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COMPREHENSIVE PROJECT REPORTON

“Surat Textile Industry Facing the Problem of Labour Shortage”

Submitted by

Mr.Bhavik Nasit, Enrollment No. 108050592013

Mr.Rajni Kanani, Enrollment No. 108050592021

S.R.LUTHRA INSTITUTE OF MANAGEMENT

INDUSTRY PROFILE

Global, National, State level scenario

• Nearly 30 million meters of raw fabric and 25 million meters of

processed fabric are produced in Surat daily.

• The city has several textile markets that exist since times immemorial.

Zampa Bazaar, Bombay Market, JJ Textile Market and Jash Market are

among them. Katar Gam, Magdalla and Udhana are the areas of Surat

where manufacturing is mainly concentrated.

• The famous brands of Garden and Vimal textiles evolved from Surat.

• Around 90% of polyester used in India comes from Surat.

• One of the main reasons behind the growth of Surat’s textile industry is

the city’s ability to adapt to changes and the latest trends.

PEST AnalysisPolitical Factor:

•Uneven political conditions, deteriorating law and order situation

and instability in gas and electricity prices are adversely affecting

the textile sector.

• On the other hand, textile and the other exporters also facing a lot of

challenges due to increase in the production cost of the specific export

goods, while such hurdles badly affected the Pakistani exporters to

meet the challenges and compete in the local and international markets.

Economical Factor:

• The last and current Government has been failed to

control the economy. As the prices have been increased,

the suppliers try to get and save more profit from their

investments. That’s why prices are decided and put with a

high return in terms of profit.

• Before 2008, textile industry was getting number of

incentives from the government just like R&D (Research &

Developments) and subsidies on the utilities. But some

companies misused these opportunities and unfortunately

Govt. pulled back these types of incentives.

Sociological Factors

• Polluting the air by pushing out ruins of chemicals. Different

gases in air react with these ruins which become dangerous for

human beings.

• No proper system to throw out the useless materials and

chemicals.

Technological Factor

• The technology has been improved and updated in the textile

industry of India and some of the companies in textile industry are

acquiring these technologies. By using new technology not only

they improve their quality and efficiency but also improve their

production as well as reducing the cost of production

Current Trend

Firms in textiles sector are facing the following problems in adding

capacity:

• High real estate costs making business unavailable

• TUF scheme has been put on hold by Ministry of Textiles, it is a

great cause of concern for the sector

• Labor Issues

• Shortage in power

• Raw material prices of cotton

• Rising cost of capital

Products

Figure 1 : Distribution of Product and servicesSource: UNIDO

Profile of Garden Silk Mills

• The company is public limited company incorporate on July 23,

1979. It has authorized share capital of Rs. 60 crores, out of which

around Rs.38 crores have been issued, subscribed and fully paid

up.

• The company is having a variable setup, with plants to manufacture

dress material and sarees, right from the initial stage, viz, chemicals

to finished fabrics.

• It achieved ISO 9002 on February, 2000, which was its greatest

achievement, and Garden Silk Mills become the first company

ever achieve such creation in Surat.

Hierarchy

• Industry body Assocham voiced concern over the textile and

clothing industry facing an immense challenge in mobilizing

additional workers to fulfill production requirements, as many of

them are moving to other well-paying jobs.

Literature review

• Tolani Indra K, Chairman, Kamal Export house, also added,

"The industry is facing lot of challenges with the skilled labour.

And these days due to the NREGA scheme it is hard to find

workers. In fact, there is also shortage of skilled labour in the

county, which needs an immediate attention."

• As per the official statistics of Orissa labour department,

about 1.70 lakh skilled and experienced workers from Gujarat,

mainly employed in the textile industry in Surat, have returned

to their native places in Ganjam and Puri in the last two-and-a-

half-months.

• ASSOCHAM conducted a phone survey of 100 textile firms

which revealed that nearly 45% were utilising only 50-60% of

their production capacity due to labour shortage.

REASEARCH METHDOLOGY

•PROBLEM STATEMENT :

“SURAT TEXTILE INDUSTRY FACING THE PROBLEM OF

LABOUR SHORTAGE”

Research Objective :

•Primary Objectives.

•To study the Surat Textile Industry facing the problem of labour

shortage.

•Secondary Objectives.

1.To understand how labour shortage in industry affect the

performance of the company.

2.To understand the extent to which company has been successful in

cutting down labour shortage.

3.To offer suggestions and recommendations to manage the labour

shortage in industry.

•RESEARCH DESIGN OF THE STUDY:

i. Types of Design:

The research design of the study is descriptive type.

ii. Sources Of The Data:

The study includes both primary and secondary data:

PRIMARY SOURCE:

The primary data was collected by the way of well

framed Questionnaire. Questionnaire was

administered to gather the information relating to

Labour Shortage from the managers and workers from

Garden silk mills ltd.

.

SECONDARY SOURCE:

The sources of secondary data in the proposed study will be

academic journals, trade magazines, Government of India Textile

Ministry Reports, Indian Textile and Clothing Exports Association

Reports, Indian Chambers of Commerce and Industry (FICCI)

Reports, Confederation of Indian Industries (CII) Reports and

various other related private and public reports.

iii. Sampling Plan:

Population Size:

The population size is the Labours of Surat textile industry.

Sample Frame:

The sample frame is up to a Surat city only.

Sample Size:

50 Managers and worker of Garden Silk mills ltd.

Sample Method:

Non-probabilistic and Convenience sampling.

iv. Beneficiaries of Project:

•Beneficiary of this project is to the company, to

overcome the labour shortage in the dimension in which

they are lagging.

•Key findings and analysis will helpful to them for provide

better services to workers.

•For researchers, to know the competitive advantage of

the company and their strategy

. LIMITATIONS:

• Due to time constraint depth analysis could not be

made.

• Some of the information is considered confidential and

not available for the study.

• The data taken for interpretation is for a limited period.

• The study is confined to only one organization

BIBLIOGRAPHY

News paper Article/Magazine

•Hazarika, Namrata kath.” SME Times”. (10/2/2011).

•Thomas, Melvyn.”Times of India” (4/4/2011).

•“The Hindu “, Chandigarh.(27/6/2011).

•Curtis, Marianne. (27/6/2011)

Website

•http://www.suarttextiles.com. Today's News, August

2011.

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