Textile industry plays a very crucial role in the scenario of India.

Textile manufacturers produce

the raw fabric that is eventually used in producing final garments. There are many fabric
manufacturers in India, producing many different types of fabrics. In context of 100% Cotton
Yarn Dyed shirting fabric, the name of Evince Textiles Ltd. is like a shining star in the sky.
KPK started its operation in 1993 and now it challenges the old and big Y/D fabric
manufacturers of India. All the big foreign buyers including H&M, C&A, CMT, Tema,
Carrefour, Meta, George, M&S have over-booked the monthly capacity of KPK in such manner
that KPK now cannot even possess any scope of taking orders from the local buyers.
Such embellishment has occurred only because of maintaining good quality and ultimately
keeping the buyers satisfied from all respects. This is what I wanted to study, the relationship
between product quality and customer satisfaction of Evince Textiles Ltd. In order to accomplish
this job, I have analyzed the market and industry scenario, current condition of KPK, and
nevertheless the data I had gotten from the customers of KPK through a useful and resourceful
survey.
After the survey I have calculated the frequency distribution of the independent variable and
tried find and interpret the data. Then I have provided some very important and useful
recommendation which I believe KPK will follow in near future in order to sustain with
reputation in the market.
Finally, I have concluded with saying that the product quality of KPK is the main reason for its
customer satisfaction. Over here, product quality doesnt mean the fabric quality only. It contains
the over product, price, promotion, delivery, service, and commitment quality of KPK and its
human resources.
1.0 Introduction
Since inception in 1983, Evince Group has expanded manifold over the years and today Evince
is one of the most diversified and independent manufacturing conglomerates in the Apparel and
textile Industry of India. In my project part I have tried to relate the current business strategies of
Evince with the business theory and tried to learn what they have been doing for decades to be
successful. I was very curious about the customer satisfaction of Evince and I wanted to know
about the key factors that satisfy their customers. For this reason, I have conducted a survey
among the buyers of Evince and based on that data I have done analysis. From that analysis I
came to know some factors which led the customers to be satisfied.
1.1 Significance of the Study
This topic is very important for the people who are involved in the textile industry. This project
work will help them to understand about the different opportunities and threats and also help
them to understand the strategy of Evince Textiles Ltd. In addition to this, There are many
people in India who are directly or indirectly involved with the Textile industry and their
livelihood is dependent on that sector.
1.2 Objective
By doing this project I have understood the business strategy of Evince Textiles Ltd and their
marketing strategies. I will have a good understanding about the management and marketing
practices of the organization. I have chosen this topic because our economy is very much
dependent on textile industry and Evince is one of the largest conglomerates in our textile
industry. I want to know their business strategies which will helps me to implement in future.
Moreover, by doing this project I will understand the basic difference between local companies
and foreign companies. And it will also help me to understand the buyers psychology.
1.3 Problem Definition and Hypothesis:
Evince Textiles Ltd is doing business for years and so far they are able to satisfy their customers.
But in the new era of business the dimension of customers need have changed and their
perception as well. In order to defend that situation I need to measure the customers satisfaction
from different perspective. So I would like to do my project on the business strategy of Evince
Textile Ltd. And my hypothesis is
Better product quality of Evince is the key to satisfy its buyer/customer satisfaction.
So, Null Hypothesis, Ho= There is a relationship between product quality of KPK and its
customers satisfaction
Alternative Hypothesis, H1= There is no relationship between product quality of KPK and its
customers satisfaction
1.4 Methodology
By taking help of the primary data I will make this research paper more effective. I will collect
data from the Evince Textiles LTD and also from different textile manufacturers. And it will help
me to understand about the demand and supply of the Textile related products. Moreover, I will
be conducting primary research which will be consists of the opinions of different employees
who is working in that sector. I will be conducting the primary research through door to door
survey, mailed questionnaire, personal interview and group discussion. And my sample size will
be 50. And all the respondents are the buyers of Evince Textile Limited.
To make the data meaningful I have done Frequency and graphical presentation etc.
In order to prove the hypothesis I have taken some variables as independent variables.
The list of independent variables is given below:
- Product Quality: Here the perception of the buyers toward the products quality is
justified.
- Product Price: Whether the buyers are satisfied with the price of the product of Evince
- Buyers Requirements: Buyers requirements has an impact of their satisfaction
- Product Design: It has an impact on buyers satisfaction.
- Reliability of Evince: If Evince is not reliable to the buyers the buyers would never be
satisfied
1.5 Limitations of the Study
There are some limitations of the study. Time constraint is a big factor here. Because it takes lot
of time to make the project more effective and suitable for everyone. Moreover, data availability
is another big issue here because company does not want to disclose all the confidential
information regarding sales and profits.
Organization Part
2.0 Overview of Evince
2.1 Background
Since inception in 1983 Evince Group has expanded manifold over the years and today Evince
is one of the most diversified and independent manufacturing conglomerates in the Apparel and
textile Industry of India. With the vision and philosophy to partner the customers, Evince has
made every effort to involve in all areas of Apparel production like textile, garments, labels,
sewing thread, button and other related accessories. Evince Textile Ltd (KPK) is a sister concern
of Evince Group and it is one of the giants in the textile industry of India. Their main product is
100% Cotton Yarn Dyed shirting fabric. By assuring quality and services KPK has become
prominent to the local and foreign buyers. At the moment, KPKs production capacity is booked
with orders up to August, 2010 and all of them are giant foreign buyers including H&M, C&A,
CMT, Tema, etc.
Evince Textiles Ltd. started its in 2003 with a goal for producing world class fabrics in India.
Currently this factory produces over a million yards of cotton shirting fabrics every month. Our
product range contains 100% cotton yarn dyed check and stripe fabrics. Designs include plain,
dobby, twills, seer sucker, oxford, solid look, etc. Fabrics are made of a variety of yarn counts
like 30s, 40s, 50s, 60s, 70s, 40/2s, 80/2s, 100/2s 120/2s and many more.
2.2 Different Divisions
There are seven sections in textile division. The descriptions of the sections are given below:
Yarn Dyeing:
The current yarn dyeing capacity is around 6000 kg per day. Facility is full equipped with a
complete lab for shade matching and color development. The dyeing vessels are the latest
models from Tong Geng with computerized control system. The vessel capacity is 5 kg to 400
kg, supported by 400kg pressure dryer for drying. The unique combination of small and large
dyeing vessels contributes extreme flexibility while handling variety of order size, large number
of colors and different quantity per batch.
Warping:
Swiss made Ben-Tronic new generation sectional wrappers, based on unique technology,
optimum ergonomics and high flexibility enabling to process all kinds of yarn dyed patterns.
Sizing
The new Ben Sizetc sizing machines with additional new automatic control undertakes all the
functions needed for a perfect warp. Present tolerance limits ensures uniform quality, tensions,
stretches temperatures and squeezing pressures etc.
Weaving
The versatility in weaving is one of the major strength of Evince Textile. Our weaving section
contains brand new 160 Italian rapier-weaving machines from SOMET, SMIT and VAMATEX.
All looms are capable to insert 8 colors in the weft and equipped with Electric Dobby where the
number of shafts is as high as twenty. Beside that a number of looms are equipped with double
beams in order to handle seersucker and designs with different warp tension.
Finishing:
The in house finishing unit ensures that any fabric that moves out of our factory is best quality
product. The finishing plant machineries are carefully selected that are customized to process
yarn dyed shirting fabrics. Finishing ranges are equipped to do many kinds of special finishes
like Carbon peach, Easy to Iron, nano-care, Anti bacteria finish etc.
Laboratories:
Evince textile contains two separate laboratories. One is pilot for color matching another is the
quality control lab to ensure online and finished goods quality.
Clientele:
With this capacity, Evince textile is continuously serving many of the world class brands like
H&M, C&A, Marks & Spencer, Celio, Matalan, Tesco, Charles Voogle, Carrefour, Gruppo-coin
in Europe and Wrangler in USA. There are some Turkey customers as well including CMT,
Tema, Meta, etc.
2.3 Organizational Chart




















3.0 Current Market Scenario:
The textile industry is very competitive in our country. There are lot of competitors in this
industry. In order to clarify the current market scenario I am going to discuss Market Evaluation
Model and Porter 5 Forces Model.
3.1 Market Evaluation Model
By taking help of Evaluation model I am going to discuss about the Textile industry of our
country.

3.2 Porters 5 forces
3.2.1 Rivalry among competitors: The market is very competitive. There are lots of
competitors in the Textile industry right now. And to some extent the price war also exists
among the competitors. But due to higher demand of the product the market is quiet normal. So
in the textile industry rivalry among competitors is moderate.
3.2.2 Bargaining power of the buyer: Previously there were very few textile product
manufacturers. Foreign buyers got the textile product at a lower price compared to other
countries. So earlier the bargaining power of the supplier was low and the foreign buyers did not
want to argue too much with the manufacturer. But the current scenario is bit different. Now
there is lot of manufacturers and the market is getting competitive. For this reason the bargaining
power of the buyer is quite high right now.
3.2.3 Bargaining power of the Supplier: Along with the manufacturers, the demand of our
textile and garment product has also increased. For this reason, the bargaining power of the
supplier has not fluctuated too much. And the bargaining power of the supplier is moderate here.
3.2.4 Substitute products: Substitute product does not exist in the market and the demand of
this product is quite inelastic. So here the threat of the substitute product is very low.
3.2.5 Risk of entry of new firms: Not only are the local investors but also the foreign investors
are very much welcome to invest in the textile industry in our country. And the government
gives all sorts of facilities to the new investors. And due to higher profitability investors are very
much interested to invest in this industry. For this reason the risk of the entry of the new firms is
very high.
4.0 SWOT Analysis
4.1 Strength:
KPK has a good relationship with the foreign and local buyers which helps them to make long
term profit and it also helps them to reduce promotional and marketing expenditure.They use
high quality machineries in their production house which brings efficiency and also reduce the
wastage.They have well qualified and well trained marketing department which helps them to
achieve their goal.Good coordination among the departments.Evince Textiles Ltd is a sister
concern of Evince Group. So they have a good financial background which helps them to face
many difficulties.Currently the product demand is so high that some foreign buyers have booked
the production capacity for several months. So, KPK now doesnt have to rely on local buyers to
fulfill their capacity.
4.2 Weakness:
Too much workload on the employees that affect on their productivity.Evince textile can
produce 700000 yardages of fabric per month. So sometimes they can not fulfill the demand
which may have a bad impact in the long term relationships with their buyers They do not have
any proper human resource department at their production level. Sometimes KPK is not able to
deliver the 100% appropriate products that are ordered by the buyers. And as a result of that
buyers are harassed and they become dissatisfied.
4.3 Opportunity:
Low labor cost in our country helps the Textile manufacturer to produce the textile product at a
lower cost. As a result of that they can sustain in the long run. Now the whole world is suffering
from serious economic catastrophe. As a result of that the purchasing power of the western
people goes down. So, the demand of the cheaper garment and textile product has gone up. So it
is a great opportunity for KPK to flourish their business. Due to higher labor cost many countries
like china, India etc. are not able to compete with the Indiai manufacturers. As a result of that
foreign buyers are more interested to do business with our textile manufacturers. Our economy is
dependent on the textile and garment industry. We earn most of our foreign currency from this
export oriented business. So government has a soft corner for this business and the government is
going to take some more initiatives to help this business. As a result of that the textile
manufacturer will be more benefited during the recession period.
4.4 Threats
Due to over-booking of production capacity of KPK by a few foreign buyers like H&M, C&A,
CMT, Tema, the local buyers are being refused to sell fabrics. It might harm reputation of KPK
and local buyers may not issue orders in future if there is less orders from foreign buyers in
future. Recent political situation is not favorable at all for the business. The political situation
should not be like that specially during the period of serious economic catastrophe.Economic
recession of United States and many other European countries going to affect our economy soon.
And it results the evaluation of money against the foreign currency like Euro, GBP etc. As a
result of that our export oriented businesses earn less foreign currency than before.Due to some
political problems labor dissatisfaction has risen in our textile and garments industry which has a
bad impact on the mind of foreign buyers.
5.0 Marketing Strategy of Evince Textiles Ltd.
5.1 4Ps of Evince textile LTD
5.1.1 Product:
Evince produces 100% cotton yarn dyed fabrics. Though KPK is a business to business firm, we
need to categorize their product in business product classification. KPK does not produce finish
product, they only produce the Fabric which is used as a raw materials in finished garment.
Generic Competitive Strategy:







Product Lines and Product Mix of KPK:












Perception Map of KPKs product














KPKs products are higher quality product compared to the other Indiai manufacturers. But the
foreign buyers consider our product as cheaper product in finest quality. They consider our
products as better quality at a lower price. For this reason KPKs product exists on the side of
High quality- Low price in perception map.
KPK has a team of fashion designer and the team is responsible to bring innovation and elegance
in their product line. This team design the product based on the current market demand and the
current trend. They also forecast the seasonal trend and demand of the clothing and make the
design according to their findings.
5.1.2 PRICE
KPK price their product based on the construction of the product. A fabric which has a higher
rate of construction, yarn count, and good quality it costs more. For setting the price KPK keep
an amount as gross margin then add the cost of the product with the gross margin.
Competitive Pricing: In order to sustain in the market they follow competitive pricing. They set
the price based on the price of the competitors. Though the market is getting competitive and
KPK is bound to lower the price of their product. In that situation they maximize their revenue
by bringing efficiency in their production system.
They also charge higher price for some of their premium product. For example Fil-a-Fil and
Chambray are their two premium products and no other Indiai manufacturer is as efficient as
KPK to produce those products. For this reason KPK asks higher price for that products.
Customer price sensitivity:
Here the customer is price sensitive and due to higher competition among the manufacturers, the
customers are in superior position. So price sensitivity of the customers plays a crucial rule here.
Product Cost: Product cost is the other factor here. Product cost influences the pricing situation
very much. KPK charge the product price based on the production cost.
Competitors likely response: For pricing situation it is also very crucial. If any company asks
higher price for any product then the others overlap the situation and offer lower price to the
buyers. Competitors respond very aggressively in this situation.
Legal and Ethical Constraint: In our country there is not any legal or ethical constraint for
pricing. So the manufacturer does not need to think about the legal issues.
Use of price in Positioning Strategy
Instrument of Competition: KPK uses price as an instrument of competition with their
competitors. As I have said earlier, now KPK is one of the largest companies in textile industry.
And by producing huge amount of product they gain economies of scale. In addition to this they
always try to be efficient in their production system. As a result of that they achieve the quality
to lower the price a bit. Eventually, without losing any profit they are now able to use the pricing
technique as an instrument of competition.
Quality and Image of the product: KPK asks higher price for some premium products and they
have competencies of that product. And no other Indiai company is as expert as KPK to produce
that product. The higher price of that product shows the image and quality of that product.
5.1.3 Promotional Strategy:
In their promotional strategies KPK does sales promotion, Public Relations, personal selling,
Direct and interactive marketing.
Advertising: For Advertising KPK attends many different fairs in home and abroad. They attend
fairs in different countries in Europe and America. They also attend many fairs in India that are
usually organized by BGMEA. Texworld fair in Europe and BATEXPO in India are mainly
attended by KPK.
Public Relations: They have very good relationship with most of the local garment
manufacturers and they are also very dedicated to keep good relationship with the foreign
buyers.
Personal Selling: KPK does personal selling. Their marketing department is responsible to
communicate with the buyers. And they always inform the new buyers about their products.
Moreover, they always keep in touch to the old buyers and very keen to help the buyers by
giving any sort of update and samples regarding their product.
Direct and Interactive marketing: KPK performs direct and interactive marketing. They
communicate to different buyers and they arrange formal and informal meetings with them.

6.0 Production Flow Chart:
The sales people of KPK first offer their product to the buyers. If the buyers like the product
then the buyers ask for the detail of the fabric and the handloom as well (Handloom is a
hand-made sample swatch of Actual fabric). On the other hand, if the buyer has any preference
then the buyer sends the sample of the fabric as a handloom or CAD. Then by taking help of the
production expert sales people let the buyer know about the actual construction of the fabric and
they also suggest the buyer about the best construction for the fabric. After having the acceptance
of the buyer, sales people inform the factory about the order and tell them to go for production in
a suitable time.
Yarn dying is the first phase in production process. Then the dyed yarns go for warping. After
finishing the warping process sizing take place. Then weaving occurs. After finishing the
weaving process the fabric is taken for finishing. And now it is ready to deliver the fabric.
Now this is the time to deliver the fabric to buyer. And before giving the delivery KPK needs to
send the bulk sample delivery to achieve the buyers acceptance. If the buyer agrees with the
sample and accept it then KPK will send the total delivery. But if the buyer does not accept the
sample then KPK needs to go for reproduction according to the buyers instructions. And then
they have to again follow the steps from Yarn dyeing process
Conclusion
From the above stated analysis, it can be said that product quality of Evince Textiles Ltd. Plays
most significant rule for customer satisfaction. In addition to this, Good co-operation of Evince
and Their verities of product also play crucial rule for customer satisfaction.
Further more, to some extent buyers become satisfied when their requirements are fulfilled.
Moreover, Buyers also become satisfied when they get good co-operation from Evince Textiles
Ltd.
Therefore, definitely product quality plays vital rule for customer satisfaction. But along with the
product quality Good co-operations, Product variation and fulfilling buyers requirements
appropriately plays a crucial rule for customer satisfaction.
If KPK can meet the recommendations above, there will be no other player in the market who
could beat KPK in the Y/D shirting fabric industry.
Finally, I can conclude with saying that the product quality of KPK is the main reason for its
customer satisfaction. Over here, product quality doesnt mean the fabric quality only. It contains
the over product, price, promotion, delivery, service, and commitment quality of KPK and its
human resources.