Human Resource Management

(Functions of ER and HR department and welfare Activities for

Workers in Arvind Ltd.)

Submitted by:Mahatma Gandhi Labour Institute (Master of Social Work)

Prakash Naidu 07
Dhaval Patel 14

Preface
Todays competitive age, practical knowledge is more significant than
theoretical knowledge. Today practical training & knowledge play very important role in
management program. As Students of Social Work, we have got an opportunity to went in
the corporate and get insight about the ER and HR function of the company and Training
Technique.
We have prepared field work report on function of ER department and HR
department of Arvind mills ltd.

Acknowledgement
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The training was a memorable experience as it allowed me to learn a lot of things in a

programmatic way practically in real corporate world. And it really matters as things are
completely different and complicated as compared to the theoretical concept.
We are immensely grateful to Prof. Dr. I.S.Singh Head of MSW Dept. & Mr. Chandrik
Rajdeep field work supervisor, who gave us the opportunity of doing the training.
We are extremely thankful to Whole ER team of Arvind mills ltd. Ahmadabad and Mrs. Milli
Das, who show us the directions and lot of guidance to complete up our field work as per
our field work criteria. Also gave us all the information which is very much important during
our training period.
We are also thankful to all the employees of Arvind mills ltd. to co-operate to us.

INDEX
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Particular

Page.on

Introduction of Arvind Ltd.

Organization And Department Structure
Denim Manufacture Process
HR Department in Arvind Ltd
ER Department in Arvind Ltd
Recruitment and Selection of workers
Wage and Salary Structure
Welfare facilities and Safety
Training and Development
SHARDA Trust (CSR Activity)
Summery

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Introduction of Arvind Ltd.

Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year 1931. With the aim of
manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560
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ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start
along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching,
finishing and mercerizing. The sales in the year 1934, three years after establishment were Rs 45.76 lakh
and profits were Rs 2.82 lakh.
In the mid 1980s the textile industry faced another major crisis. With the power loom churning out vast
quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of
closure. Yet that period saw Arvind at its highest level of profitability. At this point of time Arvinds
management coined a new word for it new strategy Renovision. It simply meant a new way of looking at
issues, of seeing more than the obvious and that became the corporate philosophy.
The national focus paved way for international focus and Arvinds markets shifted from domestic to global,
a market that expected and accepted only quality goods. Cottons were the largest growing segments. But
where conventional wisdom pointed to popular priced segments, Renovision pointed to high quality
premium niches. Thus in 1987-88 Arvind entered the export market for two sections -Denim for leisure &
fashion wear and high quality fabric for cotton shirting and trousers. By 1991 Arvind reached 1600 million
meters of Denim per year and it was the third largest producer of Denim in the world.
In 1997 Arvind set up a state-of-the-art shirting, gabardine and knits facility, the largest of its kind in India,
at Santej. With Arvinds concern for environment a most modern effluent treatment facility with zero
effluent discharge capability was also established.
Year 2005 was a watershed year for textiles. With the muliti-fiber agreement getting phased out and the
disbanding of quotas, international textile trade was poised for a quantum leap. In the domestic market too,
the rationalizing of the cenvat chain and the growth of the organized retail industry was likely to make
textiles and apparel see an explosive growth.
Arvind has carved out an aggressive strategy to verticalize its current operations by setting up world-scale
garmenting facilities and offering a one-stop shop service, by offering garment packages to its international
and domestic customers.
Of Lee, Wrangler, Arrow and Tommy Hilfiger and its own domestic brands of Flying Machine, Newport,
Excalibur and Ruf & Tuf, is setting its vision of becoming the largest apparel brands company in India.

Journey of Arvind Ltd.

Kasturbhai Lalbhai

Narottambhai Lalbhai

Chimanbhai Lalbhai

1931
Arvind Limited is set up by three brothers Kasturbhai, Narottambhai and Chimanbhai Lalbhai with a share
capital of Rs 2,525,000 (US$55,000) backed by state-of-the-art technology, with the aim to produce high-end
superfine fabric.

1934
With sales reaching Rs 45.76 Lakhs, and a profit of almost Rs 3 Lakhs, Arvind establishes itself amongst the
foremost textile units in the country.

1986

An uninterrupted record of not missing out on paying dividend to its shareholders.

An established leader in fine & superfine cotton fabrics for Indian market.

1986
Renovision: First company to bring globally accepted fabrics Denim, yarn dyed shirting fabrics & wrinkle free
gaberdines to India.

1987

The largest zero discharge green effluent treatment plant in India.

Commitment to greener world.
First company to bring International shirt brand Arrow to India.
First Company to start dedicated retail outlets for Arrow brand.

1989

Largest denim & shirting in South Asia.

3rd largest denim capacity in the world

 1997
First Indian company to verticalise the cotton textile business from cotton fields to apparel retailing.

1997-98
First company to introduce ERP SAP business solutions

2008
Company launches 'Megamart', now India's largest value apparel-retail chain.Largest portfolio of
International brands: Lee, Wrangler, Nautica, Jansport, Kipling, Tommy, Arrow, US Polo, Izod, Pierre
Cardin, Palm Beach, Cherokee, hart Schaffner Marx.

LALBHAI GROUP OVERVIEWS

Each
company
The Lalbhai group, founded by the 3 Lalbhai brothers - Kasturbhai, Narottambhai and
Chimanbhai - in 1908, has grown to become one of India's most diversified business in the
houses, with a significant presence in the textiles, ready-to-wear, chemicals and
group, in
telecom industries in India.
its own
way,
pursues a single mission - to be the benchmark in its' industry. To achieve this, we have tied-up
with a variety of companies ... all world leaders in their respective fields.

LALBHAI GROUP COMPANIES :-

TEXTILES :THE ARVIND MILLS LTD.

ARVIND PRODUCTS LTD.

GARMENTS :ARVIND CLOTHING LTD.

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ARVIND FASHIONS LTD.

CHEMICALS :ANIL STARCH PRODUCTS LTD.

ATUL LTD.

TELECOM :ARVIND TELECOM

OTHERS :LALBHAI REALTY LTD.

ANUP ENGINEERING LTD.

Joint Venture Brands:

Tommy Hilfiger
Lee
Wrangler
Wrangler Hero
Riders
Arrow

Companys Mission
To achieve global dominance in select business built around our core competencies, through
continuous product and technical innovation, customer orientation and a focus on cost
effectiveness.

Companys Value & Vision

We Believe
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In people and their unlimited potential

In content and focus in problem solving
In teams for effective performance in intellect & its power

We Endeavour
To select, train and coach people to obtain higher
responsibilities
To nurture talent to build leaders for tomorrow's corporation to reward,
celebrate and activate all intellectual business contributions.
We Dream
Of excellence in all endeavors
Of mutual benefit and prosperity of making the world a better place to live in
We Make Things Happen.

Companys Philosophy
It is my responsibility as a leader to create an environment where excellent
people would live to come and give their best, to create a vision, to give
freedom for excellence.
Snajay Lalbhai (MD)

Board Of Directors

Mr. Sanjay S. Lalbhai (Chairman and MD)

Mr. Jayesh K. Shah
Mr. Sudhir Mehta
Dr. Bakul H. Dholakia
Mr. Munesh Khanna
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 Mr. G.M.Yadwadkar (Nominee of IDBI)

Mr. R. W. Khanna (Nominee of Exim Bank)
Ms. Renuka Ramnath

Corporate Office
Arvind Limited
Naroda Road
Ahmadabad 380025
Gujarat
India
Tel: +91-79-30138000
Fax: +91-79-30138680

www.arvindmills.com

Branches of company :-

Naroda, Ahmedabad.
Kalol.
Santej, Ahmedabad.
Bangalore.

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Organizational and Departmental Structure

Arvind mill has two department in it the one is HR department and the other one
is IR department.
And the main focus of our project is on IR and workers welfare facilities.

ORGANIZATION STUCTURE
On top level there is a MD of Arvind mill and MD of Arvind mill is Sanjay lalbhai.
Under MD there is CEO and CEO of Arvind mill is Aamir akhtar. And he has to
report and gave all the responsible answer to MD.
Under CEO in Arvind mill there is a head operation who has to give the answer
and report to him.
Under Head operation there 15department who are working and in that all the
managers like Human resources, finance, marketing, sales, ER (employee
relation).
ER is also called as an IR in Arvind mills and they operate all the workers who
are on the bottom level of hierarchy and they operate all the things of that
employee from pay sleeps to their benefits.
This all department have to report to head operation but in Arvind mill its not
mandatory for all employees because they can also directly report to CEO.
In all companies this type of operation is not available but in Arvind mill they gave
this type of facilities and they called it doted level or doted relations.
Than after under this fifteen department there is other three departments like
supervisor, junior manager, DDSP.
And they all have to report to the head of different departments.
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 Than under this there is bottom level of the employees like workers of the
different department.
And all the issue related to the production or any issue in department they have
to discuss it with the supervisor.
And the same is discuss it with higher level for any issue and problems and try to
solve it easily.
In the organization as they said there is no too much supervisor because there is
the manager post at different level like senior and junior manager.

Denim Manufacture Process

1. Spinning
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The first step in the manufacturing of all kinds of fabric i.e. spinning of bales of raw
cotton into yarns of various kinds suited for producing varieties of fabric. The open end
technology of spinning requires cotton to be processed in mainly 4 broad stages as
enumerated below:
Blowing: In this stage physical, in situ and ex situ impurities are gotten rid of raw
cotton.
Carding: Cotton, thus purified, is put into cylinders in sliver form
Drawing: Parallelization of fiber takes place
Roter spinning: The main process of drawing cotton fiber into yarn is carried out.

2. Weaving
The weaving department has the distinction of being the largest at Arvind Mills and
exports close to 95% of its manufactured fabric. Discussing the denim fabric, the core
competence of AM, original denim is composed of 100% cotton but with a view to bring in
variations to the material in consonance with the emerging trends in the market, various
natural fibers like linen and synthetic fibers like filament, lycra, polyester are added to
cotton. While weaving such mixed fabric, the core is made of the addend and original
cotton is wound around it. Yarn woven vertically is called warp while that woven laterally
is termed as weft. For weaving purposes a cotton count ranging from 5 to 20 is generally
used.

3. Dyeing
Arvind Mills has a grill section that was loaded with 12 beams of yarn, though latest
machinery could support even 16 of them. They are also known as warping beams and their design
depends upon the texture and construction of fabric e.g. weight, length etc. Each beam consist of
350-400 ends and 12 such beams are joined together to form one at last with 4000-4800 ends which
is used in the weaving process.
Four types of dyeing processes are used in Arvind mills namely:
Indigo dyeing
SBIT-sulphur bottoming indigo topping
IBST-indigo bottoming sulphur topping
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 Sulphur dyeing.

4. Finishing
The process is as follows : Singeing is done and the hairiness of the fabric is burned by flames.
Desizing removes the sizer put on by the suker muller in the dyeing department to
increase the strength of the fabric (a mixture of desizing agent, alcozyme and acetic
acid is used for the same).
Mercerizing is the process of caustic wash and the unit studies is GPL (gram per liter).
Stunter is used to settle the width shrinkage and to adjust the elasticity by killing the
elastic properties of lycra in the fabric which is to the tune of 30 to 40% earlier and
can be dropped down to 3 to 8% as per customer requirement.

5. Quality Assurance
In the modern day quality assurance has a wider scope and it includes activities like
process ownership and calliberation where in the department ownership is given to a
person and it becomes his/her duty to deal with it in the most efficient manner.

Quality assurance at Arvind mills has the following labs.:

Cotton laboratory
Physical testing laboratory
Chemical testing laboratory
Callibaration laboratory
Colour quest laboratory
Clearance department

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6. DTNG Department (Development and New Technology Group)

Company believes in innovation and constantly keeps on innovating new products. It
innovates around 1700 new product material every year which is equivalent to 5 new
product materials every day. Arvind mill manufactures around 1600 denim fabric out of
which 1300 includes different shades of blue colour.

7. Inspection Department
After the processing of the denim in the finishing department it is sent to the
inspection department where certain parameters are checked n then inspected in the inspection
machine. The parameters that are checked before inspecting in the machines are

Feel of the denim

Look of the denim
Weight of the denim
Shrinkage
Skewing
Elasticity of the denim

8. Marketing
Arvind mill produce 8 million meter fabric every month. Out of which 60% is
exported and the rest is manufactured for the domestic market. For, promotion of their
products in domestic & international market they organize fashion shows. They have
different designer for U.S., Europe, and domestic market. They introduce their new
collection twice every year (summer spring and autumn winter) known as American line
collection for the American market and Europe line collection for the European market.
Apart from that the also hold exhibition and seminars for the concerned buyers.
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HR Department in Arvind Ltd.

In strategic business unit the retention rate of the employee is low as the plant is 80 years old.
When a new employee joins the plants the excitement level of the employee is quite high but
within time it declines. At Arvind mills an attempt is being undertaken to decrease the number of
employees especially those who do not have the required employment skills. The employee
strength is more than 400 across naroda the units.HR department is responsible only for Staff
employees.
There are some Hr departments activity for staff employees.
Recruitment and selection
Manpower planning
Induction and training
Performance appraisal.
Retirement
Retrenchment
Compensation benefits
Employees welfare etc.
Some time they recruit the persons through campus interview, through advertisement,
through reference.

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Leave structure for staff employees :-

1) Privilege Leave 21
2) Casual Leave 10
3) Seek Leave - 10
Other than this travel leaves are also given.
Maternity leaves are also given for 4 months.
Allowances for Staff Employees :

Petrol allowances
Petrol allowances
House rent
Leave travel allowances
Child education allowance
Transport allowances

This are some allowances which are normally given above this some job specific allowances are
also given for the betterment and motivation of that employee.

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Employee Relation Department in Arvind Ltd

ER department deals with Work force. ER department is responsible only for workers. The
employee strength is more than 4000 across naroda the units.
In Arvind ther is shift system for workers. There are 3 shift for workers.
1) 1st shift - 7 am to 3:30 pm
2) 2nd shift - 3:30 pm to 12 at night
3) 3rd shift 12 to 7 am

ER Philosophy :- To install in operate feeling of loyalty, commitment and belonging.

- To provide safe working condition.
- To manage anions on an ethical basis
- Open sharing of the company information as considered relevant for employees
at all levels.
Leave structure for Workers: 6 paid leaves
Medical leaves

Following are ER Department Activities:

Recruitment and selection

Induction and training
Wage and salary
Motivation
Performance Appraisal
Welfare Activity etc.

Recruitment and Selection for workers

In recruitment and selection process there are many points that all the organization include and
follow the process of recruitment and selection.
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Steps that followed by Arvind mill in recruitment process:

Application :-

In that first they take the application from the candidate and take the resume of
the candidate and study all the requirements of the company that this candidate is suitable for
organization or not.

Written Test (Aptitude test) :After fulfilling first one they saw the second process of the interview and in that if
candidate is suitable for the organization they take aptitude test of the employee. And if
candidate clear this test with a good grade than they go ahead for the recruitment process of that
candidate.

Personal Interview :After clearing the aptitude test he is called for the personal interview and the
personal interview of the candidate is first taken by departmental head. Like for ex: if the
recruitment is going on in spinning department than first interview is taken by the head of the
department and than it goes on and on.

References:-

Talking about the references they first see that any relative or friend is working in
the same organization or not and if not than they see the other references given by him. They
also see the past experiences of the employee that if he is good enough in past companies or
not.

Wages and Salary Structure

In the Arvind mill basic pay of the employees minimum amount is fixed and its fixed

by TLA (Textile labor association) and in all the unit or department some basic
minimum amount is fixed up to certain level.
Basic pay of the workers is 282.88 Rs and than after he gets all other incentives like
medical allowances, convey allowances etc.

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 And if they hire the employees than at basic level on training period they pay them

2250 Rs till 6 month and if they like their performance than it also increase up to 4000
Rs.
And if we talked about the bottom level of the employee their basic pay is 165 Rs and
some benefits as a incentive. And they also get 10 to 15 % extra as a service charge so
their salary become 165 + 10%(17 approx)=182 Rs

Welfare facilities and Safety

The Company provided all welfare facilities as per the Factory act.
Canteen
Washing facility
Lighting
Drinking Water
Latrine
First-aid
Facility for sitting
Shelters, lunch rooms
Medical benefits
Pension , Provident Fund etc.
In additional Company provided other welfare facilities like,
Death Benefits Schemes (During working in company if worker death then

Rs.5000+P.F.etc. provided to family.)

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 Medical check up camp,Heart check up camp,Eye camp,Blood donation camp

Motivation progrmme whose children in 10th and in 12th.
Attendance award Scheme.
Department wise various small schemes.
Company is using 5s process for welfare activity and safety
The 5S Process, or simply "5S", is a structured program to systematically achieve total
organization, cleanliness, and standardization in the workplace. A well-organized workplace
results in a safer, more efficient, and more productive operation. It boosts the morale of the
workers, promoting a sense of pride in their work and ownership of their responsibilities.
"5S" was invented in Japan, and stands for five (5) Japanese words that start with the letter 'S'.

1. Seiri (Tidiness):Throw away all rubbish and unrelated materials in the workplace.
2. Seiton (Orderliness) :Set everything in proper place for quick retrieval and storage.
3. Seiso (Cleanliness) :Clean the workplace; everyone should be a janitor.
4. Seiketsu (Standardization) :Standardize the way of maintaining cleanliness.
5. Shitsuke (Discipline) :Practice 'Five S' daily - make it a way of life; this also means 'commitment'.

Safety
The company is very much concern about the safety of the employees
They organize different competition related to safety like safety slogan competition
They also celebrate birthdays, farewell party, and welcome party at offices among the
employee team. Team head will take care of all this activities.

Motivation
They motivate employee by also giving the award to their children.
In the Arvind mill they motivate employee by giving them awards.
They gave Rupees or momentous in the form of prizes and motivate them to study
more and more.
And if some employee is not capable for their Childs study than company help them
by providing loan or Rupees for further study.
They gave best performance award to the employee for motivating the employee.
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 They gave best attendance award to the employee so that other employee also
motivates to come an organization on daily basis.

Canteen

Employees are given very neat and clean food coat

In the canteen full lunch is provided in the very nominal prizing.
For example a plat of pury and sabji are provided in Rs. 4 only.
Big tables are provided for employees to sit in a group and also have their own
lunch.

Training and Development

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 In Arvind mills they believe in on going training process. They believe that training is
not only for fresher it is for all employees who are associated with the company.
Pattern of the training differs according to the designation of the employee.
For fresher they have certain rules like the fresher has to join as a trainee or as an
apprentice. Age limit is from 18 to 26 years. An education criterion is S.S.C.
Apprentice has to work whole year. For the first 6 months minimum Rs. 2500 is
given. And for other 6 months stipend is decided as per the performance of that
employee.
The training is on kaizen basis means continuous training process.
Out door training is also given if needed.

SHARDA Trust (CSR Activity)

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Establish 1955 with support of Arvind Ltd.

SHARDA means Strategic Help Alliance for Relief to Distressed Areas.
Company used to adopt areas near by their factory and they develop it.
They also provide education loan to the poor kids without interest.

Objective of SHARDA Trust : To help the urban poor in improving their quality of life. Trust work on five basic needs.
Basic physical infrastructure for clean water at the door steps in adequate quality at
convenient hours, individual toilets and hygienic surrounding.
Primary health-care.
Reading, Writing and Arithmetic skills at Rs.3 for all.

Summary

First of all the whole experience of visiting the Arvind mills was very nice and positive.
We were given very good treatment their.
People over there, the whole staff are very help full.
We found out that the HR and IR department of the company is very strong and active.
They are also actively doing CSR work from the company.
They are very much concern about the safety and security of their employees.
They are giving all facilities to the employee.
The salary structure and other benefits are also considerably good and as per the law.
Canteen facility is very good. Neat and clean place for food and healthy food for the
employees are provided.
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 The company is very old but they are adopting new techniques and methods.
They believe in modernization but the values of the company are very ethical and very
strong.

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