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Summer training report submitted to the ANNA UNIVERSITY COIMBATORE for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted by RAJA.G Reg. No. 098001602031 Under the Supervision and Guidance of Mr.K.Ravishankar MBA, Lecturer


CMS COLLEGE OF ENGINEERING, Ernapuram, Namakkal, Tamilnadu AUGUST 2010

BONAFIDE CERTIFICATE This is to certify that the project work titled A STUDY ON ORGANIZATION OF JAY JAY MILLS(INDIA)PRIVATE LTD TIRUPUR is a work of MANIKANDAN.P (REG. NO.098001602031) that carried out the same under my supervision. Certified further that to the best of my knowledge the work reported herein does not form part of any other project work or dissertation on the basis of which a degree or award was conferred on an earlier occasion of this or any other candidate. This project work is submitted to Anna University Coimbatore as partial fulfilment of requirement for the award of degree of Master of Business Administration. .

Signature and Name of the Guide

Signature and Name of the HOD

Submitted for the viva-voce examination held on ___________________ ___________________

(Signature of Internal Examiner with date)

(Signature of External Examiner with date)


I, G.RAJA,hereby declare that the summer training report, entitled A STUDY ON ORGANIZATION OF JAY JAY MILLS(INDIA)PRIVATE LTD TIRUPUR submitted to the Anna University Coimbatore in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and independent research work done by me during June 2010 to August 2010 under the supervision and guidance of Mr. K.RAVISHANKER, MBA, lecturer , DEPARTMENT OF MANAGEMENT STUDIES, CMS COLLEGE ENGINEERING,NAMAKKAL and it has not formed the basis for the award of any Degree / Diploma / Associate - ship / Fellowship or other similar title to any candidate of any university . Date : Place : Signature of the student (G.RAJA)

I here by record my gratitude to our respected CHAIRMAN, C.MATHUSAMY. I would like to express my sense of gratitude to our beloved PRINCIPAL, Dr. C.NELSON KENNADY BABU, who makes our journey interesting everywhere throughout our course of MBA. My extremely thankful to ASS. Prof. K.G.SENTHIL KUMAR M.B.A, M.Phil, Phd, Head of the Management Studies and other faculty members for their valuable suggestions and creative thoughts over the period of the project work. I extend my sincere thanks to my internal guide Mr.K.Ravishankar MBA, Lecturer the Department of Management Studies, for his guidance and timely Encouragement throughout my project work. I wish to express my sincere gratitude to D.GURUNATHAN MA, MBA. HR MANAGER, JAY JAY MILLS (INDIA) PRIVATE LIMITED., who granted such a blessed environment under his guidance there.

Chapter No Title Page Certificate (s) Declaration Acknowledgement List of Tables List of Charts 1 2 Introduction to the Institutional Training Industry Profile About the industry Industry leaders Markets Share Market Performance Estimations of the earnings Scope of the industry Company profile About the company Vision and Mission Market share in the industry Awards & Achievements Policy statement of the company The organisation hierarchy Departments Products & Services Learning and Findings from the company Production Finance Human Resource Marketing Kintting of fabarication Stores depertment Theoretical concepts and Real practices Conclusion Annexure Bibliography and References Particulars Page No

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Understanding the organizational environment is imperative because organizational effectiveness is largely determined by how well it is able to access and manage its environment. Institutional Training is important to learn corporate practices in line with the theories during the MBA program and it is an essential requirement and integral part of the curriculum for successful completion of the MBA programme. For that i visited the company. During the training period information has been collected regarding the organizational environment in reality also information regarding the aspects of management functions. In this report the information listed regarding the institutional training as comparing the theories that has been discussed in the regular classes and the actual practices prevailing in the business environment and found out the reason for the deviations.



India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010. Various Categories Indian textile industry can be divided into several segments, some of which can be listed as below:

Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

The Industry India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades:


Vast textile production capacity Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems


Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost with respect to other Asian competitors

Current Facts on India Textile Industry

India retained its position as worlds second highest cotton producer. Acreage under cotton reduced about 1% during 2008-09. The productivity of cotton which was growing up over the years has decreased in 2008-09. Substantial increase of Minimum Support Prices (MSPs). Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices. Imports of cotton were limited to shortage in supply of Extra Long staple cottons.



The Interim Union Budget presented by the Finance Minister of India, was on expected lines was the unanimous chorus of captains from the textile and apparel sector, whom Fibre2fashion spoke to. In fact, the Textiles Ministry has been allocated a budget of Rs 4,725 crores for 2010-11, which is lower than Rs 5912.42 crores allocated in the previous budget, by Mr Pranab Mukerjee. Other than that, the budget has extended interest subvention of 2 percent on preshipment export credit up to March 31, 2011 for exports in certain sectors, but the apparel export sector has been excluded from the same. But at the same time he has announced a partial roll-back of the stimulus package and raised the excise duties from 8 to 10 percent ad valorem. Fibre2fashion spoke to a few industry leaders to understand their reaction to the budgetary announcements. Mr R Rajendran, CFO of Lakshmi Machine Works considers the budget as a balanced one and one that will induce economic growth as there is a larger allocation for infrastructure development which will stimulate growth. He has also welcomed incentives for engaging in R&D activities. He also gave full marks to the finance minister for pegging the fiscal deficit in a phased manner and for partially rolling back the stimulus package. However he was of the opinion that the Government should have allocated more funds to the energy sector, considering that there is a serious shortage. Mr Anil Jain, CFO of Eastern Silk Industries Ltd also considers the budget to be growth oriented and on expected lines. He said that there have not been any major changes from the last year's budget and there are no specific reliefs for textile sector, per se, except that the interest subvention of 2 percent has been extended by one more year. Mr. Nitin S. Kasliwal, MD, S.Kumars Nationwide Ltd (SKNL), despite his busy traveling schedule, however was kind enough to pen down a few comments. He feels that the budget boost for the agriculture sector is a positive sign and that the budget will advance the prospects of the infrastructure sector and has also provided benefit to the salaried class.


Mr Kasi Thiagarajan, Managing Director, Rajanarayan Exports Pvt. Ltd feels that since the industry on the whole is much better off this year comparatively and there are signs of stability for some time to come, he did not expect any major announcements from the finance minister and is of the opinion that overall he has done his best. But at the same time, he and the industry at large would be much happier if the policy makers seriously focus on supplying quality electric power and implement a uniform labour policy throughout the country as these two factors have hampered the growth of the industry in India. Mr Ravichandran, Marketing Head, Lecoanet Hemant India Ltd, which is a Paris based fashion house says that the budget has given a big relief to tax payers targeting middle class working professionals come forward to spend more. In contrast, he feels that the common man is hardly likely to be pleased with the hike in fuel prices by way of excise and customs duty increase on crude oil and petroleum products. According to him, the excise duty hikes are never good news for corporate and industry and considers that it is not a balanced budget; rather it saved more money than it has taken away.


The proportion of industry sales of a good or services that is controlled by a company. Some investors prefer companies with relatively large market share because they are generally less likely to be squeezed by competitors. Market share is the percentage of the total market that a company controls for a particular product or product category. But simply, if the widget market is $100 million annually and Acme Inc-sells $25 million in widgets its market share is 25% market share is also sometimes given in unit market share is 20%.


By most accounts, the sportswear market, also called the active sportswear or the Performance apparel market, is one that has been a healthy segment of the larger textile complex. This market has exhibited many signs of growth due to an increase in public awareness of healthier lifestyles which comes with an up-tick in the number of consumers who exercise regularly. Adding to the increase in exercise is the increase in the efforts of the industry to provide the apparel the consumer wants. This is taking form in technological and stylistic advancements in the clothing being used as compared to the traditional clothing for exercise in years past. As performance increases for the products, the competition grows to become the best in order to capture the growing market which is accustomed to features in addition to function. The best way to look at the landscapes of this market is to have a look at the Money being spent on this product in the US. The size of the US market for this product category will give some indication as to how much of an impact this product category has on the apparel and textile markets in general. One source of such information is the book Household Spending, which is a reference source that provides information on the amount of money the average American consumer is spending on all types of products. A textile section is included in the book, and within this section there is data for active sportswear(New Strategist Publications, Inc, 2005). The data presented below from the Household Spending book was collected in 2003, and is divided along lines of age and before tax income. In the spending data broken down by age, there are seven groupings, beginning with under 25 and ranging as high as 75 and up. The spending numbers for the full population is also given. The numbers shown in the charts below are the annual per person spending figures in US dollars. The numbers reported in the Household Spending book are reported as annual spending in US dollars per consumer unit. This book also gives the number of people per consumer unit. This number was multiplied by the figures for spending per consumer unit in order to obtain the per person spending figures which are represented in the tables below.


One thing that is obvious by looking at the numbers for the total population is that the money being spent on female active sportswear is greater than the money being spent on male active sportswear. However, the numbers do not indicate whether this is the case due to higher prices of female sportswear garments, or if it indicates that females on average are buying more active wear than are their male counterparts. In one age group, age 35 to 44, more money was spent on male active wear than on female active wear. The rest of the groups reflected the same picture as the total population being that more money was spent on female rather than male active wear.



The Indian textile industry has an overwhelming presence in economic life of the country. As per the FY09s data, it constitutes 14% on Industrial production, 4% to GDP and 17% to countrys export earnings, which states that the textiles industry is second largest employment provider after agriculture. The last two years have been a very difficult period for the textile industry, primarily because of exchange fluctuations and economic slowdown. Now after a bad patch of 2 years, the textiles industry of India is at the threshold of a recovery. With a gradual recovery in the global economy, there are indications that textile industry can return to the growth track. However, this will be contingent upon a helpful policy framework being provided for the sector.


SCOPE OF THE INDUSTRY: 1. Jay jay is a natural and eco-friendly vegetable best fiber extracted from plants, whose stems are used as renewable energy resource and for other diversified uses. Its products are re-usable, sustainable and bio-degradable and deserve policy towards environmental commitments. 2. The jay jay sector is subjected to demand constraint. 3. The current demand for jay jay is mainly dominated by domestic consumption and comprises approximately 87% of the total production of jute goods quantity terms. 4. A consistent rate of domestic consumption of jay jay goods in India could reflect the industrys satisfaction with an assured demand from their large consumers in the protected market. 5. Traditional products like sacking and hessian constitute the bulk of the product-mix (over 80%) which creates law value addition and are manufactured by age old machinery. 6. In an unprotected market the national products would suffer from poor price competitiveness compared to alternative products. The export market expansion will also depend on the ability reduce cost to attain price competitiveness. 7. Despite Indias potential for positioning jute goods export market, jute goods confined mostly towards domestic consumption and the export remained almost stagnant. 8. Raw jay jay production has remained stagnant and also declined.





A Jay Jay mill was founded in the knitwear town of Tirupur in 1971 By: Chairmen- Mr.M.Balasubramanian. Tirupur has gained universal recognition as the leading source of Hosiery, knitted garments, casual wear jay jay mills. A Jay Jay mill entered the export market and has steadily grown into one of the leading exporters of knitwear from Tirupur. Jay jay mills and its various sister concern were business which were all consolidate under jay jay mills (India) private limited a new limited company incorporated in 1999. Since then the company has expanded in India, Sri lanka, and Bangladesh offering. Customer a wider variety of product choices and letter value by leveraging. The strengths of the three south. Asian countries Jay Jay offers the least quality and value for money products through optimal use of technology and resources.



To maintain good quality To ensure on time delivery To offer least value for money

To satisfy & maintain customer through employees involvement, team work, personal excellent and integrating scientific approaches.


Ticker: Exchanges: 521240 BOM Country: Major Industry: Sub Industry: 1,403,839,810 2010 Sales (Year Ending Jan 2011). Currency: Fiscal Yr Ends: Indian Rupees March Market Cap: Shares Outstanding: Closely Held Shares: 411,533,900 4,264,600 Employees: N/A INDIA Apparel & Textiles Miscellaneous Textiles

Share Type:





Jay jay mills are awarded ECO-10 Award by germen children swan LLC. For outstanding efforts towards our mutual goal of sustainable business practices. OEKO TEX Certificate Effluent greatment plant Zero discharge FTP and recycle plant

Sri Lanka Factories are WRAP & ISO 9001 Certified India factories are BSCI and WAL-MART approved, OEKO TEX & GOTS Certified.



The country's textile policy was last specified through the Textile Policy Statement of June 1985. Prior to this, the development of the textile industry was guided by policy announcements in March 1981 and August 1978. The stated objective of the textile policy of 1985 was an increase in production of cloth of acceptable quality at reasonable prices to meet the clothing requirements of growing population. In pursuit of this objective, the employment and export potential of the industry were also to be kept in view. The national policy is a broad statement and covers every aspect of the textile industry. However, in order to cater to the specific needs of individual states, there is a felt need for a State Level Policy. As evident from the introductory paragraphs above, the textile industry continues to play a vital socio-economic role in Tamil Nadu. Hence, the need for a dynamic, growth oriented policy is all the more important. The objective of our State textile policy will be to produce textiles to cater satisfactorily to the quantity, quality and price requirements of both domestic and international markets, keeping in view the industry's potential for employment. In an increasingly globalized economy, industries will have to be more market-driven than ever before. Therefore, any strategy designed to meet this objective will have to start with the markets and work backwards. This involves identification of markets, the products for each market and the inputs required for each product including the raw materials, technology, human and financial resources and the institutional arrangements required to link and deliver each of these effectively. Simultaneously, value addition at every stage should be enhanced so that the producers have a sound motive not only to continue, but also modernize and upgrade their technology and skills. The unifying themes which will therefore run through this process will be greater measures of "Market-orientation" and "value addition". Wherever Government desire to encourage an activity, they will do so primarily by providing infrastructure support and escort services in all cases except where specific financial support is contemplated.


Importance of Textile Sector in Tamil Nadu

According to the Annual Survey of Industries (92-93). Tamil Nadu was the 3rd largest industrial state in the country. The gross output of its industrial sector was Rs.37, 986 crores, accounting for 10.3% of the national output. Its net value added of Rs.7, 303 crores was also 10.3% of the national figure. A Cotton textile was prominent among the industry groups that contributed to this ranking. In terms of gross output value, cotton textiles increased from 18.8% of the national share (ranked 2) in 1982-83 to 32.2% (ranked 1) in 1992-93. In terms of net value added, the corresponding figures were 18.4% (ranked 2) and 37.4% (ranked 1). Other textile products accounted for 20.3% of the national gross output value (ranked 2) in 1992-93 and 22.3% of that year's net value added (ranked 2). However, in 1995-96, the textile sector as a whole in Tamil Nadu registered a disturbing negative growth rate. When we look at Tamil Nadu's Textile Sector, in 94-95, the total yarn production in the State was 695 million kgs, fully 33.3% of the country's production. Within this, the production of cotton yarn was 611 million kgs, being 38.5% of the country's output and blended and manmade fibres accounted for 84 million kgs, 16.7% of the national output. This was the output 617 textile mills (44.2% of the country), comprising 595 spinning mills (52.7%) and 22 composite mills (8.2%) accounting for a total of 98.7 lakh spindles (32.5%). Included in the spinning mills are 18 cooperative spinning mills accounting for 4.69 lakh spindles and 34 million kgs of yarn, a quantity sufficient to meet roughly half the hank yarn requirement of the State. In 1994-95, Tamil Nadu also produced 187 million metres of cloth, 11% of the national production, of which cotton accounted for 93 million metres (8.4%) and blended varieties accounted for 94 million metre (15.8%). This was the output of 7.7 lakh looms, being 5.1% of the country's loom age. Of this, 4.3lakh looms were in the handloom sector and 3.4 lakh in the power loom and composite mill sectors.



Chairmen Manageing Dirctor

Finance Dept

HR Dept

Production Dept

Marketing Depat










Mgt Traines







The JAY JAY MILLS (INDIA) PRIVATE LTD company have to six departments, Production Department Knitting and Fabrication Finance Department Store Department Personal Department Marketing Department


Product & Service

Bibs Blankets Bodysuits Booties Caps Fitted Sheets Hooded Towels Mittens Pyjama Sleepsuits T-Shirts Thermal Nightwear Washcloths






PRODUCTION CAPACITY: The JAY JAY MILLS (INDIA) PRIVATE companys production capacity: 10000 pcs of basic T-shirts per day 200000 pcs of in fant garments per day 10000 knit bed sheets per day PRODUCTION FACILITIES India & Sri Lanka 54 knitting machines including many fully computerised jacquards and stripers, wide with jersy. 12000 kgs/day knit Fabric dyeing & printing plant using 100% recyeled waste water Nine plants with modular sewing lines with our 3000 sewing machines in india & Sri Lanka. 740 heads computerised embroidery. Our 600000 sq. Lt. Tloor space Our 6000 employees PRODUCTION PROCESS STEPS Cutting Pattern Design Issue to sewing ling Cut spots verification Sewing / Stitching Dreming Buyer Checking Buttoning Irroning Backing

CUTTING Cutting is done both manually and also by machine. Recently a new machine named LECTRA, SPERADER, cutter is being imported from jermane, which costs 2.5 crore. This machine does the cutting of 1.20 lakhs pieces per day.


PROCESS First checks the defects in fabrics. If the defects are in fabrics, the defected fabrics are going to compacting for reprocessing. Then draw the design in the fabric using AUTO CAD software used for making pattern of the garments.

Spread Sheet

Pattern Design Reject Buyer Checking

Accept Garment Production

SPREAD SHEET It contains the information about the requirements of the buyer. That is specification of the buyer requirement. PATTERN DESIGN The second step is pattern design; here CAD software is used for making design of the garments. BUYER CHECKING If the pattern design is finished, then garments is given to the buyers for their verification. If there no alteration means, then only production starts. Otherwise alteration is made. They are giving two pieces for first fit check up to the buyers. They are not charging for sample pieces If the quantity less, they will deliver the goods to buyer with in 40 days.


STITCHING / SEWING They are following LINE PRODUCTION method in production unit. They are following two forms. 1. Input form The cutting fabric given to the production line. It can be recorded that record is called input record. Production line divided in to teams. Each team contains one input supervisor Input supervisor distributes the fabric to the worker Input teams and production line dividend based on style. 2. Output form Regarding input given output also verified by the supervisor In production process they are keeping hourly production record It is used to maintain the per hour production of the production line PRODUCTION PROCESS Before stitching they are using chain system to transport the garment Each chain contains parts of garments.
They are totally 200 sewing machines, which are imported from jarimani. There are 80 tailors, who are skilled in their job.

MACHINES USED IN SEWING UNIT Catalog Over lock Scalap-tee Singer Neck piping Peak tuck Hem cutter

QUALITY CHECKING They are using card system. The cards are, Green card (for production start) Yellow card (for warining) Red card (for stop the production)


They are following certain forms for quality checking that are, Technical form In line quality assurance report Measurement report End line defects quality analysis report

QUALITY AUDIT It is based on daily final inspection report. It is used to check the good garment. Different style sheet maintained by the quality auditor. This report is submitted to the factory manager. SAMPLE AND MID INSPECTION They are using pilot system for checking the sample pieces. That is in each size five pieces are given to the merchandiser for checking the garments. In the middle of the production process, merchandiser checks the five specified pieces and the quality controller also check the pieces.
FOLLOW UP ACTION BY QCS Input cut panel check Inline quality control End line quality control The cloths stitched are being checked properly before it is sent for ironing.

PRESSING OR IRONING They are using vacuum processing table and steam iron boxes. There are 50 ironing machines. The boiler inside the machine, which produces steam, is used for ironing. They are using two types of boiler Electronic boiler Gas boiler PACKING Packing is done according to the wish of the buyer. There are two types of packing Assortment packing Single packing


Assortment packing means about 10-15 pieces or costomer chossies are packed in one poly bag. Whereas single packing means each item is packed in a polythene bag separately with a photo layer. The materials normally used for packing are: Poly bags Cello tape Gum tape Tag pin Kaja machine to attach button Singer machine Label attachment, packet finishing, etc.

About 40 workers are working in the packing section. Unskilled workers are needed for this.
Packing supervisor

Asscetant supervisor


PROCESS CHAT Garments from sewing department Counting the pieces Checking

Tag attaching

Measurement checking

Ironing or pressing

Poly bag packing

Carton box packing


EXPORT After the packing is done, they are fillrd up in a large carton boxes and then they are sealed. They are kept for inspection, before being sent to the port. Any authorized person from the buyers side will come in for inspection. That person will check up the number of boxes and will randomly ask to open box to check up the materials. After inspection, the boxes (or) materials are ready, to be sent to the port through roadways. QUALITY CONTROL the following are the major duties and responsibilities of quality control department: Observed quality level and accepted quality level Analysis Controlling the mistake area Checking the accepted quality level Mistakes rectification Routine machinery check-u




JAY JAY MILLS (INDIA) PRIVATE LIMITED has emerged as an export house only in the year 2007, before that it was a building company. The following are the profits status.



2005-2006 2006-2007 2007-2008 2008-2009

25% (Normal) 25% (Normal) 25% (Normal) 25% (Normal)

TAX PAYMENT The different taxes paid by the company are SALES TAX Sales regarding the number of orders received and the rate of a single piece. Therefore, for quota sales ( fixed pieces allotted by the govt.) the tax will be 4% of the total sales. WASTE MATERIALS SALES TAX Sometimes the given order might be cancelled or the buyer may not be satisfied with the goods or during inspection the material might be rejected due to any fault or due to wrong information the design might be different, ect. Due to these reasons, there will be many waste materials. They should not be sold under the company label. There fore, they are sold at low price in a bulk to some of the whole sellers and retailers in and around tirupur. For selling these waste materials, they have to pay tax @2% of the total amount of sales. Sales Tax Waste materials sales Tax Income Tax Wealth Tax Service Tax VAT


INCOME TAX The tax paid is based on the income earned by the company. PAT (PROFIT AFTER TAX) The profit after tax applicable for the year YEAR 2005-2006 2006-2007 2007-2008 2008-2009 PROFIT AFTER TAX ( ALL IN THE PERCENTAGE) 25% (Normal) 25% (Normal) 25% (Normal) 25% (Normal)




MANPOWER Human resources play a vital role in this company. There are about 800 workers working in various units of this company. Out of this 300 are staff, are 300 are skilled workers and 200 are unskilled workers, which is the requirement of this company. No child labour is employed. MANPOWER PLANNING Since the work is done by contract basis, the labour is not planned by the organization. The contractor is planning for manpower and engaging them according to the work schedule. RECRUITMENT AND SELECTION The sources of recruitment followed in this company are Acquaintance world-of-mouth and / or who-you-know system Casual and callers at Gate The company is not following any recruitment steps in case of unskilled workers. In case of skilled workers and staff, the company is considering the previous experience, interviewing and selecting them. COMMITTEES IN JAY JAY MILLS (INDIA) PRIVATE Workers committee Safety committee Anti harassment committee RECRUITMENT FOR WORKERS First step is application screening and interview Explaining the company terms and conditions Giving appointment order Maintaining personal file

Personal details are Increment forms Nomination ESI regulation from

PF regulation form Warning letter Resigning letter etc.


STATUTORY DOCUMENTS IN HR Important statutory documents should be prepared by HR department periodically. The following documents are 1. Time cards it contains in time and out time of the employees it is called form 25B 2. Form 25 This form is used for maintain the attendance of the employees and staff members. It is prescribed under rule 103 Factories Act. 3. Form M If a company prefers form 25 then they should follow additionally Fprm M. It contains, Employee name & no. No. of working days Per day salary Gross salary Other deductions (ESI, PF, Loans ect.) Net salary 4. Pay slip It is based on form M. It also contains above details 5. From 26 Accident registers. it is prepared for inspector of factories. 6. From 26A It is prepared for dangerous occurrence to inspector of factories. 7. From 7 It contains information about white wash and painting of factories. White wash should be once in a year Painting should be once in 5 years 8. Form 29 It contains the details about the rooms available in a factory. 9. Form 15 It contains information about leave with wages. Leave with wages applicable for who are finished in 240 days in the year. The maximum accumulation of leave with wages up to maximum 30days.


PROMOTION Annual promotion is given based on the experience and work performance. DEMOTION To err is Human. Workers do mistakes while measuring or cutting. In such cases, they are given three times warning and if they repeat it again, suitable action will be taken. The same procedure will be followed for the workers coming late, taking leave without permission, ect. TRANSFER The company is not encouraging transfer between the main factory and its branches. OFFICE TIMINGS The company will work 6 days a week, i.e. Monday to Saturday and Sunday will be a weekly holiday. Working hours of the company is from 09:30 a.m to 06:00 p.m for the all employee. Front office and facilities will be working from 008:30 a.m to 06:00p.m on all working days. Employees are allowed to take 10 min break in the morning during 10:30a.m. to 10:40 a.m.; 30 min break for lunch either between 01:30p.m. to 02:00 p.m. and 10 min break in the evening during 3:30 p.m. to 3:40 p.m. MEDICAL FITNESS CHECKUP Candidates those are through with the entire interview process (I.e. selected candidates) are required to go for a medical fitness check-up with the medical officer authorized by the company. The candidates appointment on probation is subject to the candidate being found medically fit but our companys medical officer to work in the company. The expenses incurred on the above shall be borne by the company. JOB RESPONSIBILITIES During the employees induction program, the concern department superiors shall detail the employee about the role and responsibilities that the respective employees have to be performed.


SALARY Payroll will be processed from first to last date of the respective month (i.e. actual number of days in the month). Monthly salary will be credited to employees account in some one bank on or before 7th of succeeding month. PERFORMANCE APPRAISAL Performance appraisal will be done by the respective superior at any point of time during the tenure upon every progressive achievement and failure. These continuous appraisals are recorded in the HR file of the employees. All employees will have opportunity in appraising the self and thereafter their immediate superior will appraise them. All the appraisals will have across the table evaluation with the appraiser and the respective departmental head upon which the grade shall be awarded to the appraise. In the event of disagreement on the appraisal, the final decision will be at the discretion of the director/ CEO of the organization. All appraised documents will be maintained under the custody of HR, and hence appraisers are requested to handover the completed appraisal to HR. INCREMENTS Increments from the salary drawn shall not be automatic, but shall be based on the following parameters every year during the month of the April for the employees. The financial result of the company Performance of the department The performance of the individual Regularity in the attendance and discipline

The employees who had joined during the middle of the year are also eligible for proportionate percentage of the increment based on the days/ months employed. LOSS OF PAY (LOP) Availing leave without prior notice / approval will result in loss of pay for the leave period. LOP will impact Cost To Company Leave without pay for any reason will impact the employees performance appraisal, which shall reflect in their salary component while processing their hike.


LEAVE OBJECTIVE: To track attendance for payroll adjustment and proceeding. GUIDELINES: Leave is calculated for the calendar year i.e. from January to December of the year. TYPES OF LEAVE CASUAL LEAVE (CL) Employees is eligible for 6 days per year, which is 0.5 day per month SICK LEAVE (SL) Employees is eligible for 6 days per year, which is 0.5 day per month. SL shall be credited during the beginning of every quarter (jan, April, July, and Oct) of the year. SL utilized more than 3 days shall be authenticating by medically certificate. EARNED LEAVE (EL) Employees are eligible for 12 days of EL per year, which is 1 day per month. MATERNITY LEAVE (ML) Only female employees are eligible for maternity leave and no paternity leave shall be extended to male employees. The allowable number of days of ML will be 84 calendar days for female employee. The above 84 days shall be scattered as pre-maternity leave and post maternity leave, each comprising of 42 days. FUNERAL LEAVE A maximum number of three days off with pay will be allowed when a death occurs in an employees immediate family.


OTHER BENEFITS PROVIDENT FUND/ PENSION SCHEME All employees irrespective of their designation are eligible for provident fund / pension scheme as and when the company is covered under the provisions of statute. The contribution towards employees provident organization scheme is based on the statutory compliance that is being there on force. ESI Employee earning a gross salary less than Rs. 7500 p.m. shall be eligible for ESI utilization. 1.75% of the employees gross salary shall be deducted from employees and the company will contribute 4.75% of the above stipulated employees gross salary inclusive of admin charge for the benefit of employee and their family medical expenses.




Marketing does not prevail here, instead International marketing since business is done across the boeder. DIRECT MARKETING Direct marketing means the manufcturer himself exporting the goods without middlemen. Meridian apparels are doing direct marketing. BUYER BEHAVIOUR The buyers are motivated to buy or give orders only by the samples sent by the exporter. If they are satisfied and have confidence, they will sanction the orders.. COMPETITORS There are many exporters in tirupur. All of them does not mean competitor, for it is the buyer who decides the exportee. If the buyer is satisfied with one exporter, then he holds him tight. Therefore it is in the hands of the exportees to maintain their power and name, where the quality plays a vital role. EXPORT DOCUMENTATION Export documentation is the use of various documentation in the export trade. Several documents encompass the entire gamut of export from the stage when the exporter receives an export order up to the final stage when he gets the refund of duty and the cash assistance and other incentives offered by the government. Export documents serve two purposes, viz. 1. Regularization of trade and 2. Facilitation of export operation. A number of documentation is used in export trade. It facilitates the flow of goods and payments thereof across the national boundaries.


Name of the Basic contents Documents Commercial Details of the invoice shipment

Purpose Seller bill for goods Serves as a preparation for other documents which derive information from it

Remarks Sets out terms of sale. Exporter prepares it. No standard format. Left to the seller

Proforma invoice

Provisional Temporary invoice Item by Item the contents of the packages or cases. (description of the goods, no., marks, measurement, etc.) Insurer undertakes to indemnify the assured againt damage for loss of goods due to risks/ hazards in transit Sent by exporter for the value of invoice goods for export through the banking channel for payment by importer on presentation

Packing List

For an anticipated shipment which may or may not take place. Prior to order, it helps to secure import License/LC Enables the receiver of shipment to carry out a check

Insurance movement of goods and avoid necessary unpacking

Marine Insurance policy / Certificate

In CIF contract of sale, the seller has to the requisite insurance.

It should satisfy the conditions of LC/ Sales contract

Bill of exchange or B/E

An unconditional order in writing addressed one person to another signed by the person giving it requiring the person to which it is addressed to pay on demand or at a fixed determinable future time a certain sum in money to or to the order of a specified person to bearer.

Looks like a cheque. Sight, draft is payable at sight i.e. on demand. Term draft is payable at a specified future date, for which the buyer writes acceptance across the face of the bill.


DOCUMENTATION PROCEDURE / STEPS INVOLVED IN DOCUMENTATION Step -1 Step-2 Step-3 Step-4 Step-5 Receiving the order from the importer it is called receipt of indent. Securing export license and quota by the exporter Lc form the foreign impoter to be received Preparing the goods for export Customs formalities Shipping bills, Docks and mates receipt, Bill of lading, ect. Invoice and Bill of Exchange sending to the importer Get the final remittance

Step-6 Step-7

The steps in details: 1) Order from importer First, the exporter receives an order from the foreign party. It gives the details and description of goods, shipping and insurance arrangement, other instructions regarding packing, delivery and payment, ect. The order may come from the party or through the indent house. It is one the basis of quotation given in response to a letter or enquiry. The importer likes to get a proforma invoice in response to an enquiry. 2) Export License and Quota Export is controlled by the central Government (under export control act) who issues a license through export trade controllers office. In olden days, each exporter is given a quota for export in view of the limited internal production. Since the Government is interested to promote the export trade, it is easy to get the export licence. The exporter should also undertake to surrender the foreign exchange earned through this business to RBI. Quota is a bilateral agreement between two countries for export and import for any item (garment) in a particular calendar year and quality will be fixed and all exports should not exceed this maximum limit. Now a days quota system are removed for exports. So, the exporter can easily make the transaction to foreign countries.


There are three categories of quotas. They are: a) Past performance Entitled system (PPQ) It is allotted on the basis of previous year performance i.e. value of export of the particular country category. b) Non quota exporters entitlement It is restricted to a minimum of value of Rs.20/- Lakhs. c) New investors entitlement (NIE) If an exporter invests a minimum value of Rs.50/- lakhs on a new machinery in a particular period. 3) Letter of credit On receipt of the order, we have to investigate the credit standing of the ordering party. It is to ensure a safe and secure payment from the distant party. Generally, LCs issued by bank is sought. It is given by the bank to its regular customer. It guarantees the payment from the bank issuing such a letter. When the buyer is new, LC is a must. 4) Preparing googs for export The order is now to be executed. Goods are collected from diverse sources as given in the order. Then the googs are properly packed and market. Marking helps the shipping company to identify the goods. The goods are now ready to be transported. These goods are insured. Even a certificate of origin is collected as it is to be sent to the importer in the bunch of other documents. The goods are given to the forwarding agent for completing costumes formalities. 5) Completion of customs and other formalities He should prepare the customs Chelan or shipping bill (in triplicate) and submit to custom authorities to compute the export duty. The exporter has to pay export duty prior to shipping. Once the duties are paid, the goods are shipped as per the shipping order. Goods on the dock make an exporter eligible for dock receipt and on the ship a mates receipt. Both these documents together enable to get a bill of lading. It is a document to the title of goods against which the foreign party will secure delivery.


6) Invoice and B/E Once the goods are dispatched, the exporter prepares an invoice given details of the goods, which helps the foreign party to exercise arrival control. Once Bill of exchange is drawn by the exporter, which is to be accepted either by the foreign party or its bankers on the bill being honored, the document are handed over to the foreign party. Bill of exchange. The accompanying documents are bill of lading, Certificate of origin, Consular invoice, insurance policy, invoice of bill. 7) Remittance Bill of lading enables the foreign party to get delivery. The party has to follow the import procedures of its own country. The party checks up the googds also. The final step is to arrange for payment. Generally , it is against acceptance of bill of exchange. In india, bill is drawn on the basis of LC and so money negotiated through the bank. Alternatively, the exporter can draw bill or draft against LC and the Indian Bank can make the payment to the exporter.




Yarn being purchased from various sources and knitting process will be carried out




The yarns purchased are of different varieties: Yarn Variety Polyester Poly cotton Combed yarn Semi-combed Carded Knitting is done on the requirement of the buyer. The buyers specifies while giving the order that a single piece (Ex. T-shirt) should be 280 gms i.e. GSM- gram square meter should be 280. Therefore, while knitting, they GSM will be kept at 220 because the weight of the cloth will increase while undergoing the other process such as dyeing, compacting, raising, ect.. The GSM can be adjusted according in the machine.. The yarn count and the respected weight table is given below: COUNTS 20s 30s 34s 40s WEIGHT 240-260(GSM) Rough cloth 150-180(GSM) Moderate Rough cloth 120-125(GSM) Soft cloth 100-110(GSM) Very soft cloth Dyed colour yarn White Black Navy Blue

Therefore, the deferent yarn count is very much necessary in order to prepare the needed cloth.

DIA-size of Role/Cloth The order is given as follows with product specification: Medium size T-shirt - 10000 pieces Large size T-shirt - 15000 pieces Small size T-shirt - 2000 pieces Then the foreman will plan out how much yarn is needed to make the given order. For medium size cloth yarn needed will be moderate, for small size cloth yarn needed will be more. In order to avoid wastage of cloth, its well plant before the production if cloth. 20DIA 28inch long (XL) Large 22DIA 24DIA 26inch long (X) 28inch long (M) Small medium

The machine used for knitting is FALMAC knitting machine. Its imported from Europe. There are totally five machine and each machine cost around Rs 18/- Lakhs. The manpower in the knitting section is Head Forman 1 Forman 4 Supervisor 2 Labour 28 The average production is 1500 kegs. Cloth per day (for all the machines). KNITTING CHAT
Knitting Division Receipt of Yarn Yarn Stock knitting dept

Knitting programme

Planning for the knitting Knitting

Daily Knitting prod. Efficiency

Grey Fabric Delivery to stores


Daily roll wise fabric stock at knitting

FABRIC TYPES Single jersey Single ribs Terry Interlock Fleece FABRIC RECEIPT

Grey Fabric receipt storage lot preparation In house knitting division out sourced Receipt of grey fabric Grey receipt report Grey preparation register

Preparation of lot

Forwarding the lot to processing along with the lot card

Grey stock report

BLEACHING The cloth got after knitting in grey colour is bleached using bleaching powder and is not required in the case of light colour cloth, in order to present a perfect colour, bleaching is required. DYEING Immature cotton or waxes present in the yarn will prevent the dyes to stick to the cloth. Therefore, they have to undergo acid wash i.e. washing the cloth with acid. After Acid wash the pores in the cloth will be clear and that when the cloth is dyed the dyes stick properly in the cloth so that the colour does not fade. Dyeing is done by adding normal salt and that sodium Chloride acts as a catalyst and then soda Ash (Sodium Carbonate (Na Co)) and the Dyes. Red, Blue, Yellow, Orange- theses dyes are mixed to give different shades, except Black. The colours are mixed percentage-wise. Dyeing is done for two different cloths polyester and cotton double dyeing. The machine used for dyeing FONGS. At a time, 750kgs of cloth can be dyed in the machine.

SQUEEZING After the cloth is being dyed, it has to squeezed i.e. the water in the cloth has to be squeezed is done with the help of a machine named BALLOON PADING DYEING CHAT

Daily Planning

Grey cost Receipt of grey cost Approved ( Lale dip option)

Verify for the GOTS Approved dyes and chemicals

Receive for the bulk Loading of fabric into the machine Preparation of chemicals & dyes for the processing Cleaning of uebbel before loading



Dyeing long book


Finishing long book

Forwarding to stock ware house


DYING After squeezing the cloth has to be dried, using a dryer machine. In short, the process of dyeing is



Since the cloth type differs, they have to be dyed at different degree. For polyester cloth, ternix dyes are used and they are dyed at 130 C heats for half an hour, cooled down and then dried. For cotton cloth, Coba dyes are used and they are dyed at 60C for two hours, cooled down and dried. Water is very much needed for dyeing and that there is a scarcity of water at parvathy dyeing. Therefore, water is brought in Lorries from the near villages. Around 40 lorry thanks of water are being consumed for dyeing daily. The cost of 1 track loads water is Rs.75 on regular period and Rs.225/- during water scarcity. In order to avoid water pollution, Effluent Treatment plant (ETP) is functioning to purify the drainage water using lime, Sulphate etc. The cost involved in this operation is around Rs.6000/- per day.


COMPACTING To control GSM of a fabric To control shrinkage of fabric To get a suitable diameter This company is having one compacting machine, which is imported from Graman. The cost of the machine is Rs.1 crore. This unit is situated in perundhurai, where 40 workers are working. EMBROIDERY Each and every design is done only according to the need of the buyer. The buyer will given the design format with full details in it. Details about the colour and even about the number of stitches. These details are then loaded in the computer named punching. The software used for this is COMPUCON. Then they are recorded in CDs. There are two types of Embroidery-Applic and stitches. PROCESS The part of the garment where the embroidery is to be done is framed using the frame. Beneath the cloth, piece of foam is being placed in order to avoid the tearing of the cloth. The frame is now placed in the machine. The machine has a system where the cassette in which the design recorded is inserted to the system and it is switched on. According to the number of colours, the threads are being placed and are needled. When any one of the threats is cut off, the machine operation will stop and a red light will indicate the place of thread cut. The process will come to an end automatically. Threads are bought for stitching the garments according to the order. The brand name threads are used. They are: Natasha threads Phoenix threats Oasis threads and Arrow threads All these are bought from Bangalore. Around 750 pieces are embroidered every day. Since it is a continuous process, Air condition is very much required to this machine.



PRINTING The different types of printing being done in this action are plain. Chest Print, photo print, reactive print, discharge print, Garment wash, Stone wash print, Transfer print, Acid wash and all over print, ete. They are mainly doing chest printing. PRINTING PROCESS First process is film exposing here they are using frames and nylon or polyester skins for exposing the film. The photo sensitive Emerson is coated on skin. The film exposing may be manual or using machineries. Design drawn by black colour. The black colour will be appeared, that is design of the printing.

Artist design

Develop the frame

Film exposing

Colour alteration

Printing the design


TYPES There are two types of printing available that are, Manual (they are using 12 colour machine) Automatic (they are using MHM machine) They are using two types of machine all hours machine and S-type machine. In using all hours machine they are printing 500 pieces per hour. Using S-type machine they are printing 700 pieces per hour. CURING MACHINES For dyeing the printed garments. Cost of the machine is around Rs. 8 lakhs. SAMPLING The company has a separate department for sampling. In merchandising department, they develop new styles and design for buyer approval. Sampling department gets the requirement of the garment from merchandising department. This specification is given form of measurement chart, which is given by the buyers, date, style, fabric specification, measurements, size of samples, no of pieces requested, due date for samples and remarks. The buying agent may approve the sample and on his approval the production process starts. On the other hand the buying agent may not approve the sample and may need some alterations. The sampling department act as a boon to the company as it is not feasible to produce Garments in smaller lots due to economics of scale. Quality is also taken care of, has the merchandisers order the fabrics. The merchandisers have a constant follow-up with the sampling units and communicate any changes needed and additional specification if any. In sample department a separate file is maintained for each pattern is failed for feature reference. The merchandisers visit the sample units once a week to follow up the sample and to solve any problems or queries. The buyers approval depends on the sample, to the large extent. So the responsibilities of the sampling departments are high.


Stores Department is located next to the accounts department and that only one person is in-charge of it. Here, raw material and other packing material are stored. Bin card system used in store department for issuing the material from the store to production department. How much used material for production line entered in bin card. The lists of material that are stored are: Strap roll Gum tape Cello tape Bullet pin Main label Wash care label Size label Twisted rope main tag Buttons Poly Bag stickers Twill tape Piping rope Barcode tag Ellipse label Poly bag Hanger stickers Hanger Photo layers DC makers / Taylor chalk Imported tags and labels Elastics HM role Elastic strings Recycle stickers Zips Carton box


STORES PURCHASE PROCEDURES They are using RAMCO software for preparing purchase order and GRN (goods received notes). They are following credit purchase system. 1. 2. 3. 4. Requisition should be given by the user departments Purchase orders are made by merchandiser and the stores keeper The supply of materials to the unit Bill checking and passing on to accounts department for payments.

RECORDS MAINTAINED 1. Suppliers guide The orders placed are noted down. There are about 87 suppliers. 2. Record Note The details of purchase orders are maintained 3. Delivery Note The details of goods issued from the stores 4. Stock maintenances The details of stock are noted down. NEEDLE CONTROLLER The person needle controller issues the needles to production line and maintains some records for issued needles. The records are, Broken needle daily log sheet. Metal tool log sheet. TYPES OF NEEDLES DC Over lock Catalo Singer Flat lock




Superior quality fibre, neat spinning, durability, colour fastness, requisite elasticity, etc., are some of the features that competently market our range of our knitting yarns, cotton yarns, cotton combed yarns in the domestic as well as international marketplace. Meeting the stringent application requirements of varied industries, these combed knitting yarns comply with the requisite industrial standards. Available in multiple packaging options these knitting yarns cater to specific needs of textile, garment, weaving and many other industri. Yarn is a long continuous length of interlocked fibers, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving and ropemaking. Yarn is any fiber used to construct a fabric. Natural Fibers The most common natural fiber is cotton, which is typically spun into fine yarn for mechanical weaving or knitting into cloth. Synthetic Fibers A number of synthetic materials are also commonly made into yarn, chiefly acrylic. All-acrylic yarns are available, as are wool-acrylic blends in various proportions. Some other synthetics are available as well; yarn designed for use in socks frequently contains a small percentage of nylon, and numerous specialty yarns exist. Yarn is manufactured by either a spinning or air texturizing process. Yarn manufacturing was one of the very first processes that was industrialized.






Institutional training is very essential for the successful completion of MBA curriculum. In the institutional training learned and gathered the information about the industry, Industry leaders, Market share, Market performance, Estimations of the earnings, Expected growth of the industry, Scope of the industry for the industry profile and collected the information regarding the companys Vision & Mission, Market share in the industry, , Policy statement of the company, The organizational hierarchy, detailed description of the various departments of the company including the departmental hierarchy, Products & Services and Financial performance of the company


JAY JAY MILLS (INDIA) PRIVATE LIMITED SUPPLIER LIST Yarn suppliers 1. Adhisankara spinning mills (P) Ltd 2. Sivaraj spinning mills (p) Ltd 3. Sudhan spinning mills (p) Ltd 4. SSM fine yarns 5. JC traders 6. Palaniandavar enterprises ( Reliance dealers) for polyster cloth 7. S.V.Textile mills 8. Rajvir industries 9. Prabhu spinning mills 10. Sri vignesh yarns 11. Royal yarns 12. Everyday spinning mills 13. Armstrong spinning mills 14. KPR spinning mills Accessories suppliers 1. Armstrong spinning mills 2. Groz Beckert supply needles 3. Freudenberg noncuouens india pvt Ltd 4. SSm fine yarns 5. Eureka forbes 6. Wellknow syndicate (man parts, gen purchase) 7. Sree sakthi traders (embroidery thread) 8. S.V. prints (printing stationary) 9. Ramsons 10. Auery Dennison (major Labels, tag list, size wrappers) 11. Bangalore sale corporation 12. Muthu quality labels


GUPTA, C.B., Human resource management, New Delhi, Sultan Chand & Sons 2004 Khanka, S.S., organizational behaviour, New Delhi, S. Chand & Company Ltd, 2000. Memorial, C.B., Personnel Management, New Delhi, Himalayan publishing house, 2001.