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A Project Report On A PROJECT REPORT ON “Comprehensive Study of all functional areas” FOR “SUPREME FILAMENTS(P)LTD." Submitted to C K SHAH VIJAPURVALA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION Under Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Company guide Dr.Kerav Pandya Mitul Mehta Prof. CKSVIM Production Head Submitted by PRIYANK SHAH Enrollment no: 117050592031 M.B.A-SEMESTER - III C K Shah Vijapurwala Institute of Management M.B.A PROGRAMME Affiliated to Gujarat Technological University Ahemdabad July2012 PREFACE The student of M.B.A. has to make a project report for the purpose of our university examination. So, I have selected to make a report on the Supreme filaments(P)ltd.. This has helped me to enrich their theoretical knowledge about the working and functioning of all departments in the particular area of the management and I have achieved this opportunity to do a project report. ACKNOWLEDGEMENT I am highly thankful to Mr. Ajay R Gupta for allowing me as a trainee for summer internship of 45 days i.e., from 18 th June to 28 July 2012 in addition to helping me in my practical studies at the M.B.A and study the entire organization and various aspects of managerial functions. They provided me many details and enlighten me in preparation of this project report. I take this opportunity to thank our Dr. Kerav pandya who had guided me throughout the project and gave me valuable suggestions and encouragement. DECLARATION I, Priyank shah, hereby declare that the report for “summer training project” entitled “ Comprehensive Study of all functional area ” is a result of my own work and my indebtedness to other work publication references, if any, have been duly acknowledged. Place: Vadodara Date : Priyank shah EXECUTIVE SUMMARY The Supreme filaments(P)ltd. is one of the popular local company for making a POY (Partially Oriented Yarn) and PTY (Polyester Texturised Yarn), which is situated in Surat. It has two plants in village Kim and Karanj and one office in Surat. The main aim of the company is to serve better to the customers. The Supreme filaments(P)ltd. has several departments for particular task i.e., administration, human resource, storage, and dispatch departments. The company is distributing their products to the customers in two ways – directly to the customer and through a broker. The company is having around 70 to 75 brokers for selling their products. Since the major raw material is available indigenously, there is no need to import the same. However, now since the company is moving towards backward integration. They believe in specialization into their business segments and to become cost efficient to remain competitive in the market. INDEX Chapter Subject Page no. 1 Textile Industry 1 1.1 Indian Textile Industry 2 1.2 Textile Industry 3 1.3 History of Textile Industry 4-6 1.4 Current Scenario For Textile Industry 7-8 1.5 Latest News In Textile Sector 9 1.6 Polyester Industry 10 1.7 Advantages of Polyester 10-11 Vis-à-vis Cotton 1.8 Per Capita Consumption 12 1.9 Unique Characteristics of Polyester Fiber vis-à-vis 13-14 Cotton Fiber 2 Introduction to the Company 15 2.1 Business Overview 16 2.2 History & Major Events 17 2.3 Business Strategy 18 2.4 Brief Details About POY Manufacturing Unit 19 2.5 Infrastructure Facility 20-24 2.6 Future Prospects 25 2.7 Licensed Installed capacity & Capacity Utilization 25 3 Production Department 26 3.1 Proposed Product POY 27-32 3.2 Existing Product for PTY 33-35 4 Human Resource Department 36 4.1 Recruitment 37 4.2 Selection 37 4.3 Training & Development 37 4.4 Communication 38 4.5 Performance Appraisal 39 4.6 Compensation 39 4.7 Employee Benefits & Services 39 4.8 Organizational Chart 40 4.9 Distribution Channel 40 4.10 Department 41 5 Marketing Department 42 5.1 Market For PTY & POY 43 5.2 Distribution channel 43 5.3 Competition 44 5.4 Approaches to Marketing & Proposed Marketing Setup 44 5.5 Competitive Strengths 45 5.6 SWOT Analysis 46-48 6 Finance Department 49 6.1 What is Finance? 50 6.2 key Activities of the Financial Manager 51 6.3 Emerging role of Finance Manager in India 51 6.4 Insurance 51 7 Suggestions 52-53 8 Conclusion 54-55 9 Bibliography & References 56-57 CHAPTER – 1 TEXTILE INDUSTRY 1.1 Indian Textile Industry Textile Industry is one of India’s largest industries, after agriculture. It provides direct employment to about 350 Lacs people. Besides this, there are a large number of ancillary industries, which are dependent upon this sector such as, manufacturing various machines, accessories, stores, ancillary items and Chemicals. Known globally for its skill and craftsmanship, the Indian textile industry is also one of the largest export earners and accounts for about 35% of the gross export earnings in trade. Trade restrictions have hitherto kept the Indian textile industry from soaring to the height it is capable of, but this is expected to change post January 2005, as the quota restrictions have been removed. Textiles covers the following sub-segments: - 1) Fiber intermediates; P-X, DMT, PTA, MEG, Caprolactum, Wood Pulp etc., 2) Fibers: ginning and pressing of cotton, manufacture of PFY, NFY, Rayon fiber etc. 3) Synthetic fiber/filament processing viz., drawing, texturising, twisting etc., 4) Yarn: spinning cotton & blends on rotors and ring frames 5) Weaving/Knitting 6) Processing and 7) Distribution. The Indian textile industry is large and diverse, unique for its coverage of the entire gamut of activities ranging from production of raw material to providing the consumers high value added products, such as fabrics and garments. The key segments of Indian Textile Industry are divided into Fiber, Yarn, Fabrics and Made-ups. The multi-fiber base of Indian textiles comprises natural fibers such as cotton, jute, flex, silk, wool and coir, and synthetic and man-made fibers from polyester, viscose, acrylic, polypropylene and nylon. Though primarily cotton based, Indian textile industry has a growing polyester sector and is active in processing linen, wool and silk. 2 1.2 Textile Industry The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture . Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy. Its vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women and the disadvantaged are noteworthy. Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 150 billion by 2015 of which the share of garments will be US $ 70 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The main objective of the textile policy 2000 is to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market. 3 1.3 History of Textile Industry The textile industry, with its extremely long and rich history, has had a massive impact on the world economy and the very evolution of modern society. Weaving is believed to be one of the oldest surviving crafts in the world today, the actual origins of which are thought to date back to Neolithic times 12,000 years ago. Even before that time, the same principle was used to interlace branches and twigs to form protective fences, shelters and baskets. Once the practicality of interlacing these kinds of materials was understood, further experimentation with other natural materials probably produced the first basic fabrics and cloths. Early spinning There seems little doubt that one of the earliest textile fibers available for spinning into yarn and then weaving into cloth was wool from sheep. The two stage spinning process requires that a fleece is opened to form a sliver of fibers which can be drawn out to produce an increasingly fine thread. This is then twisted to form a yarn. Our early ancestors probably twisted a few fibers from a lock of wool to form an extending length of yarn, which would be wound into a ball. At a later stage the yarn was wound on to a stick and a simple flywheel added at the lower end to produce a spindle. From this the spinning wheel developed, invented first in India and then reaching Europe some time in the late 14th century. The first loom The first "loom" is thought to have been something as simple as the straight branch of a tree running reasonably parallel to the ground.
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