CHAPTER-1

Introduction of the study

I had done my summer internship at LOYAL SUPER FABRICS (UNIT OF

LOYAL TEXTILE MILLS LTD.,) in Cuddalore. I learnt more about the company
and the process under gone in each department. I had a detailed study on two
department (i.e) HR and FINANCE department. In finance department I learnt
about all accounting process done on daily basis and other related process. In HR
department I learnt about all rules and regulation maintained to recruit employees
and benefits provided for them in the company.

Employee retention is a new era of modern technology and competitive business

environment. Organizations are continuously changing, this changing environment
is not only effecting the organizations but also the employees working in it. In
order to maximize organizational efficiency and for optimal utilization of the
resources, human resources must be managed properly. Human resource
management plays a vital role in this regard. They are responsible that how
employees are treated in the organization. Employee retention is a vital issue and
challenge to all the organizations now days. There are numbers of factors which
promote the employees to stay or leave the organization. It may be external factors,
internal factors and the combined effect of both. Human resource practices counts
a lot in this regard. It is the need of the hour that hr managers should identify the
needs of the employee and then devises the retention strategies. One strategy does
not fit to all as different individuals have different priorities. Hr professionals face
the vital challenge to retain talented employees. Employee retention is very critical
to the long term health of any organization. When an organization loses its talented
employee it lefts a negative impact on innovation, customer satisfaction,
knowledge gain during the past years and on the profitability of the organization
.more over replacing cost of another employee contribute a lot to the organization.

Employee retention is a vital issue and challenge to all the organizations now days.
There are numbers of factors which promote the employees to stay or leave the
organization. It may be external factors, internal factors and the combined effect of
both. Human resource practices counts a lot in this regard. It is the need of the hour
that hr managers should identify the needs of the employee and then devises the
retention strategies. One strategy does not fit to all as different individuals have
different priorities. Hr professionals face the vital challenge to retain talented
employees. Employee retention is very critical to the long term health of any
organization. When an organization loses its talented employee it lefts a negative
impact on innovation, customer satisfaction, knowledge gain during the past years
and on the profitability of the organization .more over replacing cost of another
employee contribute a lot to the organization. It is the need of the hour that hr
managers should identify the needs of the employee and then devises the retention
strategies. One strategy does not fit to all as different individuals have different
priorities. Hr professionals face the vital challenge to retain talented employees.
Employee retention is very critical to the long term health of any organization.
When an organization loses its talented employee it lefts a negative impact on
innovation, customer satisfaction, knowledge gain during the past years and on the
profitability of the organization. More over replacing cost of another employee
contribute a lot to the organization.

COMPANY PROFILE

Committed to philanthropy and socio-environmental development, Loyal Group is

a multi-faceted organization, providing an array of products and services for textile
and apparel industries. In more than its seven decades of establishment, the Group
has created several benchmarks and established milestones for the forthcoming
generations.

Loyal Textile Mills is one of the largest composite textile mills in the country. It
comprises four spinning mills, two weaving units, one knitting unit, one dyeing
house, seven garment manufacturing units, one trading cum retailing company and
a joint venture trading company in Italy. The Group also has in its fold the 167
year old watch trading company, "P Orr & Sons" which has 11 operational retail
outlets in Tamil Nadu and Pondicherry (India).
An ISO 9002:2008 accredited, The Loyal Group follows a strict ethical code of
conduct in its business operations. The Group's annual turnover is INR 1,500 Cr
(US$ 225 Million), out of which, INR 1,200 Cr (US$ 180 Million) revenue is
generated from exports. Loyal Group exports products to various countries which
includes Argentina, Australia, Bangladesh, Brazil, Belgium, China, Cambodia,
Colombia, Croatia, Dominican Republic, Dubai, El Salvador, Egypt, Germany,
Hong Kong, Hondrous, Indonesia, Italy, Iran, Israel, Japan , Korea, Lithuania,
Latvia, Mauritius, Morocco, Madagascar, Portugal, Poland, Philippines, Pakistan,
Peru, Russia, Spain, South Africa, Srilankan, Tunisia, Turkey, Thailand, Taiwan,
Vietnam, United Kingdom and the USA.

In recognition of its continual improvement in export performance, the

Government of India has awarded the Loyal Group with the "Star Trading House"
status. Over the years, the group has been credited with several accolades and
awards in recognition of its consistent export performance.

VISION:
With a strong commitment to quality and customer satisfaction, our vision
encompasses the following:

• To be one of the most admired textile companies which follows and

supports sustainable environmental friendly processes right from
cotton cultivation to Product distribution; practices high level of
integrity and fairness in dealing with all the stake holders.
 • To remain focused on developing Speciality and Technical products
for safety and functional wear.

MISSION:
• Our quest is to become the most admired group by all our stakeholders i.e.,
Customers, Employees, Shareholders and Society at large.

• We shall pursue world- class standards in our People, Products, Processes

and Performance.

• We seek quantum growth to lead in the International and domestic market

and enhance our international presence by encouraging Innovation and
Nurturing Intellectual Processing.

• We will be always conscious of the path we take to ensure highest ethical

and moral compliance even as we remain totally focused on our goals.

OUR FOUNDER:
The Loyal Group was founded by Late “Kalaithanthai”
KarumuttuThiagarajanChettiar (1891 - 1974). He founded the group in the year
1956. He started business from a small Spinning and Weaving mill using second
hand machines and handloom. The company was primarily started to provide work
to laid off workers of a larger mill and with the passage of time it became one of
the largest and most reputed textile groups in India.

From a rich trading family, KarumuttuThiagarajanChettiar rose to become the

doyen of South Indian Textile industry with several firsts to his credit. With an
extensive experience and in-depth knowledge, he promoted several other
companies in sugar and insurance banking sector.

He started several educational institutions to offer subsidized or free education to

the people from primary schools to Engineering colleges and Management schools.
Because of his endeavor and visionary skills, after his demise, Loyal Textiles Mills
Ltd. has emerged to be an independent group.
The Group has seen three generations of entrepreneurship in Textiles and Trading.
Kalaithanthai's second son Sri KarumuthuManickavasagamChettiar carried the
torch from the place left by his illustrious father and was the architect in
modernization of Loyal Textiles. Presently, the Group is managed by the third
generation members of the founding family headed by Mr.ManikamRamaswami as
its Chairman cum Managing Director.

TEXPROCIL & AEPC AWARDS:

• Gold trophy ten years in a row (2006-07 to 2015-16) for being the largest
exporter of cotton fabrics in the country.
• Gold Plaque for the largest exporter of dyed cotton fabrics (INR 10-50
crores 2014-15).
• Bronze in Technical Textile Category from World Textile Awards sponsored
by the Textile Institute, Manchester, UK – 2014.
• Gold trophy for the largest exporter of cotton yarn in Category 50s and
below (INR 50 to INR 500 crore category) for the year 2013-2014.
• Gold trophy for the largest exporter of processed yarn (INR 10-INR 50 crore
category) for the years 2013-2014 and 2014-2015.
• Bronze Trophy for the year 1997-98 for being the third largest exporter of
cotton fabrics in the country.
• Bronze Trophy for outstanding export performance in yarn amongst mill
exporter of the year 2001-02.
• Silver Trophy for the year 1998-99 for being the second largest exporter of
cotton fabrics in the country.
• Bronze Trophy for the year 2004-05 for being the third largest exporter of
cotton fabrics in the country.
• Gold Trophy for highest unit value exporter for the year 2009-07.
 • Silver Trophy for being fourth largest exporter of garments under non-quota
category for the year 1999.

OTHER AWARDS:
• ABK-AOTS Japanese Trophy-Winner of 5S competition 2010-11 and 2011-
12
• CII Excellence Award for 5S practices 2010-11and 2011-12
• Tamil Nadu Government Safety Award 2008 and 2013
• Awarded the PrashansaPatra (Certificate) for implementing Occupational
Safety and Health (OSC) Management System
We proudly claim to be amongst the best greige fabric producing mills in the
country.
GLOBAL RECOGNITION AND CERTIFICATIONS:

Loyal Group's production units are certified by various international organisations

for its quality management practices, environmental management and safety-
related measures.
• Star Trading House (STH) certification by the Ministry of Commerce &
Industry, Government of India
• Loyal Textile Mills is the first vertically integrated textile mill to get a
certification in Asia for Integrated Management System (IMS) covering ISO
: 9000 : 2008 (Quality System) ISO : 14001 : 2004 (Environmental
Management System) 18001 : 2007 OHSAS
• SA 8000 : 2008
• Green Building (Corporate Office) under IGBC certification
• Global Organic Textile Standards (GOTS) - cotton/yarn/dyed
fabrics/garments
• Better Cotton Initiative(BCI)
• Global Recycled Standard (GRS)
• In House Research and Development Unit Recognized by Department Of
Scientific And Industrial Research (DSIR), Government Of India
• Wrap Gold Certificate.
Standard
• OEKO Tex certification - cotton/yarn/dyed fabric ISO:17050-1
• Bardush Standards For European Industrial wash
• BS 2576/1986 & ASTM D1424/1996 standards for fabrics
• ASTM D5034/ASTM D1424/1996 standards for dyed fabrics
• ISO 13934/ISO 4074-2 dyed fabrics for purpose of garmenting
• EN 471, EN 14116, EN 11611, EN 11612, EN 61482-1-2, EN 1149, EN
13034, EN 469 & NFPA 2112 standards for protective garments.
EXPORT MARKETS

Oriented towards achieving desired results, Loyal Group works with a highly
professional approach, while maintaining ethical business practices. The Group
manages a synergy with its clients for mutual growth. At present, Loyal Group
exports textile and apparel products to the discerning markets all across the globe.
Some detail are provided below:

Asian Bangladesh, China, Cambodia, Hong Kong,

countries Indonesia, Japan, Korea, New Zealand,
Philippines, Pakistan, srilankan, Thailand,
Taiwan and Vietnam
Europe Belgium, Croatia, Germany, Honduras, Italy,
countries Lithuania, Latvia, Portugal, Poland, Russia,
Spain, Turkey and United Kingdom, etc.
Middle east Iran, Israel, Dubai
countries
African Egypt, Mauritius, Morocco, Madagascar,
countries South Africa, Tunisia
Other Argentina, Australia, Brazil, Colombia,
countries Switzerland, Mexico, Dominican Republic,
El-Salvador, Peru and USA.
FUTURE INITIATIVES
Loyal has won the Texprocil Gold Trophy ten years in a row starting from 2006-
07. As India's largest exporter of cotton fabrics, loyal is keen on maintaining its
leadership position for ever more years to come! And, while at it, we would also
like to become the leading fabric and garment manufacturer using recycled
polyester and garment cut waste.

In our continual search for process improvements, we are looking at reducing

water consumption in fabric dyeing through more water-frugal processes including
the use of dope dyed materials and reopened dyed fabrics waste. This will also help
add to our already considerable efforts in environmental management.

We also want to continue to innovate and produce high performance textiles at

lower costs by making the most out of the facilities available at our R&D centre at
Naidupet.

Firmly on our radar are plans to create luxury brands in men's inner wear and
ladies leg wear using unique fabrics with high performance. We would like to
initially position these brands in the domestic market before looking for
international success. We are also actively seeking to increase the share of our
finished products' portfolio in our overall turnover.

Loyal would like to maintain its leadership position in the export of safety
garments whilst also creating a brand to cater to the domestic safety wear market.

We recognize that happy employees contribute to happy bottom lines and we

would like to be ranked amongst the best employee-engaged companies in the
country with the use of online data capture, data analysis and collective use of data
to drive employee excellence at all levels.

RESEARCH & DEVELOPMENT

• Of new fabric out of fibres

• Development of specialityfibres including anti-microbial, anti-static, heat

resistant, flame retardant, and convert them to work wear garments for
international Markets

Development of New fibre made yarn and to imply its usage in casuals and
comfort wears
• To optimize existing operating procedure
• Development of new products to achieve cost and operational effectiveness
• Changing of process products
• Development of new process for manufacture of the products
• Development in the existing pattern and develop the best cost and quality
effective parameter

UNCOMPROMISING OBSESSION FOR QUALITY

Quality assurance is carefully imbibed in every process and is every employee's
obsession. It begins at the ginnery. Loyal's cotton selectors choose the gins from
where Loyal buys its cotton. The cotton is thoroughly tested using HVI instruments
and issued for mixing, using a bale management system which ensures a narrow
band of average yellowness and micronaire values.
Fully equipped quality control labs:

• High volume cotton testing to ensure that every bale is tested. Loyal's own
bale management system is followed while mixing different bales
• AFIS advanced fibre information system is used to get a clearer picture of
the cotton and process slivers
• Mesdon: For online measurement of neps at carding and cambers at all units
• Yarn and sliver quality testing machines including fabric simulator with a
software to identify the source of defect
• Tensorapid: Single yarn strength testers to determine the RKM
• Classimat: Loyal is having Class iQON, an advanced yarn fault detection
and classification instrument. Using a combination of Visible Light and Infrared
technology, the machine detects fibre mass variations, splice faults and foreign
fibre contamination, including white polypropylene. Both cleared and uncleared
yarn are tested regularly to identify the faults and based on the test results the
process parameters and clearer settings are optimised to get the best quality.
Loyal uses a combination of cottons from Egypt, USA, Israel and India to produce
yarns for different customer specifications. 100% of both knit and woven cloths
grey, as well as dyed are inspected before packing.

RETAIN EMPLOYEES
 Motivation is necessary for work performance because, if people do not feel
inclined to engage themselves in work behavior, they will not put in necessary
efforts to perform well. However, performance of individual in the organization
depends on variety of factors besides motivation. It is therefore desirable to
identify various factors. For instance, employees’ knowledge and skills are
important performance drivers. Another factor is the company’s ability to retain its
employees with attractive benefit packages. Motivation is a prominent tool to
retain employees with greater compensation packages.

Companies have now realized the importance of retaining their qualitative

workforce and retaining their quality performers, contributes to productivity of the
organization and increase morale among employees. Middle and top management
plays a vital role in the people dimensions of the organization. The organization
culture in a long run converts to organizational ethics and people feel reluctant to
leave by making it as a stepping stone when appreciation and rewards in form of
compensation awaits them in comparisons to the market trend. In view of the
description given it is necessary to examine the facts as how to retain them. There
are four basic factors that play an important role in increasing employees’
retention, include: salary and remuneration, providing recognition, benefits and
opportunities for individual growth as presented in figure 1.1. But are they really
positively contributing to the retention rates of the company? Salary these days
hardly reduce turnover. Today’s employees look beyond money factor. In order to
ensure that organizations are behaving more customer-oriented, they need to be
equally employee centric in order to match the intellectual property and their
products and services.
Organization chart:
 CHAPTER-02

DEFINITION OF THE STUDY

He explains the first key to success is indeed people. He fined the right people
first; the
vision and strategy can follow. It is the people in organization, who are the key to
success.

The organizations want to hold the valued employees. Many approaches are used
in this regard. The one approach sees success in rewards the second in making jobs
more valuable (training and advancement).
- Jim
Collins

The relationship between the employee’s job performance and their retention also
differ significantly with organizational culture values. The cultural effects were
stronger than the combined influences of the labour market and the new
employees’ demographic characteristics.
- John e.
Sheridan
OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE
• To study about the entire production process in the company
SECONDARY OBJECTIVES
• To ascertain the problems of the employee in the organization.
• To understand the employee expectation.
• To offer suggestion the employee retention techniques of loyal super fabrics
in cuddalore.
BACKGROUND OF THE STUDY

The retention of employees has been shown to be significant to the development

and the accomplishment of the organization’s goals and objectives. Retention of
Employees can be a vital source of competitive advantage for any organization.
This study attempted to explore the main factors that contribute to employee
Retention existing in the private sector in Kuwait. The next paragraphs discuss the
Background of the study by clarifying the theoretical framework for the main
Problems with employee retention.

Today, changes in technology, global economics, trade agreements, and the like
are directly affecting employee/employer relationships. “Until recently, loyalty
was the cornerstone of that relationship. The loss of talented employees may be
very Detrimental to the company’s future success. Outstanding employees may
leave an Organization because they become dissatisfied, under paid or unmotivated
(Coff 1996), and while trying to retain employees within the organization they may
present other challenges as well. They may demand higher wages, not comply with
organization practices, and not interact well with their co-workers or comply with
their managers’ directions.

IMPORTANCE OF THE STUDY

Employee Retention refers to the techniques employed by the

management to help the employees stay with the organization for a longer period
of time. Employee retention strategies go a long way in motivating the employees
so that they stick to the organization for the maximum time and contribute
effectively. Sincere efforts must be taken to ensure growth and learning for the
employees in their current assignments and for them to enjoy their work.
Let us understand why retaining a valuable employee is essential for an
organization:
• Hiring is not an easy process: The HR Professional shortlists few
individuals from a large pool of talent, conducts preliminary interviews and
eventually forwards it to the respective line managers who further grill them
to judge whether they are fit for the organization or not. Recruiting the right
candidate is a time consuming process.
• An organization invests time and money in grooming an individual and
makes him ready to work and understand the corporate culture: A new
joinee is completely raw and the management really has to work hard to
train him for his overall development. It is a complete wastage of time and
money when an individual leaves an organization all of a sudden. The HR
has to start the recruitment process all over again for the same vacancy; a
mere duplication of work. Finding a right employee for an organization is a
tedious job and all efforts simply go waste when the employee leaves.
• When an individual resigns from his present organization, it is more
likely that he would join the competitors: In such cases, employees tend to
take all the strategies, policies from the current organization to the new one.
Individuals take all the important data, information and statistics to their new
organization and in some cases even leak the secrets of the previous
organization. To avoid such cases, it is essential that the new joinee is made
to sign a document which stops him from passing on any information even if
he leaves the organization. Strict policy should be made which prevents the
employees to join the competitors. This is an effective way to retain the
employees.
• The employees working for a longer period of time are more familiar
with the company’s policies, guidelines and thus they adjust better:
They perform better than individuals who change jobs frequently.
Employees who spend a considerable time in an organization know the
organization in and out and thus are in a position to contribute effectively.
• Every individual needs time to adjust with others: One needs time to
know his team members well, be friendly with them and eventually trust
them. Organizations are always benefited when the employees are
compatible with each other and discuss things among themselves to come
out with something beneficial for all. When a new individual replaces an
existing employee, adjustment problems crop up. Individuals find it really
difficult to establish a comfort level with the other person. After striking a
rapport with an existing employee, it is a challenge for the employees to
adjust with someone new and most importantly trust him. It is a human
 tendency to compare a new joinee with the previous employees and always
find faults in him.
• It has been observed that individuals sticking to an organization for a
longer span are more loyal towards the management and the
organization: They enjoy all kinds of benefits from the organization and as
a result are more attached to it. They hardly badmouth their organization and
always think in favour of the management. For them the organization comes
first and all other things later.
• It is essential for the organization to retain the valuable employees
showing potential: Every organization needs hardworking and talented
employees who can really come out with something creative and different.
No organization can survive if all the top performers quit. It is essential for
the organization to retain those employees who really work hard and are
indispensable for the system.

DAY WISE REPORT

DAY-1