COMPANY STRUCTURE

OSWAL GROUP is a premier textile group of northern india having its corporate office at ludhina punjab. The group had existance for last 40 years with core competencecy of spining .we were earlier part of vardhman group but after the family sattelment between two brothers in 2003,we have nemed ourselves as oswal group .the group is mainly into spining and dyeing of all types of yarn in different blends and manufecturing of garments .the group has plens to diversify in future but mainly in textiles related activites Anshupati textile ludhiana This unit was set up by the company in 1991 with an installed capacity of 8,000 spindles to manufacture grey /dyed acrylic yarn. The acrylic yarn is used in the manufacturing of hosiery yarn is used in the manufacturing of hosiery and knitted garments .this unit also manufactures the acrylic yarn which is used in the manufactures the acrylic which is used in the manufecturing of mink blankets . f.m hammerle textiles ltd. During the year ,the company enterd into a joint venture agreement with F .M. Hammerle group ,austria for setting up a green field project for manufecturing of quaility yarn and piece dyed shirting fabric with annual capacity of 12 million metters . for this porpose, a new company in the name of oswal f.m.hammerle textiles ltd. Has been floted which will set up its plant at village kagal, dist.kolhapur (maharastra).the company has 76% equity is held by F.m hammerle group . the civil construction has already commenced .the plant is expected to be operational towards the end of 2007 Oswal group is a premier textile group of northern india having its corporate office at ludhina punjab. The group had existance for last 40 years with core competencecy of spining .we were earlier part of vardhman group but after the family sattelment between two brothers

in 2003,we have nemed ourselves as oswal group .the group is mainly into spining and dyeing of all types of yarn in different blends and manufecturing of garments .the group has plens to diversify in future but mainly in textiles related activites

Vardhman polytex limited bathinda it is the oldest unit of the company .this unit started its commercial production in 1986 with an installed capacity of 11,520 spindles .this unit is situated in the hub of the cotton belt and derives the advantage of procuring its basic material of best quailty at lower cost from nearby locations.

Vinak textiles mill,ludhiana This unit was setup in 2004with an installed capacity of 24,288 spindals .this unit has latest state of art tecnology imported from rieter (switzerland),muratac(japan) and uster(switzerland ).the spining capacity of this unit has now increased to 49,632 spindels .the company has also installed a dye house at the same location having a capacity of 13 mt per day advanced machinary imported from china .

Anshupati textile ludhiana This unit was set up by the company in 1991 with an installed capacity of 8,000 spindles to manufacture grey /dyed acrylic yarn. The acrylic yarn is used in the manufacturing of hosiery yarn is used in the manufacturing of hosiery and knitted garments .this unit also manufactures the acrylic yarn which is used in the manufactures the acrylic which is used in the manufecturing of mink blankets . f.m hammerle textiles ltd. During the year ,the company enterd into a joint venture agreement with F .M. Hammerle group ,austria for setting up a green field project for manufecturing of quaility yarn and piece dyed shirting fabric with annual capacity of 12 million metters . for this porpose, a new company in the name of oswal f.m.hammerle textiles ltd. Has been floted which will set up its plant at village kagal, dist.kolhapur (maharastra).the company has 76% equity is held by F.m hammerle group . the civil construction has already commenced .the plant is expected to be operational towards the end of 2007 The F.m hammmerle (fmh) group of australia is a well known name in the international textile scence for more than 160 years now. Through this venture ntered into the field ,vpl has entered into the field of manufacturing high end shirting febric .the subsidiary was setup by VPL in a tecqnical and Marketing collaboration with the FMH group

Vardhman Polytex Limited (VPL) bathinda : It is a unit based at bathinda in punjab. Eariler this mill was known as punjab Mohta Polytex Limited .its Foundation stone was lay down 12th june 1983 by the chief minister of punjab sardar darbara singh.the plant was commissioned on 4 th december 1986 and inaugurated by sardar surjit singh barnala .it was taken over and incorporaed by mahavir spining ltd in 1987 . thus it became the subsidary of mahavir spining limited .at the time of amalgamation it had 9000 spindles and 504 rotors making the total of 11520 spindles . in 1991 the name of the unit was changed to vardhman polytex limited , as a sperate company. but going on afteer the family settlements in 200, the unit came under oswal group.this unit had been awared with ISO 9002 certificate by the bureau of indian standerds after the final audit which took place in the unit on 26th july 1996 .

Presently the chief manager of the company is mr.vijay arora. The personal relation and industrial relation manager is mr.rajinder pal .presently there are four manufacturing units running in vardhman .manufecturing process goes on 24 hours in three shifts of 8 hours. There are about 1500 workers including employees . there is production of 104592 spindles i.e. 60 tones /day. The is consumption of electricity near about 3 to 3.5 crores each month .the turn over of last year (2010-2011) was about 800 crores of oswal group. Cotton a raw material for the industry is require main cotton belts in india are punjab,haryana,gujrat, maharastra .raw material at this unit is purchased from the following places, major from punjab are:abhor ,mansa ,malot muktasr moga, bathinda, kotkapura jaitu ,rampura ,fazilka etc .from haryana :sirsa, fatehabad ,hisar ,hansi ,bhiwani,barwala,kalanwalietc.,from rajsthan ganganager,hanumangarh

Products By VPL (Yarn) Grey Cotton Yarn(Carded) Compact Yarns Compact yarn

Count Range Ne 16s to 40s Ne 20s to 30s

Marketing Channels VPL has a strong marketing and sales presence in both the export and domestic markets domestic market has three major channels ,namely

Agents/brokers/custmenrs In this channel,agents are appointed by the company tomake arrengements for sale and also for receiving the payments on time.these agents have further arrengements of sale to different customers via brokers.recources of company is with the agents for both purposes. 2) distributer brokers customers This kind of arrengements is followed when the payments is arreanged by the trader.they can stock the material also and sell to different customers via brokers,if required. 3) direct (which includes corporate customers

The company deals with a few customers especially the corporate buyers directly as well.names of few of the corporate buyers are enlisted below:

For export chanels are 1) AGENTS (forien/ indian ) This is the major channel for the companys export marketing.there are indian as well as foriegn agents for this kind of set up combination of them can also exist for export deals where indian agents have foriegn counter part or vice versa. 2) direct Vpl is dealing with some overseas customer directley as well like; a) b) c) d) Egyptian international (egypt) CMT Lee (Mauritius ) Yuki (Bulgaria ) Ontario(ukraine) Top customers Following tables give the sales percentage Break-up from the top customers of the company Export market the top ten customers contribution to around 60% of the total exports of the company,and the top three are listed below. Name of customer country (%) South asia textile PTE 21 GME & supplies USA 10 K.N.Lee Malaysia 5

Domestic market Some of the key coustomers in the domestic market are as below Name of Coustomer Location Silver enterprises new delhi Ganpati textile new delhi

Kocher sung up acrylic ltd. ludhiana vardhman enterprises new delhi Gulati exporters gurgaon Riba textile chidana Hem knit wear ludhiana

1.

MIXING

The different varieties of cotton are issued as per product mix from the raw material section in bale from. The different varieties of cotton and different lots are mixed together as per the requirement of end product and standard recommended mixings. The material is conditioned in mixing for 24 hours.

2.

BLOW ROOM

In this process, the cleaning and opening of fibers is done in a sequence of beaters. Main purpose is to reduce tuft size, remove the trash particles and foreign matter etc, which often comes in the bales.

3.

CARDING

In this process, further cleaning of fibers is done and the fibers are opened into single fibers extent i.e. the main purpose is further removal of trash in cotton and the

industrialization and parallelization of fibers. From the carding machine, the material is delivered in the form of sliver.

4.

DRAW FRAME

The purpose of this process is to reduce the wt/yard in the card sliver 6 to 8 end of card slivers are doubl ed together in this process to reduce variations and further drafting is done to reduce the wt/yard of delivered sliver. Two passages are given at the draw frame stage.

In case of combed counts, the card sliver is fed to the precombing draw frame. The purpose of combing draw frame is to reduce the wt/yard variations in the card sliver and to parallelize the fibers. Singles passage is given at the precombing stage.

5.

LAP FORMER

20-25 precombed draw slivers are fed together to produce a lap sheets of fibers, which is wound on the spools.

6.

COMBERS

The laps prepared on lap former are fed to combers. The main purpose of combing process is to remove the short fibers from the material in the form of noil. The average noil percentage caries from 15% to 18%. Th e material is delivered in the form of sliver.

7.

SPEED FRAME

The finisher draw frame sliver is fed to the speed frames for conversion into the roving form. In this process the wt/yard of the sliver is reduced, slight twist is given to the fleece and the material delivered in the form of roving, wound on the plastic bobbins.

8.

RING FRAME

The roving is fed to ring frame for conversion into yarn. In the process, the weight / yd of roving are reduced as per requirement of ultimate user and the delivered yar n is wound on the plastic bobbins.

9.

WINDING

In this process, the yam is wound on paper cones to produce bigger package, as per requirement of the market. The weight / package varies from 1.2 kilogram to 2.2 kilogram. During the process, in addition to t he formation of bigger packages, the yarn faults are also removed with help of electronic yarn cleaner.

10. DOUBLING

In the case of type cord the process is same upto cone winding. After cone winding the yarn is fed into Cheese Winding. In the process 2 ply or 4 ply is to be done as per requirement. After the yarn is fed into ring doubling and required T.P.I. is given in 2 ply or 4 ply yarn. In the next process in assembly cheese winding is get the package in the package in the required from to be fed int o T.F.O. in T.F.O. final yarn is prepared in the form of cheese and required T.P.I, is given to the final yarn in process.

11. PACKING In this process, the cones / cheese are packed in bags or cartoons as per the requirement of the market. In addition to the packing the material is checked thoroughly to avoid mixing of different materials.

Objectives of the study The main objectives of the research were: To know export procedure in general and spining mill (vardhman polytex limited) in particular To understand related aspects of export Actual export performance of vardhman polytex limited Swot analysis in particular context to export in vardhman polytex limited.

Research mathodology To know export procedure in general and spining mill (vardhman polytex limited) in particular

The department concrned shall be studied in detail. The relevant information shall be collected from company files and officials and of commercial department

To understand related aspects of export . this study can be devided as governmenta organisation involved ,technological upgradation and quality parameters. Actual export performance of vardhman polytex limited Data shall be collected from the annual reports of vardhman polytex limited and required visits to the requisite offices. Swot analysis in particular context to export in vardhman polytex limited.

the information shall be collected by personal oberservation and views of officials.

the main reason for of best exporter (Vardhman Polytex Limited) in textile market in india is following 1. Companys philosophy 2. Total customer delight 3. Competing with the best 4. Total quality people 5. Product quality a way o life 6. Continued improvement through innovation & creativity 7. State of art technology with ultra R&D facilities 8. Respect of every VPL Parivar Member 9. Achiving Excellence through culture integration 10. Change away of life 11. Act as responsible corporate citizen and discharge our social responsibilities

Export Procedure Export procedure is a system or methodology by which export trade transaction is completed with the realization of export proceedes. In between there are many formalities is required to be completed.in the export procedure various formalities need to be completed & various documents are required to be prepared by the exporter.every exporter should have a thorough knowledge of the rules, regulations & procedure required to be followed for exporting the goods abroad. The procedure of exporting involves the following stages:Stage 1: First of all, searching of customer is done and then export order is required.usually gets order in three ways:Through internet . Through international trade & exhibition. And , Through global tender which is floated by the importers Stage 2: The exporter order must specify the mode of payments such as: L/C (letter of credit) D/P (document against Payment) D/A (document against Acceptance ) At this stage,the company prepare all the necessary d ocumnets including sales contract required by the buyer and submits to the negotiating bank in exact specified manner. The most importnat documents demanded by the importer are: Bill of exchange Commercial invoice

List bill of landing marine insurance policy cerrificate of origin STAGE 3: After getting export order from the desired country, VPL enter into a contract with it. Once the order has been received, the order is scrutinized with reference to the terms & conditions of the export contract.this is regulations the most crucial stage. All subsequent actions and reactions will depend on these terms & conditions. It is ensured that contract has been entered into in accordance with the prevelent export policies of the country and foreign exchange regulations like FERA and FEMA.

STAGE 4: As soon as the export order has been confirmed, Preparations for the dispatch of yarns are started. After Agreement, the manufacturing order is sent to the production manager by the marketing department of VPL. This order contains the description of yarn as has been given in the export order, along with the copy of the instructions given by the importer . the date by which the yarn must ready is clearly intimated to the production manager and advice the material procurement for assuring the availbility of the items required for the yarn on the basic of the order, manufecturing startes Stage 5: As soon as the yarn are manufacturedproduction manager informs the marketing department that the good are ready to dispatch. At this satge two impprtant documet are to be prepared. ARE 1 form

CT 1 form ARE 1 form is prepared quantiplicate and CT 1 form is prepared in quadra duplicate. CT form are issed by the exice department. ARE 1 forms are presented to the range supredented of central exice, who after necessary formalities signs all the copies . the original and duplicate copies are given back to exporter. The triplicate copy is sent to the maritime collector ,fourth copy is sent to the chief accounts officer and the remaining copy is kept by the office of range supretendent. The other authority which the export department approaches immediately. At this stage is the export inspection agency for conducting quality and pre-shipment inspection .An inspector is deputed by the inpection agency to inspect the consignment. If the yarns are confirmed to prescribed specifications, an inspection certificate is issued. The yawns are then dispatched to the court of shipment Stage 7: after the yawns have been dispatched to the port of loading,a dispatch advise is send to the export department. Soon after an application is send to the insurance company for marine insurance cover. The insurance policy is obtained in duolicate. At this stage all formalities in relation to ECGC cover, certificate of origin, consular invoice etc. Wherever necessary is completed. There after the export department sends the following documents to its clearing and forwarding agent along with detailed instructions:Commercial invoice Original export order Original letter of credit ARE 1 form(original and duplicate copies)

Excise Gate pass Packing List Certificate of Inspections Declaration Form in triplicate Consular Invoice Export License Railway Receipt STAGE 8: The clearing & forwarding agent takes the delivery of the consignment from the railways & arrange its storage & warehouse. Thereafter the agent prepares the requisites copy of shiping bill.

STAGE 9: After the shipping bill has been prepared & passed by the customs, the clearing & forwarding agent presents the port trust copy of the shipping bill to the shed superitendent of the port trus and obtained carting order for bringing the export cargo in the transit shed for physical examination.Thereafter, in the case of shed cargo, the dock challan is prepared.The following details are given in the dock challan :Consignees name & address Vessel name Port of destination Exporters name Mark & no. Of packages

Gross wieght Port charges payable Other details as neccessary

STAGE 10: The ship clerk calls for cargo from shed after loading prepares the mates receipts.Mates receipt is signed by the captain of ship. It is than delievered to the port commissioners shed.The clearing & forwading agent pays the port charges and take with delievery of the mate receipt.This mates receipt is than presented to the shipping company along with the requisite no. of bill of landing. SATGE 11: The clearing and forwarding agents forwards the following documents to the exporter:Full set of bill of landing Shipping bill Copies of Customs invioce ARE 1 form One copy of commercial invoice duly attested by the customs Orginal exports order Orginal letter of credit Railway concession form duly attested by customs

Stage 12: As soon as the exporter (VPL) receives the above documents from the clearing & forwarding agent, completes the

remaining formalities. The exporter files a claim with maritime collector of Center Exise in the port town for rebate of Centeral Exeise duty, side by side, shipment advice is sent to the importer. The following documents are forwarded along with the shipment advice :A non negotiable copy of Bill of Landing Customs Invoice Commercial Invoice Packing List Certificate of Origin Single country Declaration STAGE 13: The following documents are provided to the negotiating bank:ARE 1 form (duplicate copy) Bill of Exchange Full set of Bill of landing (All the Negotiable Copies ) Letter of Credit Commercial Invoice (two Copies) Customes Invoice Paking list (2 copies) Bank Realisation Certificate

STAGE 14: This is the last stage of export procedure. At this stage the bank processes & negotiation is done in the following manner:-

The entire documents are scrutinized with refference to the terms and conditions of the original Letter of Credit (In case of L/C payment terms ) Thereafter a set of following documents is transmitted to the banker of the importer by the first air mail followed by the second set of it by the second air mail to ensure that in case the first is lost, the importer can take the delivery of the consignment on the basis of second set of documents. These set of documents are

Bill of Exchange Negotiable bill of landing Commercial Invoice Customes Invoice Insurance Policy Certificate of origin Consular invoice Packing list the attested copy The original copy of bank certificate along with The attested copies, the cpommercial invoice is returned to the exporter the duplicate copy of the bank certificate is forwarded to the office of the Directer General of foreign trade in the area.

EXPORT DOCUMENTION There are a number of documnets,which have to be prepaired by the exporter in order tpo arrenge export of his consignment These documents can be classified into two i.e (a) (b) Commercial Documents Regulatory documents

Commercial documents : There are 15 commercial documents eight are principal and rest are auxiliary. Pincipal documents: Are required for effecting physical transfer of goods form an exporter to an importer.there are eight principal documents: 1) The commercial invoice it is formal demand note for payment issued by the exporter to the importer for goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customes clearence of goods and sometime for foreign exchange purpose by the importer.it is prepared by exporter . 2) Packing list alist with detailed packing information of the goods shipped

3) Bill of landing / Air waybill : An vidence of contract between the shipper of the goods and the carrier. The customer usually needs the original as proof of ownership to take possession of the goods. A kind of waybill used for the carriage of goods by air. This serves as a receipt of goods for delivery and states the condition of carriage but is not a little document or transferable / negotiable instrument. 4) Certificate of insepection /quality control : A report issued by an indepandent surveyor (Inspection Company) or the exporter on the specifications of the shipment, including quality, quantity, and/or price ,etc; required by certain buyer and countries. 5) Certificate of origin it is a document certifing the country in which the product was manufectured and in certain cases may include such information as the local material and labour content of the product. A popular example of its is form a which is often called the GSP form A. 6) Bill of Exchange : An unconditional written order, in which the importer addressed to and requird by the exporter to pay on demand or at a future date a certain amount of money to the order of a person or a bearer.

7) shipment advice : the douments related to shipment discussed further in detail. Insurance certificate : an insurance policy is an insurance document evidencing insurance has beentaken out on the goods shipped, and it gives full details of the insurance coverage. An insurance coverage. An insurance certificate certifies that the shipment has been insured under a given open policy and is to cover loss of or demage to the cargo while in transit

Auxilary Documents: these are required for prepration and procurement of principal export documents. The seven auxilary documents are 1. performa invoice 2. intimation for inspection 3. shipping instrutions 4. insurance declaration 5. application of certificte 6. Mates Receipt : A mata receipt is issued by the commanding officer of the ship when the cargo is loaded on the ship and contains information about the name of the vessel ,berth ,date of shipment, description of packeges, marks and members etc. It is first handed over to the port authorities that all the ports dues may be paid by the exporter. After paying all the dues , the agents may collect the receipt from the port authorities. Bill of loading is prepared by the shipping agent after the mate receipt has been obtained .