aarvee denim (final report)

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    A

    PRODUCTION REPORT

    ON

    INDUSTRIAL VISIT OF

    AARVEE DENIM & EXPORT LTD.

    SUBMITTED BY

    SOM-LALIT INSTITUTE OF BUSINESS ADMINISTRATION

    (AFFILIATED TO GUJARAT UNIVERSITY TOWARDS PARTIAL

    FULFILLMENT OF S.Y.B.B.A. PROGRAMME)

    GUIDED BY: - TWINKLE TRIVEDI

    SUBMITTED BY: - DARSHIT SEJAPARA

    ROLL NO.:- 195

    DIV.:- B

    S.Y.B.B.A

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    CERTIFICATE

    This is to clarify that Darshit Sejapara has prepared the report

    company Aarvee Denim & Export Ltd. submitted to GUJARAT

    UNIVERSITY towards partial fulfillment of the partial study of

    S.Y.B.B.A.

    --------------------- ---------------------

    Prof. K. J. Patel Prof. Twinkle Trivedi

    (Director) (Faculty Incharge)

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    ACKNOWLEDGEMENT

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    The successful completion of this report would not have been

    possible without co-operative & support of my teacher, friends & my

    institute.

    I am heartily thankful to my management for providing me the

    opportunity to make a study of practical training in organization.

    I am thankful to my college, friends, faculty members and all

    those who have helped me directly or indirectly in the preparation of

    this report.

    Place: Ahmedabad

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    PREFACE

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    EXPERIENCE IS THE BEST TEACHER

    This saying has played a guiding role in including visit as a part

    of the curriculum of the B.B.A. programmed of Gujarat University.

    This visit & a report on this visit allows the student the practically

    visit the industry & study real business environment.

    This practical training at B.B.A. programmed develops a feeling

    about the difficulties & challenges in the business world. Only theory

    knowledge does not impart complete education, practical experience

    must accompany theoretical knowledge to add meaning to

    education. To fulfill these objectives industrial visit as a part of B.B.A.

    programmed.

    In this direction, I have tried my level best to present a project

    report based on this visit.

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    INDEX

    No. PARTICULARS PAGE

    NO.

    1 BRIEF DETAILS ABOUT INDUSTRY 8

    2 COMPANY PROFILE 10

    3 PRODUCTION DEPARTMENT 17

    4 HUMAN RESOURCE MANAGEMENT 24

    5 MARKETING DEPARTMENT 32

    6 FINANCIAL DEPARTMENT 38

    7 SWOT ANALIYSIS 44

    8 SOCIAL RESPONSIBILITY & FUTURE PLAN 46

    9 CONCLUSION 49

    10 BIBLIOGRAPHY 51

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    CHAPTER-1 BRIEF DETAILS ABOUT

    INDUSTRY

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    1.1 Size of the company:

    Aarvee denims export Ltd. Its product includes denim fabrics,

    denim garments & cotton garments. Denim garments which includes

    jeans, trousers, jackets & shirts for men, women & kids.

    1.2 Other player in this industry:

    Aarvee denims export Ltd. Company is second largest denim

    fabrics manufacturing company in India. It is also facing competition

    from other companies. They are:

    1)K. G. Denim Ltd.

    2)Arvind Product Ltd.

    3)Raymond

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    CHAPTER-2 COMPANY PROFILE

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    2.1 Name & Address of company:

    Name: -Aarvee Denims & Export Ltd.

    Address: - Green field Project (Unit-3) 191,

    Moja Shavadi,

    NarolSarkhej Highway,

    Ahmedabad (382405)

    GujaratIndia.

    Wed site:www.aarvee-denims.com

    Register office: - 188/2, Ranipur village

    Opp. CNI church,

    Narol,

    Ahmedabad382405

    GujaratIndia.

    Email:[email protected]

    http://www.aarvee-denims.com/http://www.aarvee-denims.com/http://www.aarvee-denims.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.aarvee-denims.com/
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    2.2 Mission / Vision of the Organization:

    To earn maximum profit and sell maximum DENIM garments

    in the market is the main vision of the company. The companys

    mission is very much consumers satisfaction. A consumer would like

    to purchase a denim garments once again from the market

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    2.3 History of the company:

    Amtex India Pvt. Ltd. was established in 28th

    March, 1988. The

    commercial production of Denim fabric was started company and the

    name was changed to Aarvee Denim & Export Ltd. on 7th

    April, 1994.

    Denim fabrics facility at Narol, near Ahmedabad with a capacity

    to manufacture 2.16 million of denim fabrics per annum. The

    company is committed to conducting business in accordance with

    highest standards with applicable laws rules & regulation.

    The company setup facilities for dyeing 21.6 lacks meter per

    annum of yarn & processing of 21.96 lacks meter per annum of grey

    fabric at Ranipur & Narol.

    The company Aarvee Denims signs MOU with Government of

    Gujarat. The company indigo Denims fabrics are sold under the

    brand name Amtex Indigo Blue Denim.

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    2.4 Organization Structure:

    Chairman

    Manager Director

    Departmental In charge

    _______________________________________

    Production H. R. Finance Marketing

    Manager Manager Manager Manager

    Supervisor Factory Supervisor

    Manager

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    2.5 Location advantage:

    Benefit of location:-

    A factory is located in a remote area.

    Aarvee Denims Company is situated on the Sarkhej road, Narol.

    In Ahmedabad. Because of this place, they get easily raw

    material, transport facility.

    In environment is good.

    Limitation of location:-

    A factory is away from city so; the employees feel very

    uncomfortable for transportation from home to company &

    company to home.

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    2.6 Achievements:

    Aarvee Denims has achieved lot of success and became 2nd

    largest manufacturer in India.

    Aarvee Denims has variety of products with fashion, colors &

    patterns.

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    CHAPTER-3 PRODUCTION DEPARTMENT

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    3.1 Production classification:

    (A) Denim fabrics

    (B) Cotton fabrics

    (C) Denim garments

    (D) Cotton garments

    Ladies Wear Mens Wear

    Shirts

    Jeans

    T-shirts

    Trousers

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    3.2 Production process:

    Floor room

    Spinning

    Weaving & Warping

    Seizing

    Finishing

    Packing

    Garment Department

    Ware House

    Garment Finishing Department

    Show Room

    1)

    Floor room:

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    i) Carding:

    Raw material is converted into silver form.

    ii) Drawing:

    From above silver it is parralised to make it as unit

    form.

    2)Spinning:

    Two steps of spinning.

    i) Ring Frame:

    Yarn is made to use in Inter or simplex frame.ii) Open-End:

    Yarn is made & finished directly by using

    latest technology.

    3)Weaving & warping:

    The chases are mounted on warping machine to form a

    bean to be fed to dying-sizing machines.

    4)Seizing:

    Seizing

    Clean Wash

    Drying

    i) Seizing:-

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    In this step various seizing of trade, colors, shops, shape,

    design & pattern to be made are decide.

    ii) Clean Wash:

    Once the fabric is made it is sent for clean wash where

    chemical is used along with drink water.

    iii) Drying:

    Its a process includes grying, cylinder where finished

    fabric is a starched with the help of maize floor.

    5)Finishing:

    The cloths are passed through heating produced & finally

    taken up for finishing in pad finishing machines. Paring the

    finishing process the cloth shrinkage is around 12% to 14%. The

    fabrics are inspected & the packed.

    6)

    Packing:

    i) A-grade:

    For cuttable defects are allowed on every 800

    meters of cloth.

    ii) B-grade:

    5 to 12 cuttable defects are allowed & cloth is saidto be moderate.

    iii) C-grade:

    More than the 12 cuttable defect & cloth is fully

    damages.

    7)

    Garments Department:

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    a) Cutting

    b) Stitching

    c) Quality

    d) Embroidery

    e) Washing

    f) Finishing

    8)Garment Finishing Department:

    a)Bare tack machine

    b)

    P. V. label & alternationc)Button pressing table

    d)Steam pressing table

    e)Stain remover

    f) Folding

    g)Check table

    h)Packing

    3.3 Production Capacity:

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    Manufacturing Capacity:

    Spinning 30,000 Metric Tones per annum

    Weaving 72 Million meters per annumGarment Division 15, 00,000 pieces per annum

    Machines Capacity:

    Machines Capacity

    Felt 44 speed per minute

    Yarn stock machine 30 speed per minute45 speed per minute

    Tsudakoma machine 900 RPM

    Average 48 per minute

    Sampling side loading machine Minimum 10 kg

    Maximum 50 to 70 kg

    Hydro acceleration machine Maximum 80 kg

    Sample dryer 70 kg

    Production dryer machine 200 kg120 kg

    Production washing machine 300 kg

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    CHAPTER-4 HUMAN RESOURCE

    MANAGEMENT

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    4.1 No. of employees and shift:

    In Aarvee Denim industry no. of employees are 250.

    Every attendance within the organization is known as systemshould be maintained in office for proper function of the

    administrative generally the shift is three months.

    8:00 am to 2:00 pm

    3:00 pm to 12:00 am

    12:00 am to 7:00 pm

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    4.2 Training and development:

    Internship training in this method this training is usually meant

    for such person & such jobs where advance therical knowledge is to

    be backed by practical experience on the job.

    Development of an employee, refer to those activities that

    prepare the people.

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    4.3 Recruitment and selection:

    i) Recruitment:

    Recruitment is the process of searching for prospective

    employees & obtaining application for jobs from a many which the

    right people can be selected thus finding & attracting capable for

    employment.

    ii) Selection:

    Selection is second step of placement of people. In

    selection process, detail about job, required qualification or other

    related information provided to HR manager to fulfill vacant position.

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    4.4 Promotion & transfer:

    Promotion is an important area for changing the position of the

    employee. It helps an employee to upgrade himself in responsibilityhigher status & high position.

    Transfer polices it is necessary to proper job description & job

    analysis care should be taken to ensure that frequent or large scale

    transfer are avoided by laying down adequate selection & placement

    procedure for the purpose.

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    4.5 Performance appraisal:

    Organization is established to achieve certain objective

    achievement of goal or targets. Normally, the workers & supervisorsit together & do appraisal to avoid any prejudice. The PA system is

    transparent.

    Performance appraisal is important part of every company.

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    4.6 Wealth fare measure:

    Aarvee denims & export limited is welfare measure provided

    that:-

    a.Women & child welfare

    b.Provision of drinking water

    c. They give also medical facilities by a government

    hospital.

    d.

    They also give provident fund

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    4.7 Health & safety measure:

    Company believes that safety must function as an integralpart of each of the operation. Company gives safety to

    employee through a mask, helmet & medical test in one year.

    They also provide insurance policies such as mediclaim, life

    insurance etc. Employees safety refers to the protection of

    workers from the danger of industrial accidents.

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    CHAPTER-5 MARKETING DEPARTMENT

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    5.1 Type of Product:

    1) Denim garments: jeans, trousers, Jackets, shirts, etc for men,

    woman & kids.

    2) Cotton Garments.

    3) Home Tactile.

    4) Power Plants.

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    5.2 Place:

    Place related is decision involution distribution of product

    important variable of include of the place.

    a) Coverage:

    Company product of the areas in which coverage Aarvee

    denim &export limited of product of the international country

    of the more than 10 countries.

    b) Channel:

    Intermediate of which help of company to make its

    product available to final customer.

    c) Wholesaler:

    There are the 3 level of company has to direct the

    consumer international companies is using of agent.

    Manufacturer

    Wholesaler

    Retailer

    Customer

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    5.3 Location:

    This company has 65 showrooms in all over India. Main &

    biggest show room placed on Delhi.

    5.4 Transport:

    Company has been transport of the two ways:

    1)Indian Market

    2)International Market

    This company transports its goods via road, air & water.

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    5.5 Major competitors:

    Aarvee Denims Company has many major competitors like,

    1)M. G. Denims Ltd.

    2)M. K. Exim (India) Ltd.

    3)Arvind Products Ltd.

    5.6 Promotion:

    Promotion is given workers performance. In marketing

    promotion means all those tools that a marketer uses to take his

    product from the factory to the customer & hence involves

    advertising, sales promotion, public relation & publicity.

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    5.7 Research & development:

    Marketing is a total system of interacting business activities

    designed to plan, price, promote & distribute want satisfying

    products & services to present & potential customer market.

    Benefits derived as a result of the above research &

    development new product mix have been effected & cost reduction& batter realization.

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    CHAPTER-6 FINANCIAL DEPARTMENT

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    6.1 Initial investment:

    When any company has a separate entity than every company

    required an appropriate investment.

    So on the basis of that we have found the initial investment of

    the company of Aarvee Denims & Export Ltd. so was rupees 86

    lacks in 1988.

    Company has started a new business with this type ofappropriate investment.

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    6.2 Sources of finance:

    Aarvee Denims Export Ltd. has raised fund from the following

    sources:

    BOB

    BOI

    IDBI

    HDFC

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    6.3 Balance Sheet:

    Rs in Crore

    Sr.

    No

    Particular 31/03/2010 31/03/2009

    1 Sources of Funds

    a Share Capital 23.46 38.45

    b Resve& Surplus 140.50 123.91

    2 Loans Funds

    A Secured Loan 150.23 80.03

    B Unsecure Loan 81.14 148.26

    C Toata Debt 231.37 228.29

    3 Fixed Assets

    A Gross Block 415.86 408.62

    B - Deprecation 128.51 105.43

    C Net Block 287.35 303.19

    4 A Investment 128.41 340.50

    B Inventories 72.03 75.65

    C Debtors 78.83 63.65

    D Cash & Bank Balance 17.41 12.57

    5 Current Liabilities 35.60 45.56

    A Provisions 17.63 17.67

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    6.4 Profit & Loss A/c:

    Rs in Crore

    Sr. No Particular 31/03/2010

    1 Income

    A Gross Sales 374.77

    B - Excise Duty 0

    C Net Sales 374.77

    D Other Income 12.47

    E In Stock 14.76

    2 Expenditure

    A Material Cost 177.76

    B Manf. Cost 46.57

    C Empolyee Cost 16.19

    D Admin., selling, Gen, exp 9.84

    E Depreciation 23.21

    + P.B.T 30.20

    3 Profit for Tex 1.02

    A Current Tex 0

    B Fring Benefit Tax 0

    C -Net Prov for Tax 123

    D P.A.T 50.21

    E + Net Exp 31.76

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    6.5 Capital structure:

    Capital Structure

    _____________

    _____________

    Owned Fund Debt.

    ________

    -Secured loanS. capital Reserves -Unsecured loan

    -E. S. capital &

    -P. S. capital surplus

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    CHAPTER-7 SWOT ANALIYSIS

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    It means:

    S- StrengthW- Weakness

    O- Opportunity

    T- Threats

    Strength:

    Fabric brand Amtex

    Focusing more on Garments

    Venturing into Home Textile

    Weakness:

    Denim Outlook Subdued

    Opportunity:Venturing into Home Textile

    Focusing more on garments

    Threats:

    Competition from other countries

    Changing Fashion Trends.

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    CHAPTER-8 SOCIAL RESPONSIBILITY &

    FUTURE PLAN

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    Social responsibility:

    Social responsibility is a concept whereby the organization

    considers the interest of society by taking responsibility for the

    impact of their activities on customers, suppliers, employees,

    shareholder, communities & other stockholders, as well as the

    environment.

    The company believes that a good corporate Governancestructure would not only encourage value creation but also provide

    Accountability & control system with risk involve.

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    Future plan:

    Aarvee Denims Export Ltd. wants to increase the plant of denim

    in every place of India & also try to expand its sales which will result

    in increase profitability and productivity.

    It also aims to be the leading brands in denims world to capture

    the market and also plans to go global in future.

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    CHAPTER-9 CONCLUSION

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    Finally, I considered that this project report Aarvee Denim &

    Export Ltd. was a great experience. It was very wonderful experience

    for me from this project.

    I am very thankful to the management of Aarvee Denim &

    Export Ltd. & all the persons of the company who helped me

    immensely in preparing this report.

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    CHAPTER-10 BIBLIOGRAPHY

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    Websites:

    www.aarvee-denims.com

    Supported by Google

    Books:

    Human Resource & personal Management

    - K. Aswathappa

    Marketing Management

    - Philip Kotler

    http://www.aarvee-denims.com/http://www.aarvee-denims.com/http://www.aarvee-denims.com/