Personnel Management Himalaya Publishing House,2003 Prasad L.M, Organizational Behaviour, Sultan Chand & sons,2002 Chunawalla S.A & Patel D.R, Production and Operations Management, Himalaya Publishing House, 2003 I.M.Pandey, Financial Management, Vikas Publishing House (Pvt) Ltd, 2001 The Textile Asian Journal Textile Association Journal Textile India Progress Journal Textile Management WEBSITES www.swathikatextile.com www.google.com www.fibre2fashion.com www.expresstextile.com www.domain-b.com www.iloveindia.com www.economywatch.com