CHAPTER – 1

INTRODUCTION

1
 (A) INDUSTRY OVERVIEW

(I) Information

Since last more than 100 years cotton is the main cash crop in the agriculture and
especially in Gujarat state and Maharashtra state. Cotton is on the top among other
cash crop like groundnut, castor, cumin etc. Also, the quality of cotton produced in
Gujarat region is very good. India is the second largest producer of cotton and next to
china.

The Global Textile Industries has become very organized and impressive industry
in modern times. High production of wool, cotton, and silk in all over the world has
given boost to the textile industry in recent years. According to statistics, the global
textile market possesses a worth of more than $ 400 billion presently. In a more
globalize environment, the industry has faced high competition as well as
opportunities.

The Indian textile industry has a significant presence in the international textile
economy. Its contribution to the Indian economy is in industrial production,
employment generation and foreign exchange earnings. It contributes 20 percent to
industrial production, 9 percent to excise collections and 18 percent to employment in
the industrial sector, about 20 percent to the country's total export earnings and 4
percent to gross domestic product.

Gujarat is a largest producer of cotton , constitute over 37% share of the countries
production. It is observed that beside the quality production of cotton, Gujarat is quite
strong in ginning both in terms of technology & productivity.

The textile industry is organized and well planned since last few decades. The
Asian countries have taken effective steps for the growth of textile industry as they
have realized the important of this industry. Today China is the largest producer of
Polyester in the allover world. The process of turning cotton into yarn for knitting and
weaving is known as spinning.

2
 (II) What Is Textile And Spinning ?

One of the oldest industries in India is the cotton textile Industry. The word
“textile” is derived from the Latin word “Texere” meaning to weave and originally
applied only to woven fabrics. Then it expanded to mean fibers, and fabrics produced
by inter any other construction method.

Spinning is the first step of textile product processing. Spinning is the first step in
textile product processing. The process of turning cotton into yarn for knitting and
weaving is known as spinning.

Thus, threads, cords, nets and fabrics made by weaving, knitting, bonding, felting,
or Tuffing are included in Textiles. An organized cotton textile industry is one of the
oldest and most firmly established major large scale industries in the world.

Textile is a fabric made from yarn. Though it is referred to woven fabric, it is also
applied to fibers, yarn, fabric and any other product made from these. It is also
associated with the production of clothing. The textile industry can be broadly
classified into two categories, the organized and unorganized mill sector.

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.

The first cotton mill in Ahmedabad, which emerged as a competition center to

Bombay, was established in 1861. The spread of the textile industry in Ahmedabad
was largely due to the Gujarati businessman.

3
 (III) Overview Of Textile Industries

The Global Textile Industry has become very organized and impressive industry
in modern era. High production of Wool, cotton, and silk in allover the world has
given boost to the textile industry in a few recent years. According to statistics, the
global textile market possesses a worth of more than $400 billion presently. In a more
globalize environment ,the industry has faced high competition as well as
opportunities.

The textiles industry in India is the 2 nd largest employer in the country providing
direct employment to 45 million people and 100 million people in allied industries.
The global textile industry has shown excellent since 2005 after elimination of quota.

This has created many opportunities for all the countries in global market allowing
countries like Shree Lanka, Bangladesh, China, India, etc. The global textile industry
relies on polyester fir its growth and this trend is expected to accelerate.Textile
industries are one of the oldest industries refer to industries that are involved with the
design, manufacturing, and distribution of cloths, dresses, and related goods.

The Indian textile and apparel market size is estimated around $165 Billion in
2022, with domestic market contributing $125 Billion and exports market
contributing $40 Billion.

4
 (IV) Why Spinning In Gujarat ?

Gujarat is the largest producer of cotton in the country. It produces almost 35% of
the total production of cotton in the country.

Gujarat, which has been a hub for the textile industry since the 19th century, has
been very active in availing Technology Upgradation Fund Scheme (TUFS) as
compared to other states.

According to records maintained by the regional office here, of 5,136 applications

made for 15% of capital subsidy scheme, nearly 87% originated from Gujarat. Of the
Rs230.11 crore subsidy disbursed, 75%wastoun its and entrepreneurs in Gujarat.

Three factors are responsible for the location of the cotton textile industry in
Gujarat.

(i) Availability of raw cotton, market, transport facilities including accessible

port facilities.
(ii) (ii) cheap labour and ;
(iii) Climate has caused the concentration of cotton textile industries in Gujarat
region.

5
 (V) Role Of Textile In Economy:-

The textile industry of India gives great contribution to the GDP. This industry is
providing second largest employment after agriculture sector. And thus, development
of this industry directly affect to the Indian Economy. The export of textile of India is
targeted to touch US$ 185 billion by the year 2024-25.

The Government of India has planned to promote all India's textile sector
including power looms through social welfare schemes, insurance cover, area
development as well as upgrading of old looms, tax benefits and promotional support,
and the situation is expected to improve.

There are many contribution to economic which are listed below:-

 Employment Generation
 Export promotion
 Increase standard of living
 Development of employee
 Infrastructure development
 Balance religion
 GDP and GNP contribution
 Pay taxes
 Provide qualitative products

Many other contributions and benefits that contribute to the economy and help in
the development of the country such as donations, training and development
programs, charitable or trusts and conducting awareness programs etc.

6
 (VI) Market Size

India’s trade of textile industries products has been growing strongly and the
country has been a net exporter in the world. India’s exports of technical textile
products grow from $ 2.21 Billion in 2020-21 to $2.85 Billion in 2021-22, registering
a growth rate of 28.4%.

 India’s Textiles Export was highest in FY 2021-22, crossing $44 Billion.

 India is the largest cotton producer (23%) in the world and has the highest area under
cotton cultivation (39% of world area). Cotton plays a major role in sustaining the
livelihood of an estimated 6.5 Million cotton farmers.

 India produced 90 Lac. bales of raw jute in FY 2021-22.

 The Indian textile and apparel market size is estimated around $165 Billion in 2022,
with domestic market constituting $125 Billion and exports contributing $40 Billion.

 The market size of the industry is projected to grow at a 10% CAGR (Compound
Annual Growth Rate) to reach $350 Billion by 2030.

7
 (B) TOP 10 TEXTILE SPINNING MIILS IN INDIA
CONSIDER TO PRODUCTION

(1) RAYMOND LTD.

Incorporated in 1925, Raymond Group is one of India’s largest branded fabric and
fashion retailers. It is one of the leading, integrated producers of suiting fabric in the
world, with a capacity of producing 43 million meters of wool & wool-blended
fabrics.

(2) THE LAKSHAMI MILLS COMPANY LTD

Lakshmi Mills was established in the year 1910 by the visionary and pioneer late
G. Kuppuswamy Naidu. The history of Lakshmi Mills is in many ways the history of
the Textile Industry in Coimbatore.

(3) VARDHMAN TEXTILE LTD.

Vardhman Group is a leading textile conglomerate in India having a profit after

tax is Rs 9386 crore. Spanning over 24 manufacturing facilities in five states across
India.

(4) BOMBAY DYEING AND MANUFACTURING COMPANY LTD.

Established by Nowrosjee Wadia in 1879 as a small operation of Indian spun

cotton yarn dip dyed by hand, Bombay Dyeing has now grown to be one of the most
respected and trusted brands in the country.

8
 (5) ARVIND LTD.

Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year
1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested
in very sophisticated technology.

(6) MYSORE SILK INDUSTRIES CORPORATIO LTD

The silk weaving factory in Mysore, presently owned by KSIC, was established in
the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were
manufactured & supplied to meet the requirements of the royal family and ornamental
fabrics to their armed forces.

(7) GRASIM INDUSTRIES (ADITYA BIRLA GROUP)

The company is a subsidiary of Aditya Birla Group, which operates over 40

companies in 12 countries on 4 continents.

(8) RELIANCE TEXTILE

The company was co-founded by Dhirubhai Ambani and his cousin Champaklal
Damani in 1960s as Reliance Commercial Corporation. In 1965, the partnership was
ended and Dhirubhai continued the polyester business of the firm. In1966, Reliance
Textiles Industries Pvt. Ltd. was incorporated in Maharashtra.

(9) FABINDIA OVERSEAS PVT. LTD.

Fabindia links over 80,000 craft based rural producers to modern urban markets,
thereby creating a base for skilled, sustainable rural employment, and preserving
India’s traditional handicrafts in the process.

9
 (10) JCT LTD.

One of the leading manufacturer of textiles and filament yarn, is the flagship
company of Thapar Group. With operations in two distinct businesses – cotton,
synthetic & blended textiles and nylon filament yarn – JCT Limited is a market driven
company fuelled by good work ethic, values and a high standard of performance.

10
 (C) COMPANY INFORMATION

(I) History of The Company

Phenix spinning pvt.ltd. is a private joined on 18 February 2014.

Visualizing the potential and rapid growth in cotton industry and textile industries
during last many years, promoters of the proposed project has decides to set up
spinning unit at Aliudepur, District:-Amreli, Gujarat.

The proposed industry is established by considering the present policies of the

central and state government and to avail benefits under various laws.

The promoters of the projects have formed a private limited company in the name
of PHENIX SPINNING PVT.LTD from February 18, 2014 and get it register of
companies, Ahemedabad, Gujarat.

Phenix spinning mill private limited company was established in 18th February
2014. In view of the inadequate of its initial assets the company adopted for the short
term a strategy of engaging in the business that requires minimum resources both in
cash and in kind. It merely stated as distribution of imparted and locally manufactured
textile products, as ill as an exporter of agricultural commodities.

Simultaneously, it sought to promote its business connections and diversify its

operations to improve its financial and human resmyces. After two years in the
business, the company was able to register a definite sign of growth.

The company principles are vision and mission is based on long- lasting core
values and clear strategic framework. The company strategy builds up on this strong
foundation with a focus on continued successful development of the company.

11
 All these principles set the district standards of conduct and provide high level of
transparency, thus giving life to the spirit of "Private Limited Company. The vision of
Phoenix Spinning Mills Private Limited Company is to achieve significant position in
regional and international trading houses.

As most of the private business companies Phenix spinning mill private limited
company used to be managed by the visionary director Mr.Vajubhai Gol. But due to
the increase in the volume of business transaction and the size of workable, the need
to compete with huge local and foreign multinational business company it came to
believe that it is necessary to have organized and staffed organizational structure.

12
 (II) Company Profile

TABLE 1 COMPANY PROFILE OF PHENIX SPINNING PVT. LTD

Company Profile

Name Phenix Spinning Private Limited

Date of 18th February 2014

incorporation

Constitution Private Limited Company

CIN No. U17122GJ2014PTC078791

Sector Textiles-Cotton yarn spinning

Registered Office c/o flexi plats India, plot no 91, GIDC

udhyog nagar,Amreli-365601

Prior experience of
promoters in this
line of activity
YES

13
Name Phenix spinning private limited

Date of 18th February 2014

incorporation

Constitution Private limited company

Industry Textiles

Nature of activity Cotton, Yarn spinning

Address
At Aliudepur, Bhavnagar Highway, Amreli, (Near
Pipariya Bus Stop)

Directors
1. Mr. Tejasbhai Vajubhai Gol
2. Mr. Jigarkumar Parshotambhai
Rupala
3. Mr. Mehulbhai Maganbhai Patel
4. Mr. Dharmeshbhai Valjibhai
Hirpara
5. Mr. Himanshubhai Patel.
6. Mr. Mr.Dhavalbhai Vajubhai Gol
7. Mr.Vajubhai Ranchodbhai Gol.

Brief details of the The company is proposing to set up a 30 count

project cotton yarn manufacturing facility by installing a
total of 16320 spindles in ring frame, in village
Aliudepur, District Amreli, Gujarat

14
Site Location R.S. no. 141 p1p3 and 141,Village:-Aliudeipur,
Taluka:-Lathi, District:-Amreli, Gujarat

Total land area 7.80 Acres(Equivalent 31262 sq.m.)

Current Asset According to the site visit and information

provided, the company has acquired the land, and
civil work is in progress. Purchase orders for
major plant and machinery have been issued and
temporary power has been availed. As per CA
certificate provided, approx. INR 31.37 Crores.

Techno-Economic YES
Viability

Category of Large Scale Unit

Industry

Line of activity Manufacturing of combed/carded cotton yarn and

cotton bales/cotton seeds.

Income tax AAHCP5955D

registration

Electric 1700 KVA

Connection

15
 Phenix spinning private limited company, incorporated on 18 th February 2014
with the objective of being in the cotton yarn spinning business. It has set up a 16320
spindle cotton yarn manufacturing facility in Amreli, Gujarat.

 Project Implementation:-

The company had already acquired the land for the project and obtained the
certificate for industrial use of the land. The project achieved commercial operation
on 1st September 2015.

 Project Cost:-

The overall project cost has been estimated at INR 61.53 Crores.

 Shareholding Pattern:-

TABLE 2 Shareholding Pattern of Phenix Spinning Mill Pvt. Ltd.

No. Name of Shareholder No of Share % shareholding

1 Mr. Tejasbhai Vajubhai Gol 2000 20.00 %

2 Mr. Jigarbhai Parshotambhai Rupala 2000 20.00 %

3 Mr. Mehulbhai Maganbhai Patel 2000 20.00 %

4 Mr. Himanshubhai Jagubhai Patel 2000 20.00 %

5 Mr. Darmendrabhai Valjibhai Hirpara 2000 20.00 %

TOTAL 10,000 100.00 %

16
KEY PERSON :-

Person Designation

Mr.Tejasbhai Vajubhai Gol Managing director

Mr. Jignesh Kumar Parshotambhai Rupala Managing director

Mr. Mehulbhai Maganbhai Patel Director

Mr. Dharmeshbhai Valjibhai Hirpara Director

Mr.Dhavalbhai Vajubhai Gol Director

Mr.Vajubhai Ranchodbhai Gol Director

Mr. Himanshubhai Jagubhai Patel Director

TABLE 3 KEY PEOPLE OF PHENIX SPINNING PVT. LTD

17
 (III) Vision & Mission or Objective

VISION

 To achive excellence in all sectors of the textile industry,from fibre to finished

product,constantly striving to be at the forefront of our industry and to
generate highest possible value for all stakeholders.

MISSION

 To consistently achieve high growth with the higher level of productivity.

 Continuously improving our offerings to ensure both the content and the
technologies are innovative and leading edge.
 Ensure high standards of corporate governance.
 To become a process driven organization.
 To provide a safe, fulfilling and rewarding work environment for his
employee.
 To obtain maximum growth with getting government schemes and minimum
investment.

18
Objective:-

As per its memorandum of association the main objectives of the company are as
follows:-

To carry on the business of trading, manufacturing, producing, processing, liaving,

sizing, ginning, pressing, baling, packing, spinning, doubling, blending, combing,
crimping, stretching, bleaching, dyeing, knitting, printing, buying, selling, importing,
exporting and storing of cotton, silk, wool, rayon, jute, polyester, chiffon, acrylic,
wool, shoddy, hemp, other natural synthetic, man-made fibers substitute of all kinds
and other fibers yarn, fabrics or textile products not specified above and to act as
manufacturer, trader, broker, dealer, stockiest, C&F agent, distributor, job worker,
exporter, importer, agent or otherwise deal in textile raw material, intermediate 20
products, by product, residue, finished products of all type of textile goods, yarn and
fabrics.

The company has started a project for the production of all types of cotton yarn
and thread by installing a state-of-the-art modern textile spinning unit with 16320
spindles. After due consideration of the following aspects, the promoter has selected
the proposed factory location at Date:-Lathi, Di:- Amreli.

 Suitability of geographical and location factor.

 Economic and manufacturing feasibility of the project.

 Availability of required skilled, semi-skilled and unskilled labour from local

area.

 Infra-structural facilities.

 Administrative convenience due to nearness of other units of the same group.

 Transport facilities.

19
FUNCTIONAL DEPARTMENT

 Production Department

 Marketing Department

 Finance Department

 Human Resources

Department

20
Production
Department

21
  Introduction

The universe is the center of all unity. It is very important that the generation
cycle runs and runs properly. This department of the company makes important
commitments to achieve the main goals of the organization. Mills are busy turning
raw objects into finished or semi-finished products.

The creation of a board is a model that effectively creates, that is, plans,
coordinates and controls the tasks of the part of an organization responsible for the
actual conversion of materials into a complete work.

 Location Factor

i. Availability of raw material

ii. Market proximity-consumer & other whole sale market
iii. Availability of man power
iv. Availability of water &power
v. Availability of land
vi. Availability of generator

 Phenix spinning mill private limited have :-

 Best quality of raw material is being used in production.

 Maintenance properly managed in the production department.
 Economical work has been done in the production department.
 Reduce the waste while doing the production process.
 Effective plant lay-out.
 More concentrate on product quality

22
 Production Process

 Cotton procurement : Cotton procured in bales from ginning mills,

approved for quality and stored in godowns. Mixing manual opening of cotton
bales, contamination sorting, conditioning of raw materials.

 Blow room : Opening and cleaning of cotton, removal of trash homogenizing.

 Carding : Fibre to fibre individualization, removal of trash and immature

short fibre homogenizing, formation of sliver.

 Breaker Draw Frame : Parallelization of sliver by drafting and

homogenizing.

 Finisher Draw Frame : Further Parallelization by drafting and doubling

production of sliver of desired and consistent weight by unit length.

 Speed Frame : Production of roving on bobbins by drafting, twisting and

winding.

 Ring Frame : Production of yarn of desired count with suitable twist and
insertions.

23
 Autoconer : Winding of yarn on paper cones, elimination of contamination
and imperfections through electronic yarn cleaners.

 Yarn conditioning : Conditioning in humid chamber for regain of moisture

lost during production process.

 Final inspection, packing and dispatch.

24
25
Marketing
Department

26
  Introduction

The marketing department promotes your business and sells its products. The
marketing department has the overall responsibility of increasing revenue, increasing
market share and contributing to the growth and success of the company.

Marketing is the main function because without the market the goods cannot be
sold out. But in the field of textile the role of the marketing department is not much
necessary, because the entire produced good are not the finished goods and it should
take away for the further process.

In Thangam textile they are marketing the two varieties of yarn as 40and 30 based
on their thickness. The 40 is used for making shirts and 60 are used for making pants.
In Thangam textile the manager directly deals with the other nearby buyers. So the
marketing department is not done in full effort.

Works of marketing department at phenix spinning pvt. Ltd.

1) Supply grocer

2) Sampling

3) PO , sales order providing

4) International Marketing

5) Finished goods material

6) Quality maintain of the product

7) Customers helpline

8) Check the quality on regular basis

27
4 P’s OF MARKETING

 Product

Phenix Spinning Mill converts fiber into yarn using various machines. The main
product of this mill is cotton yarn. This cotton yarn is exported and also sold in the
domestic market. Phenix spinning mil produce a combed white cotton yarn.

 Price

Now Price of combed yarn is Rs.190

The pricing decision of the company is affected by internal and external

factors.

INTERNAL FACTORS EXTERNAL FACTORS

Cost of the products Nature of market of demand of product

Marketing objectives Competitors cost or price of product

Marketing mix strategy Other environmental factors like: economy,

government policies etc.

28
  Place

Place and distribution stand for the matching arrangements for the smooth flow of
goods and services from the producers to consumer. Currently company directly
selling of cotton and yarn to the merchant. Where in the company not a role of
middleman. Mostly yarn will export in a foreign country like a China, Bangladesh,
Korea, Turkey & Egypt.

 Promotion

In 4P’s, Promotion mix is most important component of marketing

communications. That is why the promotion mix is sometimes called the marketing
communication mix. The promotion mix plays a significant and major role in
marketing. Phenix spinning mill use its promotion mix very well. Phenix Spinning
Mill advertises on internet platforms etc.

29
 Finance
Department

30
  Introduction

The finance department is the art of the organization that manages its wealth. The
trade function of a finance department classically include planning, organizing,
auditing, accounting, and controlling the company’s finance. The finance department
also regularly produces the company’s financial statement.

The rate of implementation of FM practices in textile units are discussed under

fifteen practices namely business analysis & control, financial accounting, reporting
and analysing, financial planning and control, investment analysis, capital acquisition,
profitability analysis, debt management, capital management, investment
management, cash management, inventory management, credit management, working
capital management, fixed assets management and dividend management practices.

Study the liquidity, levevrage, profitability and turnover ratio of the company.
Works in Finance department in Phenix Spinning Mill Private Limited.

1) Calculation of raw material & finished goods

2) Spin Plan Calculation

3) Maintenance cost
4) Sales & purchase entry
5) Labour & staff cost
6) Electric cost
7) Maintenance cost
8) Plan and machinery cost
9) Inventory cost
10) Facility cost like life-insurance, medical-insurance, etc.

Company’s investment is near about 33 Cr.

In the financial year 2022-23 profit is near about 5.6 Cr.

31
Human Resources
Department

32
  Introduction

Human resource is the most important resource in any small or large business.
Nowadays without human not work properly .handle and manage the machine by the
human. Company gives the incentives and salary to human.

Human also work with its experience and its knowledge so new experience and
technique establish. Proper management of human resource in any organization
makes the run of work smooth and regular. A human resources department is a critical
component of employee well-being in any business, no matter how small.

HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date

with state and federal tax laws.

1) Not Allowed Child labour at Phenix Spinning Mill Private Limited

2) 3 Shift of 8 hours

3) Salary & wages given to the employee as per govt. rules

4) Anti-Harassment

 Incentives

 Bonus

 Insurance

 Housing Allowance

33
 Facilities provided to the employees to Phenix spinning mill
private limited:-

 Good working situation

 Pure drinking water

 Refreshment area

 Hygienic working area

 House allowances

 Insurance provide

 Bonus

 As per experience give the promotion

 Take record

 Time by time give training

 Security

 Medical expenses

 First aid box

 Half price meal provide

 Hygienic foods provide

34
 (IV) PRODUCTS OF THE PHENIX SPINING PVT.LTD

 Combed Cotton Yarn

35
 (V) SWOT Analysis

Strengths :-

1. Long textile tradition

2. Large pool of skilled and cheap work force
3. Efficient multi-fibre raw material manufacturing capacity
4. Spinning mill produce a large scale yarn which often benefits of economic of
scale.
5. Maintain quality standard and quality of a yarn.
6. Established supply chain in the company

Weakness:-

1. Low investment in R&D department.

2. Lower advertising compare to those competitors.
3. Climate condition effect to access raw material.

Opportunities:-

1. Booming market of the textile industry.

2. Technological upgradation
3. Government schemes
4. EPCG schemes
5. Textile sector is growing at an average rate of 10% yearly
6. Textile has increased the global trade

Threats:-

1. Fluctuations in the product prices and raw material cost.

2. Competition from the major players
3. Huge unorganized and decentralized sector.

36
 CHAPTER – 2

INTRODUCTION TO
THE STUDY

37
 (A) LITERATURE REVIEW

(1) EFFECT OF PROPER INVENTORY MANAGEMENT ON BUSINESS

PERFORMANCE, Dr. Mohammad Shafi :-

The Main objectives of this study was to make an in-depth research and
literature review of inventory management systems with special reference to textile
industry. To a large extent, the success and failure of a business depends upon its
inventory management performance.

The basic objective of inventory management is to optimize the size of

inventory in a firm so that smooth performance of production and sales function may
be possible at minimum cost. In this study find that the studying inventory
management becomes all the more important in view of the fact that it is the largest
employer with a total workforce of 35 million. Moreover, the share of textiles into
exports was 7.59 lakh bales during 2022-23. India is the world’s 2nd largest producer
of textiles and garments after China.

(2) INVESTMENT IN THE INVENTORY MANAGEMENT, V.VIJAYA

LAKSHAMI :-

Find the determinants of investment in inventories. The result was that there is
positive relation among the ratio of inventory to sales and inventory investment.

An efficient inventory management ensures continuous production by

maintaining inventory at a satisfactory level. It also minimizes capital investment and
cost of inventory by avoiding stock-pile of product. Efficient and Effective Inventory
Management goes a long way in successful running and survival of business firm.

38
(3) RELATION BETWEEN INVENTORY MANAGEMENTAND
COMPNAYPERFORMANCE, ABDUL NASIR SYED :-

It specifically examined the relationship between inventory management and

company’s performance. Inventory management issue. Interviews with the company
management ire conducted to identify the inventory management issues and system
used by the company.

The research found that company X had a few inventory problems such as
unorganized inventory arrangement, large amount of inventory days / no cycle
counting and no accurate records balance due to unskilled workers. The study also
proved that there was a significant relationship between return on asset (ROA) and
inventory days.

(4) IMPORTANCE OF INVENTORY MANAGEMENT FOR AGILE

MODELING, DR. K.ASHOK KUMAR :-

The main objectives of this study was to find out the optimum level of
inventory to be ordered at a point of time. Inventory management system is software
which is helpful for the businesses operate hardware stores, where store owner keeps
the records of sales and purchase. This study utilized primary data. The researcher
collected data by using the interview method.

The study established that manufacturing companies use information

technology, lean inventory system and strategic supplier partnership as inventory
management approaches. The study established that manufacturing companies use
information technology, lean inventory system and strategic supplier partnership as
inventory management approaches.

(5) INVENTORY MANAGEMENT APPROCHES AND PERFORMANCE OF

TEXTILE INDUSTRY, DAVID SOBERA :-

The broad objective of this research was to establish the role of inventory
management approaches on the performance of textile firms. To find the relationship
between inventory management and firms performance.

39
 This study utilized primary data. Data was obtained using questionnaires
developed by the researcher. The questionnaire contains questions and statements
based on the research objectives. Data was prepared for analysis through editing,
coding and data entry. The study established that manufacturing companies use
information technology, lean inventory system and strategic supplier partnership as
inventory management approaches. The study also concludes that there was a strong
positive correlation between the inventory management practices and operational
performance of the textile manufacturing firms.

(6) A STUDY RELATIONSHIP BETWEEN INVENTORY MANAGEMENT AND

COMPANY PERFORMANCE : A CASE STUDY OF TEXTILE CHAIN
STORE, NURUL NADIA SURAIDI :-

The main objectives of this study to explore the problem in inventory

management. To identify the system used by company in managing their inventory
management. The qualitative research was conducted to understand the problem in
inventory management by conducting a structured interview.

Researcher picked one branch for interview method. The researcher used both
primary and secondary data to complete this study. Findings indicates that to explore
the problems in inventory management at company. It conclude that the researcher
believe that the recommendation are applied by the company and it should be able to
improve the inventory management practice and lead to better performance in terms
of profits.

(7) A LITERATURE REVIEW ON MODELS OF INVENTORY MANAGEMENT

UNDER UNCERTAINT, SERHII ZIUKOV :-

Inventories are raw materials, work-in-process goods and completely finished goods
that are considered to be the portion of business’s assets that are ready or will be
ready for sale. The main objective is to Formulating a suitable inventory model is one
of the major concerns for an industry. The qualitative research was conducted to
understand the problem in inventory management by conducting a structured
interview.

40
 Researcher picked one branch for interview method. The researcher used both
primary and secondary data to complete this study. Findings indicates that to explore
the problems in inventory management at company. It conclude that the In the past
years, the efficiency of inventory management has become an area of major concern
in business. New inventory models for managing the inventory levels are now
available. This paper has presented a literature survey of models of inventory control
under uncertainty.

(8) MANAGEMENT OF INVENTORY IN A COMPANY, ELEONORA KONTUS:

The main objective is how the firm manage their inventory in the company.
This paper presents results from the empirical research undertaken on a representative
sample of Croatian companies with the aim of exploring their inventory levels along
with dependence between the companies’ inventory levels and profitability. I
randomly selected an initial sample of 130 companies.

It conclude that The optimal management of companies’ inventories is a

fundamental problem and its solution would have a direct influence on the efficiency
of business and the position of a company in a market. The fundamental aim of
solving this problem is a continuous and complete satisfying of demand on the one
hand, with minimum opportunity costs of carrying inventory and holding costs on the
other.

(9) Empirical evidence from micro and small enterprises to stable in competitive
market, Daniel Atnafuland Assefa Balda :-

This study aimed to empirically examine the impact of inventory management

practice on firms’ competitiveness and organizational performance. Data for the study
ire collected from 188 micro and small enterprises (MSEs). The study fall under
quantitative survey approach; this approach enables to quantify and describe the
existing practice, as ill as to measure the impact of the actual inventory management
practice on competitiveness and organizational performance of firms.

The findings of this research indicate the presence of an intermediate measure

of competitive advantage between inventory management practices and organizational

41
performance. The findings of this research also indicate the presence of an
intermediate measure of competitive advantage between inventory management
practices and organizational performance. This paper provides empirical justification
for a framework that identifies five key dimensions of inventory management
practices and describes the relationship among inventory management practices,
competitive advantage, and organizational performance.

42
 (B) BACKGROUNG OF THE STUDY

The word inventory has been defined in various ways. Generally three
definitions have been chosen which to be more appropriate to the topic developed in
this study. Inventory are stock of raw materials, which work in further process and
finished good.

Inventory management refers to the events or activities that effect inventory

during the process of transferring in put resources and material to put goods.
Achieving inventory management is a precursor to inventory management which is
concerned with the means used to balance inflicting organizational objectives on the
overall level of stock held to determine optimum inventory level for each.

The study had been conducted to know the inventory management of Phenix
spinning Pvt. Ltd. The research was conducted by me as a part of my M.B.A.
program. The various types of questions were asked to the production and inventory
manager in this company. The survey gave the idea about how to control and manage
inventory in Phenix Spinning Pvt. Ltd.

 Nature of Inventory :-

Inventories consists of good held for sale to customers, semi-finished goods,

and material and supplies to be used in production. Inventory items are acquired and
sold continuing by a directly from the farmer, broker or marketing yard, and sold by a
manufacturing enterprise. The sale of merchandise or finished products is the primary
source of revenue for most non service business enterprises.

43
  Why Phenix Spinning Mill Private Limited hold the inventory?

The reason for hold inventories are discussed in three part which is in the
following paragraphs.

First, inventory helps to project against stock outs, delayed deliveries and
anticipated increase in the risk of shortages due to weather conditions, stock outs,
delivery of wrong materials, quality problems and may occur soon. The risk of
shortages can be reduced by holding safety stock in excess of average demand to
compensate for changes in demand and leadtime.

Second, historically manufacturing companies have used inventories as buffers

between successive operations to maintain continuity of production that would
otherwise be disrupted by events such as equipment breakdowns and accidents that
cause operations to temporarily cease.

Third, it also helps in smoothing the production requirements in the firm.

Seasonal demand patterns often involve building inventories during seasonal periods
to meet very high demand during a particular period.

44
 (C) RATIONALE OF THE STUDY

The study on inventory management in spinning mills is based on several key

considerations and objectives. Here are some of the reasons why this study is
important and the rationale.

Inventory management has a direct impact on production efficiency. A well-

designed inventory management control can help in control production processes and
improve overall efficiency.

The problem statement for the current study becomes “A study to analyze
inventory management practiced by the Phenix spinning mill private limited”

 Significance of study

The study on inventory management helps in finding solutions to company getting

perfect idea about the sufficient inventory in the company and reduce a inventory cost
like holding cost and carrying cost.

45
 Types Of Inventory

Regarding types of inventory different literatures provide different description

of inventory type based on their own task objective. In this study cycle stock is
inventory that results from the replenishment process and is required in order to meet
demand under condition of certainty that is when the firm can predict demand and
rends times almost perfectly.

Inventories in transit are items that are in routs from one location to other.
They may be considered parts of cycle stock even though they are not shipment until
after they arrive at the destination. Also company can take the order before one
month.

Safety or buffer stock is held in excess of cycle stock because of uncertainty in

demand or lead time. The notation is that a portion inventory should be devoted to
cover short range variation in demand and lend time. In this safety stock of raw
material is store of one month raw material stock is 3000 bales can store this stock is
also uses for one month.

Dead stock is inventories that no one want at least immediately. The question
is why any organization would incur the costs associated with holding these item
rather than simply disposing of them. One reason might be that management expected
demand to resume at some point in the future. In penix spinning mill private limited
no any dead stock hold because the stock order can take before one months any dead
stock problem not face by company till now.

46
 (D) OBJECTIVE OF THE STUDY

 Primary Objective :-

 The primary objective of this study is to evaluate the inventory

management of Phenix Spinning Mill Pvt.Ltd.

 Secondary Objective :-

 Finding importance of product quality in business world.

 To understand the inventory position.
 To evaluate the inventory management practices.
 To analysis investment in inventory.
 To examine the overall strength and weakness.


47
 CHAPTER -3

RESEARCH
METHODOLOGY

48
 (A) RESEARCH METHODOLOGY

Research is an art of scientific survey research is the systematic &

concentrated study directed towards a more complete knowledge of subject study and
if start due to some specific query or difficulty.

“Research is essentially an investigation a recording & analysis of evidence

for the purpose of gaining knowledge.”

Generally, the research methodology is the process of collecting the data with
the proper finding from different areas of the company as well as the data available
externally, which helps the researcher to make an analysis.

As the researcher when collects the data would have to decide which short of a
data are required for preparing the study, accordingly the method used should be with
the necessary effective measures. Generally the data were collected by asking
questions to the customers.

RESEARCH DESIGN

The researcher should specify the approach be intends to use with respect to
the proposed study largely speaking can be groped in to three categories.

Research
Design

Exploratory Descriptive Causal Research

Research Design Research Design Design

49
 The research design is a plan of action indicating the specific steps that are
necessary to provide answers to those questions, test the hypotheses and thereby
achieve the research purpose that help choose among the decision alternatives to solve
the management problem or capitalize on the market opportunity.

Are search design is these to methods and procedures used in collecting and
analysing measures of the variables specified in the problem research.

Market research is a function which link customer and public to marketer

though information used to identity and define to market opportunity and problems;
generate define evaluate, marketing action monitor marketing performance and
improve understanding marketing as a process.

The researcher should specify the approach be intends to use with respect to
the proposed study largely speaking can be groped in to three categories.

1. Exploratory research design

2. Descriptive research design

3. Causal research design

1. Exploratory research

A marketing research study may be either exploratory or full scale.

Exploratory research is conducted when the research does not know how and why
certain phenomenon occurs. Here, the hypothetical solution or action are explored and
evaluated by the decision-maker, e.g. evaluation of quality of service of a
bank/hotel/airline. Here, the quality cannot be accessed directly as tangible features
are not available.

50
 2. Descriptive research

Descriptive research is undertaken when the research desires to know the

characteristics of certain groups such as age, sex, occupation, income or education.
The objective research is to answer the “who, what, when, where and how” of the
subject understudy / investigation.

The major objective of descriptive research is to describe something – usually market

characteristics or function. A major difference between exploratory and descriptive
research is that descriptive research is characterized by the prior formulation of the
hypotheses. Thus, the information needed is clearly defined. As a result, descriptive
research is pre-planned and structures. It is typically based on large representative
samples a formal research design specifies the methods for selecting these sources of
information and for collecting market information from those sources.

3. Casual research

Casual research design is the third type of research design. As the name
indicates, casual design investigates the cause and effect relationship between two or
more variables. This design measures the extent of relationship between two or more
variables.

Casual research is useful to show the impact of one variable on the other. For
example, price and market demand relationship or relationship between market
competition and sales performance. Even the positive/negative effect of advertising
on sales can be studied through casual research. In addition, the variables which
create effect other variables can be studied in depth through casual research. Market
information for casual research can be collected through field survey with the help of
a questionnaire or by conducting laboratory experiments / controlled experiments.

 This project is a descriptive research program.

51
 (B) POPULATION

Population means the research are where all things like people and other item to be
counted in specific area.

In this research the population is only one which is PHENIX SPINNING MILL
PRIVATE LIMITED.

(C) SAMPLING METHOD

Sampling is the process of selecting a small number of element from large

defined target group of element such that the information gathered small group will
allow judgment to be made about the larger group.

There are two sampling methods

1. Probability sampling
2. Non probability sampling

 In this research use non-probability sampling.

52
 (D) SAMPLING FRAME

In statistics, a sampling frame is the source material or device from which a

sample is drawn. It is a list of all those within a population who can be sampled, and
may include individuals, households or institutions.

Sampling Method Non-Probability

Sampling type Census Sampling

Data Collection method Personal Interview & Observation

Data Collection Instrument Questionnaire & Observation

Type Of Data Primary Data

Research Type Descriptive Research(Qualitative)

TABLE 4 Sampling Frame

53
 (E) SOURCES OF DATA

There are two types of data:

1. Primary Data
2. Secondary Data

1. Primary Data:
Primary data are the data that has been collected for the first time and been
used exclusively.

i. Observation method
ii. Interview method
iii. Questionnaire method

2. Secondary Data:
Secondary data are the data that has been already collected by someone and/or
has been published earlier.

i. Reference Book Articles,

ii. Newspaper
iii. Websites

In this research I have used primary data as a source of data for the study.

Primary Data:

I have taken interview and do observation as a data collection tool in my research.

54
 (F) DATA COLLECTION METHOD

Data collection is process of collecting of data from surveys, or from

independent or location via data capture, data entry or data logging. This is a term
used to described a process of preparing or collecting data as part of process
improvement or similar project. The purpose of data collection is to obtain
information to keep on record, to make decision about important issues to pass
information to others. Primarily data are collected to provide information regarding a
specific topic.

A survey is research method for collecting information from a selected group

of people using standardized questionnaires or interviews.

In this research I have been used to collect the data through a interview and
observation.

(G) DATA COLLECTION INSTRUMENT

Structured questionnaire and Observation was used as an instrument for data

collection.

55
 CHAPTER – 4

DATA ANALYSIS
AND
INTERPRETATION

56
 DATA ANALYSIS (INTRO)

Data analysis is the process of systematically applying statistical and/or logical

technique to describe and illustration, condense and recap and evaluate data.
According to Shamoo and Resnik (2003) various analytic procedures “provide a way
of drawing inductive inferences from data and distinguishing the signal (the
phenomenon of interest) from noise (fluctuation) present in the table.

While data analysis in qualitative research can include statistical procedures,

many time analysis becomes an on going iterative process where data is continuously
collected and analysed almost simultaneously. Indeed, researchers generally analyse
for pattern in observation through the entire data collection phase. The form of the
analysis is determined by the specific qualitative approach taken and the form of the
data.

An essential component of ensuring data integrity is the accurate and

appropriate analysis of research finding, mislead casual readers and may negatively
influence the public perception of research. Integrity issues are just as relevant to
analysis of non- statistical data as well.

Structured Question :-

1) Is company take order in advance?

ANS :- Yes, Phenix spinning mill private limited does take an order in advance
and that also before 1 month.

2) How many bales are used in production per day?

ANS :- Average 70 bales per day are used to take in working per day.

57
3) How many tons are used as raw materials in production per day?

ANS :- Average 60 tons of raw material were used in the production per day.

4) How many types of cost of inventory are paid by the company?

ANS :- To store the inventory like raw material, semi-finished goods and finished
goods many expense are to be pay by company to handle the inventory like electric
cost, loading cost, unloading cost, human cost, carrying cost etc.

5) How many bales are purchased each month ?

ANS :- Phenix spinning mill private limited purchases 3000 bales per month.

6) Which techniques are used to purchase ?

ANS :- Phenix spinning private limited uses ABC (Always Better Cost) purchase
system to purchase.

7) How much production per day is done ?

ANS :- Every day 12 ton production is done per day.

8) How much tons contains in container ?

ANS :- 20 tons is contained in container.

9) How many containers are sold every month ?

ANS :- Average 18 container are sold every month.

10) How many safety stock do you keep in warehouse?

ANS :- Phenix spinning mill private limited has 1 month safety stock average 2100
bales in warehouse.

11) How many additional stock do you keep in warehouse?

ANS :- Additional stock of one month is available like 3000 bales.

58
12) Does the mill take an advance Payment from the customer?

ANS :- Yes, the mill take an advance payment from the customer.

13) Does supplier give the raw material on credit?

ANS :- Yes, the supplier gives 15 days advance raw material on credit.

14) Who pays the carrying cost of purchase and sell ?

ANS :- While selling the cost is paid by the by the customers and while purchasing
the cost is paid by the company.

15) What is the amount of daily turnover?

ANS :- Average Daily turnover is Rs:-21,33,333/-

16) What to do of wastage?

ANS :- In this company wastages are to soldout.

Regarding requirements for effective inventory management different literatures

describe in different ways based on their own task objective. In this study
requirements for effective inventory management into four distinct mechanisms that
are :-

59
1) Inventory count (keep track) the inventory

In Phenix spinning mill private limited use mechanisms to control the inventory,
automatic (machine like computer) count has to be conducted. This count enables to
the manager to determine the quantity on hand. Then the manager estimate how much
will be demand period prior to the next delivery periods and bases of the counts to
take decision to put order with prior time. To these count manager know that how
much goods, raw material, semi-finished goods to be store in warehouse.

2) Demand forecast and lead time information

Inventories are used to satisfy demand requirement. So, it is essential to have reliable
estimate of the amount and timing of demand. Similarly, In phenix spinning mill
private limited essential to know how long it will take for order to be diverse. In
addition, manager need to know the extend-to which demand and lead time (the time
between submitting and order & receiving it) might vary the greater the potential
variability the great or the need for additional stock to reduce the risk of shortage
between delivers. Thus, there is critical link between forecasting and inventory
management. Manager also know that the how much demand and nowadays how
much risk to be take and try to reduce the lead time.

3) Cost information holding inventories

Invites three basic cost holding transaction ordering and shortage costs holding or
carrying costs relates to physically having items in shortage costs and many other cost
like electrical cost, human being cost, maintenance cost, etc.

60
 Inventory Management Techniques

Different literatures provide different description of inventory management

techniques based on their own task objective. In this study describe few types which
is describe following.

ABC:-

ABC technique stand of Always Better Cost. In this technique company can
check the cost of the material which is held and its holding cost like electric,
supervising, labor, environmental cost, etc.

In the phenix spinning mill private limited also use this technique. Firstly
when raw material is arrive at that time count the cost like buying price of cotton,
transportation rate , labor cost, supervising cost , holding cost like electric cost,
environmental cost, etc.

All the cost to be calculated and the compare the existing raw material cost
and use the low cost raw material and do production.

In this technique company satisfied with the per unit cost of production and all
other technique cost to be more than this technique. So I can say that this is the best
technique use the company.

Ex:- First buy the 10 Rs raw material of 1KG and after second time buy the 09 Rs raw
material 1Kg so use the secondly buy material and first raw material is hold in
warehouse.

61
• Ordering Cost

Ordering costs are the cost of ordering and receiving inventory they are the cost that
vary with the actual placement on order. These includes determining how much is
needed, preparing invoices, shipping costs, inspecting goods up on arrival for quality
and quantity.

In phenix spinning mill private limited ordering cost pay by them. To put the order to
purchase the raw material that’s material payment and that take out the warehouse
that transportation cost to be pay by the company and other labor charges. Before the
purchase the raw material check the quality and quantity that’s cost also consider as a
ordering cost. Transportation GST / tax pay by the company.

• Holding cost

Holding costs are those costs which pay by company for hold the stock in warehouse
like electrical cost, supervisor cost, maintenance cost, etc .Holding cost is benefits to
the company because the company pay the attention on the demand easily and speedy
so it is benefits for the company and its sometime every expensive because all cost are
pay and per good price is increase so sometime good price is more than other firm
price and the firm would be not earn profit.

In Phenix spinning mill private limited has a big warehouse where store the raw
material (3000 bales). Very efficient environment provide to the raw material and
finished goods. Phenix spinning mill private limited also facilitate to storage proper
facility, electric cost, supervisor cost, storage cost, maintenance cost, etc.

• Carrying cost

Carrying costs are those cost which is pay when goods are receive and send too ther
party like transportation cost and labor cost etc.

In Phenix Spinning Mill Private Limited when raw material purchase from direct the
farmer, broker and market yard at that time transportation rate and labor charge pay
by the company and when finished goods send to the party at that time customer pay
the rent and labor charge.

62
 CONTRIBUTION AND LEARNINGS

1. My purpose of Summer Internship Project was to experience the situation.

Only books knowledge is not enough for in our life. Also I have known
management learning practical most impotence in professional life.

2. Without practical experience, will not performance in future life. I had

learning how to co-ordination between employee. Also learn organization
structure, financial department, HR department, and Marketing department.

3. It have really a good knowledge to learn in an academic field. Till now, I just
had acquired theoretical knowledge, but by this I came across huge exposure
to various realistic knowledge. Also, the staffs of Phenix Spinning Mill Private
Ltd were very liberal with me & helped me in each & every phase of my
training of 45days.

4. This research helped me in learning how to management of inventory

management. I have learned a lot about how inventory and value chain as a
whole functions.

63
 FINDINGS

 Average 70 bales per day use to take working in machine

 Average Every day 12 ton production

 20 tons container.

 In average 1 month safety stock is stored in warehouse.

 In average 20 container cotton yarn to be exported.

 From the supplier give the 15 days credit period for purchase goods.

 From customer take advance payment for their order.

 Selling time carrying cost pay by customer. Purchased time carrying cost pay
by company. In company above 90 labour and 40 employee are working.

 Company monthly average turnover is 8,48,00,000.

 To store the inventory like raw material, semi-finished goods and finished
goods many expense are to be pay by company to handle the inventory like
electric cost, loading cost, unloading cost, human cost, carrying cost etc. In
this company wastage are soldout.

 This company pay the electronic cost Rs 67,00,000/-monthly.

 This company pay the labour cost Rs 29,00,000/-monthly

64
 SUGGESTIONS

 Low investment in R&D department so high investment and research and

apply new techniques.
 Not known in global market so doing ads, promotion tools to knowing in the
global market.
 Lead time should be decreased so image of the company remains good in the
customer minds.
 New product should be established as per market requirement.

65
 LIMITATIONS

 Understanding and interpreting qualitative data is difficult and it may generate

error which may lead to error full research.
 Respondents may not have sufficient information or may not be willing to
provide adequate amount of data that may affect the productivity of the study.
 Lack of the knowledge of research.
 As a student I may not have skills or experience of such qualitative research
which can research into in proper and insufficient data collection.
 As the data collected in the form of qualitative data its become difficult to
express it in verbal form.

66
 CONCLUSION

As a part of our MBA circular I conducted research on “A study to analyses the

inventory management.” In which I would like to conclude that consumer are aware
about the inventory management of Phenix Spinning Mill Private Limited.

This company have good storage capacity for both raw material and final goods. In
this company the product quality is very good, give the good service to their
customer.

Regarding to purchase inventory, the industry purchased the right item at right time
and right quantities through which they help in minimize wastage of inventory. At the
right time and place to purchase minimize the production cost.

Finally the company used the daily checking the inventory system that control huge
quantities and low unit price of inventory.

67
 ABBREVIATION

Ta :- Taluka

Di:- District

Etc:- Et cetera

Pvt:- Private

Ltd:- Limited

Rs:- Rupees

Fm:- Financial management

TUFS:-Technology Upgradation Fund Scheme

ECPGs:-Export Promotion Capital Goods scheme.

R&D:-Research and Development

Sr. – No. – Serial number

P. No. – Page number

MBA – Master of Business Administration

68
 BIBLIOGRAPHY

A tnafu, D. (18 JULY 2018). Empirical evidence from micro and small enterprises to
stable in competitive market. Cogent Business & Management, 1-16.

Dr. K.Ashok kumar, P. (2018). Importance of inventory management for agile

MODELING,. International Journal of Pure and Applied Mathematics,Volume-119

No 15, 1-6.

Hiten Mehta, D. M. (2018). Research Methodology. Gandhinagar: Himalya Pulishing

House.

Kontus, E. (5 DEC 2014). Management Of Inventory In A Company. Econviewa, 1-

12. Lakshami, V. (2016). Investment In The Inventory Management. Inventory

Management- A Review of Relevant Literature, 1-4.

Ontita, D. S. (201). Inventory Management Approches And Performance Of Textile

Industry. Inventory Management Approaches And performance Of Textile
Manufacturing Firms In Kenya, 1-56.

Shafi, D. (2014). Effect Of Proper Inventory Management On Business Performance.

Management Of Inventories In Textile Industry: A Cross

Website Referee

https://www.ibef.org/archives/detail/b3ZlcnZpZXcmMzc3NDEmMTEy

http://www.allnationaljmynal.com/download/131/3-3-27-887.pdf

https://www.ibef.org/archives/detail/b3ZlcnZpZXcmMzc3NDEmMTEy

69
 ANNEXURE

Taking an personal Interview of company director to know how to manage inventory

those question is describe below:-

(1) Is company taking order in advance?

(2) How many bales used in production per day?
(3) How many tons use raw materials in production per day?
(4) How many types of cost of inventory are paid by the company?
(5) How many bales purchased each month?
(6) Which techniques use to purchase?
(7) How much production per day is done ?
(8) How much tons contain in container?
(9) How many containers are sold every month?
(10) How many safety stock do you keep in warehouse?
(11) How many additional stock do you keep in warehouse?
(12) Does the mill take an advance Payment from the customer?
(13) Does supplier give the raw material on credit?
(14) Who pays the carrying cost of purchase and sell ?
(15) What is the amount of daily turnover?
(16) What to do of wastage?

70