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
20
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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