CHAPTER-1

INTRODUCTION

PERIOD OF TRAINING:

I have undergone summer institutional training in Indra Cotton Mills (India) Private
limited for a period of 4 weeks.

AREA OF TRAINING:

During the training period I have visited various departments;

• Production Department

• HR Department

• Finance Department

• Marketing Department

Cotton Mills of India

India is one of the important cotton-manufacturing countries of the world. Both short stable and
long-stable cotton is grown in the country. Cotton textile industry is one of the important and
largest industries in India. It accounts for a large portion of the total industrial output in the
country each year. This cotton textile industry is now in a position to meet the total demand for
textiles in the home market and to leave a sufficient surplus for foreign export. The industry also
contributes towards the total foreign income of our country and engages millions of people.

India ranks among the largest producer and exporter of cotton textile products. India exports
cotton textiles to the countries of Russia, u.k, Australia, srilanka, Iran, Germany, Belgruim, Italy,
etc.

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History, Growth And Development

The production of cotton, hand spinning and weaving has been practiced in India from
immemorial times. However, the factory production of cotton goods dates from the middle of the
19th century.

The cotton textile industry in Indian was initiated with the establishment of the first cotton textile
factory at ghusuri near Kolkata in1818.However, it was closed down very soon due to the
shortage of raw material .Actual development of the industrial had been taking place since 1859
with the establishment of cotton mill at Mumbai which is located in the cotton growing region of
western India. Since then there has been rapid growth of the industry around Mumbai and
Ahmadabad.

Industry has made rapid progress since 1880. The cotton mill industry made phenomenal
progress during the period of 40 or 45years since 1880.In the beginning, yarns spinning
developed a great deal. There was an export trade in yarn with china. Now, both yarn and cloth
are manufactured for home-consumption

RAW MATERIALS

The cotton textile industry requires raw cotton as principal raw material and chemicals like
caustic soda, dyes, arrowroot or starch, etc .for its production. The cotton growing regions are
Maharashtra Gujarat, Karnataka, Tamilnadu, etc

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CLASSIFICATION:

There are two types of cotton mills:

 Spinning mills and

 Weaving mills.

Spinning mills: Spinning is the twisting together of draun –out strands of fibre to form yarn
and is a major part of the textile industry. The yarn is the then used to create textiles, which are
then used to make clothing and many other products. There are several industrial processes
available where the fibre is drawn out, twisted and wounded onto a bobbin.

Weaving Mills: Weaving is a method of textile production in which two distinct sets of yarns
or thread are interlaced at right angles to form a fabric or cloth. Other methods are knitting,
crocheting, felting and braiding or plaiting.

DISTRIBUTION:

Cotton textile centres of India are distributed in four regions:

 Western Regions
 Southern Regions
 Northern Regions
 Eastern Regions

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Western region: Gujarat and Maharashtra are most advanced states of this region. Mumbai in
Maharashtra and Ahmadabad in Gujarat are two principal centres of this region. Ahmadabad is
known as the Manchester of India. The other centres include Nagpur, Pune, and Sholapur,
Jalgaon in Maharashtra and Surat, Bharuch, Vadodara, Bhavnagar, Rajkot, in Gujarat.

Factors for the growth of the industry in the region are:

1. Local raw cotton from Gujarat and Maharashtra.

2. Availability of hydel power produced in Western Ghats.
3. Port facilities of Mumbai and Kandala.
4. Humid climate invested by parsi and Bhatia businessman
5. Large capital invested by parsi and Bhatia businessman.
6. Locally available cheap and skilled labour from Konkan, Satara, Sholapur etc.
7. Good demand for cotton garments.

Southern region: In south India cotton mills are located in the states of Tamilnadu, Kerala,
Karnataka, and AndraPradesh. Important centres are Madurai, Salem, Tiruchirapalli, Chennai,
Guntur, Mysore; Pondicherry etc Coimbatore is the largest cotton centre of this region.

The factors for the development of cotton textile industry in this region are:

1. Supply of local raw cotton,

2. Supply of hydel power,

3. Good transportation network,

4. Port facility through the ports of Kochi, Chennai, and Tuticorin etc.

5. Locally available cheap labour,

6. Warm and humid climate and,

7. Dens population of the region.

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Northern Region: The region includes the states of Uttar Pradesh, Delhi, Punjab, Haryana,
and Rajasthan. The principal centres are Kanpur, Delhi, Amritsar, Ludhiana, Agra etc.

The factors for the development of the industry in this region are:

1. Long staple cotton produced here,

2. High demand for cotton good,

3. Good transportation system.

Eastern Region: This region includes the states of West Bengal, Bihar, Orissa and Assam.
Maximum mills are located at Kolkata, Sodepur, Belghariya, Shyamnagar, Ghusuri, Salkia,
Shrirampur, Maurigram etc.

The factors for the growth of this industry are:

1. Nearness to the Kolkata port,

2. Good transportation system,

3. Humid climate and

4. High demand for goods.

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 CHAPTER-2

COMPANY PROFILE

SHRI INDHIRA COTTON MILLS PRIVATE LIMITED

Shri Indhira Cotton Mills Private Limited is a Non-government company, incorporated on 20

Jan, 1956. It's a public unlisted company and is classified as 'company limited by shares'.

Company's authorized capital stands at Rs 1100.0 lakhs and has 97.074905% paid-up capital
which is Rs 1067.82 lakhs. Shri Indhira Cotton Mills Private Limited last annual general meet
(AGM) happened on 30 Sep, 2017. The company last updated its financials on 31 Mar, 2017 as
per Ministry of Corporate Affairs (MCA).

Shri Indhira Cotton Mills Private Limited is majorly in Manufacturing (Textiles) business from
last 63 years and currently, company operations are active. Current board members & directors
are CHIDAMBARAM APARNA, UNNAMALAI THIAGARAJAN, ALAGAPPAN
CHIDAMBARAM and ALAGAPPAN SARADHAL ACHI .

Company is registered in Chennai (Tamil Nadu) Registrar Office. Shri Indhira Cotton Mills
Private Limited registered address is POST BOX NO ; 6 JAGAMPAT GARDENS CHROMPET
MADRAS Kancheepuram TN 600044 IN.

ORGANISATTION

The British influence on the organisation of the Indian textile industry has been very profound
and long lasting. Machinery was imported from Britain until independence 90% of the
equipments in India mills of Britain origin. During the last thirty years textile has become a
highly capital intensive industry.

The machines are much faster, more automatic, with stop motions and warnings signs to help the
worker carry out his tasks. The internal organisation of textile mills has been evolving at all
levels from the traditional to the modern but the evolution is slow and not uniformly adopted in
all mills.

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PRODUCTS

Cotton yarn, cotton and viscose blended yarn, Polyester and cotton blended yarn and polyester
and viscose blended yarn. The company has established its branches at Bhiwandi and Ichalkaranj
in Maharashtra State and Ahmadabad in Gujarat State. Eighty percent of their production is
marketed by these branches. The balance twenty percent is exported to Bangladesh.

FOREIGN INVESTMENT OR COLLABORATATION

There are no foreign investments or foreign collaboration in our company or its manufacture
respectively.

SOURCE OF RAW MATERIYALS

The company buys cotton from regular suppliers at Maharashtra, Karnataka, Andhra Pradesh and
other cotton growing areas. The synthetic Fibber is bought from supplier in Madhya Pradesh and
Karnataka, depending on the quantity of cotton and synthetic fibber suitability to various counts
spun considering the market conditions from time to time.

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INDUSTRIYAL RELATIONS

The company maintains cordial relations with its workers. The present labour strength is about
300. Most of the workmen are provided with residential quarters. The company has entered
various settlements with their workers for the productivity and the workload. Hence there is
continuous production of yarn. The mill is worked by three shift basis.

PROFITABILITY & FUTURE OUTLOOK

The company is running with a satisfied profit level. The annual turnover of the company is
Rs.36croses. There is no third part commitment or other guarantee. Further there is no term loan
available by the company. Hence there is no risk for this company to obtain continuous profit.

Further the finished goods are well received by the customers at their branches and the company
has no accumulated stock at their gudown. The proceeds of the sales is also realised within ten
days of the sales and the possibility of bad depts is completely nil. Therefore the company is
running under a satisfied profit level.

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 CHAPTER-3

INDUSTRIAL PROFILE

HISTORY OF COTTON TEXTILE INDUSTRY

Textile Industry is the back bone of India. It gives major employment to the nation. It is the
highly labour oriented unit which also required huge Capital Investments. Training of Leather
was the first textile process invented by man. From the tanning of leather to the arts of spinning
and weaving, it must have taken many thousands of years. Wool was probably spun into yarn
before cotton because spinning of cotton involves a knowledge or ability to gather the fibbers as
well as Knowledge of ginning.

COTTON TEXTILE UNITS IN INDIA

There is reason to believe that cotton was first grown and put to use in India before anywhere
else in the world. Excavation at Mohenjo-Daro about 3000 B.C. have unearthed bit of cotton
cloth and twine.

From those ancient days, India has been a manufacturing nation and an exported of fine cotton
fabrics to all nations of civilised world. From then onwards, throughout the changing fortunes of
India’s long History, the spinning wheels continued to hum their tune of prosperity and the
craftsman of India earned everlasting glory for the delicacy of their muslins.

The organisation of the industry in India before the industrial revaluation was different it was in
Europe. The economic organisation was also different in India. The India economy is based upon
the villages.

When once the products of the industrial revaluation were introduced in India the cotton industry
in Bombay as well as other place was largely owned and controlled by Indian businessmen. The
first Textile Mill in India was setup by Mr.C.N.Davar, in 1854 with an English man as his
partner. Then the starting of the first mill in Bombay was soon followed Ahmadabad, where

9
Ranchodal succeeded in establishing a mill in 1856.Thereafter many mills are formed in
Bombay, Ahmadabad, Coimbatore, and Madurai. In the beginning most of mills were spinning
coarse yarns at first, but gradually as they ginned most experience they went on to spin finer
counter.

BASIC ELEMEMNTS

The three M’s are the basic element of the textile industry. The three M are:

 Man,
 Machine and
 Material

India is the agriculture country which crop cotton as one of its major agriculture yields. Hence
there is no problem for getting raw material for the textile industry. Further, huge population of
nation supplied labour to industry at the cheaper cost when compared to the other countries.
Textile industry develops the engineering knowledge in manufacturing highly upgraded textile
machinery and thereby is no problem to setup a textile unit in India.

MANAGEMENT

Most of mills in India are setup by individual entrepreneurs. The organization is private ltd
companies, Partnership firms and individual. The Government has also setup N.T.C mills. They
have also established some textile mills as co-operative textile mills.

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PRESENT TREND OF TEXTILE INDUSTRY IN INDIA

INTRODUCTION

India’s textiles sector is one of the oldest industries in Indian economy dating back several
centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion in FY18
and is expected to increase to US$ 82.00 billion by 2021 from US$ 31.65 billion in FY19*.

The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles
sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the
other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the
largest component of the textiles sector. The close linkage of the textile industry to agriculture
(for raw materials such as cotton) and the ancient culture and traditions of the country in terms of
textiles make the Indian textiles sector unique in comparison to the industries of other countries.
The Indian textile industry has the capacity to produce a wide variety of products suitable to
different market segments, both within India and across the world.

MARKET SIZE

The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach
US$ 250 billion by 2019. India’s textiles industry contributed seven per cent of the industry
output (in value terms) of India in 2017-18.It contributed two per cent to the GDP of India and
employs more than 45 million people in 2017-18.The sector contributed 15 per cent to the export
earnings of India in 2017-18.

The production of raw cotton in India is estimated to have reached 36.1 million bales in FY19^.

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INVESTMENT

The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 3.09 billion
during April 2000 to December 2018.

Some of the major investments in the Indian textiles industry are as follows:

In May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19 billion)
since June 2017.

The Government of India announced a Special Package to boost exports by US$ 31 billion,
create one crore job opportunities and attract investments worth Rs 800.00 billion (US$ 11.93
billion) during 2018-2020. As of August 2018, it generated additional investments worth Rs
253.45 billion (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).

GOVERNMENT INITIATIVES

The Indian government has come up with a number of export promotion policies for the textiles
sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic
route.

Initiatives taken by Government of India are:

The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the
Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry -
Readymade garments and Made ups - from 2 per cent to 4 per cent.

As of August 2018, the Government of India has increased the basic custom duty to 20 per cent
from 10 per cent on 501 textile products, to boost Make in India and indigenous production.

The Government of India announced a Special Package to boost exports by US$ 31 billion,
create one crore job opportunity and attract investments worth Rs 80,000 crore (US$ 11.93

12
billion) during 2018-2020. As of August 2018 it generated additional investments worth Rs
25,345 crore (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).

The Government of India has taken several measures including Amended Technology Up-
gradation Fund Scheme (A-TUFS), scheme is estimated to create employment for 35 lakh people
and enable investments worth Rs 95,000 crore (US$ 14.17 billion) by 2022.

Integrated Wool Development Programmed (IWDP) approved by Government of India to

provide support to the wool sector starting from wool rarer to end consumer which aims to
enhance the quality and increase the production during 2017-18 and 2019-20.

The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new
skill development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)' with
an outlay of Rs 1,300 core (US$ 202.9 million) from 2017-18 to 2019-20.

ACHIEVEMENTS

Following are the achievements of the government in the past four years:

I-ATUFS, a web-based claims monitoring and tracking mechanism was launched on April 21,
2016.

381 new block level clusters were sanctioned.

20 new textile parks were sanctioned

Employment increased to 8.62 million in FY18 from 8.03 in FY15.

Road Ahead

The future for the Indian textile industry looks promising, buoyed by both strong domestic
consumption as well as export demand. With consumerism and disposable income on the rise,
the retail sector has experienced a rapid growth in the past decade with the entry of several
international players like Marks & Spencer, Guess and Next into the Indian market.

High economic growth has resulted in higher disposable income. This has led to rise in demand
for products creating a huge domestic market.

Exchange Rate Used: INR 1 = US$ 0.0139 as of Q3 FY19.

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 CHAPTER-4

SIGNIFICANCE OF INTERNSHIP

During the period of internship, I was worked under the head of various departments of the
organization which helps me to gain knowledge for the various fields.

In production department from carding to ring spinning, it was never easy to learn each and
every mechanics involved. However I focused on the basic process flow. I learned that how the
material flows from blow room to card and then how it is converted into a yarn later in the ring
process. But some unique things through which we came to know the practical implementation
of theoretical knowledge are as follows:

 We got an idea of spinning plan.

 The continuous quality checking and machine over hauling process to ensure
quality production of yarn.
 The can crossing plan of card, breaker, finisher and roving.
 The calculations related to fiber blending and how the fibers are blended in an
accurate ratio at the blow room.
 The mill policy of not allowing the workers of age less than 18.
 The strict mill policy for employees not to go out during duty hours.

FINDINGS

 They have the effective maintenance in workforce and the distribution towards the
customers.
 Active Associates produce only quality product for that the are handling some set of
procedure to follow.
 Mainly company is concentrating on employee welfare , safety and security.
 Employee are also working with 90% job satisfaction it improve the productivity and
profit.
 Some of respondents are dissatisfied with their work in case of motivation

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 SUGGESTION

Based on the finding the following suggestions are made:

1. To overcome the competition the company should concentrate on the strength and
weakness of its competitor. The naturally the company will be the best in the industry.
2. The reasonable facilities provided to the staff and worker’s should improve to make a
right
environment to them.
3. The company found that quality products results from quality raw materials. So the
company should follow the same purchase procedure.
4. Hi-Tech machineries should be operated technically improved skilled worker to
improve
the efficiency of the new machineries.
5. The company should put its full potential in all function area at particular frequency to
monitor the all activities performed by the company

15
 CONCLUSION

The study helps to get a overall view of organizational aspects of Shri Indra

Cotton Mills (India) Private limited and also to know about how an organization is running and

getting success on their goals and objectives by maintaining the goodwill and status among the

customers. Visiting in Shri Indra Cotton Mills LTD was an excellent experience for me. There I

was learned practically the yarn manufacturing process.There is a suitable environment need for

a mill. But being disappointed to see that there were many worker who have no educatiobal

qualification,but they are managing many kinds of machine which is harmful for both industry

and themselves.

16