INTRODUCTION

The Indian textile industry has a significant presence in the world textile economy by virtue of its contribution to world textile capacity and production of textile fibers / yarns. The industry has about 21 percent of the worlds spindles and 6 % of the world rotor age and has the second highest spindle age in the world after china, with almost 5.64mn. Looms (including 3.89mn. handlooms), India has the highest loom age (including handlooms) in the world about 57%. Thus, India has a large textile production base and its the third largest producer of cotton yarn and contributes significantly to global trade in cotton yarn. India is also the second largest producer of cloth after china.

However, the textile industry in India is at the crossroads of change due to the rapid globalization of trade in the sector, in the change over to a free trade regime, a new competitive arena in the global textile trade in rapidly emerging.

With the changes in the world trade order characterized by the removal of quantitative restrictions, lowering of tariff barriers, it has become necessary to ensure that Indian textiles compete with loose manufactured in other countries in both quality and cost in order to increase Indias share in the market.

Although India is endowed with abundant raw materials and cheap labour, the relative backwardness of certain sectors of textile industry particularly weaving, chemical processing and finishing, is likely to hamper our exports in coming years.

INDIAN COTTON SECTOR ANALYSIS STRUCTURE OF THE INDUSTRY

The textile industry accounts for around 20% of Indias industrial and 31% of its total exports. Besides, it provides employment to around 20 million people. Cotton is the most important segment of the textiles industry, accounting for around 57% of the domestic fiber consumption and exports. With over 9 million hectares under cotton cultivation (which is the largest area employed for the purpose throughout the world) and an annual crop of around 2600million kg. India is amongst the worlds largest potential reservoirs of this popular fiber. Currently, India is the third largest producer of raw cotton in the world, after china and the US. Traditionally, Indias share of the world apparel exports had been small till around 1980, after which it began to grow significantly, reaching a figure of around 3 % during the late 1990s. Indian apparel is exported to over 120 countries, the most significant among which are nations that are parties to the Multi Fiber Arrangement (MFA).The MFAimporting countries together account for a total share of over 60% of Indias apparel exports. The MFA provides a framework under which developed countries impose quotas on exports of yarn textiles and apparel form developing countries. Amongst the regions, the most important export destinations for Indian apparel are the US and Western Europe, which together account for over 60% of Indias total exports.

Objectives of the Study:

Describe the strategy for becoming a world-class selling organization. To know about how different departments contributes in achieving good Performance. To find out the various problems faced by organization in different departments. Development of cost effective production technology.

INDUSTRY PROFILE

GLOBAL TEXTILE INDUSTRY

The global textile market is slowly shifting from China to India. With the textile quota abolishment this January, the textile market will be in good shape in India in the next five years. We dont want to miss out on the growth in this sector. Therefore, we are also hoping to raise our domestic sales, especially in the textile industry, said Mehta.

The capacity of dye manufacturers across the country would be roughly around 150,000 tones per annum. The manufacturers are also looking for capacity expansion in near future, High availability of raw materials and wide variety of cotton, highly trained technical and managerial manpower at competitive rates, competitive strength in spinning and yarn production, makes India one of the major players in the global textile market.

THE INDIAN TEXTILE INDUSTRY

The Indian textile industry has a significant presence in the world textile economy by virtue of its contribution to world textile capacity and production of textile fibers / yarns. The industry has about 21 percent of the worlds spindles and 6 percent of the world rotor age and has the second highest spindle age in the world after china, with almost 5.64 million. Looms (including 3.89mn. handlooms). India has the highest loom age (including handlooms) in the world (about 57%). Thus, India has a large textile production base and its the third largest producer of cotton yarn and contributes significantly to global trade in cotton yarn. India is also the second largest producer of cloth after china.

However, the textile industry in India is at the crossroads of change due to the rapid globalization of trade in the sector. In the change over to a free trade regime, a new competitive arena in the global textile trade is rapidly emerging. With the changes in the world trade, characterized by the removal of quantitative restrictions, lowering of tariff barriers, it has become necessary to ensure that Indian textiles compete with those manufactured in other countries in both quality and cost in order to increase Indias share in the market. Although India is endowed with abundant raw materials and cheap labour, the relative backwardness of certain sectors of textile industry particularly weaving, chemical processing and finishing, is likely to hamper our exports in coming years.

A HISTORY OF INDIAN TEXTILE INDUSTRY:

Textiles have historically formed an important component of Indias export .There is archaeological evidence from Mohinjo-Daro, which establishes that the complex technology of mordant dyeing was being used in the subcontinent from at least the second millennium, It is believed that the use of printing block in India started in 3000 B.C and some historians have concluded that India may have given birth to textile printing .Macro Polos record shows that Indian textiles used to be exported to China and South East Asia from Andhra and TamilNadu in the largest ships then known. Buddhist era scripts reveal that woolen carpets were known in India as early as 500 B.C. The technical skill that went into Indian carpets of the Mughal period is still hailed today.

A GOLDEN PERIOD AHEAD FOR TEXTILE INDUSTRY:

Following the removal of quantitative restrictions in textile from January 2005, some of the major exporters world wide will be managing free trade being cost competitive and managing the value chain efficiently. This would spur consolidation of export activities in top exporting nations. The Indian textile industry today faces a number of challenges

managing free trade, becoming cost competitive and manufacturing products at affordable prices to figure in the list of top exporters.

Indian manufactures needs to explore the possibility of making garments for a dollar because there is 2.5 billion-strong market in Latin-America, Eastern Europe and Russia to cater to. There is golden period ahead for the Indian textile industry, which is set to become $100 million in size by 2010. The industry is expected to attract 25 billion in investments in next three years, and would result in employment of 12 million people by 2010.

CHANGING SCENARIO OF INDIAN TEXTILE INDUSTRY:

The Indian textile is regaining its glory in the post MFA era multi-fiber agreement. Its been a long wait for the industry to prove its capabilities to rest of the world. Competition is tough both on the home and international fronts. With changing scenario, there are immense opportunities. There will be more challenges for the industry under WTO, because then the whole world will be a global village and thus there will be more competition. To survive in this frame work, exporters have to maintain quality consciousness and price competitiveness.

Indian textile manufactures have to enhance their productivity and exert extra efforts for improving quality to meet international customers expectation. They have to develop infrastructure, inculcate better training methods to their workers and other employees to work as per the international industrial norms. The financial sector has to be more flexible and strikes and shutdowns have to be banned in this industry. If a unit closes it will lose money, it will loose faith of its foreign customers, so not only the unit will be affected but the whole country will be adversely impacted. For an export oriented industry, there has to be a separate labor law. And there has to be consistency in implementation of the policies.

EFFECTS OF GLOBALISATION
With the decline in trade barriers among the countries there is a single market in todays world, due to which there is heavy competition amongst the different countries involving in trade. But trade barriers mean high prices for consumers. Consumers do not get the benefit of competition among countries. Decreased competition may allow domestic firms to change to higher prices.

Domestic producers that cannot successfully compete in the world market are not entitled to special protection from imports by the Government. Nations affected by restrictive import measures taken by a country may retaliate against what they consider to be protectionism and thus damage the import prospects of other companies. Firms that rely on imports would be less able to compete and would lose business. Erecting barriers to restrict the product of other countries creates political ill with countries with whom we may need to work on other matters in future. The industry today has a 20 percent share in the countrys total industrial production and 34 percent share in its total exports. It is the largest industrial sector employer providing occupations to over 26 million people. Second in the world textile industry in terms of capacity Indian textile exports rank 12th among the top 15 exporters of textiles in the world.

INDIAN TEXTILE SECTOR

In addition to its sheer size, the Indian textile sector has a dualistic manufacturing structure dominated by a hitherto fast expanding decentralized small-scale manufacturing segment and declining vertically-integrated, large-scale composite mill segment. For instance, the apparel industry has around 27,700 domestic manufacturers, over 48000 fabricators, and around 1000 manufacturer-exporters.
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Most apparel manufacturers, (80%) have small operations (with <20 sewing machines) while 90% of them are proprietorship / partnership-type establishments. The

technologies for processing cotton textiles and apparel in India also cover a broad range of technological sophistication, from hand operated equipment to sophisticated automated facilities.

CURRENT SCENARIO
Developing countries with both textile and clothing capacity maybe able to prosper in the new competitive environment after the textile quota regime of quantitative import restriction under the multi-fiber agreement [MFA], came to an end on 1-1-2005 under the WTO agreement on textiles and clothing.

As a result, the textile industry is the developed countries are facing intensified competition in both export and domestic market.

The elimination of quota restriction has opened a way for the most competitive developing countries to develop clusters of textile expertise, enabling them to handle all stages of the production change from growing natural fibers to producing finished clothing. While low wages are giving a competitive edge for the developing countries in the world market, time factors now play a far more crucial role in determining international competitiveness.

Countries that aspire to maintain an export-led strategy in textile and clothing need to complement in expertise, in manufacturing by developing their expertise in the higher value added service segments of the supply chain such as design, sourcing or retail distribution. To pursue these avenues national suppliers need to place greater emphasis on education training of service related skills and to encourage the establishment of joint

structure where domestic suppliers can share market knowledge and offer more integrated solutions to prospective buyers. The textile industry is undergoing a major re-orientation towards non clothing application of textiles, known as technical textiles, which are growing roughly at twice the rate of textiles for clothing application and now account for half of total textile production. The process involved in producing technical textiles requires expensive equipment and skilled workers and are, for the moment, concentrated in developed countries.

Technical textiles have many applications including productions of bed sheets, filtration and abrasive materials, furniture and health care upholstery, thermal protection and blood absorbing materials, seat belts, adhesive tape and other specialized products and applications. India must take adequate measures for capturing its market by promoting R & D in this sector.

The mood in the Indian textile industry given phase-out of the quota regime of the MFA is upbeat with new investment flowing in and increased orders for the industry as a result of which capacities are fully booked up to few more years. As a result of various initiative taken by the Government, there has been new investment of rupees 50,000 crore in the textile industry in the last 5 years. Further, Indias cotton production increased by 57% over the last five years: and 3 million additional spindles and 30,000 shuttles less looms were installed.

The industry expects investment of Rs 1, 40,000 crore in this sector in the post MFA phase. A vision 2010 for textiles formulated by the Government after intensive interaction with the industry and export promotion councils to capitalize on the upbeat mode, aims to increase Indias share in worlds textile trade from the current 4% to 8% by 2010 and to achieve export value of 50 billion US$. Vision 2010 for textiles envisages growth in Indian textile economy from the current 37 billion US$ to 85 billion US$ by
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2010, creation of 12 million new jobs in the textile sector, modernization and consolidation for creating a globally competitive textile industry. There will be opportunities as well as challenges for the Indian textile industry in the post-MFA era. But India has natural advantages which can be capitalized on strong raw material basecotton, man-made fibers, jute, silk, large production capacity (spinning-21% of world capacity and weaving-33% of world capacity but of low technology), vast pool of skilled man power, entrepreneurship, flexibility in production process and long experience. At the same time there are constraints relating to fragmented industry, constraints of processing, quality of cotton, concern over power cost, labour reforms and other infrastructural constraints and bottle necks.

For e.g., cost of power is Rs 8 per garment in India where as in china it is only Rs 2 per garment. Further, for the benefit of exporters there should be a state owned cargo shipping mechanism. Several initiatives has already been taken by the government to over come some of these concerns including rationalization of fiscal duties, technology up-gradation through funds schemes (TUFS), setting up of apparel parks and liberalization of restrictive regulatory practices.

The union government provides 5% interest subsidy to textile units under the technology up gradation fund scheme (TUFS) to enhance capacity. The TUFS was scheduled to be terminated by 31st March 2008.But now it is extended with a few modifications. Also, the man-made fiber sector can expect some more levelplaying field: it is paying 8% excise duty while the cotton textile sector has optional excise duty. Likewise, the customs duty on a few select textile machinery is likely to be reduced.

The reduction in peak customs will adversely impact yarn and man-made fabric producers, but can benefit the garment. Overall, the union budget 2008-09 is likely to be positive for the textile sector.

As of now, the odds are in favor of the textile industry because the rapid strides made by it in the global markets and the buoyancy in the domestic market as well. Much depends on how the textile sector stitches the gaps in its value chain and takes on the imminent intensified competition from China.

CHALLENGES FACED BY THE INDUSTRY

Important challenges facing the industry in general are demand for raw materials, customer satisfaction and delight. In this case of B2B transactions, the customers

demand price reduction of the products year after year. The next major challenge is the retention of the employees; the attrition rate has increased alarmingly, as the competitors both domestic and international offer better packages.

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COMPANY PROFILE

Background of the company

Sri Anjaneya cotton Mills Limited was formerly founded by Late Sri. M. Timmappa in 1962 with the installed capacity of 12,000 spindles. The capacity subsequently increased to 13,784 and at present total spindles capacity is 37,016 with latest machinery and producing 18 tons of cotton yarn. The mill having been established and working for nearly 4 decades has created an extensive clientele both for supply of raw materials and the sale of yarn.

The yarns of different counts manufactured are of quality and the same has found good favor in the market. The demand is consistent and continuous. The commercial activity has earned for the company a good track record of credit worthiness, which is most essential to sustain the working and also facilitate growth which may be contemplated.
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During the course of its working for 4 decades the mill has passed through several vicissitudes of working results due to several adverse factors both internal as well as external.

The production operations were suspended in 1988-89 and the net worth having turned negative was declared as a sick unit under the provisions of sick industrial companies Act 1985 (SICA). The unit has referred to BIFR in 1991.

The New Management has taken over the whole unit by namely late Sri. R. Veerabhadrapps, A.S. Veeranna and family members. With their hard work and effective and efficient management they have come out from BIFR Scheme. The mill is working normally in full swing condition.

The new management provided the workers higher wages, incentives as per their production capacity and according to statutory, they also provided the worker better boarding and canteen facilities. There is labour colony near by the mill and almost all the labours are staying their only. It is benefited to the mill as well as the labours become there is a saving of time and transportation cost to the mill owners and the labours too.

Nature of Business
Sri Anjaneya Cotton Mills is a leading professional company dealing in yarn with the sprit of achieving the best in domestic and international market. Sourcing of yarn for corporate sector; merchant exporter and traders.

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VISION AND MISSION STATEMENT

Vision statement Quest for excellence

Our passion for quality and unerring commitment to our customers needs have earned us a reputation of being one of the best in India and abroad. We now rededicate ourselves to enhancing value for customers by raising our own benchmark. Our vision, you could call it belief, passion, commitment or just an embedded expectations to be the Best in Class. Quality policy The quality performance represents one of the strategic key factors of the companys success. Through hard efforts in implementing, maintaining and improving a QMS. The companys quality performance must satisfy the needs and requirements, pre established with the customer and supplying the right product on time always. The company aim to maintain credibility with their customers, both internally and externally. Quality is implemented at all stages of the manufacturing process right from product introduction to delivery. It will be executed at each working unit under the

responsibility of the mangers of the various departments within the company. Quality assurance is responsible for overall quality control and has promoting, managing and monitoring functions.

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 By efficient QMS the company tries to control or minimize errors and put into effect corrective action for eliminating errors. In order to achieve all the quality objectives, the company makes continuous improvement at all levels of the organization

MISSION STATEMENT
To build an exceptional customer focused sales team, which will consistently exceed customer expectation by delivering executioner excellence in the market place through best selling systems and processes.

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PRODUCTS PROFILE

ACM manufacture a wide range of products from 6s Ring spun to 36s Ring spun suitable for weaving and knitting from high quality raw material that includes specially selected varieties like Shankar,MCU5 and GIZA from Egypt. 100% cotton yarn for wrap NE 6s to NE 36s 100% cotton yarn for Knitting NE10s to NE36s 100% cotton High Twist yarn - NE 10s to NE40s 100% Cotton Slub yarn NE 6s to NE 34s Cotton flax blended yarn NE 10s to NE 30s

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Area of Operation The company is doing its activities at regional, national and global level. The company is exporting its products to Dubai, China, Malaysia, Japan and Europe.

Ownership Pattern The company is having authorized capital of 18000 equity shares of Rs. 5000 each. The companys issued, subscribed and paid up capital is18000 equity shares of Rs. 5000 each. Equity shareholders are the owners of the company

Infrastructural facilities The facilities present in the existing unit are as follows: UNIT 1:

Unit 1, this unit is at site no.168/1A. Bada Road, Tolahunse, Davangere Taluk. This was started in 1962 by the erstwhile promoters. The unit has got 12000 spindles with a production capacity of around 3600-4000 kgs per day at that time and the company added another 1784 spindles in the next few years, to the existing spindles as a result of which the production 16

capacity increased upto 7000 kgs per day. The building consists of ground floor and houses all the production activity.

UNIT 2:

Unit 2, this is a new unit situated in the same land. The building was constructed during 1997-98. During this period the present promoters have installed new

sophisticated 6528 spindles with a production capacity of 7500kgs per day. Canara bank financed this project with a term loan of Rs. 480 lakh. With this modern machinery company could compete in the market by producing quality yarn.

During 2001-02 promoters decided to modernize the old unit which was started in 1962. Initially, the company decided to replace 2304 spindles and other back processing machines in order to upgrade the technology with modern machines. This was possible for the company with the help of a term loan of Rs. 138 lakh sanctioned by canara bank under the TUF scheme. Further during 2002-03 replaced another batch of 2304 spindles with sophisticated new spindles along with other back processing machineries and an imported auto coroner.

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During the year 2003 the company took up one more expansion for setting up of a separate unit of 12048 spindles in the existing premises. The entire machinery is second hand machinery except, some machinery which is new. The company has purchased the second hand machineries of M/S ANASUYA SPINNIG MILLS, HYDERABAD, which was a sick unit. This unit also has commenced the production.

Following are the list of machineries for which orders were placed:
Replace 6912 spindles of text tool make with LR-6/S RING FRAME of Lakshmi machine works New speed frame of LMW make New careds of 2 numbers One number of draw frames of reiter makes And other accessories which required as detailed in the cost of the project The total cost of the project was Rs 651 lakh. This project was taken up under TUF scheme as this is the up gradation of technology. The project was installed in the conditioning and packing godown. The total area of this building is around 21290 sq.ft. The yarn conditioning machine purchased was installed in the building. With all these additions/ modernization the total spindles of the company became 37376 spindles.

The company has took up the new project for setting up of WIND MILL FOR GENERATION OF POWER with a capacity of 1250 KW, with a project cost of Rs.645 lakh. Due to the encouragement given by the government of India by way of higher

depreciation benefit and income tax exemptions for infrastructure projects, the company has decided to make use of these benefits, so that their tax outflow is reduced.

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COMPETITORS INFORMATION:
Super spinning Ltd., Andhra Pradesh Sambandham Group, Tamil nadu Gokaka Spinning Mill, Karnataka Premier Fine Yarns (P) Ltd, Tamil nadu

Future growth and prospects of the Mill

1. TUF IV:

The company completed its third expansion of 16,704 spindles capacity in October 2004 and TUF III project has also been completed during the year. Further, the company has planned for its fourth expansion to equip with automated machines like Blow Room Contamination Cleaner, Veetal Fire Control for Blow Room, Carding Machine, Draw Frame, Speed Frames, Ring Frames, Auto Coner, Yarn Conditioner, and Yarn Testing Equipments & Electrification under the TUF IV scheme. It has already made the preliminary negotiations with the bankers who have agreed in principle to finance the project cost of Rs. 651/- lakh. The existing total spindlage capacity is 37,061 that contribute about 16,000 kgs/day of course count yarn.

2. KNITTING AND GARMENT UNIT AT DODDABALLAPUR:

It has been planned for diversification of the product to venture into new business avenues. Hence, KIADB has allotted about 7 acres of land in Doddaballapur Apparel Park to take up the project of knitting and garment industry which altogether a new venture. The total cost of land approximated to Rs. 105/- lakh. Out of which the company Sri Anjaneya Cotton mills Limited has a total spindle capacity of around 37,016 and providing 18 tons of cotton year with nearly 30% of the total production is going for 100% export in cone form and about 30% of the production is going for local market for warp quality in cone form and the rest of the production in hank form it is meant for local
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market. The unit is Proposing for a further expansion in the first stage with latest preparatory, spinning machinery with Auto concerns.

Auto coned yarn with best quality standards for a 100% EOU production. The unit is a verge of capacity around 40,000 spindle capacity the proposed machinery in this unit are.

Preparatory machinery: The machines are of fourth generation technically advanced mechanism capable of processing higher production with minimum labour producing quality to each the value added products like hosiery and export needs or demand. Spinning machinery: The Machinery equipped with best standard drafting system ensuring the perfect fiber control during processing and the spindly technology ensures higher productivity. Higher spindle speed with minimum power consumption and engaging minimum labour. Yarn finishing process is carried out on latest auctioneers from Germany, which definitely give quality.

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ORGANIZATION STRUCTURE

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FUNCTIONAL AREAS Functions performed by directors:

Chairman and managing director will look after the financial matter. Fixing of rates as per the market report and looking after all the employees. Managing director will look after the market rates daily and making contracts against purchase and sales and follow up of managements outstanding against the supplies.

The process of dividing various activities of an organization into specific division units is called departmentsation such as Marketing, Production and Financing departments etc.

Following are the main departments in an organization:

1. Production Department.

2. Quality Control.

3. Financing Department.

4. Human resources Department.

5. Marketing Department

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PRODUCTION DEPARTMENT

GM

Factory manager

Spinning Master

Asst. spinning Master

Shift Supervisor

Shift Supervisor

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First stage- Mixing:

In practice single cotton never used to spin a lot of yarn two or more different varieties of cotton are mixed thoroughly to get a mixing. Why mixing is necessary because firstly, it may not be possible to get identical qualities of cotton. A thorough mixing of two or more types of cotton helps in producing uniform quality of yarn. Secondly by mixing a less expensive variety with a good variety it is possible reduce the cost of yarn while achieving the desired level of quality

Second stage- pre opening:

This is stage of production in which the raw cotton is put into machinery in which the waste is removed with the help of blow machine. The cleaned cotton is then passed to the other machine; it is a continuous process which ends up with only good cotton.

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Once cotton is opened and cleaned it is transferred to mixing chamber, there the open cotton is converted to cotton laps with rods supporting it. Each lap is to 24.5kg excluding rods. These rods are separated according to quality requirement which are identified on the bases of color given to rods and then these laps are carried to next stage.

Third stage Blow Room:

To open the compressed layer of bale cotton. To remove impurities like sand, seed bits and short fibers present in the cotton with minimum loss of good cotton. For better mixing and blending. To convert cotton fibers into a thick uniform sheet called lap.

Fourth stage carding:

In this stage cotton laps are loaded in machinery in which the laps are converted into sliver. This sliver is collected in multiple cans; again this sliver is identified with color of cans for different quality. This is the stage in which the cotton laps are softened to form sliver. From this stage the sliver is passed to next stage. The lap is then taken to the cooling M/c the carding machine works the cotton between two sets of fine wire points. The most importance function performed here is the individualization of fibers. The blow room lap contains several tufts each consisting of a single fibers. These tufts needs to be opened further and separated as for as possible in to a single fibers. The individualized fibers are delivered in the form of a thin web by the working surface of the card. The web is condensed in to an almost circular stand, called sliver. The slivers are stoned in cans.

Fifth stage-drawing:
The fibers in the card sliver are placed in a very haphazard fashion and therefore the card sliver does not lend itself to produce good quality of yarn. It is therefore necessary to
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parallelise the fibers before the slivers can b e drawn out into the final yarn form. This process of parallelization is done o the drawing frame in which 12 sliver cans are feeded to machine, This 12 cans are converted to 6 cans and then these 6 cans are passed to next machine, in which these 6 cans are converted into 1 can and those cans are passed to next machine in which these cans are feeded and 8 such cans are converted into 1 can after drawing is completed, these cans are passed to next stage.

Sixth stage simplex:

Slivers from the draw from are generally courser (Thick) for immediate presentation to spinning frame. Therefore the sliver is subjected to one more dressing process, before being fed to spinning the machine employed for this process is known as simples frame.
Objects of Simples Frame:-

Drafting and Drawing: - Is to reduce weight per unit length of the sliver. Laying: - To put the roving on the bobbin in regular arrangement. Twisting: - is to withstand the stress during winding and to give necessary strengths for further processing.
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 Winding: - To put the successive layers of roving on the bobbin at proper rate.

Seventh stage spinning

The lost stage in the manufacture of yarn is spinning. The ring frame is used for this process. The roving is converted to the appropriate level. The drafted out roving is then twisted by a ring and traveler arrangement. The amount of twist inserted here is much larger than at any other stage so as to give it sufficient strength for the end use required. The twisted yarn is then wound on bobbins. This being last stage of spinning careful control has to be maintained on the level of thickness is yarn count and quality of the material produced. This cotton yarn is the final product. From there this yarn is passed to next stage with the help of cotton cubes on which yarn is winded, each such cube has a capacity of rolling 4000mts of yarn.

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Eight stage-winding:

In this stage the spinning yarn is converted into cones and knots types, this cones and knots are made according to the requirement of different markets and different quality. These cones are later transferred to ultra violet room and the cones are subjected to ultra violet rays, to check if there is any waste material left out. Later these cones are verified and passed to next stage.

Cone-winding-Finishing stage to take spinning cops to wound on cones

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Ninth stage -Doubling:

Doubling is defined as combining two or more yarns together with less twist. So as to have adequate strength and stability. To get uniform yarn, to get strength of regular yarn, to get varieties of yarn for different purposes.

Last stage-conditioning:
In this stage in which the quality cotton yarns is conditioned in conditioning room. This room contains a boiler plant which is used to keep the required moisture for yarn until it reaches the customer. This helps to keep the exact amount of weight of yarn. After conditioning is completed the cones are then transferred to packaging department where packaging of cones and knots is done. Then these packages are stored and moved out according to orders.

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These are the different stages of manufacturing of yarn.

This is most important

department which plays an important role in organization. After production is completed the finished product is packaged and stored.

Production Staff Roles and Responsibilities:

The main objective of production staff is to get production; On Time. Confirming to quality standards. At the least possible cost. Production Staff job is to get things done through people, it is they who help to achieve targets, maintain quality and keep the cost down, and maintain discipline. Below are some of the foundations which successful production staff uses in building good relationship with people.

Every one should have a sense of importance. Along with knowing his performance he should also know what is expected of him.

In correcting an employee the approach one makes is important. People naturally dislike being told that they are wrong, for some intense resentment may develop. The way an employee is corrected important, when correcting an employee the following care should be taken Genuinely in helping providing information Obtain all facts first Share the responsibility Not to humiliate an individual Providing proper feed back

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Effect of Changes:
Information about change in advance Does he tell him why if possible? Training to accept change

Make use of his ability:

An individual is put on a job suited to his ability An individual is made to think about future ability potential Dose he see that you do not stand in his way?

Development of Section requires:

Maintenance of Equipment Investigation of breakdowns Improvement of Methods Prevention of waste Reduction of cost Giving suggestions

The importance of staff role in industry has led top management to realise the need for careful selection of people who are placed in such jobs. Staff should know that the capabilities and limitations of every machine in department and should be able to tell new people how to operate them efficiently. He should be familiar with the process and work done in the department.

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PURCHASE DEPARTMENT:

Managing director

GM

Purchasing Officer

Store Keeper

Store Assistants

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QUALITY DEPARTMENT:

Quality assurance officer

Spinning Master

Supervisor

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The management team of SRI ANJANEYA COTTON MILLS LIMITED believes that, one of the key factors for their success in business is total improvement of quality & the basic problem in a textile mill is the manufacture of a standard product from an essentially non Standard and highly variable raw material. The quality of yearn should confirm to certain accepted norms depending on the end use. It is equally important that this is achieved at the minimum cost possible. It is the function of quality control to ensure that these twin objectives are realised.

Quality control should be exercised at all key stages of processing so that variation in the final product can, if necessary be traced back to the variation in raw material or from the process from which it originated. It is also essential to keep the products under

continuous observation to obtain immediate warning of any new source of variation, such as might be caused by the development of a defect in a machine. Also for quality control to be effective it must have its own staff with clearly defined duties and responsibilities.

The emphasis should be to present defectives before they occur by exercising appropriate technical controls at different stages, good machinery maintenance and by the application of statistical techniques for the analysis, comparison and interpretation of data. The data collected various processes should be supplemented by test results in the laboratory. Norms or standards for quality should be fixed by the mill not only for the raw materials and yarn but also for the product at various stages of processing.

Trends indicating departure from the norms should be detected and their causes eliminated before the differences become sufficiently serious. The standard should be subjected to periodic review or revised depending on the technological progress, quality of raw material used and end use of the product.

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It would be helpful to commence the work of quality control with a diagnostic check, survey of the entire mill, such a survey would be particularly useful in locating the measure causes of poor quality and efficiency. Correction action with regard to these causes followed by routine quality control would enable the mills to effect improvement within a short time and also compare the performance from one period to another and how for quality control has improved the working during the internal.

In order to have effective quality control there should be a separate officer exclusively in charge of quality control. He should be either qualified technical person trained in the application of statistical techniques or a gradate in statics trained in textile technology, one quality control in charge, four investigators, two is the laboratory for testing and two for collecting data in different departments. The quality control officer would be directly reporting the higher authority.

For effective operation of quality control the importance of time element should not be overlooked, that is the internal of time for the occurrence of variation (from the collection of data) to taking action should be the minimum possible. For most routine variations such as high card waste, low speeds, excessive end breakages, etc decisions must be taken on the spot and Q.C. In charge could directly communicate the departmental technical staff. The quality control officer should prepare weekly and monthly reports and indicate the various corrective steps to be taken, or already carried out, improvement or deterioration in the working etc.

A check on the quality of the work of quality control department should also be maintained such factors as whether too frequent or too little inspection is done, standard of inspections, reliability of data, proper feed back system, etc. should be looked into, if any instance there is reputation of job or the quality control data are not properly made use of, the control at these points could be suitably revised.
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WORK FLOW MODEL

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FINANCE DEPARTMENT:

MD

Manager

Accounts officer

Clerical staff

FINANCEDEPARTMENT

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The primary function of any business is to earn profit. To earn profit the business has to produce goods or render some service. To do this the management should have adequate supply of funds. It is responsibility of the financial department to ensure of needed funds.

Over the years financial function in a business has assumed greater significance. These are reflected by the fact that the some business is now headed by finance managers or have them as board members.

The finance department is assigned the Responsibility of managing the cash flow in such a manner that it would ensure that the Organization will have the means to carry out its objectives as satisfactorily as possible and at the same time meet its obligations.

Activities and responsibilities of finance head:

Control of cash resources. Monitoring and appraising the various functions submitted by different units internal audit. Security and feasibility report. Formulation of accounting finance and budgeting. Issuing guidelines for the same. Consolidation of the account of the company and submission of account to the board of directors. Co-ordination of the activities related to the budget preparation.

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HUMAN RESOURCE DEPARTMENT:

HR manager Time keeper

Clerical Staff
Any organization is a human grouping in which work is done for accomplishment of some specific goals or mission. Like wise the goal of a manufacturing concern is to produce and supply goods and services to satisfy the demands of the market. To achieve this goal it is necessary to utilize human resources available for the organization. So this department develops dimensional relationships between the workers, management and among different members of the organization and the community. Therefore human resources development is very essential for any organization as such.

Objectives:
Optimize human resource costs. Optimize operating costs. Create image for the company as good corporate citizens. Attract, infuse, and retain people of multidimensional experience and skills from the first level of management. Effectively train and motivate employees to perform at global standards
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Activities of Human Resource Department:

Recruitment and selection. Man power planning and human resource inventory. Implementation of suggestion schemes. Career planning. Disciplinary actions. Comply with statutory and legal authorities. Conduct employees expectation survey. Counseling. Educate employees on safe working and safe environment. Constantly retain workers in the theory and practices of total quality management. Educate employees on the best house keeping practices.

Recruitment and Selection:

Recruitment:
This is the most important function because it is through this function that the right persons are hired and placed in the right jobs. This function involves the following steps:

Identification of the recruitment of each job.

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 Perception of qualification of the persons to man the job. Advertising the post. Receipt, registration and screening of applications. Selection of candidates suitable for the job by means of a test and interview

SRI ANJANEYA COTTON MILLS LIMITED has its own sources and systems of recruitment and selection of its employees. Internal sources: Promotions. Transfer. External sources: Labour unions. Open advertisements

Selection:
Selection is the last step in the employment functions of the HRM. It starts after the receipt of applications from the prospective employees. All the steps involved from the receipt of the application to the issue of appointment letters are a part of the process of selection.

The steps involved in the selection are:

Interview Checking references Other tests Performance tests Medical examination Probationary period and final selection
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Welfare facilities extended to employees:

Transport Canteen Clinic Death relief fund Other medical benefits Employee state insurance

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MARKETING DEPARTMENT

Marketing manager Marketing Executives

Sales Assistants
SRI ANJANEYA COTTON MILLS markets all most all range of cotton yarn to different textile industry, garments industry in all parts of India and abroad. It also markets its yarn for parachute making company for manufacturing of parachutes.

Domestic markets and export

The company supplies yarn to almost all parts of India, to textile industry and garment industry. It has a range of quality for different requirements. Such as it has separate quality known as parachute which is only meant for manufacturing parachutes. It has normal quality and export quality for domestic market and foreign markets.

Exports to other countries

Dubai China Malaysia
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 Japan Europe

Functions of Marketing Department in Sri Anjaneya cotton mill

Connects link between the buyers and producers Generate revenue for firms Source of information to the top management regarding market conditions, demand Facilitates the development of business Receiving the purchasing order

Market research in Sri Anjaneya cotton mill

Market research is the systematic design, collection, analysis and reporting of data, finding relevant information about specific market situation which company is facing.

Tasks
To provide data based on market research Create relevant indexes for an early strategic warning system Provide director with regional analysis Analysis of new product

Responsibilities
Market research data creation External sources for support of the market research and development Timing for reporting system

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Application of 7-S McKensys Model

The seven aspects of McKensys framework are inter-twinned as shown in the diagram below:

Strategy

Skills

Structure

Shared Value

Style

Systems

Staff

The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an organizations ability to change. The theory helped to change managers thinking about how companies could be improved. It says that it is not just a matter if devising a new strategy and following it through nor it is a matter of setting up new systems and letting them generate improvements.

To be effective, their organization must have a high degree of fit, internal alignment amongst all the seven Ss. All Ss are inter-related and a change in one has a ripple effect on all the others. Its impossible to make progress on one without making progress on all. Thus, to improve their organization, you have to pay attention to all of the seven elements
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at the same time. There is no starting point or implied hierarchy. Different factors may drive the business in any one organization. The 7-S model is better known as McKinsey 7-S model. This is because of two persons who developed this model, Tom Peters and Robert Waterman, have been consultants at McKensys & co. at the time. The model starts on the premise that an organization is not just structure, but consists of seven elements.

The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole so that the organizations problems may be diagnosed and a strategy may be developed and implemented. The 7-S is a framework for analyzing organizations and their effectiveness. It looks at seven key elements that make the organizations and their effectiveness: Strategy Structure Systems Style Skills Staff Shared Values Those seven elements are distinguished in so called Hard Ss and Soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans and organizational charts and other documentations. The four soft Ss however, are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors
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are below the surface, they can have a great impact of the hard structure, strategies and systems of the organization.

Description: The Hard Ss Strategy:

Actions a company plans in response to or anticipation of changes in its external environment. Strategy is a plan an organization formulates to gain a substantial advantage over the competition. Strategy is the art of devising and employing a system of activities that mobilizes all resources towards a valuable goal. Strategy is the determination of basic long term goals and objectives of an enterprise, and the adoption of course of action and the allocation of resources available for carrying out these goals.

In other words, the route that the organization has chosen for its future growth; a plan an organization formulates to gain a competitive advantage.

Pricing strategy
Price is an important element as it is revenue generating element of the company. All the decisions related to pricing plays an important role because demand is inversely proportional to price. Price is a competitive weapon, price also determines the

profitability of the company. As a result pricing has become an important managerial function of marketing. In this organization, pricing is mainly decided in consultation with the finance department, A price will be fixed after negotiation with the customer. The price will be decided according to a market price of Tamilnadu and West Bengal market.

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Structure:
Basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity.

Structure describes the hierarchy of authority and accountability in the organization. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures pyramidal, matrix or networked ones to accomplish their goals. A structure is the formalizing of relationships, roles and responsibilities in order to organize and perform work.

In simple terms, structure is the pattern which various parts or components are interrelated or interconnected.

System
SYSTEMS refer to the processes used to manage the organization. Once an organization is setup and achieves its basic market share it becomes more service oriented on the way to its growth. It has adapted the systems like No Child Labor, employees are taken care of by providing them the facilities like medical aids and their complaints are considered and overcome immediately. Their safety is taken care of by supplying them with the safety gadgets and the necessary training for using the same. In case of any minor problems in the company they are handled by the low level management but regularly informed to the top management and in case of any major problems the top management has to take care of.

Formal and informal procedures that support the strategy and structure. (Systems are more powerful than they are given credit)

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Systems include:
Management Information Systems Innovation Systems Performance Management Systems Financial Systems / Capital Allocation Systems Compensation System / Reward System Customer Satisfaction Monitoring System Total Quality Systems A system is defined as a process or set of processes that links and orders activities to enable work to be done and goals to be achieved. System in simple words is the formal and informal procedures including compensation systems, management information systems and capital allocation systems that govern everyday activity.

Some of the systems followed in ACM LTD., are Inventory Control System, Total Quality Management System, Attendance System. Below is the detail study of one of the System followed in ACM LTD.,

Attendance system
The company has installed one electronic attendance system for recording of incoming & outgoing timing of the employees at the entrance of the shop floor. This system operates through swiping of the identity cum attendance card at the beginning of the shift (15 min before) and again swiping of the same just after end of the shift by each employee who are on companys roll. This electronic attendance system is in turn interfaced to a computer, installed in the HR dept. The electronic attendance card for swiping purpose is also used as Identity card of the concerned employee. This card is only issued to the permanent employee of the company from HR dept.
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Shift timings:
Shift A shift B shift C shift G shift Timing 8.00 AM to 2.00 PM 4.00 PM to 1.00 PM 10.00 PM to 6.00 AM 8.00 AM to 4.30 PM

All employees are required to report to duty 15 min. before the beginning of the shift. An employee working in a place in any shift cannot leave the work place at the end of his/her shift without handing over the charges to the reliever.

Out Pass:
Staff can go outside during office hour only after submitting the Out Going Pass(duly signed by the concerned H.O.D) at the Security Department.

The soft Ss Style:

The culture of the organization, consisting of two components:

Organizational culture:
The dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life.

Management style:
More a matter of what managers do than what they say, how does a companys manager spend their time? What are they focusing attention on? Symbolism- the creation and

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maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers.

Style of leadership or relationship refers to the manner in which an individual uses his or her talents, values, knowledge, judgment and attitudes to lead and relate to others. Style expresses the persons character. Style is the leadership approach; also the way in which the employees in the organization present themselves to the outside world, to suppliers and customers. In simple words, a style is the pattern of behavior, which a leader adopts in influencing the behavior of his followers (Subordinates) in the organization context. SRI ANJANEYA COTTON MILLS LIMITED has the culture to delegate the authority and responsibility to the workers, where the worker can expose his / her talent in the organization. According to the culture of the organization, the company gives the rights and powers to the managers in decision making.

The organization structure consists of chairman, managing directors, directors, managers, officers and workers etc. Formal method is carried on for routine activities such as quality control and process control etc. The employees are entrusted with responsibility and every employee is given the freedom to take decisions as far as their responsibility is concerned. The policies and procedures are clearly laid down and they are made easily available to the employees.

Some of the key aspects of the organization culture are:

Informal atmosphere A good employer-employee relationship Commitment

The above-mentioned aspects have been seen in Sri Anjaneya Cotton Mills Limited. Informal relation is seen where company welcomes suggestion from its employee. It also
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appreciates the employees who offer best suggestions. It creates a sense of patriotism in the mind of employees as they are working for the organization. It creates a sense of belongingness and boost commitment of work force and individual are free to discuss their problems difficulties like safety, health, or any work related problems etc., with the departmental heads or any director with whom he or she is comfortable.

The management is also not lagging behind. It practices an open door policy where employees grievances are put forward to the management. The directors are also quite open minded to understand the position of workers and help them out. All labour problems and their demands are studied and are assessed by the management. Necessary action is taken to correct the problems after the assessment. Subsequently all their problems are solved through mutual negotiation.

Staff:
Staffing may be defined as filling and keeping filled the positions in the organization structure. This is done by identifying work force requirements, inventorying the people available and recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating and training or otherwise developing both candidates and current job holders so that tasks are accomplished effectively and efficiently.

The people / human resource management- processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees.

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The company provides employment to 940 people, from managerial level to shop floor level as below: Administrative staff Managerial staff Shop floor workers 60 10 678

Responsibility and Authority

The responsibility and authority of all the persons affecting quality and their interrelations have been defined and documented whenever personal responsible for specific quality functions are not available the immediate supervisor shall re-delegate their responsibilities. The responsibility and authority of some key personnel, who

performs, manage and verify the work including persuades who need organization freedom to: Initiate action to prevent the occurrence of any non-conforming relating to the product, process and quality management system. Identify and record any problem relating to product process and quality management system. Control the non-conforming product from further or until the non-conformity is corrected.

Supervisors Responsibility:
Line balancing Checking hourly production. Teaching new styles to tailors as per the designs. Looking after problems like machine problems, operator problems. Quality checking Achieving targets
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Authority:
Taking operating level decisions In general the overall responsibilities of all the management cadre staff are Coordinating for the implementation and maintenance of the quality management system with other head of the departments in the company. Coordinating and obtaining approval and updating the quality assurance manual, documented procedures, detailed procedures and process maps. Reporting to management on the performance of the quality management, including needs for improvement through management review meetings. Ensuring awareness of customer requirements through out the organization.

Skills:
A skill is the ability, knowledge, understanding and judgment to accomplish a task. Skills may be defined as what the company does best; the distinctive capabilities and competencies that reside in their organization. The distinctive competences-what the company does best, ways of expanding or shifting competences.

The organization selects and assigns personnel performing work affecting product quality based on appropriate education skills and experience. The organization has also a system to asses the competence of its personnel on periodic basis (performance appraisal and development report) to identify gap in the performance, if any as well as assessing their training needs to bridge the gap.

On the job training

This type of training is also known as job instruction training as the most commonly used method. Under this method the individual is placed on a regular job and taught the skills

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necessary to perform that job. The trainee learns under the guidance of a qualified worker.

In this method the trainee has given the first hand knowledge and experience under the actual working conditions.

The company will provide an on the job training for the newly recruited employees who are working in a shop floor. The training is regarding to a spindling machines operations and also for the weaving and knitting.

To meet the domestic and international customer needs ACM ensures that the operators received right kind of training at the in house training facility. A system has been evolved to ensure that proper communication circulates from top to bottom.

Off the Job training

Under this method of training, trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance. Since the trainee is not distracted by job requirements he can place his entire concentration on learning the job rather than spending his time in performing it. In this method the trainee has the freedom of expression.

The company provides off-the job training for managerial level people, spinning master, maintenance and electrical engineers.

Shared values:
Shared Values are what engender trust. Values are the identity by which a company is known throughout its business areas. These values must be explicitly stated as both corporate objectives and individual values. A shared value is an essential characteristic or attribute promoted by the organization to motivate the behavior of members of the
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organization. In simple words, shared values are what engender trust. Values are the identity by which the organization is known in its business areas.

Guiding concepts, fundamental ideas around which a business is built must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. Effective organization achieves a fit between these seven elements. This criterion is the origin of the other name of the model: diagnostic model for organizational effectiveness.

Sri Anjaneya Cotton Mills Limited has the commitment in accepting the goals, achievements and objectives. It has its organizational values with quality policy,

customer satisfaction and also with the employees. The top management ensures whether the employees at all levels are focused towards achieving the objective of the company. This is ensured by conducting regular meeting and providing training programmes if any deviation exists. The top management conducts periodic management review meeting. The top management provides adequate resource for carrying out the activities as per the requirement is given. The top management carries out the activities relating to monitoring, measurement, analysis and improvement of quality.

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SWOT ANALYSIS
Organizational strategies are the means through which companies accomplish their missions and goals. Successful strategies address four elements of the setting within which the company operates: (1) the companys strengths, (2) its weaknesses, (3) the opportunities in its competitive environment, and (4) the threats in its competitive environment. This set of four elementsstrengths, weaknesses, opportunities, and threatswhen used by a firm to gain competitive advantage, is often referred to as a SWOT analysis. SWOT was developed by Ken Andrews in the early 1970s. An assessment of strengths and weaknesses occurs as a part of organizational analysis; that is, it is an audit of the companys internal workings, which are relatively easier to control than outside factors. Conversely, examining opportunities and threats is a part of environmental analysisthe company must look outside of the organization to determine opportunities and threats, over which it has lesser control.

STRENGTHS
Companys reputation is its major strength Good customer data base. Customer retention is more when compared to its competitors It has a major market share in the market when compared to its competitors Use of Modern Technology in its manufacturing process. Delivery of Quality products

WEAKNESS
The product diversification in the sector is insignificant Lack of promotional activities Non availability of skilled workers as per industrial standard
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OPPORTUNITIES
As their quality plays an important role, they have chances of enhancing their market share. Company has the potential to grow more in foreign markets. As companys background is strong it does not have to face any problems to market its product. As the textile and garment industry is growing, there is huge demand for yarn, hence demand for the product.

THREATS
Increasing competition There is also a disadvantage in the form of increased power tariff, fuel cost etc.

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Conclusion
The company is doing well with good management and labour. Even after downfall of all Cotton industries in Davangere, this company is emerging day by day. The company mainly aims at quality and takes much care while production, which has made it possible to export the products to different countries. As all the departments are computerized it increased the efficiency of work and also the accuracy.

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LEARNING EXPERIENCE

The inplant training was a very useful experience. It helped me to become familiar with the day to day working of the organization. During my inplant training period I tried to learn how the theoretical aspects are applied in the corporate world. It gave me a practical exposure to the corporate scenario.

I had visited the different departments in the organization and studied their functioning in detail.

There are experienced, skilled specialists for production, finance, maintenance and human resource department and they are well connected with each other. There is no communication gap between different departments.

As concern to the production, the company is getting the targeted production due to the effiency of employees. I observed that the technology used in the production is good enough to avoid the production cost. The company has also taken various measures to ensure the safety and welfare of its workforce. And also we know production is the core function of an organization when I saw the production process, I could understand why production was so important. It is so because it is the central; activity around which all the activities of the company revolve. At the beginning I learnt patience to wait and listen to others. How to maintain a relationship with different types of people. I came to know about importance of different management functions such as planning organizing, staffing, directing and controlling. Importances of leadership traits which guide in achieving personal as well as organization goals were learnt.

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 How an individual should be dynamic in corporate sector and what guides him in planning and development of his carrier was observed. I also come to know how quality control and assurance guide entire organization in providing quality product to customers, thereby improving loyalty from customers side. The importance of time management was understood which the guiding principle in the organization is. This helps the entire organization in meeting delivery schedules of customers. The training provided an opportunity to relate classroom learning with the reality of management. My constant interaction with the top management people including the executives, the supervisors has indeed widened my horizons of knowledge. Ultimate to say the training period in the company was a wonderful small time in the huge corporate world.

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FINDINGS AND SUGGESTIONS Findings

The company is facing the problem of Machine Breakdown has to adopt the concept of TPM. More competitors from Private sectors. Non availability of skilled workers as per industrial standards

Suggestions
Proper training has to be given to present workers. In the present competitive market, promotion plays a significant in business and maintaining the image of the company thus the company needs to concentrate more on various promotional measures like advertisements, contests, customers meets etc. to reach and create awareness among the customers. The company has to adopt the concept of TPM (Total Preventive Maintenance) which will help them to avoid the breakdowns and delay in production.

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BIBILIOGRAPHY

A. Books
a. V.S. Ramaswamy, Marketing management, Macmillan Publishing India Ltd, Fourth Edition:2009 b. Dr. K. Ashwathappa, Production Operation Management, Himalaya Publishing House, First Edition: 2008 c. P. Subba Rao, Human Resource Management, Himalaya Publishing House, First Edition: 2008

B. WEBSITE www.google.com

C. News paper Business times, Business line

D. Report Company Annual Report

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