Chapter-1

1.1) INTRODUCTION

As the technology advances each and every sector has been rapidly developed
like a Government Sector, Engineering Sector, etc. then how can the READYMADE
GARMENT MANUFACTURING become backward. Each and every person wants
to look like a hero and heroine. As the fashion takes place, they want to wear more
fashionable cloths.

In movies actor and actresses are wearing different types of dresses and sarries.
Every person wants to look like them. With the increase in fashion every person want
to wear that type of cloths. Some people purchase cloth material and visit at the tailor
shop for stitching the dresses they like. But it takes too much time. Fashion is growing
up day to day. Readymade Garment Shops are opened. People are satisfied from
Readymade Garment Shop and people also save their valuable time. Readymade
Garment Manufacturing provides better design dresses to customers.

With the change in the trend in fashion market Readymade Garment have
become very popular. Most of the people used to wear Readymade Garment Shop have
become very popular. Most of the people used to wear Readymade Garment in case of
time saving activity. Especially ladies have taken very much interest in new designs
and fashionable garments.

New fashion designers made new trend designs to attract customers and mostly
to female customers. They like to wear new fashion cloths or new look of garment.
There are various types of dresses which are very reasonable to general or ordinary
people.

In recent years many people are interested in wearing Readymade cloths and specially
ladies have most interest in that type of cloths so when the researcher is a lady it takes
too much interest for the topic. So that researcher selected the subject Readymade
Garment Shop [Ladies Garment Shop] as the study of the project.

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 1.2) BACKGROUND OF THE PROBLEM OF TASK UNDERTAKEN

It is an opportunity to do the summer internship in Custom Apparel which is a

manufacturer & of Knitted fabric and readymade garments. Project on Export house is

uncommon & that on an Apparel Export House is rare.

As we know, exporting is complex and challenging activity in todays dynamic world

environment as it involves the performance of operations that determine existing and

potential demand in a market. Learning the step-by-step processes & procedures to be

followed in an export contract is a crucial activity in export procedure.

So, selecting a project on export procedure & documentation is an obvious & important

decision.

1.3) OBJECTIVE OF STUDY

Summer training project goal is to help students become effective managers in todays
competitive, global environment. The fundamental unit of work in all organizations is
processes; the focus of the project is on the different marketing processes in the field of
marketing of the organization. Emphasis is given on discovering the challenge of both
managing and understanding the relation of activities throughout the organization with, and
how the marketing functions fits into the organization. A project cum training is an
essential part of BBA curriculum. This study was conducted on Custom Apparel.

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Specific Objective:
(1) To determine the factors, which persuade the retailer and agent for sale of our
products
(2) To find out the companys position in the textile market
(3) To find out the market share of organization textile against its competitors
(4) To get the analysis of current market trend, demand forecast
(5) To study the impact of market activation on consumers and finding out the impact of
marketing activation material in general trade through running various shorts of promos at
the time of any new product launch and scheme.
(6) To study how to launch any new product and scheme in the competitive market.
(7) To understand the consumer behavior.
(8) To understand the fundamental application of textile industry at the time of
promotional activity of products.
(9) To study the evolution, function, importance and legal frame work of the Indian textile
Industry.
(10) To make sustainable strategy to ensure companies sales growth.

1.4) Scope of the Study

The aim of this project report is to unfold stepwise all complexities involved in the export

Business right from receiving an export order to final realization of export proceeds. It

gives a detail idea of how different departments in an Apparel export house work in

synchronization so that an export order is processed.

This project would be helpful to fulfill many loopholes of manufacturing, processing

and

analyzing the export order as well as documentation.

The study has aimed at finding out the current status of the Cloth Manufacturing sector in
Delhi (India) in relation to its production efficiency and capabilities with a view to speed

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up modernisation of the cloth manufacturing. In order to get primary information on the
raw material supply as to its quality and availability, technology level as evidenced from
the age/type of textile, their production capacity, technology category, adaptability to the
changing market requirements, this study has covered full-fledged textile manufacturers as
well as job work units.

As the textile industry has got a wider dispersal in Delhi, such primary data collection had
representation from most of the cluster centres in the state. In addition to the data at the
level of primary cloth manufacturing units, a representative sample of textile fabric
manufacturers with operational textile units and also without looms located in major
manufacturing centres like Coimbatore, Salem, Erode, Tripura, Madurai and Chennai have
been covered in order to get the required information on the industrys perspective and
problems inhibiting modernisation. In addition to the above two segments, additional inputs
have been gathered from local governmental and non-governmental instituti

Besides it so far is Indian textile is concern worldwide it is the one of the largest in the
world with a massive raw material and textiles manufacturing base. Our economy is largely
dependent on the textile manufacturing and trade in addition to other major industries.
About 27% of the foreign exchange earnings are on account of export of textiles and
clothing alone. The textiles and clothing sector contributes about 14% to the industrial
production and 3% to the gross domestic product of the country. Around 8% of the total
excise revenue collection is contributed by the textile industry. So much so, the textile
industry accounts for as large as 21% of the total employment generated in the economy.
Around 35 million people are directly employed in the textile manufacturing activities.
Indirect employment including the manpower engaged in agricultural based raw-material
production like cotton and related trade and handling could be stated to be around another
60 million. This industry is poised to meet the increased global competition in the post
2005 trade regime under WTO. The consequent effects of unleashing a flood of imported
textiles into India and also making the export markets far more competitive are being felt
from now onwards. The textile industry in India has a strong multi-fibre raw material
production base, vast pool of skilled personnel, entrepreneurial talent, good export potential
and low import content. Production systems are flexible, dynamic and vibrant. However,
the industrys above strengths get substantially diluted on account of production process
disadvantages in certain areas in terms of technology and supply-chain management
deficiencies. It is high time that adequate corrective measures were taken to prepare a
technology savvy industry to meet the challenges ahead.

The ongoing globalisation process is replete with threats from our competitors,
particularly the export-led economies like China to de-stabilise our export and local
markets. At the same time, one should also realise that it offers unlimited opportunities. In
order to withstand the competition both in international and domestic markets and
accelerate our export growth, it is imperative to identify the strengths and weaknesses of
the textile industry hindering its growth. Considering the inherent strengths of this industry
in terms of a strong raw material base, skilled manpower and low wage costs, this industry
has immense potential in the globalised textile economy.

However, given the nature and extent of the fragmentation and technology obsolescence in

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the decentralised sector, it calls for a focused action plan and programs to accelerate and
sustain the growth level of the different segments of the industry. In the above background,
the Government of India as well as the important state governments having a significant
presence of the textile industry reviewed the whole spectrum of textile industry. Based on
the above review and discussions, appropriate road-maps have been drawn up for the
development and promotion of all the sectors of the textile industry from cotton to finished
products. The National Textile Policy 2000 has envisaged a foreign exchange earning to the
tune of US $ 50 billion by the year 2010.

Besides, many important measures have been spelt out in the policy document. Before
formulating the textile policy, the Government of India had set up a Committee under the
chairmanship of Mr. Sathyam to examine and draw up action points on various sectors of
the textile industry. Accordingly, the committee in its report had outlined critical issues for
development and growth.

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 1.5) Introduction of the Company

1.5.1) About Custom Apparel

Established in 2008

An Apparel manufacturing House of India

Reputed for excellent Product Development and Design capability

Company promoted by Mr. Harish Aggarwal

A manufacturer & exporter of Knitted fabric and Knitted garments

Custom Apparel designs, manufactures and sells a wide range of outer wear

T shirts, sweat shirts, polo shirts, etc. for top end customers in the

international market

Custom Apparel has four factories in DELHI

It employs about 100 people including contract labour

1.5.2) Vision and Mission Statement

Vision Statement
The vision of the company is to become a leading manufacturer and exporter of apparel by
continuously excelling in quality, services, and customer satisfaction using the best
technology, processes and people We want to become the first choice of buyers in all
around .

Mission Statement
To go beyond the customers expectation and desire in quality, Delivery, and cost through
permanent improvement and customer relations.

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1.5.3) LOCATION OF THE PLANTS

All Locations are within 30 KM from New Delhi, and located within 10-12 km

from each other,facilitating easy movement of goods within various plan.

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1.6) SOCIAL CRITERIA OF STUDY

India is a brand using country where a large percentage of the population is in the younger
age brackets and they are indulge in wearing brands. We believe that these young people
shall be the backbone of the nation in the coming years. It is therefore our intention to
focus on socially underprivileged children in order to provide them with a chance to have
a better life tomorrow.

We shall dedicate resources commensurate with our business requirements to community

activities that work towards improving the future of socially underprivileged children. We
shall also use our assets and our expertise in the retail business to further the cause of such
communities.

Were it not for the active participation of our customers, our social policy might never
have been activated. We are truly grateful for their generosity in supporting our socially
conscious endeavors.

Lend a hand

Funds collected will be donated to NGOs to help bringing smiles to the faces of
underprivileged children.

Angels Tree Purchase a Silver Star or a Gold Star during our Christmas Promotion,
and decorate our Angels Tree. The money collected will be donated to various NGOs
across the country working with underprivileged children.

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 Chapter-2 Research Methodology

2.1 MEANING OF THE PROJECT:

A project is a scientific and systematic study of a real problem faced by and
organization with an object to resolve it with the application of management concepts
and skills. The study can deal with a small or a big problem faced by the enterprise in a
discipline of management like finance, marketing, production, personnel. The essential
requirement of a project is that it should entail scientific collection, analysis and
interpretation of data leading to valid conclusion. Form the study attempting to
diagnose and identify managerial problems and at the same time providing him an
exposure to the real business world. Form the organization point of view it is a sort of
feedback of its policies and plans which may facilitate the decision making.

A project is a kind of action oriented research aiming at the detection

managerial problem of a business organization and inviting the efforts to solve those. It
provides a scientific basis or managerial decision and actions.

Definition
A project is scientific and systematic study of real issue or a problem with the
intention of resolving the problem by application of management concept and skill.

A project work is a scientifically evolved work plan devised to achieve a

specific objective within a specified period of time.

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2.2 METHODOLOGY OF THE PROJECT

A. Project methodology

A project methodology tells you what you have to do, to manage your projects from
start to finish. It describes every step in which tasks to complete, when and how.
Whether you're an expert or a novice, it helps you complete tasks faster than before.

Method refers to the procedure for obtaining knowledge based on empirical

observations and logical reasoning. Methodology refers to the logic of scientific
investigation. It is a procedure of empirical investigation. It is not concerned with build
of knowledge but how knowledge is built, i.e. how facts are collected classified and
analyzed.

B. Methods of research

Following are the main types or method of research which are generally used by
any researcher

a. Case study method

b. Historical method
c. Experimental metho
d. Survey method.

a) case study method

Case study is a recent development in research. Case study is a method of

exploring and analyzing the life of a social unit, a person, a family, institution, cultural
group or even an entire community.

b) Historical method

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 This method investigates the past events and phenomena on the basis of
historical documents and evidences. It seeks to find explanation of questions of current
interest by an intensive study of past.
c) Experimental method

In this method the researcher studies the effect of independent variable on

dependent variable by artificially controlling the effect of rest of the variables. It is
conducted in fundamental sciences like physics, chemistry, biology, nuclear science,
etc. through laboratory experiments.

d) Survey method
the project life cycle in depth, so you know exactly
The survey is a method of analysis in scientific and orderly form for defined
purpose of social situation of problem or population.

Above explained are the basis methods used for most of the researcher. In the
project like readymade garment shop researcher is interested to use the survey method
because the survey method is a technique of investigation by a direct observation of a
phenomena or by systematic gathering of data from population. It involves a
systematic and comprehensive study of a particular group, community, or organization,
etc. with a view to analyzed a social problem and presentation of recommendation for
its solutions.

The first, second and third method both have some special conditions so the
researcher cannot apply it to each and every research. So it is better to use survey
method for deep study of our subject.

In survey method a techniques of investigation by direct observation is used.

But we can also use various publications, reference books, magazines, articles, etc. to
collect data. So we select the survey method for our research study.

2.3 DATA COLLECTION

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 A project work is totally depends on collection of data, or collecting all relevant
information which are necessary for project work. The collection of data means a
purposive gathering of information relevant to the subject matter of investigation from
the units of population under investigation. Collection of data makes the most
important step of any research enquiry or statistical enquiry. If data collected is not
correct, reliable, relevant, and appropriate, one can not obtain valid and useful results
from the enquiry.

Collection of data requires common sense, experience, and knowledge. One

should be alert, tactful, cautious and sensitive while collecting data for any statistical
enquiry. In the preparation of this project report the data is collected form above
sources.

A. Primary sources
a. Observation
b. Interview
c. Questionnaire
B. Secondary sources

d. Magazines
e. Books
f. Library
g. Internet

2.4 OBJECTIVES OF THE STUDY

Followings are the main objects of the study

I. To study the scope of financial approach concerning to the cloth business.

II. To find out the potential benefits and opportunities lie in this business.
III. To study the information about various suppliers of the product.
IV. To study the management policy or formulation of production policy, marketing,
storing, etc.
V. To make the study of marketing skills.
VI. To evaluate profitability
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 VII. To study the management of capital and other sources.
VIII. To acquire useful guidelines to venture in cloth market.

2.5 LIMITATIONS OF THE STUDY

I. This project report mainly focused on ladies dress or other cloths trading,
which is just a part of cloth trading. Other different kinds of trades under
clothing sector are not considered.
II. A new firm may find it difficult to enter in cloth trading as the already
established firms may give them a tough competition.
III. The scope of study is limited to marketing profile of Readymade Garments.
IV. The firm needs to maintain varieties of stock, which ultimately demanded for huge
investment

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 CHAPTER-3

Objective of the project

2.1) To understand the Apparel Business Process

2.2) To understand the working of various departments of C u s t o m

A p p a r e l , contributing towards processing of an export order.

2.3) To understand the role of Merchandisers in C u s t o m A p p a r e l

2.4) To study the Export Documentation in C u s t o m

Apparel.

a) Pre Shipment procedure

b) Post Shipment procedure

2.1) To understand the Apparel Business Process

The textile and apparel supply chain accounts for a good share in terms of number of

companies and people employed. The apparel industry is divided into four main

segments. At the top of the supply chain, there are fibre (raw material) producers using

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either natural or synthetic materials. Raw fibre is spun, woven or knitted into fabric by

second segment. The third segment of the supply chain is the apparel manufacturer

which converts fabric into garment with many processes involved. The final segment

is the retailers who are responsible for making apparels available to consumers.

The T angle of the apparel supply chain shows how buyer, suppliers and garment

manufacturer are linked to each other. There are two sides of the T i.e. left and right.

The left side is called the buyer to the manufacturer and the right side is called the

suppliers to manufacturer. The two horizontal sides are linked to each other through

the vertical side i.e. the buyer and suppliers are linked through apparel
manufacturer.

The T angle illustrates how information flows from the buyer to the apparel

manufacturer. The information normally, sketches of the garment given by the buyer,

are studied by the manufacturer and accordingly list of raw materials required is

made. The different swatch (standard for type of yarn, colour of the yarn and

piece of accessories) are sent to different suppliers for development. The supplier

develops and sends it to manufacturer and which is forwarded to buyer. Once

approved by buyer, the orders are placed with the suppliers with approved

samples. When the raw materials are received as per the specifications given to the

supplier, in-house manufacturing starts with the production. The different process

of manufacturing results in the final garment product which is finally dispatched

to the Buyer. The

Buyer then retails the same through stores to the ultimate

consumers.

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Figure 1: The T angle of the Apparel Supply Chain

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2.1.1) Description of the Buyer Side of the Apparel Supply Chain

The buyer side is normally involved with designing of the garment, production

of samples, order collection, apparel retail.

Apparel Design

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Designing of Apparel is either done in-house or contracted to design companies. The

first step in designing is the analysis of the consumer which the Company is targeting.

The apparel design is influenced by various parameters like other designer collection

presented in the fashion cities of the world, fashion reviews from earlier seasons,

fashion magazine also plays an important input for the design efforts and most

important is the feedback gained from the sales of the similar products that were

developed earlier.

Prototype garments are made for design approval which consumes considerable

amount of time.

Production of samples and order collection

The next step after the design in apparel supply chain is the production of the samples.

Once the designs are developed, decisions regarding the fabric like cotton or polyester

and quantity etc are made. Based on fabric and quantity decided, decisions related to

country and manufacturers are made. Once decision is made, developed designs are

sent to different manufacturers and are asked to develop proto samples (the stage

brings design from paper to cloth for design appearance). Normally, during proto stage

manufacturer figure stands between 5 and 8. Once proto are developed, number of

manufacturers is reduced to 2 to 3 depending on the total quantity of the article and

also on selected manufacturer production capacity or volumes. The order quantities

are placed to different manufacturers and manufacturer is asked to develop size-sets

(alternate sizes of the garment are developed example S: Small, L: Large, XXL: Extra

Large). Once size-set is approved, sale samples (samples developed for

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 Advertising and see the market response towards the article) are made. Finally, with

everything in place two identical pieces are developed one for the buyer and other for

the manufacturer called as sealer (sealer sample is identification or standard for

production). This sample is stamped by the buyers and the manufacturer can proceed

with the production.

Apparel
Retail

Apparel products are made available to consumers in a variety of retail outlets.

Specialty stores offer a limited range of apparel products and accessories

specialising in a specific market segment. Apparel sales also take place through

wholesalers or mass merchandisers such as Wal-Mart, Kmart and Target. These

retailers offer a variety of hard and soft goods in addition to apparel. Departmental

stores like Macys, Nordstrom offer a large number of national brands in both hard

and soft goods categories. Off-price stores, such as Marshalls and T.J.Maxx buy

excess stock of designer- label and branded apparel from retailers and are able to

offer lower prices but with incomplete assortments. The apparel sale is also shared by

mail order companies, e-tailers through internet, and factory outlets etc.

2.1.2) Description of the Supplier Side of the Apparel Supply Chain

The suppliers in the apparel manufacturing are quite diversified. It involves

suppliers of different raw materials such as fibre and yarn producers, fabric

manufacturers and other raw-materials.

Fibre and Yarn Production

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 Fibres are categorised into two groups: natural and man-made. Natural fibre includes

plant fibres such as cotton, linen, jute etc and animal fibre such as wool.

Synthetic
Fibers include nylon, polyester, acrylic etc. Synthetic fibre production usually requires

significant capital and knowledge. Natural and synthetic fibres of short lengths are

converted into yarn by spinners, throwsters and texturizers. Different types of fibres

can also be blended together to produce yarn such as grindle etc.

2.1.3) Description of the Manufacturer Side of the Apparel Supply Chain

Fabric production

This segment of supply chain transforms the yarn into fabric by different processes

such as weaving, knitting a non-woven process. In a weaving process, yarns

are looped together lengthwise and width wise at right angles. Grey Yarn may be

woven by a simple procedure to produce grey fabric and which are then dyed for a

specific colour. Instead, dyed yarns may also be woven but not dyed. In knitting,

yarn is interloped by latched and spring needles i.e. two different loops are mingled

together with needle adjustment.

Once the approvals regarding the raw-material are made by the buyer, the

manufacturer can proceed with the production.

Apparel Production

The process proceeds once the fabric is produced; it is either dyed or washed. The

dyed (coloured) yarn fabric is washed and grey fabric is dyed into a specific colour.

After dyeing or washing, fabric is finished by removing water in the tumbler and

later pressed in stented which also maintains width of the fabric. Now the fabric is

ready for garmentising i.e. it is ready to be cut and stitched into the garment.

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Garmentising starts with the design of the garment to be made (usually on the paper

called specs).

Patterns (usually made up of thicker and stronger paper) are made from the
design

Which is then used to cut the fabric (cutting usually happens in the form of layers).

An efficient layout of the patterns on the layers of fabric is crucial for reducing

the wasted material.

CAD systems are used for pattern layout and are integrated together with cutting

systems. In apparel manufacturing, all the stages are labour intensive as they are not

suitable for any kind of automation. In the stitching section, garment is usually

assembled using the progressive bundle system (PBS). In PBS, the work is delivered

to individual work stations from the cutting department in bundles. Sewing machine

operators then process or sew them in batches i.e. first few are operation are joining

the different parts together and then further amendments related to design are carried

out. The supervisors direct and balance the line activities and check the quality. This

involves large work in progress (WIP) inventories and minimal flexibility. For faster

apparel production, use of unit production system which reduces the buffer sizes

between the operations or modular assembly systems and allows a small group of

sewing operators to assemble the entire garment.

Finishing, Packaging and Dispatch of Apparel

Garments produced are labelled, packaged and usually shipped to a warehouse. The

garments are then shipped to the retailers warehouse. In an effort to reduce time from

placement of the product order to the consumers purchase of the apparel, several

practices are gaining popularity. There is increased automation and use of electronic

processing in the warehouses of both manufacturers and retailers.

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2.2) To understand the working of various departments of SPL Industries Ltd

contributing towards processing of an export order.

2.2.1) Manufacturing Process and Production

Figure 2: Fabric Process Flow Chart

Testing of Yarns
Count, knit ability, 100% fabric
wash ability, spirality, Quality check
strength, shade (if yarn
dyed)

KNITTING Trial Batch

Yarn Bulk Knitting
st
of 1 lot of fabric in Preparation
Inhouse
Dyeing.

Recipe
Knit Set formulation
Approval (automatic
color kitchen)

WAREHOUSE FINISHING Dyeing Process

100 % Fabric Shade Color

Quality Checking Fastness Approval

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 Figure 3: Garment Process Flow Chart

Fabric Audit Batch wise

Physical Parameters, Trims
Matching

WAREHOUSE Automatic Fabric CUTTING Issue to

Layering Batch Wise Stitching

CAD marker - As per 100% Panel

approved garment Inspection

100% Needle 100% Garment

SHIPMENT

Detection Checking

PACKING FINISHING WASHING STITCHING

100% Garment
Final Checking
Audit
The above two diagrams show detailed picture of Yamuna internationals Apparel

Manufacturing and Supply Chain. The manufacturer supply chain starts when yarn is

in-house and ends when garment is produced and is ready for dispatch. The entire

process is divided into two segments i.e. the process and the production. The process

involves yarn inspection, knitting, dyeing or washing and finishing. In the process, the

yarn is converted to fabric then it is either dyed or washed and finally finished. The

production involves fabric cutting, stitching, and garment being finished and finally

dispatched.

2.2.2) Yamuna international : Departments

Functions and Operations

Company mainly deals in two segments of the apparel supply chain i.e. one

manufacturing of fabric and other manufacturing of garment. These two segments are

two different processes but are very much linked in the supply chain. The Company

has different departments each having specified functions and responsibilities.

Description of each department will follow in respect to how they occur in supply

chain:

Yarn Department

Yarn (thread) is one of the most important raw-materials for the garment

manufacturing. Company purchases yarn from other spinning mills across the country

and also sometimes from other countries such as China and Italy. Yarn department is

responsible for placing order of yarn to the mills. Their responsibility is to make sure

yarn is ordered from right supplier, delivered in right time with desired quality and

maintain stock listing of yarn. Yarn department is also responsible for checking the

quality i.e. strength, colour and quantity of the yarn delivered. The decision regarding
The yarn quantity, quality and strength is decided by PPC i.e. production,

planning and control department. PPC places the order one month in advance.

Knitting Department

Knitting department is responsible for producing knitted fabric i.e. fabric from yarn.

For fabric production, two types of machines are normally used i.e. circular knitting

machine and flat knitting machine. Knitting department receives orders from PPC

stating article or style number and quantity of fabric required. The knitting

department makes the production planning for all knitting machines based on request

from PPC and also calculates and orders required yarn from the yarn department.

Planning is usually done for every week.

Washing and Dyeing Department

The department is responsible for two different stages in garment manufacturing. For

grey (not coloured) fabric, department is responsible for colouration of fabric and for

dyed (coloured) fabric, department is responsible for washing. The process of dyeing

is time consuming and as different colour checks are required. The department

receives order from the PPC stating article and quantity required. The department

makes the production plan for the dyeing and the washing machine based on order

from the PPC and also sends request to knitting department for the dispatch of the

fabric. Planning is done on weekly basis.

Finishing Department

The department is responsible for finishing of the fabric with a proper procedure so

that it is ready for garment production. Whether the fabric is dyed or washed, it

follows the same process in the finishing department. Once the fabric is washed or
Dyed, it needs to be tumbled in tumbler (sort of big washing machine) responsible for

removing water and maintain the fabric width and shrinkage. After which fabric is

dried in a Stenter (dryer) and packed in layer and is ready for garment production.

The finishing departments receive orders from PPC again stating the article or style

number and the quantity.

The department sends the fabric to the mentioned cutting section.

Cutting Department

The department is responsible for cutting of the fabric into different parts of the

garment. This department is mainly responsible for cutting and avoiding wastage. To

ensure minimum wastage, proper set of tools such as CAD and others are used in the

process. The PPC by using CAD and other tools issues article average with a draft or

diagram of how different patterns should be placed on to the layer. The cutting

department based on their experience and expertise either accepts the proposed

average or sometimes gives a better average by few percent. The department makes

production plan for all cutting stations based on article or style requested. This also

works on weekly basis. Once fabric is cut different parts of the same garment are

bundled together.

Stitching Department

The department is responsible for stitching different parts of garment together. The

process takes place in the assembly line system. The assembly line system is the set

of many different stitching machines each for a specific purpose. These machines are

arranged in an orderly fashion depending on how different parts of garment should be

attached. Assembly line method is used for large production. PPC decides on the
article or style to be produced with quantity. The stitching department makes

necessary production planning i.e. time line in accordance with each article. The

stitching process is the most time consuming and labour intensive process in the

entire garment production. The planning is done weekly.

Finishing and Packaging Department

This is final stage before the garment is ready to be shipped. As the garment is

already finished, it requires a series of quality checks. The garment goes through the

quality checks like colour test, washing test, stitching test etc. After which it is steam

pressed, labelled, packed into garment bags and finally, put into the cartons. Once all

cartons are packed and labelled, external quality check takes place and goods are

shipped. The PPC department gives the details of the PO to be finished, packed and

dispatched.

Production Planning and Control (PPC) Department

The department is responsible for making plans for the entire organization i.e. all the

departments. PPC being in the centre of all departments also controls their

functionality. The PPC sends production plan to different departments on weekly

basis and daily for any amendments. The PPC keeps check on different departments

by requesting planning and production reports for each day. PPC only receives orders

from the Management. With order quantity and dispatch date, it does the planning for

product cycle. The top management is in continuous contact with PPC.

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Figure 4: The PPC link with other departments

TOP
MANAGEMENT

Yarn Knitting
Department Department

Finishing, Dyeing &

Packing & Washing
Dispatch Department
Production
Planning &
Control

Stitching
Department Merchandising
Department

Cutting Finance &

Department Accounting
Department
2.3) To understand the role of Merchandisers in YAMUNA INTERNATIONAL

2.3.1) Merchandising Department

The department acts as a liaison between the buyer and manufacturing division. On

one hand, the department is responsible for notifying changes in the product to the

PPC and also to make sure that article is produced as per planning by the PPC and

within dispatch time limits. On the other hand, it has to continually update buyer with

planning and production status. The department takes care of all correspondence with

buyer and is responsible for communicating it to PPC. The department also takes care

of necessary sampling such as proto, size set and final which is necessary prior to

production. (Plan Outline for Order Completion See Annexure 3)

2.3.2) Marketing

Design

Designing is an integral part of the marketing process. The Companys ability to keep

abreast of the dynamic fashion trends enables it to showcase its capabilities and

understanding the buyers requirements. Being an export oriented apparel

manufacturer, tracking the changing fashion trends across different geographies for

various end customers is critical for success. The Company has a well equipped

design studio. YAMUNA INTERNATIONAL employs a team of designers who

design and develop the products as per the requirements of the customers. They

regularly visit International fairs like PITTI FILATI, EXPOFIL and PREMIERE

VISION. These fairs determine the latest trends in yarn / fabric and colours for the

following season. The

Design team regularly interacts with the customers which helps it to keep pace
with

31 | P a g e
their expectations. Besides, the Company has opened a Product Development and

Sales office at US.

The Apparel trade has four basic seasons;

Spring

Summer

Fall/Autumn

Holiday/Winter

2.3.3) Merchandising

The Companys marketing team endeavours to enhance its share of the business with

existing customers as well as expand the customer base. The Company receives orders

from customers by:

Growth in business from existing customers

New customers developed through cold calls, trade fair meetings

Walk-in customers.

The Companys experienced marketing team has been able to devise different

strategies to suit the needs of both existing & new buyers. For the existing buyers, the

Companys prime focus is to expand the product base and enhance volumes. By

leveraging the long standing relationships with the buyers, the Company strives to be a

preferred partner to the buyers. For the new buyers, based on the understanding of

their product range and brand identity / customer identity, the Company presents to

them the entire product range. This gives them a good idea of areas of the Companys

expertise and capabilities.

32 | P a g e
Sometimes the buyers come to YAMUNA INTERNATIONAL with their thoughts on

designs, where they offer their suggestion on modifications. In case where they come

to YAMUNA INTERNATIONAL with a predetermined design requirement, they also

try to add value by suggesting modifications to enhance functionalities or appeal, or

to reduce costs while retaining the existing design.YAMUNA INTERNATIONALs

designers along with the sampling department provide the client with prototypes,

which undergo various alterations till the client, finalizes the design. Once the buyer

finalizes a particular style it is translated into samples as quickly as possible because

the entire seasons business depends on timely delivery of samples. The costing

exercise is done concurrently at this stage.YIs manufacturing scale and efficiency and

global sourcing ability enables YAMUNA INTERNATIONAL to compete with

international vendors effectively. This is proven by the growth of the Company in

non-quota categories, where competition has already been open without any quota

related barriers. Quality and ability to deliver the required products on time and

competitive pricing enables to enhance share with customers. The merchandising

teams are to service the requirements of different customers. On receipt of the enquiry,

the merchandiser coordinates with PPC to get an estimate of the raw material

consumption, likely suppliers and costs, accessories as well as the conversion efforts.

Based on this, the costing sheet is prepared. Modifications are also suggested on

apparel design or engineering, or fabric to try and bring the cost to the buyer within

their required range. The price setting process thus becomes a collaborative effort with

Companys customers instead of just a negotiation process, with both the Company
33 | P a g e
 and buyer working together to meet a common objective. Therefore, whenever a

prospective buyer places his requirement with the company, company can work out an

optimalprice-quality combination for him through permutation and combination of

quality & source of raw materials, along with design.

2.4) To understand the Export Procedure in YAMUNA INTRNATIONAL

It is essential that a person engaged in international trade be aware of the various

procedures involved. The business of exports is heavily document-oriented & one

must get acquainted with the entire procedure. Failure to comply with documentary

requirement may lead to financial loss.

2.4.1) Pre-Shipment Procedure

On receiving the requisition & purchase order from merchant, documentation

department issues an invoice. Two invoices are prepared i.e. commercial invoice

& custom invoice. Commercial invoice is prepared for the buyer & Custom

invoice is prepared for the Custom authorities of both the countries.

Packing list is prepared which details the goods being shipped.

GSP certificate is prepared if the consignment is exported to EU or countries

mentioned in the GSP list.

Buying house inspects the goods & issues an inspection certificate.

Certificate of origin is also issued and attached, if required.

Following documents are given to Customs for their reference:

Custom Invoice

34 | P a g e
 Packing list

IEC certificate

Purchase Order or L/C, if required.

Custom annexure

On receipt of above documents, customs will issue clearance certificate.

After custom clearance a set of documents with custom clearance receipt are sent

along with the consignment to the forwarder. Forwarder books the shipment & as

per the size of the cartons calculates CBM & decides which container to be used.

Following documents are sent to buying house for their reference, as per buyers

requirement:

Invoice

Packing List

GSP (if exports to Europe)

Certificate of Origin (if required)

Wearing Apparel sheet

A copy of FCR/ Airway Bill/ Bill of Lading

Buying house then intimates the buyer about the shipment & gives the details

regarding it. Buying house will send a set of these documents to the buyer.

Buyer collects the consignment from the destination port by showing the following

documents:

o Invoice

35 | P a g e
 o Packing List

o Bill of lading/ FCR/ Airway Bill

On shipment of goods, exporter will send the documents to the importers bank.

2.4.2) Post-Shipment Procedure

A foreign buyer will make the payment in two ways:

TT ( telegraphic transfer) i.e. Wire Transfer (Advance payment, as per

the clause 50% advance & remaining 50% on shipment)

Letter of Credit

If the payment terms are a confirmed L/C then the payment will be made by the

foreign bank on receiving the following documents:

Invoice

Packing list

B/L

Any other required by the buyer or the country of import.

The payment terms can be:

At Sight

Within 15 days from Bill of Lading or Airway Bill date.

Within 30 days from Bill of Lading or Airway Bill date.

Within 60 days from Bill of Lading or Airway Bill date.

36 | P a g e
 Within 90 days from Bill of Lading or Airway Bill date.

After shipment, exporter sends the documents to the buyers bank for payment. As

the buyers bank receive the documents it will confirm with the buyer for release

of payment. On confirmation, it will make the payment in the foreign currency.

The transaction will be Bank to Bank.

.The domestic branch will credit the exporters account, as against the respective

purchase order or invoice, in Indian rupees by converting the foreign currency as

per the current bank rate.

If the payment is through wire transfer, the payment will be made as per the terms

agreed by the exporter (Advance payment, as per the clause 50% advance &

remaining 50% on shipment).

2.4.3) Export Documents: An export trade transaction distinguishes itself from a

domestic trade transaction in more than one way. One of the most significant variations

between the two arises on account of the much more intensive documentation work. The

documents mentioned in the pre & post shipment procedure are discussed below:

1. Invoice: It is prepared by an exporter & sent to the importer for necessary

acceptance. When the buyer is ready to purchase the goods, he will request for an

invoice. Invoice are of 3 types:

a. Commercial invoice: It is a document issued by the seller of goods to the

buyer raising his claim for the value of goods described therein, it

37 | P a g e
 indicates description of goods, quantity, value agreed per unit & total

value to be paid. Normally, the invoice is prepared first, & several other

documents are then prepared by deriving information from the invoice.

(See Annexure 4)

b. Consular invoice: It is certification by a consul or Government official

covering an international shipment of goods. It ensures that exporters

trade papers are in order & the goods being shipped do not violate any law

or trade restrictions.

c. Customs invoice: It is an invoice made on specified format for the

Custom officials to determine the value etc. as prescribed by the

authorities of the importing country. (See Annexure 5)

2. Packing list: It shows the details of goods contained in each parcel / shipment.

Considerably more detailed and informative than a standard domestic packing list, it

itemizes the material in each individual package and indicates the type of package,

such as a box, crate, drum or carton. Both commercial stationers and freight

forwarders carry packing list forms. (See Annexure 6)

3. Certificate of Inspection: It is a type of document describing the condition of

goods and confirming that they have been inspected. It is required by some

purchasers and countries in order to attest to the specifications of the goods shipped.

This is usually performed by a third party and often obtained from independent

38 | P a g e
testing organizations. (See Annexure 7)

4. Certificate of Origin: Importers in several countries require a certificate of origin

without which clearance to import is refused. The certificate of origin states that the

goods exported are originally manufactured in the country whose name is mentioned

in the certificate. Certificate of origin is required when: - (See Annexure 8)

The goods produced in a particular country are subject to preferential tariff

rates in the foreign market at the time importation.

The goods produced in a particular country are banned for import in the

foreign market.

5. GSP: It is Generalized System of Preference. It certifies that the goods being

exported have originated/ been manufactured in a particular country. It is mainly

Useful for taking advantage of preferential duty concession, if available. It is

applicable in countries forming European Union. (See Annexure 9)

6. IEC Certificate: It is an Import-Export Code Certificate issued by DGFT,

Ministry of Commerce, Government of India. It is a 10 digit code number. No

exports or imports will be effected without the IEC code. It is mandatory for every

exporter. (See Annexure 1)

7. Wearing Apparel Sheet: It is like a check list which gives the detail regarding the

content & design of the garment packed. (See Annexure 10)

8. Bill of Lading: The bill of lading is a document issued by the shipping company or

its agent acknowledging the receipt of goods on board the vessel, and undertaking
39 | P a g e
 to deliver the goods in the like order and condition as received, to the consignee or

his order, provided the freight and other charges as specified in the bill have been

duly paid. It is also a document of title to the goods and as such, is freely

transferable by endorsement and delivery.

9. Airway Bill: An airway bill, also called an air consignment note, is a receipt issued

by an airline for the carriage of goods. As each shipping company has its own bill

of lading, so each airline has its own airway bill. Airway Bill or Air Consignment

Note is not treated as a document of title and is not issued in negotiable form.

10. Mate's Receipt: Mate's receipt is a receipt issued by the Commanding Officer of

the ship when the cargo is loaded on the ship. The mate's receipt is a prima facie

evidence that goods are loaded in the vessel. The mate's receipt is first handed over to

the Port Trust Authorities. After making payment of all port dues, the exporter or his

Agents collects the mate's receipt from the Port Trust Authorities. The mate's receipt

is freely transferable. It must be handed over to the shipping company in order to get

the bill of lading. Bill of lading is prepared on the basis of the mate's receipt.

(See Annexure 11)

11. Shipping Bill: Shipping bill is the main customs document, required by the

customs authorities for granting permission for the shipment of goods. The cargo is

moved inside the dock area only after the shipping bill is duly stamped, i.e. certified

by the customs. Shipping bill is normally prepared in five copies: (See Annexure 12)

40 | P a g e
 Customs copy.

Drawback copy.

Export promotion copy.

Port trust copy.

Exporter's copy.

12. Letter of Credit: This method of payment has become the most popular form in

recent times; it is more secured as company to other methods of payment (other than

advance payment). (See Annexure 13)

A letter of credit can be defined as an undertaking by importers bank stating that

payment will be made to the exporter if the required documents are presented to the bank

within the variety of the L/C.

Contents of a Letter Of Credit

A letter of credit is an important instrument in realizing the payment against exports. So,

needless to mention that the letter of credit when established by the importer must contain

all necessary details which should take care of the interest of Importer as well as

Exporter. Let us see shat a letter of credit should contain in the interest of the exporter.

This is only an illustrative list.

Name and address of the bank establishing the letter of credit

letter of credit number and date

41 | P a g e
 The letter of credit is irrevocable

Date of expiry and place of expiry

Value of the credit

Product details to be shipped

Port of loading and discharge

Mode of transport

Final date of shipment

Details of goods to be exported like description of the product, quantity, unit rate,

terms of shipment like CIF, FOB etc.

Type of packing

Documents to be submitted to the bank upon shipment

Tolerance level for both quantity and value

If L/C is restricted for negotiation

42 | P a g e
Steps in an Import Transaction with Letter of Credit

The importer includes a purchase contract for the buying of certain goods.

The importer requests this bank to open a LC in favor of his supplier.

The importers bank opens the LC as per the application.

The opening bank will forward the original LC to the advising bank.

The advising bank, after satisfying itself about the authenticity of the credit, forwards the
same to the exporter.

The exporter scrutinizes the LC to ensure that it confirms to the terms of contract.

In case any terms are not as agreed, the importer will be asked to make the required
amendments to the LC.

In case the LC is as required, the exporter proceeds to make arrangements for the goods.

The exporter will effect the shipment of goods.

After the shipment is effected, the exporter will prepare export documents, including
Bills of Exchange.

The exporters bank (negotiation bank) verifies all the documents with the LC.

If the documents are in the conformity with the terms of LC and all other conditions are
satisfied, the bank will negotiates the bill.

The exporter receives the payment in his bank account.

The LC Opening bank (Importers Bank) receives the bill and documents from the
exporters bank.

The importers bank checks the documents and informs the importer. The importer then
accepts/pays the bill (This would depend on the terms, Delivery against Acceptance or
Delivery against Payment). On acceptance/ payment, the importer gets the shipping
documents covering the goods purchased by him.

The LC issuing bank reimburses the negotiating bank, the amount, if the documents are
found in order.

43 | P a g e
2.4.4) Terms of Shipments Incoterms

The INCOTERMS (International Commercial Terms) is a universally recognized set of

definition of international trade terms, such as FOB, CFR & CIF, developed by the

International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract

responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving

tool. The exporter and the importer need not undergo a lengthy negotiation about the

conditions of each transaction. Once they have agreed on a commercial terms like FOB,

they can sell and buy at FOB without discussing who will be responsible for the freight,

cargo insurance and other costs and risks.

The purpose of Incoterms is to provide a set of international rules for the interpretation of

the most commonly used trade terms in foreign trade. Thus, the uncertainties of different

interpretations of such terms in different countries can be avoided or at least reduced to a

considerable degree. The scope of Incoterms is limited to matters relating to the rights

and obligations of the parties to the contract of sale with respect to the delivery of goods.

Incoterms deal with the number of identified obligations imposed on the parties and the

distribution of risk between the parties.

More Clarification on Incoterms

EXW (At the named place)

Ex Works: Ex means from. Works means factory, mill or warehouse, which are the

sellers premises. EXW applies to goods available only at the sellers premises. Buyer is

responsible for loading the goods on truck or container at the sellers premises and for the
44 | P a g e
subsequent costs and risks. In practice, it is not uncommon that the seller loads the goods

on truck or container at the sellers premises without charging loading fee. The term

EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and

the export-trader resells on other trade terms to the foreign buyers. Some manufacturers

may use the term Ex Factory, which means the same as Ex Works.

FCA (At the named point of departure)

Free Carrier: The delivery of goods on truck, rail car or container at the specified point

(depot) of departure, which is usually the sellers premises, or a named railroad station or

a named cargo terminal or into the custody of the carrier, at sellers expense. The point

(depot) at origin may or may not be a customs clearance centre. Buyer is responsible for

the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier are

considered as delivery on board the plane. In practice, many importers and exporters still

use the term FOB in the air shipment.

FAS (At the named port of origin)

Free Alongside Ship: Goods are placed in the dock shed or at the side of the ship, on the

dock or lighter, within reach of its loading equipment so that they can be loaded aboard

the ship, at sellers expense. Buyer is responsible for the loading fee, main

carriage/freight, cargo insurance, and other costs and risks In the export quotation,

indicate the port of origin(loading)after the acronym FAS, for example FAS New York

41 | P a g e
and FAS Bremen. The FAS term is popular in the break-bulk shipments and with the

importing countries using their own vessels.

FOB (At the named port of origin)

Free on Board: The delivery of goods on the board the vessel at the named port of origin

(Loading) at sellers expense. Buyer is responsible for the main carriage/freight, cargo

insurance and other costs and risks. In the export quotation, indicate the port of origin

(loading) after the acronym FOB, for example FOB Vancouver and FOB Shanghai.

Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only.

However, in practice, many importers and exporters still use the term FOB in the air

freight. In North America, the term FOB has other applications. Many buyers and sellers

in Canada and the USA dealing on the open account and consignment basis are

accustomed to using the shipping terms FOB Origin and FOB destination.

FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB

Destination means the seller is responsible for the freight and other costs and risks until

the goods are delivered to the buyers premises which may include the import custom

clearance and payment of import customs duties and taxes at the buyers country,

depending on the agreement between the buyer and seller. In international trade, avoid

using the shipping terms FOB Origin and FOB Destination, which are not part of the

INCOTERMS (International Commercial Terms).

42 | P a g e
CFR (At the named port of destination)

Cost and Freight: The delivery of goods to the named port of destination (discharge) at

the sellers expenses. Buyer is responsible for the cargo insurance and other costs and

risks. The term CFR was formerly written as C&F. Many importers and exporters

worldwide still use the term C&F.

CIF (At named port of destination)

Cost, Insurance and Freight: The cargo insurance and delivery of goods to the named

port of destination (discharge) at the sellers expense. Buyer is responsible for the import

customs clearance and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym CIF,

for example CIF Pusan and CIF Singapore. Under the rules of the INCOTERMS 1990,

the term CIFI is used for ocean freight only. However, in practice, many importers and

exporters still use the term CIF in the air freight.

CPT (At the named place of destination)

Carriage Paid To: The delivery of goods to the named port of destination (discharge) at

the sellers expenses. Buyer assumes the cargo insurance, import custom clearance,

payment of custom duties and taxes, and other costs and risks. In the export quotation,

indicate the port of destination (discharge) after the acronym CPT, for example CPT Los

Angeles and CPT Osaka.

43 | P a g e
CIP (At the named place of destination)

Carriage and Insurance Paid To: The delivery of goods and the cargo insurance to the

named place of destination (discharge) at sellers expense. Buyer assumes the importer

customs clearance, payment of customs duties and taxes, and other costs and risks.

DAF (At the names point at frontier)

Delivered at Frontier: The delivery of goods at the specified point at the frontier on

sellers expense. Buyer is responsible for the import custom clearance, payment of

custom duties and taxes, and other costs and risks.

DES (At named port of destination)

Delivered Ex Ship: The delivery of goods on board the vessel at the named port of

destination (discharge) at sellers expense. Buyer assumes the unloading free, import

customs clearance, payment of customs duties and taxes, cargo insurance, and other costs

and risks.

DEQ (At the named port of destination

Delivered Ex Quay: The delivery of goods to the Quay (the port) at the destination on

the buyers expense. Seller is responsible for the importer customs clearance, payment of

customs duties and taxes, at the buyers end. Buyer assumes the cargo insurance and other

costs and risks.

44 | P a g e
DDU (At the named point of destination)

Delivered Duty Unpaid: The delivery of goods and the cargo insurance to the final point

of destination, which are often the project site or buyers premises at sellers expense.

Buyer assumes the import customs clearance, payment of customs duties and taxes. The

seller may opt not to insure the goods at his/her own risks.

DDP (At the named point of destination)

Delivered Duty Paid: The seller is responsible for most of the expenses which include

the cargo insurance, import custom clearance, and payment of custom duties, and taxes at

the buyers end, and the delivery of goods to the final point of destination, which is often

the project site or buyers premise. The seller may opt not to insure the goods at his/her

own risk.

E-term, F-term, C-term & D-term: Incoterms 2000, like its immediate

predecessor, groups the term in four categories denoted by the first letter in the three-

letter abbreviation.

Under the E-TERM (EXW), the seller only makes the goods available to the

buyer at the sellers own premises. It is the only one of that category.

Under the F-TERM (FCA, FAS, &FOB), the seller is called upon to deliver

the goods to a carrier appointed by the buyer.

Under the C-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for

carriage, but without assuming the risk of loss or damage to the goods or

additional cost due to events occurring after shipment or discharge.

45 | P a g e
 Under the D-TERM (DAF, DEQ, DES, DDU & DDP), the seller has to

bear all costs and risks needed to bring the goods to the place of destination.

All terms list the sellers and buyers obligations. The respective obligations of both

parties have been grouped under up to 10 headings where each heading on the

sellers side mirrors the equivalent position of the buyer. Examples are Delivery,

Transfer of risks, and Division of costs. This layout helps the user to compare the

partys respective

obligations under each

Incoterms.
 Chapter-4

Data Reduction, Presentation & Analysis

Capacity

At 100% capacity we can produce 500 dress shirts, T-shirt and pant daily Monthly
13000{500*26}

Ready made garments Quantity Produced per Product Mix

Month
Dress shirt 5200 40%
T-shirt 5200 40%
Dress pent 2600 20%
Total 13000 100%

At 60% capacity:
Daily Monthly Annually

300 7800 93600

Annul Inventory 10% of production 9360

At 70% Capacity:
Daily Monthly Annually

350 9100 109200

Annul Inventory 10% of production 10920

At 80% Capacity:

53
Daily Monthly Annually

400 10400 124800

Annul Inventory 10% of production 12480

Assumptions for Calculation:

1. Operation time 1 shift/day

2. Production period 312/year
st
3. Capacity utilization 60% 1 year
70% 2nd year
80% 3rd year
4. At 100% capacity

Per day production 500 units

Per year production 156000 units

Raw material volume: (in meters)

Year 1st 2nd 3rd

Capacity 60% 70% 80%
utilize
Finished fabrics 75000 87500 283500

Detail of Prices: Rs. per meter

53
 Fabrics (55+85+105) 245/{1.5meetr}
2% Increase in prices for each year is projected.

Power & Fuel

Fixed energy charges for electric connection of 25kv 100000

Estimated variable energy charges are @ 6.50/ unit produce. Because the energy cost is less
compare to day charges. we are also purchase generator for emergency.

Insurance:

2%. Of production building

2% of office furniture

Stores and sappers:

Year 1st 2nd 3rd

Amount 20000 25000 30000

53
 Manufacturing admin & selling Expenses

Year 1st 2nd 3rd

Capacity utilization 60% 70% 80%

Fixed:
Power 100000 100000 100000
Insurance:
Building 87584 87584 87584
Depreciation:
Building 1272960 1272960 1272960
Machinery 216500 216500 216500
Variable exp:
Power 608400 709800 811200
Wages & salaries 2846400 2903328 2961395

Store & spares 20000 25000 30000

Total 5151844 5315172 5479639
manufacturing exp

Admin & Selling

Exp:
Salaries 1452000 1481040 1510660
Postages & telegram 30000 32000 34000

Printing & 40000 42000 44000

Stationary
Advertisement 100000 105000 110000
Depreciation:
Office equipment 36180 36180 36180

Furniture & Fixture 11650 11650 11650

Insurance:
Furniture & Fixture 2330 2330 2330

Total 1672160 1710200 1748820

53
 Chapter-5

SUMMARY AND CONCLUSION

AIMS AND OBJECTIVES

To find the exact number of heavy profit giving textile market in north belt

To know what are the different types of textile items these units manufacture.

To know what are the different brands of textile generally in use and get a good
response and repeat purchase by customer.

To know what are the non-CUSTOM APPAREL Brands these Textile units use.

To know the dealers from whom these Textile units purchase their raw-materials.

To find out the reason behind the difference in the price being charged for the
CUSTOM APPAREL product by the dealers.

To make an estimate of per day production in gujarat

To create a demand for CUSTOM APPAREL product in these Textile units.

To know the reason, as to why these Textile units are using non-CUSTOM
APPAREL brands.

To study the satisfaction level of the CUSTOM APPAREL users and non-CUSTOM
APPAREL users.

To enquire whether there is complain of CUSTOM APPAREL product.

To study the seasonal variation in the sales of sewing products.

To know how a Scheme is made.

To know how targets are set for the Salesman.

53
 METHODOLOGY

I. SECTOR & PLAYERS:

A. SECTOR CUSTOM APPAREL Textiles Pvt. Ltd.

B. PLAYERS

Vardhaman Threads

American & Efird

WuxiXin Shenyuan Threads

Local Unregistered Brands

II. SOURCES OF DATA:

For collecting necessary data two sources have been used. They are

primary data & secondary data.

A. Primary Data:

Face to face discussion with the Area Sales Manager, Territory Sales In-charge,
Owners of Factories and the employees of CUSTOM APPAREL

53
 B. Secondary Data:

1. Various Reports of the above mentioned companies

2. Sales Report of the company.

OVER ALL FINDINGS OF NORTH BELT MARKET

1) DIFFERENT TYPES OF GARMENTS BEING MADE BY TEXTILE UNITS:

(A) GUJARAT

TEXTILE Shirts Trousers Salwars Petticoats Blouses Others

Number of 22 12 1 1 1 16
Units
Percentage 71% 39% 8% 8% 8% 52%

Others Include: Uniforms of Schools, College, Security Agencies, Petrol

Pump Depot etc.

ANALYSIS:

53
From the above representation, it can be said that in Gujarat most of the Textile units are
involved in making shirts (72%) and School Uniforms (52%). This means that there is a
great prospect in this area. Although, almost all the Textile units are using CUSTOM
APPAREL thread but still a few of them are using non-CUSTOM APPAREL threads, only
because of the reason that sometime they dont get the required shades. It is upon the
company to provide those shades which are in demand but still it has not got any place in
the companys shade cards. As per as the CUSTOM APPAREL Interlinings are concerned,
these are not at all in demand apart from a very few Textile units in Gujarat. This is
because of the reason that these Textile units are not at all quality conscious which can be
clearly understood when they purchase low quality as well as cheaper Interlinings of
competitive brands. But effort must be taken to introduce as well as to create a demand of
the companys Interlinings in these Textile units with the help of various promotional tools
like Group Canvassing, Textile manufacturers meet etc

(B) RAJASTHAN

TEXTILE Shirts Trousers Salwars Petticoats Blouses Others

Number of
Units 9 0 0 0 0 0

Percentage 100% 0% 0% 0% 0% 0%

Others Include: Uniforms of Schools, College, Security Agencies, Petrol

Pump Depot etc.

ANALYSIS:

From the above graphical representation, it can be said that at RAJASTHAN almost all the
TEXTILE units are involved in making shirts (100%). This means that there is a great
prospect in this area. It has been seen that almost all of the Textile units are very much
satisfied with Spade Poly but still they use non-CUSTOM APPAREL thread. This is only
because of variety in the range of shades. The company must always try to make some
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indent shades depending on the demand for the products. On the other hand, CUSTOM
APPAREL Interlinings are not at all in demand in the Textile units at Rajasthan. This is
because of the reason that these Textile units are not at all quality conscious which can be
clearly understood, when they purchase low quality as well as cheaper Interlinings of
competitive brands. But effort must be taken to introduce as well as to create a demand of
the companys Interlinings in these Textile units with the help of various promotional tools
like Group Canvassing, Textile manufacturers meet etc. and the company must try to give
some cost benefit to these RMG units in the form of discounts, schemes etc.

(C) DELHI:

Textile Shirts Trousers Salwars Petticoats Blouses Others

Number of
Units 7 2 3 2 2 8

Percentage 41% 12% 18% 12% 12% 4%

Others Include: Uniforms of Schools, College, Security Agencies, Petrol

Pump Depot etc.

ANALYSIS:

From the above representation, it can be said that in delhi most of the textile units are
involved in making shirts (41%) and School Uniforms (47%). This means that there is a
great amount of prospect in this area. It has been seen that not even a single Textile unit
here is using non-CUSTOM APPAREL products. At Delhi, 15 Textile units are using
Ameto out of which 9 Textile units are also using Moon. So, the company must target these
9 Textile units and try to make them switch to Ameto completely. As per as the CUSTOM
APPAREL Interlinings are concerned, there are only 6 Textile units which are using Coats
Interlinings which is quite better than any other places like above concerned. It can also be
suggested that as 15 Textile units are using CUSTOM APPAREL high priced threads,
Ameto, it can be expected that, if not 17, atleast15 of them are capable of using CUSTOM
APPAREL Interlinings which comes at higher price as compared to that of its competitive
brands. This can only be possible with proper marketing of goods and also with the help of
various promotional tools like Group Canvassing, Textile manufacturers meet etc

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(2) VARIOUS BRANDS OF CUSTOM APPAREL BEING USED BY THE TEXTILE
UNITS IN NORTH BELT :
(A) Threads

CUSTOM APPAREL Spade Poly Moon Ameto

Brands
(Threads)
Percentage
of Consumption 42.22% 40% 30%

ANALYSIS

From the l representation, it is clear that CUSTOM APPARELs product are used by the
Textile units but still CUSTOM APPAREL has to go a long to to capture these market
completely. It has been seen that most of the Textile units are involved in making shirts,
which shows that it can target those Textile units with its shirt specialist threads like Spade
Poly or Ameto. It is better to target the small Textile with Spade Poly because they will not
use high priced thread like Ameto because of less profit margin. During winter season
some of them make suits which means that they can be targeted to use Ameto, Suit
specialist. But, in Barpeta the scenario is a little bit different. It has been seen that majority
of the Textile use low priced as well as low quality thread thread of the competitive brand.
In this case, the company has no other option but to reduce the price of their product or else
they will have to make a similar kind of threads for this market.

(B) YARNS:

CUSTOM APPAREL TLR MCL

Brands
(Yarns)
Percentage
of Consumption 36.36% 18.88%

ANALYSIS

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From the representation, it can be said that textile units only use either TLR or MCL. But
CUSTOM APPAREL has also got other various brands of Yarns like MIG and GUN. Even
though there are few number of textile units that manufactures Trousers but still it can be
used in the throusers as well as in the school uniforms which requires a huge amount of
yarns. Generally, it has been seen that textile units uses cheaper range of yarns where
CUSTOM APPARELs MIG yarns can very well fit in. The only thing that the company
must remember is that there must be good promotion of yarn like Group Canvassing, textile
manufacturers meet.

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 CHAPTER 6:
SUGGESTIONS

1. It is seen that CUSTOM APPARELS main competitor in this field are the local brands,
generally manufactured by the dealers dealing in such goods. These products are
available at a very low price. This can be avoided by making the consumers aware of the
various product range of CUSTOM APPAREL. settle their business on cash basis only.

2. CUSTOM APPAREL is the market leader of sewing threads but it has not been possible
for the company to explore all the Textile markets in Gujarat. This is only because of the
reason that most of the Textile in Gujarat are small and also they are not all quality
conscious. For this it is very necessary for the company to make these manufacturers
quality conscious.

3. Moon threads must be made available in the range of 90-100 metre (presently comes in
135 metre) because the ideal length to make a shirt is 90-100 metre which will also
reduce the wastage of leftovers.

4. Ameto threads must be made available in the range of 90-100 metre or 180 metre
(presently comes in 150 metre) because the ideal length to make a shirt is 90-100 metre
which will reduce the wastage of threads.

5. 10,000 metre Cone must be produced in colour shades because it has been seen that it has
got a huge demand in the Vests and Brief industry.

6. Like, Textile manufacturers meet must also be conducted from time to time in order to
make them aware of the companys products, make them quality conscious and in this
way the company will also be able to serve the customers in a better way.

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 7. The company must also try to target the Fashion and Textile institutes because they
require a huge amount of sewing products and if the company can tap this market then it
will help the company to increase its sales to a huge extent.

8. As per as the Anchor Stitch Kits are concerned, it has been seen that the schools are not
much interested in introducing it because nowadays the students dont show much interest
in stitching. But it has been seen that some of the schools are there, which have stitching
as co-curricular activity. So it would be advisable to target these schools first.

9. Some of the other companies are conducting various workshops in certain schools. These
companies provide the students with material as well as an instructor to guide the
students. So the company must try out some promotional tools like Summer Camps,
Workshops etc. to create a demand for the product within the schools.

SWOT ANALYSIS ACCORDING EXPERIENCE

Strengths

High quality and safe products at affordable prices.

Strong and well differentiated brands with leading market shares.

Strong equity with consumers as a Company with high quality brands.

Ongoing product innovation and renovation, to convert consumer insights.

Well diversified product portfolio.

Efficient supply chain.

Distribution structure that allows wide reach and coverage in the target markets.

Capable and committed human resources.

Integrated and advanced Information Systems .

Weakness:
Unable to provide goods at a lower price like its competitors.

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 Complex supply chain configuration.

Sometime it cannot meet the demand of the customers in respect of colours of the
threads.

Opportunities:

Potential for expansion in the smaller towns and other geographies.

Development of modern retail formats.

Potential for growth through increased penetration.

Growing per capita income.

Threats:
Competitive environment with diverse players.

People attraction and retention.

Rising prices of commodities and fuels.

Change in fiscal benefits/ laws.

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 CHAPTER 10: MY EXPERIENCE AND LEARNINGS

MY EXPERIENCE WITH CUSTOM APPAREL

These two months with CUSTOM APPAREL. are unforgettable for me. The experience, which I got
during these days, was tremendous. I have made good relation with so many people in frontline
division, where I did my project and also in other divisions too. I found everybody within the
company very nice, helpful and co-operative. Really, the experience I have got from my project will
be very helpful to enrich and nourish my career in the near future.

MY LEARNINGS FROM THE PROJECT

It was great opportunity for me to do my Summer Training from CUSTOM APPAREL Textiles Pvt.
Ltd. Some of the things which I learnt from my Summer Training are as follows:-

EFFECTIVE SELLING:

To plan for the discussion.

To present the thoughts in correct logical order.

To put technical content in the presentation.

To punch the key benefits in terms of consumer motivation.

To perceive the role quickly those are supposed to play in every situation during the
interaction.

To play upon the customers ego, but in a subtle intelligent manner.

To probe deeply to gain more insight into the customers mind.

To prepare for positive results.

To plant the brand name by creative use of the samples - technical and promotional material.

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CUSTOMER RELATIONSHIP:

Be friendly and accessible

Attend customer calls

Show personal warmth and empathy

Be well organized and resourceful

Be punctual on appointments

Listen to customers it helps in discovering his known and unknown requirements.

Understand

1) Customer type

2) Product type & value

3) Buying segment

4) Accounting systems

Solve the customer problems on priority and revert to customers with replies, even it is
negative.

Listen to objections and complaints

Stay cool and dispassionate even when a customer criticizes

Attentively listening to the customer

Appreciating customer needs & expectations

Response to customer queries

Response to customer complaints

Accommodating to change in customer behavior

Understanding the customers perspective

Do a after sale service

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Marketing is a very crucial activity in every business organization. Every product and service
produced within an industry needs to be marketed. Despite various difficulties and limitations faced
during my summer training project, I have tried my level best to find out the most relevant
information for the organization to complete the assignment that was given to me. After completion
of my summer training project I have gained several experiences in the field of sales and marketing.

Theoretical knowledge of a person remains dormant until it is used and tested in the practical life.
The training has given to me the chance to apply my theoretical knowledge that I have acquired in
my classroom to the real business world. It gave me enough knowledge about the market and the
distribution process undertaken by an organization. This summer training project has enhanced my
capability to manage business effectively in my near future.

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