MANUFACTURING PROCESS OF OCM INDIA LIMITED

A Project Report Submitted to Guru Nanak Dev University, Amritsar for the Partial Fulfillment of the Degree of Master of Commerce II

Submitted to Dr. Bhushan K. Sharma

Submitted by: Shikha Sharma

POST GRADUATE DEPARTMENT OF COMMERCE, HINDU COLLEGE, AMRITSAR

DECLARATION
I hereby certify that project entitled MANUFACTURING PROJECT OF INDIA LIMITED submitted for the completion of summer training to the Hindu College, Amritsar under G.N.D.U., Amritsar is an authentic record of my work carried out under the supervision of India Limited. Sh. S.S.KHERA at OCM

Shikha Sharma

This is to certify that the above statement made by the candidate Shikha Sharma is correct to the best of my knowledge.

Dr. Bhushan K. Sharma

ACKNOWLEDGEMENT

Nobody in this world is perfect in the field of study. One needs to be guided and supervised by experienced and intelligent persons at every step. So, I must preface my report by expressing sincere and deep gratitude to those who made it possible for me to complete my project report. I pay my thanks to Mr. Saravjit Maheshwari(VP, Sales) who give me the opportunity to undergo training in OCM INDIA LIMITED. I am very thankful to Mr. Balpreet Singh(Manager, Dyieng), Mr. Vikas Shukla(Manager, Spinning), Mr. N.K Khanna(Manager, Post Spinning), Mr. Ravi(Manager, finishing), Mr. Ravi Kumar(Manager, Inspection) for their kind and valuable guidance. My special and sincere thanks are reserved for Dr. Bhushan K. Sharma (Sr. Professor, Hindu College) for her highly valuable guidance and unceasing encouragement and last but not least Dr. Rakesh Mehra (Principal, Hindu College) for their cooperation.

CONTENTS

S.NO. 1.

PARTICULARS INTRODUCTION OF OCM INDIA LTD. COMPANY PROFILE HISTORY OF COMPANY TEXTILE INDUSTRY IN INDIA OBJECTIVES OF PROJECT REPORT RESEARCH METHODOLOGY VARIOUS DEPARTMENTS IN COMPANY FINANCE DEPARTMENT MARKETING DEPARTMENT PERSONNEL DEPARTMENT PRODUCTION DEPARTMENT MANUFACTURING PROCESS OF PRODUCTION DEPARTMENT DYEING SPINNING POST SPINNING WEAVING FINISHING INSPECTION SWOT ANALYSIS OF THE COMPANY CONCLUSION SUGGESTION BIBLIOGRAPHY

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INTRODUCTION OF OCM INDIA LIMITED

COMPANY PROFILE
OCM India Limited, popularly known as OCM, a leading Multi National Company, is a unit of International Textile Group. A British company for manufacturing high quality carpets established it in 1924. OCM, then known as Oriental Carpet Manufacturers, have enjoyed the highest goodwill for this fine quality and vibrant designs both in home and foreign market. In 1972, the British Company divested its holding and Mr. S.K Birla, belonging to the renowned business family- of India, assessment its control and since then OCM has become a synonym for quality suiting. In fact, OCM is the first worsted mill in India to get ISO-9001 certification. The company has its edge not only in domestic market hut is also exporting to several countries like Canada, USA, Middle East and others. The company is like one of the main suppliers of woolen to the armed forces and meets 80% of this requirements which itself speaks about the OCM quality. OCM is one of the Indias most modern and composite worsted mills, it has the facility to execute all stages of production via spinning, weaving, dying, and final finishing. OCM at Amritsar is bringing in the most sophisticated machinery from France, Germany, Switzerland, UK, and Italy. To produce worlds finest fabrics the company has also installed spinning machines from Germany, South Korea and Switzerland.

OCM is the state of art worsted suiting manufacturing plant, situated at Amritsar, in Punjab. OCM, the name stands for quality in Woolen, worsted and blended fabrics. Keeping pace with the international brands, OCM modernized and expended its production capacity to produce 10 million meters of finished fabric annually, installation of highly sophisticated latest machines from Germany, France, Belgium, Italy and Switzerland, have catapulted OCM into the world panorama of fashion. Spread over an area of 45 acres, OCM is one of the largest composite plans in the world having an infrastructure for spinning, dyeing, weaving and finishing under one roof. High quality wool imported from Australia flags off the production process starting from fully air conditioned spinning unit. Vibrant colors are added on fully automated microprocessor controlled dyeing machines. High quality yarn manufacturing in state of the art spinning plant takes the shapes of fabric on improved waving machines from Germany and Belgium. Finally, with the sprinkle of the finishing effects, the high class fabric is presented to the Indian and international connoisseurs adding one more feature to their scintillating personality. OCM began its illustrious pursuit over 80 years ago, with the manufacture of handmade carpets and carpet yarn and was gradually transformed to worsted fabric manufacturing. One of the leading worsted mills with an annual capacity of 8.4 million meters, OCM utilizes the most modern equipment to produce some of the finest technological innovations that the textile industry has to offer.

From fiber to finished fabric, the mill is completely vertical and offers customers a varied product range from the finest worsted fabrics for tailored garments to diverse blends for a sportier look. The mill has a stellar reputation for maintaining color continuity - especially in the segment of suit separates empowering the end customer with the ultimate in buying flexibility. On its sprawling 36-acre site, OCM has the distinct advantage of having; under a single roof, the facility for every process - right from the fiber to the finished fabric and is the first worsted mill in India to get the prestigious ISO: 9001 certification. OCM has worked with companied policies at the heart and is in the forefront in the export field, export field, exporting various overseas markets with a film match established in USA, Canada, Mexico, Middle East, Thailand, Hongkong, New Zealand and Australia. OCM is already making inroads to step up their export and outer competitive scenario. The company has been declared as the largest export of woollen fabrics from India five times in the last seven years. At the domestic front also, OCM has been very successful and ranked among the top five players in Indian textile market. At present the companys capacity includes 34064 Spindles and 182 high speed shuttle less looms thereby giving spinning capacity of 12000 kgs yarn and weaving capacity of 25000 Meters of fabric per day. OCM is amongst few companies which provide a huge variety of fabric ranging from pure wools to wool blends in 50/50, 65/35, 70/30, 75/25, 85/15. Wool is blended with various exotic fibres like cashmere, silk, linen, cotton, mohair, viscose, bamboos, camel hair etc.

OCMs Mission:

Mission of OCM is as follow and it is trying its very best in achieving that target it as follow: The company is committed to achieve, sustain and internally acceptable level of quality for its product, activity and service. Satisfaction of our esteemed customers is our supreme goal. All employees and all other supplier must relentlessly strive as a team for achieving our quality objective all the time.

ABOUT WILBUR.L.ROSS
Wilbur .L. Ross, Jr. is an American investor known for restructuring failed companies in industries such as steel, coal, telecommunications, foreign investment and textiles. He specializes in leveraged buyouts. In 2005, Forbes magazine listed Ross as one of the world's billionaires for the first time. WL Ross and Co., a private equity firm, made its first investment in India and acquired OCM, a textile company, for $37 million in an all cash deal. According to Reuters: OCM establishes us in Indias textile sector and further adds to the resources and synergies of our textile holdings, said Wilbur Ross, chairman and CEO of WL Ross, in a statement. OCM is a spin-off from Birla VXL (Digjam brand) of the SK Birla group company. OCM is known for its all-wool worsted and wool-blended worsted suitings and was acquired by the Birlas Group in the early 1970s. Mr. Wilbur Ross who heads WL Ross & Co is well-known for his investment in failed or distressed companies and turning them around. WLR has sponsored investments exceeding US$4.5 Billion. Notable initiatives include: International Steel Group Kansai Sawayaka Bank (Japan) International Textile Group International Automotive Components Group International Coal Group

In the textile sector WL Ross is known for its International Textile Group that was formed by combining Burlington Industries and Cone Mills. Cone Denim one of the worlds largest denim manufacturers. Burlington Industries one of the worlds largest worsted wool manufacturers According to Businessweek (2003) in 2000, Ross left his comfortable office at Rothschild and opened WL Ross & Co. in New York with $440 million(170-180 crore) in investor money and a staff that included four top managers who, along with Ross, make up the firms investment committee: David H. Storper, who runs trading; David L. Wax, a longtime workout specialist; Stephen J. Toy, an Asia expert; and Pamela K. Wilson, a J.P. Morgan & Co. veteran.

HISTORY OF COMPANY

1924 1924-1972

Oriental carpet manufactures (OCM) set-up by the British at Amritsar, the wool center of India. Mule spindles set-up to cater to the carpet unit. Looms added and surplus yarn woven into heavy fabrics, army uniform, blankets, etc. Worsted spinning added to cater to the surplus weaving capacity. Overall expansion of OCM-mainly towards worsted. OCM taken-over by Rallis brothers, then a part of UKs Slater Walker empire. OCM taken-over by the Birlas. The unit expanded and modernized in a phased manner. Modern shuttle-less looms installed.

1970s 1973-1993

Handmade carpets discontinued.

OCM established itself as one of the leading brands in 1994 2004 TODAY India. Major expansion and modernization. First Woollen mill to get ISO 9001 certificate in India. Takeover by WILBUR.L Ross.(51% share) A world class mill with growing international

presence. Since its inception in 1924 as a manufacturer of hand-knotted carpets, OCM has come a long way to become one of the largest worsted-suiting producer. A forerunner in adopting new and efficient methods and technologies, OCM has the rare distinction of being the FIRST worsted composite mill in India to achieve both the ISO: 9001 Certification as well as implement an ERP solution.

A completely vertically integrated plant, OCM has in-house production facilities to convert tops to finished fabrics through dyeing, spinning, weaving and finishing using state-of-the-art machinery. All the materials pass through stringent checks at every stage and help in delivering outstanding quality. At present the companys capacity includes 34064 Spindles and 182 high speed shuttle less Looms thereby having spinning capacity of 12000 kgs yarn per day and weaving capacity of 25000 Meters of finished fabric respectively The above mentioned spindles have been imported from Zinser France and other supporting equipments from NSC & Schlafhorst, Germany, Leewha, South Korea and looms from Dornier, Germany, Sulzer, Switzerland and Picanol Begium which are the leading manufacturers of Textile machinery in the world.

TEXTILE INDUSTRY IN INDIA

Textile word comes from Latin word textile, which means woven. In textile science, however a textile is freely defined as any product made from fiber.

From ancient eras, until the eighteenth century, all fabrics were constructed and decorated by hand. Weaving took place in small workshops. Some artist weavers of those centuries achieved great skills. Their beautiful examples as oriental carpets and rugs, huge tapestries portraying intricate scenes and early Coptic textile, now hang in museums all over the world as treasured exhibits. It is well known that textile industry is one of the oldest and most firmly established industries in the world. Being one of the oldest industries it has history of over 150 years. The first textile mill in India was started in 1854 under the name Bombay spinning and weaving company. During 1871-75 at least 17 new mills were established. In 1971, there were 1054 mills in the country (771 spinning mills and composite mills) with 126 million spindles and over 2 lakh looms. At present, textile industry of India accounts for 20% of total industrial output. The industry currently provides direct employment to about 15million people, the 2nd largest employer in the country next to Indian railways.

The Indian textile industry produces and handles nearly all type of fibbers(both natural and synthetics). However the industry is pre-dominantly cotton based with 70% of the raw material being cotton. The Indian spinning industry has witnessed large capacity additions and is highly modernized. It has an installed capacity of nearly 35 million ring spindles and around 320 thousand open-end rotors. The industry has the capacity of producing any count (fitness) range and specification.

In 2001-2002approximately 2800 million kgs of yarn were produced, of this cotton accounted for about 72%, blended yarn around 21% and the balance were synthetics. The textile industry commands a unique and significant presence in the Indian economy by virtue of its contribution to the national production employment and foreign exchange earnings. Currently it accounts for about 3.5%of the GDP 14% of the industrial production and over 35%of the export earnings of the country with estimated of 35 million and million more. Indirectly this is the second largest provider of employment after agriculture. Textile is the only industry that is self relevant and complete in the value chain i.e. from raw material to the highest value added product like garments and make up's the growth of this as a significant bearing on the development of economy. The textile industry is extremely complex and varied with the hand spin and hand woven sector on one end of the spectrum and the capital intensive sophisticated mill sector on the other hand. With decentralized power looms kidding sector coming in between.

The complex and varied structure of the industry coupled with its close linkage with ancient Indian culture and tradition provides it with a unique capacity. To produce it with the help of the latest technological inputs a wide variety of products suitable to the varying customer taste and preference both with in country and overseas.

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research refers to the work of collecting data from various sources. For making this project report, information has been collected from various resources.

PRIMARY RESOURCES

Primary Resources for making this report are the interactions with Mr. Saravjit Maheshwari (VP, Sales), Mr. Pardeep Puri (Manager, Sampling Dept.), Brig R.S. Randhawa (General Manager) Mr. N.K. Khanna(GM, Post Spinning), Mr. K.J. Bhardwaj (Sr. Manager, Dyeing) and other managers and workers of Production department. This project is based on manufacturing process of Production Department.

SECONDARY RESOURCES

The information has been collected from: Company Website.

Reports.

VARIOUS DEPARTMENTS OF THE COMPANY

DEPARTMENTS OF OCM

 FINANCE

MARKETING

PERSONNEL

PRODUCTION

DEPARTMENT WISE STAFF STRUCTURE

General Manager Deputy General Manager

 Manager Senior Manager Assistant Manager Technical Officer Staff In-Charge Technical Assistant Supervisor

FINANCE DEPARTMENT
The finance department has three basic departments:

Finance department Finance department looks into the cash inflow and outflow of the company finance department headed by assistant vice president who responsible for three main activities like; Banking transactions including day dealing with the banks and updating the books of account dealing with financial institutions for short term financing of the company realization activities including for short term and long term financing of debtors after the sale of goods on credit.

General accounts This department maintains all the books of accounts. It maintains the annual accounts that are audited secretly. It also looks into dues to the Government taxes excise duty etc.

MIS-Management information system MIS fives a periodic report about the financial matters of the company to the head office and board of directors. MIS also handles the budgeting on the last two year experience and the predictions of the next three year based on that this it also works out of the company policy and helps in its implementation.

MARKETING DEPARTMENT

Marketing with the Indian market moving in to a new era of global trade partnership OCM works with the countrys policies at heart and is in the forefront

in the export field exploring various overseas markets leading manufacturers worldwide rely on OCM to supply to the USA, Canada, Mexico, Hong Kong, New Zealand and Australia and many awards to their credit. OCM is already making inroads to setup their exports and enter the prestigious markets of Japan, South Africa, Indonesia and South Korea. The garments under top labels like Marks, Spencer Garden, Haggars and Barlington are being exported to the foreign market.

Product range The OCM sales team presents regular market reports of trends as they develop and change and OCM buyers encouraged to contribute to the designing process. OCM has more than 70 years of experience in production technology. In the India and abroad who search for new style develop new material and upgrade fabrics and produce samples as for buyers needs.

Distribution The companys marketing expertise lays a strong emphasis on distribution. The firm has strong dealership network, one of the strongest in India-sends regular feedback about market trends, brand acceptability and areas of innovation. A range of whole sellers are serviced by agents who in turn lease with the area managers

with the company retailers and leading stores can thus pick up their stock from OCM. The introduction of quick response system has helped to eliminate distribution bottlenecks and assisted the OCM mills to respond to customer and trade quires promptly and precisely.

Demand This is done on the basis of Past experience Dealers needs Agents conferences Market research Demand by foreign companies and other concerns

Advertisements a) b) F.S. advertising and contract advertising is the formal advertisement The company holds regular fashion shows to exhibit their production

agency in Delhi to carryout strategies. as per season.

c)

They depend on publicity office for their hoardings.

PERSONAL DEPARTMENT

The vice president is overall responsible for the functioning of the Department. The manager personal is in for co-ordinates the function assistant personal officer, chief labour officer and the head time keeper.

Recruitment/selection/training methodology The company has systematic recruitment and selection procedure so that it get the right person. For the right job and its resources and benefits are not satisfied.

Workers Demands of workers depend upon the vacancies that exist in the department. The department incharges submit their demands of workers to the personal manager as and when they require. The personal manager forwards their demands to the trade union. Employment exchange and ITI etc. and obtain workers on arrival. The personal manager examines their civil qualification and physical fitness. If found fit they are sent to the concerned department on the trail for two days. After completion of the trail their employment forms are filled and then workers are produced before the president for final approval.

Supervisor Demands of candidate will depend upon the vacancies that exist in the various departments. The department incharges submit their demands to the personal manager as and when require. The personal manager calls the candidate from the employment exchanges, polytechnics, textile institutes etc. an advertisement is also given in the mill for calling the candidates. The candidates are finally interviewed by the interview board proceeded by the president. The other members of the board are the JT. President, vice president, department incharge concerned. The selected candidates are then asked to report for work on dates agreed upon other formalities as given below a) Medical b) Filling in to gratuity/ nomination forms c) Nomination for pf and PPF d) Nomination form for ESI e) Appointment letter. In case of senior appointment chairman and the managing director can take decision directly.

Training

For the proper working of the organization and for proper handling of the machines training and is coordinated by the personal manager OCM provides the facility of providing distance education under Pillani bits system where in a diploma holder after working some time in the organization becomes a degree holder.

Retirement Employees seeking voluntary retirement submit their request to their department incharges. They submit the same to the personaldepartment. The personal manager prepares memos and distributed time officer, security officer, cashier/accounts and PF department. A similar procedure is adopted in case of individuals who retire in the normal case on obtaining the age of supernuetion. However such individuals are informed through a memo prepared by the personal manager three months to the retirement. All retirements or superannuating are executed on 31st march.

Welfare

The company takes keen interest in welfare of its employees like providing of economized canteen facilities. Proper arrangements of drinking water and urinals, systematic arrangement of pay packages and providing gifts on special occasions. The company gives out Diwali gifts, cycles and sewing machines on retirement to permanent workers and education to child.

PRODUCTION DEPARTMENT

Based on the orders that are booked, a tentative raw materials requirements schedule is prepared by the department. According the raw material is ordered as purchased. The purchased raw material is sent to combers for converting it into continuous length of fibres called sliver. These sliver are then converted into a continuous length of processing. The process of production starts with dyeing and ends with inspection of the finished product. Production department includes:

Dyeing Spinning Weaving Finishing Inspection

MANUFACTURIN G PROCESS OF THE COMPANY

MANUFACTURING PROCESS

DYEING

Color is the most indispensable aspect of fabric production. A careful selection of various colors make-up the final recipe of fabric dyeing. Dyeing is carried out in the following forms Fibre dyeing Top dyeing Yarn dyeing Piece dyeing Top dyeing is done followed by radio frequency drying. All wool dyeing is carried out on soft flow jet dyeing machine. Poly wool fabric dyeing is done in jet drying machines. The wool tops are dyed or are used as white depending on the requirement. The dyed tops are back washed for removing the superficial dyes and chemicals used during dyeing and then they are dried.

NEW SPINNING

After dyeing the material is passed to the New Spinning Department. The flaw flexes of a particular fabric depends upon the exactness of the spinning in which 100% wool and viscose polywool blend or terry wool etc. can be processed. The

basic raw materials required are polyester wool and viscose. The material can be dyed or white and thus needs to be separately processed. The material received from the dye is first stored in dyed top godown from where it goes for spinning. The required specifications such as blend %, color, quantity, quality etc are written on as sample chart that moves along with processed material.

PROCESS OF NEW SPINNING:

BLENDING is performed, in which different yarns are mixed to get a required shade of the yarn. These are kept in big cans. COMBING here the mixed yarns are combed. It is like combing the hair. It is performed by the machines. Various defects are removed. Eg. Residual dye. It makes the yarn smooth for further processing. After combing the yarn is pass through the ROVING process in which the combed yarn is wrapped on the Big Robbins from the cans it weights approximate 2.7kg. The yarn now takes the shape of thread but it is not of desired breadth.

After making Big Bobbins the thread is wrapped on Small Bobbins it weight about 100gm. Now the thread takes the desired breadth. But it contains undesired nodes, which is a barrier in the good and smooth look of the fabric.

The nodes are removed by AUTOCONNER. It removes the defects of thread. Its capacity is 2.1kg. It removes the nodes of the threads by breaking and rejoining the threads smooth. About 12 ton thread is prepare daily.

FLOWCHART OF NEW SPINNING DEPARTMENT

Blending Combing Recombing

 Drawing Spinning Single yarn store

POST SPINNING

After new spinning, the yarn is sent to post spinning.

PROCESS OF POST SPINNING

In first step single yarn came from new spinning. known as Assembly Winding. In this step the yarn remains untwisted.

In second step two single yarns are parallel wound on cheeses which is In third step the yarn is twisted and wound on required package. This is known as Two For One Twister (TFO) in which there is two twists for one rotation of spindle. In fourth step steaming is carried out in which yarn is steamed under certain temp and pressure to set the twist to avoid snarling.

 In fifth step conditioning of yarn is done for four hours. In sixth step winding of yarn is carried out now yarn is ready for issuing to packing section in which spinning is done on commission for other fabric industry and to issue the weaving section of the OCM for weaving. The winding is done by a machine called slicer.

FLOWCHART OF POST SPINNING DEPARTMENT

AUTOCORNER ASSEMBLY WINDER TWO FOR ONE TWISTER(TFO) YARN STREAMING AUTOCORNER

WEAVING
In this section after setting the required woven yarn issued wrap is made and load on to the looms for weaving. After weaving the fabric, it is sent to the Greasy Perch section for inspection of faults and accordingly the corrective measures are taken if required From the Greasy Perch section the pieces are sent to the mending department where the ready fabric thoroughly checked for flaws and are rectified. Then the piece move in for the finishing process. Weaving is basically placement of wrap (the thread which runs down the length of the cloth) & weft (the thread which lies at alright angle to wrap, crossing the fabric from salvage to salvage.

FUNCTIONS PERFORMED IN WEAVING DEPARTMENT

SHEDDING:It means the vertical separation of wrap threads. PICKNG:-

It is inspection of weft yarn through the warp sheds. The speed of picking decides the speed of loom. It is done with the help of shuttle, projectile and rapier.

BEATING UP:It means the pushing the weft yarn into the fell of the cloth by means of read mounted on the oscillatory slab. LETTING OFF:It is releasing the thread of wrap on the wrap beam. Some important faults that can occur during weaving are:1. Missing end 2. Broken end 3. Wrong end 4. Missing pick 5. Broken pick 6. Wrong pick 7. Temple cut 8. Read mark 9. float 10. Tight end 11. draft 12. Brunch 13. Yarn bar 14. Abrasion mark

FINISHING
It is the most critical part of the whole process gives the required feel texture and flow that it lacks. The woven fabric taken up from the looms appears wrinkled, dirty, sticky, rough and lacks luster. The objective of finishing is to make neat, smooth and shiny and imparts shape to the fabric. Special features are also imparted to the fabric through finishing such as resistance to wrinkle and shrinkage etc

PROCESS OF FINISHING DEPARTMENT

First of all the fabric is passed through Greasy Heat Setting in which fabric is ironed at high temperature to kill the microbes. Then after it the fabric is sent to singeing machine it closes all the pores of the clothes. Then the fabric is washed with detergent and chemicals to maintain the colors and smoothness of the clothes. Fabric after washing is put into hydro extracts machines where water is removed and the fabric is made dried.

 After removing water, fabric is again sent to the Greasy Heat Setting to iron the fabric at low temperature. After ironing the fabric, it is sent to Semi Finished where defects are removed at first step.

After Cropping process is performed, in which the machine, which have two sided cutters, remove all the bushes of the fabric, it make the clothes smoother.

After the fabric is passed through Dalal Machine which provide the moisture to the fabric. After the fabric is made it is again pressed by Paper Press. It gives luster to the fabric. It works 14hrs a day.

There is another press Rotary which work continues. The fabric which is pressed by this machine has not need to be passed through the Dalal Machine. It means the fabric is directly passed from the cropping process to the Rotary Press. Now the fabric have luster. But it has not the smoothness or compactness. The fabric is made smooth or compact according to its demand. Fabric is made smooth by the Super finish process and it is made compact with contiblans.

Now the fabric is ready, it has shine and does not contain any wrinkle and dusty look. After the Finishing Department fabric is sent to the Inspection Department.

INSPECTION

The inspection department is where the finished fabric finishes its journey and is prepared for the final dispatch. Inspection refers to the final checking of the fabric inch for any kind of stain or fault. The inspection is done manually by qualified experts. After proper inspection the material is rolled on to rectangular planks called phable or rollers and sealed in polythene packs for final dispatch. The specifications of the fabric are also embedded on the packs.

PROCESS OF INSPECTION DEPARTMENT

The defects of finished fabric are checked in this Department. It is called Perching. These defects are checked by experts. Defects are recognized as minor defects and major defects. These are seen inch by inch. The removable defects are removed.

Next is the measuring table, here the shades and total length of fabric is measured. It is necessary to get the desired shade. If the weight is much lower than it is sent back to the finishing department & it is not accepted. E.g. If a piece of 100m is sent to the inspection department by the

finishing department it is not accepted if it is 10m less. If it is 2 or 3 m less it can be accepted only. Now the accepted fabric is sent for further processing. Then the manual cutting is performed. The total piece is cut into small required lengths. E.g. A piece of 100m is divided into 10 pieces of 10m fabric. Then these pieces are again weighted by measuring scale. It is seen that total fabric is divided into required lengths or not. Now the measured pieces are folded and labeled. After it Stamping, Wrapping and bar coding is performed. Now the fabric is sent for sale.

Here the cloth completes its journey and fabric is ready for sale

SWOT ANALYSIS OF THE COMPANY

SWOT ANALYSIS
STRENGTH
The biggest strength of OCM woolen mills is its latest technology and imported machinery. Moreover, versatility is synonymous to OCM, since the company has diversified into production of carpet yearn, blankets, tweeds and trouser making to become one of the leading names in highquality fabrics. In North India, the brand is perceived to be a premium and reliable brand because of its presence in the market for over eight decades. The production capabilities of OCM are tremendous so as to meet the growing demand with ease. Its total current production is 12.9 million meters and can go up to 23 million meters at full maturity. OCM would then be the fifth largest worsted mill at full maturity. Another major is that the companys operations are fully integrated, i.e. Every operation is in-house right from manufacturing of yarn to fabric production.

WEAKNESSES

 The main weakness of OCM is a conventional distribution channel. The company relies mainly on the agents for sales promotion. The company spends less money on advertisement as compared to other brands. Due to this reason the OCM brand is not competable to the other brands. The brands positioning is wrong, it is still perceived to be an older brand. This perception goes against it when compared with more known brands such as Raymond and Grasim and a few other foreign brands. The companys capacity is too high thus the fixed cost remains the same at any amount of production.

OPPORTUNITIES

The biggest opportunity, in India and the overseas market, is the growing popularity of readymade units. The company can set up its own ready-made unit to increase the utilization of its finished product.

Secondly, in todays phase of recession, small units are rather lacking back. And thus OCM can take advantage of this situation. The other opportunity for OCM is the rural consumer because they are not as much targeted by the big players.

THREATS

 The biggest threat to the is the growing popularity of the cotton fabric and thus the cotton producing units in India and abroad. Raymond suiting has been a major competitor of OCM. With a market share of 44% Raymond (turnover 1200 crore) today stands at the number one position in the Indian worsted market. It has achieved such popularity through its innovations, a strong distribution channel and a positive brand image. The converters i.e. units established exclusively to convert fabric into readymade garments pose the biggest threat to OCM, since they usually buy cheaper material of not so known brands.

CONCLUSION

SUGGESTIONS

SUGGESTIONS
1. The company largely depends upon the short term sources of funds. Instead there should be a more systematic procedure of investing in the short term securities. So far such decisions are centralized and lie in the hands of the head office. There needs to be more decentralization in this respect so that more could be invested in short term securities, which can be realized at any time to pay the short term liabilities. 2. For cash management the company largely depends upon the short term sources of funds. Instead there should be a more systematic procedure of investing in the short term securities. So far such decisions are centralized and lie in the hands of the head office. There needs to be more decentralization in this respect so that more could be invested in short term securities, which can be realized at any time to pay the short term liabilities. 3. The companys ratio analysis shows too much of surplus liquidity in the hands of the company. This cash should not be left idle and should be invested. 4. The company should make disbursement from a centralized account, so that a smaller cash balance would be needed at each branch. And secondly, the company would be able to control the schedule tightly and it would be easier to make disbursement on the right day. In order to speed up accounts receivable, the company can adopt the lock box system. That would ensure quick recovery of receivables. The main advantage of lock box system to OCM would be: The banks of OCM can handle the remittances prior to deposits at lower cost.

The processing time of such remittances is reduced since OCM would their collection process faster than if have processed them for internal

accounting purpose prior to their deposits in the box. This job could still be done by OCM later on by the information supplied by the banks without delaying the collection. The major advantage of accelerating the collection is to reduce the firms total financing requirements. And by transferring the clerical function to the bank, the may reduce its cost. Another important strategy for speeding accounts receivables could be that the company takes advantage of the factoring technique. This would help in converting its receivable into productive assets.

BIBLIOGRAPHY

BOOKS
I.M. Pandey, Financial Management Prof. Indian Institute of Management, Ahmedabad. Prasanna Chandra, Financial Management-Theory and Practice, Indian Institute of Management, Banglore. S.K. Bhattacharya, Accounting for Management Chief executive, Management Structure and System Private Ltd., Mumbai. ""Ross completes ITG integration"". The Business Journal of the Greater (NC) Triad Area (August 3, 2004). Annual reports of ocm 2007-06 Annual reports of ocm 2006-05

WEBSITES

www.birlagroup.com www.ocmbirlavxl.com www.ocmwoolenmills.com www.ocm.in