An Internship Project Report on

SPL INDUSTRIES PVT LTD

FARIDABAD

Submitted to BANGALORE UNIVERSITY in partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINISTRATION

By

HARSH YADAV
(Reg.no.10DKCMAO34)

Guide Dr. D.K. MURTHY

SESHADRIPURAM INSTITUTE OF MANAGEMENT STUDIES Yelahanka New Town, Bangalore- 560 106

DECLARATION
I declare that this internship project report on SPL Industries Private Limited, Faridabad is an original and bonafide work carried out by me during 2010-2011 under the supervision of Dr. D.K. Murthy, Prof and Director of Seshadripuram Institute of Management Studies. This report is submitted in partial fulfillment of the requirement of Master of Business Administration of Bangalore University. I also declare that no part of this representation has been previously published or submitted as a project representation for any Degree or Diploma of Bangalore University.

Place: Bangalore Date:

HARSH YADAV (Reg.No.10DKCMA034)

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GUIDE CERTIFICATE

This is to certify that Mr. HARSH YADAV bearing university register number 10DKCMA034 has completed this internship project on SPL Industries LTD under my guidance. This project is based on original study conducted by him and the report has not formed a basis of awarding any other Degree/ Diploma/ Certificate by this University or any other University.

Place: Bangalore Date:

Dr. D.K. Murthy (Prof & Director)

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ACKNOWLEDGEMENT Internship programmed at the SPL INDUSTRIES LTD, Faridabad has been truly a memorable and knowledgeable experience.

Firstly of all I would like to thank our Principle Dr. M. Prakash, Director Dr. D.K MURTHY and all faculty member of MBA department, SESHADRIPURAM INSTITUTE OF MANGEMENT STUDIES, YELAHANKA NEW TOWN, BANGALORE- 106 for their guidance and support for the project work. I express my gratitude to my guide Dr. D.K MURTHY for his keen interest and valuable guidance during the course of this project. I also thank Mr. R.N Yadav (Manger HR), Mr. Nitin Gupta (HR Executive) my organizational guide and all the staff member of SPL INDUSTRIES LTD, Faridabad for providing the required information and all the respondents without whose co-operation it would not have possible to undertake this project. It is my for most duty to thank my beloved parents and friends for being the source of inspiration and having rendered me all the support that I need.

Place: - Bangalore Date: -

HARSH YADAV (Reg. No: - 10DKCMAO34)

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Contents

Chapter 1 2 3 4

Details Economic Scenario Industry Analysis Company Analysis Functional Analysis:4.1 Production Department 4.2 Marketing Department 4.3 Finance Department 4.4 Human Resource Department 4.5 EDP Department

Page 1 9 14

23 31 36 43 52 54 56 58 60 61

5 6 7

SWOT Analysis of the company Summary of Findings, Conclusion & Suggestions Learning Experience Bibliography Annexure

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Chapter I

ECONOMIC SCENARIO
ECONOMIC SCENARIO IN INDIA Over the last couple of decades, India has established itself as one of the fastest growing economics in the world. India is also advancing towards the economical growth and improvement in literacy. In the first five year plan India had attained an average annual growth rate by 3.5 percent and during the 90s India economy showed an average growth rate of 6.4 percent, which was 5.9 percent in the 80s. In the consecutive three Five Year Plans (2nd,3rd and 4th), India had experienced an increasing growth rate and eventually at the end of the 8th Five Year Plan, the annual growth rate of India reached 6.9 percent. During the period from 1991-92 the Indian economy passed through a tough time, when almost every macroeconomics indicators showed poor performance. The overall economic growth in this period declined to 1.1% and the total fiscal deficit became 8 percent of the GDP (Gross Domestic Product). The Government of India adopted various effective programs of structural reforms with an objective to encourage external trade, industrial policy and exchange rate. The recent years have been another year of strong growth for the Indian Textile and Clothing Sector. The domestic economy has exhibited robust growth which is also reflected in the clothing sector where expansions and enhanced manufacturing activity dominated the scene. This was driven by both, the increased export opportunity from India with dismantling of quota as well as the robust domestic demand. Apparel export from India grew by almost 20 percent to 25 percent. The main areas of growth being the Europe and United States markets. 1.4 CURRENT RATES Bank rates :- 6% Repo rate :- 8 % Reverse Repo rate :- 7%

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1.4(a) Ratios CRR:- 6% SLR:- 24%

1.5 Functioning of the Capital Market The main function of the capital market is to channelize investments from the investors who have surplus fund to the investors who have deficit funds. The different types of financial instruments, which are traded in the capital markets, are equity instruments, insurance instruments, foreign exchange instruments, hybrids instruments and derivative instruments. 1.6 Exchange rate as on 9th September 2011 INR/1 USD:- 46.10 INR/ Euro:- 64.1362 INR/100 Japanese YEN:- 100 INR/1 pound sterling:- 73.5556

The Government has not conducted any study to assess the impact of global slowdown on Indian Textile and Clothing industry. However, the confederation of Indian Textile Industry and other Textile Export Promotion Councils has conducted a study on Impact of Economic slowdown on Indian Textile and Clothing Industry. The study showed decline in textile production and textile exports, decline in textile imports by Indias major trade partners and deterioration in the financial performance of textile and clothing companies during 2008-2010. 1.7 Union Budget 2011-12 Finance minister Pranab Mukherjee today unveiled the Union Budget for the financial year 2011-12 in the Parliament. The Union Budget 2011-12 aims to sustain economic growth, strengthen infrastructure, moderate the price rise, particularly of agricultural produce and reduce social imbalances through inclusive development. Presenting the budget 2011-12, the Finance Minister Shri Pranab Mukherjee said that the budget is a transition towards a more transparent and result oriented economic management system in India.

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The Finance Minister said that huge differences between wholesale and retail prices are at the expense of remunerative prices for the farmers and competitive prices for consumers.

Following are the salient points and proposals made by Mukherjee in his budget speech: For sustaining growth tax reform will continue with the Direct Taxes Code (DTC) to be operationalised from April, 2012 while a Constitution Amendment Bill is proposed to be introduced during the current session of Parliament as a step towards roll out of the Goods and Services Tax (GST). He said the introduction of DTC and GST will result in moderation of rates, simplification of laws and better compliance. Rs. 3000 crore will be provided to NABARD to help handloom weaver cooperative societies to become financially viable. A nominal 1 per cent central excise duty is being imposed on 130 items. The basic customs duty has been reduced from 30 to 5 per cent on raw silk, from 5 to 2.5 per cent on certain textile intermediates and from 7.5 per cent to 5 per cent on certain inputs for manufacture of technical fabric and yarn. For readymade garments and made-ups of textiles, the optional levy has been converted into a mandatory levy at a unified rate of 10 per cent. The levy would however, apply only to branded garments or made-ups and not to those tailored or made to order for a retail customer. Credit of tax paid on inputs, capital goods and input services would be available to manufacturers of these products. Export o these items would continued to be zero-rated. Excise tax on diapers and sanitary napkins reduced from 10% to 1%. Need to improve agricultural demand Next Budget will be more transparent

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Budget will set the tone for a vibrant Indian economy Taxes, tariff procedures will be simplified Economy expected to grow at 9% GST bill in current session Liberalization of FDI policy Agricultural credit limit raised to Rs 4,75,000 crore Allocation for farm development increased to Rs 7,860 cr Revenue deficit is estimated at 3.4% Service tax to boost revenue by Rs 4,000 cr The fiscal deficit is estimated at Rs. 4,12,817 crore which works out to 4.6 per cent of the GDP. The minimum alternate tax rate has been hiked from 18 per cent to 18.5 per cent of book profits. Developers of Special Economic Zones as well as units operating MAT in SEZs have been brought under MAT.

1.8 GDP Trends The choice of economic indicators is a sensitive issue as the forecast performance depends on the quality of the indicators. The indicators should cover all the broad sectors in the economy, viz, real sector, financial sector, government sector, external sector, etc. The Gross Domestic Product (GDP) in India expanded 7.7 percent in the second quarter of 2011 over the previous quarter. Historically, from 2000

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until 2011, India's average quarterly GDP Growth was 7.45 percent reaching an historical high of 11.80 percent in December of 2003 and a record low of 1.60 percent in December of 2002. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India's economy grew 7.7% in the three months from April to June, compared with the same period of 2010. It was India's weakest growth for six quarters, but still better than had been expected.

The gross domestic product (GDP) growth figure from the finance ministry compares with the annual rate of 7.8% in the first three months of the year.

The slowdown is expected to continue as India's central bank continues to raise interest rates to control inflation.

The Reserve Bank of India (RBI) has raised interest rates 11 times since March 2010. The next rate-setting meeting is on 16 September, when many economists expect rates will rise again.

Inflation in July was 9.22%, which was well above the RBI's target rate of 4% to 4.5%. The sector breakdown showed that the construction sector had been one of the worst-performing parts of the economy.

Construction grew at an annual rate of 1.2% in the second quarter, down from 8.2% in the previous quarter, as rising interest rates and delays in planning approvals held up building projects.

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Farm output rose 3.9%, which was down from the previous quarter but above the level of 2.4% in the same period last year.

The manufacturing sector grew 7.2%, an improvement from the previous quarter, but well below the 10.6% in the second quarter of 2010.

1.8 (a) Estimated GDP Growth Rate:- India's Economy Grows 7.7% 1.8 (b) Per Capita Income in India :- increased by 14.5% India's per capita income, often used to measure a country's standard of living, increased by 14.5 per cent during 2009-10 to Rs 46,492, Parliament was informed today. In 2008-09, the per capita income, which measures the income per person in a population, was Rs 40,605, Statistics and Programmed Implementation Minister M S Gill said in a written reply in the Lok Sabha. "The per capita income at factor cost during 2008-09 and 2009-10 are estimated as Rs 40,605 and Rs 46,492, respectively, at current prices," said Gill. In response to a query, he said, the separate per capita income figures for rural and urban areas are available till the base year 2004-05, as the data is compiled only in the base year of the National Accounts Statistics. As per the base year 2004-05, the per capita income in rural areas was Rs 16,327, while in the urban areas it stood at Rs 44,223.

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1.9 Monetary and Fiscal Polices 1.9(a) Monetary Policy:Monetary Policy can be defined broadly as any policy relating to the supply of money. It is common to speak of monetary policy as being tight or even of being neutral. Monetary Measures Money Supply Growth: - because the growth in aggregate demand depends heavily on the growth in the supply of money, it would be logical to measure the posture of monetary policy is said to be easy when, during a sustained period, the supply of money increases at a rate that is high or rising relative to a recent trend. Alternatively, policy is said to be tight when the rate of money growth is low or falling relative to a trend. Interest Rates: - A logical reason for focusing on interest rates in judging monetary policy is that they are an important link by which changes in money supply are transmitted to real economy. That is, changes in money supply growth lead to changes in market interest rates and these changes then influence households in their decisions to buy homes, automobiles, appliances, and the like, and businesses in their decisions regarding inventories, plant and equipment pare purchases. Annual Variations in Monetary Aggregates as of MAY increased by 14.5 2011(%)

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1.9(b) Fiscal Policy Indias fiscal sector reforms help to raise the rate the rate of saving and investment in India. This further help to enhance the productivity of public expenditures. Components of Indias Fiscal Sector Reforms Some of the major components of Indias fiscal sector include expenditure reforms, tax reform measures, and public sector reconstructing and systematic reforms in governments borrowing process. Fiscal Situation of the Central Government (%of GDP)

ITEM 1. Gross Tax Revenue 2. Total Expenditure (a) Revenue Expenditure (b) Capital Expenditure 3. Fiscal Deficit 4. Revenue Deficit 5. Primary Deficit

2008-09 11.8 16.9 15.1 1.8 6.2 4.6 2.6

2009-2010 10.9 17.4 15.3 2.1 6.8 4.8 3.0

2010-2011
9.32 13.58

12.23 1.35
5.1 4.6 3.2

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Chapter 2

INDUSTRY ANALYSIS
The textiles industry in India enjoys a distinctive position due to the pivotal role it plays by way of contribution to industrial output, employment generation (second largest after agriculture) and export earnings of the country. The industry is rich and varied, embracing the hand-spun and hand-woven sector at one end and the capital intensive, sophisticated mill sector at the other. Its association with the ancient culture and tradition of the country lends it a unique advantage in comparison with textiles industry of other countries, thus giving it an uncommon edge to cater to a vast variety of products and market segments both domestically, as well as, globally. The industry currently contributes about 14 per cent to industrial production, 4 per cent to GDP, and 17 per cent to the countrys export earnings, according to the Annual Report 2010-11 of the Ministry of Textiles. The industry accounts for nearly 12 per cent share of the country's total exports basket. It provides direct employment to more than 35 million people. 2.1 Industry sub-sectors The textile industry comprises the following:

Organized Cotton/Man-Made Fiber Textiles Mill Industry Man-Made Fiber / Filament Yarn Industry Wool and Woolen Textiles Industry Sericulture and Silk Textiles Industry Handlooms, Handicrafts, the Jute and Jute Textiles Industry Textiles Exports

2.2 Market size The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12) sees India securing a 7 per cent share in the global textiles trade by 2012. At current prices, the Indian textiles industry is valued at US$ 55 billion, 64 per cent of which caters to domestic demand.

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The export of textiles and clothing (T&C) aggregated to US$ 22.42 billion in 2009-10. The Government fixed the target for 2010-11 at US$ 25.48 billion. So far during the period April- September 2010, exports of T&C have been achieved at US$ 11.26 billion. 2.3 Production During February 2011, total cloth production rose by 5.8 per cent year-on-year (y-o-y). During AprilFebruary 2011 cloth production increased by 4.5 per cent y-o-y. 2.4 Export Total textile exports during April-December 2010 registered an increase of 16.54 per cent in rupee terms at Rs 87,582.83 crore as against Rs 75,149.98 crore during the corresponding period of the previous year, according to the latest data released by DGCI&S, Kolkata. The same were valued at US$ 19,217.12 million as against US$ 15,695.07 million during the corresponding period of the previous year, registering an increase of 22.44 per cent. The share of textile exports in total exports was 11.29 per cent during April-December 2010 as against 12.34 per cent during April- December 2009. 2.5 Technical Textile Segment The technical textiles segment is expected to grow by 11 per cent per annum till 2012-13 and is likely to grow at 6-8 per cent per annum till 2020 without any policy interventions. If the government intervenes by way of regulatory push, the growth of technical textiles industry can be estimated at 12-15 per cent per annum till 2020, according to Rita Menon, Secretary, and Union Ministry of Textiles. She added that the technical textiles segment in India has the potential to attract investment and create additional employment opportunities in coming years. She further said that investments of US$ 1.1 billion are expected by 2012 and employment is expected to increase to 1.2 million by 2012. Textile business is one among the largest foreign exchange earners in India and this sector has been significantly benefitted from the termination of Multi-Fiber Arrangement in the year 2005. Out of the

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total exports in India, 17% is contributed by the textile industry in India and this industry account for 14% of its industrial production. More than 35 million people are employed in this sector. When it comes to Indias exports, carpets and readymade garments offer larger contributions. The names of top players in the Indian Textile Industry are given below: Top companies in Textile industry in India: Bombay Dyeing Fabindia Grasim Industries JCT Limited Lakshmi Mills Mysore Silk Factory Arvind Mills Raymonds Reliance Textiles 2.6 Textile industry in India 2.6 (a) History The history of textile is almost as old as that of human civilization and as time moves on the history of textile has further enriched itself. In the 6th and 7th century BC, the oldest recorded indication of using fiber comes with the invention of flax and wool fabric at the excavation of Swiss lake inhabitants. In India the culture of silk was introduced in 400AD, while spinning of cotton traces back to 3000BC. In china, the discovery and consequent development of sericulture and spin silk methods got initiated at

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2650 BC while in Egypt the art of spinning linen and weaving developed in 3400 BC. The discovery of machines and their widespread application in processing natural fibers was a direct outcome of the industrial revolution of the 18 th & 19 th centuries. The discoveries of various synthetic fibers like nylon created a wider market for textile products and gradually led to the invention of new improved sources of natural fiber. The developed of transportation and communication facilities facilitated the path of transaction of localized skills and textile art among various countries. Indian textile enjoys a rich heritage and the origin of textile in India traces back to the Indus valley Civilization where people used homespun cotton for weaving their clothes. Rigveda, the earliest of the Veda contains the literacy information about textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment worn by the aristocrats and ordinary simple clothes worn by the common people. The contemporary Indian Textile not only reflects the splendid past but also cater to the requirements of the modern times. There has been a distinct and positive shift from quality to quality to quality. Earlier Indian textile were considered cheap and of low quality. The industry was at that time driven by large volumes, which were of paramount importance. The best quality was produced in Europe and Japan. Since then, India has come a long way, emerging as a manufacturer of quality yarns and fabrics. The leading mills such as Raymonds, Read &Taylor, Aravind mills etc, improved their quality standards prevailing into the world. 2.7 Number of Competitors The competitors for Indian Export oriented textile industry are: Pakistan China Bangladesh Vietnam

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2.8 Growth Rate of Textile Industry Textile industry growth rate to reach 16%. The textiles sector is expected to attract an investment of Rs 1,50,600 crore by the end of 11th Plan and it would generate employment opportunities for a 17.35 million workforce, of which 5.2 million will be skilled, according to the Minister of Textiles, Mr Shankersingh Vaghela. Textile exports are expected to grow by 22 percent and would earn USD 55 billion by the year 2012. 2.9 Suppliers of Raw Materials in INDIA Fabrics for textile industry are supplied by: loyal textile mills, PMA Hand Weave Pvt LTD, V.N Dyers and Processors Pvt. Ltd. Kints and knitted fabrics are supplied by: Vel textile, Alpha clothing company, Glory House Apparels, and Daisy Apparel Designers etc. Colours and chemicals are supplied by: Bhatia colour company, Yoshiaki chemicals company Pvt. Ltd, Triveni chemicals, Ava Chemical Pvt. Ltd. Machines are supplied by: Pradeep Industries, Tanishq Enterpries. Threads, Laces, Yarns and other accessories are supplied by: Narendra Corporation, Viken Tape Industries, Shivam Narrow Fabrics, Rahil Foam Pvt. Ltd., Anil associates etc. 2.10 Key Success Factors in textile Industries Some of the key success factors are:1. Willingness to Invest and re-invest in the company. 2. Cultural Openness to changes. 3. Focus to excellence and differentiation. 4. Being stable ground. 5. Understanding of the work environment and the Items to be produced and marketed. 6. Having the operational basis. 7. Well defined target markets. 8. Quality and diversity, Resources to execute changes. 9. Implementing change proactively. 10. Innovation and Technological change.

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Chapter 3

COMPANY PROFILE

3.1 Introduction to SPL INDUSTRIES LTD. SPL INDUSTRIES LTD. is a privately owned company of Garment Manufacturing. Starting from the modest turn over in 2007 it has a Group turnover of forty million USD with garment export of over 10 million units annually. SPL INDUSTRIES LTD is a favored supplier of garments not only in countries but in continents. 3.2 Company Name 3.3 Type of Organization 3.4 Year of Incorporation 3.5 Company Profile 3.6 Mission:As a textile group we value for our customers, to earn a long term loyalty. To attain this we are here as a vertically integrated textile group. 3.7 Goals: SPL INDUSTRIES LTD always strives to achieve greater heights Back integration into Processing of knitted fabric with an outsourcing knitting and yarn. Domestic foray a small start through opening of their first shop SAM & SALLY. Almost doubling of capacity from 20,000 pieces per day to 40,000 pieces per day. Home textile. Setting up of art garment wet dry processing plant. : SPL INDUSTRIES LTD : Private Limited Company of Textiles / Garments / Accessories. : 1994 : Three Star Export house exporting fabric, knitted garments.

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3.8 OBJECTIVE OF COMPANY The objectives of SPL INDUSTRIES LTD are achieved through the implementation and maintenance of well document system to meet the requirement of buyers standards. Objectives establish the goals and the aims of business and determine its shape of future event. Objective are they way of achieving motives for profit or self service. Objective represents a clear picture of activities which are sought to be achieved. Main objectives of SPL INDUSTRIES LTD as given memorandum of association are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. To introduce new products and create new markets. Increasing productivity of work force. Customer service and Customer satisfaction. Increasing work culture among the employees. Capitalizing on company strengths and use of corporate assets. Increase quality products and services. Continuous innovation. To provide a growth rate of about 10% per annum. Improve the advertising effectiveness. To ensure that large proportion of sales in directed towards the rural sectors and urban sectors.

SPL INDUSTRIES LTD has become favored supplier of high fashion garments to leading customers in many countries and continents. Efforts are made from the stage of raw materials arrived at the units of the heart manufacturing facilities along with the professional team of stitching consultants all lead to high productivity and efficiency. The SPL INDUSTRIES group has a passion for innovation at every stage of sampling and production coupled with fully equipped laboratories for continuous research and development that ensure that the final product.

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3.9 Promoters of the Company Mr. H.R. GUPTA Mr. VIJAY JINDAL

SPL INDUSTRIES LTD is privately owned company being managed by promoters. Mr. VIJAY JINDAL in 1994 started this company. He hails from a family of entrepreneurs. He alone managed his business for many years. Mr. H.R. GUPTA is a nephew of Mr. Vijay Jindal who joined hand in the business, who is a mechanical engineer. He gave a whole new out look to the business &expanding business demand. 3.10 Number of Employees Working The company has a work force of six thousand (6,000) employees spread across its branches located in Faridabad -Industrial Sector -37, Sector -6, Sector-24, Sector- 57 In SPL INDUSTRIES LTD, Faridabad sector-6, the total numbers of employees working are 3160 in plant including 372 administrative staff. 3.12 Classification of Employees The classification of employees is done according to the following factors: Skilled labours Semi-skilled labours Unskilled labours : 1990 : 1000 : 170

3.13 Market Share Market share of the company differs from country and it is not determined by the company and hence not known.

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3.14 Organization Structure

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DIRECTORS

SHIPPING MANAGER

SAMPLE INCHARGE

PERSONNEL MANAGER

GM PRODUCTION

MARKETING MANGER

FINANCE MANGER

SHIPPING OFFICER

PERSONNAL/ WELFARE OFFICER PATTERN MASTER

SERNIOR MERCHANT

ACCOUNTS OOFICER

EDP INCHARGE

SAMPLING CORDINATAR

PERSONNAL ASSISTANT

ASSISTANT MERCHANT

ACCOUNTS ASSIATANT

3.15 Size of Land and Building The overall complex has spread over an area of twelve acres and plant building has a built up area of ten thousand square feet. The plant has advanced in house laboratory for research and development and quality control. The plant site includes extensive facilities for all employees including proper housing,

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canteen facilities etc. SPL INDUSTRIES have their own knitted fabric processing plant where they can control the entire production process and able to match their own standards and requirements. Geographical Location Following is the Geographical Location of SPL INDUSTRIES Ltd. State Haryana City Faridabad Industrial Sector Sector -37, Sector -6, Sector-24, & Sector- 57

3.16 Product Produced at SPL INDUSTRIES LTD.

Fabric knitting Fabric Singeing Fabric Mercerizing Fabric Dyeing / Processing Fabric Shedding and Peaching Fabric Printing Garments Printing & Dyeing Knits Garments Manufacturing: Men, Women & kids Garment Washing Computerized Embroidery Machine and Hand Embroidery Home furnishing

3.17 Suppliers of Raw Materials Raw Materials used: - The basic raw materials used are fabrics which they acquire from Gujarat and every day a truck is sent to Faridabad plants to acquire the raw materials from locally. Other raw materials are sourced from: - Taiwan - Hong Kong - Singapore.

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3.18 SPL AT A GLANCE SECTION KNITTING DYEING FINISHING MERCERIZING FABRIC PRINTING GARMENT WASHING& DYEING KNITTED GARMENTS HOME TEXTILE CAPACITY 24 TONS/day 28 TONS/day 28 TONS/day 05 TONS/day 100,000 Mtr./day 60000 PCS/day 1.7million pcs 100,000sets/ month

3.19 SPL CUSTOMERS Our high profile customers are not happy but also satisfied which has earned us recognition & unflattering loyalty from prominent buyers worldwide. Customers GAP Inc J.C. PENNY KOHLS CORPORATION FEDERATED DEPARTMENT PHILLIPS- VAN HEUSEN HARTMARX CORPORATION SEARs, ROEBUCK & CO. Countries USA CANADA MEXICO UK GERMANY SPAIN NETHERLAND

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3.20 Bankers and Financial Institutions

Sourced from SIDBI Transactions with Corporation Bank IDBI UTI

3.21 Transporters and Dealers/ Agents The company has its own well established road transportation facilities. The forward agent of this company is VRL agents. 3.22 Key Success Factors Well defined target markets. Well defined Quality standards. Openness to change. Innovation and technology. Willingness to invest and re-invest. Good relationship with the suppliers and clients. Coordination between the employees.

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3.23 SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

Strength Automated technology. Good financial strength. Multi skilled employees. Eco friendly business. Flexibility in adopting Innovation technology. Quality certified company. Highly experienced top level managers. Weakness Scope for expansion. Expansion of exports across the globe. Explored option in SEZ industrial area. Government subsidies and special schemes. Difficulty in adopting product pricing strategies. Difficulty in understanding the western customers expectations. Barriers to understand Cultural differences from one country to country. Opportunities. Tax exemptions.

Threats Cut throats competition from the rival companies. Difficulty in adopting product pricing strategies. New entrants. Ever changing demand. Instability in currency values. Fast changing fashions.

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Starting from the modest turnover, in 2007 SPL INDUSTRIES LTD has a turnover of $40 million with garments export of over ten million units annual. SPL INDUSTRIES LTD is currently doing turnover of six million garments every year and increasing constantly (turnover- 200 Crores). In expansion mode to double Turnover by 2009-10. The management of SPL INDUSTRIES LTD recognized the need for expansion and after having explored the various options to set up the expanded capacities at Faridabad it is here that the government has started a SEZ for textile industry. On completion of Faridabad projects the production capacity was grown from the existing 7 million to 20 million garments per annum. In addition to garments manufacturing plant they have planned to expand the kit fabric capacity to 25000lbs per day. The set up of the garments manufacturing and knit processing units at Faridabad was carried out in phased manner which are as follows:Phase I (2007-08):- Garments manufacturing plant - 500 machines, 1000 employees (completed) Phase II-(2008):-Processing plant begins production -12000lbs per day (started in September 4, 2008) Manufacturing plant capacity 1500 machines per day, 3000 employees (completed) Phase III 2009:- Processing plant- 25000lbs per day Manufacturing capacity- 3000 machines. Employees 6000. Phase IV 2010:- Manufacturing capacity -4000 machines, (Knitting Plant operations) employess-8000

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PART- 4.1 FUNCTIONAL ANALYSIS

PRODUCTION DEPARTMENT PRODUCTION is the functional area responsible for turning inputs into finished outputs through a series of production processes. The Production Manger is responsible for making sure that raw materials are provided and made into finished goods effectively. He must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. Production department plays a very crucial role any of manufacturing organization. It is the department which gives life and meaning to the products. The role played by a production department in SPL INDUSTRIES LTD is very vital. SPL INDUSTRIES LTD decides to accept a client a complete team is assigned to the task at hands. The machineries required in the production process are imported from Italy, America, UK, and Turkey. Organizational Chart of Production Department
GENERAL MANAGER

PRODUCTION MANAGER

FLOOR IN CHARGE

QUALITY ASSURANCE MANAGER

FLOOR IN CHARGE

SUPERVISOR

QUALITY ASSURANCE ENGINEER

SUPERVISOR

FEEDER

QUALITY CONTROL

FEEDER

OPERATOR

CHECKER

TAILOR

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Production department is headed by Mr. H.S YADAV; he has vast experience in handling of that department. FIVE PRODUCTION SUB-FUNCTIONS In this company the production function are divided into five sub-functions:1. Production Planning: - the production and planning department in SPL INDUSTRIES LTD will set standards and targets for each section of the production process. The quality of products coming off from a production line will be closely monitored. Focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end. 2. Facilitating Material Acquisition:-the purchasing section in the production department is responsible for providing the materials, components and equipment required to keep the production process running smoothly. Time officer is responsible for a vital role of ensuring stocks arrive on time and to the right quantity. 3. Stock Maintainers: - The stores section of the production department will be responsible for stocking all the necessary tools spares raw materials and equipment required to services the manufacturing process. Buffer stocks are kept and the use of computerized stock control systems helps keep stocks at a minimal but necessary level for production to continue unhindered and smooth flow. 4. Designing and Technical support:- The design and technical support section in the production department will be responsible for reaching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. The technical support officer in the department may be responsible for work study and suggestions as to how working practices can be improved. 5. Maintenance: - the works departments will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The work department may also have responsibility for quality control and inspection. With the aim of producing processed fabric that is of good quality and international standards complying with ISO 9001 parameters using eco-friendly products and processes SPL INDUSTRIES LTD has set up the most advanced processing plant in the country. The plant uses the latest technology all the machines represents the state of the art.

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The facilities at Processing Plant Bleaching, dying, printing, compacting and stone washing are the activities done at process house. The process does not use any dyes, chemicals / auxiliaries which contains banned amines (AZO group dyes) i.e., those which leaves traces of carcinogenic allergic / toxic elements in the final product. Plant Capacity The plant employee 350 people and has an installed capacity for producing and processing 7 tons of fabrics per day. It has in house facilities for hand embroidery and also it has computerized embroidery machines which are capable of producing 10000 pieces per day. Product Produced The main range is of garments are made from knitted fabric. SPL INDUSTRIES LTD recently ventured into ladies fashion garments in woven fabrics. This was mainly due to consistent insistence from our existing buyers. Now they are in verge of expanding our dimension in woven garments also. The types of products are: Kids Wear Woman fashion garments Mens wear Woolen garments

SPL INDUSTRIES LTD has their own knitted fabric processing plant where they can control the entire production process and able to match their own standards and requirement. Type of transportation used Road transport Airways Shipping

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Types of Manufacturing Equipments Type of machinery Ordinary + edge cutter Sprit bar 4 thread 6 thread Piping roll Snap attach machine Kanasai machine (elastic attaching) Button hole machine Button machine Zig zag Cutting machine Ironing machine Needle detector Fusing detector Fabric spreader machine Computer embroidery machine Laser cutting machine Pattern CAD machine Quantity in numbers 729 36 268 215 6 14 6 12 12 4 20 120 2 7 1 18 4 4

Raw materials used The basic raw materials used are Knitted fabrics, threads, buttons certain chemicals, colors Inventory Management System For inventory control organization is using ERP software called VISUAL GEMS it record all transaction of movement of material include inward & outward.

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Total Quality Management The term Quality in SPL INDUSTRIES LTD. means standard of the product what is expected of it by the consumers. In production department the employees are committed to their work in a prompt and effective sense that their efficiency and capability and commitment have helped the SPL INDUSTRIES LTD. to supply good quality and standard products to its clients and customers. So the department is focused in maintain and improving the quality of the garments, and they are following the Total Quality Management principles. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste minimized and quality issues in order to make sure that waste is minimized and quality maximized. The total quality management is part of the lean production methods used in this industry. Safety Program The safety of the programs in SPL INDUSTRIES LTD is felt importance and hence the following are the programs undertaken in the organization for the safety purpose: Recognized need to protect the environment and conserve natural resources for the well being of the surroundings. Training for proper handling and use of equipments and chemicals. On call ambulance Visiting doctors. Full time nurse Practice of yoga and meditation every day.

Challenges faced by the production manager due to recession Due to recession in Economy, organization is getting order in less rate so to achieve cost this challenging job for all production team to manufacture the product at low cost. Due to recession production team has to produce product in limited manpower with less wage rate

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Vendor Management Vendor rating is done on the basis of: Quality Supply On time Delivery of Raw materials

Periodicity of Rating: Quarterly Evaluation Parameters S.No 1. 2. 3. Description Quality Delivery Service Weight age 40 40 60

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Production Process

FABRIC CHECKING

CUTTING (Cutting, layering and ticketing)

CARTON PACKING

PANEL CHECKING SEWING

CHECKING

PRESSING

FINAL CHECKING

SPOT CLEANING

REPRESSING

FOLDING

PLY BAGGING

AQL INSPECTION

TRANSPORTATION

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SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

Strengths Low cost labour Flexibility in adopting in innovative technology. Safety Instruments. Planned lay out Easy material handling. Systematic processing activity.

Weakness Machinery and technological obsolescence. Improper utilization of resources. Wastages.

Opportunities Scope for product diversification. Flexibility in adopting Automated and highly sophisticated machineries Scope for plant expansion.

Threats Competitors may adopt better technology which the organization has not adopted. Workers with skill may switch to the other job due to less remuneration and long working hours.

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PART 4.2 FUNCTIONAL ANALYSIS

MARKETING DEPARTMENT SPL INDUSTRIES LTD. is following business to business marketing system. It quotes to its customers as: - If you have imagination we will give a form and make it viable for production; both commercial on cost and fashionable enough to sell and wear. Be it any kind of fabric or style, SPL is ONE STOPSHOP and marketing department works on the basis of above. Structure of Marketing Department

MARKETING MANAGER

SAMPLING TEAM

MERCHANDISING TEAM

SHIPPING TEAM

SAMPLING TEAM

MERCHANDISER

SHIPPING MANAGER

SAMPLING COORDINATOR

JUNOIR MERCHANDISER

SHIPPING COORDINATOR

DOCUMENTATION

DOCUMENTATION

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Marketing department is headed by Mr. Vivek Agarwal; he has vast experience in handling of that department. Functions of Marketing Department This company is an Export company so the marketing functions involved are: Pricing the garments: - Sales department is not in the organization because it Exports the garments to star Trading Exporters. Marketing research: - Marketing Research team collects the customer data by attending the International Fair of Garment buyer in different countries. They also attend the fashion shows to select the style and design of garments. Sampling: - Sampling team demonstrates the company product and on base of that gets the order. There is no promotional team in the company because the promotional activities are not needed to make the sales, as they export the garments. Transporting to the ports: - Distribution: distribution of the garments is done by using road transportation and shipping.

Product Design Department: - is involved in designing the products as per the clients order and requirement.

Price of the Product: - Price of product is depending on country wise buyer and type of Garment. Examples of few types of garments and their price are:-

COUNTRIES Denmark USA USA USA

BUYER UPIM GAP Tomy Hilfiger Triburge

GARMENT TYPE 100% cotton single jerseys Polar Fleece Rib Crue neck Single jerky

RATE PER PIECE 2.5 Euro 12.00 (USD) 3.00 (USD) 2.50 (USD)

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Objectives of Marketing Department 1. Focus on the customers and clients, 2. Monitor the competition. 3. Find and Direct Outside Vendors. 4. Involved in creating new ideas and modification in the existing ones. 5. Keeping in mind improvement in the quality of product. 6. Communicate Internally. 7. Set the strategy and executes the plan which is set. Customers and clients SPL INDUSTRIES LTD work with leading sportswear and active wear labels such as NFL, HARLEY DAVIDSON, MOUNTAIN Warehouse etc. At SPL impossible is always made possible made possible by default. They believe that customers base gives them immense pride and motivates them to set their standards at sky levels. Major Competitors Arvind Mills. Shih Exports. Bhilwara Groups. Asian Knitwears Export house. Delhi Baby Wears.

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Marketing Strategy of the Company Measures of B2B Adoption (a) Operation Efficiency Attributes - Potential Customer Identification -Identify New Clients & to tie the business

(b) Cost Saving

-Reduces Cycle time -Increase marketability -Reduces administration costs

(c) Inventory Control

- Reduce stock holding - Leads to just-in-time purchasing - Provide flexible manufacturing system

(d) Manufacturing Supply Chain

- Improves communication & coordination - Build up a global logistic network - Provide integrated information systems

(e) Customers focus

- Makes product available to global customers - Improves customer support - Helps to identify global market trends

(f) Supplier Relationship

-Help to identify alternative supply sources -Help to link its main suppliers through information systems

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SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

Strengths Market leaders in garments manufacturing Good International strategies. High product demand.

Weakness Slow in updating as and when global market changes. Slow in updating the International fast changes style.

Opportunities Expanding demanding Research and development Widening of exports Fast changing life style in the International level will give several numbers of opportunities.

Threats Competition from the global textile company. Competition from the home companies which are involved in textile exports. New entrants Duplicate branding.

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PART- 4.3 FUNCTIONAL ANALYSIS FINANCE DEPARTMENT

Finance department handles all the important issues related to finance, accounts, taxation etc. cost reduction and profit maximization is the main objective of this department. Financial management is concerned with the efficient & effective use of economic resources namely capital fund. Finance is that business activity which is concerned with the acquisition & conservation of capital funds in meeting the financial needs & all objectives of business enterprises. The finance function deals with the procurement of money at the time it is needed & its effective utilization in the enterprise. Finance department is headed by Mr. Pushpakh Bansal; he has vast experience in handling of that department. The main functions performed in finance department of SPL INDUSTRIES LTD are: Investment of funds from consolidated funds. Resources mobilization through loans, Institutional finance, small savings. Following rules, procedures concerning financial transactions. Preparation of budget, appropriation of accounts, re- appropriations. Controlling the expenditure. Administration of tax and export duties. It provides a payment system for the exchange of goods and services. It enables the pooling of funds. It provides mechanisms for managing uncertainty and controlling risk. It generates information that helps in coordinating decentralized decision making.

Different aspects of Finance include:Short Term Finance In order to fill the gap of requirement of immediate funds the firm uses the sources of short term finance from banks or the previous profits.

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Asset Accounting It is nothing but the total assets along with the depreciation along with them. Depreciation of assets is done through Diminishing Balance Method. Taxes The company is enjoying the TAX benefits of 10 years as SPL INDUSTRIES LTD is located at Industrial area. Credit Period Credit period allowed to the customers depends on the customers good will. Normally credit period allowed is 30 days, 45 days and 90 days. The payment period allowed for the suppliers is 60 days. Accounting software Now each and every organization is automated. Every organization is reaping the advantages of technology. Even the SPL Industries is using SAP Package for its effective accounting system. The finance department handles all its financial activities through software called Electronic Data Processing. The various sections in finance department are: Book and budget: - budget allocation and assets valuation Sales: - Invoice generation, Billing and collection Costing: - cost minimization, wages and salary administration Bill payable

Initial Investment: Initial Investment made in SPL at Faridabad Sector-37: - 38 crore for processing plant and SPL at Faridabad Sector-24: - 47 crore in stitching plant and building.

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Financing Resources of the Organization The financing resources of the organization are: Self investments. Bank: - Sourced from SIDBI

Import & Export (a) Imports: - They import the automated machineries costing lakhs of rupees from Singapore, Hong Kong, Taiwan. (b) Exports: - SPL INDUSTRIES LTD is garment manufacturing and export company, hence all the products produced are exported to its clients spread across the globe. Documents used in Export & Import: Indent: - An indent is an order sent to another country for the import of goods. Letter of Credit: - It contains promise or guarantee by the importers bank on the behalf of the importer to make payment to the exporter on presentation of the documents mentioned in the L/C. Bill of Lading: - It is a receipt containing details of goods shipped by the exporter. It is also a contract between exporter and the shipping company. Charter Party: - A charter party is a formal agreement in writing between the ship owner and the exporter under which the whole ship or a substantial part of it is hired to carry goods for a specified voyage or for a particular time period. Performa Invoice- It is a kind of quotation sent by the seller to the potential foreign buyer inviting him to place an order. Commercial Invoice: - It is the sellers bill of goods. It contains a detailed description of the goods supplied by the exporter. This document is required for obtaining clearance from various authorities. It serves as an evidence of sale and purchase. Consular Invoice: - It is a special type of invoice required in case of imports made by a few countries e.g., Philippines and South America. It enables the importer to obtain prompt clearance of goods when they arrive at the spot of destination.

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Customs Invoice- It is required in case of imports made by countries like U.S.A and Canada. It is to facilitate entry of goods into the importers country at concessional rates of duty. Certificate of Origin- It is a document issued as a proof of the genuine origin of the goods. With it, the importer can get preferential treatment in the matter of import duties. Bill of exchange: - It is an unconditional order in writing, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed date a specified sum of money to a specified person or to the bearer.

Insurance Policy: - It is a contract of insurance under which the insurers agrees to pay compensation in case of goods covered by the policy suffers any lost theft or damage. Export Declaration Forms: - In India details of all goods exported from India are too given in the prescribed export declaration forms. Export Certificate It is necessary when goods to be exported are subjected to quantity restrictions. Mates Receipt: - If these goods are delivered at the docks, a docks receipt is issued. If the goods are delivered to the captain of the ship, he will satisfy himself about the condition of packing. If he is satisfied he will issue a clean mates receipt otherwise a foul mates receipt is issued.

Certificate of Inspection: - It is issued by the export inspected agency. It certifies that the consignment has been inspected as required by the quality control and inspection act. Shipping Order: - It is issued by the shipping company to intimate the exporter about reservation of space on the board of the ship. Application for Certificate of Origin: - It is submitted to the authorized chamber of commerce that shows the origin of goods from a particular country. In the import procedure, bill of entry is important document which clears imported goods. Bill of entry may be for home consumption or for warehousing.

Net sale: Sales and profit are not revealed as it is a private company. However the approximate figure given by them are as follows: Total sales for 2009-10:- 120 crore Estimated sales for 2010-11:- 150 crore

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Working Capital The working capital is an combination of Current Asset & Current Liabilities. The required of necessary working capital has been worked out as under. Current Assets Inventories Cash and bank balance Debtors Advance to suppliers of Raw material Other current assets Total Current Liabilities and Provisions Sundry creditors Provision for taxation Total 4,37,000 2,82,000 7, 19,000 8, 33,000 7, 35,000 9, 78,000 4, 41,000 2, 82,000 32, 69,000

Working Capital Gap

25, 50,000

Financed By: Working capital funds from Bank Own Funds 5,30,000 10,95,000

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Organization Chart Finance Department

FINANCE MANAGER

EDP MANAGER

SENIOR ASSISTANT

JUNIOR OFFICER

EXECUTIVE ACCOUNTANT

ACCOUNTANTS ASSISTANTS

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SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

STRENGTHS Smooth working capital flow. Good fixed capital

WEAKNESS Leakage of confidential records. Improper allocation of budgets. Delay in receiving the bills.

OPPRTUNITIES Proper allocation and maintenance of records Governmental subsidies.

THREATS Money value variation at International level. Changes in Government polices as well as Export policies.

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PART -4.4 FUNCTIONAL ANALYSIS

HUMAN RESOURCE DEPARTMENT Human resources department is the important department which is very essential for the betterment of the organization. For this textile organization, a little bit difference in the scope, approach in HR concept is required, because here people think differently and expect differently, around 80% mangers spend time in handling of human resources. A very common problem always exist is conflict in intradepartment or in worker and management, so HRM play as a tool to resolve this problem efficiently. Human resource department is playing a very crucial role in the organization and it is helping out to carry out the all the functions in the organization effectively. In SPL INDUSTRIES LTD. department Heads will forecast man power requirement and send the report containing detailed information regarding the required number of candidates, qualification required. The report will be sent to the HR department. Issue is discussed with the management and decision is taken after a detailed discussion. If the requirement of human resources is confirmed then the HR department will take proper steps. Organizational chart of HUMAN RESOURCE DEPARTMENT HR MANAGER

TRAINING OFFICER

OFFICE BOY

HR EXECUTIVE

TRAINING INSTRUCTOR

HOUSE KEEPING STAFF

HR ASSISTANCE

SECURITY

GARDNER

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Human Resource department is headed by Mr. R N YADAV; he has vast experience in handling of this department. FUNCTIONS of HR The various function performed are: Recruitment Selection Orientation Induction Training Human Resource Department Promotion polices Compensation- reward, reward for best services, earned leave. Performance appraisal. Motivation Welfare Other disciplinary aspects.

Recruitment In SPL INDUSTRIES LTD after HR need is analyzed the HR department will give advertising in papers, local city channels, employee referrals, approaching consultancies. Selection The selection process followed in SPL INDUSTRIES LTD, Faridabad:(a) Receiving the applications and resumes. (b) Screening the applications (c) Personal direct interview. (d) Medical examination (e) Placement

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Orientation After selection Induction program will be conducted by the welfare officer to help the new employee to understand the working environment. Introduction with the work place, colleagues, giving information about the nature of job, leave benefits, salary, provident fund, insurance, welfare benefits, position in hierarchy etc are given. They are also briefed on their roles and responsibilities and their direct reports. Induction SPL INDUSTRIES LTD welcomes its new employees through a process of induction where the new recruits are briefed about the organization focus on social compliance and education, health & safety measures, rules and regulations, DOs and Donts etc., before taking up the work. Training Identification of the training needs at 3 levels is done: At individual level At department level At organization level

On the job training and in house training are followed to train the newly hired employees. Annually training section in the HR department prepares its own training calendar, monthly training schedule with the help of time officer. Human Resources Development Human resources development (HRD) is phenomenal for this Industry. HRD deals with up gradation of skills for labour and executives, planning and allocation of work, monitoring and assessment of performance. One of the most important tasks is upgrading the skills and knowledge of the human resources from to time. This up gradation is done through training and workshop/ seminars. HRD activities result in increased productivity, reduced cost and wastage, rightsizing of labour and staff at the organization, organizational stability to adapt to future changes. At the managerial level different developmental programs are scheduled and compulsorily undertaken.

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Compensation Polices Here a major issue is the wages and salary with time so HR takes care about that and makes structure in such way that it satisfies both worker (employees) and management. This function is taken care by wages and salary administration section of HR department. It is computerized, and calculated on the basis of attendance. In case of unpaid wages salary reconciliation is made, in case of resigns full and final settlement of his/ her account is made. Reward for Best Services Outstanding performances: - cash prize or other benefits implies to workmen to the grade up to juniors managers. Earned Leave Permanent worker who have actually worked in a particular leave year for 240 days would be entitled for 12 days earned leave. For the days worked in excess for 240 days concerned workmen would be entitled to 1 earned leave for every 20 days actually worked. Disablement Benefit If temporary disablement due to employment injury: then if the person were injured he/ she would be compensated with about 70% of daily average wage. If permanent disablement due to employment injury: then periodical payment is paid for the person who is injured / to the dependent of the injured person. Performance Appraisal Performance appraisal of the employees is doe quarterly, half yearly and annually 360 Degree performance appraisal of an employee is done in the organization in order to increase his / her work efficiency. Motivational Activities Motivating the employees to make them perform their better is one of the major functions in the performed here. Awarding the best performers of the week in each section of the departments is one of

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the best motivating factors. It helps in motivating the employees in operational level and managerial level. Empowerment and Welfare Program for employees The employees comforts are satisfied by:(a) The special medical facilities: Visiting doctors Full time nurse on premises On call ambulance Day care centre Need based loans Educational opportunities for their families Canteen facilities on contractual basis which provide subsidized, clean, hygienic food at reasonable cost First aid facilities- First aid facilities at cupboards well equipped with the prescribed medicine are provided in all departments. Each box is in charge of responsibility of the person who holds certificate in first aid treatment. Maternity benefit is given for maximum of 12 weeks in case of confinement and minimum 6 weeks. Crche to look after the children of personnel during their working hours(age group of 1-4 years) every childs birthday is celebrated by cutting cake and gift from the company. Fire exit, and emergency exists facilities.

(b) The different committees are formed for the well being of the employees. The committees are Canteen committee of 10 members- every month end meeting are held and feed back is collected from the personnel. Sexual harassment committee- this committee consists of 70% of women employees of the organization.

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Health and safety committee- this committee takes care of gadgets and educates the personnel about the safety measures to be followed in different situations. Workers committee this committee is formed and functions as per Industrial Disputes Act.

(c) Employee Welfare Officer arranges regular workshops, demos, lectures and seminars etc. to empower regarding the following:

Monthly awareness program for new employee. Safety measures thought to the employees Personnel hygiene Extinguish fire Womens day celebration.

(d) Other Disciplinary Functions : Visitor identity card for outsiders. Attendance register is strictly maintained. Identity card is must inside the premises. Child labour is strictly prohibited (age below 18) Commencement of work at his/her assigned end place. Starting and closing of interval period shall be notified from time to time, and signaled by the sound of siren. Employees after completion of work/shifts should leave the factory premises immediately within 15 minutes from the close of shift hours. If any employee is late to work whether at commencement of shifts/working hours or after lunch intervals for more than 5 minutes in the month during 2 successive or for more than 5 times in month shall be declared a habitually late and shall be liable for disciplinary action. Yoga and mental mediation is practiced before the tea break.

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(e) Entry and Exit All employees shall enter or leave factory premises by the gate specified for the purpose No employees shall enter the established factory premises except when on duty, without the permission of the security / any other officer authorized by the management in this behalf. No employee shall take with him /her inside the factory any outsider person/friend/relative without the permission of the officer authorized on behalf. Any employee who has granted off duty, or has resigned or is not working for any reason shall immediately leave the factory premises and shall not enter without the permission there after. No employee shall factory premises during duty hours except after obtaining written permission of the authorized officer and with a gate pass. If any employee desires to leave the factory premises during the hours of work notified for him/ her, he/ she shall obtain the prior consent of the absence of managers, from the in charge manager for any other officer authorized in this behalf. Retrenchment Attendance is taken and checked and irregular employees are kicked out. Those who are indiscipline are also removed from the job.

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Number of employees working in the organization are 3160 Data acquisition -48 Fabric and stores -52 Cutting section -372 Stitching- 1078 Maintainence-37 Finishing- 789 Quality-578 Accounts and Audit- 15 Industrial engineer 74 ERP (Enterprise resource planning) - 44 EDP (Electronic Data processing) - 36 Human resources and administration 37

Classification of Employees The classification of employees is done according to the following factors: Skilled labours Semi-skilled labours Unskilled labours : 1990 : 1000 : 170

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SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

Strengths Increase two- way communication, coordination and involvement. Good working condition. Educated and experienced staff. Attracts and retain right person at right job with right remuneration. Skillful, technical and experienced employees. Participative management. Friendly environment

Weakness Conflicts. Language barrier. Opportunities Empowering the employees. Scope for motivational activities.

Threats Job hopping

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PART- 4.5 EDP DEPARTMENT

EDP means Electronic Data Processing. Here data is collected and fed to computer. All transactions relating to receipt / supply of material, equipments and services are duly codified. All jobs connected to accounts namely, sales accounts, purchase accounts, debtors and creditors accounts, material accounting, cash and bank transactions general ledger and subsidiary ledgers, wages and salaries are dealt by this section. The input data from various divisions are received and processed and computerized accounts are submitted to Finance and Accounts department. This section is headed by an EDP manager duly assisted by one junior officer and one Senior Assistant To back support SAP R/3 and to facilitate team members with a latest and state of art IT hardware they are operating fully fledged EDP Dept. The dept. comprises with team of qualified IT professionals to assist team members wherever the IT support is needed.

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By and large each of the members is interconnected with the help of latest and fastest available hardware component for ease of internal communication needs. All three of the plants are interconnected with a fiber optical channel. While designing such communication channels redundancy is kept in mind to cope with any hardware failure instances.

Exclusive server room is provided with latest technological equipments like high end server products for fastest operational efficiency and redundancy. Server room is facilitated with Precision air conditioner and backed by most reliable UPSs. Each of the team members enjoys independent internet facility on their PCs. Proper backup mechanism ensures the safety of data and provisions are undertaken to secure the data from various viruses and other corruptions.

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SWOT ANALYSIS:S W O T STRENGTHS WEAKNESS OPPRTUNITIES THREATS

STRENGTHS Flexibility in adopting innovative technology. Quality certified company. Well established infrastructure. Planned layout of process house and stitching plant. Willingness to invest and re-invest. Multi skilled labour at low cost. Eco-friendly business. Adopting Japanese principle such as six sigma and kaizen to improve the quality of product.

WEAKNESS Difficulty in adopting product pricing strategies. Difficulty in understanding western customers.

OPPORTUNITIES Scope for expansion. Expansion of Exports across the globe. Increasing demand. Explored options in SEZ Industrial area. Tax exemptions and Governmental subsidies. Promotion of New Brands effectively with introducing new varieties in textile.

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THREAT Cut throat competition from rival companies. Ever changing demand New entrants Language barrier and misunderstandings. Change of Government Policies in Export and Import. Increasing cost of human capital.

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FINDINGS

The company has well established infrastructure and healthy environment which attracts the Human resources willingness to work over there. The company is enjoying the Governmental subsidies and Concessions given in SEZ Industrial area. Tax exemption up to five years is one of the advantages which the company is enjoying. Low cost labours with multi skills in various backgrounds are available easily. Well established transportation facilities. SPL is one of the biggest companies manufacturing and exporting the quality knitted garments. It has a separate HRD section for maintaining its manpower resources. Intensive measures have been undertaken for pollution control and environment. The culture of SPL is informal, where every person can directly meet to high authority without any systematic way which I considered was good because it encourages employees at work. Organization structure of SPL Industries is well formatted in which each and every department plays important role. All the employees and laborers work very hard towards achieving the goal. Even the higher authorities work hard without wasting time always they take steps towards achieving the organizational goal.

Administrative head role in an organization very important to make good working environment the practice which I observed was that he was very hard working person and he does his work very efficiently.

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CONCLUSION
From the above SWOT analysis it is clear that the strengths as well as opportunities of company are more. It is due to the efforts made by all the levels-top level, managerial level, and operational level of the organization. The initial investments were 25 crore and every year they increased the investments this willingness of the entrepreneurs shows the plus point of the organization. The ever expanding business every year is the indicator of success and its bright future; it shows the companys commitment to future growth and improvement. The companys opportunities need to be grabbed and for improvement and further success. The company is not only has profit Human resources and society. Starting from the modest turnover, in 2007 SPL INDUSTRIES LTD. has a turnover of $40 million with garments export of over ten million units annual. SPL INDUSTRIES LTD is currently doing turnover of six million garments every year and increasing constantly (Turnover-200 Crores). In expansion mode to double turnover by 2009-10 the board of directors has set up the plant in Faridabad sector-37.

SUGGESTIONS
The company should grab various opportunities for future perspective and growth. Proper allocation of funds in various activities. Maximum utilization of resources. They should undertake some steps to minimize the wastages. They must undertake some steps to remove employee absenteeism. The R&D department should concentrate more efficiently in developing new types of products according to the fashion of 21st century. SPL Industries are more focusing its exporting to International markets, where it should also focus in domestic markets also.

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LEARNING EXPERIENCES

1. The experience in the organization during my internship project was great. In the organization I learn how the activities take place in real world in the business organization. It helped me to relate and understand the practically with theoretical concept which I have learnt in class room. I saw over there how issues are discussed and decisions are take place. In all the functional departments the employees with multi skills and their commitment and job effectiveness are utilized. Each employee has the freedom to give his opinion for the betterment of the organization.

2. Getting permission in the any company to undertake internship even for four weeks it was very difficult. In some companies the gate keeper sent us back not letting me to speak with either HR manager to Training Officer. The reasons they gave are many. Then I tried in SPL INDUSTRIES LTD & finally I got permission to do my internship project in the various department of the SPL INDUSTRIES LTD. The day I got permission HR manager Mr. R.N Yadav introduced me with HR Executive, Mr. Nitin Gupta who was my guide in the organization. He explained me about the timings and other rules to follow during my internship.

3.

I was able to get maximum information from each section of the company. It happened due to the good coordination and fantastic guidance of my Guide Mr. Nitin Gupta. He helped me in updating my knowledge & skill, he also told me in which area of skills I should work on such as: Good communication skills, Computer Knowledge of hardware & software Extra course like- SAP Modules, NCFM Certification, AMFI certificate for mutual fund license. Read daily newspaper in order to remain with current knowledge as global which is required tool of modern life.

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4. Things I have learnt the various managerial skills, time management, coordination, confidence, decision making and execution, and communication skills. I learnt from the employees the cooperation, commitment and dedication in work environment. 5. I would like to work in the same organization with the same person who has coordinated in my training.

From all overall experience I realized that still what I have to work on more on required areas and the life outside the class room is difficult. The duties, responsibilities, commitments we need to understand, follow and we also required listen to commands from the higher authority under which we work.

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BIBLIOGRAPHY

Books: Company Boucher & records of SPL Industries LTD. K.Aswathapa Human Resource and Personnel Management. K.Aswathapa Production & Operations Management J.C. Gandhi Marketing Management Pradip Kumar Sinha Financial Management

Web site: www.spllimited.com www.rbi.org.in www.ibef.org www.txcindia.com www.fibre2fashion.com www.allbankingsolutions.com www.forex-rates.biz

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SPL INDUSTRIES LTD

A WORLD CLASS RESOURSE FOR FABRIC KNITTING, PROCESSING, FINISHING & GARMENT MANUFACTURING.

INDIA OFFICE: Plot No. 21 Sector-6, Faridabad Haryana-121006 Phone: 91-129-2240411 Fax: 91-129-5069978, 2243340 WEB: www.spllimited.com

US OFFICE:

4011, W.PLANO PARKAWAY, SUITE# 107 PLANO, TX 75093 PHONE- 972- 964-0068.

REGD. OFFICE: 5/66, K.C House, 3rd Floor, Padam Singh Road, Karol Bagh, New Delhi - 110005 Phone : 91- 11- 25789729, 25716150

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ANNEXURE
QUESTIONNAIRE

NAME:......................... DESIGNATION:.......................... DIVISION:......................... DEPARTMENT:.........................

NOTE: Please tick below the Ans of the following questions. 1) Which type of Training you have attended? Skill development Management development IT Spiritual Project management

2) Training Program helps you in Personal development Job Both Nothing

3) Who identifies Training needs? Your reporting officer Your self to reporting officer Only self appraisal system Self appraisal & management None of the above

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4) How was the Training instruction in terms of resources & environment? Poor Fair Good Very good Excellent

5) Applicability of Training and Development programme is Poor Fair Good Very good Excellent

6) Training program increases your Potential only Potential ability Skill only Potential and ability Useless

7) After Training, what has been the improvement in your interpersonal relation with your peers subordinates & Management? Null Least Little To some extent To large extent

8) To what extent Training and Development helps you in i) improving in Productivity output Null Least Little To some extent

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To large extent

ii)

reducing Absenteeism rate Null Least Little To some extent To large extent

iii)

providing Any ground for innovations and creativity Null Least Little To some extent To large extent

iv)

improving Communication skills Null Least Little To some extent To large extent

v)

in Decision making Null Least Little To some extent To large extent

vi)

in Making team spirit Null Least Little

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 To some extent To large extent 9) Are you provided with regular, constructive feedback concerning your performance during training of newly acquired abilities? No Least Little To some extent To large extent

10) Is any system to check your performance in the implementation of the newly acquired abilities after completing training programme? No Least Little To some extent To large extent

11) Does the T&D programme help you to see the benefits you may achieve by completing training? No Least Little To some extent To large extent

12) Did your training helps you in solving the problems in your jobs? No Least Little To some extent To large extent

13) Is the Training programme oriented to the specific needs of trainees? No

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Least Little To some extent To large extent/fully

14) How much you are satisfied with Training and Development programme you have attended? Satisfied Very satisfied Neutral Dissatisfied Very dissatisfied

15) What motivates you to complete your Training programme? Increased career prospects Increased job satisfaction Chance to meet other What to get back in to learning Others

16) Are you satisfied the course content of Training? No Least Little To some extent To large extent/fully

17) Did you know training objective before starting the Training programme? No Least Little To some extent To large extent/fully

18) How was your learning experience? i) From the point of view of your work situation

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Relevant Very relevant Relevant to some extent Least relevant Irrelevant

From the point of view of personnel growth Poor Fair Good Very good Excellent

19) Time allotted to the Training & Development was Too little Little Appropriate Much Very much

20) Drawbacks of Training & Development programme (if any)-

21) Any suggestions to improve Training process and make it more effective -

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