REID & TAYLORS PVT.LTD.

A Project Report submitted in

partial fulfillment of the requirements for

BACHELOR OF BUSINESS ADMINISTRATION

of

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

(SESSION 2013 – 2016)

Submitted by:-

YASH UPADHYAY Under the Guidance of:-

Dr. BHAWNA BHATNAGAR

Enrolment No.:- 08650601713

BBA –III Semester

 DECLARATION

I, YASH UPADHYAY hereby declare that the project work entitled “Market Study of Reid &
Taylors Pvt. Ltd.” submitted to Guru Gobind Singh Indraprastha University, Delhi, is a
record of an original work done by me under the guidance of Dr. BHAWNA BHATNAGAR,
Faculty, New Delhi Institute of Management, New Delhi, and this project work has not
performed the basis for the award of any degree or diploma and similar project if any.

Place: New Delhi Student’s Name:

Dated: YASH UPADHYAY
 CERTIFICATE

This is to certify that the project titled “Market Study of Reid & Taylors Pvt. Ltd.”,
submitted by YASH UPADHYAY to New Delhi Institute of Management, Guru Gobind
Singh Indraprastha University in partial fulfillment of requirement for the award of the
B.B.A. Degree is an original piece of work carried out under my guidance and may be
submitted for evaluation.

The assistance rendered during the study has been duly acknowledged.

No part of this work has been submitted for any other degree.

Place: New Delhi Faculty Guide:-

Dated: Dr. BHAWNABHATNAGAR
 ACKNOWLEDGEMENTS

I would like to offer my sincere gratitude to various people, who directly or indirectly
have contributed in the development of this work and who have influenced my thinking,
behaviour and acts during the course of study. I am indebted to Dr. BHAWNA
BHATNAGAR, Faculty, NDIM for his support, co-operation and motivation provided to
me during the study. Many others had a direct or indirect by no means negligible
contribution in the completion of the project. The project has been a learning experience
for me and would not have been possible without the support and guidance of the above
mentioned people. Needless to say, I alone remain responsible for any errors that might
have crept into the pages, despite of my best possible efforts to avoid them.

Student’s Name:-
YASH UPADHYAY
 TABLE
Ch-1:
Introduction to the study
1.1 Objectives of the study
1.2 Significance of the study
1.3 Scope of the study
1.4 Limitations of the study

Ch-2:
Research Methodology
2.1 Universe
2.2 Sample Size & Sampling technique
2.3Data Collection (Primary & Secondary Data)
2.4 Data Analysis & interpretation
2.5 Sampling Design
Ch-3:
Industry overview
3.1 Retailing
3.2 Exports & Competitiveness
3.3 Policy Implications
3.4 Supply Chain Management
Ch-4:
Company profile
4.1 Visions, Missions & Values
4.2 Current business outlook & plans
4.3 Corporate Social Responsibility (CSR)
4.4 Employees Stock Option Scheme (ESOP)
4.5 Human Resource
4.6 Corporate Governance
4.7 Major Competitors
4.8 Financial Overview
4.9 Growth Drivers

Ch-5
Findings and analysis
Ch-6
Conclusion and recommendations
6.1 Conclusion
6.2 Suggestions

Annexure
 Bibliography
 Sample Questionnaire
 CHAPTER-1

INTRODUCTION
INTRODUCTION

In marketing, managers use marketing research as an important tool to solve

marketing problems. It helps company and decision makers by providing valuable
data, helping to select suitable sales promotional techniques, supplying market-
related information etc. Market related information includes present and future
demand and supply position, level of competition and steps to be taken to control
it, cause of fall in sales level, market opportunities etc.

More importantly, marketing research provides data about consumer behavior. It

provides data about age, incomes, likes, dislikes, etc. of the consumers. It also
finds out the opinions of the consumers about a company’s product. This data is
used to make production and marketing policies.

The saying, "the only thing that is constant is change" is very relevant in the
garment industry. Consumer and business trends used to change slowly, providing
managers an opportunity to spend time analyzing the implications to their business,
allowing them to make well-informed decisions. However, today, as in life, change
in consumer and business trends happen rapidly. This has forced managers to
become more observant and better prepared to make strategic decisions. Managers
have found that it is essential to keep on top of consumer and business trends.
Changes in the market place may lead to a shift in the demand for their product or
perhaps present new business opportunities. Capitalizing on new opportunities
involves tracking consumer and business trends, ignoring passing fads and
evaluating the implications to your business.
 1.1 OBJECTIVES OF STUDY

 To promote Reid & Taylor as a brand and its fabrics among

customers visiting various outlets.
 To help RTIL in understanding the satisfaction level of customers
about RTIL’s fabric designs
 To perceive the role of design in fabric industry
 To find out the reasons why customers patronize Reid & Taylor.
 To help RTIL in grasping a little knowledge on general buying
behavior of its customers.

However, the main objective is to fulfill the gap between

theoretical and practical knowledge.
 1.2 SIGNIFICANCE OF STUDY

The market players in Clothing sector can use this project to develop
marketing strategy for their Formal clothing products keeping in view,
the buying behavior of the consumers. The findings of this work can be
generalized in order to comment upon the basic influences which are
casted by the influencers and how they can affect the buying behavior
of general consumers towards the Formal Clothing products. With the
help of the research work different balanced advertising campaign can
also be concentrated upon. Overall this work has an multi dimensional
and vast scope. Study of this project will help in finding the demand of
different Branded Formal Clothing Companies. This project also help in
finding market share of different Branded Formal Clothings, in
calculating annually turnover, which Branded Formal Clothing
Companies lead the market. The project is useful for the company as
with the help of the present work the company can know about the
factors with the help of which the company can draft a good market
strategy. The work is equally important for me as with the help of the
present work the knowledge has been increased and the practical
knowledge in relation to the present work has increased.
1.3 SCOPE OF STUDY

The scope of study on “Market Study of Reid & Taylors Pvt. Ltd.” is
vast. It has helped to know about the market trend, demands,
consumption patterns, future prospects and consumer buying behavior
in terms of potential growth and consumer taste for the Reid & Taylor
formal clothing products. At the same time this project is useful for
other research workers who wish to study regarding identification of
consumer perceptions and attitudes regarding Formal Clothing for Men
& Women in India and identification of market potential available
personal computer sector, based on the customer taste, habits and
standard of living of the people living in the country.
1.4 LIMITATIONS OF STUDY

While doing the research some restraints were faced are listed
below

 The research could not cover each & every doorstep of the
Retailers & Distributors because of the vast area & time
constraints.
 There is a time restriction also acts as a major limitation in the
path of work proceeding.
 The number of respondents selected for data collection were
limited so discrepancy may arise
 Due to lack of time the respondents were not able to co – operate
fully.
 CHAPTER 2
RESEARCH METHODOLOGY
 RESEARCH DESIGN

Research Methodology is a way to systematically solve the research problem. The

Research Methodology includes the various methods and techniques for
conducting a Research. “Marketing Research is the systematic design, collection,
analysis and reporting of data and finding relevant solution to a specific marketing
situation or problem”. D. Slesinger and M. Stephenson in the encyclopedia of
Social Sciences define Research as “the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or verify knowledge,
whether that knowledge aids in construction of theory or in the practice of an art”.

Research is, thus, an original contribution to the existing stock of knowledge

making for its advancement. The purpose of Research is to discover answers to the
Questions through the application of scientific procedures. Our project has a
specified framework for collecting data in an effective manner.
2.1 UNIVERSE
In this project use exploratory research design and for data collection fill-up the
questionnaires from the customer of Formal clothing’s, survey of the market and
some information collect by questionnaire of the users of the ice-cream at South
Delhi.

2.2 SAMPLE SIZE AND SAMPLING TECHNIQUE

SAMPLE AREA

The sample area is Delhi & NCR

SAMPLE SIZE

Approx 50 consumer

SAMPLE TECHNIQUE

Radom Sampling Method.

2.3 DATA COLLECTION (PRIMARY AND SECONDARY)

COLLECTION OF PRIMARY DATA:-

I collect primary data during the course of doing experiments in an experimental
research but in case we do research of the descriptive type and perform surveys,
whether sample surveys or census surveys then we can obtain the primary data
either through observation or through questionnaire. Thus, in other words, it means
that there are several methods of collecting primary data particularly in survey.
Questionnaire:
It is formalized set of question for extracting information from the target
respondent. The form of the question should correspond to the form of required
information. The three general form of question are dichotomous (yes/no type),
multiple choice and open ended.

COLLECTION OF SECONDARY DATA:-

Secondary data means data that are already available i.e. they refer to the data
which have already been collected and analyzed by someone else.. In this scale he
is certainly not confronted with the problems that are usually associated with the
collection of original data. Secondary data may either be published or unpublished.
Usually published data are available in various publications of the central, state,
and local bodies. In various publications of foreign govt. and international bodies
and their subsidiary organization. In technical and trade journals, books magazines,
newspaper, reports and publication of various associations connected with business
and industry, banks, stock exchanges etc.

2.4 DATA ANALYSIS & INTERPRETATION:-

Data interpretation is the most vital part of any survey. Accuracy and perfection of
the study depends on the arrangement of raw data and its interpretation.
In this project work, I collected all the primary data through questionnaire and
analyzed each response carefully.
2.5 SAMPLING DESIGN:-
This Project is made with the help of Convenience Sampling Method. It
can be defined as sampling technique where subjects are selected
because of their convenient accessibility and proximity to the
researcher.

The subjects are selected just because they are easiest to recruit for the
study and the researcher did not consider selecting subjects that are
representative of the entire population.

In all forms of research, it would be ideal to test the entire population,

but in most cases, the population is just too large that it is impossible to
include every individual. This is the reason why most researchers rely
on sampling techniques like convenience sampling, the most common
of all sampling techniques. Many researchers prefer this sampling
technique because it is fast, inexpensive, easy and the subjects are
readily available.
 CHAPTER 3
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW

The word 'textile' is fromLatin from the adjectivetextiles, meaning 'woven',

fromtextures, the past participle of the verbtexture, 'to weave’. The word 'fabric'
also derives from Latin, most recently from the MiddleFrenchfabrique, or
'building, thing made', and earlier as the Latin fabrics 'workshop; an art, trade; a
skillful production, structure, fabric', which is from the Latinfiber, or 'artisan who
works in hard materials'.

The Indian textile industry is one of the largest and oldest sectors in the country
and among the most important in the economy in terms of output, investment and
employment. The sector employs nearly 35 million people and after agriculture, is
the second-highest employer in the country. Its importance is underlined by the
fact that it accounts for around 4% of Gross Domestic Product, 14% of industrial
production, 9% of excise collections, 18% of employment in the industrial sector,
and 16% of the country’s total exports earnings. With direct linkages to the rural
economy and the agriculture sector, it has been estimated that one of every six
households in the country depends on this sector, either directly or indirectly, for
its livelihood.
A strong raw material production base, a vast pool of skilled and unskilled
personnel, cheap labor, good export potential and low import content are some of
the salient features of the Indian textile industry. This is a traditional, robust, well-
established industry, enjoying considerable demand in the domestic as well as
global markets.

India is the one of the world's largest producers of textiles and garments. Abundant
availability of raw materials such as cotton, wool, silk and jute as well as skilled
workforce have made the country a sourcing hub. It is the world's second largest
producer of textiles and garments. The Indian textiles industry accounts for about
24 per cent of the world’s spindle capacity and 8 per cent of global rotor capacity.
The potential size of the Indian

textiles and apparel industry is expected to reach US$ 223 billion by 2021,
according to a report by Technopak Advisors.
The textiles industry has made a major contribution to the national economy in
terms of direct and indirect employment generation and net foreign exchange
earnings. The sector contributes about 14 per cent to industrial production, 4 per
cent to the gross domestic product (GDP), and 27 per cent to the country's foreign
exchange inflows. It provides direct employment to over 45 million people. The
textiles sector is the second largest provider of employment after agriculture. Thus,
the growth and all round development of this industry has a direct bearing on the
improvement of the India’s economy.

India vis-à-vis Global Textiles

The global textile and clothing industry is estimated to be worth about US$ 4,395
bn. and currently global trade in textiles and clothing stands at around US$ 360
bn. The US market is the largest, estimated to be growing at 5% per year, and in
combination with the EU nations, accounts for 64% of clothing consumption.
The Indian textile industry is valued at US$ 36 bn with exports totaling US$ 17 bn
in 2015-2016. At the global level, India’s textile exports account for just 4.72% of
global textile and clothing exports. The export basket includes a wide range of
items including cotton yarn and fabrics, man-made yarn and fabrics, wool and
silk fabrics, made-ups and a variety of garments. Quota constraints and
shortcomings in producing value-added fabrics and garments and the absence of
contemporary design facilities are some of the challenges that have impacted
textile exports from India.
India’s presence in the international market is significant in the areas of fabrics
and yarn.

 India is the largest exporter of yarn in the international market and has a
share of 25% in world cotton yarn exports

 India accounts for 12% of the world’s production of textile fibres and yarn

 In terms of spindle age, the Indian textile industry is ranked second, after
China, and accounts for 23% of the world’s spindle capacity

 Around 6% of global rotor capacity is in India

 The country has the highest loom capacity, including handlooms, with a
share of 61% in world loom age.

India’s Textile Industry Structure

Cotton textiles continue to form the predominant base of the Indian textile
industry, though other types of fabric have gained share in recent years. In 1995-
96, the share of cotton and manmade fabric was 60% and 27% respectively.
More recently, cotton fabrics accounted for 46% of the total fabric produced in
2015-16, while man-made fibres held a share of 41%. This represents a clear shift
in consumer preferences towards man-made fabric.

Domestic Demand

During the period 2001 to 2016 the share of cotton in total fabrics and clothing
consumption steadily declined from 53% to 38%. In case of textiles in piece
length, there was a decreasing trend both in case of cotton and total textiles for the
years 1990, 2005 and 2016 as per Textile Committee data. In case of total textiles
most of the items showed a declining trend except furnishing material which
increased drastically from 1990 to 2005. In case of readymade garments both
cotton and total textiles showed an increasing trend over the years 1990, 2005 and
2016. In case of cotton textiles major change took place for trouser which
increased drastically from 2005 to 2016 and for skirt/midi which showed a drastic
increase from 1990 to 2005. For total textiles, major increase took place in case of
school uniform, skirt/midi and petticoat from 1990 to 2005. For household
varieties also there was an increasing trend for both cotton and total textiles over
the periods 1990, 2005 and 2016 with
chadder showing major changes in both categories of textiles over the period 2005
to 2016. Also in case of cotton textiles, curtain and towel showed major changes.
As for hosiery (knitted varieties), an increasing trend is observed for both cotton
and total textiles with major increases occurring in items like banian and T-shirt
over the period 1990 to 2005. Also there was a major increase in sweater
consumption in case of total textiles for the period 2005 to 2016. If we compare
cotton textile vis-a-vis total textile, we find that the share of cotton textiles in total
textiles has declined from being over 52.77% in 1990 to 39.51% for 2005 and
37.68% for 2016. Also the share of hosiery in these five categories of textiles and
share of made-ups in the woven textiles has reduced for total textiles as compared
to cotton textiles for the years 1990, 2000 and 2006.

Consumers spend 5.96 and 7.07 per cent of their total expenditure
(reference period 365 days) on clothing items in urban and rural India respectively.
The per capita expenditure/income is 6712 rupees for rural India and 12610 rupees
for urban India in 2014-15. So consumers in urban areas spend much higher
compared to their rural counterparts in absolute value. The share of clothing in
total expenditure/income has increased from 6.50 per cent in 1993-94 to 6.65 per
cent in 2014-15 at all India level (365 days as reference period).

Hosiery Sector

Traditionally ‘Hosiery’ is knitted products used for covering of the legs and feet
i.e. stockings. But ‘hosiery’ is now used in wide and sense and covers all knitted
fabric such as, T-shirts, undergarments, knitted trousers, socks, stockings, etc. The
thickness knitted of

fabrics produced and weight is defined in terms of denier or opacity. Hosiery

garments are those garments that are made from knitted fabric. Tirupur and
Ludhiana are the leading knitted fabric and garments making clusters in India.
Some other important clusters of
Knitwear are Kanpur, Kolkata and Kota. In this study Tirupur, Ludhiana and
Kanpur clusters have been covered. In Tirupur cluster T-shirts, undergarments,
vests, trunks, knitted
pyjama, kids wear, ladies wear, etc. are made. Ludhiana is mainly producing
woolen knitwear, apart from other knitwear goods. In Kanpur mainly underwear,
vest and socks are mainly produced.

Tirupur
There are about 1500 knitting units, 2500 knitted garment making units, 700 dying
and bleaching units, 500 fabric printing units, 250 embroidery units, 300
compacting and calendering units and 500 other ancillary units in Tirupur.
Presently, most of the hosiery production activities in the cluster take place in non-
composite segment. The number of integrated units is very low as compared to
total number of units in Tirupur. In addition, within integrated units also there is
much heterogeneity in terms of operation, size and scale. For example, in some
units knitting, embroidery, stitching and printing are done, in other units only
knitting, stitching and embroidery are done. Further, in some units only knitting
and stitching are done. There are very few units where all the operation of the
value chain, from knitting to packaging of garment is undertaken. In Tirupur, more
than 90% of the knitting and knitted garment units are export oriented units. It
contributes to 80% of the country's cotton hosiery exports. During 2007-08 exports
from Tirupur amounted to Rs. 9950 crore which decelerated from Rs.11000 crore
in 2006-07. During 2008-09 (Apr-Sept) it is estimated at Rs.5050 crore.

The production of hosiery product, involve various processing stages. First, grey
yarn or dyed yarn is obtained from spinning mils for knitters. This knitted fabric is
sent for bleaching, dying and processing. Now this processed fabric goes for
calendaring and compacting (i.e. proper rolling). This fabric goes through cutting
and stitching. Now some
printing and/or embroidery work is done on this stitched fabric garment as per
demand. This finished product is packed and dispatched for sale to final consumer.
In Tirupur, most of the
knitting is done by circular knitting machine. The productivity of the machine
depends on the diameter of it. The production of knitted fabrics 24 hours on 30”
diameter circular knitting machine is 30-40 kg., on 40” diameter machine is 200-
250 kg., on 50” and 60”
Diameter machine is 1000 kg. These productivity indicators are for single-jersey
knitted fabric s and are likely to vary for double-jersey. The machines with 50” and
60” diameter run only for six months as there exists seasonality in demand of the
fabric knitted on these machines. Flat knitting machine is used for making of collar
of T-shirts. Knitting units knitting is done 24 hours in three shifts in almost all the
clusters. Fabric from the yarn wastage is very low at around 1% to produce knitted
fabrics. Knitting is very capital intensive and labour saving activity and knitting
machines cost is very high. The cost of
circular knitting machine is as high as Rs. 80 lakh. To save on labour, one worker
operating 3-5 machines simultaneously, which is not very quality affection, as one
worker can’t pay proper attention to 5 machines at the same time and result is so
supply of different colors goes unfed by the feeder (worker) at times, which affects
the quality. The poor quality of fabrics is discarded for mainly garment, at the time
of cutting. After dying, processing, calendaring and compacting of the fabric, it
goes to garment making unit/division. Most of the cutting operation is either
manual or semi-mechanized. Fully mechanized cutting is rare in Tirupur. After
cutting, stitching of fabric is done. Most of the stitching machines used
inTirupur are power driven. They use very modern stitching machines imported
from S. Korea, Taiwan, Japan, China, etc. One piece of garment goes through
different stitching processes, undertaken on various stitching machines for various
parts and applying accessories. The stitched clothes are then under checking
process. In some high value garments dying is done after stitching. In some other
garments printing and /or embroidery has to be done as per order. Once stitching
process is over, labeling, ironing and packaging are undertaken before dispatching
it to the buying/export houses.

In contrast to knitting units, garment units work 10-12 hours a day and runs only in
one shift. A worker with no work experience in the sector firstly has to work as a
helper. After a few
years of experience, he is then assigned the job of tailor or supervisory. The wages
differ according to type of work, skills and productivity. The piece rate wages is
mainly adopted practice for most of activities. The most of the manufacturers are
local people either from Tirupur or its adjoining areas. So they are not very large
firms or limited liability companies. Most of them are under either single
proprietorship or partnership. Most of the units do only job-work. In most of the
cases product specification and design is given by the buying houses/export houses
to value chain upstream (i.e. to knitting units, dying units, processing units,
compacting units, etc.) according to the product specification and quantity. Thus
very few units in Tirupur sell garments in their own brand name, rather they work
for major brands in clothing industry. All leading brands like Nike, Cutter & Buck,
Adidas, GAP, Tommy Hilfigure, Katzenberg, Van Heusen, Fila, Arrow etc., and
leading chain stores like C&A, Wal Mart, Target, Sears, C&A and Mothers Care,
H&M are sourcing from Tirupur. In fact one of the garment manufacturers in
Tirupur supplied T-Shirts to FIFA World Cup also.
The problem of power availability is one of glaring problem in Tripur also. Three
to four hours power cut is very common and often this is very erratic and
unscheduled. To overcome this problem, hosiery unit especially large and medium
sized units have gen-sets for uninterrupted power supply. But this increases their
cost of operations. Another problem is labor availability. Units reported that they
have in general 20-30% of labor supply shortage compared to their labor demand.
Due to this many units feel difficulty in expanding their scale of their operations.
Further, there is lack of proper infrastructure
e.g. water, roads, rail, drainage, residential facilities, etc. in Tirupur. In the last two
decades the capacity of the cluster has outgrown so much that infrastructure has
not been able to keep pace with it. The labour problem is associated with the
problem of accommodation and this explains the fact why despite the
unemployment in other regions. The region is unable to attract those workers. Lack
of training centre for workers is another problem. Next, after

Implementation of strict emission norms by Central Pollution Control Board

(CPCB) on dying units many dying units have closed as they are not able to
purchase and maintain
costly water treatment plant. This is affecting the value chain severely. To
overcome this problem many dying units are installing water treatment plants on a
shared basis.
Many units feel that zero percent emission will still not be possible and they may
again face this sort of problem in future, as they are not able to access such type of
technology which could make zero percent emission possible. CPCB officials also
are not helping them in this regard.
Ludhiana
This is most important cluster of woolen and acrylic knitwear in India. About 70%
of woolen garment exports from India are made from Ludhiana. It also uses cotton
and blended fiber to produce hosiery, knitwear and various readymade garments.
The knitwear products can be divided in two parts: winter-wear and summer wear.
Winter wear includes sweater, woolen socks, pullover, cardigans, thermal wear,
gloves, muffler, shawls, jackets, jersey, etc. Summer wear includes T-shirts, cotton
and blended socks, under garments, knitted bed sheet, knitted skirts, knitted top,
sports-wear and night suits, etc.
The cluster has about 275 small and medium process houses. Most of them are
traditional dying plants using hank dying. The number of package and fabric dying
units is very low. Although most of the process houses used local machines,
however around 25 units used
fully imported machines. Here the average hosiery unit size is much small as
compared to Tirupur. There are about 4000 circular knitting machines, out of
which 1500 are fully automatic, 500 are computerized flat machines, 120 are fully
fashion flat machines and about 60,000 flat knitting machines (hand flats).
It is found that a handful of spinning mills supply yarn to knitting units in this
cluster often through their agents. Apparently there is no shortage of yarn supply,
but the price of yarn is frequently raised. It happened that the yarn price is re-
negotiated during period between
Placing order and delivery of yarn. Imposition of anti-dumping on the import yarn
from Thailand aggravated the problem of escalating yarn prices. In order to
improve the quality of
product, production and productivity, modernization is essential. This prompted
knitting and garment units to install automatic and computerized knitting
machines. Majority of these machines are imported. Government of India has
introduced incentives for technology up gradation in the form of interest subsidy
through Technology up gradation Fund Scheme
(TUFS). These units largely benefited from this scheme. Second hand machines
with good technology are imported at half the prices of new ones. As managers of
the units interviewed there is not much difference in the productivity or product
quality of second hand machines in quit good as per response from managers.
Deficiency in availability of skilled workers is a major problem particularly in the
garment industry. Traditional manually operating skills are ineffective in modern
garment industry. Shortage of these skills is affecting production and productivity
of garment industry in particular. The strong presence of various associations is
helpful in this regard. The units do not face any hurdle in getting finances from
banks. The major problem is that of frequent increase in interest rates, upset. The
main complaint of SME units is that they are discriminated by the banks and are
charged much higher interest rates compared to larger units. Except a few, as in
case of Tirupur, most of the garment manufacturers are selling their products
without their own brand. The modernization has helped them achieving quality
standards as per specification. The SMEs are facing a major problem in dealing
with large buyers that is getting payment. Although by law they should be paid
within 45 day of delivery of products, but this law is not honored. The producers
cannot seek legal respite due to the fear of losing customers. Only in cases of long
pending payment, the complaints are lodged to their associations.
A manufacturer gets yarn on 7 days credit, but he has to sell the product to a buyer
on 45 days credit that often is extended. With increasing interest rates his cash flow
is severely squeezed and balance sheet gets upset. However, the price of yarn
frequently increases as per the arguments made by knitwear association. Many of
the problems faced are similar to Tirupur but magnitude differs. e.g. power supply
problem, inadequacy of infrastructure,

problem of labour availability and labour skill. There is need for improving testing
centre, design institute, and technical training institutes in Ludhiana cluster as well.

Kanpur
Kanpur is very old cluster of hosiery. But this cluster is not so well developed as
Tirupur and
Ludhiana. There are about 100 knitting, 270 stitching and 30 processing units in
Kanpur. The cluster in the past was mainly known for the production of vest and
underwear. But with the advancement of technique and development of
infrastructure, the industry has gradually expanded to other wears such as winter
inner garments with good bleaching & dyeing technique. Kanpur hosiery is now
known for their value for money - cheap and best products. Most of the hosiery
production presently takes place in non-composite small sized units. Most of the
small/tiny units are run by entrepreneurs themselves. Most of the units in Kanpur
also operate on job-work. They mainly cater to the domestic market. Here the grey
yarn is imported from other states through traders / brokers and non-availability of
yarn
locally is major constraints. The yarn price fluctuates heavily. The units have very
old conventional circular knitting machines like Sinker Body, Interlock Knitting
Machine and Rib knitting machines. The speed of the machine is very low. The
general housekeeping and maintenance of machine is not done properly. The unit
owners are not showing much interest in high speed knitting machines and
modernization. The bleaching system used is very old conventional type (Roller &
Pond type).Very few do bleaching on Winches and without scouring. As the
Central Pollution Control Board is not much strict, there is no problem of dying
(with regard to pollution control regulations) here.
Marketing techniques adopted by many hosiery units are rather conventional and
majority of the small/tiny units depend on middlemen. There is severe competition
and tiny and small units invariably try to adopt undercutting to get orders, which
benefits the trader. It is estimated that approximately 200 crores worth knitwear
products are manufactured in

Kanpur Hosiery cluster of which only 1 % is exported to Middle -East and Russia.
Some brands like Jet, Shilpa, Udget, and Gaylord etc. are manufactured in Kanpur.

Cost Structure in Hosiery sector

As pointed out earlier in a hosiery unit knitting and garment making are the two
most important operations as most of the other operations are given on jobwork to
respective specialized units. Moreover, often knitting and garment making
operation is also not integrated in one unit but done by separate units. Hence, here
separate analysis will be done for knitting and garment making operations.
Coming to cost structure it can be seen that per kg cost of knitted cotton fabric is
lowest in Kanpur at Rs.176.59 (to be revised) and the highest in Tirupur at
Rs.182.78 (to be revised). The average yarn cost at Rs 151.72 (to be revised) in
Tirupur also is the highest among the three clusters. Here the major reason for this
is that quality of the knitted fabric produced in Tirupur is much higher as compared
to other two clusters as most of the units located there are export oriented units.
But it is to be pointed out here that this is only average cost and it will vary for
different varieties of knitted fabric. It can be noted that wages per kg of fabric is
lower in Tirupur than in Ludhiana but higher than Kanpur. There is also much
variation in dying and processing cost. Besides, the units maintain a profit
margin/overhead, which varies from 10 to 25% across units (not across clusters).

Change in the Consumption of Various Items in Clothing Using

NSSO 2006-07 and 2014-15 data

The per capita fabric purchase was 18.62 square metres for India in 2014-15
compared to
13.27 square metres in 2006-07. Per capita fabric purchase increased at 3.12 per
cent annually. The per capita purchases for rural India increased from 13.06 per
square metres in
2006-07 to 17.67 square metres in 2014-15. For the urban India, it increased from
13.94

Square meters in 2005-06 to 21.44 square meters in 2014-15. For rural India, per
capita
purchase increased at 2.78 per cent annually, whereas it increased at 3.99 per cent
for urban India.
If we look to the share of various items with respect to expenditure on clothing,
five major
items in consumer basket are identified- ‘Sari’, ‘cloth for shirt, pyjama, salwar,
etc.’, ‘cloth
for coat, trousers, overcoat, etc.’, ‘hosiery articles, stockings, under-garments, etc.’,
and
‘Readymade garments’. The share of these five items together is remaining
constant at 77 Percent between 2005-06 and 2014-15. But there is significant
change within these 5 item-group. The share of sari, cloth for shirt, pyjama, salwar,
etc and cloth for coat, trousers, Overcoat, etc. has declined in 2004-05 compared to
the 1993-94. The fall in these three items could be explained by the increase in the
share of expenditure of hosiery articles, stockings, under-garments, etc and ready-
made garments. The share of hosiery articles, stockings, under-garments, etc has
increased by 34 per cent and the share of ready-made garments increased by 45 per
cent. So consumer preference is shifting towards ‘ready-made garments’ and
hosiery items.

Expenditure and Price Elasticity of Textile Items

Expenditure elasticity increases as we move from lowest income group to the next
income group, then it starts to decline. It peaks up again for the income group
Rs.40000-Rs.50000 and then declines substantially for the highest income group.
This means people are more responsive to the income changes. They spend higher
part of there income on textile & clothing items consumption. But as income
increases sufficiently, the priorities for consumers changes and they prefer to spend
major part of extra income on education and health care.Once the demand for these
additional items is also met, the further rise in income leads to improvement in
quality & quantity of the produces, which were of not that good quality at lower
income. This happens till a stage and then again elasticity decline.

The projections are not made on the basis of income group-wise elasticity due to
lack of Information available on growth in income among various income classes.
The estimates of elasticity derived by Bedi&Cororation, IFPRI (DP), 2016, are
used to project future demand elasticity. Scenario A has been projected on the
assumption that GDP is likely to grow by 8% per annum and relative prices of
cotton will grow is likely to increase by 10 percent. The aggregate domestic
consumption of fabrics is projected to increase from 43079 million square meters
during 2013-14 to 59228 million square meters by 2015-16 and then further to
81434 million square meters by 2017-18. There are remote chances of Scenario B,
considering global slowdown in the economy. The domestic consumption is
projected to grow by 8.28 per cent during both these periods.

3.1 RETAILING

The high average sales margins are due to most of the retailing concentrated in
traditional small and medium sized retail outlets. Direct sale by producers or
through their franchises is very limited. But over the years there is a gradual shift
toward modern retail outlets with single and/or multi brand outlets. But textiles and
garments retailing is still dominated by traditional retail outlets. During 2016, the
total consumption of fabric and garments (domestic and exports) is estimated at Rs
2813 billion, out of which spending on textiles and clothing items by the household
sector is estimated at Rs 1,556 billion and exports at Rs.561 billion. In 2016,
exports constituted 20 percent, household expenses 55 percent, and non-household
expenses 25 percent of the total consumption estimates. The estimates of total
production of fabric and garments are estimated at Rs.1294 billion. Usin g these
two sets of information, the margin add up to 117.35 per cent (113 per cent in case
import is also considered) mainly due to the long chain of wholesalers and retailers
involved from the production stage to the final consumer stage. So far FDI is not
completely allowed in Indian retail sector because of fear that the entry of foreign
companies into retailing would adversely affect existing business and thus
livelihood of millions of people engaged in it. Currently, India does not allow FDI
in multi-brand retail but permits up to 51 per cent FDI in

single brand retail and 100 per cent in cash-and-carry wholesale trading. Though
there is a ban on FDI in big multi-brand retail stores, there is no restriction on
companies accessing the foreign equity market through the American and global
depository receipts.

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
fibre (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 2013–February 2014.Cotton yarn
production increased by about 10 per cent during February 2014 and by
about 10 per cent during April 2013–February 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 2013–February 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 2013–February 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 2013–January 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).
3.2 Exports & Competitiveness

In the sphere of cotton yarn, woven and knitted fabric production, India is one of
the lowest cost producers. Cheap availability of raw material and low labour cost
are the major factors for low cost of production. Dying and processing segment of
the Indian textiles industry is not technologically well advanced due to restrictive
policy regime in the past. This is reflected in the relatively inferior quality of
domestically dyed & processed yarn and fabric. This has resulted in a
comparatively much larger share of grey yarn and fabric as compared to that of
dyed and finished yarn and fabric in Indian textiles exports. The mill sector is
competitive only in a few products, which are produced on large scale or require
large width. In case of woven fabrics decentralized power loom segment is the
most competitive. The cost of production is highest in handloom sector and thus
this sector is loosing its market share.
However, for a few varieties handloom sector is efficient and competitive
compared to other sectors. The cost of production in power loom sector is much
lower as compared to mill sector. This gets reflected in the wide gap in average
realization of price of fabrics produced in the two sectors. Garment sector is very
labor intensive in India, and thus labor cost assumes much significance in per piece
cost of garment production. India compares very favorably across the developing
countries in terms of low labor costs. Bangladesh, Pakistan and Vietnam are
however, countries having low laborcosts compared to India. However, empirical
evidence suggests that low wages are not always a factor of competitiveness
particularly in case of good quality designer garments. Quite often high wages are
paid to skilled laborers as remuneration for the high levels of skill and
productivity. The quality of fabric available to Indian garment producers is much
inferior compared to international standards due to poor dyeing quality. This leads
to dependence on imports for good quality fabric used in high value and designer
garments. This is a major gap in the garment value chain and affects our export
competitiveness both in terms of quality and price.The fabrics equivalent export is
projected at 11790 million square meters by 2011-12 and 15803 million square
meter by 2015-16.
Investments (Global)

The textiles sector has witnessed a spurt in investment during the last five
years. The industry (including dyed and printed) attracted foreign direct
investment (FDI) worth Rs 6,710.94crore (US$ 1.11 billion) during April
2000 to February 2014.
Some of the major investments in the Indian textiles industry are as
follows:
 Private Equity (PE) firm Ever stone plans to invest Rs 100 crore (US$ 16.62
million) for an undisclosed minority stake in the fashion label of designer
Ritu Kumar.
 Raymond’s ‘Complete Man’ plans to enter the developed markets in the US,
Europe and East Asia as the textile company seeks to expand the network of
its Made to Measure (MTM) stores. With plans to invest around Rs 200
crore (US$ 33.24 million), the company is looking for partners to help it
grow its overseas business.

 Arvind Ltd has picked up the 49 per cent stake held by the Murjani Group in
Calvin Klein in India. With this, Arvind and PVH Corp are expected to drive
Calvin Klein's business in the country.
 Suraaj Linens, India’s leading manufacturer of Home Textiles articles, has
launched a new line of modern home textiles that reflect trendsetting
patterns, fabrics and styles.
 American apparel-maker, Tommy Hilfiger plans to add 500 stores in India
over the next five years as part of their expansion spree. Currently, Tommy
 Hilfiger operates 58 franchise outlets and over 60 shop-in-shops in other
department stores.

Government Initiatives

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 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 2012–
13, the technical
Textile industry reached Rs.7.48 trillion (US$ 124.60 billion) at an annual
growth rate of 3.5 per cent.

3.3 POLICY IMPLICATIONS

Indian textiles and clothing industry is at the crossroads looking at the severity of
the slowdown in the world economy. This has more severely affected the export
oriented units than those dependent on domestic demand. This has forced major
business restructuring in the form of changes in the product-mix, efficiency
enhancements, cost-cutting exercises across the spectrum of value chain of the
industry to whether the situation. In these circumstances institutional policy
support is required to withstand the looming global crisis. The restructuring at the
unit level would be effective, if high value added quality chain is ensured. The role
of government in these circumstances should be to ensure the flow of investment in
crucial areas for the growth of the sector. The coordination among units needs to
be strengthened in order to develop unhindered growth of supply chain in value
added products. The various policy issues required to improve the efficiency of
Textile and Clothing industry in various areas are analyzed in detail below.

3.4 SUPPLY CHAIN MANAGEMENT

The Indian textile and clothing industries have one of the longest and
extremely fragmented supply chains in the world, with existence of
many intermediaries between the producer and the final consumer. Each
intermediary not only leads to lengthening of lead times, but also
adds to costs. By the time the product reaches the final consumer, price
of it increases Manifold. This has to be reduced if India has to become
competitive. Best supply chain.
 CHAPTER 4
COMPANY PROFILE
COMPANY PROFILE

SKNL is one of India’s leading textile and apparel companies with expertise in
multi-fiber manufacturing. The company has extended its presence in multiple
product categories from Fabrics to Apparels and Home Textiles.

Reid & Taylor India Limited(RTIL)

S. Kumars acquired rights for manufacturing and marketing the Reid & Taylor
worsted suiting in India in 1998.

Reid & Taylor is a premier brand in the Premiummen’s apparel category.Reid

&Taylor was born in Bangholme, Scotland over 170 years ago as a partnership
between weaver Joseph Reid &Financier Alexander Taylor, has withstood the test
of time with timeless style and classic designs.Reid & Taylor launched its Indian
chapter in 1998 by setting up a state-of-the-art plant at Mysore. It brought
international quality, customized for Indian conditions. Available in both; fabric
and ready to wear form Reid & Taylor today is accessible from over 11000 outlets
across India. It has been voted India’s Super-brand by consumers and is endorsed
by India’s biggest superstar, Mr. Amitabh Bachchan.
Commitment to quality

Reid & Taylor manufactures fabrics and suit lengths at its Mysore facility. Suit-
lengths in superfine qualities such as 120s, 100s superfine merino fleece and
superfine polyester, executive wear in 70s wool and polyester and other popular
blends. The composition, too, is more adventurous. Blends with combination of
linen with 10% polyester for the unruffled look, masterful lustrous creations in
silk,wool,polyester blends, for ceremonial wear is a 100% silk fabric.

Globally renowned for quality the brand has been the preferred choice of many
members of royalty and heads of state, apart from business persons and media
celebrities. It has been the provider of fabric to the world’s top ready to wear
brands. Another example of product innovation is the improved Reid & Taylor
daily fashion range. Virtually crease proof, with ease of maintenance as the driving
point, this range provides increased convenience and styles all day. Reid & Taylor
has been able to get some of the world’s leading fashion houses as clients – an
outstanding testimony to its policies of design and customization.

Reid & Taylor Apparel

Reid & Taylor Apparel was launched in line with the philosophy of offering total
wardrobe solutions. The ready to wear line encompasses suits, blazers, shirts,
trousers, chinos, T-Shirts, formal wear, informal business wear, casual wear and
evening wear. The entire range is available at all Reid & Taylor outlets across the
country. With a facility in Bangalore dedicated to Ready to wear led by expert
design and production professionals, Reid & Taylor ready to wear is setting
benchmarks in the category.

Timeline

1943:The S.Kumars Group was founded by Late Seth

ShriShankarlaljiSurajmaljiKasliwal and Late Sethani Smt.
ChandrawatijiShankarlaljiKasliwal .

28 September 1990: S Kumars was incorporated as a private limited company,

and became a Public Company with effect from 28 February 1991.
1997: SKNL has set up a texturizing and twisting plant at Dewas in Madhya
Pradesh. SKNL acquired a spinning-cum-weaving unit near Dewas (Madhya
Pradesh), from Standard Industries Limited.

1998: SKNL entered into collaboration with Reid & Taylor of Scotland for
manufacturing and marketing the Reid & Taylor worsted suiting in India.

October 2000:The name was changed to S. Kumars Nationwide Limited (SKNL).

2006: SKNL launched "Carmichael House", a complete range of home linen

products and accessories.SKNL launched "Belmonte", a youth menswear brand
that had both fabric and ready-to-wear garments under one label. It claims to be
India's only youth brand to offer "Total Wardrobe Solutions" - Fabric, Apparel and
accessories.

2007: the prestige clothing brand Stephens Brothers was licensed to SKNL in
India. It was launched in December 2007, to introduce the English cut & style to
Indian consumer. The brand is now owned by the UK Group Austin Reed.

2008: SKNL acquired assets of Legguinos.p.a. Italy, manufacturer and seller of

high value fine cotton shirting supplying to the topmost fashion houses of Europe
and U.S.A. This provides front-end back-end synergy for SKNL’s
BarucheSuperfine Cottons plant. Subsequently SKNL entered into a joint venture
Franchise Agreement with Louis Vuitton of N.Y. to manufacture / sell DKNY line
of men’s apparel.
2009: SKNL has acquired assets of Hartmarx Corporation, a well-known suits
manufacturing company in American and European markets.

4.1 VISION, MISSION AND VALUES

Says S Kumars managing director NitinKasliwal:"We needed a brand ambassador who

could'Indianise' the brand personality. Our singular brand promise, 'Bond with the Best', needed
an Indian persona, a figure who will appeal not only to theclasses, but also the masses. This, I
believe, is very important for a brand togrow and hence we decided that it is time to propel the
brand to a new vision, a new dimension. Hence, our natural choice was the legendary superstar
-Amitabh Bachchan. We had achieved our target of reaching out to 'India' with James Bond
superstar PierceBrosnan. Now, with Bachchan, we want to touch the real 'Bharat'
SaysBachchan. "It gives me great pleasure to be associated with one of the leading international
suiting brands in the world - Reid & Taylor. It is a privilege and honor to be considered
brand ambassador for Reid & Taylor and I sincerely hopethat I can contribute in my own way
to make Reid &Taylor's vision of reaching out to 'Bharat' a reality."

Positioning

Reid & Taylor has been uniquely positioned as ‘luxury suiting'. This redefinition of the category
was instrumental in differentiating it from the other 'premium' suiting then available.
This, coupled with the brand promise of 'Bond with the Best', ensured a distinct positioning,
remembered by customers. While retaining the understated elegance of the Scottish cloth, Reid
& Taylor designers created masterpieces that appealed to Indian sensibilities as well. Made by
skilled craftsmen and workers in Mysore, the fabric has the hallmark of superior cloth,
impeccable finish, fall and texture.

Marketing Strategy opted in India

Reid&Taylor had a dream opening. The strategy was accurate and the icon was non other than
Bond...James Bond. The brand was launched just before World cup 1999. The campaign was
executed in military like fashion. There was lot of firsts in their product launch. The
brand was the first one to use TV as the primary medium with Print playing thesecond fiddle.
The positioning was purely as a “Luxury Suiting”. The brand owners knew that the brand
launch should live up to the expectation of the Indian consumers roped in none other than
Pierce Brosnan as its brand ambassador. With the high profile launch and the charisma
of Bond worked wonders with the brand .The brand had second best recall during the worldcup
series.Later the consumer survey revealed that even thoughthe brand was aspirational,
customers perceived it to be expensive because of its international icon. This prompted the
company to look for an Indian icon.They did not have to search harder; the choice was our very
own Amitabh Bachchan. Big B fitted perfectly to the brand persona.

Products

SKNL businesses are divided into product-specific Strategic Business Units

(SBUs): Consumer Textiles, Home Textiles, Worsted Suiting, Ready to Wear and
High Value Fine Cotton (HVFC). Each of these SBUs is headed by an Executive
Director, Chief Executive Officer or a Chief Operating Officer. The corporate
activities related to finance, planning, research, publicity, marketing, human
resources etc. are centralized.
Consumer Textiles

The manufacturing facilities are located at Dewas. Substantial part of the production is
outsourced. The work wear polyester/ viscose fabrics are used by industries, hospitals, navy,
schools and offices. The company has a market share of 8% in the Blended Suiting business and
30% in the work wear and daily wear fabrics business of the organized sector. The company
offers a range of high quality budget blends of polyester and viscose in numerous designs.
Belmonte launched in 2006, is SKNL’s offering in the mid-premium segment. Most fabrics are
characterized with special attributes such as wrinkle-free and moisture-absorbent qualities
thereby enhancing their value.

Total Home Expression

Carmichael house is a brand that offers complete home textile solutions in a range of fabrics and
weaves. Carmichael house caters to the mid-premium segment of the home textile market in the
country. In addition to the company’s home textile manufacturing unit in Dewas, it is in the
process of developing another state of-the-art manufacturing unit at Jhagadia to cater to the rising
demand for premium and luxury branded home textiles. The industry is also characterized with
very few organized players. Establishing a strong presence at this juncture should assist SKNL to
achieve a dominant position in the market for organized home textiles.

Total Wardrobe Solutions (Ready to Wear)

Ready to wear garments include shirts, trousers, suits, casuals, ties, socks, for the men’s segment.
At present, SKNL has three brand offerings in the ready-to-wear garment industry. The brands in
this segment include Stephens Brothers in the super premium segment, Reid & Taylor in the
premium segment and Belmonte in the mid premium segment. SKNL is
focusing on and investing in this area as it has identified it as a high growth segment. The
company is also actively scouting for potential opportunities to add brands in the economy and
luxury segments. Branded readymade garments constitute around 10% of SKNL’s top line and
this contribution is expected to increase in the future owing to the forecasted growth in the
branded clothing market in India. In line with the growth in the industry, SKNL is constantly
expanding its distribution reach.

High Value Fine Cottons (HVFC)

The high value fine cottons segment is the newest venture undertaken by SKNL. This business is
characterized by high margins and has the potential to deliver strong returns. SKNL has
commissioned production in the weaving unit of the completely integrated (yarn to fabric) 12.75
million meters per annum manufacturing facility for the production of High Value Fine Cotton
fabric in Jhagadia, Gujarat. Full commercial production would start later in the year. This is one
of the most technologically advanced textile manufacturing units in the country. With this
facility, SKNL will be one of the few companies in India offering high value shirting fabrics.
Around 60-65% of the high value fabrics produced will be exported to foreign luxury brands.
Most of SKNL’s competitors in this segment are located in high wage countries, thereby giving
the company a natural advantage and an opportunity to supply high value fabric at a substantially
lower cost. There is also a backend-frontend synergy with Leggiuno whereby the design talent
and capabilities of Leggiuno will help the division and also division would get access to high end
brand catered to by Leggiuno.

Luxury Textiles

Reid & Taylor (India) Ltd. (RTIL), a subsidiary of SKNL, offers the Reid & Taylor brand in the
premium segment of the industry in India. In less than ten years after its introduction,
Reid & Taylor has been successful in capturing a healthy market share and is rated amongst top
two brands for premium clothing. Reid & Taylor has a diverse portfolio of products and also
offers total wardrobe solutions. The categories include high quality fabrics, over 500 designs of
premium ready-to-wear clothing, smart casuals and accessories. Stephens Brothers is a leading
international brand and is part of the Austin Reed group and is offered by RTIL in India.
Stephens Brothers is an English brand that offers a wide range of business attire that is designed
to perfection. The brand produces suits both for ladies and gentlemen with the finest pure wool
and pure linen fabrics. The luxury segment is a significant contributor towards the consolidated
revenues of the company.

Reid & Taylor Distribution

Reid & Taylor is opening a slew of exclusive brand stores, offering an international retail
experience to its consumers across India. With a mix of large and medium exclusive brand
stores, Brandhouse Retails is helping Reid & Taylor reach more consumers across the country.

Distribution Strategy

The company’s wide network reaches both domestic as well as overseas market. SKNL caters to
the entire socio-economic segments of the Indian market across 30,000 outlets through
300dealers.Today, SKNL is the largest institutional supplier in India in the organized sector.
Thecompany plans to establish high impact presence through multi-brand outlets, large format
chainstores and exclusive stores for all its brands.
 4.2 CURRENT BUSINESS OUTLOOK AND PLANS

Demand for textile and apparel industry in India continues to be sluggish on account of a
recessionary trend in the economy. ‘Belmonte’ in Consumer Textiles and ‘Reid & Taylor’ in
Luxury Textiles segment continue to remain key contributors to the overallperformance of the
Company. It is hoped that conditions may start improving in the rest of the year so that with
adequate workingcapital sourcing, your Company would be able to operate its plants at higher
capacities and with higher margins. Until maximumutilization of Company’s plants is reached,
there are no plans for capacity expansion in the coming year.
Key Strengths
 Extraordinary portfolio of domestic and international brands.
 Brands at all price points capturing all segments of the organized markets in India.
 Foreign brands have deep legacy and brand recall capturing mid to upper end of
the market.
 Ability to leverage our several brands to across several geographies.

Opportunity / Threats / Challenges

The Company continued to perform fairly satisfactorily in the face of global and domestic
economic uncertainty. Reid & Taylorand Belmonte brands continue to remain key contributors
to the overall performance of the Company.High raw material costs, slowdown in global as well
as domestic economy and competition from other countries in theneighbourhood could adversely
impact the profitability and the competitiveness. However, the Company’s operations are
resilientenough to withstand unfavourable conditions.

4.3 CORPORATE SOCIAL RESPONSIBILITY (CSR)

SKNL and its subsidiary Companies are committed to support CSR initiatives and
contribute towards the welfare and social uplift of thecommunity.
 4.4 EMPLOYEESSTOCK OPTION SCHEME (ESOP)
As the employees of the Company did not exercise the option under ESOP scheme,
the Company cancelled / withdrew546,060 nos of ESOPs granted under
Employees Stock Option Scheme. There were 365,760 nos. of options in force as
at 31st March, 2013.

4.5 HUMAN RESOURCE

Your Company recognizes that employees play a key role in making our business
successful and we achieve that through empoweringour employees. Your
Company maintained an environment dedicated to maintaining high employees’
sense of pride, morale andteamwork. The Human Resource Development activities
focused on multi-skills training and performance management workshops.The
functioning and activities were further aligned to Company’s business objectives.
The ongoing thrust on rationalization ofmanpower with focus on proper utilization
continued with implementation of Zero-base manpower budget.

4.6 CORPORATE GOVERNANCE

To comply with the conditions of Corporate Governance, pursuant to Clause 49 of
the Listing Agreement with the Stock Exchange, a separate section on
Management Discussion and Analysis and Corporate Governance together with a
certificate from a PracticingCompany Secretary confirming compliance is included
in the Annual Report.
4.7 MAJOR COMPETITORS

 MAYUR

 SIYARAM’S

 RAYMOND

 VIMAL

 GWALIOR

 MAFATLAL

 DINESH
4.8 FINANCIAL OVERVIEW
 4.9 GROWTH DRIVERS

 Reid & Taylor Scotland helps SKNL to access its clients – leading
international brands

 Strategic initiatives, modernization and capacity expansion to help capitalize

on favorable international environment.

 Building infrastructure to tap export opportunities in international markets.

 Leveraging strong brand equity.

 Focus on domestic high growth retail sector.

 Moving up the value chain to improve margins.

 CHAPTER 5
FINDING ANALYSIS
Q 1: Have you ever purchased Reid & Taylor fabric before?

a) Yes b) No

26%

No
Yes

74%

Interpretation: 74 % of the total respondents have purchased Reid & Taylor

product before. This hints you about the fact that Reid & Taylor is being used by
most of the respondents and the brand has achieved a good level of awareness
around this part of the country. The graph also hints you that the brand has been
doing well in the area of customer retention and should continue with its effort to
get more and more repeat orders.
Q 2: What would be your 3 major decision criteria for purchasing clothing?

a) Price b) Comfort c) Design d) Color e) Material f) Brand

g) Trend h) Other

Reid & Taylor

80

60

40

20

0
Price Design Brand Other

Price Comfort Design Color Brand Trend Other

Interpretation:We can see that comfort, design and brand are the major factors
influencing the buyer’s decision. People are ready to pay more for their desired
brand and design. They want the fabric to be comfortable and a brand like Reid
and Taylor cannot compromise on these factors. In other words, it is clear from the
response for this question that majority of Reid n Taylor customers expect high
value in terms of its comfort and design more than other factors.
Q 3: What would encourage you to try out new fashion / style?

a) Celebrities b) Friends c) Magazines d) Neighbors

e) Outdoor displays f) Internet

Celebrities Friends Magazines Neighbors Outdoors Internet

Interpretation: Through the survey,we could see that for fabrics and garments
from premium brands like Reid & Taylor,magazines plays the most important role
among all other factors. Friends also play an important role in buying behavior of
the respondents after Magazines. Surprisingly, influence of neighbors in buying
new fashion clothes is nil.
Q4: “Design is not satisfactory, but fabric is of fine quality and very comfortable
to wear “.Will you buy it??

a) I will b) Sometimes c) I cannot tell d) I will not

19

30

I will
7
sometimes
cannot tell
I will not

44

Interpretation: Interestingly, Majority of the respondents were not sure about

their response to the given situation. However, out of the remaining respondents,
many have opted “I will not buy” which clearly states that they are not ready to
compromise with the design of fabric. For the majority, they would like to first
scan the available varieties and choose those products that caught their eyes
before they finally make up their mind through touch and feel.
Q 5: What type of fabric design/pattern would you prefer?

a) Check b) Stripe c) Plain d) Other e) No

preference

Checker
StripeStriped
Plain
Other
No Preference

Interpretation
Majority of the respondents did not show any preference towards the pattern which
states that they select different patterns at different occasions. Or they are not very
particular about any specific design/pattern at the time of buying decision. Out of
the specified patterns, Striped was the most preferred one.
Q6: What is the major motive behind your purchase of fabric?

a) Social status b) Profession c) Keep up with Trend d) Other reason

Reid & Taylor

38
40
31
30
18
20
13
10

0
Social status Profession Trend Other

Interpretation:
Most of the respondents say they do buy premium fabric due to their social status
and professional requirement. A very few people are influenced by latest trend and
any other reasons. This graph is clearly hinting the company to decide on which
segment to be focused on and the best possible marketing strategies it could adopt.
Q7: Age group you belong to?

a) 20 – 29 b) 30 – 39 c) 40 – 49 d) 50 – 59 e) 60 or above 60

34
35 31
30
25
20
20
15 11
10
4
5
0
20-29 30-39 40-49 50-59 60 or above
60

Interpretation
Majority of the customers for premium suiting are within the age
range of 40 – 60.
 CHAPTER 6
CONCLUSION & RECOMMENDATION
6.1 CONCLUSION

In a country like India where every customer is price sensitive and wants more by
paying less, it is not easy for companies to satisfy end consumers or customers.
Therefore, in this highly competitive business environment, companies are forced
to come up with a lot of product varieties having a very competitive quality as
well.

SKumar’s, the makers of Reid & Taylor in India has succeeded to a good extend to
‘Indianise’ the brand and touched the real ‘bharat’ by appointing the legendary
superstar Amitabh Bachchan as its brand ambassador. The Reid & Taylor product
range starts from Rs.300 per metre until Rs.4, 900 permetre, thus appealing to a
wide socio-economic stratum. It is available across the length and breadth of the
country in more than 4000 outlets besides its exclusive outlets.

The survey based marketing research performed for Reid & Taylor India Ltd states
the following:

 Most of the customers and prospects belong to the age ranging from 40 to
60.

 Importance of fabric design is so important that most of the people were not
sure of buying suiting of unsatisfactory design.

 Professional etiquette is the major motive behind purchase of premium

suiting.

 We could see a sudden fall in the revenue growth of Reid & Taylor in 2012-
13.
6.2 SUGGESTIONS

 The Company has to do something seriously about Customer Retention.

 Focus more on marketing activities aiming at Professional/Managerial Class.

 Reid & Taylor has to definitely come up with innovative designs in its
suiting range.

 Company can try with promotions specially aimed at Professional

Institutions and various Organizations.
ANNEXURE :- I am a student of B.B.A. I have used this information
for my minor project. I promise that I will not share this information
anywhere else.
Questionnaire

Q 1: Have you ever purchased Reid & Taylor fabric before?

a) Yes b) No

Q 2: What would be your 3 major decision criteria for purchasing clothing?

a) Price b) Comfort c) Design d) Color e) Material f) Brand

g) Trend h) Other

Q 3: What would encourage you to try out new fashion / style?

a) Celebrities b) Friends c) Magazines d) Neighbors

e) Outdoor displays f) Internet

Q4: “Design is not satisfactory, but fabric is of fine quality and very comfortable
to wear “.Will you buy it??
a) I will b) Sometimes c) I cannot tell d) I will not

Q 5: What type of fabric design/pattern would you prefer?

a) Check b) Stripe c) Plain d) Other e) No

preference

Q6: What is the major motive behind your purchase of fabric?

a) Social status b) Profession c) Keep up with Trend d) Other reason

Q7: Age group you belong to?

a) 20 – 29 b) 30 – 39 c) 40 – 49 d) 50 – 59 e) 60 or above 60
BIBLIOGRAPHY

1. BOOKS:-

Kothari,C.R.,(20004),Research Methodology,2nd ed., New Age

International (P) limited

2. INTERNET:-
o www.reild&taylor.com
o www.wikipedia.com
o www.yahoosearch.com