Introduction

Spinning is a major part of the textile industry. It is part of the textile manufacturing
process where three types of fibre are converted into yarn, then fabrics, which undergo
finishing processes such as bleaching to become textiles. The textiles are then fabricated
into clothes or other products. There are three industrial processes available to spin
yarn, and a handicraft community who use hand spinning techniques. Spinning is the
twisting together of drawn out strands of fibres to form yarn, though it is colloquially
used to describe the process of drawing out, inserting the twist, and winding onto
bobbins.
Yarn is a long continuous length of interlocked fibres, suitable for use in the production
of textiles, sewing, crocheting, knitting, weaving, embroidery, and rope making. Thread
is a type of yarn intended for sewing by hand or machine. Modern manufactured sewing
threads may be finished with wax or other lubricants to withstand the stresses involved
in sewing.

Embroidery threads are yarns specifically designed for hand or machine
embroidery.

Industry Profile
a. Background of the Industry
India Spinning Industry has gone from strength to strength since a very long time now
as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest
extent in India but it has also become one of the most profitable textiles in the export
industry.
Spinning in India can be classified into 2 categories: medium and long staple. But there
was a shortfall in the 'extra-long' category that continued for many years. There was a
massive downfall in the cotton spinning in India during 2004-2005. The production rate
of cotton was about 4 lakh bales that was less by 5 lakh bales from the required rate
which was 9 lakh bales.

b. Contribution to economy
Indian Textile Industry contributes about 11 percent to industrial production, 14 per
cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's
total export earnings. It provides direct employment to over 35 million people, the
second largest provider of employment after agriculture. Besides, another 54.85 million
people are engaged in its allied activities.
The fundamental strength of this industry flows from its strong production base of wide
range of fibres or yarns from natural fibres like cotton, jute, silk and wool to synthetic or
man-made fibres like polyester, viscose, nylon and acrylic. We can just track the strong
multi-fibre strong base by highlighting the following important positions reckon by this
industry across globe are :
Cotton Second largest cotton and cellulosic fibres producing country in the
world.
Silk India is the second largest producer of silk and contributes about 18% to
the total world raw silk production.
Wool India has 3rd largest sheep population in the world, having 6.15 crores
sheep, producing 45 million kg of raw wool, and accounting for 3.1% of total
world wool production. India ranks 6th amongst clean wool producer countries
and 9th amongst greasy wool producers.
Man-Made Fibres- the fourth largest in synthetic fibres/yarns globally.
Jute India is the largest producer and second largest exporter of the jute goods.

c. Market size
The Indian textiles industry is set for strong growth, buoyed by strong domestic
consumption as well as export demand.
The most significant change in the Indian textiles 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
recorded an increase of 10 per cent and filament yarn production grew by 6 per
cent in the month of February 2014. MMF production increased by about 4 per
cent during the period April 2013February 2014.
Cotton yarn production increased by about 10 per cent during February 2014
and by about 10 per cent during April 2013February 2014. Blended and 100
per cent non-cotton yarn production increased by 6 per cent during February
2014 and by 8 per cent during the period April 2013February 2014.
Cloth production by mill sector registered a growth of 9 per cent in the month of
February 2014 and of 6 per cent during April 2013February 2014.
Cloth production by power loom and hosiery increased by 2 per cent and 9 per
cent, respectively, during February 2014. The total cloth production grew by 4
per cent during February 2014 and by 3 per cent during the period April 2013
February 2014.
Textiles exports stood at US$ 28.53 billion during April 2013January 2014 as
compared to US$ 24.90 billion during the corresponding period of the previous
year, registering a growth of 14.58 per cent. Garment exports from India is
expected to touch US$ 60 billion over the next three years, with the help of
government support, said Dr A Sakthivel, Chairman, Apparel Export Promotion
Council (AEPC).

d. Major players
Some of the major players in this industry are
Bhilwara Spinners Ltd. (LNG Group)
Nitin Spinners Ltd.
Sangam (India) Ltd. (Sangam Group of Companies.
Ajay Group of Industries
Laxmi mills pvt ltd


e. Government policies & regulations
1. National Textiles Policy - 2000
2. Technology Upgradation Fund Scheme (TUFS)
3. Textiles Workers' Rehabiliation Fund Scheme (TWRFS)-Guidelines &
Funds Utilization
4. Integrated Scheme for Powerloom Sector Development
5. Group Insurance Scheme (GIS) for Powerloom Sector Workers
6. Scheme for Integrated Textiles Park (SITP)
7. Hank Yarn Obligation (YYO)

The Government of India has promoted a number of export promotion policies for the
textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under
automatic route.
Some of initiatives taken by the government to further promote the industry are as
under:
The government has taken a lot of initiatives for the welfare and development of
the weavers and the handloom sector. Under revival, reform and restructuring
(RRR) package, financial assistance to the tune of Rs 1,019 crore (US$ 169.66
million) has been approved and the Indian government has released Rs 741
crore (US$ 123.42 million).
Encouraged by turnaround in textiles exports, the Government of India plans to
set up a US$ 60 billion target for the current financial year, a jump of over 30 per
cent from the previous financial year.
The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated
Processing Development Scheme (IPDS) with a corpus of Rs 500 crore (US$
83.28 million) to make textiles processing units more environment-friendly and
globally competitive.
The Government of India plans to set up a Rs 100 crore (US$ 16.62 million)
venture capital fund to provide equity support to start-ups in the textiles sector,
in order to encourage innovative ideas in this export intensive sector.
The Government of India has allotted Rs 700 crore (US$ 116.60 million) in the
12th Five Year Plan for the development of technical textiles. In 201213, the
technical textiles industry reached Rs 7.48 trillion (US$ 124.60 billion) at an
annual growth rate of 3.5 per cent.
f. Recent trends in the industry
The Spinning Industry in India is on set to hit the global market with other fabrics as
well like the cotton textiles with its enthusiasm and consistency in work. It has already
reached a phenomenal status in India by beating the obstacles that caused a downfall
since past few years and is now on its way to cover a wider area in the spinning sector.
Indias yarn exports to be 1/3rd of yarn production in FY14 driven by import by China
resulting in improved demand which coupled with weaker Rupee supports realization
and profits:
1. Indias dependence on China has increased in recent past as China accounted
for ~33% of Indian cotton yarn exports as against ~4% in FY08. With
improved export demand Indian spinners have witnessed improved capacity
utilization levels, which stood at record high levels of ~90% in FY13.
2. Increased export demand, stability in international cotton and yarn prices and
depreciation of the Indian Rupee led to improved rupee realizations for Indian
spinners, which averaged ~Rs 204/kg in FY13 and increased to ~Rs 220/kg by
September 2013 due to further depreciation in Rupee.

Domestic cotton availability and prices to remain firm owing to high cotton and cotton
yarn exports; situations remains highly vulnerable to Chinese policy changes:
Domestic cotton prices remained stable till February 2013 at ~99/kg , well below
minimum support prices of ~Rs 110/kgs in some states (especially Andhra Pradesh),
which led to support price operations including purchase of ~2.3 million bales in CY13
by Indian government agencies. However, increased domestic cotton demand to meet
export demand of yarn and continued cotton exports led to gradual increase in cotton
prices to ~Rs 140/kg by September 2013 and owing to free exports allowed in CY13.

g. Challenges for the industry
The Indian textiles industry is set for strong growth, buoyed by both strong
domestic consumption as well as export demand. The industry is expected to
reach US$ 220 billion by 2020, according to estimates by Alok Industries Ltd.
The Central Silk Board sets targets for raw silk production and encourages
farmers and private players to grow silk. To achieve these targets, alliances with
the private sector, especially major agro-based industries in pre-cocoon and
post-cocoon segments have been encouraged.
For the textiles industry, the proposed hike in FDI limit in multi-brand retail will
bring in more players, thereby providing more options to consumers. It will also
bring in greater investments along the entire value chain from agricultural
production to final manufactured goods.
With consumerism and disposable income on the rise, the retail sector has
experienced a rapid growth in the past decade with several international players
such as Marks & Spencer, Guess and Next having entered the Indian market. The
organised apparel segment is expected to grow at a compound annual growth
rate (CAGR) of more than 13 per cent over a 10-year period.






Company Profile
a. History & Background
The company was founded by Mr.C.K.Sambandam in 1990 with some financial
assistance from Tamilnadu mercantile bank and since then the company has gone
through some serious changes in modernization and quality control. As the availability
of the cotton has vanished to a negligible existence in TamilNadu it gets its raw material
from the northern states of Gujarat, Andhra Pradesh, Madhya Pradesh, and Karnataka.
And now the company has earned a name for its own in the spinning industry in
Tamilnadu.
The company is headed by the Executive director Mr. K.S.Prakash along with the board
of directors Mr.S.Boopalan, S.Rajendran, R.Laxmi narayanan. The auditor of the
company is Mr. CA. L. Narayanan.

b. Vision & Mission
The vision statement of the company states that Sri malini Spinning Mills strives
to achieve excellence in all sectors of the textile industry, from fibre to finished
product, constantly striving to be at the forefront of our industry and to generate
highest possible value for all stakeholders.
The mission statement of the company states that it thrives to manufacture
international quality yarn and fabric, with the highest level of competitiveness on
all parameters and to effectively harness and integrate all available technology
across various elements of the textile chain and to cater to product innovation by
mastering value added areas like processing and finishing.
c. Products
Their product is Polyester cotton yarn for clothing and the loosely knitted cotton yarn
for inner wears.

d. Market
The local market they serving are the garment companies from Salem, Namakkal,
Tiruppur, Erode and Chennai. They are also serving the companies from outside the
state such as Andhra Pradesh, Karnataka, Madhya Pradesh.

e. Financial performance
Amount in lacs of Rupees
Particulars

2012-2013 2011-2012
Sales including other income

106.83 246.65
Profit/Loss before interest and Depreciation

(21.01) (13.55)
Financial Cost

98.74 244.32
Prior Period Adjustments

5.27
Profit / Loss before Taxation

(15.74) (13.55)
Add : Loss brought forward from the Previous Year

1300.80 (1287.25)
Net Loss carried to Balance Sheet

(1316.54) (1300.80)

f. Challenges for the company
With increase in cotton prices in FY14, the working capital requirements of the sector
are expected to increase and given the susceptibility of cotton prices to policy changes,
prudential working capital management and inventory stocking will be the key
challenge as any decision on cotton policy post March 2014 may lead to a decline in
cotton and yarn prices and hence can result in inventory losses for the mills.
They are also facing employee turnover citing health reasons and also competition from
other spinning mills are major threat for them.

Organization structure


















Managing Director
roomFinance
Manager
Executive Director
HR Manager Spinning Master
Asst. Spinning
Master
Securities &
Canteen Masters
Cashier
Fitters &
Workers
Marketing
Manager
Overview of Functions
HR Practices
a. Role of HR Manager
The HR manager in the organisation takes care of all the activities involving
human resources inside the organisation and their welfare and compensation.
Human Resource Planning
Interfacing with Management and Heads of Department for implementing HR
policies & procedures in line with core organisational objectives to increase
productivity with consistent quality.
Formulation of HR Strategy as per the overall Business Strategy. HR Policy
formulation and Communication Strategy for achieving the targets such as
productivity with quality in the organisation.

b. Recruitment and selection
Recruitment, Manpower organizing
Maintaining Resume data bank , Resume screening,
Generating Call letters
Conducting Tests and Evaluation
Handling Interviews
Preparing fitments proposals and appointment orders
Coordinating induction programme for new recruits.

c. Training & Development
Identifying training needs across all levels through assessment of skills required
for particular positions/jobs after analysis of the existing level of competencies.
Implementing in-house training programmes with experts and development
initiatives to achieve results; updating database with names of attendees, dates,
faculty, cost and feedback.
Conducting training feedback analysis; updating training undergone in the skill
of the members.

d. Performance Appraisal
Managing appraisal process across levels & establishing framework for
substantiating Performance Appraisal System periodically linked to Reward
Management.
e. Career planning and development
Employees who are capable of doing more than what they are assigned to do,
then they are given proper training in the upper level to carry on top
management works.
The promotions are given for them for the moral boost of the employees.


f. Industrial Relations / Statutory Provisions

Taking care of Attendance and statutory works.
Maintaining Attendance records. Payments and personal files of all employees.
Maintaining Statutory Registers.
Liaison with Govt. authorities like Labour department, Inspector of Factories, ESI
and EPF.

g. Compensation plan
All the direct and indirect compensations are planned according to the job value
and their performance.
Handling Time office functions.
Payroll processing work.
Preparation of Salary and Wage statements.
Working out Increment as well as Bonus and Profit share

h. Financial incentives
They gave all forms of monetary rewards like bonus, cash awards to their
employees.
i. Non financial incentives

Taking care of Employee welfare schemes viz. Mediclaim, Medical & Educational
reimbursement.
Maintaining hygiene condition at shop floor,etc.
Co - ordinating with canteen, tea supplies etc.,

j. Discipline Administration
The supervisor takes care of enquiry issues, day to day grievances of the
employees.
Coordinating development or up gradation of Time office and Payroll systems.
Strict norms are followed by the employees inside the organisation for the better
performance.
Serious issues are directly handled by the HR manager and decisions like
suspension and dismissal of the employees

Financial management
a. Sources of capital
Loan from TamilNadu Mercantile bank.
Share capital.
Owners fund.
b. Role of Financial Manager
Raising Funds for the Company.
Allocation of funds to various departments.
Maintain the financial reports.
Profit planning.
Budget preparation.
Perform the payments and receipts activities.
Monitor and control the unwanted expenses.
c. Cost of capital
Share capital = Rs.50,00,000.00
Bank loans = Rs.91,26,180.00
Owners fund = Rs.28,39,200.00
Total = Rs.1,69,65,380.00
d. Allocations of funds to various departments
The financial manager ensures sufficient amount of funds for all the departments inside
the organisation and allocates the fund according to their need efficiently. So in every
other department every financial decision is made with the involvement of the financial
manager.
As it is a manufacturing company the production department needs more money
than any other department for the purchase of raw materials, production cost
and inventory cost.
Marketing department for packaging and distribution of finished goods.
HR department for employee recruitment, training and compensation.
e. Credit policy
Their cotton suppliers allowed 90 days credit period to the organization.
The organization allowed 30 days credit period to their customers.

f. Payment & Collection procedure
The company paid to their suppliers via bank transactions.
The company collected their receipts via agents and bank transactions.

g. Budgeting method
The organization follows TopDown method for budgeting. In this Top-
Down budgeting method, top level management of the organization sets the
budgeting guidelines and gives it to the lower level management. Based on the
guidelines of the top level management, lower level management prepares the
budget for the year.
h. Control process
The finance manager checked the credit process regularly and cut down
the over credit and unwanted expenses.

System management
The main function of the system management is to
Analyze
Software handling
Updating new technologies
Ensure Security
Database management
a. IT system platform
All of the systems are installed with Windows 7 operating system. All the software they
use run on windows platform.
b. Software used
They keep up to date with all the transactions and other details in their system. Various
software used are
Windows Excel
Tally
Oracle database server
Textile software developed by Aerosoft Technologies
Marketing Management
a. Marketing manager`s roles
Marketing manager plays an important role in the process of dealings with the
buyer. He maintains the communication with the buyer and acts as the
middleman between the buyer and the seller.
Marketing strategy is a very important factors to sale the products to the buyer.
In case of garments marketing dealing with the buyer is a very important factor.
There are some fixed buyers for the company. The buyers give their orders
continuously all over the year. The marketing managers on both the side
understanding the rate and the order quantity are fixed.

b. Duties and Responsibilities of the marketing manager:
Dealing with the buyer and convince the buyer is the main duty of the marketing
manager and he also has some other duties:
To prepare the cost sheet by dealing with the buyer.
To take different steps by discussing with the high officials & merchandisers.
To maintain a regular and good relationship between commercial officer and &
merchandiser.
To maintain a regular communication with the buyers and buying houses.
Communicating with the new buyers.
Display the better criteria of the products.

c. Marketing managers role with other functional heads

In the organisation, the marketing manager negotiates with the supplier of the
raw materials and buyer of their products. Hence the funds are allocated
according to their needs for those processes by financial manager.
The marketing manager sends the sales report and demand in the future to the
operations manager so that the operations manager could align their production
accordingly.
The marketing manager estimates the demand, the productivity and the
workforce needed to achieve it and hence the HR manager is intimated for
further actions of recruitment and firing of employees.
As this is a world of technology a marketing manager heavily depends on the
systems managers. But this is a medium scale company the marketing manager
manages all the system related works by himself and he contacts the dealers and
suppliers through internet.

d. Products and product policies
Sri Malini spinning mills produces poly cotton yarn. The mill follows the pull
strategy as it produces the yarn according the need of the customers.
Various thickness levels are maintained in the yarn size.

e. Pricing Policies

The price of the yarn varies day by day as it depends on the priceof the cotton.
As the cotton are transported from northern states such as Andhra Pradesh,
Madhya Pradesh, Gujarat, and Karnataka to TamilNadu the transportation cost
adds up to the cost of production of the yarn. Any deviation in fuel costs ends up
in the price of the yarn.
Yarn prices are controlled and regulated by the yarn association committee of
the state.

f. Distribution Structure
The major customers for this spinning mill are some garments company and they get
their yarn periodically according to the demand. But most of the time the spinning mill
sells its yarn through the agents who distributes them to the customers.
The distribution happens through the goods vehicles. Sometimes the spinning mill
stocks the yarn for the price advantage.









g. Advertising Policies and sales promotion activities
As this spinning mill does have a specific set of customers who always depends on them
for their yarn needs it manufactures just for them and it does not indulge in any sales
promotion activities for attracting new customers.
h. Marketing research Activities
Marketing researches are often carried out by the marketing manager for
Estimating sales
Cost of transportation
Customer satisfaction
Employee satisfaction
Cost estimation
Market demand

i. Promotions and CSR activities
Sri Malini spinning mill funds 3 of the self help groups run by the women in the
rural areas.
They also help some poor children for their studies in Panamarathupatty Govt
Higher secondary school.


Spinning Mill
Customers
Agent
Operations Management
a. Roles and responsibilities of the production manager
Deriving the Master production schedule
Supply chain management
Estimating the stock of the raw material and their future need
Making sure the product is produced according to the plan
Maintaining a record for all the processes carried out in production section
b. Production process
















Packaging
Winding
Spinning
Roving
Drafting
Carding
Blow
Raw material
c. Receiving and processing orders
The marketing manager sends the sales report to the operations manager, so the
amount of product to be produced is estimated and then produced.
Sometimes the order level depends on the customer needs and hence the yarn is
produced according to that.

d. Types of production system
Mass production system is used for producing the yarn.


e. Production planning and control procedures
The demand from the customer is taken as a base to evaluate the amount of
production.
Based on the orders received the operations manager plans the days production.
The production capacity of the spinning mills is taken in to account in the
planning.

f. Inventory Management

The spinning mill keeps the inventory of

Raw materials
Semi processed goods
Finished goods

g. Record Keeping
The Asst. spinning master (ASM) keeping the records of the followings
Availability of raw material.
Records for each process of production.
Availability of WIP and finished goods.
Number of workers in various production process.
Quality of the cotton and yarn.
h. Lean manufacturing
The company used the blowing machines to absorb the wastes from the machines. The
absorbed waste cottons are sold for producing the pillows and beds. The waste yarns
are sold for producing the screen cloths, pillow covers and bed covers.

i. Quality control techniques
They used the fibre testing machine to test the following qualities of the cotton
Strength of the fibre
Length of the fibre.
Finesse of the fibre.
Thickness of the fibre.
Colour of the fibre.
They used the following machines to check the quality of the yarns
Wrapping machines for checking the count of the yarn.
Single yarn strength machine for checking the strength of the yarn.
Twist testing machine for checking the number of twists in a cone.

j. Work measurement
Work measurement is the application of techniques designed to establish the
time for a qualified worker to carry out a task at a defined rate of working. Thus it
determines how long it should take to carry out the work.They measured the work
based on speed of the machine. As per yarn association committee norms a spinning
machine takes 8 hours to produce 105 gms of yarn per spindle.
RESEARCH METHODOLGY
Research is a procedure of logical and systematic application of the fundamentals of
science to the general and overall questions of a study and scientific technique, which
provide precise tools, specific procedure and technical rather than philosophical means
for getting and ordering the data prior to their logical analysis and manipulation.
Different type of research designs is available depending upon the nature of research
project, availability of able manpower and circumstances.

a. SELECTION OF THE TOPIC
The study would help to find out the consumer satisfaction and their buying
behaviour towards the yarn produced in the spinning mill and this would help the
company know what are the consumer preference and what strategies should they
adapt to grab and retain the market.

b. OBJECTIVES OF THE STUDY
1. To study the Customer preference in quality of the yarn.
2. To evaluate the cons and pros in the organization with the customer.
3. To know the consumers expectation and to adapt a strategy to satisfy their
needs.

c. SAMPLING PROCEDURE AND DESIGN
The research design is the blueprint for the fulfilment of objectives and answering
questions. It is a framework, which determines the course of action towards the
collection and analysis of required data.
Sample design is definite plan determine before any data is actually obtaining for a
sample from a given population

Sampling Technique: Convenience Sampling
Sample Size: 10 Respondents

d. METHODS OF DATA COLLECTION
The data can be collected by two ways:-
Primary source
Secondary source
PRIMARY DATA:
The data collected for the first time by the researcher himself is called primary data.
There are several methods of collecting primary data like questionnaire, Personal
interviews etc.
The method adopted for the study is:
Questionnaire
SECONDARY DATA:
The data already available is called secondary data. This data may be present in the
form of journals, publishings etc. under this report the information are collected from
different sources like:
Internet
Newspapers

e. ANALYSIS AND INTERPRETATION OF DATA
Data presented in raw state appear unrecognized and complex. Statistical processors
are used this complex data into some significant understandable form. I analyzed the
data mathematically and then presented the results with the help of bar charts using
percentage analysis.
Tools Used: Percentage Analysis

1. How long have you been doing business with this company?

How long have you been doing business with this company?
Frequency Percent Valid Percent Cumulative
Percent
Valid
1 year 1 10.0 10.0 10.0
2-3 years 3 30.0 30.0 40.0
> 5 years 5 50.0 50.0 90.0
> 10 years 1 10.0 10.0 100.0
Total 10 100.0 100.0




Interpretation:
About 50% of the customers are doing business with this company for more than 5 years,
30% of the customers are doing business for 2-3 years and about 10% of the customers are
doing business with this company for more than 10 years and 10% of remaining customers
are doing business with them for 1 year.

2. How often do you order the yarn?

How often do you order the yarn?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Once a Month 3 30.0 30.0 30.0
Weekly 2 20.0 20.0 50.0
According to the Need 5 50.0 50.0 100.0
Total 10 100.0 100.0

Interpretation:
About 50% of the customers order their yarn according the need and 30% of the customers
order once a month approximately and 20 % of them order weekly once.

3. Are you satisfied with price range offered by the company for their
products?


Are you satisfied with price range offered by the company for their products?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 7 70.0 70.0 70.0
Just okay with it 3 30.0 30.0 100.0
Total 10 100.0 100.0


Interpretation:
About 70% of the customers are satisfied with the price range offered by the company for
their yarn and the remaining 30% customers are just okay with it.

4. Are you satisfied with the quality of the yarn?


Are you satisfied with the quality of the yarn?
Frequency Percent Valid Percent Cumulative
Percent
Valid Yes 10 100.0 100.0 100.0



Interpretation:
All of the customers are satisfied with the quality of the yarn produced here.





5. Are you delivered the right product exactly like your specification?


Are you delivered the right product exactly like your specification?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 9 90.0 90.0 90.0
No 1 10.0 10.0 100.0
Total 10 100.0 100.0

Interpretation:
About 90% of the customers satisfied the right kind of product delivered to them and the
remaining 10% of the customers says that sometimes the products are not according to their
specifications.



6. Your mode of transportation of goods?

Your mode of transportation of goods?
Frequency Percent Valid Percent Cumulative
Percent
Valid
By Truck 5 50.0 50.0 50.0
By mini truck 3 30.0 30.0 80.0
By Tata Ace 2 20.0 20.0 100.0
Total 10 100.0 100.0




Interpretation:
About half of the customers use truck to transport their goods and about 30% of the
customers us mini truck and remaining 20% of the customers use Tata Ace.

7. Are you satisfied with the delivery time?


Are you satisfied with the delivery time?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 9 90.0 90.0 90.0
No 1 10.0 10.0 100.0
Total 10 100.0 100.0



Interpretation:
About 90% of the customers are satisfied with the delivery time of the materials and
remaining 10% of the customers are not.

8. Have you ever had any issues related to transportation?


Have you ever had any issues related to transportation?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 5 50.0 50.0 50.0
No 5 50.0 50.0 100.0
Total 10 100.0 100.0



Interpretation:
About half of the customers have had issues related to the transportation and the remaining
were mostly due to the fuel price rise and strikes due to the fuel prices and timing issues due
to bad road condition.

9. Do you think the price of the yarn fluctuates very often?

Do you think the price of the yarn fluctuates very often?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 9 90.0 90.0 90.0
No 1 10.0 10.0 100.0
Total 10 100.0 100.0




Interpretation:
About 90% of the customers think that the price of the yarn fluctuates very often and the
remaining are not.


10. What do you think the reason for the price fluctuation?


What do you think the reason for the price fluctuation?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Rise of the cotton prices 1 10.0 11.1 11.1
Rise of fuel prices 7 70.0 77.8 88.9
Inflation 1 10.0 11.1 100.0
Total 9 90.0 100.0
Missing System 1 10.0
Total 10 100.0





Interpretation:
Almost 70% of the customers feel that rise of fuel prices associates with the prise of yarn and
10% of the customers feel it is due to the rise of cotton prices and the remaining 10% of the
customers feels it is due to inflation.

Findings & Suggestions
1. According to the study most of the customers are doing business with the
company for more than 5 years and they get their yarn from the spinning mill
according to their need and they do not order very often. So I would suggest that
the supply chain has to be restructured if it was not efficiently done before to
reduce the wastage and to increase the manpower efficiency.
2. Almost all of the customers are satisfied with the companys product and hence
the quality issues are not a problem as of now.
3. Also most of the customers feel that they are delivered the right product
according to the specification so there are no issues in that too.
4. Truck is the major choice of vehicle used for the transportation of goods.
5. Almost all of the customers are satisfied with the delivery time and there are
some transportation issues in the company due to the occasional strikes due to
the fuel price rise and some supply chain issues. But those are not frequent.
6. From the study it is very much evident that the price of the yarn fluctuates very
much and that affects the customer behaviour.
7. On enquiring about the reason for the price fluctuation the price of the fuel plays
a big part in it as the raw materials are brought from other states the
transportation cost is much more. Thus company has to spend more on the
transportation charges. If they could reduce the cost by somehow shifting the
warehousing to the nearer place to the mill it would be efficient for them. Also if
they could find some suppliers of raw material in TamilNadu itself it would
reduce the cost of transportation.
8. Also if they could help the local farmers in planting the cotton they could harvest
there itself and there is no need to spend extra money on that as the transport
cost would suffice for that.
9. Also they could request the government for giving subsidies for the cotton
farmers as that would make the farmers grow more cotton that not only helps
the company and the industry in TamilNadu but also it would increase the GDP
of the state.




Conclusion:
The organizational study helped me gaining the industrial exposure and also a brief
introduction about the functional departments in the organization. All the processes
from procuring the raw materials to delivering the final product to the customer are
briefly touched upon during my tenure as an intern in the company.
The marketing strategies to retain their customers for a long time is due to their
strong quality measurements and timing on delivery. This organisational study not
only gave the industrial exposure but also the practical knowledge on how things
work in the real time.















Annexure
Questionnaire
Customer preference and satisfaction in spinning mill
1. Name of the company:________________________________

2. How long have you been doing business with this company?
a. 1 year b. 2-3 years c. >5 years d. >10 years

3. How often do you order for yarn?
a. Once a month b. Weekly c. According to the need d. Rarely

4. Are you satisfied with the price range offered by the company for their products?
a. Yes b. No c. Just okay with it

5. Are you satisfied with the quality of the yarn
a. Yes b. No

6. Are you delivered the product exactly like your specification?
a. Yes b. No

7. Your mode of transportation of goods?
a. By Truck b. By Mini truck c. By Tata Ace

8. Are you satisfied with the delivery time?
a. Yes b. No

9. Have you ever had any issues related to the transportation?
a. Yes b. No
If yes specify it:_________________________________________
10. Do you think the price of the yarn fluctuates very often?
a. Yes b. No

11. If yes, what do you think the reason for the price fluctuation?
a. Rise of the cotton prices b. Rise of fuel prices c. Inflation

References
http://www.citiindia.com/textile-industry/outlook-for-indian-textlie-
industry.html
http://texmin.nic.in/
http://www.fibre2fashion.com/industry-article/market-research-industry-
reports/indian-textile-industry/indian-textile-industry1.asp
http://www.texprocil.org/cotton-yarn