HR practices at Raymond

India Ltd
TA&R Assignment
9/20/2014
Submitted By:

Aviral Aggarwal
13020841070

HR Practices at Raymond India Limited

Indian Textile Industry
The textile industry is the largest industry of modern India. It accounts for over 20 percent of
industrial production and is closely linked with the agricultural and rural economy. It is the
single largest employer in the industrial sector employing about 38 million people. If
employment in allied sectors like ginning, agriculture, pressing, cotton trade, jute, etc. are added
then the total employment is estimated at 93 million. The net foreign exchange earnings in this
sector are one of the highest and, together with carpet and handicrafts, account for over 37
percent of total export earnings at over US $ 10 billion. Textiles,1 alone, account for about 25
percent of Indias total forex earnings.
Indias textile industry since its beginning continues to be predominantly cotton based with about
65 percent of fabric consumption in the country being accounted for by cotton. The industry is
highly localised in Ahmedabad and Bombay in the western part of the country though other
centres exist including Kanpur, Calcutta, Indore, Coimbatore, and Sholapur.
The structure of the textile industry is extremely complex with the modern, sophisticated and
highly mechanised mill sector on the one hand and the handspinning and handweaving
(handloom) sector on the other. Between the two falls the small-scale powerloom sector. The
latter two are together known as the decentralised sector. Over the years, the government has
granted a whole range of concessions to the non-mill sector as a result of which the share of the
decentralised sector has increased considerably in the total production. Of the two sub-sectors of
the decentralised sector, the powerloom sector has shown the faster rate of growth. In the
production of fabrics the decentralised sector accounts for roughly 94 percent while the mill
sector has a share of only 6 percent.

Introduction
Silver Spark Apparel Ltd. is a wholly owned subsidiary of Raymond Ltd.; marking the group's
foray into the Global Apparel Outsourcing market. The unit manufactures suits and formal
trousers catering largely to export markets.
It has state-of-the-art manufacturing facilities at the company's Doddaballapur plant, which
produces 0.4 million suits, jackets and 2.0 million trousers annually. With a total built-up area of
2,00,000 square feet, the facility houses state-of-the-art manufacturing equipment.
Set-up at a total project cost of USD 10 million, the plant's forte lies in the manufacture of
jackets, which are at par with highly rated jackets from Italy or Japan. Fully compliant with
international quality norms, our facility was audited and approved for commercial production by
major American and Japanese menswear buyers.
The company has a good overseas clientele base. Growth in Sales was led by a strong export
order book and the appreciating dollar.
The Gross Revenue of the company for FY 2014 stood at Rs. 313.91 Crore as against Rs. 225.53
Crore in the previous year. The company had a profit after tax of Rs. 22.33 Crore (Previous
Year: Rs. 16.55 Crore). Silver Spark Apparel Limited has won the AEPC Export Award for
2012-2013 in the category of Highest Unit Value Exporter.

Need for a good HRD in textile industry

Emerging trends in human resource requirements
Technology
The changes in technology would significantly affect the profile of people involved. As
mentioned earlier, the share of shuttle-less looms in the Indian textiles industry is only 2-3% as
against a world average of 16.9%, thereby indicating a low degree of modernisation in the Indian
weaving industry. Although the Indian spinning sector is relatively more modernised, around
60% of installed spindles are more than 10 years old and open-end (OE) rotors account for only
1% of total installed spindles. In the apparel sector, India has much lower investment in special
purpose machines, which perform specific functions and add value to the product. Very few
export establishments have invested in cutting machines or finishing machines. The low level of
technology and government incentives like TUFS would drive modernisation in the industry
whereas the high power costs would be a detriment.
The technological upgradation would necessitate the human resource to be trained in modern
machinery and also greater in house spending on training. The shortage of labour and increasing
wage rate would further induce greater automation which will lead to higher productivity. For
instance, the operating hours per quintal of yarn have decreased from 77 to 25 on account of
modernisation and would continue to fall. Also, the numbers of people involved in post spinning
operations have come down on account of automatic cone winding machines.
The modern machinery would require skilled maintenance people who have the requisite
knowledge of the same. Proper maintenance would be crucial as machine down time and costly
spare parts would significantly affect the performance of the industry.
Quality Processes
There would be increasing focus and adoption of quality and environment related processes, such
as:
ISO 9001:2008
ISO 14001.
Research & Development
The textile industry does not have R&D as a focus area. The industry would have to invest more
in both process and product R&D to maintain product and cost competitiveness. This requires
industry-academia collaborations as well as individual R&D efforts by the companies.
Labour laws

More flexible labour regulations will positively affect the industry. Currently, T&C industry
comes under the purview of Contract Labour Act, 1970 which prohibits contract labour for the
work that is perennial in nature. The exporters find it difficult to manage the seasonal and order
based volatility in demand on account of this. Change in the current regulations can lead to
opening up of more employment opportunities. Also, the current regulations prohibit women
from being employed in night shifts. Relaxation of the same with adequate safeguards can lead to
more participation of women and also help in addressing the skill shortage in the industry.
Human resource related
Modernisation of technology would necessitate more technical skills for operators in the
production and maintenance functions across the value chain of the textile industry. The sector
also needs multi-tasking/multi skilling at the operator level. The human resource at the higher
levels as well as in other functions like procurement would need to possess the knowledge of
various types of machines and also keep abreast with the changes in technology.
The garmenting sector would be the key driver of the employment in the textile sector. majority
large portion of the human resource requirement will be for operators who have the adequate
knowledge of sewing machine operations and different types of seams and stitches. Although,
the
industry will continue to have predominantly line system of operations, designer and high end
fashion exports would necessitate make through system of operations which would require the
operators to have the ability to stitch the complete garment. The availability of merchandising
and designing skills would be crucial for increasing share in export markets and tapping the
potential in new markets.

HR at Raymond
The successful functioning of any industry is determined by the factors like men, material,
money and market. Among all these factors, manpower assumes greater significance. Manpower
is the life blood of any industry. Therefore, every effort should be taken on a priority basis to
keep this factor for achieving the main objectives of the industry. The textile industry occupies a
unique place in our country. It is the second largest employment generator after agriculture. The
textile industry being labor-intensive, is a major contribution to the country's economy with its
vast potential for creation of employment opportunities in the agricultural and industrial sectors.
Business organizations are made up of people and function through people. Textile industries are
no exception to this. Hence, it is essential for every organization to adopt the human resource
management practices in the administration.
As textile industry is a labor intensive industry which is still dependent on manual labor and a
skilled workforce, HRD is one of the core departments in any textile company. The working of
HRD encompasses all the departments, as it has to manage all the employees tactfully. The HRD
mainly follows the two aspects for managing the employees. They are:Traditional aspect
Developmental aspect

The traditional aspect is related only to the old age concept of human resource management. It
carries out the functions mainly of:1. Recruitment: - The employees are recruited on the basis of value and urgency. The
traditional recruitment can be internal i.e. the employees are promoted or their relatives.
It can also be external from some consultant management schools, by newspaper
advertisement etc.
2. Payment of salaries and wages: - It is decided on the basis of the work or designation;
payment of wages is done according to minimum wages act.
3. Industrial relations: - The department establishes a relation, which will be beneficial to
the company in long term. Workmen compensation act and employees state insurance act
is implemented.
4. Union management.
5. Agreement: - It includes the rules and regulations, which are to be followed by the staff
and employees for smooth working of the company.
6. Bargaining with the union.
7. Resolving disputes: - Industrial disputes act resolves strikes and outlets.
8. Administration is also a function of the HRD department. It includes providing facilities
like lunch, bus for traveling. Even providing security is the part of the administration.
Administration activities are launched by government in same format.

The development aspect includes activities such as:1. Performance Appraisal: - Quarterly appraisals are done and objectives are defined for
the year. In this A, B and C rating is given like excellent, very good and good. There are
4 types of appraisals:a. Self appraisal
b. Superior appraisal (90)
c. Peers appraisal (180)
d. Subordinate appraisal (360)
2. Training and development: - Training and development is provided on the basis of their
needs. Training is provided either internally or externally. The training is provided mostly
on job. The off job training is provided to mostly executives.
3. Engineers and HRD workers do timely study.
4. Job Rotation: - It is used to motivate the employees and to avoid monotony.
5. Grievance management: - It is to coordinate the management with the employees. Its
main objective is to sole the grievances of the employees, so that they should work with
complete commitment.
6. Promotion: - It is provided on the basis of sincerity and merit. Besides these facilities
such as recreation to the staff and their family, transportation canteens, schemes for
children, society for workman, etc. are provided.

Recruitment

Recruitment refers to the process of screening, and selecting qualified people for a job at an
organization or firm, or for a vacancy in a volunteer-based organization or community group.
While generalist managers or administrators can undertake some components of the recruitment
process, mid- and large-size organizations and companies often retain professional recruiters or
outsource some of the process to recruitment agencies. External recruitment is the process of
attracting and selecting employees from outside the organization.
A. Internal Sources:a. Promotions and Transfer
b. Job postings
c. Employee Referrals
B. External Sources:a. Advertisement
b. Employment Agencies
c. On campus Recruitment
d. Employment exchanges
e. Education and training institute
Internal Resourcing
The company first scouts for talent within the organization to provide growth opportunities to its
employees. This is done by notifying vacancies internally. This practice helps in managerial
cross-functional exposure for career development and learning.
Talent from Campus
Raymond recruits young textile engineering graduates, textile technologists, chartered
accountants, fashion technologists and MBA's only from some of India's leading Institutes. They
are then rigorously trained for a period of one year, during which they are placed across different
departments, before being finally placed in their area of specialization. The objective of the
programme is to gauge the recruit's area of expertise and then train them to independently
shoulder their responsibilities. A Mentoring programme for new inductees in the organization
enables them to adapt themselves to the organization.
Lateral Recruitment
'Market-skilled' employees from other companies are periodically inducted into the organization
from time to time. A combined force of existing talent and induction of fresh blood helps the
company to be competitive in the face of increasing business complexities.

Continuous Learning and Development

Organizational excellence is achieved only through continuous investments in growth and
renewal of human resources.
A detailed training and development plan is drafted and implemented each year, which
comprises level-wise planned interventions as well as specific need-based interventions through
Training Need Analysis. This equips the team to excel in their current roles while also preparing

them for future roles. There is great emphasis on behavioural and attitudinal training apart from
technical and on-the-job training.

Other hr based practices followed at Raymond silver spark apparel

industries
Compliance : Under HR Compliance, Buyer Audits are conducted by the would be handled and
conducted by the Compliance Officers . The compliance officers mainly look into the policies
which govern the industry like the Factory Act. They check the extent to which the HR-related
practices of the buyers and their documents comply with legal requirements and best practices of
the industry
Settlement : The HR Settlement practice is basically used to set the Salary of the employees, the
PF, Compensation and Benefits, and PFID. The HR mainly processes the bonuses, commissions
and payrolls on a weekly/biweekly basis, for salaried/hourly employees. The HR team also
handles salary queries, debt queries, final settlement checks, manual checks, stop
payments/recalls, payroll funding with the banking institutions and provides daily payroll tax
balancing and cash funding information to the client.
Committee Meetings :.These are usually conducted by Welfare Officers from foreign countries
to address these issues and they give seminars and training on Leadership Development and
Inspirational speeches for the operators and staff in order to motivate them
Welfare : The Welfare practice is mainly practiced to look into the welfare of the workers,
operators, staff in issues related to canteen , health centres, factory premises, health centres and
the purchase outlet. Labour Welfare means anything done for the comfort and improvement,
intellectual or social, of the employees over and governmental, which is not a necessity of the
industry .The welfare officer plays the role of the mediator between the worker and the
management. The welfare officer resolves the issues between workers and management then and
there itself if both the parties agree and reach a compromise then and there itself or else take it to
the next stage in case if does not finish it within that instant and moves to the court.
MIS (Management Information System): A management information system (MIS)
provides information that organizations require to manage themselves efficiently and
effectively. Management information systems are typically computer systems used for managing
In day to day work number of MIS formats is being used by this factory. By using MIS system
managers can measure work, track information on the right time and in the right form. Some
basic formats used by various departments in Raymonds Silver Spark Apparel Industry have
been listed below.
Fabric Store MIS
Fabric issue and receive book
Fabric inventory book
Log book for fabric quality and swatches
Fabric conciliation report
Fabric Test Report (Internal Lab Test)

Cutting room MIS

Fabric requisition Slip

Lay slip

Cutting record book

Fusing record

Bundle record keeping

Record of End bits

Cutting machine maintenance logbook

Fusing machine check sheet

Merchandising MIS
Sample order Sheet
Order Indent
Style Sheet
Bill of Material sheet / Material requirement
Sample submission
Production file Check list
Time and Action Calendar
Order tracking sheet
Purchase order request Sheet
Pre-production meeting format
R&D report