Anugraha Garment Industries

CHAPTER – 1

Introduction about the Organisation & Industry

1.1 Introduction about organization:

Anugraha garments industry came into existence in May 2005. It is an industry of men’s
formal wear manufacturing industry. Here company will manufacture men’s wear according
to their requirements and designs. In this company, they manufacture about 4 brands of men’s
formal wear. They are very highly skilled and enthusiastic in their work. The company not
only believe in quality of products , but they are excellence in production and service also .

At present , the company manufacturer of ready made garments in 4 major products groups :

Corporate and formal wear

Casual wear
Branded men’s wear
Kids shorts and trousers

The cloth material go throw with cutting and stitching process and finally the products are
prepared.

Here, the company is committed to excelling all customer requirements , thus ensuring a
100% quality target that is carried throughout each step of the manufacturing process . the
end result leads to complete satisfaction of every customer and enhanced growth and success
of the company.

The company’s total turnover is around INR 16 crore , which is professionally runed by
qualified management team . At present , they have manufacturing about 45,000 pairs of
trousers and 10,000 shirts per month and are currently in the process of further expanding of
this capacity .

And also the company is focused and specialized in manufacturing premium quality apparels
to cater the wide needs of the garment industry .
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1.2 Introduction to industry

The textile industry is primarily concerned with the design, production and distribution
of yarn, cloth and clothing. The raw material may be natural, or synthetic using products of
the chemical industry.

The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labour in textiles. The textile
industry continues to be the second-largest employment generating sector in India. It offers
direct employment to over 35 million in the country. According to the Ministry of Textiles,
the share of textiles in total exports during April–July 2010 was 11.04%. During 2009–2010,
the Indian textile industry was pegged at US$55 billion, 64% of which services domestic
demand.[6] In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing
factories in all of India.[7] According to AT Kearney’s ‘Retail Apparel Index’, India was
ranked as the fourth most promising market for apparel retailers in 2009.

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

A textile is the largest single industry in India (and amongst the biggest in the world ) ,
accounting for about 20% of the industrial accounting for about 20% of the total industrial
production. It provides direct employment to around 20 million people. Textile and clothing
exports account for one-third of the total value of exports from the country. There are 1,227
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textile mills with a spinning capacity of about 29 million spindles. While yarn is mostly

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produced in the mills, fabrics are produced in the powerloom and handloom sectors as well.
The Indian textile industry continues to be predominantly based on cotton, with about 65% of
raw materials consumed being cotton. The yearly output of cotton cloth was about 12.8
billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons)
ranks next in importance to cotton weaving. Textile is one of India’s oldest industries and has
a formidable presence in the national economy inasmuch as it contributes to about 14 per cent
of manufacturing value-addition, accounts for around one-third of our gross export earnings
and provides gainful employment to millions of people. They include cotton and jute
growers, artisans and weavers who are engaged in the organised as well as decentralised and
household sectors spread across the entire country.

1.2.1 INDIAN TEXTILE INDUSTRY STRUCTURE AND GROWTH

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

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

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

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

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India’s weaving, fabric finishing, and apparel sectors.

1.2.2 Structure Of India’s Textile Industry

Unlike other major textile-producing countries, India’s textile industry is comprised mostly of
small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This
unique industry structure is primarily a legacy of government policies that have promoted
labor-intensive, small-scale operations and discriminated against larger scale firms:

• Composite Mills: Relatively large-scale mills that integrate spinning, weaving and,
sometimes, fabric finishing are common in other major textile-producing countries. In India,
however, these types of mills now account for about only 3 percent of output in the textile
sector. About 276 composite mills are now operating in India, most owned by the public
sector and many deemed financially “sick.”

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

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

• Fabric Finishing : Fabric finishing (also referred to as processing), which includes dyeing,
printing, and other cloth preparation prior to the manufacture of clothing, is also dominated
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by a large number of independent, small scale enterprises. Overall, about 2,300 processors
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are operating in India, including about 2,100 independent units and 200 units that are

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integrated with spinning, weaving, or knitting units.

• Clothing : Apparel is produced by about 77,000 small-scale units classified as domestic

manufacturers, manufacturer exporters, and fabricators (subcontractors).

1.2.3 Growth of Textile Industry

India has already completed more than 50 years of its independence. The analysis of the
growth pattern of different segment of the industry during the last five decades of post
independence era reveals that the growth of the industry during the first two decades after the
independence had been gradual, though lower and growth had been considerably slower
during the third decade. The growth thereafter picked up significantly during the fourth
decade in each and every segment of the industry. The peak level of its growth has however
been reached during the fifth decade i.e., the last ten years and more particularly in the 90s.
The Textile Policy of 1985 and Economic Policy of 1991 focussing in the direction of
liberalisation of economy and trade had in fact accelerated the growth in 1990s. The spinning
spearheaded the growth during this period and man-made fibre industry in the organised
sector and decentralised weaving sector.

Size of Textile Industry in India

• The textile industry in India covers a wide gamut of activities ranging from production of
raw material like cotton, jute, silk and wool to providing high value-added products such as
fabrics and garments to consumers.
• The industry uses a wide variety of fibres ranging from natural fibres like cotton, jute, silk
and wool to man made fibres like polyester, viscose, acrylic and multiple blends of such
fibres and filament yarn.
• The textile industry plays a significant role in Indian economy by providing direct
employment to an estimated 35 million people, by contributing 4 per cent of GDP and
accounting for 35 per cent of gross export earnings. The textile sector contributes 14 per cent
of the value-addition in the manufacturing sector.
• Textile exports during the period of April-February 2003-2004 amounted to $11,698.5
million as against $11,142.2 million during the same period in the previous year, showing an
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increase of around 5 per cent.

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• Estimates say that the textile sector might achieve about 15 to 18 per cent growth this year
following dismantling of MFA.

1.2.4 ROLE OF INDIAN TEXTILE INDUSTRY IN THE ECONOMY

Textile industry plays a significant role in the economy. The Indian textile industry is one of
the largest and most important sectors in the economy in terms of output, foreign exchange
earnings and employment in India. It contributes 20 per cent of industrial production, 9 per
cent of excise collections, 18 per cent of employment in industrial sector, nearly 20 per cent
to the country’s total export earnings and 4 per cent ton the GDP. The sector employs nearly
35 million people and is the second highest employer in the country. The textile sector also
has a direct link with the rural economy and performance of major fibre crops and crafts such
as cotton, wool, silk, handicrafts and handlooms, which employ millions of farmers and crafts
persons in rural and semi-urban areas. It has been estimated that one out of every six
households in the country depends directly or indirectly on this sector.

India has several advantages in the textile sector, including abundant availability of raw
material and labour. It is the second largest player in the world cotton trade. It has the largest
cotton acreage, of about nine million hectares and is the third largest producer of cotton fibre
in the world. It ranks fourth in terms of staple fibre production and fourth in polyester yarn
production. The textile industry is also labour intensive, thus India has an advantage.

The key advantages of the Indian industry are:

• India is the third largest producer of cotton with the largest area under cotton cultivation in
the world. It has an edge in low cost cotton sourcing compared to other countries.
• Average wage rates in India are 50-60 per cent lower than that in developed countries, thus
enabling India to benefit from global outsourcing trends in labour intensive businesses such
as garments and home textiles.
• Design and fashion capabilities are key strengths that will enable Indian players to
strengthen their relationships with global retailers and score over their Chinese competitors.
• Production facilities are available across the textile value chain, from spinning to garments
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manufacturing. The industry is investing in technology and increasing its capacities which
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should prove a major asset in the years to come.

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• Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymonds
have established themselves as 'quality producers' in the global market. This recognition
would further enable India to leverage its position among global retailers.
• India has gathered experience in terms of working with global brands and this should
benefit Indian vendors.

1.2.5 GOVERNMENT INITIATIVES

Here The ministry of Textile under the Government of India has taken some important steps :

They are : 1. Increase production both qualitatively and quantitatively.

2. Research for rapid development of woollen products and woollen industry .

3. Increased export of woollen products .

1.2.6 INDIAN TEXTILE INDUSTRY

In textile Scenario :
In exports Cotton yarns, fabric, made ups etc made largest chunk with US$ 3.33 Billion or
26.5% in textiles category, and Ready Made garments (RMG)-cotton including accessories
made largest chunk with 4.67 Billion US $ or 37.1 % of total exports. Whereas, manmade
yarn and fabrics in textiles group and RMG–Man made fibers constituted second position in
the two categories, respectively. Carpets and woolen garments are other items exported from
India.

In global scenario :
Developed countries' exports declined from 52.2% share in 1990 to 37.8 % in 2002. And that
of developing countries increased from 47.8% to 62.2 % in the same period. In 2003 the
exports figures in percentage of the world trade in Textiles Group (for select countries) were:
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The above chart clearly shows that export of world trade in textile group. Among world
textile group EU occupies 34.80% of export, next China at 15.90%, USA at 6.40%, Republic
of Korea at 6.00% Taipei, Ch at 5.50%, India and Japan at 3.80% respectively, Pakistan at
3.40%, turkey at 3.10% and Mexico at 1.20%.
In Clothing Sector the figures were as below in 2003 in percentage of total experts globally:

In this sector the exports have declined for EU (15) from 42% to 26.5% in period 1980-2003
whereas of China increased from 4% to 23% and of India from 1.7% to 2.9% only. We can
see that developing countries' share in textiles had declined and in clothing it has increased
sharply.

EXPORT SCENARIO:

Textiles contributed 20% of India's exports to about US $ 12.5 Billion. The Quota Countries
mainly USA, EU (15) and Canada constituted 70 % of total garment exports and 40% of
India's textiles exports. In non-quota countries UAE is the largest market with 7% of textile
exports and 10% of garment exports from India.
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The exports of readymade garments as per AEPC certification data for the last five years are
as follows: -

**Qty in Million PCs and Value in Million US$.

The above table clearly depicts the export of readymade garments for the last five years. In
the year of 2001-2002 the value of export of readymade garment is 395.23 and in the year
2005-2006 the value is 8200.00. From 2001-2002 it started increasing and in the year 2004-
2005 it declines and again in the year 2005-2006 it increases.
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1.2.7 Textile industry and market growth in India :

Introduction :

India’s textiles structure is one of the oldest industries in Indian economy dating back severel
centuries. India’s overall textile exports during FY 2017-18 stood at US $39.2 billion in FY
18 and is expected to increase to US $82.00 billion by 2021 from US $31.65 billion in
FY19(upto Jan19).

The Indian textile industry is extremely varied, with the hand-spun and hand-woven textiles
sector at one end of the spectrum, while the capital intensive sophisticated mills sector at the
other end of the spectrum. The decentralized power looms/ hosiery and knitting sector from
the largest components of the textiles sector. The close linkage of the textile industry to
agriculture and ancient culture and tradition of the country in terms of textile make the Indian
textile sector unique in comparison to to the industries of other contries. The indian textile
industry has the capacity to produce a wide varity of products suitable to different market
segments, both within India and across the world.

Market Size

The Indian textiles industry, currently estimated at around US $150 billion, is expected to
reach US $250 billion by 2019. India’s textile industry contributed 7% of industry output of
India in 2017-18. It contributed 2% of GDP of India and employs more than 45 million
people in 2017-18. The sector contributed 15% to the export earning of India in 2017-18. The
production of raw cotton in India is estimated to have reached 36.1 million bale in FY19^.

Investment

The textile sector has witnessed a spurt in investment during the last 5 years. The industry
attracted Foreign Direct Investment (FDI) worth US $3.12 billion during April 2000 to March
2018.

Some of the major investments in the Indian Testile industry are as follows:

 In May 2018,
 The government of india announced a Special Package to boost exports by US
$31billion, create one crore job opportunities and attract investments worth Rs 800
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billion (US $11.93 billion) during 2018-2020, As of August 2018. It generated

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additional investments worth Rs.253.45 billion (US $3.78 billion) and exports worth
Rs.75.28 billion (US $854.42 million).

1.2.8 INITIATIVE TAKEN BY GOVERNMENT OF INDIA ARE :

 The director general of foreign trade has revised rates for incentives under the
Merchandise Exports from India Scheme for two subsector of textile industry-
Remade garments and Made ups – from 2% to 4%
 As of August 2018, the government of India has increased the basic custom duty to
20% from 10% on 501 textile products.
 The Government of India announced a special package to boost exports by buy 31
billion US dollars create 1 crore job opportunity and attract investments worth rupees
80000 crores during 2018 to 2020 as of August 2018 it generated additional
investment worth rupees 25345 crores and exports worth 57.2 8 billion.
 Integrated wool development program approved by government of India to provide
support to the wool sector starting from wool prayer to end consumer which aims to
finance the quality e and increase the production during 2017-18 and 2019-20.
 The cabinet committee e on economic affairs Government of India has approved a
new skill development scheme named scheme for capacity building in textile sector
with an outlay of rupees 1300 crore from 2017-18 to 2019-20.

1.2.9 Present situation of Textile Industry

Textile Industry in India continues to be dominated by cotton, accounting for nearly 3/4th of
the total fibre consumption in the country. Globally fibre consumption is dominated
by manmade fibres having 70 per cent of share in total fibre consumption. Contrary to the
global trend, fibre consumption in India is skewed towards natural fibres with around 65%
share, especially cotton.

Textile industries employ more than 18 million people directly and more than 20 million
people indirectly, contributing 2% to
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India’s GDP and 7% to industrial production as of 2021. India is among the top five global
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exporters in various categories like natural fibre, MMF spun yarn, filament yarn, woven
fabric and home textiles. The Textile Industry Contribute

 2% Share of India’s GDP, 2021

 12% Share of textile exports in country’s overall exports, 2021

The government aims to enhance India’s textiles export from $29.6 billion in 2020 to $100
billion by 2026. The Indian textiles market is expected to grow to more than US$ 209 billion
by 2029. Man-made fibres (MMF) are poised to grow as a result of significant investments in
world-class production plants, ongoing innovation, new product mix and the need for
countries to seek an alternative to China in their restructured supply chain.

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CHAPTER – 2

Organisational profile

Name of the industry : M/S Anugraha Garment Industries

Address : sy.No. 25/p, #256-259 , Bamboo Bazaar ,
Davangere – 577001.
Propriator : Mr. M N Raghu
E-mail : [email protected]
Establishment : May 2005
No. of employees : 450 and more
Annual Turnover : 16 cr.
Paid of capital : 1,39,00,000 Cr.

2.1 Background

The founder of Anugraha garment industry is Mr. M N Raghu with M N Sathish. They have
been in textile and apparel retail business from 3 generations. It is a manufacturing industry
of men’s formal shirts and trousers in small scale along with retail business .

This company was establish in the May, 2005 . And the company is having a
good reputation in the field of Garments Industry .

The business strives to make for a positive experience through its offerings .

2.2 Nature of the business

The whole company is run by the management team , which is professionally qualified .
Presently , the company manufactured around 40,000 pairs of trousers and 10,000 shirts per
month. And the company is ready to expand its capacity .
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The company always manufactures the premium quality of apparel . so they never
compromise on quality and value .
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2.3 Vision , Mission and Quality policy

Company’s Vision :

“ to provide best customer service by producing and supplying premium quality apparels and
to be rated as best in terms of efficiency, performance and aesthetics.

Company’s Mission :

Building and nurturing a healthy relationship with the stakeholders of the company for a
profitable growth and success.

Company’s Quality Policy :

They set total Quality Management as a fundamental philosophy of their organisation.

They focus on quality measurement using feedback at each stage of production.
Reward Quality compliance with incentives.
Focus on Quality training at all levels.
Stress problem identification and solution.
Promote innovation and total participation.

They set total Quality management as a fundamental philosophy of their organisation.

Their goal is the keep continues improvements with focusing on team work to increase
customer satisfaction.

Quality Control Procedure:

Of around 450 odd employees in the factory 15 people are directly involvedin-quality
control checks. Apart from the in-house QC inspectors, 2 independents Quality
Controllers are employed to carry out spot checks where required. Quality controllers
from independent organizations or from buying organizations are welcomed and are quite
frequent.

Sealed sample procedure: Approval samples are made on which orders are placed,
subsequently sealing samples are made for customer approval against which production is
made according to buyers procedure.

Material receipt to cutting: QC team are involved in this area. On arrival the finished
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fabric is inspected for flaws. All dimensional stability and colour fastness tests are
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handled by QC team reporting to QC manager. Before cutting 3 sample garments are

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made per colour washed (if specified pressed and inspected.) Comparison is made
between the production test samples and the sealed sample andsealed size specifications
before cutting can commence. After cutting garment parts areassembled and kept together
in batch lots throughout production.

Stitching and finishing:

In line QC: A sealed sample hangs in the main stitching area for comparison purposes.
Inspectors overseas stitching and check production on a random basis.

Final QC: After trimming quality control people check the garment and apply a personal
quality control sealed to the garments they have approved. After hand ironing the
garments are packed.

Final inspections: Random tests are carried out on the final inspection.

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Order Receiving
2.4 Workflow model :

Planning Sampling Material Sourcing

PP Sampling Approval Fabric & Trims Inhouse

PP Meeting
Testing

Cutting

Printing & Embroidery

Sewing

Checking Repair/Alteration

Washing

Finishing

Final Inspection Repair/Alteration

Packing
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Pre Shipment Inspection Re-check

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2.5 Product / Service Profile :

Men’s formal Trousers :

Men’s formal Shirts :

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The brands that are handled by Anugraha Garments Industries are :

Indigo Nation
Jhon Miller
Scullers
Bare Leisure
Poka & Lara
Lombard
Manyavar
Atelier
Turquoise
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2.6 Ownership Pattern:

In the Anugraha Garments Industires has sole proprietor ship company with a direction of
sole director of Mr.M N Raghu . All the other staff and its members have any queries they
can discuss in the meetings only along with the head of chief executive or General Manager,
in case one absence in the meeting, they can meet generally to Director or Proprietor and
discuss with the solution. Here all the decision maker of the company is Mr. M N Raghu. In
his absence Mr. kishan , if he is not available Mr. Srinivas will take decisions. Here Mr. M N
Raghu , maintain full control of their business without any hurdles. He also retain all his
profits of his business for future uncertainties. He offers more personal services with local
roots and ties. Mr. M N Raghu is a man who takes all decision very swiftly.

Mr M N Raghu also take care of all the staff. By providing basic requirements like water
facilities , first aid , medicines , washroom facilities …., etc

2.7 Future growth and prospects:

As said above sentence, the company want to increase their production capacities , they have
planned accordingly .

Providing designing to programmable setting.

Providing and focusing a cotton – based materials.
Introduction of Nylon with cotton spun based fabrics.
High quality looming and manufacturing the dress in heavy load.

And also company planned to increase the production by 1200 to 2500 pcs per day. The
company also planned to installing the more machinery in order to meet the scarcity of
supply.
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CHAPTER – 3

MCKENSY’S 7S FRAMEWORK

Introduction:

A model of organization effectiveness that postulates that there are seven internal
factors of an organization that needs to be aligned and reinforced in order for it to be
successful. The 7S Model was developed and Mckinsey & Co. consulting firm in the early
1980s by consultants Tom Peters and Robert Waterman.

The model is most often used as an organization analysis tool to assess and monitor
changes in the internal situation of an organization.

The model is based on the theory that, for an organization to perform well, these
seven elements need to be aligned and mutually reinforced. So, the model can be used to help
identify what needs to be realigned to improve performance, or to maintain alignment (and
performance) during other types of changes.

Whatever the type of changes- restricting, new process, organizational merger, new
system, changes of leadership, and so on – the model can be used to understand how the
organizational elements are interrelated, and so ensure that the wider impact of changes made
in one area is taken into consideration.

The 7S Model specifies seven factors that are classified into “hard” and “soft”
elements are fuzzier, more intangible and are influenced by corporate culture.
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The model is based on the theory that, for an organisation to perform well , these 7 elements
need to be aligned and mutually reinforcing . so, the model can be used to help identify whats
to be realigned to improve performance, or to maintain alignment during other types of
change . whatever the type of change – restructuring , new processes , organisational merger ,
new system , change of leadership , and so on – the model can be used to understand how the
organisational elements are interrelated and so ensure that the wider impact of changes made
in one area is taken into consideration .

The 7s elements are categorised as either “hard” and “soft” elements :

Hard elements : strategy , structure and system .

Soft elements : shared values , skills , style and staff .
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3.1 Strategy:

The strategy that are followed by the Anugraha Garments Industries are :

1. They want to be known and recognised as a retail manufacturing garments unit , and
company want to complete the needs and desire of customer and society .
2. The company want to decrease the cost , because in a day 2500 pcs are manufactured .
so the utilization of raw materials will be optimistic .
3. The company has their own work division departments like : fabric inspection dept. ,
cutting dept. , stitching dept., finishing dept ., finance dept ., which helps the company
to process their production easily .

3.2 System :

The daily working of the company from 10:00 AM to 06:00 PM. And one hour for lunch
break. Every worker who is working in the company has to be entered with biometric system.
The company will give the Training and Development session to the workers. Lastly the
workers has to be follow the rules and regulation very strictly. The payments of the workers
are done in online mode .

3.3 Structure

Here many company uses different structure according to their management objectives.
Anugraha Garments Industries uses the line and staff organisation structure. This structure
help them for smooth functioning of the company’s activities .

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Managing Director

Factor Manager

Marketing Manager Production Manager HR Manager Finance Manager

Senior Manager
Merchandisers Administrative Staff Accounts Staff

Junior Merchandisers Cutting Manager Floor Incharge Finishing Incharge

Helpers Line Supervisor Supervisor

3.4 Skills:

The skills and competencies of the employees. Develop new team skills, problem solving,
waste elimination and process analysis skills, empowerment to make decisions, the ability to
run and close out Kaizens.

Following are the different types of skills being worked on very regularly as per the priority:

Conceptual skills : Here the conceptual skills are highly useful for top level managers,
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because they are people who plans for long term objectives and the future direction of
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their organisation. Here conceptual skills are also helps in conflict management.

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Human skills : Here the company has employee engagement between them. And also
human skills is considered with understanding of people. In order to complete the
management objectives , the human skills are required .
Technical skills : This technical skills are mostly helpful to the lower level group.
These skills involves weaving , embroidery , machines operating , ironing ,
numbering and labelling.

3.5 Staff :

The number of workers in an organisation are:

Total workers: 440

1. Machine operators: 220 members

2. Helpers: 150 members
3. Supervisors: 8 members
4. Quality controllers: 8 members
5. Production manager :2 members
6. Mechanics and electricians: 6 members
7. Cutter: 3 members
8. Master:2 members
9. HR staff:2 members
10. Office staff: 8 members
11. Clerical works:10 members.

3.6 Style :

Anugraha Garments Industries uses the leadership style of Autocratic leadership style .
Autocratic leadership means the individual control over all decisions and little input from
group members. They are typically make choices based on their ideas and judgements are
rarely accept advice from followers. Leadership that is trained in emotional intelligence and
the courage to delegate and empower subordinates .

3.7 Shared values :

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The company has never compromised with its quality as even the competitors make changes
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in quality to earn profit.

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“to meet the needs and expectations of the customer and to even delight them, through quality
of design , manufacturing systems and control of operations”.

PORTERS 5 FORCE MODEL

Introduction

Porter’s Five Forces is a model that identifies and analyse 5 competitive that shape every
industry and helps determine an industry’s weakness and strengths. 5 forces analysis is
frequently used to identifies an industry’s structure to determine corporate strategy. The
analysis looks at 5 competitive forces that influence an industry : the threat of new entrants ,
power of supplies , power of buyers , availability of substitutes and competitive rivalry in the
industry . ow these 5 forces interact provides a good picture of the sector’s dynamics and
whether an individual company is properly positioned for survival in the sector.

The textile industry is one of the fastest – growing economic sectors with worldwide sales.

Porters 5 force model was 1st developed by Michael E Porter in 1979 at Harvard University.
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It is now a bedrock tool used by business strategists. Especially useful for understanding the
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competitive of an industry , 5 force helps define the environment in which a company must
find , grow and protect its profits .

Porters 5 Force model used in Anugraha Garments Industry .

1. Threat of New Entrants Into an Industry:

A company's power is also affected by the force of new entrants into its market. The less
time and money it costs for a competitor to enter a company's market and be an effective
competitor, the more a company's position may be significantly weakened.
Since apparel manufacturing industry is labour intensive and needs lots of experience &
expertise to setup; the potential threat from new entrants is minimal.
Yet Anugraha Garment Industries faces many problems pertaining to labour retention as
the new entrants disrupt the labour market temporarily to attract skilled labour to their
organizations.

2. Rivalry among existing competitors:

This force refers to the number of competitors and their ability to undercut a company.
The larger the number of competitors , along with the number of equivalent products
and services they offer , the lesser the power of a company.
Anugraha Garments Industries faces minimum rivalry as there are surplus orders
than the supply capacity.
Also since the textile and fashion industry is highly volatile and these are many
brands in the market some amount of competitive rivalry is present in the
industry but it doesn’t affect the operations of the organisation.

3 Bargaining power of suppliers :

This force addresses how easily suppliers can drive up the cost of inputs . It is affected by the
number of suppliers of key inputs of a good or service , how unique these inputs are, and how
much it would cost a company to switch from one supplier to another.

Manufacturing of apparel takes a lots pf raw materials and Anugraha Garment

Industries hold power over most of the suppliers with their influence of healthy cash
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flow, timely payments and relationship with the suppliers.

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Since India is a hub for raw materials manufactures related to Textile and apparel
industry; there are multiple suppliers available for every raw material which in -turn
reduces the power of the suppliers

4 Bargaining power of the customers :

This specifically deals with the ability that customers have to drive prices down. It is
affected by how many buyers or customers a company has, how significant each customer is,
and how much it would cost a company to find new customers or markets for its output.
Since apparel industry is mostly customer driven; the need and choice of the customers
play an important role and customers have comparatively greater influence.
Anugraha Garment Industries follows open costing system with their clientele; I.e. fixed
profit and markup and hence the bargaining power of customer is neutral in the case.

5 Threat of Substitute:

Substitute goods or services that can be used in place of a company's products or services
pose a threat.

There is a constant threat from the substitute product and Anugraha Garment Industries
tries to cope with it by having new patterns and designs as per latest trends and have an
upper hand in the over-all quality of the products manufactured.
At Anugraha Garment Industries they focus on delivering better quality products at
competitive prices, which helps them overcome the force from substitute products.

CHAPTER – 4
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SWOT ANALYSIS
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Introduction

SWOT analysis is a strategic planning method used to evaluate the strengths , weakness ,
opportunities and threats involved in a project or a business venture .

The ai, of any SWOT analysis is to identity the key internal and external factors that are
important to achieving the objectives the objective . these come from within the company’s
unique value chain. SWOT analysis groups key pieces of information into 2 main categories:

Internal factors : The strengths and weakness internal to the organisation .

External factors : The opportunities and threats presented by the external environment
to the organisation.

1. Strengths:

Industry considering the workers / labours as main strengths.

Easy availability of all raw materials.

Usage of latest technologies

Using of solar energy and 24hrs power backup solutions .
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Huge export potential.

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Large domestic market.

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2. Weakness :
Unavailability of skilled labour.
Number of absenteeism due to increase of local festival and other reason.
High employee turnover.
Low retention capacity.
Because of dynamic change in the fashion trends , productivity is in less
average.

3. Opportunities :
Growing demand for textiles and apparel in domestic as well as export market.
Establish digital market.
Local collaboration.

4. Threats :
Fluctuation in raw materials prices.
Intense competition.
Shortage of trained human resources.

And the main threat is that Karnataka’s Chief Minister Mr. Basavaraj Bommai. His son
Mr.Bharath has planned to set up a manufacturing industry of textiles ( formal shirts and
formal trousers) at Bengaluru .

So the Anugraha Garment Industries has consider this as main threat.

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CHAPTER – 5
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ANALYSIS OF FINANCIAL STATEMENTS

Financial statement analysis (or financial analysis) is the process of reviewing and
analyzing a company's financial statements to make better economic decisions. These
statements include the income statement, balance sheet, statement of cash flows, and
a statement of changes in equity. Financial statement analysis is a method or process
involving specific techniques for evaluating risks, performance, financial health, and future
prospects of an organization.

It is used by a variety of stakeholders, such as credit and equity investors, the government,
the public, and decision-makers within the organization. These stakeholders have different
interests and apply a variety of different techniques to meet their needs. For example, equity
investors are interested in the long-term earnings power of the organization and perhaps the
sustainability and growth of dividend payments. Creditors want to ensure the interest and
principal is paid on the organizations debt securities (e.g., bonds) when due.

Common methods of financial statement analysis include fundamental analysis, DuPont

analysis, horizontal and vertical analysis and the use of financial ratios. Historical
information combined with a series of assumptions and adjustments to the financial
information may be used to project future performance. The Chartered Financial
Analyst designation is available for professional financial analysts.

Financial statement analysis involves gaining an understanding of an organization's

financial situation by reviewing its financial statements . This review involves identifying
the following items for a company's financial statements over a series of reporting
periods:

 Trends. Create trend lines for key items in the financial statements over multiple
time periods, to see how the company is performing. Typical trend lines are for
revenues, the gross margin, net profits, cash, accounts receivable, and debt.
 Proportion analysis. An array of ratios is available for discerning the relationship
between the sizes of various accounts in the financial statements. For example, one
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can calculate a company's quick ratio to estimate its ability to pay its immediate
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liabilities, or its debt to equity ratio to see if it has taken on too much debt. These

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analyses are frequently between the revenues and expenses listed on the income
statement and the assets, liabilities, and equity accounts listed on the balance sheet.

Financial statement analysis is an exceptionally powerful tool for a variety of users of

financial statements, each having different objectives in learning about the financial
circumstances of the entity.

Users of Financial Statement Analysis

There are a number of users of financial statement analysis. They are:

 Creditors. Anyone who has lent funds to a company is interested in its ability to pay
back the debt, and so will focus on various cash flow measures.
 Investors. Both current and prospective investors examine financial statements to
learn about a company's ability to continue issuing dividends, or to generate cash
flow, or to continue growing at its historical rate (depending upon their investment
philosophies).
 Management. The company controller prepares an ongoing analysis of the company's
financial results, particularly in relation to a number of operational metrics that are
not seen by outside entities (such as the cost per delivery, cost per distribution
channel, profit by product, and so forth).
 Regulatory authorities. If a company is publicly held, its financial statements are
examined by the Securities and Exchange Commission (if the company files in the
United States) to see if its statements conform to the various accounting standards
and the rules of the SEC.

Methods of Financial Statement Analysis

There are two key methods for analyzing financial statements. The first method is the
use of horizontal and vertical analysis. Horizontal analysis is the comparison of financial
information over a series of reporting periods, while vertical analysis is the proportional
analysis of a financial statement, where each line item on a financial statement is listed
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as a percentage of another item. Typically, this means that every line item on an income
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statement is stated as a percentage of gross sales, while every line item on a balance

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sheet is stated as a percentage of total assets. Thus, horizontal analysis is the review of
the results of multiple time periods, while vertical analysis is the review of the
proportion of accounts to each other within a single period.

The second method for analyzing financial statements is the use of many kinds of ratios.
You use ratios to calculate the relative size of one number in relation to another. After
you calculate a ratio, you can then compare it to the same ratio calculated for a prior
period, or that is based on an industry average, to see if the company is performing in
accordance with expectations. In a typical financial statement analysis, most ratios will
be within expectations, while a small number will flag potential problems that will
attract the attention of the reviewer.

There are several general categories of ratios, each designed to examine a different
aspect of a company's performance. The general groups of ratios are:

1. Liquidity ratios. This is the most fundamentally important set of ratios, because they
measure the ability of a company to remain in business. Click the following links for
a thorough review of each ratio.
o Cash coverage ratio . Shows the amount of cash available to pay interest.
o Current ratio . Measures the amount of liquidity available to pay for current
liabilities.
o Quick ratio. The same as the current ratio, but does not include inventory.
2. Activity ratios. These ratios are a strong indicator of the quality of management,
since they reveal how well management is utilizing company resources. Click the
following links for a thorough review of each ratio.
o Accounts payable turnover ratio . Measures the speed with which a company pays
its suppliers.
o Accounts receivable turnover ratio . Measures a company's ability to collect
accounts receivable.
o Fixed asset turnover ratio . Measures a company's ability to generate sales from a
certain base of fixed assets.
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o Inventory turnover ratio . Measures the amount of inventory needed to support a

given level of sales.
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3. Leverage ratios. These ratios reveal the extent to which a company is relying upon
debt to fund its operations, and its ability to pay back the debt. Click the following
links for a thorough review of each ratio.
o Debt to equity ratio . Shows the extent to which management is willing to fund
operations with debt, rather than equity.
o Debt service coverage ratio . Reveals the ability of a company to pay its debt
obligations.
4. Profitability ratios. These ratios measure how well a company performs in
generating a profit. Click the following links for a thorough review of each ratio.
o Breakeven point . Reveals the sales level at which a company breaks even.
o Contribution margin ratio . Shows the profits left after variable costs are
subtracted from sales.
o Gross profit ratio . Shows revenues minus the cost of goods sold, as a proportion
of sales.
o Margin of safety . Calculates the amount by which sales must drop before a
company reaches its breakeven point.
o Net profit ratio . Calculates the amount of profit after taxes and all expenses have
been deducted from net sales.
o Return on equity . Shows company profit as a percentage of equity.
o Return on net assets . Shows company profits as a percentage of fixed assets and
working capital

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CHAPTER – 6

LEARNING EXPERIENCE

This internship was for 4 weeks, the experience I possessed through this internship was great.
In the organisation, I learned how the activity takes place in the real business world. It helped
us to understand practical aspects relating to the theoretical concepts we learned. I see how
the management solves issues and take decisions.

The study in Anugraha Garments Industries had given me a great opportunity of learning
about various departments under its firm, they helped me to know how the business operates
and exposed me to a wide range of company aspects.

I got clear picture about the organisational work carried on and how the work is allocated and
how it is carried out and duties and responsibilities of the employees in the Anugraha
garments industries and how they are using technology reducing the cost of production. I
observed the work techniques that are studies in subject are implemented and practiced in the
organisation and I learnt how the external and internal factors like Political, Economic, Social
and technical factor will influence on the company and the industry.

The major things that I have learned in my internship is rules and regulations , time
management , safety measures are taken by the company towards employees , top
management and workers relationship , operation or handling the various departments and
lastly relationship with customers and customers handlings.

And I also got some tips how to manage the people, how to behave with professionalism,
team work, how to group in group and to be with workers.

I would like to thank Mr.Kishan manager for giving me an opportunity and guiding me to
accomplish my internship study successfully. The people there were very good, and helpful
and helpful and supportive. Finally, this in organisation study giving me the clear idea about
the working condition in the Anugraha garments industries , which will help me in future
days.
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Bibliography:

Websites:

1. www.textileindustry.com
2. https://www.fibre2fashion.com
3. https://www.ibef.org/industry/textiles.aspx
4. https://textilelearner.net

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