A presentation on

Madura Accessories Limited (MAL)

Presented to : Ms. Neha Tikko

Asst. professor

Presented by : Farhan Ali

Mayank Shukla
Ashutosh Awasthi
Sanjay Gupta

About MAL
Hived off from CIVIL in 1992.
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Approx sales turnover Rs. 45 cr.
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Main products were interlining , zips and
needles.
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Main competitors Tata and Bombay dying.
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Products
Interlinings : 50% turnover & 30%
profit.
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Zips : 30% turnover & 40% profit.
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Needles : 20% turnover & 30%
profit.
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Overall Market
Organized ,
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Tata (35% market)
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Bombay dying (35% market)
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MAL (30% market)
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Market cntd.
Unorganized market ,
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Tata (25% market)
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BD (20% market)
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MAL (10% market)
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Local merchants (45% market)
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Supply Chain
MAL produced 85 lakh meters of 200-meter rolls,
using 22 lakh kilos of yarn annually.
Interlinings- material used as an extra lining between
the ordinary lining and the fabric of a garment(for
shaping the garments, also called skeleton of dress)

Bleaching/dyeing are contracted and powder

coating is done in-house

Yarn

Fabric
weaving

Processed
Fabric

Bleach or dye

Interlining
s

Powder coating

Activities
1.Yarn bought from 4 merchants in Madurai
2.Yarn quality checked in Madurai warehouse
3.Issued to contract weavers for conversion to grey
fabric (7 converters in Erode, Coimbatore,
Madurai and Ambasamudram)
4.Grey fabric brought to Madurai warehouse for
and quality checked
5.Grey fabrics issued to bleaching houses for
conversion to white/coloured fabric (3 converters
in Erode, Bhavani and Ambasamudram)

Continued
6. White/colored fabric brought to Madurai warehouse
and quality checked.
7.
Fabrics
issued
to
own
mfg
house
(Ambassamudram) for final processing and coating to
produce interlinings. Then quality checked, packed
and sent to Bangalore central warehouse (CW)
8. Interlinings stocked at Bangalore CW and sent to
the 11 depots as per dispatch advice.
9. Interlining dispatched to customers (garment
factories and distributors/ dealers) as per requirement

Location involved in
Supply Chain

Average Lead Time

Process

Lead time ( in weeks)

Yarn (madurai)

weaving

Grey fabric (madurai)

bleaching

Bleaching fabric (madurai)

process

1/2

Coated interlining (bangalore)

depot

Supply Chain
Material/Process

Cost (Rs/mtr)

Yarn

17.75

Weaving

2.25

Bleaching

3.50

Final processing

7.00

Transportation

0.25

Excise duty

10.00

Selling price

48.00

Total cost= Rs. 45/mtr (based on average Rs. 7000/truckload of 6 tonns/movement.

Dilemma

Whether we are in business of converting yarn or

in the business of supplying interlinings to their
customers ??

Major Problems Identified

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Inconsistency of input.
Inspection costs.
Losses.
Financing the pipeline.

Inconsistency in input
Yarn
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Quality
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uniformity.

P1

S1

S2
P2

MAL
S3

S4

P3

Weaving
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Fabric
weight &
the grey fabric.

Bleaching
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Whiteness
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uniformity.

Inspection costs
Material

Costs(p/mtr)

Yarn

3.1 p/kg

Fabric

14.0 p

Bleached fabric

20.0 p

Final product

24.0 p

Losses
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Rejects were not always attributable to specific

convertor.
Repeated transport and handling.
'Salvage' product ie fents, rags and chindies.
100 units yarn => 90 unit woven fabric => 85 unit
sold at depot.
Out of 5, 3 contained fents and rags (sold at Rs.
120/kg) and rest 2 chindies (at Rs. 10/kg).

Financing the pipeline

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Wastage convertors,
Reconciliation efforts between purchase orders
and subsequent receipts.
Efforts taken to assign responsibility for rejects
and reconditioning.

Proposed Supply Chain

Sourcing of fabrics
1.White fabric (30 percent)
2.Grey fabric (70 percent)
.Grey fabric dispatched directly to bleaching houses
at two locations
1.Ambasamudram (70 percent)
2.Bhavani (30 percent)
.For final processing and coating to produce
interlinings white and bleached gray fabric sent
directly
to
their
own
manufacturing
houses(ambasamudram)

To be continued
Quality of the fabric would be checked, packed and
sent to Madurai.
Interlinings of the fabric would be stocked at
Madurai and sent large volume depots, smaller
volume requirements would be sourced from the
nearest large depot as per requirements.

Arguments In favor of supply chain

Less problems due to variations across suppliers.
Reducing customer complaints due to better
customer satisfaction and motivation.
After pre delivery inspection they delivered the
required materials per specification.
Supplier paid extra charges for the inspection.
There would be significant savings for materials:1.Reduced inspection cost.
2.Reduced wastage due to fewer handling.
3.Lower financial commitment due to shorter supply
chain and longer credit from suppliers up to 60

Implementing issues on supply chain

Suppliers would be selected on the quality basis,
past records and on inspection reports.
Negotiations would have to be held with them for
appropriate quality guarantees.

Thank You