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PresentationPresentationonon

GARDEN SILK MILLS LTD.GARDEN SILK MILLS LTD.

Presented By:-Presented By:-

Jemish N. GandhiJemish N. Gandhi

Nilay R. JogadiaNilay R. Jogadia

Rahul V. KatariaRahul V. Kataria Submitted To:-Submitted To:-

CO-ORDINATORS OF VIVEKANAND CO-ORDINATORS OF VIVEKANAND COLLEGECOLLEGE

Industry scenario

World fiber consumption grew by 3.8% from which cotton grew by 2.5% and polyester by 4.4%. Polyester filament yarn, the fastest growing major fiber category, and the industry in which our company operates, grew by 6.5% worldwide.

China and India are the world’s largest PFY producers. Moreover, PFY growth is completely dominated by these 2 countries.

The PFY market is the largest synthetic yarn market in India and accounts for over 50% of the total demand for synthetic yarn.

The Company’s leadership in product differentiation, product quality and thus price realization gives it the opportunity and justification to grow rapidly in the fast growing PFY industry.

History of the CompanyHistory of the Company The company started from 1920, when Mr.. The company started from 1920, when Mr..

Amichand Shah installed the first hatterslay looms Amichand Shah installed the first hatterslay looms in surat.in surat.

In 1970 the company started export its product to In 1970 the company started export its product to European market and is in the process of further European market and is in the process of further development in Africa, central and eastern Asia.development in Africa, central and eastern Asia.

The company was first to setup a polyester The company was first to setup a polyester filament yarn projects and it is capable of filament yarn projects and it is capable of producing 5000 tones yarn per annum.producing 5000 tones yarn per annum.

In 1980 the company started new manufacturing In 1980 the company started new manufacturing plant at vareli which manufactures polyester yarn.plant at vareli which manufactures polyester yarn.

Overview of the Overview of the companycompany

The company operates across the entire The company operates across the entire polyester chain from polyester chips to polyester chain from polyester chips to finished fabrics.finished fabrics.

It is a public limited company incorporate It is a public limited company incorporate on July 23 1979.on July 23 1979.

Company has two production plan at vareli Company has two production plan at vareli and Jolwa. And today the company has its and Jolwa. And today the company has its own 293 authorized retail outlets all over own 293 authorized retail outlets all over India.India.

Achievements of company

The company was first to setup a polyester filaments yarn project in south Gujarat.

The company was also first in implementing two-for-one twister machine for producing PY in India.

The plant has an ISO 9002 certification by BVOI (Bureau Veritas Qualite Internationale)

Marketing DepartmentMarketing Department

Activities ofActivities of Marketing Marketing

DepartmentDepartment Activities like order collection, Activities like order collection, allocation of goods, promotion of goods allocation of goods, promotion of goods and sales of the goods are done and and sales of the goods are done and getting feedback from customers.getting feedback from customers. Parties send orders or design to company Parties send orders or design to company & give order.& give order. The company send invoice, availability of The company send invoice, availability of goods and transport facilities to the parties.goods and transport facilities to the parties. Company do not give any advertisement Company do not give any advertisement for promotion. They send sample to for promotion. They send sample to other and get order.other and get order. Direct decide.Direct decide.All the dealers ask the customer what All the dealers ask the customer what they required and collect the feedback they required and collect the feedback every month. every month.

Product MixProduct Mix

PRODUCT:PRODUCT:Garden Silk produces the Garden Silk produces the synthetic and polyester yarn synthetic and polyester yarn which is an industrial product. which is an industrial product. The Co. makes the product as The Co. makes the product as per customer needs. Reliance per customer needs. Reliance is the main competitor of this is the main competitor of this company which produces the company which produces the same products. The quality-same products. The quality-features of products of both features of products of both the company differ from each the company differ from each other both the company’s other both the company’s products are available in the products are available in the

same marketssame markets..

PRICE:PRICE:Garden’s product is less priced Garden’s product is less priced than that of Reliance & which than that of Reliance & which is the 2is the 2nd nd highest price in the highest price in the market. These 2 competitors market. These 2 competitors play a major role in the market play a major role in the market according to their product’s according to their product’s price.price.

Product MixProduct Mix

PLACE:PLACE:Garden has selected various Garden has selected various places to sell its product but places to sell its product but it’s main market is it’s main market is SURATSURAT because there is a high because there is a high demand of yarn in demand of yarn in SURAT ,the SURAT ,the “Textile City”“Textile City”. It also sells its . It also sells its product to other cities like product to other cities like Bombay, Bangalore etc. & to Bombay, Bangalore etc. & to the foreign countries also. the foreign countries also.

PROMOTION;PROMOTION;

Garden makes yarn which is Garden makes yarn which is an industrial product so there an industrial product so there is no need for much is no need for much promotional acts. The same promotional acts. The same policy is applied by the policy is applied by the Reliance. The sales officer Reliance. The sales officer takes all the decision about the takes all the decision about the promotion acts. But they don’t promotion acts. But they don’t do any promotional activity. do any promotional activity. They sell their product through They sell their product through dealers. So, we can say that dealers. So, we can say that dealers are 1 kind of dealers are 1 kind of

promotional toolspromotional tools..

CompetitorsCompetitors Reliance Synthetics.Reliance Synthetics. Gupta Synthetics.Gupta Synthetics. Indo-Rama Synthetics.Indo-Rama Synthetics. JBF industries.JBF industries. Modern Petrofils.Modern Petrofils. Nova Petrochemicals.Nova Petrochemicals. Century Inka.Century Inka.

Target MarketTarget Market The main target The main target

market is in surat.market is in surat. In SURAT there is In SURAT there is

approx 100000 looms approx 100000 looms machine.machine.

The need of POY will The need of POY will be around 80000 be around 80000 Tones/ month. Tones/ month.

TheThe GARDEN Company GARDEN Company sells approx 40000 to sells approx 40000 to 50000 Tones / month 50000 Tones / month in the SURAT market. in the SURAT market.

Channels of DistributionChannels of Distribution

Product Life CycleProduct Life Cycle

We can say from the We can say from the balance sheet of the balance sheet of the Garden Silk Mills that, Garden Silk Mills that, its product is at the its product is at the MATURITY stage MATURITY stage because every year its because every year its profit and sales is profit and sales is continuously continuously increasing.increasing.

Products of the Products of the companycompany

FabricsFabrics

SareesSarees Dress materialDress material Skirt, kurta, dupattaSkirt, kurta, dupatta Suiting and shirtingSuiting and shirting Ladies topLadies top

ProductsProducts

POY( Partially POY( Partially Oriented Yarn)Oriented Yarn)

Fully Draw Yarn Fully Draw Yarn Draw Tex YarnDraw Tex Yarn Textured YarnTextured Yarn

Production Production DepartmentDepartment

Activities of Production Activities of Production DepartmentDepartment

Manager collects the information from Marketing Manager collects the information from Marketing department about what to produce and in what department about what to produce and in what quantity.quantity.

Arrangement of raw materials i.e. POY chips and Arrangement of raw materials i.e. POY chips and starts production of POY.starts production of POY.

Check the quality of POY and packed in safe Check the quality of POY and packed in safe boxes.boxes.

Dispatch the order given by marketing Dispatch the order given by marketing department and send it by trucks.department and send it by trucks.

Material HandlingMaterial Handling

Pipelines.Pipelines. Trolleys.Trolleys. Fork Lifts.Fork Lifts. Pallets.Pallets. Hydraulic Machines.Hydraulic Machines. Plastic Bags. Plastic Bags. Boxes.Boxes.

Production process of POYProduction process of POY POY chips are stored in silo storage.POY chips are stored in silo storage. Supply the chips continuously. The Supply the chips continuously. The

sensor level checks the level of chips in sensor level checks the level of chips in storage.storage.

Chips are melted at 145’c to remove Chips are melted at 145’c to remove moisture.moisture.

Now chips comes into liquid form which Now chips comes into liquid form which goes into extractor.goes into extractor.

Now this liquid is divided into different Now this liquid is divided into different blocks and passes through cool blocks and passes through cool temperature which becomes threads.temperature which becomes threads.

Total Quality Total Quality ManagementManagement

In GARDEN, they check the quality of entire POY In GARDEN, they check the quality of entire POY bobbin by taking sample from each bobbin.bobbin by taking sample from each bobbin.

Then they make cloth from it and dyed and print Then they make cloth from it and dyed and print that cloth.that cloth.

If any mistake found they inform the production If any mistake found they inform the production manager to solve it.manager to solve it.

If the quality is good they put “OK tested” symbol If the quality is good they put “OK tested” symbol and pack it.and pack it.

Finance DepartmentFinance Department

Working Capital Working Capital ManagementManagement

YearYear C.AC.A C.LC.L Net Net W.CW.C

2003-042003-04 15169.1 15169.1 7554.6 7554.6 7614.5 7614.5

2004-052004-05 12684.8 12684.8 5743.9 5743.9 6940.93 6940.93

2005-062005-06 17397.317397.31 1

6656.36656.32 2

10740.910740.99 9

2006-072006-07 21418.6 21418.6 6841.76841.78 8

14576.8 14576.8

2007-082007-08 36982.736982.74 4

9873.09873.07 7

27109.627109.67 7

Net Working Capital

7614.50 6940.93

10740.99

14576.80

27109.67

0300060009000

12000150001800021000240002700030000

2003-04 2004-05 2005-06 2006-07 2007-08

Years

Amt.

(in R

s.)

Ratio AnalysisRatio Analysis

ParticularParticularss

2003-042003-04 2004-052004-05 2005-062005-06 2006-072006-07 2007-082007-08

Current Current ratioratio

2.82.8 3.813.81 4.064.06 4.824.82 4.974.97

Quick Quick ratioratio

1.681.68 2.72.7 2.642.64 2.972.97 3.213.21

ProprietarProprietary ratioy ratio

0.470.47 0.490.49 0.340.34 0.340.34 0.320.32

Capital Capital gearing gearing ratioratio

1.041.04 1.821.82 1.881.88 1.931.93 2.052.05

Gross Gross profitprofit

15.37%15.37% 8.65%8.65% 12.09%12.09% 11.77%11.77% 10.93%10.93%

Net profit Net profit 6.95%6.95% 1.35%1.35% 2.32%2.32% 1.67%1.67% 2.39%2.39%

Operating Operating ratioratio

83.82%83.82% 91.13%91.13% 87.85%87.85% 89.05%89.05% 89.84%89.84%

R.O.C.ER.O.C.E 6.956.95 2.732.73 6.356.35 7.127.12 8.128.12

Stock Stock turnover turnover ratioratio

4.824.82 5.895.89 8.968.96 9.769.76 8.618.61

Human Resource Human Resource DepartmentDepartment

Recruitment & Recruitment & SelectionSelection

In GARDEN they don’t do this process on big In GARDEN they don’t do this process on big scale. But they follow the process as followsscale. But they follow the process as follows:-:-

1.1. List of applicant according to different types of job.List of applicant according to different types of job.

2.2. Ranking of applicants on the basis of their Ranking of applicants on the basis of their qualifications.qualifications.

3.3. List of the applicant who will be called for interview.List of the applicant who will be called for interview.

4.4. List of the rejected applicant for the future use.List of the rejected applicant for the future use.

5.5. Final list of the applicants who are selected for job.Final list of the applicants who are selected for job.

Transfer & Transfer & PromotionPromotion

In Garden Silk, the In Garden Silk, the promotionpromotion is given on is given on seniority basisseniority basis. Some of the factors which . Some of the factors which influence the promotion are his past records, influence the promotion are his past records, person’s behavior, his interview report, job person’s behavior, his interview report, job knowledge etc.knowledge etc.

Garden follows the seniority basis for promotion Garden follows the seniority basis for promotion because the seniors are usually more because the seniors are usually more experienced and young people may gain more experienced and young people may gain more knowledge, expertise, skills etc under senior’s knowledge, expertise, skills etc under senior’s guidance. guidance.

Employee WelfareEmployee Welfare Canteen facilityCanteen facility

Rest roomRest room

UniformsUniforms

Shoes and raincoatsShoes and raincoats

First aid facilityFirst aid facility

ScholarshipsScholarships

Transport facilityTransport facility

Med claim of staffMed claim of staff

Car policy to the Car policy to the managersmanagers

Housing facility to top Housing facility to top management management

TrainingTraining GARDEN co. gives training for about 1 year to those GARDEN co. gives training for about 1 year to those

employees who are new and not to all employees.employees who are new and not to all employees.

The co. also provide infrastructure facilities to The co. also provide infrastructure facilities to employees for training such as:-employees for training such as:-

Training room/Seminar room.Training room/Seminar room. Board, Chair, OHP (Over Head Project)Board, Chair, OHP (Over Head Project) Television, VCR, CD PlayerTelevision, VCR, CD Player Automatic slide projectorAutomatic slide projector Computer with multimedia facility Computer with multimedia facility Video projector demonstration for technical Video projector demonstration for technical

guidance.guidance.

WAGE AND SALARY WAGE AND SALARY STRUCTURESTRUCTURE

IN GARDEN wages and salaries differ from IN GARDEN wages and salaries differ from employee to employee and it depends on employee to employee and it depends on nature of job, seniority and merits.nature of job, seniority and merits.

In GARDEN the salary structureIn GARDEN the salary structure is as follows:-is as follows:-

Temporary Employee Temporary Employee Rs2500 & other Rs2500 & other incentives incentives

Probation Employee Probation Employee Rs3500 & other Rs3500 & other incentives incentives

Permanent Employee Permanent Employee Rs5000 & other Rs5000 & other incentives incentives

ConclusionConclusion• Healthy relationship between management and Healthy relationship between management and employees.employees.

•Market leader in quality product & leading textile Market leader in quality product & leading textile products manufacturer. products manufacturer.

•Innovative & fancy designs are strong features of Innovative & fancy designs are strong features of company’s.company’s.

•Higher cost compared to local manufacturer. Higher cost compared to local manufacturer.

•Sales promotion and advertising expenditure is lower Sales promotion and advertising expenditure is lower than rivals.  than rivals.