Summer Training Project

On “SERVING THE BEST IN THE WORLD”

“A Case of Ludhiana Shawl Manufacturers”

Under Guidance Of

Mr. Rajpreet Chhatwal

Presented By

Savisca Singh

94972238279

Origin of shawls in the world can be traced back more than 700 years

The art of weaving in the Kashmir valley, was introduced in mid 14th century.

Indian shawl industry depends upon imported wool.

CURRENT SCENARIOCURRENT SCENARIO

Total no. of persons employed, includingpersons associated

27 lakh

Total Production Rs. 8,500 Crore

Total Investment Rs. 20,000 Crore

Total Imports Rs. 1,100.75 Crore

Total Exports Rs. 4,419.54 Crore

MAJOR PLAYERS IN LUDHIANA Oswal woollen mills Shingora International. Veer Textile Mills. Sharman Shawls. Vohra Shawls. Prince Textile Mills. Naresh Textile Mills

SHARMAN SHAWLS

Established in the year 1984, Sharman shawls pvt. Ltd., is a remarkable manufacturer, supplier and exporter of Textile Yarns and Fabrics.

Their product line reaches out to the clients spread across Argentina, Central America, Portugal, South Africa, Mexico, Spain, Jordan, Italy etc.

They manufacture yarns and fabrics from highly efficient machines, imported from Germany and Italy.

They keep upgrading these machines, so as to touch new standards of innovation and quality.

MISSIONMISSION

The company’s spirit of enterprise and dedication to quality symbolize their corporate culture where commitment leads to achievements.

The mission of the company is of continual improvement and sustained growth and of a family of workers who are given the best

benefits and working environment. 

VISIONVISION

Improving market reach out, particularly in the export markets through better networking with the market related BDS to facilitate this process.

This would be required to be clubbed with skilling of labor through

industry matched linkages with local institutions to induce quality production and cost efficiencies through better inventory control.

Strengths Good technological base High quality standards at affordable price Company’s culture and philosophy Commitment for growth Large variety

Weaknesses Lesser degree of professionalism. Small size companies lack economies of scale. Low investment in research and development. Labour shortage

Opportunities Market is expanding day by day, so the opportunity is there to expand the

business. Removal of international trade barriers.

Threats Introduction of better products by rivals/ competitors. Less prices charged by the competitors. Marketing will be the most problematic area where improvements are called

for. Continuous quality improvement will be the need of the hour.

FINANCIAL ANALYSISFINANCIAL ANALYSIS

Liquidity Ratios:

Current Ratio:

Particulars 2007-08 2008-09 2009-10

Current Assets

154751200.09 143441742.87 165560678.33

Current Liabilities

46270458.17 44575153.33 46203459.82

Current Ratio3.34 3.22 3.58

Quick Ratio:

Particulars 2007-08 2008-09 2009-10

Quick Assets 36840682.21 23197151.63 36669025.81

Current

Liabilities46270458.17 44575153.33

46203459.82

Quick Ratio 0.80 0.52 0.79

Absolute Liquid Ratio:

Particulars 2007-08 2008-09 2009-10

Absolute Liquid

Assets34003863.21 16185330.13 16588698.31

Current

Liabilities46270458.17 44575153.33 46203459.82

Absolute liquid

Ratio0.73 0.36 0.36

Operating Ratios:

Debtor Turnover Ratio:

Particulars 2007-08 2008-09 2009-10

Sales392593028.

00

397041321.

00

493120756.

50

Average Debtors

2836819.00

4924320.00

13546074.5

0

Debtor Turnover

Ratio

(in times)

138.39 80.63 36.40

Creditor Turnover Ratio:

Particulars 2007-08 2008-09 2009-10

Purchases238601768.3

6

224483660.3

9

302094979.7

7

Average

Creditors

27168283.10

30096428.00

30888335.00

Creditor

Turnover Ratio

(in times)

8.78 7.46 9.78

Profitability Ratios:

Gross Profit Ratio:

Particulars 2007-08 2008-09 2009-10

Gross Profit141394469.6

3

139544330.9

2

155583523.3

4

Sales392593028.0

0

397041321.0

0

493120756.5

0

Gross Profit

Ratio (%)36.02 35.15 31.55

Net Profit Ratio:

Particulars 2007-08 2008-09 2009-10

Net Profit 29682796.53 45010843.28 48323156.13

Sales392593028.0

0

397041321.0

0

493120756.5

0

Net Profit Ratio

(%)7.56 11.34 9.80

SALES

0 0 0

392593028397041321

493120757

0

100000000

200000000

300000000

400000000

500000000

600000000

year

sales(rs.)

sales

Year

Trend of net Profit

profit

29682797

4501084348323156

0

10000000

20000000

30000000

40000000

50000000

60000000

2007-08 2008-09 2009-10

profit

INTRODUCTION TO PROJECTINTRODUCTION TO PROJECT

TITLETITLE

SERVING THE BEST IN THE WORLD

A case of Ludhiana shawl manufacturers

Objectives of the StudyObjectives of the Study

To study marketing arrangements being adopted by shawl manufacturers.

To find out the problems prevailing in shawl industry of Ludhiana.

To identify the impact of various factors on shawl business of Ludhiana.

Research design: Descriptive research design

Data Collection Primary Data

Using Questionnaires

Secondary Data

From Internet, Newspapers, Journals.

Sampling Design:

Universe: All Textile Manufacturers and Exporters

Population: All manufacturers and exporters in Ludhiana

Sampling Unit: Any shawl manufacturer and exporter of Ludhiana

Sample size: 30 for shawl manufacturers

15 for shawl exporters

4.1.1 Product manufactured

4.1.2 Annual production

4.1.3 major problems

4.1.4 improvement of physical infrastructure

4.1.5 satisfaction level towards VAT refund policies

  Mean=0.16 0.16 |----------------|---------------|-|--------------|----------------| -2 -1 0 1

2

4.1.6 Subsidy Expected

Control in fluctuating prices of raw materialLower the cost of transportation Improve infrastructure facilities

4.1.7 Procedure To Avail Loan

Mean=2.77 2.77 |----------------|-----------|----|---------------|----------------| 1 2 3 4

5

4.1.8 Satisfaction Towards Interest Rate On Loans

Mean=0.06 0.6 |----------------|---------------|-|--------------|----------------| -2 -1 0 1

2

4.1.9 Factors As Hindrance In Growth

4.1.10 Import Of Raw Material

4.1.11 Countries from which raw material is imported

4.1.12 risks attached in payments

4.1.13 measures to fight competition

4.1.14 ease of retaining customers

4.1.15 increasing competition affecting prices and profit margins

4.1.16 member of shawl club

4.1.17 help by shawl club

4.1.18 factors for better future of shawl manufacturing

4.1.19 means of promotion

4.2.1 Follow promotional 4.2.1 Follow promotional measuresmeasures

4.2.2 Types of export 4.2.2 Types of export promotional measurespromotional measures

4.2.3 Export promotional 4.2.3 Export promotional budgetbudget

4.2.4 Branding Of Product4.2.4 Branding Of Product

4.2.5 Share Of Total 4.2.5 Share Of Total Production Out Of Total Production Out Of Total ProductionProduction

4.2.6 Export Performance4.2.6 Export Performance

4.2.7 Factors affecting 4.2.7 Factors affecting export of productsexport of products

4.2.8 Satisfaction Level With 4.2.8 Satisfaction Level With Export Incentives For Export Incentives For ExportersExportersMean=0.13 0.13

|----------|----------|---|--------|-----------|

-2 -1 0 1 2

4.2.9 Problems In Exporting 4.2.9 Problems In Exporting

◦ The exporters face many problems in their daily business which they feel to some extent even affect their business.

◦ That most of the exporters have to search for international markets by visiting their personally that they do not have advance technology for their promotions.

◦ The government that should provide the major aid to the exporters is the biggest hurdle or the factor affecting their business.

◦ Poor infrastructure of the city especially the power cuts and no airport facilities are the other major problems.

◦ Shortage of labor and rigid labor laws are also affecting the business.

◦ Major import of raw wool is from Australia.

Export formalities should be made simple and exporters should be made aware of the procedures and provided assistance by the government.

Government shall also work on improving the image of brand India by ensuring quality of manufactured goods and also make manufacturers aware of different quality standards followed by various countries.

Facilitating organizations should step forward to guide and help exporters.

Internet as channel for internationalization should be promoted.

Online databases need to be marketed and international companies must be made aware of there use.

The documentation process, which has been found cumbersome by many exporters, should be simplified so as to reduce the time, though the government has tried to initiate this with the aligned documentation system (ADS). The process still needs further simplification so as to reduce unnecessary paper work.

The excise and custom authorities should be made more effective and efficient.

More R&D and infrastructural facilities should be developed.

The government should provide easy credit facilities to exporters at reasonable rates of interest. The interest rates in most of the developed countries are far less compared to those prevalent in India. This makes the final product expensive and hence less competitive in the international markets.

THANK YOU