Impact of Behavioural Characteristics on the Job Aspects of Managers : A Study of Maharashtra’s Powerloom Industry

Dissertation Submitted To D. Y. Patil University, Navi Mumbai School of Management In partial fulfillment of the requirements For the award of the Degree of

Master of Philosophy

In Management

Submitted by Mr. Zoheb M. Shaikh (Enrolment No.: DYP-MPHIL-11021)

Research Guide Professor Dr. Pradip Manjrekar

D. Y. Patil University, School of Management Navi Mumbai - 400 614 August - 2015 Impact of Behavioural Characteristics on Various Job Aspects of Managers : A Study of Maharashtra’s Powerloom Industry

1 DECLARATION

I hereby declare that the dissertation entitled Impact of Behavioral Characteristics on the

Job Aspects of Managers: A Study of Maharashtra’s Powerloom Industry submitted by me for the award of the degree of Master of Philosophy in Management at D. Y. Patil University,

Navi Mumbai, School of Management is original and it has not been submitted previously in part or full to this or any other University for any Degree or Diploma.

The material borrowed from other sources and incorporated in the dissertation has been duly acknowledged.

I understand that I myself could be held responsible and accountable for plagiarism, if any detected later on.

The research papers published based on the research conducted out of and in the course of the study are also based on the study and not borrowed from other sources.

Date : August, 2015 Mr. Zoheb M. Shaikh

Place : Navi Mumbai. M. Phil Scholar (Enrolment No.: DYP-MPHIL-11021)

2 CERTIFICATE

This is to certify that the thesis entitled “Impact of Behavioural Characteristics on Various

Job Aspects of Managers: A Study of Maharashtra’s Powerloom Industry” is a bonafide work carried out by. Mr Zoheb M. Shaikh, M.Phil. Scholar at D.Y. Patil University,

Navi Mumbai School of Management in partial fulfilment of the requirements for the award of the Degree of Master of Philosophy in Management and that the dissertation has not formed the basis for the award previously of any degree, associate ship, fellowship or any other similar title of any University or Institution.

Also certified that the dissertation represents an independent work on the part of the candidate.

Signature Signature

Prof. Dr. R Gopal Prof. Dr. Pradip Manjrekar

Director & Head of the Department Research Guide

D. Y. Patil University, D. Y. Patil University,

School of Management, Navi Mumbai. School of Management, Navi Mumbai.

Date : August, 2015

Place : Navi Mumbai.

3 ACKNOWLEDGEMENTS

I am very much grateful to D. Y. Patil University, Navi Mumbai, School of Management for giving me an opportunity to pursue the degree of M.Phil. I am especially grateful to

Prof. Dr. R. Gopal, Director & HOD for his encouragement and guidance.

I would like to express my gratitude to my guide Prof. Dr. Pradip Manjrekar, D. Y. Patil

University, Navi Mumbai. It would be no exaggeration to say that this research would not have been completed today without his steady moral support and guidance. I am very thankful to my family members for supporting me in this project work and thus have helped me in completing this study successfully.

Lastly I wish to thank one and all who have supported me in this dissertation work.

Date : August, 2015 Mr. Zoheb M. Shaikh

Place : Navi Mumbai. M. Phil Scholar (Enrolment No.: DYP-MPHIL-11021)

4 CONTENTS

CHAPTER PAGE No.

LIST OF CONTENTS 05

LIST OF TABLES 06

LIST OF FIGURES 07

EXECUTIVE SUMMARY 08

CHAPTER - 1 INTRODUCTION 17

Global Powerloom Industry 26

India’s Powerloom Industry 32

Powerloom Industry In Maharashtra 35

CHAPTER - 2 LITERATURE REVIEW & GAP ANALYSIS 42

CHAPTER - 3 OBJECTIVES AND HYPOTHESIS 57

CHAPTER - 4 RESEARCH METHODOLOGY 60

CHAPTER - 5 TEXTILE INDUSTRY 64

Textile industry in India 64

Indian Textiles Sector Analysis Report 88

Maharashtra’s Textile Industry 92

CHAPTER - 6 JOB PROFILES 103

CHAPTER - 7 BEHAVIORAL CHARACTERISTICS 107

CHAPTER - 8 DATA COLLECTION 111

CHAPTER - 9 DATA ANALYSIS 117

CHAPTER - 10 TESTING OF HYPOTHESIS 124

CHAPTER - 11 CONCLUSIONS 132

CHAPTER - 12 RECOMMENDATIONS 134

CHAPTER - 13 BIBLIOGRAPHY 136

ANNEXURE 141

5 LIST OF TABLE Table PAGE NAME OF TABLE No. No. 1.1 Number of Looms in U.K. 22

5.1 India’s Competitive Position in Stages of Textile Manufacture 78

5.2 Requirement of Funds for various segments. 81

7.1 Behavioural Characteristics of different groups 107

10.1 Responses related to satisfaction 124

10.2 Responses related to behavioural characteristics 125

10.3 Responses related to motivational factors 126

10.4 Spearmen’s rank correlation for satisfaction 127

10.5 Spearmen’s rank correlation for motivational factors 128

10.6 Spearmen’s rank correlation for job satisfaction 129

6 LIST OF FIGURES Figure PAGE NAME OF FIGURE No. No.

1.1 The countries with the largest share of their exports

being textiles and appare 24

1.2 Proportion of shuttle less looms in different countries 33

4.1 The Model of the research process followed 60

5.1 Investment in textile 81

10.1 Responses showing distribution of satisfaction level

of respondents 125

10.2 Responses showing distribution of behavioural characteristics

of respondents 126

10.3 Responses showing distribution of different variables 127

10.4 Responses showing distribution of satisfaction level

& behavioural characteristics 128

10.5 Responses showing distribution of motivational factors

& behavioural characteristics 129

7 EXECUTIVE SUMMARY

The Textile Industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country. Presently, there are 2,500 textile weaving factories and 4,135 textile finishing factories in all of India. The Powerloom Industry is part of Textile Industry

History of weaving looms can be traced back to 17th Century. The first Powerloom was invented by Edmund Cartwright in 1785. Originally Powerlooms were with shuttle, and they were very slow. But as the industrial demands for faster production accelerate, faster looms without shuttle came in use in early part of 20th century. As developments and innovations take place, various types of looms were developed for faster production. Today, Air-jet,

Water-jet, Rapier and other computer operated looms are used to maximize production

Though weaving is one of the important sector for Indian textile industry, it has not been given due attention like spinning sector. Moreover structure of the industry plays a major role in making it competitive. Nature of this sector is mainly unorganized. The sector consists of fragmented, small and often, un-registered units that invest low amount in technology and practices especially in the powerloom, processing, handloom and knits.

The Indian Powerloom industry is small scale unlike Powerloom Industry of China and

Taiwan and therefore incurs high Production cost.

Higher power tariff is also one of the biggest challenges this industry is facing. Unlike spinning industry Powerloom sector is mostly concentrated in small areas of nations, where power fluctuation is a matter of routine. Productivity also gets affected time to time by fluctuation in power in such areas. Through Technology Up-gradation Scheme (TUFS)

Government is trying to modernize these sector and make import of latest technology looms

8 easier and affordable. Still India lags behind in productivity due to outdated technology and low penetrations of shuttle less Powerlooms.

The Powerloom sector produces more than 60% of cloth in India and Indian textile ministry’s latest (2014) estimation says that more than 60% of the country’s cloth exports originated from this sector. With its employment of 4.86mn workers, the powerloom sector comprised approximately 60% of total textile industry employment.

As per textile ministry of India up till March 31, 2014, the Powerlooms sector — which produces various cloth products, including greige and processed fabrics — consisted of

4,30,000 units with 1.94mn Powerlooms. The ministry projected the number of powerlooms to rise to 1.95mn in 2015-16.

But modernization in Powerlooms is less and Indian industry still lags significantly behind

US, China, Europe, Taiwan etc. Most of the looms currently in country are shuttle-less.

There are less than 15,000 modern looms, whereas traditional looms are in large numbers.

Value addition and the manufacturing of fabrics according to customer’s compliances, is not possible due to obsolete technology of Powerlooms.

Powerlooms, their personnel and the laws governing them were thoroughly analysed by researcher and then the hypotheses were formulated. Analysis of hypothesis first revealed that there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra. Analysis also revealed that there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra.

Maharashtra has been a prominent promoter of special economic zones in India. In all,

Maharashtra has one SEZ (SEEPZ) operational prior to SEZ Act-2005, it is expected that powerloom Industry will get boost because of SEZs. 88 SEZs that have received formal approval and 36 SEZs with 'In-Principal Approval'. Thus in these SEZs which are within the influence area of MIDC (Maharashtra Industries Development Corporation), the

9 Powerloom Industry is expected to get a boost. Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub.

The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. MMF production increased by 6 percent in 2014 over the earlier year. (Source: Ministry of Textiles, Govt. of India)

Cotton yarn production increased by 6 percent in 2014 over the earlier year. Blended and

100 percent non-cotton yarn production increased by 5 percent in 2014 over the earlier year. Cloth production by handloom, and hosiery increased by 3 percent and 11 percent respectively in 2014. Production by handloom, and hosiery sectors increased by 4 percent and 13 percent in 2014 over the earlier year. (Source: Ministry of Textiles, Govt. of India)

The total cloth production grew by 2 percent during April-December 2014 vis-a-vis earlier

April-December 2014. The potential size of the Indian textile and apparel industry is expected to reach US$ 221 billion by 2021, according to Technopak's Textile and Apparel Compendium,

2014. Garment exports from India is expected to touch US$ 60 billion over the next 3 years, with the help of government support, says Apparel Export Promotion Council (AEPC). The textiles sector has witnessed a spurt in investment during the last five years. The industry

(including dyed and printed) attracted foreign direct investments (FDI) worth Rs. 6,428.18 crore (US$ 1.03 billion) during April 2009 to December 2014. (Source: Ministry of Textiles,

Govt. of India)

The Government of India has promoted a number of export promotion policies for the Textile sector in the Union Budget 2013-14 and the Foreign Trade Policy 2009-14. It has also allowed 100 per cent FDI in textiles under the automatic route.

10 Due to policy measures initiated by the Government in the recent past, the Indian textiles industry is in a stronger position than it was in the last six decades. The industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 8-9 per cent in value terms.

The textiles industry complements the growth of several industries and institutions such as the defence forces, railways, and government hospitals, which are the key institutional buyers of textiles. The market is expected to grow to US$ 31 billion by 2020, at a compound annual growth rate (CAGR) of 10 percent(Source : Technopak, 2014) The industry includes production of flexible packaging material for industrial, agricultural and consumer goods.

India’s textile industry is an emerging area for investments with good growth opportunities.

With the increase in investments in the Indian textile sector, the subsequent increase in the industrial production, and the positivity observed by the textile sector have resulted in progress and development of the sector. Integrating the sectoral needs with technical advancements will completely modernise the industry chains across the country, along with continued investments assisting in reaping benefits for the Indian textile sector.

The Indian textile industry has a significant presence in the Indian economy as well as in the international economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, and 18 percent of employment in the industrial sector, nearly 20 percent to the country’s total export earnings and 4 percent to the Gross Domestic Product. (Source: Ministry of

Textiles, Govt. of India)

As per the Ministry of Textiles, the Indian textile industry (valued at US$ 77bn in 2014) contributed about 14% to industrial production, 4% to the country's GDP and 12% to the country's export earnings in 2014. It provides direct employment to over 35 mn people and is the second largest provider of employment after agriculture.

11 Investment made in the textile sector under the Technology Up gradation Fund (TUFS) scheme has been Rs. 2 trillion till June, 2014. According to the Technopak, Indian textile industry is expected to grow at an average annual rate of 11% between 2015 and 2020 to touch US$

140 bn. India's share of global textile exports is expected to increase from the current 4% to around 7% over the next three-years.

According to the Textile Association of India (TAI), the denim manufacturing capacity, which stands at 600-650 mn meters per annum, is set to witness an addition by another 100 mn meters wherein 70% focus will be on the domestic market.

India enjoys a significant lead in terms of labour cost per hour over developed countries like

US and newly industrialized economies like Hong Kong, Taiwan, South Korea and China. As per data from India’s National Bureau of Statistics, due to steep wage inflation, the average wage cost in China stood at US$ 450 per month in 2014 as against US$ 200 per month in

India. Also, India is rich in traditional workers adept at value-adding tasks, which could give

Indian companies significant margin advantage. However, India's inflexible labor laws have been a hindrance to investments in this segment. Unlike in home textiles, garment capacities are highly fragmented and leading Indian textile companies have been slow to ramp up their apparel capacities, despite strong order flows from overseas buyers who are trying to diversify out of China.

The textile industry aims to double its workforce over the next 3 years. As a thumb rule, for every Rs1 lac invested in the industry, an average of 7 additional jobs is created.

The Government has also allowed 100 per cent FDI in the sector through the automatic route. In the 12th Five Year Plan (2012–17), the government plans to spend US$ 9.1 billion on textiles as against US$ 4 billion in the 11th Plan. India's textile exports has grown at an average annual rate of 8.8% in the last 5 years.

Most companies in the sector timed their expansion plans FY04 onwards, so as to avail themselves of the funding under TUF S (Technology Up gradation Fund, offering loans at

12 6% subsidy). This led to the capex-spending phase in the textile sector peaking in the last three fiscals. However, with the slump in demand for textile products from the overseas markets, a number of companies had to defer their expansion plans due to large under-utilized capacities. With the government rejecting the proposal to continue the TUFS scheme beyond the 11th plan (2012- 2017), the players looking to defer their capex plans will be hit. It is believed that with higher interest rates, players in the sector would prefer to see the utilization levels get normalized, before leveraging more for incremental capex.

The global textile industry also faced the brunt of economic slowdown, wherein, exports to the US from two of its largest suppliers India and China dipped in terms of value and volumes respectively. While India sustained volumes because of better product quality as compared to China, it lost out in terms of realizations. Competitors like Vietnam, Bangladesh and

Indonesia gained substantially because of relatively lower labor costs. Troubled by the rupee's appreciation against the US dollar, thereby eroding their competitiveness in the global market, textile exporters have demanded duty benefits and credit at lower interest rates.

It was discovered, as a part of the research that the motivation level of managerial staff depends upon different behaviour characteristics of managerial staff. There is a significant relationship between motivating factors and the level of satisfaction of managerial staff in

Powerloom Industry in Maharashtra.

The higher authorities should always look after various behavioural characteristics of managerial staff in Powerloom Industry in Maharashtra as it has significant relationship with motivation level and satisfaction level of managerial staff.

Authorities should evaluate the performance of each employee from time to time and ensure that if, the employee is motivated, satisfied and productive, than, he or she should be properly rewarded. Training should be organized either in-house or outside from time to time to make employees learn how to do their job well.

From the observed gaps in the literature, the following factors were investigated. The relationship between various behavioural characteristics and level of satisfaction of managerial

13 staff. The relationship between various behavioural characteristics and motivating factors of managerial staff. Also study and compare the extent of various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

The objectives of this study included study of the relationship between various behavioural characteristics and level of satisfaction of managerial staff; the relationship between various behavioural characteristics and motivating factors of managerial staff; and to compare the extent of various motivating factors and level of job satisfaction of managerial staff in

Powerloom Industry in Maharashtra.

As per observations from analysis of hypothesis and data obtained; first revealed that there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra. This indicates that the satisfaction level of managerial staff depends upon different behaviour characteristics of managerial staff.

Analyses also revealed that there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in

Maharashtra.

It is concluded that the motivation level of managerial staff depends upon different behaviour characteristics of managerial staff. It is also concluded from the study that there is a significant relationship between motivating factors and the level of satisfaction of managerial staff in

Powerloom Industry in Maharashtra.

From the this study, one can conclude that work satisfaction and behavioural characters are connected, this would also lead to the assumption that the work ethic and attitude of the person involved greatly influences his/her satisfaction level at work place.

Furthermore, if a person is of the right attitude, de-motivating factors for such a person are limited. One can conclude that the attitude and work ethic works in both ways, influencing the person himself as well as those around him. This could be one of the factors why Self-

14 Motivated people are preferred by the industry; and why HR (Human Resources) department is focussed on keeping the morale high.

As a corollary, one can also conclude that motivating factors would also be connected to satisfaction levels at the work place. It is recommended from the findings that the higher authorities should always look after various behavioural characteristics of managerial staff in Powerloom Industry in Maharashtra as it has significant relationship with motivation level and satisfaction level of managerial staff.

The managerial staff should also try to develop their own various behavioural characteristics so that they can manage their motivation and satisfaction level.

Authorities should evaluate the performance of each employee from time to time and ensure that if, the employee is motivated, satisfied and productive, than, he or she should be properly rewarded.

Training should be organized either in-house or outside from time to time to make employees learn how to do their job well. Development and growth opportunities should be provided to employees on regular basis so that they should keep themselves motivated and feel satisfied.

Employees should be trained in such a way so that they can develop their behavioural characteristics and in turn increase their satisfaction and motivation level.

15 CHAPTER 1

INTRODUCTION

16 CHAPTER 1 INTRODUCTION

The Indian textile industry consists of three distinct sectors representing broadly three levels of technology and Organization, namely, mills, Powerloom and handloom. The handloom sector is the oldest among them with a long tradition of excellence and unrivalled craftsmanship. The mill sector is over one hundred and fifty years old with about 1834 textile mills, installed capacity of 37.07 million spindles and 4,89,718 rotors.. The last to appear on the scene is the Powerloom sector which over the last three decades has come to occupy a prominent position with 22.05 lakh Powerlooms in the country.

The textile industry or apparel industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural or synthetic using products of the chemical industry.

The industrial processes

Cotton manufacturing

Cotton is the world's most important natural fibre. In the year 2014, the global yield was 25 million tons from 35 million hectares cultivated in more than 50 countries. There are five stages:

● Cultivating and Harvesting

● Preparatory Processes

● Spinning- giving yarn

● Weaving- giving fabrics

● Finishing- giving textiles

Synthetic fibres

Artificial fibres can be made by extruding a polymer, through a spinneret into a medium where it hardens. Wet spinning (rayon) uses a coagulating medium. In dry spinning (acetate

17 and triacetate), the polymer is contained in a solvent that evaporates in the heated exit chamber.

In melt spinning (nylons and polyesters) the extruded polymer is cooled in gas or air and then sets. All these fibres will be of great length, often kilometres long. Artificial fibres can be processed as long fibres or batched and cut so they can be processed like a natural fibre.

Natural fibres

Natural fibres are either from animals (sheep, goat, rabbit, silk-worm) mineral (asbestos) or from plants (cotton, flax, sisal). These vegetable fibres can come from the seed (cotton), the stem (known as bast fibres: flax, Hemp, Jute) or the leaf (sisal). Without exception, many processes are needed before a clean even staple is obtained- each with a specific name. With the exception of silk, each of these fibres is short being only centimetres in length, and each has a rough surface that enables it to bond with similar staples.

History

Cottage Stage

There are some indications that weaving was already known in the Palaeolithic Age. An indistinct textile impression has been found at Pavlov, Moravia. Neolithic textiles are well known from finds in pile dwellings in Switzerland. One extant fragment from the Neolithic was found in Fayum at a site which dates to about 5000 BC.

The key British industry at the beginning of the 18th century was the production of textiles made with wool from the large sheep-farming areas in the Britains Midlands and across the Britain country (created as a result of land-clearance and enclosure).This was a labour- intensive activity providing employment throughout Britain, with major centres being the West Country; Norwich and environs; and the West Riding of Yorkshire. The export trade in woollen goods accounted for more than a quarter of British exports during most of the 18th century, doubling between 1701 and 1770. Exports of the cotton industry -centered in

Lancashire -had grown tenfold during this time, but still accounted for only a tenth of the value of the woollen trade. Before the 17th century, the manufacture of goods was performed on a limited scale by individual workers. This was usually on their own premises (such as

18 weavers' cottages) - and goods were transported around the country. Clothiers visited the village with their trains of pack-horses. Some of the cloth was made into clothes for people living in the same area, and a large amount of cloth was exported. In the early 18th century, artisans were inventing ways to become more productive. Silk, wool, fustian, and linen were being eclipsed by cotton, which was becoming the most important textile. This set the foundations for the changes.

In Roman times, wool, linen and leather clothed the European population, and silk, imported along the Silk Road from China, was an extravagant luxury. The use of flax fibre in the manufacturing of cloth in Northern Europe dates back to Neolithic times.

During the late medieval period, cotton began to be imported into northern Europe. Without any knowledge of what it came from, other than that it was a plant, noting its similarities to wool, people in the region could only imagine that cotton must be produced by plant-borne sheep. John Mandeville, writing in 1350, stated as fact the now- preposterous belief: "There grew in India a wonderful tree which bore tiny lambs on the ends of its branches. These branches were so pliable that they bent down to allow the lambs to feed when they are hungry." This aspect is retained in the name for cotton in many European languages, such as German Baumwolle, which translates as "tree wool". By the end of the 16th century, cotton was cultivated throughout the warmer regions of Asia and the Americas.

The main steps in the production of cloth are producing the fibre, preparing it, converting it to yarn, converting yarn to cloth, and then finishing the cloth. The cloth is then taken to the manufacturer of garments. The preparation of the fibres differs the most, depending on the fibre used. Flax requires retting and dressing, while wool requires carding and washing.

The spinning and weaving processes are very similar between fibres, however Spinning evolved from twisting the fibres by hand, to using a drop spindle, to using a spinning wheel. Spindles or parts of them have been found in archaeological sites and may represent one of the first pieces of technology available. They were invented in India between 500 and

1000 AD.

19 Industrial Revolution

The textile industry grew out of the industrial revolution in the 18th Century as mass production of yarn and cloth became a mainstream industry.

In 1734 in Bury, Lancashire, John Kay invented the flying shuttle - one of the first of a series of inventions associated with the cotton industry. The flying shuttle increased the width of cotton cloth and speed of production of a single weaver at a loom. Resistance by workers to the perceived threat to jobs delayed the widespread introduction of this technology, even though the higher rate of production generated an increased demand for spun cotton.

In 1761, in Britain the Duke of Bridgewater's canal connected Manchester to the coal fields of Worsley and in 1762, Matthew Boulton opened the Soho Foundry engineering works in

Handsworth, Birmingham. His partnership with Scottish engineer James Watt resulted, in

1775, in the commercial production of the more efficient Watt steam engine which used a separate condenser.

In 1764, James Hargreaves is credited as inventor of the spinning jenny which multiplied the spun thread production capacity of a single worker - initially eightfold and subsequently much further. Others credit the original invention to Thomas Highs. Industrial unrest and a failure to patent the invention until 1770 forced Hargreaves from Blackburn, but his lack of protection of the idea allowed the concept to be exploited by others. As a result, there were over 20,000 Spinning Jennies in use by the time of his death. Again in 1764, Thorp Mill, the first water-powered cotton mill in the world was constructed at Royton, Lancashire, England.

It was used for carding cotton. With the spinning and weaving process now mechanized, cotton mills cropped up all over the North West of England.

20 19th Century Developments

With the Cartwright Loom, the Spinning Mule and the Boulton & Watt steam engine, the pieces were in place to build a mechanised textile industry. From this point there were no new inventions, but a continuous improvement in technology as the mill-owner strove to reduce cost and improve quality. Developments in the transport infrastructure; that is the canals and after 1831 the railways facilitated the import of raw materials and export of finished cloth.

Firstly, the use of water power to drive mills was supplemented by steam driven water pumps, and then superseded completely by the steam engines. For example Samuel Greg joined his uncle's firm of textile merchants, and, on taking over the company in 1782, he sought out a site to establish a mill. Quarry Bank Mill was built on the River Bollin at Styal in Cheshire

Britain. It was initially powered by a water wheel, but installed steam engines in 1810.Quarry

Bank Mill in Cheshire still exists as a well preserved museum, having been in use from its construction in 1784 until 1959. It also illustrates how the mill owners exploited child labor, taking orphans from nearby Manchester to work the cotton. It shows that these children were housed, clothed, fed and provided with some education. In 1830, the average power of a mill engine was 48 hp, but Quarry Bank mill installed a new 100 hp water wheel. William

Fairbairn addressed the problem of line-shafting and was responsible for improving the efficiency of the mill. In 1815, he replaced the wooden turning shafts that drove the machines at 50rpm, to wrought iron shafting working at 250 rpm, these were a third of the weight of the previous ones and absorbed less power.

Secondly, in 1830, using an 1822 patent, Richard Roberts manufactured the first loom with a cast iron frame, the Roberts Loom. In 1842 James Bullough and William Kenworthy, made the Lancashire Loom . It was a semi-automatic Powerloom Although it was self- acting, it had to be stopped to recharge empty shuttles. It was the mainstay of the Lancashire

21 cotton industry for a century, when the Original, Powerlooms were shuttle-operated but in the early part of the 20th century the faster and more efficient shuttleless loom came into use.

Today, advances in technology have produced a variety of Powerlooms designed to maximize production for specific types of material. The most common of these are air-jet looms and water-jet looms. Industrial Powerlooms can weave at speeds of six rows per second and faster.

Thirdly, also in 1830, Richard Roberts patented the first self-acting mule. Stalybridge mule spinners strike was in 1824, this stimulated research into the problem of applying power to the winding stroke of the mule. The draw while spinning had been assisted by power, but the push of the wind had been done manually by the spinner; the mule could be operated by semiskilled labor. Before 1830, the spinner would operate a partially powered mule with a maximum of 400 spindles after; self-acting mules with up to 1300 spindles could be built.

Table 1.1: Number of Looms in U.K.

Number of Looms in UK

Year 1803 1820 1829 1833 1857

Looms 2400 14650 55500 100000 250000

Source: Murray (2012) – Textile Industry, Murray (2012)

The industrial revolution changed the nature of work and society. The three key drivers in these changes were textile manufacturing, iron founding and steam power. The geographical focus of textile manufacture in Britain was Manchester, England and the small towns of the

Pennines and southern Lancashire.

Textile production in England peaked in 1926, and as mills were decommissioned, many of the scrapped mules and Powerlooms were bought up and reinstated in India. The demographic change made by World War I, had made the labor-intensive industry unprofitable in England, but in India and later China it was an aid to development.

22 20th Century Developments

Major changes came to the textile industry during the 20th century, with continuing technological innovations in machinery, synthetic fibre, logistics, and globalization of the business. The business model that had dominated the industry for centuries was to change radically. Cotton and wool producers were not the only source for fibres, as chemical companies created new synthetic fibres that had superior qualities for many uses, such as rayon, invented in 1910, and DuPont's nylon, invented in 1935 as inexpensive silk substitute, and used for products ranging from women's stockings to tooth brushes and military parachutes.

The variety of synthetic fibres used in manufacturing fibre grew steadily throughout the

20th century. In the 1920s, acetate was invented; in the 1940s, acetate, metal fibres, were developed; acrylic, polyester, and spandex were introduced in the 1950s. Polyester became hugely popular in the apparel market, and by the late 1970s, more polyester was sold in the

United States than cotton.

By the early 20th century, the industry in the developed world often involved immigrants in "sweat shops", which were usually legal but were sometimes illegally operated. They employed people in crowded conditions, working manual sewing machines, and being paid less than a living wage. This trend worsened due to attempts to protect existing industries which were being challenged by developing countries in South East Asia, the Indian subcontinent and Central America. Although globalization saw the manufacturing largely outsourced to overseas labor markets, there has been a trend for the areas historically associated with the trade to shift focus to the more white collar associated industries of fashion design, fashion modelling and retail.

By the late 1980s, the apparel segment was no longer the largest market for fibre products, with industrial and home furnishings together representing a larger proportion of the fibre market. Industry integration and global manufacturing led to many small firms closing for

23 good during the 1970s and 1980s in the United States; during those decades, 95 percent of the Powerlooms in North Carolina, South Carolina and Georgia shut down, and Alabama and Virginia also saw many factories close.

21st Century Developments

In 2002, textiles and apparel manufacturing accounted for US $400 billion in global exports, representing 6% of world trade and 8% of world trade in manufactured goods. In the early years of the 21st century, the largest importing and exporting countries were developed countries, including the European Union, the United States, Canada and Japan.

Fig 1.1: The countries with the largest share of their exports being textiles and apparel (2002) Source : Textile Industry, Manual (2002)

Commerce and Regulation

The Multi-Fibre Arrangement (MFA) governed the world trade in textiles and garments from 1974 through 2004, imposing quotas on the amount developing countries could export to developed countries. It expired on 1 January 2005.

24 The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. Developing countries have a natural advantage in textile production because it is labor intensive and they have low labor costs.

However, the Arrangement (MFA) was not negative for all developing countries. For example the European Union (EU) imposed no restrictions or duties on imports from the very poorest countries, Bangladesh, Cambodia, Pakistan, El-Salvador, Mauritius, Sri Lanka,

Dominican Republic, Tunisia leading to a massive expansion of the industry there.

At the General Agreement on Tariffs and Trade (GATT) Uruguay Round, it was decided to bring the textile trade under the jurisdiction of the World Trade Organization (WTO). The

WTO Agreement on Textiles and Clothing provided for the gradual dismantling of the quotas that existed under the MFA. This process was completed on 1 January 2005.

However, large tariffs remain in place on many textile products.

Bangladesh was expected to suffer the most from the ending of the MFA, as it was expected to face more competition, particularly from China. However, this was not the case. It turns out that even in the face of other economic giants; Bangladesh’s labor is “cheaper than anywhere else in the world.” While some smaller factories were documented making pay cuts and layoffs, most downsizing was essentially speculative – the orders for goods kept coming even after the MFA expired. In fact, Bangladesh's exports increased in value by from US $500 million in 2006 to US $1000million in 2014.

Regulatory Standards

For textiles, like for many other products, there are certain national and international standards and regulations that need to be complied with to ensure quality, safety and sustainability.

25 Global Powerloom Industry

A Powerloom is a mechanised loom powered by a line shaft. The first Powerloom was designed in 1784 by Edmund Cartwright and first built in 1785. It was refined over the next 47 years until a design by Kenworthy and Bullough made the operation complete.

By 1850 there were 260,000 in operation in England. Fifty years later came the Northrop

Loom that would replenish the shuttle when it was empty and this replaced the Lancashire loom.

Shuttle looms

The huge components of the loom are the warp beam, heddles, harnesses, shuttle, reed and take up roll. In the loom, yarn processing includes shedding, picking, battening and taking- up operations.

● Shedding

Shedding is the raising of the warp yarns to form a loop through which the filling yarn,

carried by the shuttle, can be inserted. The shed is the vertical space between the raised

and un-raised warp yarns. On the modern loom, simple and intricate shedding operations

are performed automatically by the heddle or heald frame, also known as a harness.

This is a rectangular frame to which a series of wires, called heddles or healds, are

attached. The yarns are passed through the eye holes of the heddles, which hang vertically

from the harnesses. The weave pattern determines which harness controls which warp

yarns, and the number of harnesses used depends on the complexity of the weave. Two

common methods of controlling the heddles are dobbies and a Jacquard Head.

● Picking

As the harnesses raise the heddles or healds, which raise the warp yarns, the shed is

created. The filling yarn is inserted through the shed by a small carrier device called a

shuttle. The shuttle is normally pointed at each end to allow passage through the shed.

In a traditional shuttle loom, the filling yarn is wound onto a quill, which in turn is

26 mounted in the shuttle. The filling yarn emerges through a hole in the shuttle as it

moves across the loom. A single crossing of the shuttle from one side of the loom

to the other is known as a pick. As the shuttle moves back and forth across the shed, it

weaves an edge, or selvage, on each side of the fabric to prevent the fabric

from raveling.

● Battening

As the shuttle moves across the loom laying down the fill yarn, it also passes through

openings in another frame called a reed (which resembles a comb). With each picking

operation, the reed presses or battens each filling yarn against the portion of the fabric

that has already been formed. The point where the fabric is formed is called the fell.

Conventional shuttle looms can operate at speeds of about 150 to 160 picks per minute.

With each weaving operation, the newly constructed fabric must be wound on a cloth

beam. This process is called taking up. At the same time, the warp yarns must be let off

or released from the warp beams. To become fully automatic, a loom needs a filling

stop motion which will break the loom, if the weft thread breaks.

● Operation

Operation of weaving in a textile mill is undertaken by a specially trained operator known

as a weaver. Weavers are expected to uphold high industry standards, and are tasked with

monitoring anywhere from ten, to as many as thirty separate looms at any one time.

During their operating shift, weavers will first utilize a wax pencil or crayon to sign their

initials onto the cloth to mark a shift change, and then walk along the cloth side (front) of

the looms they tend, gently touching the fabric as it comes from the reed. This is done to

feel for any broken "picks" or filler thread. Should broken picks be detected, the weaver

will disable the machine and undertake to correct the error, typically by replacing the

bobbin of filler thread in as little time as possible. They are trained, that ideally, no

machine should stop working for more than one minute, with faster turnaround times

being preferred.

27 Series of initial inventors

A series of inventors incrementally improved all aspects of the principle processes and the ancillary processes in Powerloom Industry :

● Grimshaw 1790 Manchester-dressing the warp

● Austin 1789, 1790-dressing the warp, 200 looms produced for Monteith of Pollockshaws 1800

● Thomas Johnson, 1803, Bredbury-dressing frame: Factory for 200 Steam Looms on Manchester 1806, and two factories at Stockport 1809. One at Westhoughton, Lancashire 1809.

● William Radcliffe of Stockport 1802-improved take up mechanism

● John Todd of Burnley 1803-a heald roller and new shedding arrangements, the healds were corded to treadles actuated by cams on the second shaft.

● William Horrocks of Stockport 1803-The frame was still wooden but the lathe was pendant from the frame and operated by cams on the first shaft, the shedding was operated by cams on the second shaft, and the take up motion was copied from Radcliffe.

● Peter Marsland 1806-improvements to the lathe motion to counteract poor picking

● William Cotton 1810-improvements to the letting off motion

● William Horrocks 1813 -Horrocks Loom Modifications to the lathe motion- improving on Peter Ewart 1812 -a use of pneumatics

● Joseph and Peter Taylor 1815 -double beat foot lathe for heavy cloths

● Paul Moody 1815- produces the first Powerloom in North America. Exporting a UK loom would have been illegal.

● John Capron and Sons 1820- installed the first Powerlooms for woollens in North

America at Uxbridge, Massachusetts.

● William Horrocks 1821-a system to wet the warp and weft during use, improving the effectiveness of the sizing

● Richard Roberts 1830-Roberts Loom, These improvements were a geared take up wheel

and tappets to operate multiple heddles

28 ● Stanford, Pritchard and Wilkinson- patented a method to stop on the break of weft or

warp.

● William Dickinson - Blackburn Loom the modern overpick loom

Further useful improvements

Furher useful improvements that are contained in patents :

● Hornby, Kenworthy and Bullough of Blackburn 1834- the vibrating or fly reed

● John Ramsden and Richard Holt of Todmorden 1834- a new automatic weft

stopping motion

● James Bullough of Blackburn 1835- improved automatic weft stopping motion and taking

up and letting off arrangements

● Andrew Parkinson 1836- improved stretcher (temple).

● William Kenworthy and James Bullough 1841- trough and roller temple (became the

standard), A simple stop-motion.

At this point the loom has become automatic except for refilling weft pirns. The Cartwight loom weaver could work one loom at 120-130 picks per minute- with a Kenworthy and

Bullough's Lancashire Loom, a weaver can run up to six looms working at 220-260 picks per minute- thus giving 12 times more through put.

Powerlooms and the Manchester context

The development of the powerloom in and around Manchester in Britain was not a coincidence. Manchester has been a centre for Fustians by 1620 and acted as a hub for other Lancashire towns, so developing a communication network with them. It was an established point of export using the meandering River Mersey, and by 1800 it had a thriving canal network, with links to the Ashton Canal, Rochdale Canal the Peak Forest Canal and

Manchester Bolton & Bury Canal of Britain. The fustian trade gave the towns a skilled workforce that was used to the complicated Dutch Powerlooms, and was perhaps accustomed to industrial discipline. While Manchester became a spinning town, the towns 29 around were weaving towns producing cloth by the putting out system. The business was dominated by a few families who had the capital needed for the investment in new mills, and buy hundreds of looms. The mills were built along the new canals so immediately had access to their markets. Spinning developed first, and until 1830 the handloom was still more important economically than the Powerloom when the roles reversed. Because of the economic growth of Manchester, a new industry of precision machine tool engineering was born and here were the skills needed to build the precision mechanisms of a Powerloom

Adoption

Draper's strategy was to standardise on a couple of models which it mass-produced. The lighter E-model of 1909 was joined in the 1930 by the heavier X-model. Continuous fibre machines, say for rayon, which was more break-prone, needed a specialist loom. This was provided by the purchase of the Stafford Loom Co. in 1932, and using their patents a third loom the XD, was added to the range. Because of their mass production techniques they were reluctant and slow to retool for new technologies such as shuttleless Powerlooms.

Decline and reinvention

Originally, powerlooms used a shuttle to throw the weft across, but in 1927 the faster and more efficient shuttleless Powerloom came into use. Sulzer Brothers, a Swiss company had the exclusive rights to shuttle less looms in 1942, and licensed the American production to Warner & Swasey. Today, advances in technology have produced a variety of Powerlooms designed to maximise production for specific types of material. The most common of these are Sulzer shuttle less weaving machines, rapier Powerlooms, air-jet Powerlooms and water-jet looms.

Social and economic implications

The powerloom reduced demand for skilled hand weavers, initially causing reduced wages and unemployment. Protests followed its introduction. For example, in 1816 two thousand

30 rioting Calton weavers tried to destroy powerloom mills and stoned the workers. In the longer term, by making cloth more affordable the powerloom increased demand and stimulated exports, causing a growth in industrial employment, albeit low-paid. The powerloom also opened up opportunities for women mill workers. A darker side of the powerloom's impact was the growth of employment of children in powerloom mills.

Dangers

When operated by a skilled and attentive weaver, Powerlooms are not dangerous by themselves. However, there are a number of inherit dangers in the machines, which inattentive or poorly trained weavers can fall victim to. The most obvious is the moving reed, the frames which hold the heddles, and the "pinch" or "sand" roll utilized to keep the cloth tight as it passes over the front of the machine and onto the doff roll. The most common injury in weaving is pinched fingers from distracted or bored workers, though this is not the only such injury found. There are numerous accounts of weavers with long hair getting it tangled in the wrap itself and having their scalp pulled away from the skull, or large chunks of hair pulled off. As a result of this, it has become industry standard for companies to require weavers to either keep hair up and tied, or to keep their hair short so as not to allow it to become tangled. Also, due to possible pinch points on the front of machines, loose, baggy clothing is prohibited. One complication for weavers, in the terms of safety, is the loud nature in which weave mills operate. Because of this, it is nearly impossible to hear a person calling for help when entangled, and has led Powerloom Industry to outline specific guidelines for companies to mitigate the chance of such circumstances from happening. However, even with such guidelines in place, injuries in textile production, due to the machines themselves, are still commonplace. The growth of the powerloom industry, in India started with the loosing of the ground by the textiles mills. The powerlooms were first introduced in India in the starting of the 20th century. The labours of the textile mills refurbish the discarded powerlooms and started the small units as a small and cottage industry. It was the existence of the decentralized sector of Powerloom industry. The other reason for the growth of the powerloom industry was conversion of handlooms into Powerlooms. In 1954, for the economic development of the handloom

31 weavers, the scheme of conversion of handloom to powerlooms was introduced by the

Indian Government. In 1930 there were about 3000 Powerlooms in the country while at the end of 2014 it was raised to about 22.05 lakh powerlooms in the country. The powerloom industry is spread all over India. The major states are Maharashtra, Tamil Nadu,

Gujarat, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, Punjab, Rajasthan, Karnataka, and Haryana. Maharashtra occupies a premier position in the textile map of the country.

There are about 11.06 lakh powerlooms in Maharashtra. The state of Maharashtra has the prominent textile centers such as Bhiwandi, Malegaon, Ichalkaranji, Solapur, Nagpur etc.

Powerloom industry in Maharashtra is more rapidly growing industry than in other states in India. The Powerloom industry is the biggest small scale industry of Maharashtra.

INDIA’S POWERLOOM INDUSTRY

Indian scenario of weaving looms

Though weaving is one of the important sector for Indian textile industry, it has not been given due attention like spinning sector. Moreover structure of the industry plays a major role in making it competitive. Nature of this sector is mainly unorganized. The sector consists of fragmented, small and often, un-registered units that invest low amount in technology and practices especially in the powerloom, processing, handloom and knits.

India has world’s largest installed base for Powerlooms. There are approximately 5mn powerlooms in the country. India has 1.94mn Shuttle looms which is 45% of world capacity, and 3.90mn handlooms which is 85% of world capacity.

Powerloom

The powerloom sector produces more than 60% of cloth in India and textile ministry’s estimation says that more than 60% of the country’s cloth exports originated from that sector. With its employment of 4.86mn workers, the powerlooms sector comprised approximately 60% of total textile industry employment

32 As per textile ministry of India up till March 31, 2014, the powerlooms sector — which produces various cloth products, including greige and processed fabrics — consisted of 430,000 units with 1.94mn powerlooms. The ministry projected the number of Powerlooms to rise to 2.05mn in 2015-16.

But modernization in Powerlooms is less and Indian industry still lags significantly behind US, China, Europe, Taiwan etc. Most of the Powerlooms currently in country are shuttle- less. There are less than 15,000 modern Powerlooms, whereas traditional Powerlooms are in large numbers. Value addition and the manufacturing of fabrics according to customer’s compliances, is not possible due to obsolete technology of Powerlooms.

Shuttleless looms

Shuttleless weaving looms are up to three times more efficient than shuttle Powerlooms, but the penetration of modern shuttleless Powerloom is very less. In 2014, there were some 27,000 shuttleless cotton Powerlooms in Indonesia, 21,000 in Thailand and 10,000 in India. In world share of shuttle less looms India ranked 9th. Following chart shows comparison of shuttle less loom proportion of India with other countries.

Fig 1.2 : Proportion of shuttle less looms in different countries

Source: www.tifac.org.in (2015)

33 As described in the chart/fig. 1.2 India has lowest number of shuttle less looms among all competing countries. While competitors like China and Indonesia are far ahead in this modernization. USA and Russia has highest proportion of modern shuttleless Powerlooms.

Challenges and Adversities

The Indian Powerloom industry is small scale unlike industry of China and Taiwan and therefore incurs high Production cost.

Higher power tariff is also one of the biggest challenges this industry is facing. Unlike spinning industry Powerloom sector is mostly concentrated in small areas of India, where power fluctuation is a matter of routine. Productivity also gets affected time to time by fluctuation in power in such areas.

Through Technology Up-gradation Scheme (TUFS) Indian Government is trying to modernize these sector and make import of latest technology looms easier and affordable.

Still India lags behind in productivity due to outdated technology and low penetration of shuttleless Powerlooms.

Advance technology installation, skilled labor to understand and install such facilities, shortage of skill labor is also a roadblock in adaptation of new technology in weaving

Powerloom industry.

Technological Developments

Along with increasing trend of importing new technology shuttleless Powerlooms, there is, however, a recent trend of investment in setting up hi-tech, stand-alone mid-size weaving companies focusing on export markets. For example groups like Shanmugavel Group of

Dindigul, Tamil Nadu is planning to install 200 new air jet looms and has already placed orders for 30 air jet looms.

TIFAC- (India’s leading institute which focuses on textile machinery up gradation) is partnering with Indian textile manufacturing industry to invent new generation of High-

34 tech weaving looms. Some of the products developed by these joint efforts include a rapier shuttle less loom (4-weft color), which is developed to suit for Indian condition with M/s. Sree Andal & Co., Komrapalayam. The width of this rapier loom is 72" with speed of 250 rpm.

A project for the development of air-jet and 8-weft color rapier loom was also taken up with M/s. Industrial Engineering Works. This company is developing some modern age indigenous looms like Air jet, Rapier and Dobby which can be fit into Indian industrial conditions well.

The powerloom sector occupies a pivotal position in the Indian textile industry. Though current growth of this sector has been restricted by technological obsolescence, fragmented structure, low productivity and low-end quality products, in future Technology would play a lead role in this sector and will improve quality and productivity levels.

Innovations would also be happening in this sector, as many developed countries would be innovating new generation machineries that are likely to have low manual interface and power cost. Indian textile industry should also turn into high technology mode to collect the benefits of scale operations and quality.

To reap benefits of these developments Indian powerloom industry has to prepare itself for drastic technological changes and will have to focus on area such as Technology up gradation: modernization of Powerloom Service Centers and testing facilities and

Clustering of facilities to achieve optimum levels of production; Welfare schemes for ensuring a healthy and safe working environment for the workers in future.

Powerloom Industry in Maharashtra

Powerloom Industry is small scale industry which is one of the job oriented rural industries contributing to its full capacity to the growth & development of our Country. The industry is rightly called a small scale industry as it requires small capital investment & less maintenance cost. Owing to this, the Industry is mostly wide spread in rural areas.

35 There are approx. 9.24 lakhs Powerlooms in Maharashtra State. (Source: MSPC, 2014)

Most of the Powerlooms are either discarded Powerlooms of Mill Sector or locally manufactured. The Powerloom Industry has been clustered and flourished in the following prominent powerloom centers in Maharashtra – Bhiwandi [Thane Dist.], Ichalkaranji

[Kolhapur Dist.], Sholapur [Sholapur Dist.], Malegaon [Nasik Dist.], Dhule [Dhule Dist.], and Sangli [Sangli Dist.]. Most of these Powerlooms are working in decentralized sector.

The Powerloom Sector mostly comprises of small units containing 2 to 4 powerlooms and these Powerloom Units are working on job work basis i.e. powerloom holders are obtaining raw material from the traders and supplying woven cloth in turn at certain terms and rate of wages. The Powerloom Sector provides direct employment to about 10 lakh persons.

Maharashtra State Powerlooms Corporation Ltd.

Established in the year 1972, "Maharashtra State Powerlooms Corporation Limited" (MSPC) is counted among the government companies that supply and trade comprehensive range of Cotton Garments and Dress Material. The range is appreciated for its elegant designs, exquisite craftsmanship and intricate detailing.

MSPC started its journey in order to promote the powerloom weavers and other ancillary workers in the Powerloom Sector under patronage of Agriculture & Cooperation

Department, which is also known as Cooperation, Marketing & Textiles Department,

Government of Maharashtra. Their authorized share capital is Rs. 20 crores rupees and paid up share capital is Rs.1268.30 lakhs rupees.

The firm is headed by a Board of Directors, where the members are directly appointed by the Honourable Governor of Maharashtra. The organization has grown by leaps and bounds in last 3 decades and has gained a distinct position of high repute in the Powerloom industry.

MSPC is incorporated under the Companies Act, 1956 as Government Company on 1.2.1972 and 100% Share Capital is held by Government of Maharashtra.

36 MSPC Business Activities 1. Cloth Production Activity : At present MSPC is implementing the cloth production programme at Powerloom Centers like Ichalkaranji, Karad, Malegaon and Nagpur. 2. Employment Generation :

Under the Production Programme implemented at Powerloom Centers - Ichalkaranji, Karad, Malegaon and Nagpur, MSPC provides continuous employment to weavers and other workers by paying them conversion charges for cloth woven by them.

3. Cloth Sales Activities :

MSPC supplies cloth produced to Govt. Departments, Semi Govt. Organizations, Nagar Parishads, Govt. Hospitals on wholesales at the rates specified by the Central Stores Purchase Organization and also sells powerloom cloth like Sarees, Lungies, Bed Sheets, Pillow covers, Blouse pieces, Dress Material and Curtain Cloth through its Retail Shop situated at Head Office, Mumbai and by participating in Exhibitions organized by Grahak Peth in Mumbai.

4. Marketing Assistance to the Powerloom Cooperative Societies financed by MSPC : MSPC also assists the Powerloom Cooperative Societies in marketing of cloth produced as per specifications of MSPC. Under this activity, MSPC provides them marketing assistance so as to enable these societies to function independently and continuously without difficulties in marketing.

Products of MSPC

● Various qualities of Uniform Cloth as per requirement of concerned Govt. Departments Viz., Govt. Organizations./ Nagar Parishad etc. for whole sales.

● Cotton Sarees - 5.50 Mtr. & 9.00 yards.

● Cotton Punjabi Suits & Gowns.

● Blouse Pieces.

● Cotton Bed Sheets and Pillow Covers - Plain and Colored - Single & Double bed sheets.

37 Main objectives of MSPC

● To supply improved equipment and accessories required for Powerloom Industry.

● To supply raw materials required for the Powerloom Industry.

● To assist in the marketing of products of the Powerloom Weavers.

● To install and run dye-houses, plants for pre-weaving facilities, bleaching, calendaring,

mercerizing, printing, anti-shrink processing and other processing plants required for

the Powerloom Industry.

● To raise finance for the above purposes by issue of Share Capital, Debentures, Bonds,

or by raising loans or accepting deposits with or without guarantee of the Government

of Maharashtra.

● To carry on all kinds of agency business relating to the above.

● To undertake the study of and preparation of project reports, feasibility studies and to

act as general consultant in Powerloom trade.

● To establish, erect, buy, sell, organize, own, conduct, supervise, manage Spinning and

Weaving Mills, and carry on business of Ginners, Spinners, Weavers, Dyers,

Manufacturers, Balers, and Pressers of all kind of fibrous materials and cultivation

thereof, tanning, preparing, coloring, dyeing and bleaching, processes and purchasing

and vending the raw materials and manufactured articles, combing, bleaching, printing,

selling and otherwise dealing in all kinds of cloth, textiles, and goods made of fibers.

Product Portfolio

MSPC is counted amongst the eminent suppliers and traders of a gamut of Cotton Garments and Dress Material. Their range is made using powerlooms and is appreciated for its elegant designs and impeccable finish. Designed in sync with prevailing fashion trends, their range is widely acclaimed across the country. They procure the range from reliable vendors, who manufacture the same using high grade raw material.

38 The products MSPC offer are categorized in the below mentioned table: Category Products

● Grey Cloths ● Plain Shirting ● Bed Sheet & Sholapur Chaddar ● Embroidered Cotton Dress Material ● Ladies Nighty ● Pillow Cover Cotton Garments ● Cotton Towels and Dress Material ● Blouse Pieces ● Checks Lungi ● Ladies Petticoat

● Boutique Dress Material ● Printed Cotton Dress Material

● Cotton 6,9 yard Sarees

Features

● Attractive color combinations

● Proper finish

● Elegant designs

● Intricate craftsmanship

● Colorfast

● Easy to wash

● Durable

● Skin friendly

Vendor Base

In order to meet the growing demands of the market, MSPC has associated with prominent vendors in powerloom industry. They manufacture the wide variety of Cotton Garments and Dress Material at their well-established crafting units. The vendors make use of quality raw material and advanced powerlooms & other tools for weaving and crafting the products.

39 Further, they stringently test the products so as to ensure its conformity to international quality standards. Being a client-conscious firm, MSPC is very particular about selecting the vendors. Following are some of the factors on which these vendors are selected:

● Industry experience

● Market reputation

● Quality standards delivered

● Capacity to handle bulk orders

● Timely delivery

40 CHAPTER 2

LITERATURE REVIEW & GAP ANALYSIS

41 CHAPTER 2 LITERATURE REVIEW & GAP ANALYSIS

An elaborate review of the literature has been made with a view to analyse the nature and scope of several studies pioneered so far in the fields of fertilizers supply chain management and logistics management. The main objective of this review is to evaluate the current level of knowledge and to focus on the objectives of the present study.

Relevant books, newspapers, magazines, journals, seminar reports, case study materials containing key issues on several aspects of Powerloom Industry in Maharashtra and behavioural characteristics of managers were studied.

Literature Review related to PowerLoom Industries

In (1949) M. M. Mahta studied the trends in size of cotton spinning and weaving units at different clusters like Bombay (Mumbai), Ahmadabad, Madras (Chennai) and other important clusters of the country for the period of 1905 to 1944. He emphasized on the size of the industrial units in weaving industry.

Nityanand Kanungo (1954) mentioned that the Government of India appointed the Textile

Enquiry Committee under the chairmanship of Shri Nityananda Kanungo to study the problem and prospects of Indian textile mills and also the decentralized handloom and powerlooms sector. The Kanungo Committee stressed the need for technological up gradation of the handloom industry. One of the significant recommendations of the committee was the gradual conversion of handlooms into powerlooms in the cooperative field. This would enable the handloom industry technically more efficient and would improve the standard of weaving.

The committee felt that this would give a boost to the development of powerloom sector in rural and semi-rural areas.

42 National Council of Applied Economic Research (1959) NCAER conducted a survey

"Survey of Handloom Industry in Karnataka and Sholapur". The survey made a comprehensive study of the handloom industry in Karnataka and in Sholapur district in Maharashtra. Important areas of the survey included the cost structure of the handloom units, financial and organizational problems faced by the handloom industry. The study has revealed significant facts on these very vital areas of the handloom industry in Karnataka and in Sholapur where there is a concentration of handloom industry. The findings have good policy implications for improvement of the industry.

Government of India (1964) set up the Powerloom Enquiry Committee 1964 headed by

Ashok Mehta to enquire into the problems of powerloom industry. The committee focused on the financial needs of the powerloom sector in the country. The committee's findings had great relevance for formulating new policies towards the strengthening of the powerloom industry and improving its financial base.

Tata Economic Consultancy Services (1973) conducted the study on "Manmade Fibre

Fabrics a Necessity or Luxury?" covering All India market on the consumer preferences for textiles. The study revealed that the consumption of manmade fibre based fabrics is not restricted to a few households in metropolitan cities and urban towns. The demand has spread to the households around and below the poverty line pople residing in distant rural villages.

V.B. Angadi (1976) in his pioneer research study on the "Economics of handloom and powerloom industry in Karnataka with special reference to Bijapur district" examined the condition of handloom and powerloom industry in Bijapur district. The study has identified the main problems faced by handloom and Powerloom industry, as paucity of working capital, lack of modernization, non-availability of training facilities etc.

S.V. Chorghade (1976) studied the "Powerloom Industry in Maharashtra" and mentioned that Maharashtra state has a lion's share in the growth and development of the Powerloom industry. He attempted to undertake a detailed study of structure and problems of Powerloom industry in Maharashtra.

43 P. R. Ojha (1978) studied the dividend distribution of 51 cotton textiles companies. He analyzed the dividend distribution of the companies on the basis of size, region, ownership group, management pattern and age of the companies.

Kalipada Basu (1979) in his research paper "Powerloom industry in West Bengal" has analyzed the various problems faced by the powerloom units of West Bengal, especially about the payment of minimum wages to workers.

R. R. Ansari (1984) explained the marketing problems of Powerloom industry in Malegaon

City of Nashik District. He has very specifically indicated the marketing problems faced by the Powerloom industry.

Omkar Goswami (1985) analyzed the demand and supply in the cotton textile industry.

According to him, only the Powerloom sector and the pure spinning units seem to be doing well. Sixty five to seventy percent of composite mills and the entire handloom sector are sick.

Mahapatro P. C (1986) in his work "Economics of Cotton Handloom Industry in India" has made an attempt to study the economic history of the Handloom Industry in Orissa and its relevance to the economy of the state. He has studied capital and organizational structures of the industry, output and employment aspects of the industry and the income of the weaving households and their economic conditions. However, the study has analyzed the role of

Handloom cooperatives in the development of Handloom Industry.

Dr. D. N. Sonatakki (1986) analyzed the structural patterns and development patterns including cost and non-cost structure of this industry. He has also made comparative study of urban and rural centers in Belagavi district. But he has not dealt with the socioeconomic conditions of powerloom weavers. An account of the important centers of the industry and its problems in the district has been presented. 44 V. S. Mangnale (1987) in his research work about labour absenteeism in Textile Industry in

Solapur, attempted to identify the causes of labour absenteeism in textile town of Solapur.

He studied the nature of absenteeism and highlights the different dimensions of the problem.

Government of India (Ministry of Labour) (1988) conducted a detailed survey on

"Working and Living Conditions of Workers in Powerloom Industry in India". The survey has revealed that a majority of the powerloom units have not provided good working conditions to workers. The very nature of the units which are cottage industries have come in the way in providing the needed facilities for a decent working conditions to the workers in the powerloom industry.

K.B. Awade (1988) in his thought provoking research paper "Powerlooms sentenced to

Death?" highlighted the chronic problems faced by the decentralized powerloom industry and injustice caused to the powerloom sector by the Textile Policy of 1985.

Rama Mohan Rao K (1990) Rama Mohan Rao K in his book "Development of Handloom

Industry" has touched the socioeconomic profile of the weavers in handloom industry in

Andhra Pradesh. He has presented an overall view of the performance of primary weavers' cooperative societies, and not an in-depth assessment of the performance of these primary weavers' cooperative societies.

B. S. Pani (1990) in his paper "Handloom Development Policy-A critical Appraisal" concluded that, the handloom sector is now facing a deeper crisis and it may have to face the danger of its liquidation in the coming decade, if present trends continue. He suggested measures like, modernizing the handloom sector on a war footing plane, altering the production structure to suit consumer preferences, strengthening the private sector in the handloom industry, scrapping the controlled cloth scheme, regulating the supply and prices of yarn, chemicals and dyes and enforcing restrictions on further expansion of capacity in mills and powerlooms.

45 S. O. Halasagi (1991) in his M.Phil dissertation on "Marketing of Powerloom Products in

Bijapur District - A Case Study of Rabkavi", pointed out that lack of marketing organization and poor marketing efforts by unit owners is mainly responsible for the present crises in the industry.

R. S. Gandhi, Y. S. Mehta and A. B. Talele (1992) highlighted the salient features of the decentralized textile industry viz. Powerloom industry. The study has made comprehensive analysis of the system dimension, production technology, cost and finance structure, and marketing and distribution channels of the powerloom industry. The study has focused on non-economic factors and their influence on the efficiency of handlooms and Powerlooms.

B. M. Dolle (1992) in his research work revealed the socio - economic problems of

Powerloom industry in Malegaon. He studied the Powerloom industry of Malegaon for the period of 1935 to 1985. The main conclusions of the study are; the powerloom industry in

Malegaon has seen many ups and downs in its development and it is one of the important industries of Maharashtra. The powerloom industry in Malegaon has glorious past and bright future. There are many socio economic problems in the powerloom industry of Malegaon like scarcity of the finance, marketing problems, labour problems, etc.

D. C. Mathur (1993) in his book "Personnel Problems and Labour Welfare A study of cotton textile industry" had explained about personnel management in the cotton textile industry. He explained that for the economic results the management of personnel is very important.

B. Sabhoo (1993) explained the problems and prospects of textile industry with special reference on the productivity of large and small scale units by the study of terms of employment of workers in Malegaon.

S. A. Siddhanti (1993) in his Ph.D. thesis on "Working Capital Management in Powerloom

Industry-A Case Study of Gadag Betageri", highlighted the fact that a majority of powerloom units in the study area have been suffering from inadequacy of working capital

46 which has created many operational problems. Powerloom unit owners have no scientific knowledge of assessment and management of working capital. He has pointed out that there is lack of awareness among the majority of powerloom unit operators regarding scientific forecast, planning and controlling techniques for effective management of working capital.

L. C. Jain (1993) in his paper "Handlooms Face Liquidation, Powerlooms mock at Yojana

Bhavan", expressed deep concern over the crisis affecting the handloom industry. A substantial portion of production is being sold today as handloom production.

Aswini Kumar Mishra (1994) found that member weavers do not gain anything so for as exposure to mass media is concerned. Their association with cooperative organization does not help in participation in different organizational matters except the cultural one.

Rajkishor Meher (1995) in his paper "The Handloom industry and the socioeconomic conditions of weavers in Orissa" critically examined that due to lack of proper organizational efforts this traditional cottage industry is losing its attractive occupational status. Even the highly skilled weavers fail to make ends meet by solely depending upon this occupation. As a majority of weavers are illiterates and semi-literates, the weavers' cooperative society at the village level is found to be under the effective control of dominant non-weaving and vested interest group consisting of private master weavers, petty merchants and the like.

S. S. Hooli (1995) in his Ph.D. thesis on "Problems of Marketing of Powerloom Products with Special Reference to Bijapur District-A Diagnostic Study", pointed out that, lack of modernization, inadequate working capital, lack of institutional framework, rising cost of raw materials, etc are the important hurdles in the way of smooth working and development of the industry and are mainly responsible for the present crisis in the industry. Therefore, the researcher has suggested both the central as well as state governments to give attention towards the economic upliftment of the weavers' community.

Dr. Iranna Hatti (1996) has made an attempt to study the structure, organization, finance and working of the marketing products of powerloom Industry in the Ph.D. thesis titled "The

47 critical review of economic problems and prospects of cotton powerloom industry in

Bombay-Karnataka region: A case study of cotton Powerloom industry in Rabkavi Banhatti area". The researcher has made stray references about Handloom industry in the region.

B. Nagaraju and S. C. Narayan (2003) in their paper "Impact of Reforms on Handlooms and Powerlooms: A case study of chittoor District Andhra Pradesh" explained that, National

Textile Policy (NTP, 2000) aimed at making the textile industry globally competitive. The handlooms and powerlooms have gone through a major transition since 1992. The High

Power Committee Constituted to study and suggest measures for the development of handloom weaving preferred the concept of setting aside the vast and extensive local markets and concentrates on dependence on the volatile foreign markets for their development. This is not according to our motto of 'self-sufficiency'. Hence, it is imperative to design the region specific and resource specific development plans depending upon the local skills and market structure.

Ashok Mohanty and S. C. Acharya (2003) in their paper "Strategy for the Growth and

Survival of Small Scale Sector in Orissa: A Case Study of Sambalpuri Bastralaya Handloom

Cooperative Society Ltd", expressed their opinion that, the society, which was once a profit making organization up to 1995, is now struggling for its survival in the form of early release of the funds to the society from the central and state government organizations, rescheduling of loans of district central cooperative bank, effective control of financial management and inventory control system, computerization and developing modern management information systems, an independent research and development unit, etc.

Seemanthini Niranjan (2004) in her paper "Thinking with Handlooms Perspectives from

Andhra Pradesh", expressed her views on handloom industry by saying that; today's globalised macroeconomic processes have also affected the non-formal Sector and a contemporary understanding of the nature of handloom industry and its responses are very important. The perspectives on handlooms tend to see it as a traditional activity on the decline. There is lack of understanding of the very structure of the handloom industry and its field dynamics. 48 Savita Modak (2006) analyzed the success story of Fabindia-a company for export and retail marketing of handlooms. She says that Fabindia clearly shows that its success as a major player in retail handloom sector in India is due to the fact that the company has always believed in "good business practices and never compromised on best quality".

Poonam Bir Kasturi, Swati Wanakar, Rolf Marren, Subana Medappa (2006) expressed their opinion that, the handloom industry, if managed well, can provide wealth and prosperity to rural India. This needs people who can understand how to invest in social and natural capital over a long period, with a concomitant ability to manage the process.

Dharmaraju P. (2006) in his paper "Marketing in Handloom Cooperatives", expressed his view that, over the decades, the experience of handloom cooperatives has been a mixed one.

The arbitrary mergers, excessive control by master weavers and local power groups, politicization and bureaucratization and mismanagement of funds, are some factors that have obstructed the efficient functioning of cooperatives.

Annapurana M. (2006) mentioned that, despite many anticipations of the decline of handloom sector, the resilience of the handloom market in India demonstrates an inherent quality of the product as well as the many intangible associations it carries for its customers. The firms associated with the marketing of handloom products must use different strategies to face various challenges.

D. Narasimha Reddy (2008) is of the opinion that, it is time that, government recognized the value of the handloom sector in achieving sustainable development of the country. Despite the adverse conditions, due to larger support from consumers and being a livelihood option for millions of weavers, Handloom sector has been surviving and has the potential to be so.

Government has to ensure a 'level playing field' for this sector towards competition among the different sub-sector of textile industry.

49 Latha Krishnan, T. J. Kamalnabhan (2015) highlighted the direct relationship between entrepreneurial attitudes related constructs and entrepreneurial competencies related factors, leading to entrepreneurial success, and life satisfaction among women micro entrepreneurs.

Dr. Anjana Khanna (2015) highlights the impact of globalization and liberalization on exports of textile industry. Few studies have also been conducted to estimate the impact of ATC

(Agreement on Textiles & Clothing) expiry on textile trade. It was found that the small scale textile industry had not been able to absorb the benefits of ATC phase out. Also, the overall competitiveness of textile industry had not enhanced due to lack of productivity, quality control etc. However, impact of ATC on textile exports was positive, though insignificant.

Literature related to Impact of Behavioural Characteristics on various job aspects

Richard H. J. & Edward E. L. (1971) Developed and tested a conceptual framework specifying the conditions under which jobs will facilitate the development of internal motivation for effective performance. In this study were taken 62 supervisors and 208 telephone company employees who worked on 13 different jobs. Primary independent variables were (a) a measure of strength of desire for the satisfaction of higher order needs

(e.g., obtaining feelings of accomplishment, personal growth); and (b) descriptions of jobs on 4 core dimensions (variety, autonomy, task identity, feedback). It was predicted and found that when jobs are high on the 4 core dimensions, employees who are desirous of higher order need satisfaction tend to have high motivation, have high job satisfaction, be absent from work infrequently, and be rated by supervisors as doing high quality work.

Williams L. J. & Anderson S. E. (1991) mentioned that previous organizational citizenship behavior (OCB) research (a) has not demonstrated that extra-role behaviours can be distinguished empirically from in-role activities, and (b) has not examined the relative contributions of components of job satisfaction and organizational commitment to the performance of OCBs. Factor analysis of survey data from 127 employees' and supervisors supported the distinction between in-role behaviours and two forms of OCBs. Hierarchical regression analysis found two job cognitions variables (intrinsic and extrinsic) to be

50 differentially related to the two types OCBs, but affective variables and organizational commitment were not significant predictors.

Ostroff C. (1992) mentioned that previous researches have consistently shown little relationship between job satisfaction, job attitudes, and performance for individuals, but little work has investigated these relationships at the organizational level of analysis. This study investigated the relationship between employee satisfaction, other job-related attitudes

(commitment, adjustment, and psychological stress), and organizational performance.

Organizational performance data were collected for 298 schools; employee satisfaction and attitude data were collected from 13,808 teachers within these schools. Correlation and regression analyses supported the expected relationships between employee satisfaction/ attitudes and organizational performance. Implications of these findings were also discussed.

Davis F. D. (1993) stated that lack of user acceptance has long been an impediment to the success of new information systems. The present research addresses why users accept or reject information systems and how user acceptance is affected by system design features.

The technology acceptance model (TAM) specifies the causal relationships between system design features, perceived usefulness, perceived ease of use, attitude toward using, and actual usage behavior. Attitude theory from psychology provides the rationale for hypothesized model relationships, and validated measures were used to operationalize model variables. A field study of 112 users regarding two end-user systems was conducted to test the hypothesized model. TAM fully mediated the effects of system characteristics on usage behaviour, accounting for 36% of the variance in usage. Perhaps the most striking finding was that perceived usefulness was 50% more influential than ease of use in determining usage, underscoring the importance of incorporating the appropriate functional capabilities in new systems. Overall, TAM provides an informative representation of the mechanisms by which design choices influence user acceptance, and should therefore be helpful in applied contexts for forecasting and evaluating user acceptance of information technology.

Implications for future research and practice are discussed.

51 Fox M. L., Dwyer D. J. & Ganster D. C. (1993) tested the job demands-job control model of stress with a group of 136 registered nurses. Significant interactions between subjective and objective measures of work load and a measure of perceived control predicting physiological and attitudinal outcomes indicated support for the model. In addition, objectively assessed job demands were significantly associated with blood pressure and Cortisol levels.

The model also predicted elevations in physiological responses after individuals left work, suggesting that potentially health-impairing reactions to jobs that have high demands and low controllability might carry over to home settings and thus pose a high risk of long-term health impairment. The results have implications for the role of personal control in occupational stress generally and for nurse-management practices specifically.

Fondas N. & Stewart R. (1994) researched into managerial jobs and behaviour has been appropriately criticized for being a contextual and a theoretical. This article proposes a theoretical model of the antecedents of a manager's impact on the expectations held by others that partially define the job. The analysis integrates research from the fields of managerial behaviour, leadership dyads, symbolic interactionism, and idiosyncratic jobs to produce a more comprehensive model of the determinants of 'expectation enactment in managerial jobs. It brings an enactment or 'emergence' perspective to the field of managerial jobs and behaviour that is consistent with recent developments in other parts of the organizations and management studies literature.

Baker D. A. & Crompton J. L. (2000) stated that the performance quality was conceptualized as the attribute of a service which is controlled by a tourism supplier, while satisfaction referred to a tourist's emotional state after exposure to the opportunity. A structural equations model hypothesized that perceived performance quality would have a stronger total effect on behavioural intentions than satisfaction. This hypothesis was confirmed. The analysis also indicated that the perceptions measure of quality fitted the hypothesized model better than data derived from the subjective disconfirmation measure.

Results suggested that evaluation efforts should include assessment of both performance

52 quality and satisfaction, but since performance quality is under management's control it is likely to be the more useful measure.

Athanassopoulous A., Gounaris S. & Stathakopoulos V. (2001) investigated the behavioural consequences of customer satisfaction. More specifically, the authors examined the impact of customer satisfaction on customers' behavioural responses. The results supported the notion of direct effects of customer satisfaction on three criterion variables

(decision to stay with the existing service provider, engagement in word-of-mouth communications, and intentions to switch service providers). Implications for study limitations, and directions for future research were also discussed.

Murphy G., Athanasou J. & King N. (2002) examined the role of organizational citizenship behaviour as a component of job performance. Participants comprised 41 human-service workers, who completed a job satisfaction questionnaire and were rated for their organizational citizenship, as well as being measured on three discretionary organizational participant behaviours. Job satisfaction correlated significantly with organizational citizenship and participation behaviours (correlations ranged from +0.40 to +0.67). Findings were consistent with the view that satisfaction may not be reflected in productivity but are evident in discretionary involvement in the workplace. Implications for monitoring and managing a wide range of employee behaviours were outlined.

Faragher E. B., Cass M. & Cooper C. L. (2003) presented the following study: Background:

A vast number of published studies have suggested a link between job satisfaction levels and health. The sizes of the relationships reported vary widely. Narrative overviews of this relationship have been published, but no systematic meta-analysis review has been conducted.

Methods : A systematic review and meta-analysis of 485 studies with a combined sample size of 267 995 individuals was conducted, evaluating the research evidence linking self- report measures of job satisfaction to measures of physical and mental wellbeing. Results :

The overall correlation combined across all health measures was (r = 0.312 (0.370 after

53 Schmidt-Hunter adjustment). Job satisfaction was most strongly associated with mental/ psychological problems; strongest relationships were found for burnout (corrected

(r = 0.478), self-esteem (r = 0.429), depression (r = 0.428), and anxiety (r = 0.420). The correlation with subjective physical illness was more modest (r = 0.287). Conclusions :

Correlations in excess of 0.3 are rare in this context. The relationships found suggest that job satisfaction level is an important factor influencing the health of workers. Organisations should include the development of stress management policies to identify and eradicate work practices that cause most job dissatisfaction as part of any exercise aimed at improving employee health. Occupational health clinicians should consider counselling employees diagnosed as having psychological problems to critically evaluate their work-and help them to explore ways of gaining greater satisfaction from this important aspect of their life.

Piccolo R. F. & Colquitt J. A. (2004) mentioned that although the effects of transformational leadership on task performance and organizational citizenship behaviour

(OCB) are well-documented, the mechanisms that explain those effects remain unclear.

They propose that transformational leadership is associated with the way followers view their jobs, in terms of Hackman and Oldham's (1976) core job characteristics. Results of the study supported a structural model whereby indirect effects supplement the direct effects of transformational leadership on task performance and OCB through the mechanisms of job characteristics, intrinsic motivation, and goal commitment. Additional analyses revealed that transformational leadership relationships were significantly stronger for followers who perceived high-quality leader-member exchange.

Yoon Y. & Uysal M. (2005) offered an integrated approach to understand tourist motivation and attempts to extend the theoretical and empirical evidence on the causal relationships among the push and pull motivations, satisfaction, and destination loyalty. The research model investigated the relevant relationships among the constructs by using a structural equation

54 modelling approach. Consequently, destination managers should establish a higher tourist satisfaction level to create positive post-purchase tourist behaviour, in order to improve and sustain destination competitiveness.

Alin Borah Bortamuly1, , Kishor Goswami (2015) identifies and analyzes the determinants of technology adoption in the handloom industry in Assam. In the case of contractual workers, age has a negative but significant influence on the adoption, whereas annual income, access to government credit, and access to training have positive and significant influences on the adoption of modern technology. As access to training and credit increases the likelihood of the adoption of modern technology for the contractual workers, adequate facilities for such determinants should be made available to the grass root workers.

Gap Analysis

Several researchers from India and abroad has provided their work behavioural characteristics of different individuals including managers and their impact on different areas. Nonetheless there is still a large scope to find out the impact of behavioural characteristics of managers on their various job aspects and that too in Powerloom industry of Maharashtra particularly.

In this chapter an elaborate literature study has been made. The literature study has provided basic foundation for the research. An attempt has been made to provide an overview of the behavioural characteristics and about powerloom industry across the country. There is large proportion of area of impact of behavioural characteristics on various job aspects which is still unsearched and needed to be explored more.

55 CHAPTER 3

OBJECTIVES AND HYPOTHESIS

56 CHAPTER 3 OBJECTIVES AND HYPOTHESIS

Objectives

The following are the objectives of this study which are derived from the research gaps:

1. To study the relationship between various behavioural characteristics and level of satisfaction of managerial staff.

2. To study the relationship between various behavioural characteristics and motivating factors of managerial staff.

3. To study and compare the extent of various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

Hypothesis

The major hypotheses for the study are:

H01 : There is no significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

H11 : There is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

H02 : There is no significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra.

H12 : There is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra.

H03 : There is no significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

H13 : There is a significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

57 Need for the study

The specific need for the study of Impact of Behavioural Characteristics on Various Job

Aspects of Managers win Powerloom industry of Maharashtra is to study the various impacts of various characteristics like self-motivated, discipline, decision maker, etc. Powerloom industry is one of the oldest industries in Maharashtra providing employment to good number of people. So, there is a very urgent need to look back the growth or changes in Powerloom industry over a period of time.

Limitations of the study

One of the main limitations of the study is geographical limitations as study has been conducted in the Maharashtra only. In future Powerloom Industries from across India can be considered for the study.

58 CHAPTER 4

RESEARCH METHODOLOGY

59 CHAPTER 4 RESEARCH METHODOLOGY

Research Methodology Provides the glue that holds the research project together. It is used to structure the research and show how all the major parts of the research project - the sample or groups, measures, treatments or programme and methods of assignments - work together to address the central research questions.

The Research Methodology followed is dipicited in the following Figure

Define Research Problem

Literature Review

Formulation of Research

Objectives and Hypothesis

Research Design

(Including Sample Design)

Data Collection

Data Analysis And Hypothesis Testing

Interpretation of Results

Figure - 4.1 : The Model of the research process followed.

60 The main Research Methodology method used are as follows :-

PRIMARY METHOD :

The basic means of obtaining primary information are observation, survey and experiment.

The choice will be involved by the nature of the problem and by availability of time. The data is collected personally through field work. It is a qualitative data consisting of various answeres and discussions that comes from the kind of open ended discussion in the questionnaire.

SECONDARY METHOD :

Before going through the time and expenses of collecting primary data, one should check for secondary data that previously may have been collected for other purpose, but can be used in the immediate study. Secondary data has the advantage of saving time and reducing data gathering cost. The sources of secondary data are websites, articles, magazines on the same or related topic

Sampling Design

Sample design covers all aspects of how the samples in surveys are specified and selected.

The design of samples is a particularly important aspect of survey methodology, and provides a basis for the sound measurement of economic and social phenomena from surveys of businesses and households.

Topics include sample frames, which list the businesses and household addresses one might select for a survey; types of sampling (for example, stratified, clustered - covering how we group businesses and households when sampling), and specification of sample sizes, with implications for costs and quality.

Finally, there is the selection mechanism used for choosing, randomly, the specific units that will make up any given survey sample.

61 Estimation is the method by which are produced aggregate estimates about characteristics of the population at large, from the responses received from those people and businesses selected in the survey samples.

There are many different ways of producing estimates (through weighting, for example), and it has to ensure the methods used to produce good quality estimates, and that these represent the whole population without bias.

As well as the estimates themselves, standard errors are calculated, which measure the statistical precision of the aggregate estimates.

Sample Size Formula

Z 2 X (p) X (1-p)

Sample Size = ------

C 2

Where: Z = Z value (e.g. 1.96 for 95% confidence level) p = percentage picking a choice, expressed as decimal

(.5 used for sample size needed) c = confidence interval, expressed as decimal

(e.g., .04 = ±4)

The Primary data was collected from the managers of the organization

The secondary data was collected from organization records, management reports, and the special project reports to understand the present state.

Questionnaire Design

The questionnaire consists of close ended questions.

62 CHAPTER 5

TEXTILE INDUSTRY

63 CHAPTER 5 TEXTILE INDUSTRY

Textile industry in India

The Textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million people in the country. The share of textiles in total exports was 11.04% in 2014, as per the Ministry of Textiles, Govt. of India. During 2013-2014,

Indian textiles industry was pegged at US$55 billion, 64% of which services domestic demand.

In 2014, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India.

The archaeological surveys and studies have found that the people of Harappan civilization knew weaving and the spinning of cotton four thousand years ago. Reference to weaving and spinning materials is found in the Vedic Literature also.

There was textile trade in India during the early centuries. A block printed and resist-dyed fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt. This proves that

Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were existing to a large extent. Large quantity of north Indian silk was traded through the silk route in China to the western countries. The Indian silk was often exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there were large export of the Indian cotton to the western countries to meet the need of the

European industries during industrial revolution. Consequently, there was development of nationalist movement like the famous Swadeshi movement

There was also export of Indian silk, Muslin cloth of Bengal, Bihar and Orissa to other countries by the East Indian Company. Bhilwara is known as textile city.

64 Production

India is the second largest producer of fibre in the world and the major fibre produced is cotton . Other fibres produced in India include silk , jute , wool , and man-made fibres .

60% of the Indian textile Industry is cotton based. The strong domestic demand and the revival of the Economic markets by 2009 have led to huge growth of the Indian textile industry.

In December 2013, the domestic cotton price was up by 50% as compared to the December

2014 prices. India projected a high production of textile (325 lakh bales for 2013-14).

There has been increase in India's share of global textile trading to 7% in five years. The rising prices are the major concern of the domestic producers of the country.

● Man Made Fibres: These include manufacturing of clothes using fibre or filament synthetic

yarns. It is produced in the large Powerloom factories. They account for the largest sector

of the textile production in India. This sector has a share of 62% of the India's total

production and provides employment to about 4.8 million people.

● The Cotton Sector: It is the second most developed sector in the Indian Textile industries.

It provides employment to huge amount of people but its productions and employment is

seasonal depending upon the seasonal nature of the production.

● The Handloom Sector: It is well developed and its market share is 13% of the total cloth

produced in India.

● The Woolen Sector: India is the 7th largest producer of the wool in the world.

● The Jute Sector: The jute or the golden fibre in India is mainly produced in the Eastern

states of India like Assam and West Bengal. India is the largest producer of jute in the world.

● The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world.

India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main

types of silk produced in the country. It is a labor-intensive sector.

65 Textile Organization

The Indian Textile industries are mainly dominated by some government, semi government and private institutions.

The major areas of the ministry of Textile, Govt. of India are:

● Textile Policy & Coordination

● Man-made Fibre Industry

● Cotton Textile Industry

● Jute Industry

● Silk and sericulture Industry

● Wool Industry

● Powerloom Sector

● Export Promotion

● Finance Matters

● Information Technology (IT)

The advisory boards include:

● All India Handlooms Board

● All India Handicrafts Board

● All India Powerlooms Board

● Co-ordination Council of Textiles Research Association

The major export promoting councils include:

● Apparel Export Promotion Council, New Delhi

66 ● Carpet Export Promotion Council, New Delhi

● Cotton Textiles Export Promotion Council, Mumbai

The major PSU or Public Sector Undertaking are:

● National Textile Corporation Ltd. (NTC)

● British India Corporation Ltd. (BIC)

● Cotton Corporation of India Ltd. (CCI)

● Jute Corporation of India Ltd. (JCI)

● National Jute Manufacturers Corporation (NJMC)

● Handicrafts and Handlooms Export Corporation (HHEC)

● National Handloom Development Corporation (NHDC)

● Export Promotion Council for Handicrafts, New Delhi

● Handloom Export Promotion Council, Chennai

● Indian Silk Export Promotion Council, Mumbai

● Powerloom Development & Export Promotion Council, Mumbai

● Synthetic & Rayon Textiles Export Promotion Council, Mumbai

● Wool & Woolen Export Promotion Council, New Delhi

Other autonomous bodies in this industry are:

● Central Wool Development Board, Jodhpur

● National Institute of Fashion Technology, New Delhi

● National Centre for Jute Diversification

The Textile Research Associations are:

● South India Textiles Research Association (SITRA), Coimbatore

67 ● Ahmadabad Textiles Industry's Research Association

● Bombay Textiles Research Association, Mumbai

● Indian Jute Industries Research association, Kolkata

● Man-made Textiles Research Association, Surat

● Synthetic and art silk -Mills Research Association, Mumbai

● Wool Research Association, Thane

● Northern India Textiles Research Association, Ghaziabad

Organized sector

According to Kearney's 'Retail Apparel Index' India ranked as the fourth most promising market for apparel retailers in 2014.

There is large scope of improvement in the textile industry of India as there is a huge increase in personal disposable income among the Indians after the 1991 liberalization. There is also a large growth of the organized sector in the Indian textile industries. The foreign brands along with the collaboration of the Indian companies established business in India. Some of these are Puma , Armani , Benetton, Esprit , Levi Strauss , Hugo Boss , Liz Claiborne,

Crocs etc.

The major Indian Industries include Bombay Dyeing , Fabindia, Grasim Industries , JCT

Limited, Lakshmi Machine Works , Lakshmi Mills and Mysore Silk Factory.

The Indian Textiles Industry has an overwhelming presence in the economic life of the country.

Apart from providing one of the basic necessities of life, the textiles industry also plays a vital role through its contribution to industrial output, employment generation, and the export earnings of the country.

The sector contributes about 14 per cent to industrial production; 4 per cent to the country's gross domestic product (GDP); 17 per cent to export earnings. It is the second largest provider of employment after agriculture and provides direct employment to over 35 million people.

68 Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

Market Size

The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub.

The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe.

Garment exports from India is expected to touch US$ 60 billion over the next 3 years, with the help of government support, Source: Apparel Export Promotion Council, (AEPC).

Investments

The textiles sector has witnessed a spurt in investment during the last five years. The industry

(including dyed and printed) attracted foreign direct investments (FDI) worth Rs. 6,428.18 crore (US$ 1.03 billion) in 2014.

Some of the major investments in Indian Textile Industry are:

● Sutlej Textiles and Industries, one of the largest yarn, fabric, garments and home textiles

manufacturers in India plans the expansion of its Jammu and Kashmir (J&K) manufacturing

unit with an investment of Rs. 1.75 billion (US$ 28.10 million).

● Super dry plans to open 20 stores in India over the next five years, as per Mr. James

Holder, Founder, Super dry

● The Aditya Birla Group has signed an in-principle agreement to buy the assets of Ontario-

based Terrace Bay Pulp Mill for Rs. 605 crore (US$ 97.14 million). The acquisition

would be carried out through AV Terrace Bay (Canada), a special purpose vehicle (SPV) in

69 which two group companies, Grasim Industries and Thailand-based Thai Rayon Public,

would hold stake

● Tommy Hilfiger plans to add 500 stores in India over the next five years as part of

their expansion spree

● Canclini Tessile plans to tie up with Tirupur-based Emperor Textiles to stitch its shirts in

India. The equal joint venture (JV) with Emperor Textiles will set up a separate

manufacturing unit in Tirupur to manufacture Italian fabric for domestic consumption

Government Initiatives

The Government of India has promoted a number of export promotion policies for the Textile sector in the Union Budget 2013-14 and the Foreign Trade Policy 2009-14. It has also allowed 100 per cent FDI in textiles under the automatic route.

Due to policy measures initiated by the Government in the recent past, the Indian textiles industry is in a stronger position than it was in the last six decades. The industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 8-9 per cent in value terms.

The Government has also allowed 100 per cent FDI in the sector through the automatic route. In the 12th Five Year Plan (2012-17), the government plans to spend US $ 9.1 billion on textiles as against US $ 4 billion in the 11th Plan.

Some of initiatives taken by the Government to further promote the industry are as under:

● Encouraged by turnaround in the textile exports, the Government of India plans to set up

US $ 60 billion target for the next financial year (2016), a jump of over 30 per cent from

the current financial year (2015). For the current fiscal year, government has set a target

of US $ 43 billion.

● The Cabinet Committee on Economic Affairs (CCEA), Govt. of India has approved an

Integrated Processing Development Scheme (IPDS) with a corpus of Rs. 500 crore (US $

70 80.25 million) to make textile processing units more environment-friendly and globally

competitive.

● Hyderabad is all set to have yet another national centre - Rs.100 crore (US $ 16.05

million) National Institute for Footwear Design and Development. The Government of

Andhra Pradesh has already allocated the required land at Gachibowli in Cyberabad.

● The Government of India plans to set up Rs.100 crore (US $ 16.05 million) venture capital

fund to provide equity support to start-ups in the textile sector, in order to encourage

innovative ideas in this export intensive sector.

● Under the Technology Upgradation Fund Scheme (TUFS), the cotton textile industry of

India will receive margin money from the Ministry of Finance. The industry is also expected

to attract Rs. 4,000 crore (US$ 642.28 million) in the form of investments over the next

six months.

● The Government of India has allotted Rs.700 crore (US $ 112.39 million) in the next Five

Year Plan for the development of technical textiles. In 2014, the technical textiles

industry reached Rs.-7.48 trillion (US $ 120.12 billion) at an annual growth rate of 3.5

per cent.

Road Ahead

The textiles industry complements the growth of several industries and institutions such as the defence forces, railways, and government hospitals, which are the key institutional buyers of technical textiles. The market is expected to grow to US $ 31 billion by 2020, at a compound annual growth rate (CAGR) of 10 percent. The industry includes production of flexible packaging material for industrial, agricultural and consumer goods. Among the other segments, protech, oekotech, spotech and geotech have significant growth potential. India's technical textile industry is an emerging area for investments with good growth opportunities.

71 With the increase in investments in the Indian textile sector, the subsequent increase in the industrial production, and the positivity observed by the textile sector have resulted in progress and development of the sector. Integrating the sectoral needs with technical advancements will completely modernise the industry chains across the country, along with continued investments assisting in reaping benefits for the Indian textile sector.

In human history, past and present can never ignore the importance of textile in a civilization decisively affecting its destinies, effectively changing its social scenario.

History of textile industry

India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets.

The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to

Bombay, was established in 1861. The spread of the textile industry to Ahmadabad was largely due to the Gujarati trading class.

The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile industry was in bad state due to the great famine and a number of mills of

Bombay and Ahmadabad were to be closed down for long periods.

The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and

72 during this period a number of the Bombay mills changed hands. The Second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh Powerlooms in 1901 to 249 mills with 13.35 lakh Powerlooms in 1921 and further to

396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers.

The cotton textile industry is rightly described as a Swadeshi industry because it was developed with indigenous entrepreneurship and capital and in the pre-independence era the Swadeshi movement stimulated demand for Indian textile in the country.

The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries.

After independence, the cotton textile industry made rapid strides Between 1951 and 1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well over 26 million by 1989-90.

Current Position of Textile Industry in India

Textile constitutes the single largest industry in India. The segment of the industry during the year 2000-01 has been positive. The production of cotton declined from 156 lakh bales in

1999-2000 to 140 lakh bales during 2000-01. Production of man-made fibre increased from 835 million kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a growth of 8.26%. The production of spun yarn increased to 3160 million kgs during 2000-

01 from 3046 million kgs during 1999-2000 registering a growth of 3.7%. The production of man-made filament yarn registered a growth of 2.91% during the year 1999-2000

73 increasing from 894 million kgs to 920 million kgs. The production of fabric registered a growth of 2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to 40,256 million sq mtrs. The production of mill sector declined by 2.6% while production of handloom, powerloom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments increased from Rs. 4,55,048 million to Rs. 5,52,424 million, registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs.

1609 billion. And during 2004-05 production of fabrics touched a peak of 45,378 million square meters. In the year 2005-06, production of fabrics registered a further growth of 9 percent over the corresponding period of the previous year.

With the growing awareness in the industry of its strengths and weakness and the need for exploiting the opportunities and averting threats, the government has initiated many policy measures as follows.

The Technology Up gradation Fund Scheme (TUFS) was launched in April 1999 to provide easy access to capital for technological up gradation by various segments of the Industry.

The Technology Mission on Cotton (TMC) was launched in February 2000 to address issues relating to the core fibre of Cotton like low productivity, contamination, obsolete ginning and pressing factories, lack of storage facilities and marketing infrastructure.

In the current year Budget 2014-2015 states the measures for Textile Industry as follows

● Allocation to the Technology Up gradation Fund (TUF) enhanced.

● Provision for the interest subsidy on term loans to the handloom sector to be increased.

● Provision for the scheme for integrated Textiles Parks.

● Excise duty on all man-made fibre yarn and filament yarn to be reduced.

● Import duty on all man-made fibres and yarns to be reduced.

74 Future Prospects

The future outlook for the industry looks promising, rising income levels in both urban and rural markets will ensure a rising market for the cotton fabrics considered a basic need in the realm of new economic reforms (NER) proper attention has been given to the development of the textiles industry in the Eleventh plan. Total outlay on the development of textile industry as envisaged in the Eleventh plan is fixed at Rs.1980 crore. The production targets envisaged in the terminal year of the Eleventh plan are 45,500 million sq metres of cloth 4,150 million kg of spun yarn and 1,450 million kg of manmade filament yarn. The per capita availability of cloth would be 28.00 sq meters by 2014-2015 as compared to 23.19 sq meters in 2010-12 showing a growth of 3.19 percent.

Vision India 2020 for Textiles

● Textile economy to grow to $ 85 bn. by 2020.

● Creation of 12 million new jobs in Textile Sector.

● To increase India's share in world trade to 6% by 2020.

● Achieve export value of $ 40 Billion by 2020.

● Modernization and consolidation for creating a globally competitive industry.

Structure of India's textile industry

The textile sector in India is one of the world's largest. The textile industry today is divided into three segments:

1. Cotton Textiles

2. Synthetic Textiles

3. Other like Wool, Jute, Silk etc.

All segments have their own place but even today cotton textiles continue to dominate with

70% share. The structure of cotton textile industry is very complex with co-existence of

75 oldest technologies of hand spinning and hand weaving with the most sophisticated automatic spindles and loom. The structure of the textile industry is extremely complex with the modern, sophisticated and highly mechanized mill sector on the one hand and hand spinning and hand weaving (handloom sector) on the other and in between falls the decentralised small scale

Powerloom sector.

Unlike other major textile-producing countries, India's textile industry is comprised mostly of small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises.

This unique industry structure is primarily a legacy of government policies that have promoted labour-intensive, small-scale operations and discriminated against larger scale firms:

● Composite Mills

Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing are common in other major textile-producing countries. In India, however, these types of mills now account for about only 3 percent of output in the textile sector. About 276 composite mills are now operating in India, most owned by the public sector and many deemed financially sick. Most of these mills are located in Gujarat and Maharashtra.

● Spinning

Spinning is the process of converting cotton or manmade fibre into yarn to be used for weaving and knitting. Spinning sector is technology intensive and productivity is affected by the quality of cotton and the cleaning process used during ginning. Largely due to deregulation beginning in the mid-1980s, spinning is the most consolidated and technically efficient sector in India's textile industry. Average plant size remains small, however, and technology outdated, relative to other major producers. In 2013-14, India's spinning sector consisted of about 1,146 small-scale independent firms and 1,599 large scale independent units.

● Weaving and Knitting

The weaving and knits sector lies at the heart of the industry. In 2013-14, of the total production from the weaving sector, about 46 percent was cotton cloth, 41 percent was 100% non-

76 cotton including khadi, wool and silk and 13 percent was blended cloth. Three distinctive technologies are used in the sector handlooms, powerlooms and knitting machines. Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics. India's weaving and knitting sector remains highly fragmented, small-scale, and labour-intensive.

Powerlooms are small firms, with an average loom capacity of four to five owned by independent entrepreneurs or weavers. Modern shuttleless Powerlooms account for less than 1 percent of Powerloom capacity.

● Fabric Finishing

Fabric finishing (also referred to as processing), which includes dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is also dominated by a large number of independent, small-scale enterprises. Overall, about 2,300 processors are operating in

India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving, or knitting units.

● Clothing

Apparel is produced by about 77,000 small-scale units.

India's major competitors in the world

To understand India's position among other textile producing the industry contributes 9% of

GDP and 35% of foreign exchange earnings, India's share in global exports is only 3% compared to China’s 13.75% percent. In addition to China, other developing countries are emerging as serious competitive threats to India. Looking at export shares, Korea (6%) and

Taiwan (5.5%) are ahead of India, while Turkey (2.9%) has already caught up and others like

Thailand (2.3%) and Indonesia (2%) are not much further behind. The reason for this development is the fact that India lags behind these countries in investment levels, technology, quality and logistics. If India were competitive in some key segments it could serve as a basis for building a modern industry, but there is no evidence of such signs, except to some extent in the spinning industry.

77 Table 5.1: India's Competitive Position in Stages of Textile Manufacture

Process Determinants of Competitive Advantage India's Competitive

Position

Spinning Quality, Cotton Price Medium

Weaving Technology, Automation, Power, Finance Low

Processing Scale Economy, Technology, Environmental Low

Issues, Finance

Garmenting Labour Cost, Productivity, Brand Medium

Fashion Design

Source : http://en.wikipedia.org/wiki/Textile_industry (2014)

Problem faced by the textile industry in India

The cotton textile industry is reeling under manifold problems. The major problems are the following:

● Sickness

Sickness is widespread in the cotton textile industry. After the engineering industry, the cotton textile industry has the highest incidence of sickness. As many as 125 sick units have been taken over by the Central Government. Sickness is caused by various reasons.

● Obsolescence:

The plant and machinery and technology employed by a number of units are obsolete. The need today is to make the industry technologically up-to-date rather than expand capacity as such. This need was foreseen quite some time back and schemes for modernisation of textile industry had been introduced. The soft loan scheme was introduced a few years back and some units were able to take advantage of the scheme and modernise their equipment. However, the problem has not been fully tackled and it is of utmost importance that the whole industry is technologically updated. Not many companies would be able to find resources internally and will have to depend on financial institutions and other sources.

78 ● Government Regulations:

Government regulations like the obligation to produce controlled cloth are against the interest of the industry. During the last two decades the excessive regulations exercised by the government on the mill sector has promoted inefficiency in both production and management. This has also resulted in a colossal waste of raw materials and productive facilities. For example, the mills are not allowed to use filament yarn in warp in order to protect the interest of art silk and powerloom sector which use this yarn to cater to the affluent section of society.

● Low Yield and Fluctuation of Cotton Output:

The cotton yield per hectare of land is very low in India. This results in high cost and price.

Further, being largely dependent on the climatic factors, the total raw cotton production is subject to wide fluctuation causing serious problems for the mills in respect of the supply of this vital raw material.

● Competition from Man-made Fibres:

One of the serious challenges facing the cotton textile industry is the competition from the man-made fibres and synthetics. These textures are gradually replacing cotton textiles.

This substitution has in fact been supported by a number of people on the ground that it is not possible to increase substantially the raw cotton production without affecting other crops particularly food crops.

● Competition from other Countries:

In the international market, India has been facing severe competition from other countries like Taiwan, South Korea, China and Japan. The high cost of production of the Indian industry is a serious adverse factor.

● Labour Problems:

The cotton textile industry is frequently plagued by labour problems. The very long strike of the textile workers of Bombay caused losses amounting to millions of rupees not only to the workers and industry but also to the nation in terms of excise and other taxes and exports.

79 ● Accumulation of Stock:

At times the industry faces the problems of very low off take of stocks resulting in accumulation of huge stocks. The situation leads to price cuts and the like leading to loss or low profits.

● Miscellaneous: The industry faces a number of other problems like power cuts, infrastructural problems, lack of finance, exorbitant rise in raw material prices and production costs, etc.

Export at Glance Textile export plays a crucial role in the overall exports from India. Through export friendly government policies and positive efforts by the exporting community, textile exports increased substantially from US $ 12.10 billion in 2000-01 to US $ 24.05 billion during 2013-14. The textile export basket contributes to over 46 percent of total export. Exports have grown at an average of 11 percent per annum over the last few years, while world textile trade has grown only about 5.4 per cent per annum in the same years. The textile exports recorded a growth of 15.3% in 2013-14 over 2012-13. The overall export target for 2014-15 has been fixed at US $ 15,565 million. India's textile export to the US has shown a good rise of 29.5% in 2014.

Investment in Textile Industry Investment is the key for Indian textiles to make rapid strides. The Vision Statement prepared by the Indian Cotton Mills federation has projected that the industry has the potential to reach a size of US $ 85 billion by 2016 from the current level of US $ 36 billion. Further, the vision statement has estimated that textile exports could touch US $ 40 billion by

2016 and in the process, India's share in the global textile and clothing trade is expected to double from three percent in 2002 to six percent by 2016.

To reach these ambitious targets, it is estimated that new investment to the tune of Rs.1, 40,000 crores will be needed in the next five years. After analysing the capacity and technology levels in various segments of textile Industry and the need for modernisation, funds required for various segments have been below.

80 Table 5.2 : Requirement of Funds for various segments. Sr. No. Segment Investment (Rs. in crores) 1. Ginning & Processing 1,800 2. Spinning 10,600 3. Weaving 22,950 4. Knitting 3,150 5. Woven Processing 25,800 6. Knit Processing 8,550 7. Clothing 24,000 8. Jute 500 9. Silk, Wool 1,200

Total 98,550

Source: http://en.wikipedia.org/wiki/Textile_industry 2014

Figure 5.1: Investment in Textile

Source: http://en.wikipedia.org/wiki/Textile_industry - 2014

81 The Multi-Fibre Agreement (MFA)

The Multi-Fibre Agreement (MFA), that had governed the extent of textile trade between nations since 1962, expired on 1 January 2005. It is expected that, post-MFA, most tariff distortions would gradually disappear and firms with robust capabilities will gain in the global trade of textile and apparel. The prize is the $360 bn market which is expected to grow to about $600 bn by the year 2016

Export Promotion Capital Goods (EPCG) Scheme

To promote modernization of Indian industry, the Govt. of India set up the Export Promotion

Capital Goods (EPCG) scheme, which permits a firm importing new or Second hand capital goods for production of articles for export to enter the capital goods at preferential tariffs, provided that the firm exports at least six times the c.i.f. value of the imported capital goods within 6 years. Any textile firm planning to modernize its operations had to import at least

$4.6 million worth of equipment to qualify for duty-free treatment under the EPCG scheme.

Export-Import Policy

The Govt. of India EXIM policy provides for a variety of largely export-related assistance to firms engaged in the manufacture and trade of textile products. This policy includes fiscal and other trade and investment incentives contained in various programs.

Duty Entitlement Passbook Scheme (DEPS)

DEPS is available to Indian export companies and traders on a pre- and post-export basis.

The pre-export credit requires that the beneficiary firm has exported during the preceding 3- year period. The post-export credit is a transferable credit that exporters of finished goods can use to pay or offset customs duties on subsequent imports of any unrestricted products.

The Agreement on Textiles and Clothing (ATC)

The Agreement on Textiles and Clothing (ATC) promises abolition of all quota restrictions in international trade in textiles and clothing by the year 2015. This provides tremendous scope for export expansion from developing countries. 82 Guidelines of the revised Textile Centres Infrastructure Development Scheme (TCIDS)

TCIDS Scheme is a part of the drive to improve infrastructure facilities at potential Textile growth centres and therefore, aims at removing bottlenecks in exports so as to achieve the target of US$ 50 billion by 2016 as envisaged in the National Textile Policy, 2012. Under the Scheme funds can be given to Central/ State Government Departments/ Public Sector Undertakings/ Other Central /State Governments agencies/recognized industrial association or entrepreneur bodies for development of infrastructure directly benefiting the textile units. The fund would not be available for individual production units.

Technology Up gradation Fund Scheme (TUFS)

At present, the only scheme through which Government can assist the industry is the Technology Up gradation Fund Scheme (TUFS) which provides for reimbursing 5% interest on the loans/finance raised from designated financial institutions for bench marked projects of modernisation. IDBI, SIDBI, IFCI have been designed as nodal agencies for large and medium small scale industry and jute industry respectively. They have co-opted 148 leading commercial banks/cooperative banks and financial institutions like State Finance Corporations and State Industrial Development Corporation etc.

Scheme for Integrated Textile Parks (SITP)

To provide the industry with world-class infrastructure facilities for setting up their textile units, Government has launched the Scheme for Integrated Textile Parks (SITP) by merging the Scheme for Apparel Parks for Exports (APE) and Textile Centre.

Textile Centres Infrastructure Development Scheme (TCIDS) is based on Public-Private Partnership (PPP) and envisages engaging of a professional agency for project execution.

The Ministry of Textiles (MOT), Govt. of India would implement the Scheme through Special

Purpose Vehicles (SPVs).

The Ministry of Textiles

The Ministry of Textiles is responsible for policy formulation, planning, and development export promotion and trade regulation in respect of the textile sector. This included all

83 natural and manmade cellulosic fibres that go into the making of textiles, clothing and handicrafts.

Powerloom development and export promotion council

Powerloom development and export promotion council, set up by the ministry of textiles government of India. PDEXC provide some export assistance as follows:

● Exploration of overseas market.

● Identification of items with export potential.

● Market survey and up-to-date market intelligence.

● Contact with protective buyers to interest them in your products.

● Providing your company's profile to overseas buyers and vice-versa.

● Advice on international marketing.

● Display of selected product groups.

Cotton Textile Export Promotion Council (TEXPROC)

The Council looks after the export promotion of cotton fabrics, cotton yarn and cotton made-ups. Its activities include market studies for individual products, circulation of trade enquiries, participation in exhibitions, fairs and seminars at home and abroad, in order to boost exports.

SWOT Analysis of Indian Textile Industry

Indian textile industry has several Strengths

● Abundant Raw Material Availability

● Low Cost Skilled Labour

● Presence across the value-chain

● Growing Domestic Market

84 Indian textile industry has several Weaknesses

● Fragmented industry

● Effect of Historical Government Policies

● Lower Productivity and Cost Competitiveness

● Technological Obsolescence

Indian textile industry has several Opportunities

● Post 2005 challenges

● Research and Development and Product Development

Indian textile industry has several Threats

● Competition in Domestic Market

● Ecological and Social Awareness

● Regional alliances among Countries

Strengths

Abundant Raw Material Availability:

Allowing the industry to control cost and reduce overall lead-times across the value chain.

Low Cost Skilled Labour

Low cost skilled labour providing a distinct competitive advantage for the industry.

Presence across the value-chain

Presence across the value-chain providing a competitive advantage when compared to countries likes Bangladesh, Sri Lanka, who have developed primarily as garmenters.

Reduced Lead-times:

Manufacturing capacity present across the entire product range, enabling textile companies and garmenters do source their material locally and reduce lead-time.

85 Super Market:

Ability to satisfy customer requirements across multiple product grades- small and large lot sizes specialized process treatments etc.

Growing Domestic Market

Growing Domestic market which could allow manufacturers to mitigate risks while allowing them to build competitiveness.

Weaknesses

Fragmented industry

Fragmented industry leading to lower ability to expand and emerge as world-class players.

Effect of Historical Government Policies

Historical regulations though relaxed continue to be an impediment to global competitiveness.

Lower Productivity and Cost Competitiveness

● Labour force in India has a much lower productivity as compared to competing countries

like china, Sri Lanka etc.

● The Indian industry lacks adequate economies of scale and is therefore unable to compete

with china, and other countries etc.

● Cost like indirect takes, power and interest are relatively high.

Technological Obsolescence

● Large portion of the processing capacity is obsolete

● While state of the art integrated textile mills exist majority of the capacity lies currently

with the Powerloom sector.

● This has also resulted in low value addition in the industry.

86 Opportunities

Post 2005 challenges

During the year 2005 is a huge opportunity that needs to be capitalised.

Research and Development and Product Development

● Indian companies needs to increase focus on product development. Newer specialized

fabric- smart Fabrics, specialized treatment etc.

● Faster turnaround times for design samples

● Investing in design centers and sampling labs.

● Increased use of Computer Aided Design (CAD) to develop designing capability in the

Organisation and developing greater options.

● Investing in trend forecasting to enable growth of the industry in India.

Threats

Competition in Domestic Market

● Competition is not likely to remain just in the exports space, the industry is likely to face

competition from cheaper imports as well.

● This is likely to affect the domestic industry and may lead to increased consolidation.

Ecological and Social Awareness

● Development in the form of increased consumer consciousness on issues such as usage

of child labour unhealthy working conditions etc.

● The Indian industry needs to prepare for the fall out of such issues by issues by improving

its working practices.

Regional alliances of Countreis

● Regional trade blocs play a significant role in the global garment industry with countries

enjoying concessional tariffs by virtue of being members of such blocs/ alliances.

87 ● Indian industry would need to be prepared to face the fall out of the post 2005 scenarios in the form of continued barriers for imports.

The Indian textile industry is currently one of the largest and most important sector in the economy interims of output foreign exchange earnings and employment in India. The Textile industry has the potential to scale new height in the globalized economy.

The textile industry in India has gone through significant charges in anticipation of increased international competition. The industry is facing numerous problems and among them the most important once are those of liquidity for many organized sector units, demand recession and insufficient price realization. The long-range problems include the need for sufficient modernisation and restructuring of the entire industry to cater more effectively to the demands of the domestic and foreign markets for textiles as per the needs of today and tomorrow.

Indian Textiles Sector Analysis Report

As per the Ministry of Textiles, the Indian textile industry (valued at US $ 77 bn in 2014) contributed about 14% to industrial production, 4% to the country's GDP and 12% to the country's export earnings in 2014. It provides direct employment to over 35 m people and is the second largest provider of employment after agriculture.

● Investment made in the textile sector under the Technology Up gradation Fund (TUF) scheme has been Rs. 2 trillion till June 2014.

● According to the Technopak, Indian textile industry is expected to grow at an average annual rate of 11% between 2015 and 2020 to touch US $ 140 bn. India's share of global textile exports is expected to increase from the current 4% to around 7% over the next three-years. According to the Textile Association of India (TAI), the denim manufacturing capacity, which stands at 600-650 m meters per annum, is set to witness an addition by another 100 m meters wherein 70% focus will be on the domestic market.

● India enjoys a significant lead in terms of labour cost per hour over developed countries

like US and newly industrialized economies like Hong Kong, Taiwan, South Korea and

China. As per data from National Bureau of Statistics, due to steep wage inflation, the

88 average wage cost in China stood at US $ 450 per month in 2014 as against US $ 200 per

month in India. Also, India is rich in traditional workers adept at value-adding tasks, which

could give Indian companies significant margin advantage. However, India's inflexible

labor laws have been a hindrance to investments in this segment. Unlike in home textiles,

garment capacities are highly fragmented and leading Indian textile companies have been

slow to ramp up their apparel capacities, despite strong order flows from overseas buyers

who are trying to diversify out of China.

● The textile industry aims to double its workforce over the next 3 years. As a thumb rule,

for every Rs1 lac invested in the industry, an average of 7 additional jobs is created.

Key Points

● Supply

Due to sluggish demand from both global and domestic markets, most new capacities in the apparel and home textile segments are not operating at full capacities.

● Demand

High for premium and branded products due to increasing per capita disposable income.

● Barriers to Entry

Superior technology, skilled and unskilled labour, distribution network, access to global customers

● Bargaining Power of Suppliers

Because of oversupply in the unorganized market like that of denim, suppliers have little bargaining power. However, premium products and branded players continue to garner higher margins.

● Bargaining Power of Consumers

Domestic customers - Low for premium and branded product segments. Global customers-

High due to presence of alternate low cost sourcing destinations

89 ● Competition

High. Very fragmented industry. Competition from other low cost producing nations is likely to intensify.

Financial Year, 2014

● India's textile exports rose from Rs. 135 Crores in FY11 to Rs.163 Crores in FY14. The

same has grown at an average annual rate of 8.8% in the last 5 years

● Most companies in the sector timed their expansion plans FY04 onwards, so as to avail

themselves of the funding under TUF (Technology Up gradation Fund, offering loans at

subsidy). This led to the capex-spending phase in the textile sector peaking in the last

three fiscals. However, with the slump in demand for textile products from the overseas

markets, a number of companies had to defer their expansion plans due to large under-

utilized capacities. With the government rejecting the proposal to continue the TUF scheme

beyond the 11th plan (2012- 2017), the players looking to defer their capex plans will be

hit. It is believed that with higher interest rates, players in the sector would prefer to see

the utilization levels get normalized, before leveraging more for incremental capex.

● The global textile industry also faced the brunt of economic slowdown in FY12 and FY13,

wherein, exports to the US from two of its largest suppliers India and China dipped in

terms of value and volumes respectively. While India sustained volumes because of better

product quality as compared to China, it lost out in terms of realizations. Competitors

like Vietnam, Bangladesh and Indonesia gained substantially because of relatively

lower labor costs.

● Troubled by the rupee's appreciation against the US dollar, thereby eroding their

competitiveness in the global market, textile exporters have demanded duty benefits and

credit at lower interest rates.

90 ● In 2012 the government had imposed a ban on export of cotton which was later lifted.

According to the data from the ministry of textiles, cotton prices are currently trading around 17% lower on YoY basis.

Prospects

● Most large textile companies in India, realizing the growth potential in domestic retailing, have drawn up aggressive strategies to expand their footprint in the domestic market. These include companies like Welspun and Himatsingka, which were traditionally export- oriented, as also Raymond, which has been the pioneer in domestic textile retailing.

● In addition to high raw material costs, an appreciating rupee and an increase in employee's dearness allowance and shortage of labour are burning a hole in textile company's pockets

● Although home textile companies have been aggressive on the capacity expansion front, realizations have remained stable. But as new capacities come on-stream and utilization levels pick up, this is unlikely to continue. This is because although India continues to fea ture amongst the lowest cost producers for the US and EU markets, competitors like Pakistan and Turkey are cannibalizing its market share. Moreover, with the possibility of slowdown in the western economies looming large, a slowdown in demand cannot be ruled out.

● With retailers like Wal-Mart, JC Penney and GAP planning to substantially increase their outsourcing from India and FDI in single brand retailing making its way into the country, the opportunities for domestic apparel exporters are immense. As per the Government of India targets, while India's textile export is poised to grow at an average annual rate of 15 to 20% over the next three years, its share in apparel and garment exports are set to double and triple respectively until FY15. However, oversupply led pricing pressures and forex losses continue to mar the long-term earnings visibility of the textile companies.

● India and China are currently competing in the same categories (premium segment) of

apparels and home textiles and given India's established presence in the high end segment,

India could gain significant market share in US apparel imports. However, the ongoing

91 economic slowdown in the US could result in lower orders from US retailers that, in turn,

may result in lower capacity utilization and impact profitability of textile companies in India.

● Caught on the wrong foot for alleged use of child labour and forced labour, Indian apparel

exporting industry has not been able to convince the US about its seriousness in eliminating

labour abuse from the sector. The Indian textile industry that directly employs 6 m

workforce to make apparel for the world's best brands is feared to find mention in the

Trafficking Victims Protection Reauthorization Act (TVPRA List).

Maharashtra's Textile Industry

Industrial Investments in Maharashtra

Special Economic Zones

Maharashtra has been a prominent promoter of special economic zones in India. In all,

Maharashtra has one SEZ (SEEPZ) operational prior to SEZ Act-2005, 24 SEZs that have been notified as per the published information by the Ministry of Commerce & Industries

(GOI) on January 24, 2008; 88 SEZs that have received formal approval and 36 SEZs with

'In-Principal Approval'. Amongst the 204 SEZ projects, 166 SEZs are within the influence area of MIDC.

Specialized Industrial Parks

Floriculture Park - Pune

Maharashtra has emerged as a leading state for production, export and consumption of flowers in the country. MIDC is promoting a Floriculture Park at Talegaon near Pune, over 200 hectare of area, ideal for setting up of a Floriculture Park. This park would be developed as a world-class facility for production of flowers of different types and varieties.

Specialized Food Parks

MIDC is setting up Specialized Food Parks, which would provide infrastructural support for the promotion of food processing industry and cash in on Maharashtra's agricultural and farming resources.

92 Butibori Food Park

Nagpur, the winter capital of Maharashtra, is a well-connected highly industrialized city. It is also one of the largest orange growing areas in the country; hence MIDC has decided to set up a Food Park at Butibori near Nagpur. The Butibori Food Park being developed over an area of 60 acres shall be developed in association with Maharashtra Agro Industries

Development Corporation (MAIDC), and would be ideal for orange, lemon, sweet lime, pineapples and tomato processing units. Sangli Food Park This park is being planned on a

305 acre plot. Cebeco (India) is consultant for the project. The location is best suited for processing of grapes, turmeric, mangoes, pomegranates, citrus and custard apple Common facilities planned are cold storage, effluent treatment and social infrastructure.

Specialized Silver Zone

Maharashtra is a unique, multi-faceted state with an abundance of diverse skills and resources.

The skills of the silver artisans from the Kolhapur area are world-renowned. To encourage these artisans and tap the potential of the world silver markets, MIDC is setting-up a specialized

Silver Zone. The zone will offer integrated infrastructure of international standard and common facilities tailormade for the silver units. The zone will be located at Hupri within the Kagal-

Hatkanangale area, 20 km away from the Kolhapur railway station.

Specialized Textile Parks

MIDC is developing exclusive Textile Parks in Maharashtra, to maintain its leadership position in textile exports and production, with specific trade and industry oriented objectives in mind.

Nardhana Textile Park

The Nardhana Textile Park is being set up 30 km from Dhule. The total area of the park will be approximately 648 hectares, on which 72 plots will be demarcated. The Dhule airstrip, just 30 km away from the industrial area, will provide accessibility to the park and facilitate a quick movement of material.

93 Butibori Textile Park

The Butibori Textile Park, located close to the cotton growing areas of Vidarbha, is being developed across an area of about 100 hectares. The park is situated 28 km from Nagpur city, the second capital of Maharashtra, and is set to be a major center for textile production in the country. It is a part of the Butibori industrial area, known to be one of the biggest, most meticulously planned, modern industrial areas in the country, spread across an area of 244 hectares.

Additional Ambernath Textile Park

MIDC has developed an ultra-modern industrial area on 507 hectares of land, called the Additional Ambernath Textile Park, near Ambernath, a suburb of Mumbai. The textile park has several unique features that will assist in the smooth operation and growth of the industry.

Specialized Wine Parks

The State is a leading producer of high-quality grapes among the best in the world. MIDC has set up two Wine Parks in the State. Vinchur, near Nashik (151.36 Hectares).

● Located in the heart of the grape growing area.

● 98 plots developed for winery activities. Average plot size is 2000 sq.mt.

● As per Package Scheme of Incentives, Vinchur falls under 'C' Zone

● Roads, power and water supply already in place

● Mother winery unit has been set up

Krishna Wine Park, Palus-Sangli

● 38 kms from Sangli, spread over almost 53.70 hectares.

● 107 plots developed for winery activities. Average plot size is 2000 sq.mt.

● As per Package Scheme of Incentives falls under D+ industrial zone.

● Roads, power and water supply already in place.

● Pilot winery project and mother winery unit have been set up

94 IT/ ITES Parks

With the aim of providing an impetus to the IT industry, Government of Maharashtra has setup several state-of-the-art IT parks within the state. These IT parks provide a perfect base of operations for the best international and national IT houses. MIDC has established more than 25 IT parks in 10 cities in Maharashtra. Both Mumbai and Pune have become destinations for IT /ITES exports.

Further, Government of Maharashtra has developed the Mumbai-Pune Knowledge Corridor, a fast emerging IT hub of the country.

A six lane, dual carriage expressway (first-of-its-kind in India) built to link the two cities of

Mumbai, the financial, industrial and commercial capital of India and Pune, an internationally reputed centre of culture and learning. Six major IT parks setup in the two cities, 3 in Mumbai and 3 in Pune, providing world-class IT infrastructure, housing the top names from the international and national IT arena.

International Technology Parks

Maharashtra Industrial Development Corporation (MIDC) has proposed development of

International Technology Parks at Nagpur and Pune, in joint venture with M/s Ascendas,

Singapore based firm, and Maharashtra Airport Development Company (MADC). The joint venture partnership will have a shareholding of 74% by M/s Ascendas and 26% equity of

MIDC by offering land.

The proposed International Technology Park at Pune will have 2.5 Million sq ft built-up space spread over 25 Acres and an investment of Rs. 600 Crore. At Nagpur, the proposed

International Technology Park will consist of 4.5 Million Sq ft of built-up space spread over

63-Acre site within the up-coming Multi-Modal International Hub Airport (MIHAN) which will require an investment of Rs.1025 Crore. These two mega projects at Pune and Nagpur, are expected to offer employment to 70,000 people upon the completion of project.

95 NEW TEXTILE POLICY: 2011 - 2017

1. Cooperative Spinning Mills.

New cooperative spinning mills in Vidarbha / Marathwada and North Maharashtra will be

given equity support as per the existing financial pattern (5: 45: 50) (Own Share Capital:

Government Share capital: Loan)

New Cooperative Spinning Mills in Talukas where government has not already given equity

support for setting up of Cooperative Spinning Mills shall be eligible for the assistance

as per 5: 45: 50 pattern.

2. Powerlooms/Weaving/Sizing/Dyeing/Printing/Garmenting/Knitting Units, etc.

Considering giving subsidies in order of merit to projects of cooperative societies of

shuttleless powerlooms / warping / sizing /yarn dyeing /dyeing / processing / garmenting

etc. as per the present financial pattern (10: 40: 50) and according to availability of funds.

Scheme to give subsidies to the cooperative powerlooms units/bodies of Scheduled Castes,

Tribes and Minority Communities according to the following pattern 5:45:50 instead of

10:40:50 will be considered in consultation with the concerned Departments. The said

additional 5% Government share capital will be made available from the concerned

Departments.

Assistance in the form of success fee shall be given to professional agencies for the

preparation, submission and sanction of modernization project from the banks and financial

institutions for existing Powerloom of S.C./S.T./Minorities.

For modernization of Powerloom units of Scheduled Castes, Scheduled Tribes and

Minorities, sanctioned by Banks, a scheme to give 10% capital subsidy of the capital

investment [i.e. 10% of the permissible investment for the purpose of interest subsidy

for projects which are approved in TUFS] on machinery, besides the concessions received

from other sources, by such units will be framed in consultation with the concerned Departments.

96 3. Scheme of Interest subsidy on long-term loans linked to centrally sponsored TUFS Scheme.

Interest subsidy on long term loan linked to centrally sponsored TUFS will be started for New Textile project as well as modernization/expansion/rehabilitation project of existing textile units.

4. 10% capital subsidy to units in Vidarbha, Marathawada and North Maharashtra.

10% capital subsidy scheme will be given for new textile project in Vidarbha, Marathawada and North Maharashtra.

5. To consider giving financial assistance with the concurrence of the concerned Department. Financial assistance will be given for setting up of Textile Parks under the Special Component Scheme and Tribal Development Sub Plan for the Districts having low human development index.

6. Skilled works are needed to use higher technology in the Textile sector.

A Skill Development Programmed with the help of the Higher and Technical Education Department will be implemented for this purpose.

7. Implementing with the help of concerned Departments "Gharkul" [Housing] Scheme, Health Insurance Scheme, Worker's Welfare Scheme etc. for powerloom workers in the textile sector.

Considering the Scheme and guidline from the Department and Authority with the help of "Gharkul" [Housing] Scheme, Health Insurance Scheme, Worker's Welfare Scheme etc. for powerloom workers in the textile sector for the upliftment of the Human Resource invole.

8. To review and modify various regulatory provisions of Labour and Environmental laws, which adversely affect growth of textile sector.

For this purpose a separate Committee will be set up under the Chairmanship of Principal Secretary with representatives from Labour & Environment Department.

Expected Gains

The aim of the textile policy is to attract a total investment of Rs.40,000/- Crores in the sector for the purpose of adding value to 45 lakh surplus cotton bales produced in the State. It is proposed to create 6 lakh new jobs in the State year over year in the sector.

97 Government Resolution

The Government hereby gives its approval to the scheme of interest subsidy on long-term loans, which is linked to the Centrally Sponsored TUFS scheme.

1. Scheme of interest subsidy on long-term loans linked to the centrally sponsored TUFS scheme.

For the purpose of this scheme, either 12.5% or Banks' prime lending rate or the rate of interest actually charged, whichever rate is less, will be taken as applicable rate of interest.

The benefit under the said scheme will be admissible for newly set up textile units in the

State as well as modernization/expansion/rehabilitation of existing textile units. The State will provide financial assistance in a manner that effective rate of interest payable by the eligible units will be 0% or 2%. Taking into account assistance from all the sources (Centrally

Sponsored Technology Up gradation Fund Scheme, Industrial Policy of the State, etc.)

The units to be charged 0% and 2% rate of interest are as- under:

Sr. No. 0% Rate of Interest 2 % rate of Interest

1. All eligible textile units in Vidarbha Private cotton mills in areas other

Marathawada, North Maharashtra, than Vidarbha, Marathawada, North

Konkan Konkan and D+ Industrial Areas

2. Garmenting in the entire State. ------

3. New Powerloom industries based on Private Processing Units.

modern technology in the whole State.

4. Modernization of Powerlooms Private Knitting units.

in whole State.

5. All types of silk projects ------

in the entire State.

6. All types of silk projects in the ------

cooperative sector.

98 2. Projects eligible for interest subsidy scheme

Projects eligible for interest subsidy schemes are : Project sanctioned under the centrally sponsored TUFS scheme means projects which have received UID Numbers from the Textile

Commissioner, Government of India, after being sanctioned by Nodal agencies, or financial institutes /Banks co-opted by the nodal agencies. However, as regards projects, which have been sanctioned on or after the date 1.4.2011 the benefit will be admissible to such projects with respect to proposals of Textile Units sanctioned by the Bank on or before the date 31st

March, 2011. Under the scheme, the interest subsidy will be admissible to private and cooperative projects. Projects which have not received UID number from the Textile

Commissioner, Government of India, shall not be eligible under the State scheme for interest subsidy.

3. Duration of the Scheme

Duration of Scheme will be 1.4.2011 to 31.3.2017. If centrally sponsored TUFS scheme is discontinued or for any other reasons, the Scheme can be reviewed by the State Government without adversely affecting the claims of already approved units.

4. Admissibility of interest Subsidy

After the interest subsidy becomes admissible under the centrally sponsored TUFS scheme.

If, for some reasons, a unit delays repayment of an installment, the interest charged by the institutions the period of delay, and the penal interest will not be reimbursed.

5. Cost of Projects

There will be no ceiling on investment in a project. However, the interest subsidy will be payable on the amount of long term loan admissible for the purpose of the interest scheme under the centrally sponsored TUFS

6. Period of reimbursement

Under this scheme the total period of reimbursement of interest subsidy shall be 7 years, which will include 2 years of moratorium However, if the period of implementation of the

99 project is more than 2 years, then the period for implementation to be taken into account, shall be only 2 years for calculating the interest subsidy. The period of implementation will be counted from the date of disbursal of first installment of the loan. The admissible reimbursement of interest will be quarterly. But the said reimbursement will be admissible for either seven years or the actual period of repayment fixed by the bank/ financial institution while sanctioning loans, which ever period is less. Banks may give loans for a period exceeding 7 years but the interest subsidy shall be admissible for 7 years only. The said period will include 2 years for implementing the project. If a project turns out to be a non- performing asset (NPA), the interest for that period shall not be reimbursed. However, after a project comes out of non-performing asset status, reimbursement of interest will be admissible from that date. In case loan is restructured the assistance of interest subsidy shall not be more than originally scheduled repayment.

7. Responsibility of Banks, Nodal Agencies and Other Financial Institutions

This scheme will be implemented with the collaboration of Banks and Financial institutions, on the pattern of the Central Government's TUFS scheme. In Government of India TUFS Scheme numbers of financial institutions and banks have been designated as Nodal agencies. These Nodal agencies have co-opted number of other financial institutions and banks for implementing the scheme. Similar arrangement shall operate under the State Scheme.

Maharashtra Government’s Resolution, 2011

1. 10% Capital subsidy to new textile units in Vidarbha, Marathwada and North Maharashtra.

10% capital subsidy of the eligible capital investment will be given to new textile units set up in Vidarbha, Marathwada and North Maharashtra. Eligible capital investment" means an investment which is eligible for interest subsidy under centrally sponsored TUFS scheme.

For the said capital subsidy the original project cost eligible for interest subsidy under the centrally sponsored TUFS Scheme only shall be considered. The benefit of 10% capital subsidy will not be admissible to any increase in the original project cost. The said 10% 100 capital subsidy shall be in addition to all the benefits available from all sources (i.e. centrally sponsored TUFS, Industries Departments policy etc.) including the assistance in respect of interest subsidy available under the new Textile Policy of the State.

2. Projects eligible to 10% Capital Subsidy Scheme

Project of Marathawada, Vidharbha & North Maharashtra sanctioned and set up under the centrally Sponsored TUFS scheme within the period of the issuing date of this Government Resolution to 31st March. 2017. Projects sanctioned under the centrally sponsored TUFS scheme means projects approved by the Nodal financing institutions/banks, or other co-opt. Banks/ institutions under the centrally sponsored TUFS scheme and have obtained UID number from the Commissioner of Textile, Ministry of Textiles, Government of India.

3. Period of the Scheme

Period sanctioned under the centrally sponsored TUFS scheme from the date of issuing this government Resolution till the date 31.3.2017. This scheme shall be reviewed by the Government on discontinuation of TUFS Scheme or at any other time, without affecting liabilities committed till then.

4. On line monitoring of the Scheme

With the assistance of NIC online monitoring of this scheme shall be done. User ID &

Password will be provided to financial institutions/Banks for feeding information online

5. Nodal Banks/Financial Institutions/Co-opted Financial Institutions giving Loan

In Government of India's TUFS scheme numbers of financial institutions and Banks have been designated as Nodal agencies. These nodal agencies have co-opted other financial institutions and Banks for implementing the TUFS scheme. They are also allowed to co-opt other financial institutions and Banks. The nodal agencies shall submit subsidy proposal directly to the Director (Textile). The co-opted Institutions/Banks will submit subsidy proposal through their nodal agencies to the Director (Textile) Director (Textile), will submit proposals to the State Government for release of funds

101 CHAPTER 6

JOB PROFILES

102 CHAPTER 6 JOB PROFILES

Job Profiles

A job profile is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job profiles are usually narrative, but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built.

Creating a job profile

A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis considers the areas of knowledge and skills needed for the job. A job usually includes several roles. The job description might be broadened to form a person specification or may be known as

Terms of Reference. The person/job specification can be presented as a standalone document though in practice, it is usually included within the job description.

Roles and responsibilities

A job description may include relationships with other people in the organization: Supervisory level, managerial requirements, and relationships with other colleagues.

Goals

A job description need not be limited to explaining the current situation, or work that is currently expected; it may also set out goals for what might be achieved in the future.

103 Limitations

Prescriptive job descriptions may be seen as a hindrance in certain circumstances:

● Job descriptions may not be suitable for some senior managers as they should have the

freedom to take the initiative and find fruitful new directions;

● Job descriptions may be too inflexible in a rapidly-changing organization, for instance in

an area subject to rapid technological change;

● Other changes in job content may lead to the job description being out of date;

● The process that an organization uses to create job descriptions may not be optimal.

Office manager: Job profile

Office managers organise and supervise all of the administrative activities that facilitate the smooth running of an office. An office manager carries out a range of administrative and IT- related tasks, depending on the employing organisation. The work may vary from running the administrative side of a small employer's business as a sole administrator to overseeing the office work of numerous staff. Although the work of an office manager differs greatly across organisations, they all have the responsibility for ensuring that their office runs efficiently.

Job titles vary and office managers are often called office administrators, especially at more junior levels.

Typical work activities of Office Manager

The role varies according to the type of employer, the size of the organisation and the management structure, but activities typically include:

● Using a range of office software, including email, spreadsheets and databases;

● Managing filing systems;

● Depending on the organization, duties of the role may extend to the management

of social media;

104 ● Developing and implementing new administrative systems, such as record management;

● Recording office expenditure and managing the budget;

● Organizing the office layout and maintaining supplies of stationery and equipment;

● Maintaining the condition of the office and arranging for necessary repairs;

● Organizing and chairing meetings with staff - in lower paid roles this may include

typing the agenda and taking minutes, but senior managers usually have an administrative

assistant to do this;

● Overseeing the recruitment of new staff, sometimes including training and induction;

● Ensuring adequate staff levels to cover for absences and peaks in workload, often by

using temping agencies;

● Carrying out staff appraisals, managing performance and disciplining staff;

● Delegating work to staff and managing their workload and output;

● Promoting staff development and training;

● Implementing and promoting equality and diversity policy;

● Writing reports for senior management and delivering presentations;

● Responding to customer enquiries and complaints;

● Reviewing and updating health and safety policies and ensuring they are observed;

● Arranging regular testing for electrical equipment and safety devices;

● Attending conferences.

105 CHAPTER 7

BEHAVIOURAL CHARACTERISTICS

106 CHAPTER 7 BEHAVIOURAL CHARACTERISTICS

Behaviors are :

● The actions or reactions of a person or animal in response to external or internal stimuli.

● The actions displayed by an organism in response to its environment.

● The manner in which something functions or operates.

Characteristics

The primary characteristics of each group:

Table 7.1: Behavioural Characteristics of different groups

Promoter Supporter

● High energy ● Dedicated and committed ● Enjoyable to be around ● Loyal team member ● Creative imagination ● Good listener ● Initiates relationships ● Patient ● Motivating ● Good at reconciling factions ● Competitive spirit ● Cause-oriented ● Goal oriented ● Dependable Controller Analyzer ● Task accomplisher ● Objective ● Bottom-line results ● Conscientious ● Self-motivated ● Defines, clarifies ● Forward looking ● Concerned with accuracy ● Fast decision-maker ● Gathers needed data/information ● Initiates activities ● Tests data ● Disciplined ● Maintains standards

● Likes to control others

107 Finally one must be aware of extremes and persons with these "double whammies" should recognize their tendencies to extremes and counteract: Extremes Promoter/Promoter Supporter/Supporter Aimless Self-Denying Agitated Self-Deprecated Lack Of Conviction Obligated Melodramatic Over Protective Deluding Easily Influenced Inconsistent Over Committed Manipulative Passive

Controller/Controller Analyzer/Analyzer Domineering Uncreative Distorts Data Bound Coercive Elaborate Gambling Plodding Impatient Nit-Picking Contentious Critical High Pressure Stingy

Behavioural & Personality Traits

There are two key dimensions of an individual's personality that are most responsible for how they will perform at work - "traits" and "behaviours." Personality traits are "persisting" characteristics that are consistently demonstrated in spite of changing circumstances or environment. Because personality traits define habitual patterns of behaviour, thought and emotion, they provide a foundation for predicting behaviour. Behaviours, on the other hand, are about the way one conduct himself - what one say and do, and how one says and does it.

Personality traits don't change over time but one can alter behaviour traits to a degree.

108 Behaviours vs. Traits

A good example is, a person may be very methodical by personality trait and yet have an occasional urge to demonstrate impulsive behaviour - pausing only slightly to plan that impulsive move. Or, to illustrate the same point in another way: extroversion is a trait; an extrovert sitting quietly in a meeting is a type of behaviour.

Another useful distinction when discussing personality is the difference between personality traits and types. Personality types are considered to be behavioural combinations measured independently, whereas traits are measured on scales. Trait-based measurements provide a sense of relative strength and "dimension" to one's personality.

109 CHAPTER 8

DATA COLLECTION

110 CHAPTER 8 DATA COLLECTION

The secondary data was collected from organization records, management reports, and the special project reports to understand the present state.

The Primary data was collected from the managers of the organization.

Questionnaire Design

The questionnaire consists of close ended questions.

The data was collected using a survey instrument. The survey was administered through e- mail and person. Remaining response were collected in person and by sending an e-mail with a questionnaire. The request for participation was sent out to more than 100 professionals. The response were received from 92 professionals out of whom 9 individual did not complete the survey fully. 85 responses were complete entirely and were considered as valid.

The responses were received from professionals working in different Powerloom companies.

All the professionals stated that the view expressed are their own view and dose not represent view of the organization. Professionals from Bhiwandi, Malegoan, and Ichalkarangi participated in the survey. The different organization were as follows:-

Sr. No. Company City

1 A. T.Y. Textiles Bhiwandi

2 Adoni Fabric Bhiwandi

3 Al Irfan Textiles Bhiwandi

4 Alfa Synthetic Bhiwandi

5 Ali Textiles Bhiwandi

111 6 Aliza Textiles Bhiwandi

7 Ansari Cottons Bhiwandi

8 Aroma Weaving . Bhiwandi

9 Asean Textile Mills Bhiwandi

10 Badal Textiles Bhiwandi

11 Dhanashri Textiles Bhiwandi

12 Fresco Textiles Bhiwandi

13 Gautam Silk Bhiwandi

14 Global Garments Bhiwandi

15 Grey Global Enterprises Bhiwandi

16 H.A Textiles Bhiwandi

17 K. G.. N Textiles Bhiwandi

18 K. M. A Textiles Bhiwandi

19 Lucky Textiles Bhiwandi

20 M. Ansari Textiles Bhiwandi

21 Rizwan Textiles Bhiwandi

22 Mariya Textiles Bhiwandi

23 Master Textiles Bhiwandi

24 Navkar Textiles Bhiwandi

25 New Saalim Textiles Bhiwandi

26 Noor Group Bhiwandi

27 Pyramid Enterprises Bhiwandi

112 28 Rajendra Textiles Bhiwandi

29 Sagar Synthetic Bhiwandi

30 Sahil Fabrics Bhiwandi

31 Sanslear Fabrics Bhiwandi

32 Sarfaraz Textiles Bhiwandi

33 Seema Textiles Bhiwandi

34 Shree Dhanlaxmi Fabrics Bhiwandi

35 Shree Ranisati Textiles Bhiwandi

36 Shri Sidhivinayak Textile Bhiwandi

37 T. K. Textiles Bhiwandi

38 Tawab Textiles Bhiwandi

39 Umair Moinuddin Ansari Textiles Bhiwandi

40 Chem- Textiles Ichalkaranji

41 Amrapali Industries Ichalkaranji

42 Arun Enterprises Ichalkaranji

43 Baheti Textiles Pvt. Ltd. Ichalkaranji

44 Baldev Textile Mills Ichalkaranji

45 Dhanlaxmi Tex Fab Ichalkaranji

46 Gautam Syndicate Ichalkaranji

47 Girnar Textiles Ichalkaranji

48 Jeevan Textiles Ichalkaranji

49 Kismat Enterprises Ichalkaranji

113 50 Kitsons Ltd. Ichalkaranji

51 Manjushri Fabrics Ichalkaranji

52 Moreramkrupa Fabrics Ichalkaranji

53 Parashmani Textile Mills Ichalkaranji

54 Prasoon Industries Ichalkaranji

55 Priyanka Textiles Ichalkaranji

56 Ratanmoti Texfab Ichalkaranji

57 Sanjeevani Clothing Ichalkaranji

58 Sarda Cottons Ichalkaranji

59 Sheetal Industries Ichalkaranji

60 Shree Ramkrishna Textiles Ichalkaranji

61 Shri Krishna Textiles Ichalkaranji

62 Sitaram Tex Fab Ichalkaranji

63 Vallabh Textiles Ichalkaranji

64 Varsha Textiles Ichalkaranji

65 A to Z Textiles Malegoan

66 A. B. Basit & Co. Malegoan

67 Jaju Textiles Malegoan

68 Kanchan Textiles Malegoan

69 Khalapur Textiles Malegoan

70 Khandesh Textiles Malegoan

71 M. M Textiles Malegoan

114 72 Mahalaxmi Cottans Malegoan

73 Moonlight Textiles Malegoan

74 Needle Point Textiles Malegoan

75 Om Prakash Textiles Malegoan

76 Pioneer Textiles Malegoan

77 Samarth Textiles Malegoan

78 Shakti Textiles Malegoan

79 Sidhant Industries Malegoan

80 Sitaram Fabrics Malegoan

81 Star Textiles Malegoan

82 Sujata Textiles Malegoan

83 Vyankatesh Textiles Malegoan

84 Zakir Textiles Malegoan

85 Z. R Textiles Malegoan

115 CHAPTER 9

DATA ANALYSIS

116 CHAPTER 9 DATA ANALYSIS

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of discovering useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different science, and social science domains.

Data analysis is a process, within which several phases can be distinguished:

Data cleaning

The need for data cleaning arises from problems in the way that data is entered and stored.

Data cleaning is process of preventing and correcting these errors. Common tasks include record matching, reduplication, and column segmentation. There are several types of data cleaning that depend on the type of data. For Quantitative data methods for outlier detection can be used to get rid of likely incorrectly entered data. For textual data spellcheckers can be used to lessen the amount of mistyped words, but it is harder to tell if the word themselves are correct.

Initial data analysis

The most important distinction between the initial data analysis phase and the main analysis phase, is that during initial data analysis one refrains from any analysis that are aimed at answering the original research question. The initial data analysis phase is guided by the following four questions:

1) Quality of data

The quality of the data should be checked as early as possible. Data quality can be assessed in several ways, using different types of analyses: frequency counts, descriptive statistics (mean, standard deviation, median), normality (skewness, kurtosis, frequency histograms, n: variables

117 are compared with coding schemes of variables external to the data set, and possibly corrected if coding schemes are not comparable.

The choice of analyses to assess the data quality during the initial data analysis phase depends on the analyses that will be conducted in the main analysis phase.

2) Quality of measurements

The quality of the measurement instruments should only be checked during the initial data analysis phase when this is not the focus or research question of the study. One should check whether structure of measurement instruments corresponds to structure reported in the literature.

3) Initial transformations

After assessing the quality of the data and of the measurements, one might decide to impute missing data, or to perform initial transformations of one or more variables, although this can also be done during the main analysis phase.

Possible transformations of variables are:

● Square root transformation (if the distribution differs moderately from normal)

● Log-transformation (if the distribution differs substantially from normal)

● Inverse transformation (if the distribution differs severely from normal)

● Make categorical (ordinal / dichotomous) (if the distribution differs severely from normal,

and no transformations help)

4) Implementation of the study

One should check the success of the randomization procedure, for instance by checking whether background and substantive variables are equally distributed within and across groups.

If the study did not need and/or use a randomization procedure, one should check the success of the non-random sampling, for instance by checking whether all subgroups of the population of interest are represented in sample.

118 Other possible data distortions are:

● Dropout (this should be identified during the initial data analysis phase)

● Item non-response (whether this is random or not should be assessed during the initial data

analysis phase)

● Treatment quality (using manipulation checks).

Characteristics of data sample

In any report or article, the structure of the sample must be accurately described. It is especially important to exactly determine the structure of the sample (and specifically the size of the subgroups) when subgroup analyses will be performed during the main analysis phase.

The characteristics of the data sample can be assessed by looking at:

● Basic statistics of important variables

● Scatter plots

● Correlations and associations

● Cross-tabulations

Final stage of the initial data analysis

During the final stage, the findings of the initial data analysis are documented, and necessary, preferable, and possible corrective actions are taken. Also, the original plan for the main data analyses can and should be specified in more detail and/or rewritten. In order to do this, several decisions about the main data analyses can and should be made:

● In the case of non-normal: should one transform variables; make variables categorical

(ordinal/dichotomous); adapt the analysis method

● In the case of missing data: should one neglect or impute the missing data; which imputation

technique should be used

● In the case of outliers: should one use robust analysis techniques?

119 ● In case items do not fit the scale: should one adapt the measurement instrument by omitting

items, or rather ensure comparability with other (uses of the) measurement instrument(s)

● In the case of (too) small subgroups: should one drop the hypothesis about inter-group

differences, or use small sample techniques, like exact tests or bootstrapping

● In case the randomization procedure seems to be defective: can and should one calculate

propensity scores and include them as covariates in the main analyses

Analyses

Several analyses can be used during the initial data analysis phase:

● Uni-varate statistics (single variable)

● Bivariate associations (correlations)

● Graphical techniques (scatter plots)

It is important to take the measurement levels of the variables into account for the analyses, as special statistical techniques are available for each level:

● Nominal and ordinal variables

● Frequency counts (numbers and percentages)

● Associations

● Circumambulations (cross-tabulations)

● Hierarchical log linear analysis (restricted to a maximum of 8 variables)

● Llog linear analysis (to identify relevant/important variables and possible confounders)

● Exact tests or bootstrapping (in case subgroups are small)

● Computation of new variables

● Continuous variables

120 ● Distribution

● Statistics (Standard Deviation (SD), variance, skewness, kurtosis)

● Stem-and-leaf displays

● Box plots

Nonlinear analysis

Nonlinear analysis will be necessary when the data is recorded from a nonlinear system.

Nonlinear systems can exhibit complex dynamic effects including bifurcations, chaos, harmonics and sub-harmonics that cannot be analyzed using simple linear methods. Nonlinear data analysis is closely related to nonlinear system identification.

Main data analysis

In the main analysis phase analyses aimed at answering the research question are performed as well as any other relevant analysis needed to write the research report.

Exploratory and confirmatory approaches

In the main analysis phase either an exploratory or confirmatory approach can be adopted.

Usually the approach is decided before data is collected. In an exploratory analysis no clear hypothesis is stated before analyzing the data, and the data is searched for models that describe the data well. In a confirmatory analysis clear hypotheses about the data are tested.

Exploratory data analysis should be interpreted carefully. When testing multiple models at once there is a high chance on finding at least one of them to be significant, but this can be due to a type 1 error. It is important to always adjust the significance level when testing multiple models with, for example, a bonferroni correction. Also, one should not follow up an exploratory analysis with a confirmatory analysis in the same dataset. An exploratory analysis is used to find ideas for a theory, but not to test that theory as well. When a model is found exploratory in a dataset, then following up that analysis with a confirmatory analysis in the same dataset could simply mean that the results of the confirmatory analysis are due to

121 the same type 1 error that resulted in the exploratory model in the first place. The confirmatory analysis therefore will not be more informative than the original exploratory analysis.

Stability of results It is important to obtain some indication about how generalizable the results are. While this is hard to check, one can look at the stability of the results. Are the results reliable and reproducible ? There are two main ways of doing this:

● Cross-validation:

By splitting the data in multiple parts we can check if analyses (like a fitted model) based on one part of the data generalize to another part of the data as well.

● Sensitivity analysis:

A procedure to study the behavior of a system or model when global parameters are (systematically) varied. One way to do this is with bootstrapping.

Statistical methods

Many statistical methods may be used for statistical analyses. A very brief list of four of the more popular methods is:

● General linear model

A widely used model on which various methods are based (e.g. t test, ANOVA, ANCOVA, MANOVA). Usable for assessing the effect of several predictors on one or more continuous dependent variables.

● Generalized linear model

An extension of the general linear model for discrete dependent variables.

● Structural equation modeling

Usable for assessing latent structures from measured manifest variables.

● Item response theory

Models for (mostly) assessing one latent variable from several binary measured variables (e.g. an exam).

Tools for Data Analysis

The processing and analysis of data was done with the help of the computer software package SPSS version 16.0.

122 CHAPTER 10

TESTING OF HYPOTHESIS

123 CHAPTER 10 TESTING OF HYPOTHESIS

Hypothesis 1

H01 : There is no significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

H11 : There is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

Satisfaction:

Table 10.1: Responses related to satisfaction

Very Poor Poor Fair Good Excellent

Count Row Count Row Count Row Count Row Count Row

N % N % N % N % N %

Q1 1 1.9% 0 .0% 3 5.8% 18 34.6% 30 57.7%

Q2 1 1.9% 1 1.9% 0 .0% 12 23.1% 38 73.1%

Q3 1 1.9% 0 .0% 1 1.9% 7 13.5% 43 82.7%

Q4 1 1.9% 0 .0% 7 13.5% 13 25.0% 31 59.6%

Q5 0 .0% 0 .0% 8 15.4% 15 28.8% 29 55.8%

Q6 1 1.9% 0 .0% 1 1.9% 15 28.8% 35 67.3%

Q7 2 3.8% 0 .0% 3 5.8% 13 25.0% 34 65.4%

Q8 1 1.9% 0 .0% 5 9.6% 11 21.2% 35 67.3%

Q9 0 .0% 0 .0% 1 1.9% 14 26.9% 37 71.2%

124 Figure 10.1 : Responses showing distribution of satisfaction level of respondents

Table 10.2 : Responses related to behavioural characteristics

Never Seldom Sometimes Often Always

Count Row Count Row Count Row Count Row Count Row

N % N % N % N % N %

Q2 1 1.9% 0 .0% 1 1.9% 11 21.2% 39 75.0%

Q3 0 .0% 1 1.9% 2 3.8% 12 23.1% 37 71.2%

Q4 0 .0% 0 .0% 8 15.4% 19 36.5% 25 48.1%

Q5 1 1.9% 0 .0% 4 7.7% 4 7.7% 43 82.7%

Q6 0 .0% 1 1.9% 1 1.9% 13 25.0% 37 71.2%

Q7 0 .0% 1 1.9% 4 7.7% 15 28.8% 32 61.5%

Q8 1 1.9% 0 .0% 5 9.6% 20 38.5% 26 50.0%

Q9 1 1.9% 2 3.8% 4 7.7% 19 36.5% 26 50.0%

125 Figure 10.2 : Responses showing distribution of behavioural characteristics of respondents

Table 10. 3 : Responses related to motivational factors

Never Seldom Sometimes Often Always

Count Row Count Row Count Row Count Row Count Row

N % N % N % N % N %

Q1 1 1.9% 0 .0% 2 3.8% 6 11.5% 43 82.7%

Q10 0 .0% 1 1.9% 5 9.6% 7 13.5% 39 75.0%

Q11 0 .0% 1 1.9% 3 5.8% 11 21.2% 37 71.2%

Q12 0 .0% 1 1.9% 4 7.7% 12 23.1% 35 67.3%

Q13 1 1.9% 0 .0% 12 23.1% 12 23.1% 27 51.9%

126 Figure 10.3 Responses showing distribution of different variables

: Responses showing distribution of different variables

Using these scores three latent variables were obtained by taking the average in each category. The variable satisfaction is obtained by taking the average of Q1 to Q9 in the first part of the questionnaire, Variable Behavioural characteristics is obtained by taking the average score of Q 2 to Q 9 in second part of the questionnaire and Variable motivation is obtained by taking Q1, Q10 to Q13 of second part of the questionnaire which is further used to test the said hypothesis. Spearmen's rank correlation is used to test the hypotheses. Spearman's rho table: Table 10.4 : Spearmen's rank correlation for satisfaction Behavioural characteristics Satisfaction level Correlation Coefficient .597 Sig. (2-tailed) .000 N51 Interpretation: The Spearman's rho value is 0.597 with positive sign and p-value less than that of 0.05 indicates that there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

The hypothesis H11 is accepted i.e. there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra.

127 Hypothesis 2

H02 : There is no significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra.

H12 : There is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra. Figure 10.4 : Responses showing distribution of satisfaction level & behavioural characteristics

Thus there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in Maharashtra Spearmen's rank correlation is used to test the hypotheses. Spearman's rho table: Table 10.5 : Spearmen's rank correlation for satisfaction Behavioural characteristics Motivational factors Correlation Coefficient .554 Sig. (2-tailed) .000 N51 Interpretation: The Spearman's rho value is 0.554 with positive sign and p-value less than that of 0.05 indicates that there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra. Thus there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra. The hypothesis H12 is accepted i.e. there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in Maharashtra. 128 Hypothesis 3

H03 : There is no significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

H13 : There is a significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra. Figure 10.5 : Responses showing distribution of motivational factors & behavioural characteristics

Spearmen's rank correlation is used to test the hypotheses. Spearman's rho table: Table 10.6 : Spearmen's rank correlation for job satisfaction Satisfaction Level Job Satisfaction Correlation Coefficient .478 Sig. (2-tailed) .000 N51 Interpretation: The Spearman's rho value is 0.478 with positive sign and p-value less than that of 0.05 indicates that there is a significant relationship between motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra. Thus, there is a significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra

The hypothesis H13 is accepted i.e. there is a significant relationship between various motivating factors and level of job satisfaction of managerial staff in Powerloom Industry in Maharashtra.

129 Hypothesis Null Hypothesis Alternate Hypothesis Accepted Hypothesis

1 There is no significant There is significant There is significant

relationship between relationship between relationship between

behavioural characteristics behaviouralch aracteristics behavioural

and satisfaction level and satisfaction level of characteristics and

of managerial staff in managerial staff in satisfaction level of

Powerloom Industry Powerloom Industry in managerial staff in

in Maharashtra. Maharashtra. Powerloom Industry

in Maharashtra.

2 There is no significant There is significant There is significant

relationship between relationship between relationship between

behavioural behavioural behavioural

characteristics and characteristics and characteristics and

motivating factors of motivating factors of motivating factors of

managerial staff in managerial staff in managerial staff in

Powerloom Industry Powerloom Industry in Powerloom Industry

in Maharashtra Maharashtra . in Maharashtra

3 There is no significant There is significant There is significant

relationship between relationship between relationship between

various motivating various motivating various motivating

factors and level of job factors and level of job factors and level of

satisfaction of satisfaction of job satisfaction of

managerial staff in managerial staff in managerial staff in

Powerloom Industry Powerloom Industry in Powerloom Industry

in Maharashtra.. Maharashtra. . in Maharashtra.

130 CHAPTER 11

CONCLUSIONS

131 CHAPTER 11 CONCLUSIONS

Analysis of hypothesis first revealed that there is a significant relationship between behavioural characteristics and satisfaction level of managerial staff in Powerloom Industry in

Maharashtra. This indicates that the satisfaction level of managerial staff depends upon different behaviour characteristics of managerial staff.

Analyses also revealed that there is a significant relationship between behavioural characteristics and motivating factors of managerial staff in Powerloom Industry in

Maharashtra. It is concluded that the motivation level of managerial staff depends upon different behaviour characteristics of managerial staff.

It is also concluded from the study that there is a significant relationship between motivating factors and the level of satisfaction of managerial staff in Powerloom Industry in Maharashtra.

From the above study of hypothesis, one can conclude that work satisfaction and behavioural characters are connected, this would also lead to the work ethic and attitude of the person involved greatly influences his/her satisfaction level at work place.

Furthermore, if a person is of the right attitude, de-motivating factors for such a person are limited. One can conclude that the attitude and work ethic works in both ways, influencing the person himself as well as those around him. This could be one of the factors why Self-

Motivated people are preferred by the industry; and why HR department is focussed on keeping the morale high.

As a corollary, one can also conclude that motivating factors would also be connected to satisfaction levels at the work place.

132 CHAPTER 12

RECOMMENDATIONS

133 CHAPTER 12 RECOMMENDATIONS

It is recommended from the findings that the higher authorities in Powerloom Companies should always look after various behavioural characteristics of managerial staff in Powerloom

Industry in Maharashtra as it has significant relationship with motivation level and satisfaction level of managerial staff.

The managerial staff in Powerloom Companies should also try to develop their own various behavioural characteristics so that they can manage their motivation and satisfaction level.

Authorities in Powerloom Companies should evaluate the performance of each employee from time to time and ensure that if, the employee is motivated, satisfied and productive, than, he or she should be properly rewarded.

Training should be organized by in Powerloom Companies either in-house or outside from time to time to make employees learn how to do their job well. Development and growth opportunities should be provided to employees on regular basis so that they should keep themselves motivated and feel satisfied.

Employees in Powerloom Companies should be trained in such a way so that they can develop their behavioural characteristics and in turn increase their satisfaction and motivation level.

134 CHAPTER 13

BIBLIOGRAPHY

135 CHAPTER 13 BIBLIOGRAPHY

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139 APPENDIX

QUESTIONNAIRE

140 APPENDIX

QUESTIONNAIRE

Demographic details

Name of respondent : ………………………………………......

Age : ……………………......

Gender : ……………………......

Designation : ……………………......

Education : ……………………......

Years of experience : ……………………......

Department : ……………………......

Income Range :

● 25000 p.m.

● 25000 to `35000 p.m.

● 35000 to `45000 p.m.

● < `45000 p.m.

Please give ratings to the given question according to your opinion by putting a tick (?) in the appropriate cell.

141 Research questionnaire for managers

Section 1

Sr. Question Excellent Good Fair Poor Very Poor

12345

1 How would you rate

organization's work

environment?

2 What do you think about

promotional policy in your

organization?

3 What do you think about the

wage policy of your

organization compare to those

of other organization?

4 Do you think that pay for

your job is fair compare to the

other jobs in the department?

5 What do think about the pay

revision of your organization

compare to those of other

organization?

6 What do you think of existing array of benefits provided by your organization?

7 Considering everything how do you feel about your present job?

8 Do you feel that the other department has a good understanding and appreciation of

the importance of your department?

9 The spirit of cooperation among employees in your department is…..

142 Section 2

Sr. Question Always Often Some Seldom Never

times

12345

1 Do you think that persons with requisite qualification in your department are promoted? 2 Have you ever protested against the pay in equity? 3 Do you have proper equipment and space to do the job assigned to you? 4 Is your superior's instruction clear? 5 When you have a complaint, do you get a fair hearing? 6 Do you get enough information about company's policies to do your work well? 7 Are you kept informed of changes in company's policies and personnel? 8 Do you feel that you receive fair treatment inside your organization? 9 Do you feel free to say what is on your mind when talking

to your boss?

143 Section 3

Sr. Question Always Often Some Seldom Never

times

12345

1 Are your suggestions

well received ?

2 Do you get due credit for your good work or a fruitful suggestion? 3 Do you enjoy complete freedom in making decision in regard to matters which can be disposed of at your level itself? 4 Do you think that your superiors also have the same sort of interference from his to official, (or) politicians in power in internal matters of the organization and management?

144