EXECUTIVE SUMMARY

INTRODUCTION

Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the flagship Company of the LNJ Bhilwara

Group. RSWM is a premier company of the Group, with a turnover of Rs. 1150 crore in 2007-

08. RSWM is exporting a complete range of yarn and fabric to over 70 countries worldwide,

giving RSWM a markedly visible presence across the textile world.

RSWM is engaged in manufacturing synthetic and blended spun yarns and fabrics. RSWM offers

one of the broadest ranges of products in terms of fiber blends, counts and shades. The current

yarn portfolio of the company can be classified into three main categories –

a) Grey Yarn b) Dyed Yarn, c) Mélange Yarn.

The company owns the Mayur brands under which it markets its blended suiting fabrics in the

domestic market.

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INTRODUCTION TO THE ORGANIZATION

Mission:

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

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Vision:

“RSWM envisages itself as a trend setter of the textile industry. It is committed to introduce innovative products in the industry which will set new standards.”

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Mr. L. N. Jhunjhunwala

Chairman - Emeritus

Mr. Ravi

Jhunjhunwala

Chairman

Mr. Shekhar Agarwal

Vice Chairman & Managing

Director

Mr. Riju Jhunjhunwala

Joint Managing Director

Mr. J. C. Laddha

Executive Director

Mr. A.K. Churiwal

Director

Mr. Kamal Gupta

Director

Mr. R.P. Khaitan

Director

Mr. D. N. Davar

Director

Mr. Pradeep Dinodia

Director

Mr. Sudip

Bhattacharyya

Nominee Director,

Exim Bank

Mr. S. K. Srivastava

Nominee Director, LIC

INTRODUCTION TO LNJ GROUP

LNJ Bhilwara group has emerged as one of India's leading corporate houses, in the last four

decades. The pursuit of leadership began in 1961, a journey that was initiated by Mr. LAXMI

NIVAS JHUNJHUNWALA (LNJ), whose vision and values continue to drive the group even

today.

The LNJ Group is a multi - product conglomerate with a global - presence, and with

business interests spanning a diverse range of industries... like Textiles, Power -Generation,

Graphite - Electrodes, Sponge - Iron, Information - Technology and IT - Enabled services.

The Group has successfully integrated its operations into today's Global - Economy, with

export earnings compromising over 46% of total revenue with over 20,000 employees and

17 production units located strategically across the country.

The LNJB Group's leadership in the textile industry is exemplified in the equity that its

brands enjoy in the Indian market place.... like MAYUR Suiting, BSL Suiting, LA Italia

Fashions and Buddy Davis Leisurewear.

The LNJ Bhilwara Group, founded in 1961, has today grown into a strong global

presence worth Rs. 2049 crores. The Group has been nurtured into a successful growth

track by the able guidance of the Founder and Chairman - Emeritus, Mr. L. N.

Jhunjhunwala. Currently, the LNJ Bhilwara Group stands as one of the largest firms on the

corporate horizon in India with over 20,000 employees and 17 production units positioned

at strategic locations across the country. The Group's export earnings comprise of 46 % of

the Group's turnover.

The LNJ Bhilwara Group is a well – diversified conglomerate. It has been actively seeking

growth and profitability by investing in a variety of systematically identified businesses making

it a multi – product conglomerate with interests in a range of industries such as textiles,

graphite electrodes, power generation, power engineering, consultancy services, steel and IT

enabled services.

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The pioneering textile division of the Group is not only a key player in the industry but

also has many firsts to its credit. The textile division has the sole distinction of producing a

unique fire retardant yarn called Trevira CS (now known as Len zing, Austria). It is also the

sole licensee for the highly specialized yarn called Tencel. The Group has time and again

been acknowledged for its world – class quality products in the domestic market such as Mayur

Suiting, BSL Suiting, La Italia Fashions and Geoffrey Hammond superfine suiting. At the

same time, their services to several leading global brands for knitted garments have been

recognized with the units garnering top export awards in different fields for several years in a

row.

The LNJ Bhilwara Group also has the largest integrated graphite electrodes manufacturing

plant in South – east Asia with a reputed clientele comprising of major steel plants in the world.

Graphite exports constitute 70 % of total sales volume. An evidence of their success can be

seen in the fact that HEG, an integral part of the Group, is all set to undertake a Rs. 450

crores expansion plan to tap opportunities in the export market. The expansion of the

Mandideep plant would double the capacity from 30,000 TPA to 60,000 TPA.

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

Nagar (MP) in 1997, the Group has commissioned, India's first IPP Hydro –electric

Malana Power Project of 86 MW in a record time of 30 months at Kullu (HP), in July,

2001 and is set to commence work on 200 MW Allain - Duhangan Hydro Electric Project at

Manali (HP).

Little wonders then, that the LNJ Bhilwara Group of companies has been awarded IS / ISO 9001 :

2000 certification for setting exemplary standards in quality.

Business Units of the GroupSBusiness Units of the GroupS

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INTRODUCTION OF THE COMPANY

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RSWM is a professionally managed, progressive and growth oriented company with

business interests in Yarn, Fabrics, Garments and Denim. It is one of the largest

producers and exporters of polyester viscose blended yarn in the country. The company

operates around 3,60,000 spindles and produces 1,00,000 MT of yarn per year.

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

and mélange yarn, while specializing in technical fabric. It is equipped with in - house

fabric weaving and processing facilities, with an installed capacity of 12 million meters

per annum. Modern technologies and world - class skills have enabled the company to

produce the finest quality adhering to stringent international norms. The company has

state – of – the – art garment unit for global customers with a capacity to deliver 13,000

units daily.

plan of Rs. RSWM’s leadership is exemplified in the equity that it enjoys in Indian as

well as international market. RSWM has acquired 50 % equity stake in SISA S. A. Spain

that will enhance its presence in higher value added international yarn market.

An expansion 900 crores has been initiated by RSWM in order to expand its horizons.

The LNJ Bhilwara Group has its origin in 1941 when the founder and Chairman

Emeritus, Mr. L. N. Jhunjhunwala (LNJ) was hardly 13 years old.

A company called General Merchandise Dealer Ltd., Calcutta (West Bengal) was

incorporated by his uncle for importing cosmetics. After graduation from School in 1945,

Mr. LNJ was persuaded to join the family business and take major responsibility in Indo

Eastern Trading Company also set up by his uncle for export of jute goods. This venture

was a great success and by 1950 - 51, it became one of the top 10 exporters of jute

goods from India.

At the age of 31 years, in 1959, Mr. LNJ was given the license to put up a medium

sized textile mill at Bhilwara in Rajasthan at a cost of Rs. 6 million. This venture,

Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the first textile mill of the LNJ

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Bhilwara Group in Rajasthan was a big success and continues to be the flagship

company of the Group.

In 1968 - 69, RSWM manufactured India’s first polyester viscose (PV) blended yarn and

this is where Mr. LNJ made his fortune. Having consolidated this business, the group

started diversification.

RSWM started with 12500 spindles and today working with 1,64,000 spindles due to its

dedication and quality consciousness. It has the most modern spinning and weaving

plants, considered as trendsetters and dominant in technology, quality and product - mix in

the Indian Textile industry.

The Spinning units are equipped with preparatory machines from Trutzschler, Rieter,

Vouk, Crosrol and Lakshmi Machines. The post - spinning machines have been imported

from Schlafhorst (Autoconers 238 & 338), two – for - one twister from Volkmann, Leewha

and Murata. The group’s philosophy is not to compromise on technology or raw

material. Thus special fibres like flame retardant polyester from Hoechst (Germany),

Tencel from Acordis (U.K.), Flax from Belgium and Silk from China are imported to

spin world – class yarns. The units are also equipped with Fiber dyeing IITHP dyeing

technology from Dalal - Obermeir. Weaving Plants have Sulzer P7100 & P7200, projectile

& rapiers, apart from air jet & Sulzer and Toyoda weaving machines.

Its Denim and 46MW Captive Power Plants have commenced operation. As a significant

milestone of its expansion plan, RSWM International B. V. Holland is incorporated as a

100 % subsidiary of the company. It has also announced the acquisition of Cheslind

Textile Ltd., a Bengaluru based textile unit.

In a culture, where the earth is referred to as Mother, caring for the environment is

ingrained. In caring for the earth we are committed to leaving our children and the

generations to come a clean, green earth. A promise that we live by and live up to in

everything we do.

At every step in the manufacturing process, we employ eco -friendly processes not just

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to abide by laws but also to sustain and take forward the 'green' traditions that form a

rich part of our heritage. Effluent treatment is carried out using the latest state – of – the -

art technology. All the water used in fabric dyeing and finishing is recycled for use in

the process - house and in horticulture. We are continuously greening all our plants,

residential and other facilities, planting thousands of saplings every year. Environmental

care is executed with an eye for detail. The Banswara unit has over 42,000 square

metres of greens, with over 50,000 plants having been planted on the campus and an

exquisite 11 – acre orchard surrounding an artificial lake. The Banswara unit was accorded

the best plantation award in Rajasthan.

Rajasthan Spinning & Weaving Mills Ltd. (RSWM), the leading Company of the LNJ

Bhilwara Group, is principally engaged in the manufacture of synthetic, blended, mélange

and specialty yarns and fabric.

RSWM is a premier company of the Group, with a turnover of Rs.1173.82 crore in

2010 - 2011. RSWM is exporting a complete range of yarn and fabric to over 70

countries worldwide, giving RSWM a markedly visible presence across the textile world.

The manufacturing capacity of the Company is upwards of Yarn per annum from its five

units - Gulabpura, Banswara, Mandpam, Rishabhdev and Ringas located in Rajasthan.

RSWM also manufactures of fabric per annum at its Mordi (Banswara) unit. All the

plants are equipped with state – of – the – art machines and Captive Power Generation

facilities. RSWM is the first composite textile mill in India to be accorded the ISO

Certification. The Company also enjoys a prestigious ‘Three Star Export House’ status

and, over the years, has received several Export Awards from SRTEPC.

The company’s leadership in the textile industry is exemplified in the equity that its

brand enjoys in the Indian market - place – “Mayur Suitings”

RSWM is in the process of modernization drive and increase of spindles of its all the

manufacturing units. RSWM will soon introduce ready - to - wear Apparels. To enhance

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its operating capacity, RSWM has acquired Jaipur Polyspin Ltd. for manufacturing of

Synthetic Blended Yarn.

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COMPANY PROFILENATIONWIDE NETWORK

RSWM Ltd

GulabpuraSynthetic, Regenerated Cellulosic, Blended, Dyed Yarn &

Fabric

Banswara Synthetic, Regenerated Cellulosic & Cotton-Blended Grey Yarn

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Mandpam Cotton Mélange Yarn, Cotton-Blended Mélange & Dyed Yarn

Rishabhdev Synthetic, Blended & Grey Yarn

Ringas Synthetic & Blended Dyed Yarn

Bangalore Apparels

Mordi (Banswara) Process House

HEG Ltd. Mandideep Graphite Electrodes

Durg Steel

Durg Waste Heat Recovery Power

Tawa Hydro Electric Power

Maral Overseas Ltd. Maral Sarovar Cotton Yarn, Cotton-Knitted (100% EOU) Fabric & Cotton Knitwear

Jammu Cotton-Knitted Fabric, Cotton Knitwear & Sweaters

Noida Knit wears

BSL Ltd.

Mandpam:Yarn, Worsted & Synthetic Fabric, Readymade Garments &

Accessories

Bhilwara Spinners Ltd.

Bhilwara Synthetic, Blended Grey & Dyed yarn

Bhilwara Melba De Witte Pvt. Ltd.

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Mordi (Banswara) Specialized Automotive Fabric, Furnishing Fabric

Bhilwara Processors Ltd.

Mandpam Processing of Synthetic & Worsted Fabric, Tops Fiber Dyeing

Malana Power Company Ltd.

Malana Hydro Electric Power (Kullu)

AD Hydro Power Ltd.

Manali Allian-Duhangan Hydro Electric Power

Indo-Canadian Consultancy Services Ltd.

Noida Power Engineering Services

Bhilwara Scribe Pvt. Ltd.

Bhopal IT-Enabled Services

Corporate Office

Noida National Capital Region and Delhi

Regional / Marketing Offices

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Mumbai

Kolkata

Bangalore

Delhi

Ludhiana

AWARDS

The LNJ Bhilwara Group not only has several firsts to its credit but also recognition

for its commitment to quality and excellence with several national awards and

certifications.

GRAPHITE ELECTRODE

HEG is the winner of CAPEXIL Highest Export Award for Graphite Electrodes for the

last 18 consecutive years.

HEG bagged "Rajiv Gandhi National Quality Commendation" and ‘National Export’

Awards.

HEG- Graphite Division bagged National Export Award.

HEG bagged 3 National Awards for Quality Circles.

TEXTILES

RSWM is the winner of SRTEPC Highest Export Award for polyester/viscose yarn

exports for the last several consecutive years, which includes two gold and one bronze in

March 2005.

Maral is India’s fully integrated 100% EOU cotton knitwear unit and winner of

TEXPROCIL Silver trophy in 100% EOU / EPZ category. Maral has also been awarded

Silver Trophy by AEPC.

Maral is the recipient of Rajiv Gandhi National Quality Award.

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Maral bagged "Greentech Safety Award".

RSWM, Rishabhdev unit bagged National Export Award. Rishabhdev unit also bagged

SRTEPC Excellence award for highest production in export of 100% Polyester spun

yarn.

BSL received the "National Certificate of Merit" for outstanding export performance.

Bhilwara Spinners has been accorded the prestigious “Niryat Shree”-Certificate of

Excellence for Outstanding export performance.

Power

Malana Power bagged “ Greentech Environment Excellence’ Award.

INTERNATIONAL PARTNERS & ASSOCIATES

The LNJ Bhilawara Group, in its quest for excellence and growth has partnered

with the following international companies:

Stat Kraft Norfund Invest Ltd., Norway-Setting up a 192 MW Hydroelectric Project at

Manali.

RSW International, Canada -Power Consultancy Services.

International Finance Corporation, Washington -Equity holders in AD Hydro Power

Project

De Witte Lietaer, Belgium -Specialized Automotive Furnishing Fabrics

Tencel, UK (now Lenzing, Austria)-Tencel Yarn Spinning

Hoechst’ (now Trevira CS), Germany-Flame Retardant Yarns & Fabrics

eScribe Inc., USA -IT Enabled Services

Enercon (India) a subsidiary of Enercon (Germany)-Setting up Wind Energy Project

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BUSINESSES OF RSWM LTD:

RSWM is a leading manufacturer of synthetic and blended spun yarn and fabric. It is

one of the largest exporters of synthetic yarn from India and has a commanding position

in the domestic market. The company also has a presence in the cotton yarn. Spinning,

fabric, processing and garments manufacturing segments, Last year was went to start

production in its denim manufacturing plant in Mordi (in the district of Banswara in

Rajasthan), the Company is now present across all segments in the textiles value chain.

During the year under review, the gross turnover of the Company increased by 10.25%

to Rs. 1064.69 Crore in 2006 – 2007, from Rs. 1173.83 crore in 2007 - 2008. This

performance was led by strong performances in both domestic and export markets.

RSWM exports its yarn and fabric to over 70 countries in Europe, North, and South

America, the Middle east, Africa, South - east Asia and Australia. Chart (Under) shows

the performance of the Company in its key markets. Exports of the Company grew by

10.11 % to Rs. 532.58 corer in 2006-07 from Rs. 586.44 corer in 2007 - 08, while

domestic sales grew by 10.39 % during the year. (2010 -11 Domestic Sales - 532.10, 2011-

12 Domestic Sale - 587.39)

As a result, the share of export has increased and now accounts for over 50% of

RSWM’s revenues the – art process house at Mordi, Banswara and Rajasthan.

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Chart-a- Revenues in key markets

(Rs. In corers)

Domestic Sales

Exports in Key Markets

500

510

520

530

540

550

560

570

580

590

2006-07 2007-08

Sales

Sales

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500

510

520

530

540

550

560

570

580

590

2006-07 2007-08

Sales

Sales

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YARN BUSINESS

RSWM offers one of the broadest ranges of products in terms of fiber blends, counts

and shades. Fiber processed by the Company includes polyester, viscose, acrylic, cotton,

wool, rayon, silk, polyamide, and linen. In addition, the Company produces a range of

specialty products made out of both unorthodox fiber, e. g. Soya protein and bamboo,

and branded fiber such as tencel and lycra. Many of these yarns have functional qualities

flame resistant, anti-bacterial, anti-static, odour preventive and UV protective. These are

niche products and the Company expects their market size to increase in the future.

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

able to benefit from additional capacities, which became available during this period,

especially in grey yarn and Denim. On the cost side, due to global hike in the prices of

oil, furnace oil prices are a big cause of worry for the industry.

RSWM was able to increase its production of yarn, thanks to the completion of its

modernization and expansion plan that started in 2004 - 05. Yarn sales grew by 6.44% to

Rs. 229.07 crore in 2011 - 12 from Rs. 215.21 crore in 2010 - 11. The current portfolio

of RSWM can be categorized into three main categories – Gray Yarn, Dyed Yarn and

Mélange Yarn.

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GREY YARN

Grey yarn is produced using blends of different synthetic fiber such as polyester and

viscose, blends of synthetic and natural fiber and pure cotton at the Banswara and

Rishabhdev plants. Although grey yarn constitutes a relatively lower value - added

segment, vis-à - vis dyed and mélange, it is by far the largest in terms of volume and is

crucial to the product portfolio offered to customers.

During 2007 - 08, RSWM Ltd. added 24000 spindles of polyester cotton blended yarn at

its Kharigram unit. Manufacturing of 100% viscose yarn at the Rishabhdev plant and

open end rotors at the Banswara unit purchased levels 2006 - 07, also achieved full

production levels during the previous year. During the previous to previous year, the

Company had diversified into manufacturing 100% cotton yarn. In 2007 - 08, spindles

under 100% cotton yarn increased marginally to 44,000, taking the total capacity of Gray

yarn to 1,64,000 spindles.

Apart from the increase in production due to addition capacity developed during the year,

there were considerable increases in operating efficiencies, as a result of the

modernization of existing plant and machinery.

DYED YARN

Dyed yarn is produced at the Company's Gulabpura and Ringas plants. These are

relatively higher value added products and made according to customer specifications of

blend, counts and shades. With the amalgamation of Jaipur Polyspin Limited (the Ringas

plant),

RSWM has a capacity of around 92,000 spindles for Dyed Synthetic yarn. During the

year, the thrust of the business was on developing new products with better margins for

a diverse set of the end - use segment which included knitting, Furnishings, home textiles

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and carpets. Such sales represented approximately 6 % of the total sales of dyed yarn,

and are expected to grow in the future.

MÉLANGE YARN

Mélange yarn is a premium product made from cotton and its blends and is used in

manufacture of knitwear and hosiery. During the year, the Company had increased

its capacity of Dyed Mélange yarn, following which it has become one of the

largest manufacturers of mélange yarn in the country with 30,000 spindles. While

this segment is still quantitatively very small compared to the grey and dyed yarn

business of the Company, it commands the highest value added in RSWM's overall

yarn portfolio. During the year, Mélange yarn sales increased by 12.03%.

MARAL OVERSEAS LIMITED (MOL)

Maral Overseas Ltd., a part of the LNJ Bhilwara Group, a conglomerate with a global

presence. Maral is the country’s largest ‘Vertically Integrated’ knitwear company located

in the heart of India’s cotton producing region near Indore, Madhya Pradesh.

Its other units are located in Jammu and Noida (NCR - Delhi). Maral is India’s first

100% Export – Oriented – Unit to get the prestigious ISO certification. Maral has been

accorded a ‘Trading House’ status, and is an internationally preferred manufacturer and

supplier of Cotton Yarn, Knitted Fabrics, Knitwear and Sweaters. Maral has been

accredited by Marks & Spencer.

BHILWARA MELBA DE WITTE PVT. LTD.

Bhilwara Melba De Witte Pvt. Ltd. (BMD) was established in 1998. It is a joint venture

of LNJ Bhilwara Group and De Witte Liter, a part of Gamma Holding of Belgium, to

manufacture high performance specialized furnishing fabrics.

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BMD has its manufacturing plant at Banswara in Rajasthan. It has fully integrated state –

of – the – art facility for automotive textiles,

which is equipped with Air – texturing, yarn dyeing, warping, weaving, warp & circular

knitting, processing and lamination.

BSL LIMITED (BSL):

BSL Ltd. Established in 1971 at Bhilwara, Rajasthan. Today, BSL has

emerged as a strong global player producing over 12 million meters of

fabric every year. BSL is equipped with state – of – the - art technology.

Right from raw material sourcing to product finishing, meticulous

attention is paid to detail at every stage of production.

The emphasis is to achieve shorter lead times and greater efficiency by following

integrated yarn preparation, spinning, weaving and finishing processes.

BHILWARA SPINNERS LTD.

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

Synthetic Blended Grey and Dyed yarns at its manufacturing Unit at

Bhilwara in Rajasthan. Today, the company has 30,000 spindles to

manufacture 12,000 MT per annum. Bhilspin has been accorded “Export

House" status and conferred "Niryat Shree” for its export performance.

Bhilspin also enjoys IS / ISO 9001 : 2000 certification.

FABRIC AND GARMENTS BUSINESS

The company manufacturing a range of blended suiting fabrics and

has a significant presence in the domestic market with its Mayur

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brand. Apart from this, the segment includes a new garments unit in

Bangalore and a fabric processing plant in Mordi Banswara (Rajasthan).

FABRIC

RSWM believe that there is a huge potential for this business in the

new market scenario and has plant to strategically move to the higher

value added products in Fabric. The company expects significant gains

from this move and has plans to further ramp - up the fabric

manufacturing capacity. To give a quantum boost to these initiatives,

RSWM signed up with Salman Khan, one of the most popular actor

in the bollywood, as the brand ambassador for its Mayur range of

Suitings and shirting.

GARMENTS

During the year, the company scaled ups the commercial production in

its new garments facility in Bangalore. The business has a strong order

book position and the company expects a healthy pay back from the

Garment business in the future.

DENIM

During the previous year, RSWM had decided to enter in the Denim Fabric

manufacturing business, in line with its strategy to move to higher value added segments

for wider based growth in the future. With in the category, your company plans to focus

on producing high - end specialty Denim fabric, which has better realization and demand

in international market. The state – of – the art denim manufacturing facility, will come up

at its existing ovation in Mordi, and have a capacity of 27 million meters per annum.

THERMAL POWER

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RSWM”s manufacturing process relies on furnace oil based power Plans for their energy

requirements. High crude oil prices during the Last fees years have had an adverse

impact on the profitability of our Operation. Last year, company decided adverse impact

in thermal power plants to rope in this ever – increasing cost of power. The 46 MW

plant is being located in Banswara, Rajasthan. The plant will provide captive power to its

existing operations in Banswara, Bhilwara, Rishabdev, Kharigram, Ringas, Mordi and also

the proposed Denim projected in Mordi. The existing furnace oil – based power plants

will be kept as stand – by - facilities.

HEG LTD.

HEG Ltd., a premier company of the LNJ Bhilwara Group, is India’s

leading Graphite Electrodes manufacturer and an established global

player in the sector. It is the single largest integrated Graphite

Electrodes manufacturing facility in South Asia South East Asia and the

Middle East. HEG is also the only one of its kind in the region to

process the sophisticated UHP (Ultra High Power) Electrodes with

technology from SERS – a subsidiary of Pechinery, France.

SOCIAL INITIATIVES

Over the last 47 years, RSWM has taken a number of initiatives in education, healthcare

and community development. The company has established and Promoted a number of

school and training centers, including facilities for the Physically disadvantage near its

manufacturing plants. It also runs “MAYUR HELPLINE” a 24 hour free ambulance

service for trauma victims. The company stated an initiative to create awareness in

nearby village about the Activities of the company and providing employment to local

people. In Kharigram, a blood donation camp was organized; where 77 units of blood

were Donated by employees of unit.

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INTRODUCTION TO THE INDIAN TEXTILE WORLD

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

significantly to the industrial production, employment generation and foreign exchange

earnings.

The Indian textile industry is extremely complex and varied with hand - spun and hand -

woven sector at one of the spectrum and the capital – intensive sophisticated mill sector

at the other, with the decentralized power loom and knitting sectors coming in between.

This industry uses natural fibers - cotton, jute, silk and wool, as well as synthetic / man

– made fibers - polyester, viscose, nylon, acrylic and their multiple blends.

The complex and varied structure of the industry coupled with its close linkage with our

ancient culture and tradition provides it with the unique capacity to produce, with the

help of latest technological inputs and designs capability, a wide variety of products

suitable to the varying consumer tastes and preferences, both within the country and

overseas.

The textile industry has shown remarkable resilience and grown considerably in terms of

installed spindle age, yarn production and output of fabrics and garments.

It is the only industry, which is self – reliant and complete in value chain i. e . from raw

material to the highest value added products - garments / made - ups.

Therefore the growth and development of this industry has a significant bearing on the

overall development of the Indian economy.

Year 2005 (An opportunity knocking at our Door) "Garment Export a rocket propellant

for employment generation." The scope of improvement that can be made on the

employment front with in a very short span of time with minimum investment, only if

the Government of India places it as per priority industry like some of our neighboring

countries have. Thus Garment Manufacturing and Export industry that is the real engine

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of growth for the whole textiles sector in India. With substantial and development of

this sector, there is much scope for the growth of Indian textiles for exports.

With promise of greater globalization and liberalization, Indian textile industry seems to

be looking ahead with both challenges and innovations, to have close look at how the

major structural changes in world economy will affect the prospects of Indian textiles

Industry.

In light of this, a review of Indian textile scenario in particular and the world situation

in general will help all sectors of Indian Textile industry to re - organize themselves to

face new challenges both known and unknown that may come in future. Thus we find

many scopes in the development of Indian Textile Industry.

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INDIAN TEXTILES INDUSTRY

Textiles account for 14 percent of India’s industrial production and around 50 per cent

of its export earnings. From growing its own raw material (cotton, jute, silk and wool) to

providing value added products to consumers (fabrics and garments), the textile industry

covers a wide range of economic activities, including employment generation in both organized

and unorganized sectors. Indian fabric is in demand with its ethnic, earthly colored many

textures. This conveys that it holds potential if one is ready to innovate.

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

‘to generate 12 million new jobs by 2012. It generates massive potential for employment in the

sectors from agricultural to Industrial. Employment opportunities are created when cotton is

cultivated. It does not need any exclusive Government support even at present to go further.

Only thing needed is to give some directions to organize people to get enough share of the

profit to spearhead development.

SEGMENTS

Textile industry is constituted of the following segments

• Readymade Garments

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

• Man-made Textiles

• Silk Textiles

• Woolens Textiles

• Handicrafts including Carpets

• Coir

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• Jute

Manmade fibers account for around 40 per cent share in a cotton dominates Indian

textile industry. India accounts for 15% of world’s total cotton crop production and records

largest producer of silk.

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

areas. India has a large pool of skilled low-cost textile workers, experienced in technology skills.

• Almost all sectors of the textile industry have shown significant achievements. The sector

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

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

the penetration of Indian basic yarns and grey fabrics in international commodity markets. Small

and flexible batches of apparels can be manufactured in India and can provide a larger variety of

casual wears and leisure garments at significantly lower costs.

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

as polyester staple fiber, polyester filament yarn, acrylic fiber and viscose fiber are produced in

India.

CURRENT SCENARIOTextile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the

US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and

Japan. The name of these countries with their background can give thousands of insights to a

thinking mind. The slant cut that will be producing a readymade garment will sell at a price of

600 Indian rupees, making the value addition to be profitable by 300 %.become competitive; on

closer look however, it sounds an opportunity because better material Currently, because of the

lifting up of the import restrictions of the multi-fiber arrangement (MFA) since 1st January,

2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the

market haswill be possible with the traditional inputs so far available with the Indian market.

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At present, the textile industry is undergoing a substantial re-orientation towards other then

clothing segments of textile sector, which is commonly called as technical textiles. It is moving

vertically with an average growing rate of nearly two times of textiles for clothing applications

and now account for more than half of the total textile output. The processes in making

technical textiles require costly machinery and skilled workers.

The application that comes under technical textiles are filtration, bed sheets and abrasive

materials, healthcare upholstery and furniture, blood-absorbing materials and thermal

protection, adhesive tape, seatbelts, and other specialized application and products.

STRENGTHS

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

largest producers of cotton yarn around the globe, and also there are good resources of

fibers like polyester, silk, viscose etc.

There is wide range of cotton fiber available, and has a rapidly developing synthetic

fiber industry.

India has great competitiveness in spinning sector and has presence in almost all

processes of the value chain.

Availability of highly trained manpower in both, management and technical. The

country has a huge advantage due to lower wage rates. Because of low labor rates the

manufacturing cost in textile automatically comes down to very reasonable rates.

The installed capacity of spindles in India contributes for 24% share of the world, and it

is one of the biggest exporters of yarns in the global market. Having modern functions

and favorable fiscal policies, it accounts about 25% of the world trade in cotton

yarn.

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The apparel industry is largest foreign exchange earning sector, contributing 12% of

the country's total exports.

The garment industry is very diverse in size, manufacturing facility, type of apparel

produced, quantity and quality of output, cost, requirement for fabric etc. It comprises

suppliers of ready-made garments for both, domestic or export markets.

WEAKNESS

MASSIVE-FRAGMENTATION:

A major loophole in Indian textile industry is its huge fragmentation in industry structure,

which is led by small-scale companies. Despite the government policies, which made this

deformation, have been gradually removed now, but their impact will be seen for some time

more. Since most of the companies are small in size, the examples of industry leadership are

very few, which can be inspirational model for the rest of the industry.

POLITICAL AND GOVERNMENT DIVERSITY: The reservation of production for very small companies that was imposed with an intention to

help out small scale companies across the country, led substantial fragmentation that distorted

the competitiveness of industry. However, most of the sectors now have been de-reserved, and

major entrepreneurs and corporate are putting-in huge amount of money in establishing big

facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the

Government has gradually eliminated these restrictions, by bringing down import duties on

capital equipment, offering foreign investors to set up manufacturing facilities in India. In

recent years, India has provided a global manufacturing platform to other multi-national

companies that manufactures other than textile products; it can certainly provide a base for

textiles and apparel companies.

Despite some motivating step taken by the government, other problems still sustains like

various taxes and excise imbalances due to diversification into 35 states and Union Territories.

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However, an outline of VAT is being implemented in place of all other tax diversification,

which will clear these imbalances once it is imposed fully.

LABOR LAWS:In India, labor laws are still found to be relatively unfavorable to the trades, with companies

having not more than ideal model to follow a 'hire and fire' policy. Even the companies have

often broken their business down into small units to avoid any trouble created by labor

unionization. In past few years, there has been movement gradually towards reforming labor

laws, and it is anticipated that this movement will uphold the environment more favorable.

DISTANT GEOGRAPHIC LOCATION:

There are some high-level disadvantages for India due to its geographic location. For the

foreign companies, it has a global logistics disadvantage due the shipping cost is higher and

also takes much more time comparing to some other manufacturing countries like Mexico,

Turkey, China etc. The inbound freight traffic has been also low, which affects cost of shipping

– though, movements of containers are not at reasonable costs.

LACK OF TRADE MEMBERSHIPS:India is serious lacking in trade pact memberships, which leads to restricted access to the other

major markets. This issue made others to impose quota and duty, which put scissors on the

sourcing quantities from India.

OPPORTUNITIES Complete elimination of the quota restrictions under the Multi Fiber Agreement (MFA)

by 2005 will provide an expanded opportunity alongside enhanced competition for the

Indian textile units, as more markets would be open for access.

The government encourages the establishment of 100 per cent export oriented spinning

units. According to the 2000-01 Exim policy, all capital goods in the textile sector have

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been covered by Export Promotion Capital Goods scheme, which attracts 5 per cent

customs duty without any countervailing duty.

POLICY INITIATIVESThe government adopted the National Textile policy in 2000 to harness opportunities for

increasing India’s share in global trade. The policy aims to increase the value of textile and

apparel exports from the current US$ 10 billion to US$ 50 billion by 2010. It also aims to

increase cotton productivity by at least 50 per cent and upgrade its quality to international

standards.

The government will encourage the establishment of world-class integrated textile

complexes and processing units. A scheme for setting up integrated apparel parks has

been initiated. This will enable the ready-made garment industry to set up modern units

with excellent infrastructure. Rapid implementation of the Textile Up gradation Fund

Scheme aimed at providing an impetus to the modernization of textile and jute industries

is a priority with the government. A provision of US$ 41 million in 2001-02 and an

incentive for modernization is offered by enhancing the depreciation rate of machinery

installed under the scheme to 50 per cent per annum.

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DEPARTMENTS

PRODUCTION DEPARTMENT

SPINNINGThere are three sections in spinning unit mainly preparatory section, Spinning

section & post spinning section. The main function of this section is proper mixing of

polyester & woolen raw material, which comes in pressed bales & manufacturing of yarn

65% relative humidity, is required in this section.

This truly international blended yarn is the result of the world's premium

technologies, Radio frequency dryers, which are ultimate in advancement of dryin g dyed

polyester & woolen tops & grilling & combining machines from NSC, France

internationally renowned for the mixing of polyester woolen blends contributing to the

yarn's technologies supremacy are BSL ring frame machines and electronically monitored

T.F.O. Auto corners The Zinsser ring spinner 421 combines solid & reliable engineering

with top-level efficiency, reliability & sturdiness using automation & high teach

components of the future.

WEAVING

This section is divided into 4 subsections i.e. preparatory, loom, checking &

mending .The main function of this section is manufacturing of fabric from yarn 74%

relative humidity is maintained in this section. In this section the richest quality

polyester & viscose go into the fashioning this dream blend of suiting & BSL sulzerruti

shuttle less-projectile looms weave an extremely advanced & precision controlled

fabric. The fabric is credited with optimum finish.

PROCESSING

There are two sub sections dying & finishing. It is designed to quickly & evenly

impart the desired degree of finish & to accurate consistently repeat this under the

production conditions. Finishing is undertaken with sharing equipment and finally rotary

press ensures all the work, that every inch of the fabric is uniformly accepted worldwide.

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Supervisor, machines & papers press give the fabric a qualitative finishing edge. The

processing technology is employed to create these fabrics in truly world-class fashion.

IT DEPARTMENT

RSWM leverages information technology (IT) tools extensively in its operations to

achieve creator productivity & efficiency. The company has integrated IT in its core

functioning from purchase of raw material to sale of final product. The company deployed

a specialized ERP (enterprise resource planning) solution for textile companies, which is

fully functional across all its existing manufacturing location.

This solution enables the company to get real time information on customer orders,

raw material purchase, and material handling stores & inventory situation, production,

standard costing, invoicing & sales. Apart from this core system, the company also uses

specialized modules for functional areas of finance & human resources.

At first when RSWM realized the need, such type of computer arrangements

through which they can transfer or collect the data or information conveniently & online

with the help of computer setup among there unit.

RAW MATERIAL DEPARTMENT

Raw material department deals with the raw material requirement by different

units. According to the final yarn required every unit calculate their raw material

need & give this to raw material department. Then they will decide how much

material should order for the month on the basis of analysis that how much material

is present in godown& how much is in transit. These requirements are than sent to

Mumbai office where all the units of RSWM send their respective requirements &

than their purchase is done on group basis in lump some amount in order to get raw

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material at economic rate. The minimum level that is maintained in godown is

25%.Various types of raw material used our here are as follows:

Viscos

Polyester

Cotton

Acrylic

Silk

Nylon.

Mainly the raw materials come from following place: Rajasthan, Gujarat, M.P. and Maharashtra.

In unit 6, 7, 8 there is a production of 100% fiber either cotton or polyester.

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PERSONAL DEPARTMENT

RECRUITMENT:-

Recruitment of suitable person for specific post and his proper placement plays a very

important role for smooth running of the industry.

The sources of candidates for filling of vacancies are: -

1. Through district employment exchange.

2. Through advertisement in the Newspaper.

3. Through putting up a notice of vacancy on the notice board.

In our case as we are not recruiting any experienced workmen other than Maintenance

& Engineering Department. Therefore, we have to depend only on District Employment

Exchange and through personal contact and propaganda through old labours, masters and

trainers only.

SELECTION:-

Candidates called for interview are required to clear the different criteria fixed for the

selection of candidates. They will have to submit the required documents which are essential

for the selection of the candidates. Main function of personal department is to selection of

workers according to their norms & rules.

There are some norms for selection of the workers.

1. He must be educated of 12 th standard.

2. His age between 18 to 25 year.

3. His minimum height minimum5.2

4. His weight is minimum 48kg.

5. Finger-& Eye are also tested before selection of workers.

6. Blood group, two photo & reference are essential.

7. Some silent norms of the industries.

They also select non-experience workers for their long life work. They select

60% outsiders & 40% local people for their work.

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RSWM provide a better environment & also provide so many facilities to their

workers. They provide mess facilities, bus facilities, and rest room; provide dress,

dispensary & so many more facilities are provided to the worker by RSWM.

PLACEMENT:-

The workmen are then divided in two batches as per the requirement of the land

as per the knowledge and physique of the workmen. Within total 52 days all workmen are

being trained in different departments and after taking their technical test the successful

persons are then given to their respective department and considered as half workmen or

LCT.

DETAILS OF WAGES/STIPEND PAID TO A NEW WORKMEN

1. 1-40 : Rs.73/- P.D.

2. 41-100 : Rs.83/- P.D.

3. 101-145 : Rs.96/- P D.

4. 146-270 : Rs.106/- P.D.

5. Up to 271 : Rs.190/- P.D.

OTHER FACILITY:-

1. C.L. –THEY GET ONE C.L. ON 32 ATTENDENCE

2. P.L. - THEY GET ONE P.L. ON 20 ATTENDENCE

3. P.F. - 12% OF EMPLOYEE & 12% OF EMPLOYER

4. GRAT UITY- 5%

5. BONUS- 20%

6. PAY HOLIDAY-

7. INSURANCE-

8. DISPANCERY-

9. CYCLE STAND-

10. HOSTEL-

11. SPORTS WEEK-

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12. PRIZE SCHEME-

13. PROMOTION-

14. DRESS, SHOES, &SOCKS-

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MAINTENANCE OF PERSONAL RECORDS

Once a workmen /Staff is recruited, it becomes very essential to keep all his

personal records in proper file. The Personal records give us the details of his job profile,

e.g. details of his permanent and present address, department, code No., Blood Group, his

reference, Mill No. Permanent shift allotted to the 'workmen, his education details,

experience details, wages and increment details. The personal; record also contains details of

warning/charge sheets and suspension the individual workmen from time to time,

promotion details etc.

TIME OFFICE DEPARTMENTAnother important function of the P & A department is keeping proper record of attend ance

of staff/workers and also to provide the required number of labors in each shift for smooth

running of the plant. Presently we have a system of signing in the register for staff members

and time punching system for workers.

Workers are dividing into four Shifts.

Shifts Timing Lunch break

General 8.00 A.M. To 5.00 P.M. 1.00 pm 2.00 P.M

X – A 7.00 A.M. To 3.00 P. M. Half an hour during the shift

Y- B 3.00 P.M. To 11.00 P.M. __””__

Z - C 11.00 P.M. To 7.00 A.M. __””__

Duty hours for staff other than shift is: Lunch break

9.00 A.M. To 1.00 P.M. 1.00 P.M. To 2.00 P.M.

2.00 P M. To 6.00 P.M.

Time keepers verify the engagement of every labour by going to the dept. after

beginning of the shift. At the end of the month total present days are calculated and

salary/wages are prepared. Salary to staff is paid through SBBJ Bank on 1st day of every

month. The salary details arc sent to Bank and salary slips are given to the individual

staff member. Wages are paid to all workmen in cash oil 10th day of every month Wages

issued to all workmen on 7th of every month.

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Unpaid wages are paid to workmen on every 21st day of the month Important

function of time office.

1. Record of old & new worker.

2. Personal detail of worker

3. Payment of worker

4. Bonus working days PL & leave are recorded.

5. Attendance record.

P.F.12% of salaries

LEGAL DEPARTMENT

All the cases pertaining to personal department and the negotiable instrument are

dealt with by legal I/C. All cases relevant to any court fall under his jurisdiction.

Cases of personnel department are dealt in the following:

Court of Asst. labour commissioner

Labor tribunal

High Court

Pertaining to dismissal and compensation, the company has no retainer as on date.

He issues his notice, prepares plaintiff document and engage advocates for filling the cases

is various courts. This is all about the legal I/C. A part from his, another department i.e.

Public Relations is also dealt by manager Legal.

SAFETY COMMITTEE

The main aim of safety department if to secure of whole the workers from the

uncertainty & risk because in the mill so many workers are work on machinery & on

electronic tools and the safety of those worker is most important for the organization.

For the security of the workers they have some rules within the organization & also

have so many security guards, which are care of all the employees in every department &

also on main gate of the mill.

Management has provided the helmet for the security of the workers. When any

worker is come into the mill then the guard has right to check there helmet, & within the mill

the maximum speed of the vehicles is 20km/ph.

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They have a dispensary within the organization for the workers because when they

injured then they get fast treatment and three compounder are appointed in three different

shifts so the workers get the benefit in night also.

HRD DEPARTMENT

The management of human resources has very significant area to define human

values, physical social activities and for saving this peculiarities. Every company makes

criteria, which consist of human principles so this company has also separate department for

human resources.

The main work of HRD department is manpower planning. The whole process of the

worker after selection is done in the HRD department. Where the man’s are needed & what

person do what work & in what time is all planning is done in HRD department.

HRD Activities of Workers –

New workers

Old workers

(a) HRD activities for new workers-

Following works is carried out by HRD for new workers:-

i. General process orientation.

ii. Fiber → marketing, brief knowledge / overview Safety

iii. Fire fighting etc.

These above activities are carried out for the first 40 days, during these days the

practical training carried out on the show floor. After 40 days of training, the new workers are

sent to respective dept. as half skilled workers. So after all this i.e. 104 days their skill test is

taken &if they pass, then they will be regarded as skilled workers.

(b) Activities for old workers:-

Training is given to them from time to time to upgrade their skills, HRD organize

refresher courses that are need based whenever they get the requirement from the respective

dept. in the organization and identification of the need is done by the respective dept. in

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consultancy with the HRD dept. HRD has also got the responsibility to schedule the training

schedule.

Milestones

RSWM has initiated a Rs. 900crore expansion plan. Its Denim & 46 MW Captive

Thermal Power Plants have commenced operation.

RSWM was recently felicitated with Rajiv Gandhi National Quality Award.

RSWM expands their spindle capacities at all the plants.

Ounced the acquisition of Cheslind textiles Ltd., a Bangalore based textile unit.

RSWM International B.V., Holland, Incorporated, a 100% subsidiary of RSWM,

executes a 50:50 JV with SISA S.A., Spain. The New JV entity is known as RSWM

SISA.

RSWM ropes in Salman Khan as brand ambassador for Mayur Suiting.

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