Part-I: General Information

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Chapter 1: Introduction of Organization

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1.1 Mission, Vision & Aim

To provide continuous value through innovation, expertise, excellence & attain highest level of customer satisfaction.

Their aim is to exceed the expectations of the customers in terms of quality and achieve the goal of being preferred supplier. The responsibility therefore rests within each department and ultimately with each individual employee.

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1.2 Name & Address of office & plant

Name: Chiripal group of companies. Corporate Office: "Chiripal House", Shivranjani Cross Roads, Satellite, Ahmedabad - 380 015. Gujarat, INDIA. +91 - 79 - 2673 4660 / 62 / 63 +91 - 79 - 2676 8656 corporate@chiripalgroup.com

Name: Chiripal Industries Ltd. (Fabric division) Plant: Saijpur-Gopalpur, Pirana road, Piplej, Ahmedabad - 382 405. Gujarat, INDIA. +91 - 79 -25714568,1655, 0886 +91 - 79 - 2571 4569 shanti@chiripalgroup.com

Name: Nandan Exim Ltd. Plant & Regd. Office Survey No. 198/1 & 203/2, Saijpur-Gopalpur, Pirana road, Piplej, Ahmedabad - 382 405. Gujarat, India.

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+91 - 79 - 98258 00199 +91 - 79 - 2571 1755 nandan@chiripalgroup.com

1.3 History of Company

Chiripal Group, Incorporated in the year 1972, is a professionally managed business entity comprising of a team of professionals from different fields and expertise.

The Group, which had started with a few power looms, has evolved into multiactivity, multi-product Textile House that produces fiber to apparel under one roof.

The diversified business in the fields of Petrochemicals, Spinning, Weaving, Knitting, Fabric Processing, Chemicals, Infrastructure and Educational Initiatives offer employment to more than 20000 people associated directly or indirectly with the Group.

With clear focus and ambitious growth plans on the anvil, the Group has been gearing itself to take on the future challenges.

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1.4 & 1.5 Organizational structure & Name of chairman & board of directors.
(1) Mr. Vedprakash Chiripal is the Chairman and Managing Director of Chiripal Industries Limited. He has obtained his Bachelor of Commerce degree from Calcutta University. He has an experience of 37 years in the textile industry. Mr. Vedprakash Chiripal is also Director in Nova Petrochemicals Limited and Chairman of Nandan Exim Limited. He is trustee of Chiripal Charitable Trust, Udgam Trust (Udgam High School), Agrawal Seva Samiti, Maharaja Agrasen School, Agrawal Seva Sansthan and Agora Vikas Trust. He is known for his financial acumen and he drives the Chiripal Group with his insights and vision. He oversees strategic expansion initiative, business development and supervises the finance of the group.

(2) Mr. Jaiprakash Chiripal is the Whole-Time Director of Chiripal Industries Limited. He has obtained his Bachelor of Commerce degree from Gujarat University. He has an experience of 22 years in the textile industry. Mr. Jaiprakash Chiripal is also a Director of Chiripal Enterprise Limited. He is a trustee of Chiripal Charitable Trust. He plays the key role in expansion and implementation of projects. He is a key person for overall supervision of policies laid down by the Board actively contributes in recruiting quality Human Resource.

(3) Mr. Jyotiprasad Chiripal is also a Director of Chiripal Industries Limited. He has obtained his Bachelor of Commerce degree from Gujarat University. He has an

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experience of 25 years in the textile industry. Mr. Jyotiprasad Chiripal is Managing Director of Vishal Fabrics Private Limited. (4) Mr. Brijmohan Chiripal is the Managing Director of the Chiripal Industries Limited. He is a graduate in Chemical Engineering and has almost 20 years of experience in textile. (5) Mr. Bharat Bhushan Agarwal is CEO of Vishal Fabrics Private Limited. He is a graduate. He has vast experience of 30 years in the textile industry. His expertise is in overseas marketing of fabric and home-furnishing and also new customer development for our processing division. (6) Mr. Deepak Chiripal is the Chief Executive Officer of Nandan Exim Limited. He has been developing the export business and domestic market of the company and is also in charge of overall administration and supervision of the production and operations department. (7) Mr. Vishal Chiripal is CEO of Chiripal Industries Limited. He holds a Bachelors Degree in Business Administration from K.S School of Business management, Ahmedabad and Adelphi University, New York. He also holds a Masters Degree in Business Management [Marketing] from Clark University, Boston, USA. He has been a key person in developing new areas of business and exploring new markets. (8) Mr. Rajesh Bindal is Executive Director of Chiripal Industries Limited. He has obtained his Bachelor of Commerce degree from Gujarat University. He has an experience of 14 years in the textile industry. His expertise is in marketing and new customer development for our processing division.

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(9) Mr. Amit Bindal is a managerial key person of Chiripal Industries Limited. He is a commerce graduate from Gujarat University. He has an experience of more than 10 years in the field of Textiles.

1.6 Products

Shirting Fabrics Synthetic Fabrics Cotton Hosiery Poly Knits Bottom weight Fabrics Denims Polar Fleece Flock Fabrics Bed sheets Embroidered Fabrics Chemical Products

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1.7 Corporate Social Responsibilities

As a responsible "corporate citizen" they are engaged in various social welfare activities. Through their social commitment they intend to promote initiatives, for the educational and health awareness amongst the weaker sections of the society. Every year they organize voluntary Blood Donation drive with the support of Prathama Blood Centre, at corporate office and all over the Group units. This year on 15th July, 2011, they have been able to collect more than 1200 bottles of the blood through voluntary donation and active participation of their Staff members and Workers. This was the great opportunity for every one of them to demonstrate one's dedication and commitment to the society.

1.8 Major achievement of the organization.

2010 1. Residential project with 3 BHK luxurious flats "Shanti Botanica" has been launched in Gandhinagar. 2. Incorporated Shanti Juniors Pre-schools, Shanti Asiatic School and Shanti Business School. 3. As an effort of the group to contribute towards social cause, Shanti Educational Initiatives (SEI) has been conceived. 4. Three units manufacturing warp knit fabrics, PP woven sacks and corrugated boxes started operations in our textile park - Vraj Integrated Textile Park (VITP). 5. Captive Power Plant of 25 MW capacity has become operational in Piplej.

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6. 53 Tsudakoma Air jet looms have been annexed in group companies to enhance production capacity of Bottom-weight and Denim fabrics. 7. Production capacity of flock fabrics have been scaled up with the commissioning of a state-of-the-art fully integrated coating/flocking line from Europe. 2009 1. Substantially enhanced processing capacity by installing Reggiani Printing Machine, Tong Geng Jet Dyeing Machine, additional CBR & CDR line. 2. Chiripal launches branded bedsheet range Commencement of CBR, CMR and CDR Production. 2008 1. Nandan Exim Ltd. receives Certificate of Merit from SRTEPC for substantial growth in exports. Nandan Exim Ltd. brought Right issue of Rs. 45.5 crore to expand denim capacity and setup Captive Power Plant. Chiripal sets up Vraj Integrated Textile Park in Ahmedabad. 2007 1. Acquired all the aspects of M/s Arunoday Mills Ltd. under SARFAESI Act from IDBI Bank. 2006 1. Chiripal Industries Ltd. (Processing Unit) amalgamated with Chiripal Petrochemicals Ltd. and the name of amalgamated entity changed to Chiripal Industries Ltd. Setup of embroidery division with Shiffli machines.
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2005 1. Nandan Exim Limited enters the capital market with an IPO of Rs. 12 crore and established denim manufacturing plant. Cotton hosiery plant began its operations at Chiripal Industries Ltd. Captive Power Plant installed at Chiripal Industries Ltd. 2004 1. Production of 100% cotton and blended cotton fabrics started at Nandan Exim Limited. Paper tube manufacturing began at Chiripal Industries Ltd. Manufacturing facility for process chemicals and binders established at Chiripal Industries Ltd. Warp knit fabrics division became operative at Chiripal Industries Ltd. 2001 1. Flocked Fabrics Division established at Chiripal Industries Ltd. (Processing Unit) 2. Flock fabrics division established at Chiripal Industries Ltd. Started manufacturing of polar fleece fabrics. Production of texturised yarn started at Chiripal Industries Ltd. 2000 1. Polyester knit fabrics division established at Chiripal Industries Ltd. 1995 1. Nova Petrochemicals Ltd. started production of polyester partially oriented yarn.
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1994 1. Incorporated Nandan Exim Pvt. Ltd. 1993 1. Establishment of joint venture company Nova Petrochemicals Ltd. 1988 1. International marketing division established and export activity initiated. 1985 1. Chiripal Industries Ltd. (Processing Unit) established at Piplej, Ahmedabad. 1976 1. The first venture Chiripal Textiles mills Ltd. established at Narol, Ahmedabad. 1972 1. Chiripal Group's foundation laid with a few power looms.

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1.9 Future Plans of the Company

In coming years, Chiripal has plans to increase cotton/polyester knits capacity. The group also plans to further consolidate its backward integration plan by enhancing cotton spinning capacities and putting up a Polyester chip plant.

Projects are in final stages to put up manufacturing capacities for flexible packaging materials in VITP. The group plans to put up a Power plant of 10 MW in the Vraj Integrated Textile Park to reap benefit of cheap power. In Education business area, the next venture on cards is a world class PG engineering institute.

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Chapter 2: Industry Information

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2.1 Introduction to Industry

Pursuing its ambitious plans of expansion, Chiripal Group laid foundations of ultra-modern 100% cotton & blended bottom wear fabrics and the most modern & versatile denim manufacturing project called Nandan Exim Limited.

Nandan Exim Limited is housed with one of the most sophisticated weaving plants and other facilities to manufacture superior quality gray cotton fabrics, khakhis and denims.

The products manufactured by Nandan Exim Limited are primarily intended for sufficing the needs of the leading customers of the country and exports to the developed markets of the West and South East Asia, Europe & America.

The plant manufactures 100% cotton piece dyed fabric, blended cotton fabric and denim keeping in tune with the fashion and market trends.

Also manufactured are fabrics of different weaves, dyes, combination of yarns, weights etc. These fabrics find applications in various outfits and garments. The range of fabrics include denim, twills, stretch, bull denim, broken twills.

The products manufactured at Nandan Exim Limited are primarily marketed in International as well as Domestic market. Within a short span of one year, the company has been able to supply its products to renowned national players as well as exporters. The marketing efforts are concentrated towards having a presence among various customer groups in the international arena like the garment manufacturers, importers, distributors, etc. and the readymade garment exporters,
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renowned brands, distributors & stockiest in the national market.

Customer is the heart of all the endeavors, be it sales, marketing, quality control or R&D. So they continually exert to meet and exceed their Customer's expectation.

At Nandan Exim Limited, they believe that a healthy environment is vital to the healthy existence of current and future generations and that one can't build a strong economy at the cost of endangering the environment. They also believe that both, the manufacturers and the consumers alike must be concerned about the environment and that the preservation of the environment is not a one-time job, but a never-ending process.

2.2 Industry situation in India

Nandan Exim Ltd. Comes at 3rd position in Indian denim manufacturing companies.

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2.3 Major Competitors & Market Shares

Major Competitors
Aarvee Denims and Exports Ltd. Arvind Ltd. K G Denim Ltd. Nivea Garden Ltd. Reliance textile ltd.

Market Shares/Share holding pattern

Holder's Name
Promoters General public Other Companies Foreign institutes Foreign NRI

No of Shares
25454551 14095669 4161040 1700000 137796

% of Shares
55.88% 30.95% 9.14% 3.73% 0.30%

Total

45549056

100.00%

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Part-II Introduction to Functional Areas

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Chapter 3: Production Management

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3.1 Major & Sub products

Denims. Gray cotton fabrics Khakhis.

3.2 Production Process

Spinning (Thread making)
Polyester chips are use to make thread by mixing the chips with oil in drier plant. This drier is cleaned every month. The chips gets mixed & heated, then melted due to heat & converted to polymers. Then, these polymers are cleaned in the cleaning department. After cleaning, the polymers are stretched and the thread is produced. A sample of chips is taken from every baggage for testing the quality in the lab. Different test are done on the chips to know about the quality of the chips e.g. to test % of moisture of oil chips & if any sample is not passed in the test, then the whole baggage is sent back to the respective chip manufacturing company.

Drawing
After extrusion from the spinneret, the fibers are drawn or elongated, with the help of geodes wheels. Depending upon the desired properties, the polyester fibers are usually drawn up to five times its original length. For higher tenacity, the filaments are drawn to a greater extent. When the fibers come in contact with the air, they solidify. Usually, the PET fibers are drawn hot as it produces more uniform fibers. PCDT fibers are drawn at higher temperature due to their higher melting point. During the drawing process itself, fibers may be textured which saves time, efforts
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and production cost and also gives greater quality control over the finished fibers. After the polyester yarn is drawn, it is wound on large bobbins or flat-wound packages, ready to be woven into material. In NANDAN EXIM two types of yarns are produced to make denim with the help of winder machine. (1) POY i.e. Partially Oriented Yarn. (2) FDY i.e. Fully Drawn Yarn.

Fabric Making

The bobbins are sent to the processing department for the final process of fabric making. Sizing machines are use for beaming of fabric in which no water but only chemicals are used. The plant uses the machine of JUPITER COMPANY for beaming. After beaming, the material goes into the looms to make final fabric. It takes 3-4 hours to make 1 ton fabric.

Cleaning, Folding, Packaging & Distribution Process

The finished fabric sent to cleaning department to clean the fabric with help of chemicals to give it a finishing look. After drying the cleaned fabric, it is sent to the folding department were the fabric is folded for distribution. The fabric is then kept in the storage for some time. The storage has the capacity to keep 3-4 tones of fabric for distribution. When the company gets the order the fabric is sent from storage to the packing department for the packing of fabric rolls. The fabric is then transported by different means which are on contract basis.

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3.3 Raw Material & sources

POLYMER CHIP is the most important raw material to produce polyester fabric.

Sources Reliance Alok Nakoda Kbm Garden.

These companies provide raw material to NANDAN EXIM

3.4 Plant location & address

Name: Nandan Exim Ltd. Plant & Regd. Office Survey No. 198/1 & 203/2, Saijpur-Gopalpur, Pirana road, Piplej, Ahmedabad - 382 405. Gujarat, India. +91 - 79 - 98258 00199 +91 - 79 - 2571 1755 nandan@chiripalgroup.com

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3.5 Inspection & quality control

To maintain the company's competitive position in national as well as international market, stringent quality policy is maintained and implemented at all levels of the organization in order to achieve highest standards of excellence. At Nandan Exim, they adopt stringent quality policy to ensure quality products of highest standards, timely services and customer satisfaction. Well-defined TQM policy is adhered at all levels of production and manufacturing under strict supervision of highly qualified personnel. TQM system includes timely delivery and optimum quality, at the most reasonable prices. Latest technology, skilled manpower and excellent human relations adopted by the promoters help in delivering an ultimate quality product in order to achieve the goal. Their manufacturing unit always keeps abreast with the latest technological developments and innovates to match the market trends in terms of quality and choice. Equipments and processes are either replaced or refurbished as and when necessary to cater to their customer's requirements.

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3.6 Utilities
In the process of denim fabric manufacturing following things are utilized: Electricity- 6 kHz/per day. Water- 10 lac litre/per day. Coal- 54 tons/ day. Lignite- 150 tons/ day. Transportation- on contract basis

3.7 Disposal of waste

The disposable waste is disposed in the boiler & rest is dumped in the nearby area. NANDAN EXIM is also a non polluted company. They honor the places where they do business by endeavoring to become the foremost industrial name in preserving ecology, the corporation that cherishes nature and restores the environment. To attain the objectives they have indigenously developed processes and equipments that either reduce or completely eliminate pollution.

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Chapter 4: Human Resource Management

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4.1 Total Number of Employees & Shifts

There are in all 7000-8000 workers in Chiripal Group industry out of which 5012000 workers are in NANDAN EXIM Ltd. The Factory runs continuously thus worker have to come in between two shifts i.e. morning shift & night shift.

4.2 Organizational chart

Board of Directors

V.P. Production

Company Secretary

Manager (Finance)

Manager (Civil)

V.P. Marketing

Chief Accountant

Store officer

Factory Manager

Manager (costing)

Assistant

Assistant

Dy. Manager Engineers Supervisor Commercial

Managers Procurement

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4.3 Recruitment Method

Nandan Exim Ltd. Uses both the way of recruitment i.e. Internal & External. Internal Sources They use internal references from their employees for the process of recruitment. External Sources The company also relies on some external sources for recruitment. They are: Advertisement in Newspaper Online (internet) Advertisement Employment Exchange Employment of Labour contractors on commission bases Taking help of recruitment consultants as a last resort.

4.4 Selection & Training method

Selection Process The company uses the standard process of selection. It consists of the following stages. Preliminary interview Selection test Employment interview Reference & Background Analysis Selection Decision Physical examination
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 Job offer Employment Contract Training Process The necessary drive is developed in the employee force by tapping their talents and facilitating job enrichment and skill enhancement. The Training Initiative provides a forum where training methods across the organization are benchmarked into structured programs. Training is given to the employee as per the job description of the company & company norm. Normally they use to give both ON JOB TRAINING & OFF JOB TRAINING.

4.5 Performance Appraisal

Performance of all the employees is praised according to the done by them.

4.6 Safety & Welfare Activity

They strive to provide an injury-free work environment. All the production equipments are designed to meet the stringent safety requirements and standards. A regular computerized maintenance of all equipments ensures minimization of equipments failures and accidents. All their employees are educated about hazards related to heat, machinery.

The whole Chiripal Group is committed to provide the leadership and resources for a Health and Safety Program that protects its workers from adverse exposures to hazards and prevents occupational injuries and illnesses. Since their manpower is

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trained in first -aid and safety drills they are well equipped to face & avert any unforeseen medical emergency.

4.7 Trade Union Activity

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Chapter 5: Marketing Management

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5.1 Products
Brand name & logo

Textile Products portfolio Circular knitted fabric Warp knitted fabric Flocked fabric Polar fleece Woven Denim & khakhis Embroidery Cotton hosiery Garments

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5.2 Product Range list

Circular knitted fabric Polyester Single Jersey Cotton Double Jersey Polyester Double Jersey Polyester Rib Cotton Single Jersey Cotton Rib Warp knitted fabric Tricot Flocked fabric Plain Printed Flock on Flock Embossed Print on Embossed Cot Flock Polar fleece Drop Needle Pique Fleece Terry Fleece Vellour Fleece Plain Polar Fleece Printed Polar Fleece

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Woven Plain Dyed Printed Denim & khakhis Denim Twills left hand and right hand, Tussore/Canvas, Herring bone, Broken Twill, Cords, etc. Cotton x Polyester, Cotton x Micro, Cotton x Lycra, etc. Qualities starting from 6.5 Oz to 14.75 Oz Flat finishes, Soft finishes, full blotch, Other special finishes Khakhis Twills, Canvas, Tussore, Cavillary Twills, Ottoman, Bedford Weaves cord, Rib stop, P.Q cord, Sateen, Poplin, Full Panama, Oxford, Herring bone, etc. Blends Plies Yarn Types Weights 1005 cotton, Cotton x Polyester, Cotton x Lycra, Cotton x Tencel, Cotton x Linen, Cotton x Polyester filament, etc. Single ply, 2 ply, 3 ply Open End, Ring Spun, Multi count and Amslers 8 Ozes to 14.5 Ozes in bottom weight; 4 Ozes to 6 Ozes in shirting Embroidery Cotton Allovers Net Allovers
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Weaves Blends Weights Finishes

 T. C. Laces Cotton Laces Pallas Guipure Laces Dress Materials Denims Embroidered Fabric All types of Trims Cotton hosiery Garments Shirts, Jackets, Bathrobes, T-Shirts, Night Wears, Ladies Tops, Capri Ladies Dresses.

5.3 Pricing Policy

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5.4 Distribution Channel

Manufacturer

Wholesaler

Customer

The company uses this type of distribution channel to supply their product to customers. The company does not have any retail outlet for distribution. The Chiripal Textiles Industry is an export intensive industry and about one third of its total production is exported in some form or the other, through export friendly government policies and positive effort by the exporting community. The 50 percent exports of the entire textile are the readymade garments, most of which is cotton, readymade garments and accessories. This is followed by handicrafts, Silk Products, Woolen Textile. The annual export of the approx. 20 crores.

5.5 Promotion Strategies

Advertising The company does not use any advertising medium to increase its sales.

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Chapter 6: Swot Analysis

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SWOT ANALYSIS

Strengths Indian Textile Industry is an independent and self reliant industry. Availability of low cost and skilled manpower provides competitive advantage to industry. India has great advantage in spinning sector and has a presence in all process of operation and value chain. Industry has large and diversified segments that provide wide variety of products. Growing economy and potential domestic and international market. Industry has manufacturing flexibility that helps to increase the productivity.

Weaknesses Indian Textile Industry is highly fragmented industry. Industry is highly dependent on cotton. Lower productivity in various segments. Lack of technological development that affect the productivity and other activities in whole value chain. Higher indirect taxes, power and interest rates.

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Opportunities Growth rate of domestic textile industry is 6 8 % per annum. Large, Potential domestic and international market. Product development and diversification to cater global needs. Increased disposable income and purchasing power of indian customer opens new market development. Emerging retail industry and malls provide opportunities for the apparel, handicraft and other segments of the industry. Greater investment and FDI opportunities are available.

Threats Competition from other developing countries. Continuous quality improvement is the need of the hour as there are different demand patterns all over the world. Geographical disadvantages. International labour and environmental laws. To balance the demand and supply. To make balance between price and quality.

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Chapter 7: Conclusion & Findings

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Conclusion

Our overall impression about the unit is inexpressible. In this report after analyzing we can conclude that Chiripal Textile industry is progressive very rapidly in the Indian market. The performance of the unit is very impressive in the past year. At present Chiripal Textile Industry is popular. 43 years is a very big time for any brand to establish itself successfully in the market. This gives us golden opportunity to know all the functional area of Chiripal Textile industry. We had known about the products of Chiripal Textile industry, their quality, packaging, and price.

Hope and wise that the success story of Chiripal Textile industry going forever and other industries should take inspiration from this successfully story. We are sure and confident that successor capable and innovative my best wishes for future success of the industry is an important part of our visit.

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Bibliography
Ive got this helpful information from the Production manager Mr. Alok Agarwal & Production Supervisor Mr. Shanti Parmar and Im very thankful to them. Ive also taken the help of various company reports published on internet i.e. Annual Report 2010-2011, Draft of Prospectus, etc. A marketing report on Chiripal industries made by one of my senior also helped me a lot. Ive also uses different e-sources for detailed information. Some of the websites are follows: www.google.co.in www.chiripalgroup.com www.indiainfoline.com www.sebi.gov.in , etc.

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