AN ORGANIZATION STUDY ON THE RAJLAKSHMI

COTTON MILLS PVT LTD, KOLKATA

SUMMER INTERNSHIP PROJECT

Submitted in partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

By
MONISHA M
Reg.No: 1920301072
BATCH OF 2020 – 2022

Department of Management Studies

SONA COLLEGE OF TECHNOLOGY
An Autonomous Institution, Affiliated to Anna University, Chennai
Salem – 636 005

OCT/NOV 2021
 DEPARTMENT OFMANAGEMENT STUDIES
SONA COLLEGE OF TECHNOLOGY
(An Autonomous Institution)

OCTOBER/NOVEMBER 2021

This is to certify that the report entitled “AN ORGANIZATION STUDY ON

THE RAJLAKSHMI COTTON MILLS PVT LTD, KOLKATA” is the
bona fide summer project work done by

MONISHA M
Reg. No. 1920301072
of MBA degree during the year 2020-2022

Faculty Guide Director

Submitted for the project Viva-Voce examination to be held on ____________

Internal Examiner External Examiner

 DECLARATION

I affirm that the summer project work report titled “AN ORGANIZATION STUDY
ON THE RAJLAKSHMI COTTON MILLS PVT LTD, KOLKATA” being submitted in
partial fulfillment for the award of Master of Business Administration is the original work
carried out by me. It has not formed the part of any project work submitted for award of any
degree or diploma, either in this or any other university.

(Signature of the student)

MONISHA M,

Reg. No. 1920301072

 ACKNOWLEDEMENT

First, I express my gratitude to Mr. PRATIT JAISWAL, HR Manager for giving me an

opportunity to work with them and make the best out of my internship. I specially thank my
trainers, for constantly guiding and supporting me throughout the training period.

I acknowledge with sincere gratitude our respected principal Dr. S.S.R. SENTHIL KUMAR,
Principle of Sona College of Technology and the management for providing me an opportunity
to undergo the Degree and to undertake this project work.

I express my sincere thanks to my respected Joint Director Dr. P.K. ANJANI, Joint Director,
Department of Management studies, for her esteemed and distinguished guidance and giving
me the opportunity to express my idea and thoughts through this project work.

I acknowledge my deepest of sense of gratitude to Mr. S. SARAVANAN, Assistant professor,

Department of Management Studies, for his distinguished guidance and for giving me the
opportunity to express my ideas and thoughts through this project work.
 TABLE OF CONTENTS

LIST OF CONTENTS PAGE NO

LIST OF TABLES AND FIGURES I

1. INTRODUCTION
1.1 About the Project 01

1.2 Objectives of the Project 02

1.3 Limitation of the Project 03

2. ORGANIZATION
2.1 Industry Profile 04

2.2 Company Profile 13

3. FUNCTIONAL DEPARTMENTS
3.1 Production Department 30

3.2 Human Resource Department 36

3.3 Marketing Department 40

3.4 Finance Department 45

4. FUTURE OUTLOOK
4.1 SWOT Analysis 48

4.2 Suggestions 50

CONCLUSION 51

BIBLIOGRAPHY 52
 LIST OF TABLES AND FIGURES

S.NO CONTENTS PAGE NO

1 Global Scenario 09

2 The Textile and Apparel supply chain 11

3 Company Profile 13

4 Carding & Spinning 15

5 Cotton Trivia 16

6 Knitting 18

7 Weaving 19

8 Garments 21

9 Fashion 22

10 Baby and Children’s Garments 22

11 Promotional Items 23

12 Flatknits 24

13 Kids Wear 27

14 Casual Wear 27

15 Sports Wear 28

16 Golf Wear 28

17 Knitting Quality 29

18 Fabric Dyeing 30

19 Yarn Dyeing 30

20 Color Lab 31

21 Compacting 31
22 Fabric Mercerizing 32

23 Production 33

24 Embroidery 33

25 Washing 34

26 Marketing 37

27 Marketing Plan 39

28 Component of plan 40
 CHAPTER I

INTRODUCTION

1.1 ABOUT THE PROJECT

In plant training is an integral part of MBA program, because it gives us the

practical knowledge of what we have learnt during our study period. But practical
knowledge is also necessary along with the theoretical knowledge.

One can see how the theories and knowledge are being practically implemented. This
report is about a garment industry. I prepared this report carried the information about all
department in the organization and necessary information’s of the company.

Training is the process of learning a sequence of programmed behavior. It is an

application of knowledge. It gives people an awareness of the rules and procedures to
guide their behavior.

Development is a related process. It covers not only those activities which improved
job performance, but also those which bring development of their personalities to help
individual’s progress towards the actualization of their potential capabilities.

Education is the understanding and interpretation of knowledge. Education imparts

qualities of mind and character and understanding of basic principles and develops the
capacities of analysis, synthesis and objectives.

As an MBA student, I inspired for studying various department and their contribution
to the successful running of factory.

1
1.2 OBJECTIVES OF THE PROJECT

➢ To analyse the effectiveness of RCM Garments and give their commendation to

improve existing sales and production.

➢ To study the student’s efforts how to attend the customers by the company.

➢ To study and analyse the production performance of RCM Garments

➢ To study the swot analysis of organization function and departments.

2
1.3 LIMITATION OF THE PROJECT

➢ Short duration of the study.

➢ Limited details given by the officers.

➢ Confidential nature of certain data.

➢ Busy and tight schedules of the departmental heads and supervisors restricted flow of

information.

➢ Even then efforts and care were taken to carry out the study in systematic manner and

to make the result of the study reliable and useful one.

3
 CHAPTER II
ORGANIZATION

2.1 INDUSTRY PROFILE

The Indian textile industry is one of the largest in the world with a massive raw
material and textiles manufacturing base. Our economy is largely dependent on the textile
manufacturing and trade in addition to other major industries. About 27% of the foreign
exchange earnings are on account of export of textiles and clothing alone. The textiles
and clothing sector contributes about 14% to the industrial production and 3% to the gross
domestic product of the country. Around 8% of the total excise revenue collection is
contributed by the textile industry. So much so, the textile industry accounts for as large
as 21% of the total employment generated in the economy. Around 35 million people are
directly employed in the textile manufacturing activities. Indirect employment including
the manpower engaged in agricultural based raw-material production like cotton and
related trade and handling could be stated to be around another 60 million.

A textile is the largest single industry in India (and amongst the biggest in the
world), accounting for about 20% of the total industrial production. It provides direct
employment to around 20 million people. Textile and clothing exports account for one-
third of the total value of exports from the country. There are 1,227 textile mills with a
spinning capacity of about 29 million spindles. While yarn is mostly produced in the
mills, fabrics are produced in the power loom and handloom sectors as well. The Indian
textile industry continues to be predominantly based on cotton, with about 65% of raw
materials consumed being cotton. The yearly output of cotton cloth was about 12.8 billion
m (about 42 billion ft).

The manufacture of jute products (1.1 million metric tons) ranks next in
importance to cotton weaving. Textile is one of India’s oldest industries and has a
formidable presence in the national economy inasmuch as it contributes to about 14 per
cent of manufacturing value-addition, accounts for around one-third of our gross export
earnings and provides gainful employment to millions of people. They include cotton and

4
 jute growers, artisans and weavers who are engaged in the organized as well as
decentralized and household sectors spread across the entire country.

INDIAN TEXTILE INDUSTRY STRUCTURE AND GROWTH

India’s textile industry is one of the economies largest. In 2000/01, the textile and
garment industries accounted for about 4 percent of GDP, 14 percent of industrial output,
18 percent of industrial employment, and 27 percent of export earnings (Hashim). India’s
textile industry is also significant in a global context, ranking second to China in the
production of both cotton yarn and fabric and fifth in the production of synthetic fibers
and yarns.

In contrast to other major textile-producing countries, mostly small-scale,

nonintegrated spinning, weaving, cloth finishing, and apparel enterprises, many of which
use outdated technology, characterize India’s textile sector. Some, mostly larger, firms
operate in the “organized” sector where firms must comply with numerous government
labor and tax regulations. Most firms, however, operate in the small-scale “unorganized”
sector where regulations are less stringent and more easily evaded.

The unique structure of the Indian textile industry is due to the legacy of tax,
labor, and other regulatory policies that have favored small-scale, labor-intensive
enterprises, while discriminating against larger scale, more capital-intensive operations.
The structure is also due to the historical orientation towards meeting the needs of India’s
predominately low-income domestic consumers, rather than the world market. Policy
reforms, which began in the 1980s and continued into the 1990s, have led to significant
gains in technical efficiency and international competitiveness, particularly in the
spinning sector. However, broad scope remains for additional reforms that could enhance
the efficiency and competitiveness of India’s weaving, fabric finishing, and apparel
sectors.

STRUCTURE OF INDIAS TEXTILE INDUSTRY

Unlike other major textile-producing countries, India’s textile industry is
comprised mostly of small-scale, nonintegrated spinning, weaving, finishing, and apparel-
making enterprises. This unique industry structure is primarily a legacy of government
policies that have promoted labor-intensive, small-scale operations.
5
Composite Mills Relatively large-scale mills that integrate spinning, weaving and,
sometimes, fabric finishing is common in other major textile-producing countries.

In India, however, these types of mills now account for about only 3 percent of output in
the textile sector. About 276 composite mills are now operating in India, most owned by
the public sector and many deemed financially “sick.”

➢ Spinning is the process of converting cotton or manmade fiber into yarn to be used
for weaving and knitting. Largely due to deregulation beginning in the mid-1980s,
spinning is the most consolidated and technically efficient sector in India’s textile
industry. Average plant size remains small, however, and technology outdated,
relative to other major producers. In 2002/03, India’s spinning sector consisted of
about 1,146 small-scale independent firms and 1,599 larger scale independent units.

➢ Weaving and knitting converts cotton, manmade, or blended yarns into woven or
knitted fabrics. India’s weaving and knitting sector remains highly fragmented, small-
scale, and labor-intensive. This sector consists of about 3.9 million handlooms,
380,000 “power loom” enterprises that operate about 1.7 million looms, and just
137,000 looms in the various composite mills. “Power looms” are small firms, with an
average loom capacity of four to five owned by independent entrepreneurs or
weavers. Modern shuttle less looms account for less than 1 percent of loom capacity.

➢ Fabric Finishing (also referred to as processing), which includes dyeing, printing,

and other cloth preparation prior to the manufacture of clothing, is also dominated by
a large number of independent, small-scale enterprises. Overall, about 2,300
processors are operating in India, including about 2,100 independent units and 200
units that are integrated with spinning, weaving, or knitting units.

➢ Clothing Apparel is produced by about 77,000 small-scale units classified as

domestic manufacturers, manufacturer exporters, and fabricators (subcontractors).

GROWTH OF TEXTILE INDUSTRY

India has already completed more than 50 years of its independence. The analysis
of the growth pattern of different segment of the industry during the last five decades of
6
 post-independence era reveals that the growth of the industry during the first two decades
after the independence had been gradual, though lower and growth had been considerably
slower during the third decade.

The growth thereafter picked up significantly during the fourth decade in each and
every segment of the industry. The peak level of its growth has however been reached
during the fifth decade i.e., the last ten years and more particularly in the 90s. The Textile
Policy of 1985 and Economic Policy of 1991 focusing on the direction of liberalization of
economy and trade had in fact accelerated the growth in 1990s. The spinning spearheaded
the growth during this period and man-made fiber industry in the organized sector and
decentralized weaving sector.

ROLE OF INDIAN TEXTILE INDUSTRY IN THE ECONOMY

Textile industry plays a significant role in the economy. The Indian textile
industry is one of the largest and most important sectors in the economy in terms of
output, foreign exchange earnings and employment in India.

It contributes 20 per cent of industrial production, 9 per cent of excise collections,

18 per cent of employment in industrial sector, nearly 20 per cent to the country’s total
export earnings and 4 per cent ton the GDP. The sector employs nearly 35 million people
and is the second highest employer in the country.

The textile sector also has a direct link with the rural economy and performance of
major fiber crops and crafts such as cotton, wool, silk, handicrafts and handlooms, which
employ millions of farmers and crafts persons in rural and semi-urban areas. It has been
estimated that one out of every six households in the country depends directly or
indirectly on this sector.

India has several advantages in the textile sector, including abundant availability of raw
material and labour. It is the second largest player in the world cotton trade. It has the largest
cotton acreage, of about nine million hectares and is the third largest producer of cotton fiber in
the world.

7
 It ranks fourth in terms of staple fiber production and fourth in polyester yarn production.
The textile industry is also labour intensive, thus India has an advantage.

INDIAN TEXTILES OVERVIEW

Indian Textile Industry contributes about 11 percent to industrial production, 14
per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's
total export earnings.

It provides direct employment to over 35 million people, the second largest

provider of employment after agriculture. Besides, another 54.85 million people are
engaged in its allied activities.

The fundamental strength of this industry flows from its strong production base of
wide range of fibres / yarns from natural fibres like cotton, jute, silk and wool to synthetic
/man-made fibres like polyester, viscose, nylon and acrylic.

We can just track the strong multi-fibre strong base by highlighting the following
important positions reckon by this industry across globe are :

➢ Cotton – Second largest cotton and cellulosic fibres producing country in the world.
➢ Silk – India is the second largest producer of silk and contributes about 18% to the total
world raw silk production.
➢ Wool –India has 3rd largest sheep population in the world, having 6.15 crores sheep,
producing 45 million kg of raw wool, and accounting for 3.1% of total world wool
production. India ranks 6th amongst clean wool producer countries and 9th amongst
greasy wool producers.
➢ Man-Made Fibres- the fourth largest in synthetic fibres/yarns globally.
➢ Jute – India is the largest producer and second largest exporter of the jute goods.

IN TEXTILE SCENARIO

In exports Cotton yarns, fabric, made ups etc made largest chunk with US$ 3.33
Billion or 26.5% in textiles category, and Ready Made garments (RMG)-cotton including
accessories made largest chunk with 4.67 Billion US $ or 37.1 % of total exports.

8
 Whereas manmade yarn and fabrics in textiles group and RMG–Manmade fibres
constituted second position in the two categories, respectively. Carpets and woollen
garments are other items exported from India.

IN GLOBAL SCENARIO

Developed countries' exports declined from 52.2% share in 1990 to 37.8 % in 2002.
And that of developing countries increased from 47.8% to 62.2 % in the same period. In
2003 the exports figures in percentage of the world trade in Textiles Group (for select
countries) were:

Fig.1 Global Scenario

PRODUCTION

India is the second largest producer of fibre in the world and the major fibre
produced is cotton. Other fibres produced in India include silk, jute, wool, and man-made
fibres. 60% of the Indian textile Industry is cotton based.

The strong domestic demand and the revival of the Economic markets by 2009
has led to huge growth of the Indian textile industry. In December 2010, the domestic
cotton price was up by 50% as compared to the December 2009 prices. The causes behind
high cotton price are due to the floods in Pakistan and China.

9
 India projected a high production of textile (325 lakh bales for 2010 -11). There
has been increase in India's share of global textile trading to seven percent in five years.

The rising prices are the major concern of the domestic producers of the country.
➢ Man Made Fibres: These includes manufacturing of clothes using fibre or filament
synthetic yarns. It is produced in the large power loom factories. They account for the
largest sector of the textile production in India. This sector has a share of 62% of the
India's total production and provides employment to about 4.8 million people.

➢ The Cotton Sector: It is the second most developed sector in the Indian Textile
industries. It provides employment to huge amount of people, but its productions and
employment is seasonal depending upon the seasonal nature of the production.

➢ The Handloom Sector: It is well developed and is mainly dependent on the SHGs for
their funds. Its market share is 13% of the total cloth produced in India.

➢ The Woollen Sector: India is the 7th largest producer. of the wool in the world. India
also produces 1.8% of the world's total wool.

➢ The Jute Sector: The jute or the golden fibre in India is mainly produced in the Eastern
states of India like Assam and West Bengal. India is the largest producer of jute in the
world.

➢ The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world.
India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main
types of silk produced in the country. It is a labour-intensive sector.

INDIA’S TEXTILE INDUSTRY STRUCTURE

➢ Cotton textiles continue to form the predominant base of the Indian textile industry,
though other types of fabric have gained share in recent years. In 1995-96, the share
of cotton and manmade fabric was 60% and 27% respectively.

10
➢ More recently, cotton fabrics accounted for 46% of the total fabric produced in 2005-
06, while man-made fibres held a share of 41%. This represents a clear shift in
consumer preferences towards man-made fabric.
➢ The fibre and yarn-specific configuration of the textile industry includes almost all
types of textile fibres, encompassing natural fibres such as cotton, jute, silk and wool;
synthetic / man-made fibres such as polyester, viscose, nylon, acrylic and
polypropylene (PP) as well as multiple blends of such fibres and filament yarns such
as partially oriented yarn (POY). The type of yarn used is dictated by the end product
being manufactured.
➢ The Man-made textile industry comprises fibre and filament yarn manufacturing units
of cellulosic and non-cellulosic origin.

Fig.2 The Textile and Apparel supply chain

11
➢ The industry structure is fully vertically integrated across the value chain, extending
from fibre to fabric to garments. At the same time, it is a highly fragmented sector,
and comprises small-scale, non-integrated spinning, weaving, finishing, and apparel-
making enterprises.
➢ The unorganised sector forms the bulk of the industry, comprising handlooms, power
looms, hosiery and knitting, and also readymade garments, khadi and carpet
manufacturing units.
➢ The organised mill sector consists of spinning mills involved only in spinning
activities and composite mills where spinning, weaving and processing activities are
carried out under a single roof.
➢ As in January 2006, there were 1779 cotton/man-made fibre textile mills in the
organised sector, with an installed capacity of 34.1 million spindles and 395,000
rotors.
➢ Of these, 218 were composite mills which accounted for just 3% of total fabric
production, with 97% of fabric production happening in the unorganised segment.
Cloth production in the mill sector has fallen from 1,714 million sq. metres in 1999-
2000 to a projected 1,493 million sq. metres in 2005-06, declining at a rate of 2% per
annum. As a result, the number of sick units in the organised segment has also been
growing rapidly.
➢ The competitiveness of composite mills has declined in comparison to the power
looms in the decentralised segment.
➢ Policy restrictions relating to labour laws and the fiscal advantages enjoyed by the
handloom and power loom sectors have been identified as two of the major
constraints responsible for the declining scenario of the mill sector.
➢ Nonetheless, overall cloth production in the country has been growing at 3.5% per
annum since 2000, with growth driven largely by the power loom sector. Being the
largest manufacturer of fabric in the country, the power loom sector produces a wide
variety of cloth, both grey as well as processed.
➢ According to the Ministry of Textiles, there are 1.923 mn power looms in the country
distributed over 430,000 units. The sector accounts for 63% of the total cloth
production in the country and provides employment to 4.815 mn people.
➢ The handloom sector is the second-highest employer in the country after agriculture.
The sector accounts for 13% of the total cloth produced in the country, not including
wool, silk and handspun yarn.
12
2.2 COMPANY PROFILE

Fig.3 Company Profile

Decision makers in the Ethical Textile business are sensitive to environmental issues
and wish to be sure that their products are made according to socially and ecologically
responsible business practices. They want to change the way business is done
internationally and their product sourcing is part of the change.

On the production end of this chain, there are very few truly dedicated actors. Most
are merely looking to extend their conventional business by adding organics to their
production activities. Among the really committed few in Organic cotton manufacturing,
is RCM, with their vertical chain of production for organic cotton textiles – from farmer
to finished product.

While as, the majority of factories produce organic cotton products as a side-line,
RCM deals only in Organic and Fair Trade cotton, including mixes of organic cotton with
other eco- fibres.

Based in Kolkata, India, RCM, supports Fair Trade as validated and certified by FTO,
but more importantly, bearing witness to their commitment, there is: financial and
economic support of small organic farmers fair labour practices within the GOTS
certified production chain, SA8000 certified social standards.

13
REASONS FOR PRODUCING YOUR ECO-FAIR PRODUCT LINE THROUGH
RCM

RCM can produce your eco-products sustainably using GOTS certified organic and
fair trade yarn for all types of knits or woven fabrics. RCM can develop your collections
for you and produce them in a cost effective and fair trade certified production facility;
whether you have your own patterns or wish to work with our pattern masters, CAD
process and sampling teams.

RCM can handle every step from sourcing materials and accessories to the production
and packaging of products, according to your specifications. RCM’s modern, fully
equipped facilities allow most of the production to be done in-house: RCM is well-
equipped in state-of-the-art machinery: Circular knitting is done in-house on our 8
German machines from Mayer & Cie, which allow making practically every structure of
knit:
➢ 2 - 24/28 gg Single jersey
➢ 2 - 24gg Interlock or 18gg Rib,
➢ 2 - 28 gg Single jersey, special lycra,
➢ 1 - Engineering stripe, Single jersey,
➢ 1 - Engineering stripe, Interlock

ABOUT RCM [YESTERDAY & TODAAY]

In 1934, what started as a dream from a young visionary is now a reality. RCM has
become a leader in the area of Indian Organic cotton production. Leading the way in this
industry of the future, RCM has been able to inscribe its name in golden letters. Based in
the city of Kolkata, India, RCM produces and exports Organic textile products. Export
destinations include United States, most European countries, Japan, New Zealand and
Australia.

Today, with an annual turnover of over 10 million US dollars, RCM's range of knitted
and woven garments and home products have found acceptance all over the world. The
product range includes garments for men, women and children, as well as an extensive
range of home textiles.

14
RCM’s NOIDA FACTORY

A modern facility in Noida, near to Delhi, manufactures all types of knitwear:

Fashionable Sweaters, Tops, Dresses, Accessories, as well as Kids Wear, Knit Blankets,
shawls and throws. An impressive park of computerized machines and modern equipment
allow RCM to produce a huge array of patterns and knit jacquards.

THE CHETNA PROJECT

CULTIVATING ORGANIC COTTON

Chetna Organic is working with small and marginal farmers towards improving their
livelihood options and making farming a sustainable and profitable occupation. The farmers
included in the project are from the rainfed regions of Maharashtra, Odessa and Andhra
Pradesh covering around 35000 acres. From 234 farmer members in 2004 to around 15,300 in
2012, Chetna's strength has been collective action and the fair supply chain. The positive
results of the Chetna Organic & Fair Trade Cotton project can be witnessed in the stabilized
socio-economic conditions of this group of smallholder farmers.

RCM AND THE CHETNA PROJECT

RCM sources cotton from Chetna and has been involved in the project since its
inception in 2004. RCM now purchases a large portion of Chetna's Fair Trade and organic
cotton for production and distribution to International markets.

CARDING & SPINNING

Fig.4 Carding & Spinning

15
 In the textile business, everything starts with yarn. Our top quality organic Cotton is
sent to the spinning mill to be spun into yarn. The yarn will define the overall quality of
the finished products, so this is a very important step in the process.

The first stage is in the opening room. Here, bales are opened and laid in a line on the
floor, side by side, near a cotton opening machine. This machine travels along the line of
opened bales, pulling fibres to be sent to a mixing machine and then on to the carding
system.

Fig.5 Cotton Trivia

Carding is the process of pulling the fibres into parallel alignment to form a thin web.
High speed electronic equipment with wire toothed rollers performs this task. The web of
fibres is eventually condensed into a continuous, untwisted, rope-like strand called a
sliver these slivers then continue to a combing machine. Here, the fibres shorter than half-
inch and impurities are removed from the cotton.

This process makes the sliver smoother so more uniform yarns can be produced. The
drawing or pulling of this sliver is next. The sliver is drawn out to a thinner strand and
given a slight twist to improve strength, and then wound on bobbins (spools wound with
the thread-like product for storage). Having completed this process, it is now called
roving. The roving bobbins are now ready for the spinning process.
Spinning is the last process in yarn manufacturing. Today's mills draw and twist the
roving into yarn and place it on bobbins. They do this quite efficiently. A large, modern
mill can produce enough yarn or thread in 30 days to wrap around the earth 2300 times or
go to and return from the moon 235 times. With the use of automatic winding, the yarn
bobbins are transferred to larger bobbins called cheese cones. These cheese cones can be
stored until they are needed for weaving and knitting.

16
DYEING & PRINTING

We use low-impact, fibre-reactive dyes for dyeing all our products. Our dyes are
safe, GOTS certified and "low impact," which means that we use less water, less heat and
produce less waste runoff than regular chemical dyeing processes. Recent advances have
created fibre-reactive dyes with colours that are brighter and richer than previously
available, and they provide excellent colourfast properties on cotton.

Fibber-reactive dyes have become the dye choice for many organic clothing
manufacturers because they offer a diverse palette of vibrant colours. They contain no
heavy metals or other known toxic substances, and they meet all European Union criteria
for eco-friendly pigments.

The dyeing process combines quality with technology through applications of

advanced research at every level – from planning to production. Multi-pronged use of
technology and a trained pool of highly-qualified technicians help to meet all the required
specifications.

COLORFAST
The dyeing process conforms to international standards of colour-fastness like
rubbing, perspiration, light and washing. Research is focused on enhancing the standards
of colour in the quality control laboratory. Up-to-date, high-performance equipment and
matching software is used to perfect colour formulation and colour correction, as well as
testing.

Spectra flash SF450 (a high-performance spectrophotometer) with colour

matching software from DATACOLOR of USA This makes it possible to dispatch a lab-
dip colour sample within 24 hours of receipt from the client.

Lab mat beaker dyeing ensures the precise results in laboratory tests for colour
fastness properties like rubbing, light, perspiration and washing, according to
international standards. An R&D team, trained in the use of this equipment, ensures on-
going product quality.
17
PRINTING

Applying colour patterns and designs to fabrics has been done since 5000 BC
(Egyptian findings) and continues to be popular today for textiles of all sorts. It is,
however, one of the most complex textile operations because of the many variables and
the need for precision. Printing is carried out after the dyeing or pre-treatment of the
fabric.

Dyes or pigments are applied locally to produce the artistic arrangement of

various motifs in one or several colours. To ensure that the dyes stay separate from one
another and remain fast to the fabric, a strong bonding is formed between dyes and fabric.

There are two main types of printing on fabrics, all-over rotary printing on both
woven and knitted fabrics and screen printing. Rotary printing is used when large
quantities of fabric need to be printed with the same design (ex: sheets and other home
linens, large runs of garment fabric). This method produces more unified, homogenous
effects in the printing, as compared to screen printing. A large cylinder applies a dye
paste to the fabric, which has been introduced between the engraved rollers, thus
reproducing the desired design. This process is the most appealing for printing designer
and fashion fabrics because of the high quality that can be achieved.

Screen printing is a very popular technology in use today for producing placed
prints on fabric. This method involves a porous mesh stretched tightly over a frame.
Proper tension is essential for accurate colour registration. A stencil on the screen defines
the image to be printed in each colour. RCM's in-house screen printing unit prints
thousands of T-shirts on a daily basis, as well as motifs on babywear, home textiles,
promotional items and other garments.

18
KNITTING

RCM's in-house knitted fabrics include, jersey, interlock, rib, loop knit, fleece,
terry, single jersey lycra, etc.

Fig.6 Knitting

Knitting is a method of constructing fabric by using a series of needles to interlock

loops of yarn. Lengthwise rows of these loops, comparable to the warp yarn in woven
goods, are called wales. Crosswise rows, comparable to filling yarns, are known as
courses.

There are numerous similarities in knitting done by hand and machine, but there
are also some marked differences. RCM's cotton knits are produced on circular machines
which have needles fixed to the rim of a rotating cylinder. As the cylinder turns, the
needles work their way from stitch to stitch producing a tubular fabric. Its width is
regulated by the size of the cylinder, which usually ranges from 9 to 60 inches in
diameter.

Depending on the width of fabric desired, a modern knitting machine might use
over 2,500 needles. Instead of a single cone of yarn, a knitting machine may have up to
four cones per inch of fabric width. For example, a machine with a 32-inch cylinder can
have over 2,700 needles and 128 cones of yarn feeding simultaneously.

TYPE OF CIRCULAR KNIT FABRICS:

➢ SINGLE
➢ JERSEY
➢ INTERLOCKRIB
➢ LOOP KNIT
➢ FLEECE

19
 ➢ SINGLE JERSEY LYCRA
➢ LOOP KNIT LYCRASTRIPED JERSEY OR INTERLOCK
➢ PIQUE

WEAVING

Fig.7 Weaving

Weaving is the oldest method of making yarn into fabric. While modern methods
are more complex and much faster, the basic principle of interlacing yarns remains
unchanged. On the loom, lengthwise yarns called the warp form the skeleton of the fabric.
They usually require a higher degree of twist than the filling yarns that are interlaced
width wise. Traditionally, cloth was woven by a wooden shuttle that moved horizontally
back and forth across the loom, interlacing the filling yarn with the horizontally,
lengthwise warp yarn.

Modern mills use high-speed shuttle fewer weaving machines that perform at
incredible rates and produce an endless variety of fabrics. Some carry the filling yarns
across the loom at rates in excess of 2,000 meters per minute. The rapier-type weaving
machines have metal arms or rapiers that pick up the filling thread and carry it halfway
across the loom where another rapier picks it up and pulls it the rest of the way.

Other types employ small projectiles that pick up the filling thread and carry it all
the way across the loom. Still other types employ compressed air to insert the filling yarn
across the warp. In addition to speed and versatility, another advantage of these modern
weaving machines is their relatively quiet operation.

20
 There are three basic weaves with numerous variations, and cotton can be used in
all of them. The plain weave, in which the filling is alternately passed over one warp yarn
and under the next, is used for gingham, percales, chambray, batistes and many other
fabrics. The twill weave, in which the yarns are interlaced to form diagonal ridges across
the fabric, is used for sturdy fabrics like denim, gabardine, herringbone and ticking. The
satin weave, the least common of the three, produces a smooth fabric with high sheen.

Used for cotton sateen, it is produced with fewer yarn interlacing and with either
the warp or filling yarns dominating the "face" of the cloth. In some plants, optical
scanners continuously monitor fabric production looking for flaws as the cloth emerges
from the weave machine. When imperfections appear, computers immediately print out
the location of the flaw so that it can be removed later during fabric inspection.

GREY WOVEN
The variety of fabric weave includes Sheeting, Canvas, Satin, Drill, Twill,
Gabardine, Herringbone and Oxford Weave. Our weaving partners are equipped with the
most modern looms, providing fabrics in widths ranging from 160 cms to 360 cms.

TYPE OF FABRICS
➢ PLAIN SHEETING / POPLIN
➢ DRILL / TWILL / GABERDINA / BROKEN FREE
➢ SATEEN / SATIN
➢ STRIPE SATIN
➢ OXFORD / CHAMBARAY
➢ RIP STOP
➢ CARDUROY
➢ DOBBY DESIGNS
➢ YARN DYED

21
GARMENTS

Fig.8 Garments

In a world that is facing serious problems with the environment, sustainability

should be at the heart of every producer's strategy, as well as that of brand-owners, textile
wholesalers and fashion retailers. At RCM we have actively pursued integrating
sustainability principles into the garment making processes. We also know that and
vertical integration within the manufacturing chain makes a positive contribution to our
competitive edge and bottom-line and since sustainability has become the top agenda for
many fashion brands and retailers. We make the clothes that people love to wear. Because
they're comfortable, quality cotton, ecologically grown and produced by a workforce
which is paid fair wages.

Whether you are looking to create a line of sportswear, fashion, baby or kid’s
clothes or accessories, you can choose your fabric from our huge range of soft,
contemporary knits and woven made from 100% organic cotton yarns and blends and be
assured that when you put your name on our garments, you can do so with pride and
confidence.

FASHION

Our buyers have taken on the challenge of joining fashion with ethics by proposing
products that are guaranteed both Organic and Fair Trade. They each design their own
collections of stylish garments to be made from certified organic cotton grown in India
and produced by RCM to ensure that fair labour regulations are observed. In turn, the
consumer buys fashionable quality products as well as the possibility of acting for
sustainable development.

22
 Fig.9 Fashion

SPORTSWEAR, T-SHIRTS, UNDER GARMENTS, YOGA WEAR, SLEEPWEAR

AND MORE

Today’s organic t-shirt carries a message that’s more powerful than ever: a
message symbolising the wearer’s responsible values. Buyers know that getting the best
out of the world’s resources must not include leaving a trail of destruction behind them.
RCM is a pioneer in the organic t-shirt market, producing fashionable premium printed
apparel and promotional items in a sustainable way: from the selection of the organic
cotton, spinning, knitting, stitching and packaging right through to presenting it as your
own brand product.

BABY AND CHILDRENS GARMENTS

Fig.10 Baby and Children’s Garments

What parent wouldn’t want to protect their new-born child against pollution and
the contact of harmful chemicals? Everyone, for sure! This explains the rapid growth of
the baby and kid’s organic garment market. If you are looking to create a line of baby and

23
 children’s clothing, trendy new-born baby garments, or unique new-born baby gifts; you
are in the right place! RCM works with a number of designers in Europe, US and
Australia and to produce top of line infant and kids wear. All of our organic baby clothes
are made from GOTS certified organic cotton and dyed with eco-friendly low-impact
dyes.

Choose from wide selections of fabrics to make your line of new-born baby
clothes, baby noisiest, kimonos, bedding, organic cotton cloth diapers, baby caps, booties,
etc., as well kid’s wear in a wide variety of trendy knit and woven fabrics.

PROMOTIONAL ITEMS

Fig.11 Promotional Items

Promotional items such as bags, totes, hats, scarves, bathrobe, t-shirts, towels,
handkerchiefs etc. can be made to your specifications with personalisation printed.
Spa products can also be made to order items such as:
➢ Eye Mask
➢ Headband
➢ Hair Towel
➢ Wash Mitt
➢ Spa Sheet
➢ Spa Blanket
➢ Spa Wrap

24
FLATKNITS

Fig.12 Flatknits

Our Flat knits department is your competent contact in the field of knitting
technology and fashion. The examples of our production can provide inspiration and
information for your own collections. Our new Stoll machines ensure technically
perfected results and our staff will assist you to build your knitwear collection to your
image and market requirements.

In Industrial Knitting applications, the terms "Flat" knit refers to a "Flat" or Vee
Bed knitting machine consisting of 2 flat needle beds arranged in an upside-down "V"
formation. These needle beds can be up to 2.5 metres wide. A carriage, also known as a
Cambox or Head, moves backwards and forwards across these needle beds, working the
needles to selectively, knit, tuck or transfer stitches.

Although slower in comparison to a circular machine Flat knitting machine is very

flexible, allowing complex stitch designs, shaped knitting and precise width adjustment.
Our cutting edge flat knit technology offers a wide range of innovation for the design and
manufacturing of fully fashioned knitwear. As flat knitted garments gain in popularity,
you will be able to develop and build your collection without limitation.

FAIR TRADE

Fair trade is neither charity nor assistance; rather, it is a professional link between
producer and buyer that is based on respect and fair business practice. The producer
receives a fair price for his products which allows him to pay fair wages, thus giving
workers the possibility of providing for their families with dignity. RCM workers rely on

25
their jobs to better their living conditions, particularly concerning health, education and
housing and RCM takes this responsibility seriously

At RCM our goal is to meet the expectations of companies in quest of authenticity,

coherence and quality in their production sourcing while ensuring the continued progress
in the conditions of our workers lives. We appeal to those who ask themselves: "Is it
possible to change the world through everyday decisions? Does opting for natural and
organic materials make a difference?" In response to global environmental and economic
issues, RCM works with companies worldwide to develop completely eco-friendly,
socially-respectful lines of contemporary products.

At RCM, we take great pride in the quality of our relationships with farmers,
suppliers and partners, as well as the attention given to the social and economic welfare of
our workers. This has earned us a solid reputation for integrity with our buyers in
countries spread out over Europe, the US, Australia, New Zealand and Asia.
Approximately 1000 workers make up RCM's workforce in 3 factories producing knit and
woven apparel, as well as bedding and bath products. RCM's activities are oriented
around sustainability and fairness. Well beyond the obvious, "no child labour" and
"minimum wage compliance".

RCM complies with legislation regarding maximum working hours, overtime

compensation and incentives. Worker has all the rights as per Freedom of Association and
they are free to join any community they want. There is no discrimination for race, age,
sex, political opinion, religion etc. RCM has developed a progressive business model for
its factories. RCM has taken a positive stance towards unions and workers are represented
by the Centre of Indian Trade Unions (CITU). Besides the above, we also provide other
benefits to the workers: such as transport to and from the jobsite, company sponsored
meals, a health plan and funding for worker's children's education. We believe that we are
doing what we should to protect our future.

26
RCM IS CURRENTLY CERTIFIED

FLOCERT (FLO ID 4512), and Fair Trade-USA Stitching factories are SA8000
certified Furthermore, all of the cotton purchased from Chetna is produced in a Fair Trade
context which is controlled and validated by Flocert.

MEDIA & NEWS

Solidaridad June 2013: about 80% of all cotton is produced by small-scale farmers.
Some 30 to 50 million farming families in developing countries depend on cotton, but the
high cost of seeds and inputs traps them in a vicious cycle of debt. Working conditions
are often challenging.

FAIR TRADE USA “FAIR TRADE ” HELPS "FREE TRADE" WORK FOR THE
POOR

A non-profit organization, Fair Trade USA is the leading third-party certifier of

Fair Trade products in the United States, enabling the consumer to make a difference with
their dollars. People and the planet work in tandem so both are healthy and sustained. FT-
USA provides farmers in developing nations the tools to thrive as international
businesspeople.

Instead of creating dependency on aid, we use a market-based approach that gives

farmers fair prices, workers safe conditions, and entire community’s resources for fair,
healthy and sustainable lives. We seek to inspire the rise of the Conscious Consumer and
eliminate exploitation. Fair Trade USA audits and certifies transactions between
companies in America and their international suppliers to ensure that rigorous Fair Trade
standards have been respected.

27
PROJECTS RELATED TO RCM PRODUCED GARMENTS

Coexist, the worldwide association campaigning for peace chose RCM to produce the
T-shirts which are sold as part of their fund and awareness raising efforts for world
peace.

PACT UNDERGARMENTS, PRODUCED BY RCM MANAGE AN ASSOCIATION

CALLED IMPACTS

Pact undergarments, produced by RCM manages an association called IMPACTS :

"This fall, with your help PACT and Whole Planet Foundation will raise $50,000 to lend
a hand to low-income entrepreneurs that want to start their own small businesses. PACT's
fall 2013 collection is inspired by small businesses, from tailors to repair shops to local
cafes - these are the foundation of thriving communities.

PRODUCT PROFILE

KIDS WEAR

Fig.13 Kids Wear

The diverse collection of garments is focused on not just men & women, but children
as well. The Kids Wear comes in the most attractive of colours & designs for children of
all ages.

28
CASUAL WEAR

Fig.14 Casual Wear

The casual collection guarantees a cool and trendy look that will surely make a
Fashion Statement.

SPORTS WEAR

Fig.15 Sports Wear

The spectacular Sports Wear will definitely make one stand out from the crowd. The
distinct sweatshirts are winners all the way. Assorted collections, for both men & women.

GOLF WEAR

Fig.16 Golf Wear

The range of Golf-Wear is designed to suit to the ‘Tee'. The collections are in
solids stripes, prints and jacquards for both men and women.

29
 CHAPTER III

FUNCTIONAL DEPARTMENT

3.1 PRODUCTION DEPARTMENT

KNITTING QUALITY

All production facilities available at RCM come under the strict supervision of the
Quality Assurance Department. An elaborate system to control and monitor all orders is
done through an ERP System, which tracks the status of each order in production.

Fig.17 Knitting Quality

FABRIC DYEING

The Very latest 16,20,24 & 28 Gauge Circular Knitting machine are engaged in the
production floor like “ Mayer & Cie” from Germany, Italian “ Orizio Paulo” A variety of
knitted fabrics are produced starting from the basic jersey, Interlock, Pique, Rib, Auto striper
With 70 Color + Lycra, Jacquard + Wrapper with 72 colours + Lycra. Collar: - 16 & 114 –
Plain + Platted jacquard.

30
 Fig.18 Fabric Dyeing

YARN DYEING

The “Dilmenler” yarn dyeing machines are used for uniform, best and reproducible

shades. This is supported further by Mesdan-Italy wet splicing for a smooth knotless knitted

stripes and check

Fig.19 Yarn Dyeing

31
COLOUR LAB

Fully automated Lab dispenser / Colour matching SPECTRO-SF 600 and I.R Lab
dyeing machines helps 100% accuracy

Fig.20 Colour Lab

COMPACTING

The washed and laundered cloth is sent through the latest “Tube-tex” USA
compacting machine to control shrinkage. All processed fabric is pre-shrunk, so that the
garments always retain shaped.

Fig.21 Compacting

32
FABRIC MERCERIZING

The RCM fabrics undergo value addition by its additional special Mercerizing
process. The mercerizing is done by the only world’s best “Dornier” Germany Mercerizing
machine. The specialty with our latest machine is also due to its circular expandable four
tower washing facility which is also fully automated, yielding high lustre, and intense colour
depth leaving a very good hand feel.

Fig.22 Fabric Mercerizing

PRODUCTION

The Production line for finishing has high-tech machines well trained and skilled
workforce engaged in production floor. And finishing all garments is steam- ironed and
machine pressed meticulously. All the garments are hand packed with care and stored for
subsequent transportation to various destinations.

33
 Fig.23 Production

EMBROIDERY

This department has the world’s best Japanese “Barudan” automatic high-speed
embroidery Machines, they are capable of rendering multi colors of embroidery and appliqué,
an art which enhance the value of the garments. Capacity 1.5 Billion Stitches per day.

Fig.24 Embroidery

34
WASHING

All Types of Garment washes like Stone wash, Enzyme Wash, Acid Wash and many
more

Fig.25 Washing

35
3.2 HUMAN RESOURCE DEPARTMENT

JOB DESCRIPTION

Domestic Readymade Garment Retailer requires Production Manager to handle the

mfg unit. In charge of the unit handling production & administrative function of the unit
reporting to the Director Garment Export House requires Production Manager for their
Readymade Garment. Responsible for independent handling of the unit, achieving the targets
assigned, ensuring quality for timely shipments, etc.

OBJECTIVES OF HR DEPARTMENT
➢ Manpower Planning
➢ Recruitment
➢ Training and Development
➢ Induction
➢ Wages and salary administration’
➢ Statutory compliances
➢ Leave administration
➢ Grievance Redresser
➢ Personal counselling
➢ Compensations and Benefits
➢ Welfare
➢ Performance evaluation

SOURCES OF RECRUITMENT
Recruitment is the process of filling the vacancies. It is the first steps in selection
process. In Cotton Mill direct recruitment method is used frequently for recruitment. The firm
places job advertisement in newspapers. And in TV, media and tries to attract as much as
calibre people from the outside.

The company also have internal recruitment for filling the post by efficient and skilled
workers from the rank , promotion and Corporation have preferred local candidates who
belongs to surroundings. There will be notice displayed on the notice board of the company
and outside of the company and like that worker will be recruited.

36
METHODS OF SELECTION
The basic requirement for an employee is 10th pass and other office staffs and all will
be according to the Gov. norms. The General Manager will conduct the interview, and from
that he will appoint the employee. While selection they will try to avoid very sick person and
old persons

TRAINING & DEVELOPMENT FOR EMPLOYEES

There will be regular training & development programmes for all levels of employees,
i.e., Senior Management to lowest level workers regularly Training need analysis. How the
training need is analysed for present employee, based on their performance or while
technology advances

To improve the quality of production or to reduce the cost factor or avoiding accidents
Training need analysis is mainly done when a new worker joins the company or when a new
machine is placed then for the machinery handling and maintenance.

It is necessary to determine the most suitable and cost-effective training media for the
different areas. There have been many different approaches defined however the system
approach to training has been the most successful. Training Needs Analysis (TNA) is defined
as the Identification of training requirements and the most cost effective means of meeting
those requirements.

ROLE OF HR (HRM) IN TEXTILE

HRM includes the very interesting phenomena that is HRD. Human resource
development (HRD) is phenomenal for the manufacturing and service industry. HRD deals
with up gradation of skills for labors and executives, planning and allocation of work,
monitoring and assessment of performance.

One of the most important tasks is upgrading the skills and knowledge of the human
resource from time to time in tandem with the development of technology and trade. This up
gradation is done through training and workshop/seminars.

37
 Collectively, HRD activities result in increased productivity, reduced cost and
wastage, rightsizing of labor and staffs at the organization, organizational stability and
flexibility to adapt to future changes.

CULTURE

HR managers have responsibility under HRD to make OCTAPACE culture climate in

the organization.

O-Openness

C-Confrontation

T- Trust

A-Autonomy

P- Reactiveness

A- Authenticity

C- Collaboration

E- Experimentation

HRM IN TEXTILE

Textile is industry-oriented field where lots of processes are there to carried out raw
material\fibers to finished garment. In this we have required technical skillful and motivated
peoples. For textile, a little bit differences in the scope, approach in HR concept, because here
peoples think differently, expect differently.

UNLOADING
The raw cottons will be coming in bail forms weighing from 180Kgs to 200Kgs. The
raw cotton will be coming from Gujarat, Andhra Pradesh etc. The raw cotton will be carried
out carefully out to the godowns and from each bail will be taken for cotton mixing and for
the production of yarn.
Scheduling Production department functions around a clock by day and night shifts. The
three shifts are

38
 7:30AM
3:30PM - 3:30PM
11.30PM - 11:30PM

07:30AM Shifts constitutes of 8 hours including 1 hour break. So, the industry works around
the clock day and night.

39
3.3 MARKETING DEPARTMENT

Fig.26 Marketing

MARKETING FUNCTIONS
The main function of the company is that to provide the best standard yarn to the
companies who needs, and so by that a better quality cloth can be produced. If better quality
yarn is produced then soon there will be a high demand and likewise there will be external
demand increased. And so, the export also takes place.

By this a huge revenue also will be got for the Government. The other main aim of the
marketing department is that if there is an order then soon without any delay the product
should be reached at hands of the customers.

➢ Developing marketing strategies

➢ Capturing marketing insights
➢ Connecting with customers
➢ Building strong brand image
➢ Delivering value to customers

40
MARKETING STRATEGIES OF RCM GARMENTS INDUSTRY

The readymade garments industry has been chosen for various reasons. Firstly, it
plays an important role for its directly concerned to one of the basic needs of every citizen.
The garments industry operates in a highly complex environment.

Indian garments industries have been creating in a rapidly changing environment

particularly since mid-seventies.

It is therefore important to examine what the modern trend are being introduced by
the companies in their marketing strategies and cope with the changing environment because
this is a fashion age and everyone is concerned about the new fashion and wants the new test
specially the young generation.

Second reason to choose the readymade garments industry is that the contribution of
the garments sector in the sphere of production, earning of foreign exchange and investment
in the Indian economy has been quite significant. Third, the functional performance of
majority of the garments sector that is in the private sector deserves a significant
consideration.

The profitability trends, working of garment units’ dependence of garments industries

on imports are some of the areas which have also been touched upon and lastly the leadership
role of garments sector in India as this is the second employment providing sector after
agriculture. The garments industry alone provides the major employment to the Indian citizen
as this sector is concerned to small scale industries sector.

Marketing is the process of developing and communicating value to your prospects and
customers.
Think about every step you take to sell service and manage your customers:
➢ Your knowledge of the market and your strategy to penetrate it
➢ The distribution channels you use to connect with your customers
➢ Your pricing strategy
➢ The messages you deliver to your market
➢ The look and feel of your marketing materials
41
➢ The experience you deliver to your market and customers
➢ The actions of your sales and service reps
➢ All of the planning, preparation, forecasting and measurement of your
investments.

From the diagram, the main components of a marketing plan can be summarized as:

Fig.27 Marketing Plan

42
 The Strategic Marketing Process organizes 29 marketing subjects into three categories:

Component of the plan Description

Mission statement A meaningful statement of the purpose and direction of the

business

Corporate objectives The overall business objectives that shape the marketing plan

Marketing audit The way the information for marketing planning is organised.
Assesses the situation of marketing in the business – the
products, resources, distribution methods, market shares,
competitors etc

Market analysis The markets the business is in (and targeting) – size , structure,
growth etc

SWOT analysis An assessment of the firm’s current position, showing the

strengths & weaknesses (internal factors) and opportunities and
threats (external factors)

Marketing objectives What the marketing function wants to achieve (consistent with
and strategies corporate objectives) and how it intends to do it (e.g., Ans off,
Porter)

Marketing budget Usually, a detailed budget for the next year and an outline
budget for the next 2-3 years

Action plan The detailed implementation plan

Table 1. Component of plan

Observing how people shop, when they shop and where they purchase from is crucial
for determining future marketing strategies. In 2005, only half of the American populace
shopped online. By 2008, that number grew to 65 percent and continued to jump each
subsequent year.

43
 This reality forced many retailers to expand their Internet presence by purchasing
more online advertising and not just advertising in fashion magazines. In addition, companies
were forced to improve or establish their e-stores to allow for convenient shopping.
Companies increasingly partner with member-only communities and other merchants to sell
product.

44
3.4 FINANCE DEPARTMENT

CAPITAL DETAILS

Authorized capital Paid-up Capital

5500000.00 5030800.00

RCM GARMENTS PRIVATE LIMITED is Limited Liability Company with

authorized capital Rs.5500000.00; shareholders of RCM GARMENTS PRIVATE LIMITED
cannot sell or transfer their shares without offering them first to other shareholders for
purchase in company.

INVENTORY MANAGEMENT
The main inventories in the company were raw cotton or cotton bales, spares and
loose tools. There is a chance of damages when the cotton rolls when stored for a long period,
so they are carefully stored without getting wet and all.

MATERIAL REQUIREMENT PLANNING[MRP]

As per their strategy they had a steady demand for materials, so they stored the
materials. They have introduced new machines and all so the work goes more faster than
earlier so according to that they have ordered and stocked more cotton for the production.
They will collect and store cotton for an advance of one month’s production.

TYPES OF ASSET & LIABILITY

ASSETS
➢ Free hold
➢ Lease hold
➢ Building
➢ Plant & machinery
➢ Electrical
➢ Furniture
➢ Office equipment’s
➢ Computers
➢ Vehicles

45
 ➢ Canteen
➢ Library

LIABILILITIES
➢ Current account
➢ Inter unit dues1.
➢ Loan from exporters
➢ Loan from bank

LIQUIDATION,MERGER &ACQUISITION

Fibre2fashion’s Liquidation, Merger & Acquisition service is to serve the RCM

Textile & Apparel Industry and financial institutions with strategic advisory services to Buy
& Sell Used Machinery and Plants (entire unit) in any part of the world at the best prices.

For a manufacturing company, capacity expansion, asset liquidation and mergers play
an important role for its growth and development. Our strong connectivity with the entire
textile & apparel value chain globally gives us an edge over others in delivering the best of
the services. We are closely associated with banks, financial institutions, assets liquidation
companies and other agencies to realize their dues by liquidation of their Non-Performing
Assets (NPAs). We have a team of experts and dedicated professionals exclusively handling
following services.

OUR SERVICE

Mergers and Acquisitions (M&A) team of fibre2fashion delivers strategic advisory

services to companies in the global Textile/Apparel domain.

➢ Acquisitions
➢ Asset restructuring
➢ Institutional placement
➢ Leveraged buyouts & exclusive sales.

46
ASSET LIQUIDATION

➢ Buying or Selling of Used Textile Machinery: single equipment, entire unit or

complete facility with land, building etc. in India or any country of the world.
➢ Appraisal & Evaluation of assets as per the current market rate by experts.
➢ Online and offline marketing service for the exclusive mandate through display of
banners, mailers to target audience, print media and customized services.

47
 CHAPTER IV

FUTURE OUTLOOK

4.1 SWOT ANALYSIS

The SCM garments industry adds 14% to the industrial production and 8% to the
GDP of India. It provides employment to 38 million people and thus, is the second largest
employment provider after agriculture. This garments Industry is one of the largest sources of
foreign exchange flow into the country with the apparel exports accounting for almost 21% of
the total exports of the country. A systematic SWOT analysis of the textile and apparel
industry indicates the following:

STRENGTHS

➢ Adequate financial resources

➢ Specialized in printing

➢ Have a diversified units of industries

➢ Good market image

➢ Competent management and workers

➢ Have ability to compete with competitors

➢ In home facility of production

➢ Loyal customers

➢ Loss sustaining capacity

WEAKNESSES

➢ Uncertain chances of promotion

➢ Salary package less attractive

48
 ➢ Centralized decision making

➢ Lack of a proper human resource system, hence employees are not motivated to
develop their creative and innovative abilities.

➢ Due to high turn over the organization is not enjoying the economy of scale.

OPPORTUNITIES

➢ Large scale productions because of new market coverage and increasing demands

➢ Introduction of new variety in garments

➢ Extension of fashion-designing & stitching departments

THREATS

➢ GST and who pose biggest threats

➢ Instability of prices due to currency devaluation

➢ Entrance of new and quality conscious competitors

➢ Low price offered by the competitors

➢ Strong promotional activities by the competitors to convince buyers

➢ New quality, environmental and social accountability standards overhead are

increasing rapidly.

49
4.2 SUGGESTIONS

➢ Company should have a good generator or other power receiving options.

➢ Company should include some more young people.

➢ Each employee working in the company should know more about how to operate the

machineries and all in the company.

➢ The company provide flexible level of principles to the employees.

➢ The company maintain proper production inventory method.

➢ The training advantages assistants to every month of the employees.

50
CONCLUSION

From the Study of this company, I understood the functions and features of the

company. This company is improving their quality, goodwill, market value and they are

giving job opportunity so many people. They are the strength of the company’s growth. Infect

we can see that the company has modernised its machineries and all and it’s the big cotton

mill industry in whole areas. With all most modern facilities.

The institutional training at RCM garments helped to have a good knowledge about

how a company operates and the consequent focuses relating to the business activities. In the

short span of training the company management provides me a good exposure to the working

and management work out in the detail run. It enhanced about plants production process in

details, which paved way for rich experience in plant supervision it also provides with

information regards the exports financial and human resources activities and documentation

in the RCM textiles, which was new area entrance for me.

The training has helped to know the various delegation s that is found in the

organization and responds ability each delegates have the training has given a deep sense

of understanding how an organization takes efforts in bringing in product as an effective one

and how it can be good in competing with its competitors. The organizations growth decides

their tireless effort in bringing it up. The expansion and establishment of the organizations in

various places and in various forms denotes their financial efficiency and capabilities

51
BIBLIOGRAPHY
➢ ArunMonoppa, MirzasSaiyadain, Personnel Management, Tada MC GRAW-HILL
publishing company Ltd.
➢ Hugh J. Arnold, Daniel C.Feldman., Organisational Behaviour, MC GRAW-HILL
International editions.
➢ Richard M.Hodgetts, Modem Human relations at work, The Dryden Press, USA.
➢ Stephen P. Robbins., Consumer Behaviour, Prentice Hall of India, New Delhi.
➢ Tripathi P.C., Personnel Management, Sultan and Chands Company Ltd.

WEBSITES
➢ www.garments.in
➢ www.clothingindustries.in
➢ http://www.rcm-organic.com/

52
TABLE OF CONTENTS
INTRODUCTION
ORGANIZATION
FUNCTIONAL DEPARTMENTS
FUTURE OUTLOOK
CONCLUSION
BIBLIOGRAPHY