A PROJECT REPORT

ON

ATTRITION STUDY OF RSWM KHARIGRAM

PROVIDED BY

RSWM (MAYUR SUITING’S) GULABPURA, BHILWARA

SUBMITTED TO: SUBMITTED BY:

Miss. NISHA GOYAL RAMNARESH

(Faculty)

SUBMITTED IN PARTIAL FULLFILLMENT OF

MASTERS IN BUSSINESS MANAGEMENT

SESSION-2009-11

Arya college of Engineering & Research Center,

Center, kukas

jaipur

1
 INDEX

S.NO. TOPICS PAGE NO.

1. 3
ACKNOWLEDGEMENT

PREFACE 4
2.

3. INDUSTRY PROFILE 5

23
4. COMPANY PROFILE

78
5. INTRODUCTION TO THE TOPIC

OBJECTIVE OF THE STUDY 91

6.

93
7. ANALYSIS PART

QUESTIONNAIRE 117
8.

FINDINGS 126
9.

10. CONCLUSION 127

11. REFERENCES 129

2
 ACKNOWLEDGEMENT

A project is like mission which can be successful only if all constituents working towards it
completion sincerity synergy and follow sound professional principles.

I consider my self lucky to have received very best of support from my guide
Mr.N.K.SRIVASTAVA and Mr.GOURAV BAKLIWAL; who not only helped me at every
step necessary for completion of this project but also an understanding of the industries
practical aspects at RSWM (Mayur’s). I take this opportunity to profusely thank him for his
excellent guidance and constant supervision without which completed of this project was
not possible.

(RANARESH)

3
 PREFACE

MBA Program includes summer training with industrial house after completion of fourth
semester. The purpose of such training is to understand practical aspects of corporate
functioning through industry interface. It helps in developing approach towards integration
of theoretical knowledge with the actual situation one comes across in job situation or
entrepreneurial venture.
This practical training gives better insight of corporate culture in the industry. This also
helps hone skill to take-up the task of problem solving and decision-making through a
matured and innovative approach, which is surely beyond the ambit of pure academics.

It is a matter of great privilege for me to have got an opportunity to have this summer
training with the RSWM KHARIGRAM, does not need introduction, it RSWM is one of the
largest manufacturers of world class blended suiting and shirting.

I was assigned the project to carry out “ANALYSIS OF 2009-11 ATTRITION STUDY” in
the organization. It is basically finding the difference and analysis in different component of
employee’s attrition of last two year

4
 Industry Profile

 Current Status

 Strengths

 Weakness

 Opportunities

 Threats

Textile Industry in India

Current Status

The textile industry holds significant status in the India. Textile industry provides one of the
most fundamental necessities of the people. It is an independent industry, from the basic
requirement of raw materials to the final products, with huge value-addition at every stage
of processing.

Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in
demand with its ethnic, earthly colored and many textures. The textile sector accounts

5
about 30% in the total export. This conveys that it holds potential if one is ready to
innovate.
The textile industry is the largest industry in terms of employment economy, expected to
generate 12 million new jobs by 2010. It generates massive potential for employment in
the sectors from agricultural to industrial. Employment opportunities are created when
cotton is cultivated. It does not need any exclusive Government support even at present to
go further. Only thing needed is to give some directions to organize people to get enough
share of the profit to spearhead development.

Segments

Textile industry is constituted of the following segments

 Readymade Garments

 Cotton Textiles including Handlooms (Mill made /Powerloom/ Handloom)

 Man-made Textiles

 Silk Textiles

 Woolen Textiles

 Handicrafts including Carpets

 Coir

 Jute

6
The cottage industry with handlooms, with the cheapest of threads, produces average
dress material, which costs only about 200 INR featuring fine floral and other patterns. It is
not necessary to add any design to it.

The women of the house spin the thread, and weave apiece in about a week.
It is an established fact that small and irregular apparel production can be profitable by
providing affordable casual wear and leisure garments varieties.

Now, one may ask, where from the economy and the large profit comes in if the lowest
end of the chain does not get paid with minimum per day labour charge. It is an irony of
course. What people at the upper stratum of the chain do is, to apply this fabric into a
design with some imagination and earn in millions. The straight 6 yards simple sari, drape
in with a blouse with embroideries and bead work, then it becomes a designer’s ensemble.
For an average person, it can be a slant cut while giving it a shape, which can double the
profit. Maybe, the 30 % credit that the industry is taking for its contribution to Indian
economy may be as good as 60 % this way. Though it is an industry, it has to innovate to
prosper. It has all the ingredients to go ahead.

Current Scenario

Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the
US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada,
Bangladesh and Japan. The name of these countries with their background can give
thousands of insights to a thinking mind. The slant cut that will be producing a readymade
garment will sell at a price of 600 Indian rupees, making the value addition to be profitable
by 300 %.

Currently, because of the lifting up of the import restrictions of the multi-fiber arrangement
(MFA) since 1st January 2005 under the World Trade Organization (WTO) Agreement on

7
Textiles and Clothing, the market has become competitive; on closer look however, it
sounds an opportunity because better material will be possible with the traditional inputs
so far available with the Indian market.

At present, the textile industry is undergoing a substantial re-orientation towards other then
clothing segments of textile sector, which is commonly called as technical textiles. It is
moving vertically with an average growing rate of nearly two times of textiles for clothing
applications and now account for more than half of the total textile output. The processes
in making technical textiles require costly machinery and skilled workers.

The application that comes under technical textiles is filtration, bed sheets and abrasive
materials, healthcare upholstery and furniture, blood-absorbing materials and thermal
protection, adhesive tape,
seatbelts, and other specialized application and products.

Strengths

 India enjoys benefit of having plentiful resources of raw materials. It is one of

the largest producers of cotton yarn around the globe, and also there are good
resources of fibers like polyester, silk, viscose etc.
 There is wide range of cotton fiber available, and has a rapidly developing
synthetic fiber industry.
 India has great competitiveness in spinning sector and has presence in almost
all processes of the value chain.
 Availability of highly trained manpower in both, management and technical. The
country has a huge advantage due to lower wage rates.
 Because of low labor rates the manufacturing cost in textile automatically
comes down to very reasonable rates.
 The installed capacity of spindles in India contributes for 24% share of the
world, and it is one of the biggest exporters of yarns in the global market.

8
 Having modern functions and favorable fiscal policies, it accounts about 25% of
the world trade in cotton yarn.
 The apparel industry is largest foreign exchange earning sector, contributing
12% of the country’s total exports.
 The garment industry is very diverse in size, manufacturing facility, type of
apparel produced, quantity and quality of output, cost, requirement for fabric
etc. It comprises suppliers of ready-made garments for both, domestic or
exports markets.

Weakness

Massive Fragmentation:

A major loophole in Indian textile industry is its huge fragmentation in industry structure,
which is led by small-scale companies. Despite the government policies, which made this
deformation, have been gradually removed now, but their impact will be seen for some
time more. Since most of the companies are small in size, the examples of industry
leadership are very few, which can be inspirational model for the rest of the industry.

The industry veterans portrays the present productivity of factories at half to as low as one-
third of levels, which might be attained. In many cases, smaller companies do not have the
fiscal resources to enhance technology or invest companies do not have the fiscal
resources to enhance technology or invest in the high-end engineering of processes. The
skilled labor is cheap in absolute terms; however, small companies lose most of this
benefit. The uneven supply base also leads barriers in attaining integration between the
links in supply chain. This issue creates uncontrollable, unreliable and
inconsistent performance.

9
Political and Government Diversity:

The reservation of production for very small companies that was imposed with an intention
to help out small-scale companies across the country, led substantial fragmentation that
distorted the competitiveness of industry. However, most of the sectors now have been de-
reserved, and major entrepreneurs and corporate are putting-in huge amount of money in
establishing big facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the
Government has gradually eliminated these restrictions, by bringing down import duties on
capital equipment, offering foreign investors to set up manufacturing facilities in India. In
recent years, India has provided a global manufacturing platform to other multi-national
companies that manufactures other than textile products; it can certainly provide a base for
textiles and apparel companies.

Despite some motivating step taken by the government, other problems still sustains like
various taxes and excise imbalances due to diversified into 35 states and Union
Territories. However, an outline of VAT is being implemented in place of all other tax
diversifications, which will clear these imbalances once it is imposed fully.

Labour Laws:

In India, labour laws are still found to be relatively unfavorable to the trades, with
companies having not more than ideal model to follow a ‘hire and fire’ policy. Even the
companies have often broken their business down into small units to avoid any trouble
created by labour unionization.

In past few years, there has been movement gradually towards reforming labour laws, and
it is anticipated that this movement will uphold the environment more favorable.

10
Distant Geographic Location:

There are some high-level disadvantages for India due to its geographic location. For the
foreign companies, it has a global logistics disadvantage due the shipping cost is higher
and also takes much more time comparing to some other manufacturing countries like
Mexico, Turkey, China etc… The inbound freight traffic has been also low, which affects
cost of shipping - though, movement of containers are not at reasonable costs.

Lack of trade memberships:

India is serious lacking in trade pact memberships, which leads to restricted access to the
other major markets. This issue made others to impose quota and duty, which put scissors
on the sourcing quantities from India.

Opportunities

It is anticipated that India’s textile industry is likely to do much better. Since the
consumption of domestic fiber is low, the growth in domestic consumption in tandem is
anticipated with GDP of 6 to 8 % and this would support the growth of the local textile
market at about 6 to 7 % a year.

India can also grab opportunities in the export market. The industry has the potential of
attaining $34bn export earnings by the year 2010.
The regulatory polices is helping out to enhance infrastructures of apparel parks,
Specialized textile parks, EPZs and EOUs.

The Government support has ensured fast consumption of clothing as well as of fiber. A
single rate will now be prevalent throughout the country. The Indian manufacturers and
suppliers are improving design skills, which include different fabrics according to different
markets. Indian fashion industry and fashion designers are marking their name at

11
international platform. Indian silk industry that is known for its fine and exclusive brocades,
is also adding massive strength to the textile industry. The industry is being modernized
via an exclusive scheme, which has set aside $5bn for investment in improvisation of
machinery. International brands, such as Levis, Wal-Mart, JC Penny, Gap, Marks &
Spencer and other industry giants are sourcing more and more fabrics and garments from
India. Alone Wal-Mart had purchased products worth $200mn last year and plans to
increase buying up to $3bn in the coming year. The clothing giant from Europe, GAP is
also sourcing from India.

Anticipation

As a result of various initiatives taken by the government, there has been new investment
of Rs.50,000 crore in the textile industry in the last five years. Nine textile majors invested
Rs.2,600 crore and plan to invest another Rs.6,400 crore. Further, India's cotton
production increased by 57% over the last five years; and 3 million additional spindles and
30,000 shuttle-less looms were installed. Forecast till 2010 for textiles by the government
along with the industry and Export Promotion Councils is to attain double the GDP, and the
export is likely attain $85bn. The industry is anticipated to generate 12mn new jobs in
various sectors.

How to uphold textile Industry

Weak infrastructure may be a hindrance, which can be overcome with better network and
with the willingness to share profit by loyalty bottom up and patronization from above
downwards.

 By putting more retail outlets,

12
 With better value added products,

 By taking the lowest end of the chain into confidence and building their
capability to innovate more and more.

 By upholding the market knowledge at every level that happens at higher-end

that lifts the chain.

 By building on the expertise for technical textiles that include bed sheets;
filtration and abrasive

 Materials; furniture and healthcare upholstery; thermal protection and blood-

absorbing materials; seatbelts; adhesive tape, etc which need skilled workers
who are not easy to find in an Indian mark

 By keeping a regular research and development department with regards to the

industry.

 By building up the peripheral market with regular update of new accessories.

 By integrating the disorganized sectors into one segment that is functionally

independent of each other’s unwanted stranglehold

 By putting affiliated efforts into the sector

 By creating a state owned cargo-shipping mechanism: with rationalizing fiscal

duties; upgrading

13
  Technology through the Technology Up-gradation Fund Scheme (TUFS);

 By setting up of Apparel Parks

 By clearing off bottlenecks in the form of regulatory practices

 By replacing the indirect taxes with a single nationwide VAT

 With liberalization of contract norms for textile and garments units

 By controlling export of raw materials

 By curtailing the drawback claims falsely boosted invoice value of exports

 By effectively installing a price discovery mechanism to track market trend to

take effective measures before hand a slump

How to promote textile exports

 For promotion of exports the measures, which should be taken up,

 Up gradation of textiles sector

 Policy level decision to achieve export target

 Woven segment of readymade garment sector and knitwear have been de-
reserved

14
 Technology Up-gradation Fund Scheme to be pursued till next five years

 Liberalization of FDI Policy with up to 100 per cent foreign equity participation
 Import of capital goods at 5% concession rate of duty with appropriate export
obligation under

 Export Promotion Capital Goods (EPCG) Scheme and clearly laid out EXIM
policy

 Advance Licensing Scheme with standard input-output norms

 Prescribed Duty Exemption Pass Book (DEPB) Scheme credit rates

 Duty Drawback Scheme wherein the exporters are allowed refund of the excise
and import duty

 Loss on raw materials

 Construction of Apparel International Mart by Apparel Export Promotion Council

to provide a world

 Class facility to the apparel exporters to exhibit products and built international
reputation

 Setting up of quality checking laboratories

 Apparel Park for Exports Scheme to invite international production units along
with in-house production floors.

15
 Introduction to the Indian Textile World

The textile industry occupies a unique position in the Indian economy as it

contributes significantly to the industrial production, employment generation and
foreign exchange earnings.

The Indian textile industry is extremely complex and varied with hand - spun and
hand - woven sector at one of the spectrum and the capital – intensive sophisticated
mill sector at the other, with the decentralized power loom and knitting sectors
coming in between.

This industry uses natural fibers - cotton, jute, silk and wool, as well as synthetic /
man – made fibers - polyester, viscose, nylon, acrylic and their multiple blends.

The complex and varied structure of the industry coupled with its close linkage
with our ancient culture and tradition provides it with the unique capacity to
produce, with the help of latest technological inputs and designs capability, a wide
variety of products suitable to the varying consumer tastes and preferences, both
within the country and overseas.

The textile industry has shown remarkable resilience and grown considerably in
terms of installed spindle age, yarn production and output of fabrics and garments.

It is the only industry, which is self – reliant and complete in value chain i. e . from
raw material to the highest value added products - garments / made - ups.

Therefore the growth and development of this industry has a significant bearing on
the overall development of the Indian economy.

16
Year 2005 (An opportunity knocking at our Door) "Garment Export a rocket
propellant for employment generation." The scope of improvement that can be
made on the employment front with in a very short span of time with minimum
investment, only if the Government of India places it as per priority industry like
some of our neighboring countries have. Thus Garment Manufacturing and Export
industry that is the real engine of growth for the whole textiles sector in India.
With substantial and development of this sector, there is much scope for the
growth of Indian textiles for exports.

With promise of greater globalization and liberalization, Indian textile industry seems
to be looking ahead with both challenges and innovations, to have close look at
how the major structural changes in world economy will affect the prospects of
Indian textiles Industry.

In light of this, a review of Indian textile scenario in particular and the world
situation in general will help all sectors of Indian Textile industry to re - organize
themselves to face new challenges both known and unknown that may come in
future. Thus we find many scopes in the development of Indian Textile Industry.

INDIAN TEXTILES INDUSTRY

17
Textiles account for 14 percent of India’s industrial production and around 50 per
cent of its export earnings. From growing its own raw material (cotton, jute, silk and wool)
to providing value added products to consumers (fabrics and garments), the textile
industry covers a wide range of economic activities, including employment generation in
both organized and unorganized sectors. Indian fabric is in demand with its ethnic, earthly
colored many textures. This conveys that it holds potential if one is ready to innovate.

The textile industry is the largest industry in terms of employment economy,

expected ‘to generate 12 million new jobs by 2010. It generates massive potential for
employment in the sectors from agricultural to Industrial. Employment opportunities are
created when cotton is cultivated. It does not need any exclusive Government support
even at present to go further. Only thing needed is to give some directions to organize
people to get enough share of the profit to spearhead development.

Segments

Textile industry is constituted of the following segments

• Readymade Garments

• Cotton Textiles including Handlooms (Mill made / Power loom/ Handloom)

• Man-made Textiles

• Silk Textiles

18
• Woolens Textiles

• Handicrafts including Carpets

• Coir

• Jute

Some Highlights: -

• Manmade fibers account for around 40 per cent share in cotton dominates
Indian textile industry. India accounts for 15% of world’s total cotton crop production
and records largest producer of silk.

• It is the second largest employer after the agriculture sector in both rural

And urban areas. India has a large pool of skilled low-cost textile workers,

experienced in technology skills.

• Almost all sectors of the textile industry have shown significant

achievements. The sector has shown a 3.66 per cent CAGR over the last five years.

• India’s cotton textile industry has a high export potential. Cost

competitiveness is driving the penetration of Indian basic yarns and grey fabrics in
international commodity markets. Small and flexible batches of apparels can be
manufactured in India and can provide a larger variety of casual wears and leisure
garments at significantly lower costs.

19
• Besides natural fibers such as cotton, jute and silk, synthetic raw material
products

such as polyester staple fiber, polyester filament yarn, acrylic fiber and viscose fiber are

produced in India.

Current Scenario

Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the
US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada,
Bangladesh and Japan. The name of these countries with their background can give
thousands of insights to a thinking mind. The slant cut that will be producing a readymade
garment will sell at a price of 600 Indian rupees, making the value addition to be profitable
by 300 %.

Currently, because of the lifting up of the import restrictions of the multi-fiber arrangement
(MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on
Textiles and Clothing, the market has become competitive; on closer look however, it
sounds an opportunity because better material will be possible with the traditional inputs
so far available with the Indian market.

20
At present, the textile industry is undergoing a substantial re-orientation towards other then
clothing segments of textile sector, which is commonly called as technical textiles. It is
moving vertically with an average growing rate of nearly two times of textiles for clothing
applications and now account for more than half of the total textile output. The processes
in making technical textiles require costly machinery and skilled workers.

The application that comes under technical textiles are filtration, bed sheets and abrasive
materials, healthcare upholstery and furniture, blood-absorbing materials and thermal
protection, adhesive tape, seatbelts, and other specialized application and products.

21
 Introduction to the Organization

Mission:

“With unique insight into consumer behavior, we strive to offer the best. Following
distinct business strategies, the company will continue its tradition of manufacturing
the finest products.”

Vision:

“RSWM envisages itself as a trend setter of the textile industry. It is committed to

introduce innovative products in the industry which will set new standards.”

22
 3
Board of Directors

Mr. L. N. Jhunjhunwala Mr. Ravi Jhunjhunwala Mr. Shekhar Agarwal

Chairman - Emeritus Chairman Vice Chairman
&
Managing Director

Mr. Riju Jhunjhunwala Mr. J. C. Laddha Mr. A.K. Churiwal

Joint Managing Director Executive Director Director

Mr. Kamal Gupta Mr. R.P. Khaitan Mr. D. N. Davar

Director Director Director

Mr Pradeep Dinodia
Director Mr. Sudip Bhattacharyya Mr. S. K. Srivastava
Nominee Director, Nominee Director, LIC
Exim Bank

23
 INTRODUCTION TO LNJ GROUP

LNJ Bhilwara group has emerged as one of India's leading corporate houses, in the
last four decades. The pursuit of leadership began in 1961, a journey that was initiated
by Mr. LAXMI NIVAS JHUNJHUNWALA (LNJ), whose vision and values continue to
drive the group even today.

The LNJ Group is a multi - product conglomerate with a global - presence, and
with business interests spanning a diverse range of industries... like Textiles, Power
-Generation, Graphite - Electrodes, Sponge - Iron, Information - Technology and IT -
Enabled services.

The Group has successfully integrated its operations into today's Global - Economy,
with export earnings compromising over 46% of total revenue with over 20,000
employees and 17 production units located strategically across the country.

The LNJB Group's leadership in the textile industry is exemplified in the equity that its
brands enjoy in the Indian market place.... like MAYUR Suiting, BSL Suiting, LA Italia
Fashions and Buddy Davis Leisurewear.

The LNJ Bhilwara Group, founded in 1961, has today grown into a strong global
presence worth Rs. 2049 crores. The Group has been nurtured into a successful
growth track by the able guidance of the Founder and Chairman - Emeritus, Mr. L.
N. Jhunjhunwala. Currently, the LNJ Bhilwara Group stands as one of the largest firms
on the corporate horizon in India with over 20,000 employees and 17 production
units positioned at strategic locations across the country. The Group’s export
earnings comprise of 46 % of the Group's turnover.

The LNJ Bhilwara Group is a well – diversified conglomerate. It has been actively seeking
growth and profitability by investing in a variety of systematically identified businesses

24
making it a multi – product conglomerate with interests in a range of industries such
as textiles, graphite electrodes, power generation, power engineering, consultancy
services, steel and IT enabled services.

The pioneering textile division of the Group is not only a key player in the industry
but also has many firsts to its credit. The textile division has the sole distinction of
producing a unique fire retardant yarn called Trevira CS (now known as Len zing,
Austria). It is also the sole licensee for the highly specialized yarn called Tencel. The
Group has time and again been acknowledged for its world – class quality products in the
domestic market such as Mayur Suiting, BSL Suiting, La Italia Fashions and Geoffrey
Hammond superfine suiting. At the same time, their services to several leading
global brands for knitted garments have been recognized with the units garnering top
export awards in different fields for several years in a row.

The LNJ Bhilwara Group also has the largest integrated graphite electrodes
manufacturing plant in South – east Asia with a reputed clientele comprising of major steel
plants in the world. Graphite exports constitute 70 % of total sales volume. An evidence
of their success can be seen in the fact that HEG, an integral part of the Group, is all
set to undertake a Rs. 450 crores expansion plan to tap opportunities in the export
market. The expansion of the Mandideep plant would double the capacity from 30,000
TPA to 60,000 TPA.

Following the success of its earlier hydro – electric power project of 15 MW at

Tawa Nagar (MP) in 1997, the Group has commissioned, India's first IPP Hydro –
electric Malana Power Project of 86 MW in a record time of 30 months at Kullu
(HP), in July, 2001 and is set to commence work on 200 MW Allain - Duhangan Hydro
Electric Project at Manali (HP).

Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS /
ISO 9001 : 2000 certification for setting exemplary standards in quality.

25
 Business Units of the Group

INTRODUCTION OF THE COMPANY

26
RSWM is a professionally managed, progressive and growth oriented company with
business interests in Yarn, Fabrics, Garments and Denim. It is one of the largest
producers and exporters of polyester viscose blended yarn in the country. The
company operates around 3,60,000 spindles and produces 1,00,000 MT of yarn per
year.

RSWM possesses strengths and expertise to deliver India’s largest quantities of

grey, dyed and mélange yarn, while specializing in technical fabric. It is equipped
with in - house fabric weaving and processing facilities, with an installed capacity of
12 million meters per annum. Modern technologies and world - class skills have
enabled the company to produce the finest quality adhering to stringent international
norms. The company has state – of – the – art garment unit for global customers
with a capacity to deliver 13,000 units daily.

RSWM’s leadership is exemplified in the equity that it enjoys in Indian as well as

international market. RSWM has acquired 50 % equity stake in SISA S. A. Spain that
will enhance its presence in higher value added international yarn market. An
expansion plan of Rs. 900 crores has been initiated by RSWM in order to expand
its horizons.

The LNJ Bhilwara Group has its origin in 1941 when the founder and Chairman
Emeritus, Mr. L. N. Jhunjhunwala (LNJ) was hardly 13 years old.

27
A company called General Merchandise Dealer Ltd., Calcutta (West Bengal) was
incorporated by his uncle for importing cosmetics. After graduation from School in
1945, Mr. LNJ was persuaded to join the family business and take major
responsibility in Indo Eastern Trading Company also set up by his uncle for export
of jute goods. This venture was a great success and by 1950 - 51, it became one
of the top 10 exporters of jute goods from India.

At the age of 31 years, in 1959, Mr. LNJ was given the license to put up a
medium sized textile mill at Bhilwara in Rajasthan at a cost of Rs. 6 million. This
venture, Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the first textile mill of
the LNJ Bhilwara Group in Rajasthan was a big success and continues to be the
flagship company of the Group.

In 1968 - 69, RSWM manufactured India’s first polyester viscose (PV) blended yarn
and this is where Mr. LNJ made his fortune. Having consolidated this business,
the group started diversification.

RSWM started with 12500 spindles and today working with 1,64,000 spindles
due to its dedication and quality consciousness. It has the most modern
spinning and weaving plants, considered as trendsetters and dominant in
technology, quality and product - mix in the Indian Textile industry.

The Spinning units are equipped with preparatory machines from Trutzschler,
Reiter, Vouk, Crosrol and Lakshmi Machines. The post - spinning machines have
been imported from Schlafhorst (Autoconers 238 & 338), two – for - one twister from
Volkmann, Leewha and Murata.

The group’s philosophy is not to compromise on technology or raw material. Thus

special fibers like flame retardant polyester from Hoechst (Germany), Tencel from
Acordis (U.K.), Flax from Belgium and Silk from China are imported to spin world –
class yarns. The units are also equipped with Fiber dyeing IITHP dyeing technology
from Dalal - Obermeir. Weaving Plants have Sulzer P7100 & P7200, projectile &
rapiers, apart from air jet & Sulzer and Toyoda weaving machines.

28
Its Denim and 46MW Captive Power Plants have commenced operation. As a
significant milestone of its expansion plan, RSWM International B. V. Holland is
incorporated as a 100 % subsidiary of the company. It has also announced the
acquisition of Cheslind Textile Ltd., a Bengaluru based textile unit.

In a culture, where the earth is referred to as Mother, caring for the environment is
ingrained. In caring for the earth we are committed to leaving our children and the
generations to come a clean, green earth. A promise that we live by and live up
to in everything we do.

At every step in the manufacturing process, we employ eco -friendly processes not
just to abide by laws but also to sustain and take forward the 'green' traditions that
form a rich part of our heritage. Effluent treatment is carried out using the latest
state – of – the - art technology. All the water used in fabric dyeing and finishing is
recycled for use in the process - house and in horticulture. We are continuously
greening all our plants, residential and other facilities, planting thousands of saplings
every year. Environmental care is executed with an eye for detail. The Banswara
unit has over 42,000 square metres of greens, with over 50,000 plants having been
planted on the campus and an exquisite 11 – acre orchard surrounding an artificial
lake. The Banswara unit was accorded the best plantation award in Rajasthan.

29
Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the leading Company of the
LNJ Bhilwara Group, is principally engaged in the manufacture of synthetic,
blended, mélange and specialty yarns and fabric.
RSWM is a premier company of the Group, with a turnover of Rs.1173.82 crore in
2007 - 2008. RSWM is exporting a complete range of yarn and fabric to over 70
countries worldwide, giving RSWM a markedly visible presence across the textile
world. The manufacturing capacity of the Company is upwards of Yarn per annum
from its five units - Gulabpura, Banswara, Mandpam, Rishabhdev and Ringas
located in Rajasthan. RSWM also manufactures of fabric per annum at its Mordi
(Banswara) unit. All the plants are equipped with state – of – the – art machines and
Captive Power Generation facilities. RSWM is the first composite textile mill in India
to be accorded the ISO Certification. The Company also enjoys a prestigious
‘Three Star Export House’ status and, over the years, has received several Export
Awards from SRTEPC.

The company’s leadership in the textile industry is exemplified in the equity that its
brand enjoys in the Indian market - place – “Mayur Suitings”

30
EMBED Word.Picture.8

RSWM is in the process of modernization drive and increase of spindles of its all
the manufacturing units. RSWM will soon introduce ready - to - wear Apparels. To
enhance its operating capacity, RSWM has acquired Jaipur Polyspin Ltd. for
manufacturing of Synthetic Blended Yarn.

31
 COMPANY PROFILE
Name of the Concern
Locations:
Regd. Office
Corporate Office
Works
Ringas, Distt - Sikar, Rajasthan.
Constitution
Date of Incorporation
Lines of Manufacture
Date of commencement of
Commercial Business
Rajasthan Spinning and Weaving Mills Limited.
Kharigram, P. O. – Gulabpura - 311021,
Distt. - Bhilwara, Rajasthan
Bhilwara Towers, A - 12, sector - 1, Noida-201301
(U.P.)
Kharigram, P. O. – Gulabpura - 301021,
Distt-Bhilwara, Rajasthan
Lodha, P. O. Banswara - 327001, Rajasthan.
Mordi, Banswara - 327001, Rajasthan.
Mandpam, Bhilwara - 311001, Rajasthan.
Rishabhdev - 33802, Distt - Udaipur, Rajasthan.
Bidadi, Bangalore, Karnataka.
Public Limited Company.
17 / 10 / 1960
Manufacturing of synthetic, blended, grey / dyed
yarn, cotton mélange yarn, cotton blended yarn
and fabric under the brand ‘Mayur’.
Also into Garment business and Now also Denim
Plant at Mordi Banswara Rajasthan.
1961
32
 Authorized Capital 6500 lacks

Issued, subscribed 6064 lacks

& paid up capital

BUSINESSES OF RSWM LTD:

RSWM is a leading manufacturer of synthetic and blended spun yarn and fabric. It
is one of the largest exporters of synthetic yarn from India and has a commanding
position in the domestic market. The company also has a presence in the cotton
yarn. Spinning, fabric, processing and garments manufacturing segments, Last year
was went to start production in its denim manufacturing plant in Mordi (in the
district of Banswara in Rajasthan), the Company is now present across all
segments in the textiles value chain. During the year under review, the gross
turnover of the Company increased by 10.25% to Rs. 1064.69 Crore in 2006 –
2007, from Rs. 1173.83 crore in 2007 - 2008. This performance was led by strong
performances in both domestic and export markets. RSWM exports its yarn and
fabric to over 70 countries in Europe, North, and South America, the Middle east,
Africa, South - east Asia and Australia. Chart (Under) shows the performance of the
Company in its key markets. Exports of the Company grew by 10.11 % to Rs.
532.58 corer in 2006-07 from Rs. 586.44 corer in 2007 - 08, while domestic sales
grew by 10.39 % during the year. (2006 - 07 Domestic Sales - 532.10, 2007-08
Domestic Sale - 587.39)

As a result, the share of export has increased and now accounts for over 50% of
RSWM’s revenues the – art process house at Mordi, Banswara and Rajasthan.

33
 Chart-a- Revenues in key markets

Domestic Sales (Rs. In corers)

Sales

590
580
570
560
550
Sales
540
530
520
510
500
2006-07 2007-08

Exports in Key Markets

34
 Sales

590
580
570
560
550
Sales
540
530
520
510
500
2006-07 2007-08

Yarn Business

35
RSWM offers one of the broadest ranges of products in terms of fiber blends,
counts and shades. Fiber processed by the Company includes polyester, viscose,
acrylic, cotton, wool, rayon, silk, polyamide, and linen. In addition, the Company
produces a range of specialty products made out of both unorthodox fiber, e. g.
Soya protein and bamboo, and branded fiber such as tencel and lycra. Many of
these yarns have functional qualities flame resistant, anti-bacterial, anti-static, odour
preventive and UV protective. These are niche products and the Company expects
their market size to increase in the future.

Yarn markets situation improved in 2007 - 08 compared to the 2006 - 07 and

RSWM was able to benefit from additional capacities, which became available
during this period, especially in grey yarn and Denim. On the cost side, due to
global hike in the prices of oil, furnace oil prices are a big cause of worry for the
industry.

RSWM was able to increase its production of yarn, thanks to the completion of its
modernization and expansion plan that started in 2004 - 05. Yarn sales grew by
6.44% to Rs. 229.07 crore in 2007 - 08 from Rs. 215.21 crore in 2006 - 07. The

36
current portfolio of RSWM can be categorized into three main categories – Gray
Yarn, Dyed Yarn and Mélange Yarn.

Grey Yarn

Grey yarn is produced using blends of different synthetic fiber such as polyester
and viscose, blends of synthetic and natural fiber and pure cotton at the Banswara
and Rishabhdev plants. Although grey yarn constitutes a relatively lower value -
added segment, vis-à - vis dyed and mélange, it is by far the largest in terms of
volume and is crucial to the product portfolio offered to customers.
During 2007 - 08, RSWM Ltd. added 24000 spindles of polyester cotton blended
yarn at its Kharigram unit. Manufacturing of 100% viscose yarn at the Rishabhdev
plant and open end rotors at the Banswara unit purchased levels 2006 - 07, also
achieved full production levels during the previous year. During the previous to
previous year, the Company had diversified into manufacturing 100% cotton yarn.
In 2007 - 08, spindles under 100% cotton yarn increased marginally to 44,000,
taking the total capacity of Gray yarn to 1,64,000 spindles.

Apart from the increase in production due to addition capacity developed during the
year, there were considerable increases in operating efficiencies, as a result of the
modernization of existing plant and machinery.

Dyed Yarn

37
Dyed yarn is produced at the Company's Gulabpura and Ringas plants. These are
relatively higher value added products and made according to customer
specifications of blend, counts and shades. With the amalgamation of Jaipur
Polyspin Limited (the Ringas plant), RSWM has a capacity of around 92,000
spindles for Dyed Synthetic yarn.

During the year, the thrust of the business was on developing new products with
better margins for a diverse set of the end - use segment which included knitting,
Furnishings, home textiles and carpets. Such sales represented approximately 6 %
of the total sales of dyed yarn, and are expected to grow in the future.

Mélange Yarn

Mélange yarn is a premium product made from cotton and its blends and is used
in manufacture of knitwear and hosiery. During the year, the Company had
increased its capacity of Dyed Mélange yarn, following which it has become one of
the largest manufacturers of mélange yarn in the country with 30,000 spindles.
While this segment is still quantitatively very small compared to the grey and dyed
yarn business of the Company, it commands the highest value added in RSWM's
overall yarn portfolio. During the year, Mélange yarn sales increased by 12.03%.

Maral Overseas Limited (MOL)

38
Maral Overseas Ltd., a part of the LNJ Bhilwara Group, a conglomerate with a
global presence. Maral is the country’s largest ‘Vertically Integrated’ knitwear
company located in the heart of India’s cotton producing region near Indore,
Madhya Pradesh.

Maral Overseas Ltd, one of India’s largest vertically integrated textile companies. This
export led company is a part of the $ 750 million LNJ Bhilwara Group, whose
leadership in textile business is complemented by high technology sectors of graphite
electrodes and power generation.

Set up in 1991 at Maral Sarovar, it is an $ 80 million (350 crore rupees) composite

company today. Its two ultra modern units produce 1500 tons of grey yarn, 125 tons
of dyed yarn, 400 tons of knitted fabric and 500,000 pieces of garments every month
even as they constantly innovate to diversify and upgrade their products.

It is a public limited company listed on the stock exchanges in India. Banking on its
core strengths, modern manufacturing technology, quality systems, quality
relationships, Maral has earned the reputation of an extremely reliable supplier in the
global market.

Its conviction in leadership through quality and best business practices enables Maral to
emerge as a reliable supplier of world-class products in the global market.

39
Its other units are located in Jammu and Noida (NCR - Delhi). Maral is India’s first
100% Export – Oriented – Unit to get the prestigious ISO certification. Maral has
been accorded a ‘Trading House’ status, and is an internationally preferred
manufacturer and supplier of Cotton Yarn, Knitted Fabrics, Knitwear and Sweaters.
Maral has been accredited by Marks & Spencer.

Maral produces 100% cotton combed yarn in different count ranges. Our focus is on
sourcing the best quality of raw material from India/abroad. A dedicated team for
cotton procurement frequently travels across India and abroad to assess the quality
before purchase.

We have a system of “on the spot passing” before we procure any cotton – be it in
India or abroad. The focus is on having a fine quality long staple fiber (29mm+) with
lowest possible contamination levels. We have also established strategic relations
with some of the farmer groups/ginners to provide us “contamination free cotton”.

HVI testing equipment has also been installed to test cotton. Every lot is religiously
tested before purchase.

In order to cater to our quality conscious customers, we have reached out to various
countries like Turkey, Greece, Brazil, USA, West Africa, Egypt etc to source a variety of
cotton including Organic, Fairtrade, Long Staple, Supima and contamination free cotton.

Bhilwara Melba De Witte Pvt. Ltd.

40
BMD Private Limited is a leading manufacturer of high performance specialized
furnishing fabrics for automotives, decorative furnishing fabrics for homes, contract
furnishing, flame retardant fabric & air texturised yarn

Bhilwara Melba De Witte Pvt. Ltd. (BMD) was established in 1998. It is a joint
venture of LNJ Bhilwara Group and De Witte Liter, a part of Gamma Holding of
Belgium, to manufacture high performance specialized furnishing fabrics.
BMD has its manufacturing plant at Banswara in Rajasthan. It has fully integrated
state – of – the – art facility for automotive textiles, which is equipped with Air –
texturing, yarn dyeing, warping, weaving, warp & circular knitting, processing and
lamination.

Products:

 Woven – Dobby
 Woven – Jacquard
 Woven – Knit

41
  Woven – Circular Knit
 Air Texturised Yarn

BSL Limited (BSL):

BSL Ltd. Established in 1971 at Bhilwara, Rajasthan. Today, BSL has emerged
as a strong global player producing over 12 million meters of fabric every
year. BSL is equipped with state – of – the - art technology. Right from raw
material sourcing to product finishing, meticulous attention is paid to detail at
every stage of production.

The emphasis is to achieve shorter lead times and greater efficiency by following
integrated yarn preparation, spinning, weaving and finishing processes.

Bhilwara Technical Textiles Ltd.

Bhilwara Technical Textiles Limited (BTTL) has been incorporated under the
provision of the Companies Act, 1956, pursuant to the Scheme of De-merger of
‘Strategic Investment Division’ of the “M/s. RSWM Ltd.”.

42
The main object of the Company is to carry on the business of manufacturers, producers,
dealers, importers, exporters, buyers, sellers and dealers in and as brokers, agents,
stockist, distributors and suppliers of all kinds of automotive and home furnishing fabrics,
made-ups, apparels and other products, goods, articles and things as are made from or
with cotton, nylon, silk, polyester, acrylic and other kinds of fiber etc.

Bhilwara Infotech Ltd.

"There is a difference between knowing the path and walking it."

At Bhilwara, we are committed to both… and more. Our experienced practitioners

walk the path and share their knowledge.This results in the perfect combination of
good business practices, knowledge of on ground realities and most important of all,
proven successes.

 Established in February 2000.

 Foundation laid for the IT group established for LNJ Bhilwara Group in
1995.

 ISO 9001:2000 Certified on September 5th 2002.

43
  Processes based on the guidelines of ISO 9001:2000 with CMM Level
5 Integration.

 Most employees are IBM/Sun/Microsoft Certified.

We provide a range of service for managing application implementations, their

maintenance and upkeep. In a nutshell, we ensure your applications are running 24
hours a day, 7 days a week.

The most critical layer that supports all the business applications of an organization is
its IT infrastructure. Downtimes and delays directly impact corporate productivity and
affect costs and revenues. With the increasing complexities and demands of
application software, managing IT infrastructure is also becoming increasingly
complex.

You can address these challenges and concerns by outsourcing the infrastructure
services and their management to a trusted partner who has a core competency in
this area and the experience of building, managing IT infrastructure for their
customers.

BIL’s team of dedicated, multi-skilled personnel takes care of your IT resources,

leaving you free to focus on your core Job function/ Business. While managing your
IT infrastructure, we help you optimize your IT resources through well-defined
processes and round the clock support. We address your infrastructure management
needs through best practices approach and quality with reasonable costs.

Infrastructure Management Services:-

BIL undertakes projects for IMS in one of the following modes:

Remote Infrastructure Management Services (RIMS) where the client

infrastructure is managed and monitored from one of our Network Operations Center
(NOC) located in India.

44
Facilities Management where the IT infrastructure is managed and monitored by our
consultants from the client’s location

Some of the IT Infrastructure Services that we provide include:

Network Management Element management of devices, capacity management, link

availability and utilization management, application response time analysis, System
administration, Hardware maintenance support, Operational support, Network
monitoring

Server Management Server Administration, performance proactive monitoring,

reporting and corrective action, management, data backup and recovery services
Patch administration, Capacity planning Hardware maintenance support

Help Desk Management User support, knowledge capturing and updates, complaint
management, hand holding, application support, customizable report

Desk Top Management Profile management, Software / Application deployment,

patch management, local trouble shooting, desktop administration, sharing, printer
configuration, drivers, and customization

Messaging & Application Administration Application management, document and

data uploading, application deployment / performance monitoring, access rights
administration and monitoring, exceptions reporting

Mail Management Services- Management of Mail Accounts, Mail Administration, MS

Exchange Monitoring

Information Security Management Firewall management, Antivirus & Intrusion

detection, management of content filtering and management, vulnerability scanning,
event co-relation and administration

Performance management Enterprise server performance bottleneck identification

and management server and database performance testing and analysis

45
Database administration and management: Database administration, Patch and
version management, Backup and recovery, Capacity planning, Database security,
Vendor interface, Replication administration

Other Professional Services

• High availability configuration and planning support

• Disaster recovery configuration and planning support

• Database migration planning, implementation and support

• SAN storage management support

• Enterprise backup and recovery planning and support

Implementation of enterprise management tools in the areas of:

Network Management Solutions by means of -

• Network Availability & Utilization analysis

• Network Performance Monitoring

• Network Capacity Management

• Application response time analysis

Information Security Solutions catering to -

• Management of Firewall, Anti-virus & Intrusion Detection

46
 • Management of content filtering & Web security

• Vulnerability Scanning

• Event co-relation and orchestration \

Our application management teams have expertise with eCommerce, eCRM,

Telecom, Mobile commerce, ERP, mainframe applications, application re-
engineering, application migration, application porting and application maintenance.
This expertise has been time tested and repeatedly proven in the field. Knowledge of
on ground realities has helped us become proactive, thus averting potentially loss
making situations and turning them into learning experiences for efficient IT
management.

eCommerce

We have experience with taking on an eCommerce project from day one, designing,
developing and finally implementing a flawless solution. We have also executed
project components that include consulting and quality management for eCommerce
solutions. Tapping our vast pool of management and application specific business
knowledge, we can Web enable an enterprise from internal processes and extending
the solution till it reaches the consumer, thereby making business easier and safer to
conduct.

Telecommunication

With the unparalleled growth of the Internet, the merging of conventional

communication channels with the Internet is inevitable. Recognizing this, we have in-
house capabilities to design, build and deploy eCommunication channels that
interface with standard communication infrastructure, such as smart phones and IP
telephony and unified messaging systems.

47
Mobile Commerce

Keeping pace with technology development, we can deploy solutions with mobile
components. These solutions include WAP phones, PDA's and other network aware
mobile devices. Mobile content generation, commerce enabling components, secure
transactions and small screen interfaces complete the list of skills we posses for
mobile commerce.

Enterprise Resource Planning (ERP)

Our experienced managers and analysts, with extensive domain specific experience,
analyse business process. We harness this information for business process re-
engineering, business to software process mapping, system design and development
and consulting. We understand the enormous task of changing business processes.
Facilitating the entire process is our Process Transition Team that helps with the
process changeover. This team is composed of HR experts who understand the
locale, experienced trainers and domain experts to assist with understanding the
intricacies of your business.

Online Customer Relationship Management Systems

Utilizing our business experience combined with real life project experience, we have
the required skills to successfully build and deploy eCRM applications, integrate
eCommerce extensions with the core CRM functionality and utilize data warehouse
and mining technologies to make the most of live and collected data. These tools
allow us to analyze trends and help customers make informed product and policy
decisions well ahead of their competitors.

Others

We have also effectively implemented projects on the IBM AS/400, re-engineered existing
applications, migrated applications from and to different operating systems and database
management systems and provided round the clock maintenance services for existing
application infrastructure. Quality management consulting too is a strength, which we have
utilized for customer application development and testing cycles.

48
Web technology practice

Recognizing the Web as a vital component in conducting business, our teams of

motivated Web designers, application specialists and technology practitioners have
gone ahead and implemented solutions using Microsoft® and Java technologies.
These solutions include frameworks for eCommerce, recruitment product
merchandising, enabled business interfaces and more.

Building applications for the Web involves more than just designing and
programming. An intimate knowledge of visitor behavior helps with designing user
friendly interfaces. Up to date knowledge of security concerns and leaks are used in
deploying highly secure and hacker proof solutions.

Our Resourcing Portal Engine is a product that combines the vast power of the World
Wide Web with the potential of a global audience. It allows a radical reduction of the
time traditionally spent on recruitment related tasks and their administration. With
features like a search engine, advice columns, online chat, discussion boards, the
Resourcing Portal Engine provides an efficient solution for the requirements of our
customers.

Softwares &produuct development services

At BIL, we are committed towards understanding our customers' requirements and

providing them with the best products and services. Our well-defined and flexible set
of processes ensures the high quality of our products and services. We work towards
modifying our processes to meet specific requirements of our customers. We use a
comprehensive quality management system to keep track of:

• Processes

• Deliverables

49
 • Quality of deliverables

• Process measurements

• Project performance metrics

• Customer satisfaction index

Enterprise solution Practice: Bhilwara InfoTech Ltd has expertise in design,

development and implementation of customized ERP solutions across small to mid-
sized to large Organizations. BIL’s expertise in business environment includes:

• Enterprise Resource Planning (ERP)

• Customer Relation Management (CRM)

• Supply Chain Management (SCM)

• Sales Force Automation (SFA)

• Business Process Management (BPM)/ WorkFlow (BPM)\

• Document Management Solutions (DMS)

Web Technology Practice: Bhilwara Infotech Ltd team of motivated Web Designers,
Application Specialists and technology practitioners have developed a wide range of
web-solutions for business across the globe. BIL provides entire gamut of web
development services from web design to development to deployment of application
on the Internet, which also includes:

50
• E-Commerce Portals

• Online Stores

• Web Programming & Web Enabled Services

• Intranets & Extranets

• Large Website Design & Development

Bhilwara Energy Ltd.

Bhilwara Energy is the flagship entity in the power sector business of the LNJ Bhilwara

Group. It is the principal holding company for all the power ventures.

Bhilwara Energy Limited will be focusing on diversification of The Group's portfolio in

the power Business, like Power Transmission, Power Distribution, Power Trading
and Power Generation from non hydro sources like wind and thermal and to further
consolidate its presence in Hydro power generation.

The company endeavors to develop or acquire new green field power projects in
states like Himachal Pradesh, Uttranchal, Sikkim, Madhya Pradesh, Chattisgarh &
Arunachal Pradesh.

BEL holds 51% equity stake in Malana Power Company Limited (Kullu), a joint venture
with S N Power, Norway.
Thereby, it holds 45.9% holding of A D Hydro Power Limited (Manali) indirectly, since

51
MPCL holds a 90% stake in ADHPL.

Bhilwara Scribe

Established in 2000 Bhilwara Scribe provides business process outsourcing

solutions and services with total commitment to understanding and
delivering customer requirements. A pioneer in the Healthcare BPO in
Central India, Bhilwara Scribe has its head office and production unit at
Bhopal and a second production unit at Bangalore. The company has also
recently acquired Benson Transcription Technologies Inc., a transcription
firm in the US.

Apart from its primary functions in the area of medical transcription,

Bhilwara Scribe provides other services like general transcription and data
conversion and data processing.

Bhilwara Scribe has made itself stand out in the BPO industry by providing
best round-the-clock and round-the-year services to the customers who
delight in the consistent delivery of quality and turnaround time in addition
to the guarantee of utmost confidentiality and adherence to the set
procedures.

Backed by a committed workforce, supported by the brand name of LNJ

Bhilwara, sustained by an on-going training, powered by high-tech
infrastructure, and led by a team of experienced managers, Bhilwara
Scribe has ensured not only the best, but consistently best, and still
improving services to its customers and in return made possible its own
success story.

52
Bhilwara Spinners Ltd.

Bhilwara Spinners Ltd. (Bhilspin), established in 1980, manufacturers Synthetic

Blended Grey and Dyed yarns at its manufacturing Unit at Bhilwara in Rajasthan.
Today, the company has 30,000 spindles to manufacture 12,000 MT per annum.
Bhilspin has been accorded “Export House" status and conferred "Niryat Shree” for
its export performance. Bhilspin also enjoys IS / ISO 9001 : 2000 certification.

Bhilwara Spinners Limited, is an integral part of the LNJ Bhilwara Group. The Group
is a multi-product conglomerate with a global presence and business interests
spanning diverse indstries like Textiles, Power Generation, Graphite Electrodes and
IT enabled services.

Bhilwara Spinners, based at Bhilwara (Rajasthan), manufacturer of cotton, synthetic

blended yarns of various counts and blends. The present capacity of the unit is
18,496 spindles.

Based on the requirement of the market, Bhilwara Spinners diversified their product
portfolio and now producing various value added product mix like Polyester / Acrylic, mod
acrylic flame retardant yarn, Sewing thread, Slub yarn, Viscose Carpet Yarn, Linen Yarn

53
etc. The unit is also manufacturing products suitable for other uses like upholstery,
tapestry, and industrial fabrics.
Products

The company is manufacturing synthetic blended yarn in raw white and the range includes
:

 100% Polyester, Viscose, Acrylic, Polyester/Viscose blended,

 Polyester/Acrylic blended
 Polyster/Viscose blended
 Polyester/Linen blended
 Viscose/Linen blended
 High Twist / Super High Twist
 Slub/ Spun yarn
 Blended with Texturised, Special Application yarns for Carpet, Sewing
Thread,
 Flame and Temperature Resistance yarn like Aramide, Modacrylic,
Homo Acrylic, Poly Sulphide yarn (PPA)

Fabric and Garments Business

The company manufacturing a range of blended suiting fabrics and has a

significant presence in the domestic market with its Mayur brand. Apart from this,
the segment includes a new garments unit in Bangalore and a fabric processing
plant in Mordi Banswara (Rajasthan).

Fabric

54
RSWM believe that there is a huge potential for this business in the new market
scenario and has plant to strategically move to the higher value added products in
Fabric. The company expects significant gains from this move and has plans to
further ramp - up the fabric manufacturing capacity. To give a quantum boost to
these initiatives, RSWM signed up with Salman Khan, one of the most popular
actor in the bollywood, as the brand ambassador for its Mayur range of Suitings
and shirting.

Garments

During the year, the company scaled ups the commercial production in its new
garments facility in Bangalore. The business has a strong order book position and
the company expects a healthy pay back from the Garment business in the future.

Denim

During the previous year, RSWM had

decided to enter in the Denim Fabric
manufacturing business, in line with its strategy to move to higher value added

55
segments for wider based growth in the future. With in the category, your company
plans to focus on producing high - end specialty Denim fabric, which has better
realization and demand in international market. The state – of – the art denim
manufacturing facility, will come up at its existing ovation in Mordi, and have a capacity
of 27 million meters per annum.

Thermal Power

RSWM”s manufacturing process relies on furnace oil based power Plans for their
energy requirements. High crude oil prices during the Last fees years have had an
adverse impact on the profitability of our Operation. Last year, company decided
adverse impact in thermal power plants to rope in this ever – increasing cost of
power. The 46 MW plant is being located in Banswara, Rajasthan. The plant will
provide captive power to its existing operations in Banswara, Bhilwara, Rishabdev,
Kharigram, Ringas, Mordi and also the proposed Denim projected in Mordi. The

existing furnace oil – based power plants will be kept as stand – by - facilities.

HEG LTD.

HEG Ltd., a premier company of the LNJ Bhilwara

Group, is India’s leading Graphite Electrodes
manufacturer and an established global player in the

56
sector. It is the single largest integrated Graphite Electrodes manufacturing facility in
South Asia South East Asia and the Middle East. HEG is also the only one of its
kind in the region to process the sophisticated UHP (Ultra High Power) Electrodes
with technology from SERS – a subsidiary of Pechinery, France.

Set up in 1977, HEG is a diversified company with interests in Graphite Electrodes and
Power. From a modest investment made in 1977, the company reported a turnover of Rs.
6500 million (US$140 million) in fiscal 2007. A Flagship of the LNJ Bhilwara Group, HEG
is Asia's leading graphite electrodes manufacturer and exporter. It is an ISO 9001 & ISO
14000 Certified Company, by M/s Bureau Veritas.
The company exports over 80% of its production to more than 25 countries of the world.

The position the company enjoys today in India and abroad is largely due to its
commitment to constant upgradation of its product quality to match international standards
and to meet new challenges to win and excel in all situations.

In the 1990's, we set our “Vision” to be : “ A vibrant globally acknowledged top league
player in Graphite Electrodes and allied businesses with commitment to growth,
innovation, quality and customer focus”.

In Graphite, our focus is on UHP grade electrodes, and we have expanded our product
range and established the same on some of the toughest furnaces of our customers.
Today, we have years of experience supplying quality UHP grade electrodes all over the
world.

The encouragement from our customers has led us to increase production capacity and
become a significant global producer of quality UHP grade electrodes for EAF application.
Our ability to source the best raw materials from sources worldwide and the skills of our
human resources has been the key to our growth.
With a recent Rs 4.5 billion ( US$ 120 million) investment, we have now expanded our
manufacturing capacity.

57
To maintain our competitiveness, we have set up a Captive Power Plant totaling more than
50 MW. Since growth has always been a priority, we are also into the manufacturing of
steel billets in our facility in Durg – Chattisgarh.

As a responsible graphite electrode manufacturer, we continue to invest in technology,

development of new products and in our human resources.

Social Initiatives

Over the last 47 years, RSWM has taken a number of initiatives in education,
healthcare and community development. The company has established and
Promoted a number of school and training centers, including facilities for the
Physically disadvantage near its manufacturing plants. It also runs “MAYUR
HELPLINE” a 24 hour free ambulance service for trauma victims. The company
stated an initiative to create awareness in nearby village about the Activities of the
company and providing employment to local people. In Kharigram, a blood donation
camp was organized; where 77 units of blood were Donated by employees of unit.

Our initiatives in the field of social responsibility have largely been in the area of education,
public health and local infrastructure development. Drinking water, basic sanitation, roads
and primary healthcare centres are only a few of the facilities that the Group has provided
over the years. As an equal opportunity employer, we have encouraged the employment of
the local populace in our projects, and at our plants. LNJ Bhilwara has actively facilitated
and participated in all local cultural and religious functions which have become bonding
points for the community. The Group has fostered development, both independently and in
partnership with local governments and non governmental development agencies.

Ecological Preservation

58
Our dedication to ecological preservation and development does not stop at official
certifications like EMS-14001 compliance alone. Intensive plantation drives, regular waste
management programmes and implementation of the Kyoto Protocol are just some of the
measures that are regularly undertaken. Green Tech safety award and other such
acknowledgements are our proof of our efforts in this direction.

Human Resource

HR has been of primary interest, with an emphasis on self-evaluation, role definition

and corporate philosophies like Kaizen being implemented. Regular performance
appraisals based on a balanced score card system identify areas of improvement.
Employee health, whether physical, mental or spiritual is of great importance. Our
plants foster a tightly-knit, family-oriented culture which rests on the best possible
physical infrastructure with fully integrated, self sufficient residential complexes
complete with social clubs, educational, medical and sports facilities.

Projects

BEL has notched a significant presence in the power sector of India with its two
momentous projects UBDC and the Arunachal Project. The company has
successfully set up its bases by creating an amicable relationship with the local
population and initiating developments. Relying on its highly-competent technical and
managerial teams, BEL aspires to become the most trusted name through out the
country.

The credibility of the LNJ Bhilwara Group has enabled the company to successfully

59
enter into agreements with state governments for the implementation of its projects. It
accelerates the development of the locality as we contribute to various activities of
social welfare. The project sites also get better connectivity. BEL’s strong presence
has ensured its growth through its innovative strategies serving the power sector. The
Group’s increased local presence will facilitate the development of the country and
will create better relationships with the local population, vital to sustaining growth
levels. BEL is committed to expanding its presence and activity in the power sector.

Manikya Lal Verma Textile and Engineering College

Originally, MLVTEC was a polytechnic college as the joint venture of the government
of Rajasthan and the Bhilwara group of industries (now known as LNJ Bhilwara
group). It was upgraded to a full engineering institute in 1988. The goal was
"Dissemination of quality technical education in emerging disciplines aimed at
producing skilled man power suiting to the ever changing needs of the world of work
in the wake of industrial globalization and modernization, sustaining Indian ethical &
moral values."

In 1994, the college added the Textile Chemistry discipline. Currently, the institute is
producing 200 textile engineers per class year.

In 2001, the college added an engineering degree in Information Technology. The

college also added an Electronics and Communication Engineering degree in 2003.
The expansion in IT-related fields was due to added focus on these subject areas
from the government. Additionally, expansion allowed the physical resources of the
college to be better utilized.

Further continuing the expansion mode two new Engineering Degrees, Textile
Engineering in 2006 and Mechanical Engineering in 2007 were added by the college.

60
The current student strength per class is 400+.

The college is also planning to add Master's Course in the near future.

The Flagship

In 1959, Mr. L.N. Jhunjhunwala was given the license to set up a medium sized textile mill
at Bhilwara in Rajasthan at a cost of Rs. 6 million - Rajasthan Spinning & Weaving Mills
Ltd. (RSWM). This was the first textile mill of the Company and the Group. And by 1968 -
69, RSWM was manufacturing India's first polyester viscose (PV) blended yarn, which
soon became a runaway success. Thereafter, the company moved from strength to
strength.

Today:

 It is renowned the world over as the largest manufacturer and exporter

of synthetic spun yarn from India.

 It has the most modern, IS/ISO 9001:2000 accredited plants at

Gulabpura, Banswara, Mandpam and Rishabdev Rajasthan, with manufacturing
capacities consisting of 164444 spindles and 67 weaving machines - producing
52000 MT of yarn and 7 million metres of fabric annually.

 RSWM has, over the years, received several export awards from
SRTEPC.

 Golden Trading House.

 S/ISO 9001:2000 Accredited Company.

 Largest exporter of P/V Blended Yarn since 1993.

 The Units:

61
  Gulabpura (Rajasthan) - Blended yarns, synthetic fabrics

 Banswara (Rajasthan) - Blended yarns

 Mandpam (Rajasthan) - Cotton Melange yarns

 Rishabdev (Rajasthan) – Blended yarns

Weaving Excellence

Do it right the first time and every time…

Guided by our core philosophy: "Do it right the first time and every time," we maintain
stringent quality benchmarks at every stage of production from selecting the right raw
material to the finished fabric. As a result, our state-of-the-art plants produce over 12
million meters of fabric and 40,000 metric tons of yarn for our customers across the globe.

From quality fibbers to ravishing yarn

• Great care is taken in selecting the right fiber's to ensure high quality yarns.

• Our discerning and quality conscious technicians are extremely diligent at all
stages in the process of converting the raw material into yarns.

Cutting edge technology for WORLD CLASS YARN

62
 • Our state-of-the-art machinery provides flawless yarn from Rieter Ring Frames,
Switzerland. Autoconers from Schlafhorst, Germany with clearing, splicing and
doffing devices contribute to knotless package.

• Two-for-one twisters from Star Volkmann of Germany add to the versatility of

special purpose plied yarn. Stringent testing instruments from Zweigler Spin lab
analyze and monitor quality at each and every stage.

From yarns with the substance to fabrics with the style….

• Latest 77 Sulzer and Toyota Air jet weaving machines & Sulzer projectiles,
backed by an ultra-modern process house.

• Thread by thread, the most modern and sophisticated poly-viscose fabric is

created. Today, with a weaving capacity exceeding 1 million metres per month,
RSWM is one of the largest manufacturers of world class blended suiting and
shirting.

The Gulabpura unit produces the following product range

YARNS

1. Polyester 100% Normal & Super High Tenacity - Ecru, Black & Melange

2. Viscose 100 % - Ecru, Dope Dyed & Melange

3. Polyester Viscose blended - Ecru, Dyed & Melange

63
 4. Acrylic 100 % or blended with polyester - Ecru & Dyed

5. Acrylic - Viscose blended Ecru & Dyed

6. Tencel, Tencel / Polyester and Tencel / Linen

7. Melbury or tusser Silk blends with viscose or polyester

8. Flame retardant (Trevira CS 270) in Dyed & Ecru

9. FR Aramid (Kermel) / FR Viscose dyed

10. Polyester / Viscose / Linen and Viscose / Linen in natural colour

11. Polyester / Viscose / Wool and Viscose / Wool in Ecru & Dyed (Modified Cotton
Spinning System)

12. Polyamide blends with Polyester, Viscose or Linen

13. Special effect yarns e.g. Neps, Slub, High Twist, Grindle, Multifold & Fancy

FABRIC

Bottom Weight

α. Polyester / Viscose blended fabrics fibre dyed and piece dyed

β. Tencel, Tencel Polyester & Tencel Cotton

χ. Polyester Cotton blended

δ. Polyester / Polynosic blended

64
 ε. Stretch fabrics

φ. Trevira CS 270 Inherent Flame Retardant fabrics

Shirting

Polyester, Viscose blended (Piece dyed & Fibre dyed).

Weave & Width

Plain, stripes & checks, Matt, Oxford, Wills, Herringbone, Fancy Dobby Design upto 165
cms. Width.

Selvedge

Leno, Tuck-in or closed with monogram

Finishes

Piece dyed

Fibre dyed

Enzyme treatment

Airo & Petra

65
Cripsy Finish in Polyester/Viscose Fabric

Anticrease Finish

Teflon Coating

Product Range

On the cutting edge of technology

To become a dominant player in the textile industry, Rajasthan Spinning and Weaving Mill
has always been on the forefront of adopting cutting edge technology solutions in its
operations. This has helped us in optimising resources, ramp up production efficiency, and
maintains high quality benchmarks and low downtimes.

Over the years, we have achieved a high degree of automation and technological
sophistication in all the critical areas of production. As a result, we are able to produce 7
million meters of high quality fabrics and 52,000 metric tons of yarns, with operating
efficiency of 98 percent.

Gulabpura

Capacity: 7 million meters of fabric 14,400 metric tones of yarn

66
Banswara

Capacity: 22,000 metric tones of yarn

Mandapam

Capacity: 4000 metric tones of yarn

Rishabdev

Capacity: 12000 metric tones of yarn

67
 Gulabpura plant overview

Location - Gulabpura at the outskirts the Dist Bhilwara (Rajasthan) on the NH 79 in

between Ajmer & Bhilwara.

The unit is very sensitive and responsive towards the welfare and personal development of
its employees. A full fledged Human resources development center equipped with modern
teaching audio visual aids is helping the employees in learning new methods, technology
and upgrades their skills. The Management is conscious in performing social
responsibilities and does charitable work for the community of nearby areas and takes
special interest in the uplift and upbringing of socially downtrodden residing in the vicinity.

68
It is also socio-eco friendly, sprawling lawns, lush green orchards and countless tress &
plants speak themselves of the respect of nature by the management.

The spinning yarn of RSWM, Gulabpura unit has a name not only in India but also
overseas.

System Certification- Kharigram unit is the first composite unit in India to obtain ISO-
9002 certification from BIS. This has now been upgraded to IS/ISO 9001:2000.
This unit is further embarking on the EMS 14001 series to get the coveted Environment
Management certification

In our project we have made a study on the Gulabpura unit of the RSWM only.

The clients for the yarns and woven products are:

1. Siyaram
2. Bsl
3. Raymond’s
4. Reliance

Vision of the RSWM

The Vision of LNJ Bhilwara Group is to forge ahead in the new millennium with an
immediate sense of purpose, and to be seen as the undisputed leader, fully equipped to
deliver the best, across the diverse spectra of our many business, fuelled by a
commitment to invest in plants, machinery, processes and, most importantly, their people
– Team Bhilwara; all towards satisfying and fulfilling their customer’s needs in today’s
globally competitive environment.

69
Mission of the RSWM

To continuously grow on a sustainable basis and to be a major, innovative, profitable and

the most admired textile manufacturer in Asia.

Corporate, environmental and social commitment

The spreading tree that LNJ Bhilwara is today, has always been nourished by
commitment to its people, society and the environment. We apply best industry
practices whether in the area of ecological consciousness, CSR or HR initiatives.
From the holistic development of our team members to societal development, we
constantly strive for the finest.

HR has been of primary interest, with an emphasis on self-evaluation, role definition

and corporate philosophies like Kaizen being implemented. Regular performance
appraisals based on a balanced score card system identify areas of improvement.
Employee health, whether physical, mental or spiritual is of great importance. Our
plants foster a tightly-knit, family-oriented culture, which rests on the best possible
physical infrastructure with fully integrated, self-sufficient residential complexes
complete with social clubs, educational, medical and sports facilities.

Our initiatives in the field of social responsibility have largely been in the area of
education, public health and local infrastructure development. Drinking water, basic
sanitation, roads and primary health care centres are a few of the facilities that the
Group has provided over the years. As an equal opportunity employer, we have
encouraged the employment of the local populace in our projects and at our plants.

LNJ Bhilwara has also actively facilitated and participated in all local cultural and
religious functions that have become bonding points for the community. The Group
has fostered development both independently and in partnership with local
government and non-governmental development agencies.

70
Our dedication to ecological preservation and development does not stop at official
certifications like EMS-14001 compliance alone. Intensive plantation drives, regular waste
management programmes and implementation of the Kyoto Protocol are just some of the
measures that are regularly undertaken. Green Tech safety award and other such
acknowledgements are proof of our efforts in this direction.

Quality Policy

71
Quality & Awards and Recognition

If the Group has flourished like a banyan tree, then quality has been its bedrock.
Right from the inception of the Group, we have been focussed on setting our own
benchmarks for quality. This attitude towards quality has reaped rich dividends for the
Group, as reflected in our stellar performance across functions and businesses.

Compliance with globally accepted international certifications and standards, like

BVQI and ISO is for us not an achievement but an imperative. These have come our
way for not just quality control but also processes, ERP implementation,
environmental standards, etc.

In addition to this, we have also conformed to the stringent standards demanded by

individual clients like Arcelor-Mittal, Posco, SISA, Marks & Spencer, Wal-Mart and
other global giants. And this is manifested in our outreach with exports from the
Group touching all five continents.

Peer validation from the industry has further substantiated our stand on quality across
the board, ranging from awards for productivity and exports, like the CAPEXIL, which
HEG has bagged for 17 consecutive years, the SRTPEC Excellence Award which
RSWM has been winning for the past 13 years and many more.

Finally, the customer is the king and he is the last word on quality. The Group has retained
several customers for over a quarter of a century. No higher claim to quality can be made.

72
 ORGANIZATIONAL STRUCTURE

C EO /C O O

A c c o u n ts B u d g e t D e s ig n
and S to re a n d S p in n in g w e a v in g and
I .T p u rc h a s e
c o m m e r c ia l d e v e lo p m e n t

M il l n o . M il l n o . Q u a lity E n g i n e e ri nPge rs o n n e l
1 ,2 ,3 4 & 5 F in is h i n gD y e H o u sAe s s u r a n c e
HRD
( sp in n i n g )( sp in n i n g )

PROCESS FLOW

The general process flow of the industry has been discussed underneath under the
various heads as follows:

73
DYEING OF FIBERS

For fulfilling the requirements of desired shades of polyester, viscose, acrylic and other
fibers, there is a well maintained and independent fiber and yarn dyeing setup, equipped
with modern machines.
At present they have a capacity of approximately 12 tones per day of fiber dyeing. They
have the capability of dyeing different types of fibers like polyester fibers with dispersed
dyes, viscose, tensil and flax fibers with reactive and Vat dyes, Acrylic fibers with basic
dyes, and wool fibers with metal complex dyes. Cotton slivers with reactive dyes, etc.

HTHP Machines

There are nine HTHP machines with different capacities, five hydro extraction machines
and three dryers for accomplishing the job. The capacities of the dyeing tanks are: 400 kg,
300 kg, 200kg and 100 kg. The working temperature for these tank is 140c. The working
pressure is 3.5 kg/cm. The temperature is created by steam.

There were total 10 dyeing machines.

Out of which 4 small, 2 medium, 8 large

400 kg X 1
300 kg X 3

74
200 kg X 2
100 kg X 4

There is machine called hydro which removes water from the dyed fibers.
In the contents of the dye bath there is water softener acid and color.
Polyester: for on dye.
Viscose: reactive vat dye.
Acrylic: acid/base.

The technical name of the machine is high temperature high pressure dyeing machine.

Dyeing temperature:
Polyester: 135o c
Acrylic: 105o c
Pressure is around 350 and ph is around 4.5
Polyester is a plasticized fiber and in it the dye particles penetrate in so that’s why we have
dispersed dyes.

Buffering agent is Na2SO4 which is put in order to maintain Ph.

Some acids become weak on high temperature.
Formic/acidic

The dyes used are from the following companies:

Dispersed dyes: CIBA, Rethelene, Clearinet
Vat dyes and reactive dyes: Indonin
Acrylic dye: Mamta

The total time for the dyeing cycle: 65-85 mins

The total time for the hydro cycle: 30-40 mins
The total time for drying: 4-7 mins.

75
The temperature during the drying process: 65c-110c

The fibers having fine count contains more moisture thus requires more time and the
coarse count contains less moisture thus requires less time for dyeing.

Apart from this they have a quality control lab in the dye house through which all the
important quality parameters of the dyed fibers at different stages have been checked and
controlled. Color fastness of the dyed fibers is checked. The various other kinds of
fastness checked are DMF fastness, Washing fastness, Sublimation fastness, Rubbing
fastness, Perspiration fastness, etc. The moisture content of the fibers after hydro and
dryers stage is checked. Also the shades under different light sources of color cabinet are
visually checked by finding out dE value by computer color matching system.
Here there is one dyeing sample lab. For this purpose they have Launder-o-meter, beaker
dyeing machine, Sublimation fastness tester, PH meter, TDS meter, Water hardness
tester, Package hardness tester and OPU tester, Crock meter, Electronic moisture tester
and Macbeth

color cabinet and computer color matching system. They are planning to further upgrade
this quality control lab by procuring some of the latest machineries like Alpha
200( Lenzing), Tumble piling tester (Paramount), Martindale abrasion tester(SDL),
Soxhlate apparatus (Paramount), Xenon weather meter(SDL), etc.

In this lab the marketing lab sends them some samples, they take small amount of fibers
then make the blend as required. Then they dye the fiber in required shade in beaker
dyeing machine. This machine is filled with glycerin which can be heated up to 110ºC. In
this machine both fiber and glycerin are moving. After getting the fiber dyed they make a
small yarn out of it manually and then they compare it with the given sample and after
getting the desired shade they produce higher amount of same fiber in HTHP(High
Temperature High Pressure) dyeing machine in this machine only liquid moves so high

76
pressure is also applied on the fiber. They have three such machines 1kg, 3kg and 5kg.
Then they make baby cones from this fiber and send it for mass production.

Introduction to the Topic

Setup of 7’Ps of Marketing

At

77
Textile, like any other business, requires marketing to survive. There is little or no
point in developing a range of customer – focused services, investing in staff
training and development, and deploying scarce financial resources in setting up well
equipped consultation rooms, if there are no solid plans to market these services.
A market is a group of people who satisfy four criteria:

 They need or want the product or services

 They have the ability to pay

 They have the authority to buy

 They are willing to buy

But what precisely is marketing ? Often misunderstood as selling or advertising,

marketing is both of these or more. The UK Chartered Institute of Marketing
defines marketing as “the management process responsible for identifying,
anticipating and satisfying customers requirements profitably”. And, according to the
American Marketing Association, marketing is “the process of planning and

78
executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that will satisfy individual and organization objectives.”
Basically, getting them to buy and ensuring that they are so pleased with their
purchase that they make repeat purchases.

Marketing Skills

Successful marketing demands good analytical, creative and communication skills.

Analytical Skills One of the first step in marketing is to identify and analyze the
target market, that is the actual and potential buyers skills are also needed to:

 Scour the marketplace for opportunities and desirable target markets. The
market can be analysed using several dimensions, including demographics
(e. g. sex, age), lifestyle, fashion, trends and various categories.

 Gain a thorough understanding of customers (e. g. their needs and

preferences).

 Size up the marketing efforts of competitors’ activities and analyzing it i.

e. market intelligence.

 Assess the service, product or business. This involves using a SWOT

(strengths, weaknesses, opportunities and threats) analysis.

79
  Determine the environmental factors that could affect a business. This
involves using a PESTE (political, economical, social, technological and
environmental) analysis.

Creative Skills Creativity is the lifeblood of any organization and the most powerful
of all the marketing skills. A creative mind can bring innovation, giving a textile
industry a competitive edge in the market place. Creativity involves looking for new
ideas and developing the best of them into practical applications. The creative
process involves four steps:

 Initiation
 Imagination
 Invention
 Implementation.

Initiation: involves recognizing a need or opportunity and asking questions to begin

the creative process. For example, a textile industry manager might look at the
front of his textile industry and ask himself if there is some way of making it
stand out and communicate what his industry all about. A creative brief is useful
to work with at this stage. This lays out basic purpose of the creative thinking and
provides relevant information.

Imagination: In this stage the person or team engages in imaginative and

uninhibited thinking (e. g. brainstorming). The aim is to generate lots of ideas.

Invention: From the ideas generated, a critical analysis is made and the idea that
seems the most promising is chosen and worked with to make it practicable.

80
Implementation: The creative process is completed by pursuing successful
implementation of ideas as a service or product.

Communication Skills:

Communication skills are vital to create a compelling marketing message. Each

time contact is made with a customer (e. g. in the textile industry, on the
telephone, etc.), a point of influence is created. Good communication means
persuasively at all influence points.

The marketing mix

There is a set of controllable variables that an organization can blend to produce

the desired response in its target market. This set is known as the “marketing
mix”. In the 1950s, there were four accepted variables: Product, Price, Promotion
and Place (Distribution), which were referred to as the “four Ps of marketing” but,
over time, the marketing mix concept has expanded to include people, process and
physical presence, giving rise to 7 Ps.

Once the target market has been analyzed and marketing

objectives set, each element of the marketing mix should be developed with the
objectives of maximizing customer satisfaction profitably and delivering satisfaction
more effectively than the competition. However, for really effective marketing of
services, as opposed to products, their special characteristics include intangibility,
inseparability, perishability and variability.

81
 Services are intangible and this often makes it difficult for
customers to understand exactly what a service represents. With services, then,
customers look for indicators of quality. For example, a textile industry that takes
pride in the way it is presented (i. e. it is clean and tidy) may suggest that the
service will be conscientious and professional. In a similar way, uncluttered,
straightforward advertising implies honesty and truthfulness.

The other characteristics specific to services will be discussed in

the context of the seven Ps.

Product

The marketing mix product is the textile industry service and quality. The aim
should be to develop and maintain an innovative service that satisfies customers.
Associating certain tangibles with the service can give customers a “handle” for
evaluating the service. For example, a tastefully designed and well equipped
consultation room may suggest that the service is of good quality. Courtesy and
knowledgeable textile industry staff may project a friendly, professional image. Other
ways of making a service tangible include giving an appointment card, a printout of
any results or an information sheet.

Price

The price of services and product provided under the textile industry contract are
fixed, but for private or primary care organization commissioned services, it is
essential to have a pricing policy and for the services to be competitively priced.
Consideration of the size of the market, the demand for the service and costs of

82
producing the service is needed to determine projected profit. The price that can
then set accordingly.

When pricing textile products, a portfolio approach could be taken,

with each service making a significant but different contribution to the textile
industry’s overall profitability and competitive position in the marketplace. Some
services could be profitably priced whereas others could be cheaply priced, serving
primarily to generate awareness of the range of services available in the textile
industry. Others, still, might be offered free, serving as loss – leaders to drum up
business by attracting new customers and building loyalty.

Place

Place convenience and ease of access are of vital importance to consumers. If a

textile industry is located close to the target market, convenience should be a key
message to potential customers. However, if a textile industry is not easily
accessible that does not mean it cannot provide services. For example, with
primary care organization approval, textile industry raw material like yarn use
reviews can be performed in clients’ manufacturing plant or production centers’.

Convenience can also be used as a selling point when marketing

services, such as repeat clients delivery. The best times to offer services should
be considered from clients point of view.

Services are perishable. They do not have a shelf life. Services

are also time dependent – delivery involves the allocation of time. If a service
appointment is not honored by a customer, that time is lost – the service can not
be stored for consumption at some later time - and this implies loss of income.
This time – dependent characteristic of services is a great weakness in marketing.

83
One way of minimizing wasted time and loss of income is to telephone customers
to remind them about appointments.

Promotion

There are a number of ways to communicate availability of a service to a target

market and choice will depend on the promotional plan. This is simply a coherent
and well thought out document detailing the promotional and communication
activities required to achieve promotional objectives.

Key considerations when developing such a plan are listed as

followings:

 What are the promotional goals? (e. g. to create awareness of a service)

 Who is the target audience?

 What is the message?

 What communication tools and media (e. g. print or electronic) will be

used?

 What are the promotional budgets and timescales?

 What external promotional resources are available?

 What is the process for appraisal and review?

84
Personal (i. e. face to face) selling is often an important element in the promotion of
services: it allows buyers and sellers to interact and obtain immediate feedback
from each other. Textile industry staff can use personal selling to reduce
uncertainty, better explain service benefits, and enhance the image of the textile
industry.

Successful personal selling involves building rapport with customers,

discovering their specific needs, questioning them to uncover barriers to service
uptake and matching the benefits of the service to their needs. The entire process
and message should have in - depth knowledge of the services and the time to
explain what is an offer and the benefits. Customers usually draw confidence from
someone who shows good knowledge of a subject and those who feel they are
being offered a professional service will be more likely to use it.

In addition, clients generally seem to prefer word of mouth

communication about products, especially services, from friends, relatives or
neighbors. This gives a potential customer the most credible source of information
about a service, aside from experiencing the service for him or herself. This type
of communication can have a huge impact on a textile industry’s efforts to retain
old customers and recruit new ones. Textile industry can stimulate positive word –
of – mouth testimonials by providing “value – added” services and by building
excellent relationships with their customers. Providing a value – added service
means rewarding the use of a service by delivering more than promised, also
known as the “and then some” principle. For example, collecting and delivering a
prescription, the textile industry could make a “non – selling follow up” and
telephone the customer to check whether he or she is satisfied and needs any
advice.

Promotion includes working on public relations and investing in

“social capital”. Such activities can attract the attention of the local press and help
a textile industry with the community and include:

85
  Talking to local groups on health issues

 Participating in public health awareness campaigns and other good

causes

 Joining local business associations

 Producing a pharmacy newsletter

Promotional tools include using in – house materials (e. g. posters, stickers and
leaflets) window displays, table top displays and electronic media, including website
advertising. Textile industry should, however, ensure that any promotional messages
are legal, ethical, decent and honest.

Nurturing a good working relationship with local GP practices is of

paramount importance. Practice staff can help stimulate positive word – of – mouth
communication about a textile industry and an enthusiastic textile industry – friendly
GP or healthcare professional can help signpost patients to services. It is,
therefore, vital that these stakeholders are aware of the services on offer. Good
relationships can be built by forming textile awareness partnerships, for example,
working with the local producers . if you can identify and uncover the needs of
producers, GPs and the other textile professionals, you can offer to meet these
needs by highlighting the benefits of your services – people will always buy
solutions to problems.

Another way to make a service tangible is provide cues that relate

to the service. For example, some multiples have used sports celebrities to
promote service relating to healthy and fashionable lifestyles. Activities of this
nature are expensive and likely to be out of reach for a small independent textile

86
industry but such textile industries could explore mutually beneficial strategic
partnerships with textile manufacturers to support this form of promotion.

People

The people component of the marketing mix can have a direct impact on the
image of a textile industry. The textile industrialist and other textile industry staff
are customers point of human contact and who they will look to for information,
advice or support.

The staff are a textile industry most valuable asset with regards to
marketing of services. In terms of marketing, they need to be kept well trained,
informed and motivated to put across the right image, i. e. training should be
viewed as a marketing tool. Well trained and motivated staff will allow a textile
industry to build a reputation in its local community, attracting new customers.
Excellent textile industry teamwork (i. e. where members understand their roles and
there is a cohesive aim – that of meeting customers needs more efficiently than the
competition) can help to keep marketing activities focused.

Process

Process delivering a good service to customers involves many processes, not only
ones that involve contact with the customer but also those required before and
after the service is delivered. Processes need to be constantly evaluated and
managed. For example, are potential customers identified properly and
professionally? When selling the services to prospective customers, are textile
industry staff courteous, considerate and professional? And does the service have
a complaints procedure and how robust is it? Processes must be of high quality
and time – managed to support the marketing effort.

87
 The fourth special characteristics of a several ice is variability.
Since services are delivered by people, the performance and outcomes can
different providers. Consistency can be difficult to achieve and this can lead to
customer dissatisfaction. Evaluating the service and processes is, therefore, vital.

Physical presence

A textile industry’s atmosphere, or physical presence, including the image that it

projects, is based on how it is designed and decorated. An atmosphere that is
comforting or exciting or enticing can draw people into the textile industry and
enhance their shopping experience.

Providers of textile industry services need to present prospective

customers with an image that communicates what their textile industry represents.

With more emphasis on improving the customer experience, textile

industries need to be both aesthetically pleasing and functional. The design of a
pharmacy should aim to make customers feel welcome and, with the help of staff,
aware of the range of services available. Textile industry services themselves
require the right environment – privacy and space. The creation of a distinct,
professional image within a textile industry helps to build trust between the textile
industry staff and their clients.

With an awareness of the seven Ps and the special characteristics

that apply to services, a marketing programme can be planned and implemented.
At the planning level, many decisions must be made.

88
Key considerations when planning to market a textile industry service:

 What service will be offered?

 Who should it be marketed to?(Has a target market been identified?

What are the needs, wants and expectations of this target market?)

 What price will be charged?

 When and where will the service be available to customers?

 How will the service be promoted to stakeholders?

 Who should be involved in the marketing of the service?

 What are the processes involved in delivering the service to customers?

 What image should the textile industry project to appeal to customers?

 What are the competitors doing and how can the pharmacy meet the
needs of the customers better than the competition?

 What are the marketing objectives?

 What is the marketing objectives?

 What is the marketing budget?

 How will feedback, performance and review procedures be established?

89
 Objective of the study

Main Objective

90
 In this dynamic WORLD every movement is backed by some objective
behind it. Objective, if defined clearly, it makes the track easy for completion of
the task. In the management studies Summer Projects are of vital importance and
add the much – needed practical exposure to the budding managers.
In the charismatic corporate world, we got the opportunity to undergo
winter training in RAJASTHAN SPINNING AND WEAVING MILLS LIMITED
(RSWM LTD) which is one of the largest textiles companies of the country in term
of turnover. Getting the original experience of the business milieu and
understanding as well grasping the intricacies of Corporate Finance was the
foremost objective of our Project at RSWM Ltd.

Specific Objective

The OBJECTIVE is achieved only if the study is defined systematic and

procedural and the following points will be defined & monitored closely for
successful completion of this project:

 Understanding the business dynamics from history & present environment

of Rajasthan spinning & weaving mills ltd.

 To know the current scenario of textile industry

 Understanding of textile industry as a whole including fiber to processing.

 To know about the market position of the company and how company is
 managing their target marketing areas.

 Understanding the 7 Ps involved in marketing of the RSWM Ltd.

91
 Attain Knowledge of the satisfactory level of market position.

MANPOWER PLANNING AND EMPLOYEE

92
 ATTRITION ANALYTICS

In a competitive arena, the advantage is taken by the first-mover – and for an environment
where The Rule-Of-Three predominates, it is not just the first mover, but the fast -mover
who has it all.

Every organization, no matter how stable its quality and people processes, is bound to fall
prey to the silent warfare of the fast-movers – which I would prefer to call Corporate
SitzKrieg1; and Hertzberg’s “Satisfiers” are today’s HR nightmare – because nothing
seems to work!

Thus today, HR as a strategic partner in any organization has lots to do in terms of

metrics, HR analytics, prediction of trends and quantifying Human Capital measures.
Since attrition is one of the main problems for any organization struggling to retain its
expertise and knowledge base, an analytical approach to the same would also help in
prediction and necessary remedies.

This paper aims to draw on the recent HR trend of referring to the employee as an
“internal customer” and therefore assumes that manpower attrition is similar to customer
switching problems in case of products, thus has used Markov Analysis as an operations
Research technique to predict attrition, and therefore form a basis for manpower planning.

This white paper is aimed at a greater scope of having more thought provoking ideas in
the HR Analytics arena and within its limited scope here, suggests an OR model as part of
manpower inventory planning in general.

INTRODUCTION

93
One of the greatest strategies of War had been the strategy of attrition warfare, defined in
military terms as “a strategy of warfare that pursues victory through the cumulative
destruction of the enemy’s material assets by superior firepower.”

Metrics like body counts and terrain captured measure the progress of battle. On the
opposite end of the spectrum is maneuver warfare. All warfare involves both maneuver
and attrition in some mix.

The predominant style depends on a variety of factors such as the overall situation, the
nature of the enemy and most importantly, on attackers’ capabilities.

Though this paper deals with attrition with respect to the War for Talent in Corporate
arena, the strategy involved is the same and even the terminologies quite similar – if
“body count” can be a parameter to measure effectiveness of attrition warfare, then in
corporate recruitment strategies the similar parameter would perhaps be “acceptance to
offer ratio” (from the attacker’s perspective).

Human Resource professionals are under increased pressure from a different kind of a
Corporate

THE KNOWLEDGE-HARVEST

APQC (American Productivity and Quality Centre) has made several recommendations to
raise awareness of the problem of knowledge attrition, which include

1. Identifying a burning platform or issue related to knowledge loss.

2. Looking for windows of opportunity through champions who are willing to try out
knowledge retention approaches.

94
APQC has categorized three knowledge types that are under attack through attrition.

1. Cultural knowledge – This includes management practices, values, respect for

hierarchy, and decision flows.

2. Historical knowledge – this includes the organization’s journey from the day it was
founded till the present

3. Functional knowledge – this includes technical, operational, process and client

information

A more careful look at figure 1 indicates that there seems to be some good amount of
convergence with respect to AQPC’s definition of the three types of knowledge and the
model given in figure 1 –particularly the fact that corporate attrition warfare is all about
gaining (through head-hunting, strategic recruiting, internal job offers, etc) human assets,
who bring along with them the three kinds of knowledge, and thereby attack the very
strategic base of the organization.

Thus from the attacker’s point of view, depending on which type of knowledge it needs
from the competitor, the recruitment strategies are also sorted out accordingly. It is evident
therefore, that attrition rate among junior employees (2-4 yrs) would be higher for the
functional knowledge part –associated with technical and operational processes.
At higher levels, the attrition warfare would be more for gaining historical knowledge
(business portfolio changes down the years, etc) and cultural knowledge from the
competitors.
From the organization’s point of view, the counter strategy is to predict attrition “zones”
which depend on the criticality or type of knowledge that is at important to the organization,
and thereby evolve plans to counter loss of human assets from those positions.
Once we realize this, the next step is to come out with concrete plans to prevent attrition,
which can only be forecast using data and trends available. Some of the world’s best

95
practice organizations have tried capturing data to predict attrition on the long run, and
done that in different ways.

WHAT WE REALLY LOSE

Attrition and knowledge management – Loss of Historical and Cultural knowledge

From the attackers’ perspective, one of the parameters to measure effectiveness of

corporate attrition warfare might be “acceptance to offer” ratios. But from the perspective
of the organization that has to cope up with this ever-growing problem, the problems
associated are larger.

Attrition is a pain area in any organization that intends to have a knowledge management
system in place. In a famous article2, attrition (through normal retirement or through
resignations) has been discussed as one of the pain areas in the field of KM, because
vacancy of a position might be easier to fill in through the proper people-sourcing
approaches, but filling in the knowledge gap is not. This is particularly in context of a tough
economy where the concept of all-size-fits-all is no longer working, and vacancy of a
position by attrition is basically vacancy of a knowledge-base, and this vacancy in
knowledge base cannot be filled in by any person.

This is precisely what is referred to as tacit knowledge, which most organizations today
are grappling to capture and retain. This closely pertains to what AQPC referred to as the
Cultural and Historical knowledge, in addition to the Individual or Proprietary knowledge
that goes off without being codified and migratory, and therefore is never assimilated in the
organization as invisible knowledge. This can be exemplified better through the typical
knowledge-cycle of an organization as shown below, originally by Takeuchi and Nonaka:
The problem can be aptly stated through examples from the corporate world itself –
Corning, which had been experiencing knowledge loss through the large scale retirements
through 1990’s estimated that it lost around 2000 years of cumulative years of experience

96
as a result of a retirement package offered in 1998 – and this exemplifies loss of
knowledge due to planned retirements alone – here we are talking of corporate SitzKrieg,
where an employee may walk into the office any morning to place his resignation letter and
walk off with the competitor – not just creating a vacancy, but taking some of the most vital
knowledge quantum from the company to it’s competitor.

However, organizations even with established knowledge management practices have not
been able to come up with any substantial measure to check this knowledge loss, and
therefore an indicator of failure in capturing tacit knowledge bases.

Attrition event

Attrition in Call-Centre - Loss of Functional knowledge

The problem is more acute depending on the industry and the demographics of the
employees too, as in call centre. Here the knowledge drain is at a different level, and it
corresponds more to AQPC’s definition of Functional knowledge.

Though it is a known fact that high turnover rates drain the cost effectiveness of call
centres, unfortunately little is being done about it.
In the article “Reducing Call Centre Turnover”3, managers in call-centres normally tend to
look only at advertising costs, interviewing and training costs etc, but overlook the vital
costs associated with attrition.
Merrill Lynch attempted to find out costs associated with call-centre attrition – which came
out to be around $9m per annum for a company with 1000 employees, and annual
revenue of $100m.

This shows that retention alone can significantly bring up the bottom-line for a call-centre.

97
Organizations tend to spend huge sums of money on recruitment, for web-postings, job
fairs, ads, employee referral bonuses, etc, and end up with 50% employees leaving before
reaching any level of proficiency.

Proper testing and screening, training, introduction of the apprenticeship scheme, aptitude
testing

(10%), realistic job previews (8%), structured behavioral interviews (3%) can help prevent
attrition by percentages shown in parent hesis.

According to the Forum Group, 65% of the external customers leave due to internal
reasons alone(45% for poor service quality, 20% due to lack of attention) –thus internal
attrition can devastate call-centre effectiveness if not tackled properly.

WHAT OTHERS ARE DOING

Organizations across the world and operating in different industry segments have tried to
find out means to measure business loss through attrition.

Schlumberger, for example, understands how important it is to link its knowledge sharing
techniques with its HR processes: the oil industry faces an attrition rate of 44% by 2010.5
Pfizer also takes preventive measures to combat knowledge-drain and promote better
knowledge transfer through its six-step knowledge retention process.

Best practice companies, according to AQPC, should conduct a thorough audit to

determine what knowledge is worth capturing.

Stated in another way, this would also indicate the “critical positions” in the organization,
which can create a substantial problem to the company incase it is vacated under
competitor attack.

98
THE VALIDITY OF ATTRITION DATA

In order to understand this, it is important to question the very validity of the data that is
given by the employees – it is only common sense that an employee would not reveal the
correct reason for leaving the company at some point of time – thus any action taken by
the organization to prevent attrition by altering the factors as mentioned above does not
have any effect, because perhaps the data itself is not valid.

INTRODUCTION TO EMPLOYEES SATISFICATION SURVEY

Employees are the biggest assets of an organization. They drive the growth of the
organization. They are the one who take it to greater heights and established it as a

99
market leader. On the other hand it is the responsibility of the company to see that
employees have full faith in organization and their requirements are met. The management
of the organization should create an environment where the employee’s feel comfortable
to express their feeling related to personal and business concerns.

The satisfaction of employees could depend on monitory benefits as well as organization

culture. To judge the satisfaction level of Employees Company uses Employee satisfaction
survey.

While pursuing my eight-week training in RSWM (Mayur’s), Gulabpura, Bhilwara. A

project work on employees satisfaction survey was assigned was assigned to me. But the
survey could not be completed as the management decided to conduct such survey
through an external agency. This may help the business in getting a fair feedback about
the employee’s feelings. Taking such feedback into consideration, Management can
improve/modified its HR policy.

The survey would be conducted at RSWM based on the following parameters.

1. Feeling of workers regarding the company.

2. Feedback mechanism
3. Quality satisfaction / customer focus
4. Compensation Benefits & Welfare Measures
5. Workplace & Resources
6. Opportunities for Growth

I was given the second project “Analysis of Attrition Study 2008-09”.

OBJECTIVE:

100
The objective of the paper was to propose a quantitative way to predict attrition rate in any
industry and therefore take the necessary steps to prevent it, or plan the manpower
inventory accordingly.

101
 RSWM - KGM

Gradewise Staff left position

2004-05 2008-09
No. of
No. of
Grade Left Remarks Remarks
Left Staff
Staff

M9 1 Shri NM

M8 0 1 Shri SNK
Shri CPV,
M7 1 Shri A.K.Shah 3 SRT & S.Th.

M6 1 Shri H.S. Gill 1 Shri N.Sensaria

Shri NNM,
M5 2 Sunil Jain

M4 Managers
6 10 Managers

M3 1 5

M2 3 11

M1 11 5

Below M 26 42

Total 52 78

102
 RSWM - KGM

Staff left position

Roll position in the

S. Left (Attrition)
Period Staff Left beginning of the
No. %
year

1 01/04/2002 to 31/03/2003 50 329 15.20

2 01/04/2003 to 31/03/2004 49 320 15.31

3 01/04/2004 to 31/03/2005 52 294 17.69

4 01/04/2005 to 31/03/2006 78 308 25.32

103
 Staff on
Roll Staff On
as on Joined Left Transfer Transfer Roll
RSWM - KGM as on
SN Staff Left Position (2008-09) ( + )
4/1/2005 (-) 01/05/2006
1 Common 1 1

2 Corporate Finance 10 2 2 Staff Left10

SN 2005-2006
13 Dyed Yarn Business
Corporate Finance 3 1 2 2
2 New Product
Dyed Yarn Business 1
34 Development
CPPC(Spg.) 4 1 4
45 CPPC(Spg.)
Spinning Finance 3 1 1 4 3
56 IT
Spinning Finance 15 3 4 1 14
6 Fibre Purchase 2
77 Spinning
Spg. SQCBudget 6 1 6
88 ITSpg. Production 6 1 1 2 11 4
99 Internal audit
Dye House 1 11 1
10
10 Law
Engineering 1 5 1
11
11 Store
General Admn. 12 1 12
12
12 Yarn Excise
Security 2 1 2
13 HRD 1
13 Fibre Purchase 5 3 2 1 7
Total(A) 42
14 Yarn Sales-Domestic 6 6
14 CPPC(Fabric) 6
15
15 Spg. Development
Fabric Sales Office 5 1 1 4
16
16 Spg.
YarnSQC
Purchase 8 1 1 1 6
17 Marketing Block 1
17 Spg. Production 80 10 11 2 77
18 Marketing Export 3
18 Dye House 16 11 11 2 0 18
19 Weaving SQC 3
19 Engineering 11 4 5 10
20 Weaving Production 8
21
20 Design Admn.
General & Development7 1 1 6 7
22
21 Finish Folding
Horticulture 1 2 1
23
22 Out side
Personnel job 12 3 12
24 Vendor Process House-Mordi 2
23 Security
Total(B) 2 1 1 36 2
24 HRD
Total(A+B) 3 1 78 2
Total 220 37 42 3 6 212

104
 RSWM - KGM
Staff Roll Position 2004-05
Division
(A)
Spinning
Staff on roll Staff on
As on Joined Left Transfer Transfer Roll on Remarks
SN Deptt. 4/1/2004 (+) (-) 4/1/2005
1 Common 2 1 1
Corporate 7 from spg. Fin, 1 from
2 Finance 0 0 10 10 Law, 1from Genl,1
from CPPC
Dyed Yarn 1 from Yarn Pur, 1
3 Business 0 1 1 3 3 from Genl., 1 From
Yarn sales
New Product 2 from spg. Dev, 1
4 Development 0 1 3 4 from D.H.
5 CPPC(Spg.) 3 3
6 Spinning Finance 17 5 1 1 7 15
7 Spinning Budget 5 1 6
8 IT 7 1 6
9 Internal audit 1 1
Law Shri KCD transferred
10 3 2 1 to Corp.Fin. & Shri R
.Dhadhich to Yarn Sales
11 Store 14 2 12
12 Yarn Excise 2 2

105
 13 Fibre Purchase 5 5
Yarn Tr. Kogta+Pawan
14 Sales-Domestic 8 2 1 1 6 Agrawal
Taken dadhich from law
Spg.
15 Development 5 5
Spg. SQC Tr. Pawan Sharma
16 6 2 1 1 8 from spg.
Spg. Production Tr. Pawan Sharma to
17 73 29 19 3 80 SQC
18 Dye House 15 11 10 16
19 Engineering 12 1 2 11
General Admn.
20 10 1 1 3 7 Tr. PR+Menon+Sukumar
21 Horticulture 1 1
22 Personnel 12 12
23 Security 1 1 2
24 HRD 3 3
Total(A) 205 53 41 19 16 220

(B) Fabric
25 CPPC(Fabric) 11 4 4 1 1 11
26 Finance Wvg 5 1 4
27 Fabric Excise 1 1
28 Fabric Budget 3 3
Fabric Sales
29 Office 4 1 3 Tr. VKDabaria in Fin.
30 Yarn Purchase 4 1 1 4 Tr. Anurag in DYB
31 Marketing Block 3 3
32 Marketing Export 4 1 1 4 Tr. Sukumar from Gen.
33 Publicity 2 1 1 2 Tr. Kothari from W/H
34 Weaving SQC 3 3 6

106
 Weaving Tr. Neeraj Saxena to
35 Production 16 3 1 18 Outside job.
Design & &&
36 Development 7 1 1 7
37 Finish Folding 5 1 4 Tr. SNParasher in W/H
Fabric ware Tr. SNParasher from
38 house 9 1 10 F. Folding
39 Out side job 2 1 1 2
Vendor Process
40 House-Mordi 6 1 1 6
41 Marketing Plant 4 3 1 0 Tr. Kothari to Publicity
Total(B) 89 13 11 5 8 88
Total(A+B) 294 66 52 24 24 308

107
 RSWM - KGM

Staff Left Position (2004-05)

Staff Left
SN 2004-05
1 Common 1
2 Dyed Yarn Business 1
3 Yarn sales 2
4 Spinning Finance 1
5 IT 1
6 Store 2
7 Spg. SQC 1
8 Spg. Production 19
9 Dye House 10
10 Engineering 2
11 General Admn. 1
Total(A) 41

12 CPPC(Fabric) 4
13 Marketing Export 1
14 Publicity 1
15 Design & Development 1
16 Vendor Process House-Mordi 1
17 Marketing Plant 3
Total(B) 11
Total(A+B) 52

108
 G R A D E W IS E A T T R IT IO N S T U D Y K G M ( D Y B ) 2 0 0 5 - 0 6

4 .5

3 .5

M7
2 .5 M4
NO OF EMPLOYEES

M 3 /M 2
2 M1
O TH E R S

1 .5

0 .5

0
Dye House S p i n n in g + Q A + M a in t
DEP ARTM ENT

109
 GRADEWISE ATTRITION
STUDY KGM - FB 2008 - 09

3.
5

2.
5

2 M
7
M
NO 4
M3/
. M2
OF M
1. 1
EM OTH
5
PL ERS
OY
EE
S 1

0.
5

0
Weavin D Makt. Finish
g & QA & Block& F Folding
DEPART
D S
MENTS

110
 G R A D E W IS E A T T R IT IO N K G M - C O M M O N S E R V IC E S 2 0 0 5 - 0 6

4 .5

3 .5

M7
2 .5 M4
NO. OF EMPLOYEES

M 3 /M 2
2 M1
O TH ER S

1 .5

0 .5

0
E n g in e e rin g C P P C F .P .& Y .P .P e r s o n n e l/H ARc c o u n ts G e n e r a l & IT
A d m in i.
D EP A R T M EN TS

111
 B u s in e s s S e g e m e n t w is e A tt r it io n S tu d y

4 .5

3 .5 A tti tu d e o f B o s s

W o rk in g E n viro n m e n t
3
B e tte r P r o s p e c ts /C a r e e r G r o w th

2 .5 J o b P r p fi l e /S e n i o r i ty U n d e r m i n e d
No. Of Employees

S e l f / P a r e n ts S i c k n e s s /P e r s o n a l /D o m e s ti c
2 R eason
P re s e n t L o w S a la ry

1 .5 N o S p e c ific R e a s o n

M a n a g e m e n t D e c is io n
1

0 .5

0
D YB FB COMM.
B u s in e s s S e g m e n t

112
 KHARIGRAM PLANT ATTRITION STUDY 2005 – 2006

Grade
Dyed Yarn Business M7 M4 M3/M2 M1 OTHERS Total
Dye House 1 1 3 2 7
Spinning+QA+Maint 1 4 4 9
Total 2 5 3 6 16

FABRIC BUSINESS M7 M4 M3/M2 M1 OTHERS Total

Weaving & QA 1 3 2 2 8
D&D
Makt. Block& F S
Finish Folding
Total

COMMON SERVICES M7 M4 M3/M2 M1 OTHERS Total

Engineering
CPPC
F.P.& Y.P.
Personnel/HR
Accounts
General & Admini.
IT
Total

G.Total 53

113
 Study based upon the Exit Interview

Business Segmentwise

Reason of attrition Number of Employees

DYB FB COMM. TOTAL

Attitude of Boss

Working Environment

Better Prospects/Career Growth

Job Prpfile /Seniority Undermined

Self / Parents Sickness/Personal
/Domestic Reason

Present Low Salary

No Specific Reason

Management Decision

114
 EMPLOYEE SATISFACTION SURVEY

The objective of the survey is to gauge overall employee’s satisfaction. The entire
questionnaire is divided in to 2 portions. The 1st part is to capture employee details. The
Second part contains five points closed end questions, to judge over all satisfactions of an
employee.

The rating pattern will be as mentioned below.

1. Strongly Agree
2. Agree
3. Neutral
4. Disagree
5. Strongly agree

Note: The information shared for this survey is highly confidential and will not be shared
with anyone.

115
 QUESTIONNAIRE

PART-1

PERSONAL INFORMATION
NEME :
CATEGORY : <> Permanent
<> Trainee
<> Temporary
AGE :
DEPARTMENT :
DESIGNATION :

116
PART-2
I. How do you feel about the following statement of the “Company”?

1. I am aware of the company’s overall strategy. What you say?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. I am optimistic about the future of the company.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. I feel my department gets support and team work from other areas within
the company.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. Overall I am satisfied with my job at company.

 Strongly Disagree
 Disagree
 Neutral
 Agree

117
  Strongly Agree
5. The quality of our products and services are very important to the
organization.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

II. How do you feel about the following statement of the “Feedback
Mechanism”?
1. I receive useful and constructive feedback from my managers/ shop floor
supervisor.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. I am give adequate feedback about my performance.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. Employee’s performance evaluations are fair and appropriate.

 Strongly Disagree
 Disagree

118
  Neutral
 Agree
 Strongly Agree
4. My supervisor gives me praises and recognition when I do job.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

5. Supervisor Keep you well informed about what’s going on in the company.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

III. How do you feel about the following statement of the “Quality &
Customer Focus”…?

1. People are held accountable for the quality of they produce.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. In this organization we maintain very high standards of quality.

 Strongly Disagree

119
  Disagree
 Neutral
 Agree
 Strongly Agree
3. This organization understands its customer’s need.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. This organization is extremely focused on its customer’s need.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

5. Customer needs are top priority in this organization.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

IV. How do you feel about the following statement of the

“Compensation/ Benefits &Welfare Measure”

1. I am paid fairly for the work I Do.

120
  Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
2. My salary is competitive with similar jobs I might find elsewhere.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. My benefits are comparable to those offered by other organization.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. I understand my benefit plan.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

5. I am satisfied with my benefits package.

 Strongly Disagree
 Disagree

121
 Neutral
 Agree
 Strongly Agree

122
V. How do you feel about the following statement of the “Work Place &
Resources”…?

1. I have the resources I need to do my job well.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. I have all the information I need to do my job effectively.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. My work place is well maintained.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. My work place is a physically comfortable place to work.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

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5. My work place is safe.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

VI. How do you feel about the following statement of the

“Opportunities for growth”?

1. I receive the training I need to do my job well.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. I am encouraged to learn from my mistakes.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. Teamwork is encouraged & practiced in the organization.

 Strongly Disagree
 Disagree
 Neutral

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  Agree
 Strongly Agree
VII. What you say about these “Suggestion”…

1. What do you find most satisfying about working at the company?

2. What do you find least satisfying about working at the company?

3. What could the company do to enhance your satisfaction as a company

employee?

Date: Signature

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 FINDINGS

Numbers of staff/officers as on 31-3-04= 263

Numbers of staff/officers as on 31-3-05= 260
Number of staff/officers as on 31-3-06= 296

Numbers of persons left during the year 04-05 are 30

Numbers of persons left during the year 05-06 are 53
If we consider avg deployment during Yr04-05 ie avg(263+260)/2= 261
If we consider avg deployment during Yr 05-06 ie avg (260+296)/2= 278
%Attrition on Yearly basis 04-05 is=30/261%= 11%
Monthly it is 0.91%
%Attrition on Yearly basis 05-06 is=53/278%= 19.06%
Monthly it is 1.58%

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 CONCLUSION

A comprehensive study is based upon the exit interview and the details sought there in
have been made for the year 05-06.

It has the datas of the plant only excluding Mumbai and other sales offices/MKT HO.

A: In overall scenario, the following come out as prominent reasons:

Management decision-8/53= 15%

Job profile/ seniority undermined-8/53= 15%
Working environment-7/53= 13.2%
Low salary-7/53= 13.2%
Better prospects/ career growth-7/53= 13.2%

B: Period/grade wise

-Maximum turn over has been in July to Dec. Appx 75%

-Sr. management left in DYB-2, FB-1Common- nil (M-7)
- Middle management (M-4) in DYB-5, FB-2. Common 3
- Junior management (M3/M2) DYB 3, FB-4, Common-3
- Executives (M-1) DYB-0, fb-4, Common-3
- Others (01/02/S1 etc)-DYB-6, FB-4, Common-9

Companies should project retirements and attrition over the next five years. List the
internal and external forces that can contribute to the problem. Then take the worst-case
scenario.

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The main approach to preventing attrition should be grooming leaders, rather than just
treating employees the way it is normally done.

In fact, the companies with leading-edge retention programs address all the areas
mentioned below. According to International Data Corp.'s 9 guru on resourcing strategies,

Michael Boyd, program elements can include the following:

 Ongoing education and training.

 A mix of job assignments.
 The organization of small groups and teams.
 Peer group and mentoring programs.
 Organized career counseling.
 Flextime and other lifestyle benefits, including on-site day care, fitness
clubs and sponsored charity work.
 Internal marketing and communication with employees.

But in case nothing works, the best way is to predict it and act accordingly. Thus prediction
becomes vital.

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 REFERENCES

1. “Why attrition is a chance to prove the value of KM”, Review Briefings, Vol6, Issue1,
March/April2003

2. Drew Robb, Customer Interface March 2002 Issue, P-34,35

3. Purdue University Centre for customer driven quality

4. “Proactive strategies to combat attrition”, Rowan Wilson and Jennifer Wilson, KM

Review, Vol 4, Issue6, Jan/Feb2002

5. “Why attrition is a chance to prove the value of KM” KM Review Briefings, Volume 6
Issue 1March/April 2003, P-10.

6. “Hay Group Study Identifies Training as One of Top 7 Employee Attrition Fighters”
IOMA’s report on managing training & development, April 2002 issue, P-13

7. REDUCING PANEL ATTRITION, By: Hill, Daniel H., Willis, Robert J., Journal of Human
Resources,
0022166X, Summer2001, Vol. 36, Issue 3.

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