A

PROJECT REPORT
ON
CHIRIPAL INDUSTRIES &
NANDAN EXIM PRIVATE LIMITED

SUBMITTED TO

SOM-LALIT INSTITUTE OF
BUSINESS ADMINISTRATION

TOWARDS THE PARTAL FULFILLMENT OF

SECOND YEAR B.B.A PROGRAMME

SUBMITTED BY:-
Prakash Asalaliya
S.Y B.B.A Sem-4
Div:-A
Roll No.4
 CERTIFICATE

I,Prakash Asalaliya, hereby certify that the work which is being presented in this
Project Report in partial fulfillment of the requirement of BBA programme and
submitted to Som-Lalit Institute of business Administration is an authentic
record of my own work carried out during fourth semester. The matter
presented in this Project Report has not been submitted by me for the award of
any degree elsewhere.

Faculty in charge Director

[Mr. Parin Shah] [Mr. K.J. Patel]

 ACKNOWLEDGEMENT

This project is done as a semester project, as a part of Gujarat

University BBA program. I am really thankful to my instructor Prof Parin
Shah, Som Lalit Institute of Business Administration, Ahmedabad, for his
valuable guidance and assistance, without which the accomplishment of the
task would have never been possible. I am also thankful to him for giving this
opportunity to explore into the real world and realize the interrelation of
business and economics, without which a society can never progress.

It is my great pleasure to have an opportunity to discuss some ideas

and put this report before you. I am thankful to numerous people who game
me their valuable time and suggestions in writing this report.
Table of Contents
INTRODUCTION...........................................................................02
Name and Address of Organisation..............................................02
Background of The Company.......................................................02
History Of The Company...............................................................02
Introduction To The Founding members......................................03
Vision And Mission Of The Company...........................................05
Organisational Chart....................................................................05
PRODUCTION DEPARTMENT........................................................06
Production Classification.............................................................06
Production Process......................................................................07
Denim..................................................................................07
Synthetic Yarn(polyester yarn)............................................11
HUMAN RESOURACE DEPARTMENT.............................................13
Personnel policies........................................................................13
Recruitment.................................................................................13
Training and Development..........................................................14
MARKETING DEPARTMENT..........................................................15
FINANCE DEPARTMENT................................................................16
Statement of Assets and Liabilities.............................................16
Share Capital..............................................................................18
SOCIAL RESPONSIBILITY...............................................................19
AWARDS AND ACHIEVEMENTS....................................................21
SWOT ANALYSIS..........................................................................23
PEST ANALYSIS.............................................................................25
5 FORCES ANALYSIS.....................................................................27
BCG ANALYSIS.............................................................................30
CONCLUSION...............................................................................31
1
 INTRODUCTION

Name and Address of Organisation

The name of the organization is “Chiripal Industries & Nandan Exim Private Limited.”

Address:-

Plant & Regd. Office

Survey No. 198/1 & 203/2.,
saijpur-gopalpur,
Pirana Road,
Piplej,Ahmedabad – 382405

Background of The Company

The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labour in textiles. The textile
industry continues to be the second largest employment generating sector in India. It offers
direct employment to over 35 million in the country. According to the ministry of India the
sector contributes about 14% to industrial production, 4% to the country's GDP and 17% to
the export earnings. The share of the textiles in total exports was 11.04% during April-July
2010, as per the Ministry of Textiles. It is estimated that India would increase its textile and
apparel share in the world trade to 8% from the current level of 4.5% and reach US $80 billion
by 2020. During 2009-10, Indian textiles industry was pegged at $55 billion , 64% of which
services domestic demand.

Government of India passed the National Textile Policy in 2000.

History Of The Company

The company is promoted by Shri Ved Prakash Chiripal and Brijmohan Chiripal on 9
2
August 1994 as private limited company for manufacturing, trading and exporting the textile
product. Though it was incorporated in 1994, it commenced

Its actual operation in 1999, since the company was growing steadily and successfully it
changed its company name to Nandan Exim Ltd on 16, January 2004.

The company is managed and controlled by Shri Ved Prakash chiripal who has a wide
experience in the field of textile market. The company has well laid down the organizational
structure and delegation of authority attech level.

Pursuing the plan of expansion, Chiripal group laid the foundation of producing 100%
cotton wear and blended bottom wear fabrics. And to make the most modern and versatile
denim manufacturer project was called as NANDAN EXIM LTD.

Nandan Exim Ltd is housed with one of the most sophisticated weaving plant and other
facilities to manufacture good quality of denims and khakhi and cotton fabric.

The plant manufactures 100% cotton fabric, denim fabric and denim keeping in tune with
the fashion trend and market demand.

Also manufactured are fabric of different weaves, dyes, combination of yarn, weights,etc.
These fabric find application in various garments and outfit. The range of fabric includes twills,
strech, denim, bull denim, etc.

The product manufactured by Nandan Exim are primarily marketed in sufficing the need
of leading customer of the company and exports to the developed markets of west and south-
east Asia, Europe and USA

The product manufactured by Nandan Exim are marketed to the international as well as
the domestic market within a short span of a year. It is able to market to the renowned
national as well as the exporters.

It has a presence over various customer group in international arena like garments
manufacturer, importer and exporter and to the renowned brands.

Introduction To The Founding members

Mr. Vedprakash Chiripal is the Chairman and Managing Director of Chiripal Industries Limited.
He has obtained his Bachelor of Commerce degree from Calcutta University. He has an
experience of 37 years in the textile industry. Mr. Vedprakash Chiripal is also Director in Nova
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Petrochemicals Limited and Chairman of Nandan Exim Limited. He is trustee of Chiripal
Charitable Trust, Udgam Trust (Udgam High School), Agrawal Seva Samiti, Maharaja Agrasen
School, Agrawal Seva Sansthan and Agroha Vikas Trust. He is known for his financial acumen
and he drives the Chiripal Group with his insights and vision. He oversees strategic expansion
initiative, business development and supervises the finance of the group.

Mr. Jaiprakash Chiripal is the Whole-Time Director of Chiripal Industries Limited. He has
obtained his Bachelor of Commerce degree from Gujarat University. He has an experience of
22 years in the textile industry. He is also a Director of Chiripal Enterprise Limited. He is a
trustee of Chiripal Charitable Trust. He plays the key role in expansion and implementation of
projects. He is a key person for overall supervision of policies laid down by the Board actively
contributes in recruiting quality Human Resource.

Mr. Jyotiprasad Chiripal is also a Director of Chiripal Industries Limited. He has obtained his
Bachelor of Commerce degree from Gujarat University. He has an experience of 25 years in the
textile industry. He is Managing Director of Vishal Fabrics Private Limited.

Mr. Brijmohan Chiripal is the Managing Director of the Chiripal Industries Limited. He is a
graduate in Chemical Engineering and has almost 20 years of experience in textile.

Mr. Bharat Bhushan Agarwal is CEO of Vishal Fabrics Private Limited. He is a graduate. He has
vast experience of 30 years in the textile industry. His expertise is in overseas marketing of
fabric and home-furnishing and also new customer development for our processing division.

Mr Deepak Chiripal is the Chief Executive Officer of Nandan Exim Limited. He has been
developing the export business and domestic market of the company and is also in charge of
overall administration and supervision of the production and operations department.

Mr. Vishal Chiripal is CEO of Chiripal Industries Limited. He holds a Bachelors Degree in
Business Administration from K.S School of Business management, Ahmedabad and Adelphi
University, New York. He also holds a Masters Degree in Business Management [Marketing]
from Clark University, Boston,USA. He has been a key person in developing new areas of
business and exploring new markets.

Mr. Rajesh Bindal is Executive Director of Chiripal Industries Limited. He has obtained his
Bachelor of Commerce degree from Gujarat University. He has an experience of 14 years in the
textile industry. His expertise is in marketing and new customer development for our
processing division.

Mr Amit Bindal is a managerial key person of Chiripal Industries Limited. He is a commerce

graduate from Gujarat University. He has an experience of more then 10 years in the field of
Textiles. 4
 Vision And Mission Of The Company
To provide continuous value through innovation, expertise, excellence and attain highest
level of consumer satisfaction.

Their aim is to exceed the expectation of the customer in terms of quality and achieve
the goal of being preferred supplier. The responsibility therefore rests with each department
and ultimately with each individual employees.

ORGANISATIONAL CHART
TRUST

CHAIRMAN

MANAGING DIRECTORS

DIRECTORS

GENERAL MANAGER

SALES PRODUCTION ACCOUNT MARKETING

DEPT. DEPT. DEPT. DEPT.

FOREMEN FOREMEN FOREMEN FOREMEN

This organizational structure is the formal arrangement of the jobs within the organization.
This structure divides work to bee done into specific jobs and of the department. It clusters
jobs into unit. It divides work activities into separate job task. Individual employees specialize
in doing part of an activity rather than the entire activity.

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 PRODUCTION DEPARTMENT

PRODUCTION CLASSIFICATION

Chiripal Group industries is manufacturing many types of products- Shirting Fabrics,

Synthetic Fabrics, BOPP Films, Cotton Hosiery, Poly Knits, Bottom weight Fabrics, Denims,
Polar Fleece, Flock Fabrics, Bed sheets, Embroidered Fabrics, Chemical Products etc.

In Nandan exim they produces Denims and Chiripal industry produces Synthetic Yarns
for Denims.

DENIM
Denim is a durable cotton twill textile, typically used to make jeans, overalls, and other
clothing. To create denim fabric, the weft (horizontal threads) passes under two or more
warps (vertical threads) threads. This process makes diagonal ribbing of denim that
distinguishes it from cotton duck, another twill fabric.

The denim fabrics of Nandan Exim Ltd are regarded for its premium quality. The
composition of these fabrics consist of 100% cotton, cotton spandex, cotton poly, cotton poly
spandex, cotton modal, cotton tencel etc. The stretch fabric is generally known for the comfort
that one gets while wearing. With stunning colours of this fabric it is popular among the
people of all ages. They stand top among the stretch denim manufacturer in India. They are
also one of the major suppliers of the denim fabrics.

SYNTHETIC YARNS(polyester yarn)

Polyester is a category of polymers that mainly comprises of Polyethylene Terephthalate
(PET). Polyester is a synthetic polymer made from PTA and MEG. Polyester Yarn is the main
products in the polyester category. Almost 40% of the world production of polyester is directly
used to make Polyester Yarn.

Polyester yarn is made by direct spinning of PTA & MEG. It also made by spinning PET Chips
which is also a bi product made from PTA & MEG. Some of the world's largest PTA products
are British Petroleum, Reliance, Sinopec, Sk-Chemicals, Mitsui and Eastman Chemicals.

6
PRODUCTION PROCESS

DENIM
The production process of manufacturing denim is as follow:

Spinning

Warping

Rope dyeing

Sizing

Weaving

Finishing

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Spinning

The initial stage of denim production is Opening and Blending. Opening begins with baled
cotton fiber being separated into small tufts. A blend of cotton fibers is made on each opening
line. These bales are selected using USDA High Volume Instrument (HVI) data, and PCCA's
unique computer blending software produces optimal yarn strength.

The initial stage of denim production is Opening and Blending. Opening begins with baled
cotton fiber being separated into small tufts. A blend of cotton fibers is made on each opening
line. These bales are selected using USDA High Volume Instrument (HVI) data, and PCCA's
unique computer blending software produces optimal yarn strength.

The drawing process produces a single, uniform sliver from six card slivers. The additional
blending, paralleling of fibers and cleaning in this process produces a sliver for Open End and
Ring Spinning. For Ring Spinning, however, the sliver must pass through an additional process
called Roving.

Cotton Fibers are formed into a yarn by centrifugal action in Open- End Spinning. Individual
fibers are laid down in the groove of a fast spinning rotor and twisted into yarn. After the
cotton fibers are spun into yarn, the yarn is wound into a large package.

Warping

In the warping process, individual strands of yarn are removed from yarn packages prior to
being gathered into a rope form suitable for dyeing. Individual strands of warp yarn (the
length-wise yarn in a fabric) are gathered into rope form and wound onto a log, thus forming a
ball warp.

Two rope-dye ranges enable ACG to produce pure indigo, sulfur bottom, sulfur top, and
colored denim yarn. The yarn goes through scour/sulfur dye, wash boxes, indigo dye vats, over
a skying device (to allow oxidation to occur), through additional wash boxes, over drying cans
and then is coiled into tubs which are transferred to the Long Chain Beaming process.

Long Chain Beaming separates the dyed yarn into individual strands, parallels the strands, and
winds them onto a large section beam in preparation for Slashing. The Slashing process takes
section beams, coats the yarn with a starch/wax solution, and winds the yarn onto a loom
beam.

A starch/wax solution is applied to enable the yarn to withstand the abrasion and tension it
will be exposed to in Weaving. The solution also reduces the fuzziness of the yarn, thus
8
eliminating a pilling effect in Weaving.
Weaving

The weaving process interlaces the warp (length-wise indigo dyed yarn) and the filling (natural
colored cross-wise yarn) producing 100 percent cotton denim in a variety of weights and
styles.

Finishing

The Finishing Range brushes and singes the cloth prior to the cloth entering a finishing
solution. The cloth is then pulled to the proper width, skewed, dried and rolled for the next
process.

The Compressive Shrinkage process reduces the amount of shrinkage in the warp or
lengthwise direction that a finished garment will have after laundering. As the cloth enters the
machine, it is moistened with water and then fed between a thick rubber belt and a heated
steel cylinder where approximately 14 percent shrinkage in the warp yarn takes place. After
drying, the cloth is rolled onto an "A" frame.

Every yard of cloth must pass rigid inspection standards. An inspection process utilizes an I-Tex
200 model Elbit Vision System (EVS), an automatic fabric inspection system, that evaluates the
quality of the denim by identifying visible defects that result during spinning, weaving, dyeing
and finishing at Little field. This system can detect defects as small as 0.5 mm on fabric up to
68 inches wide at speeds up to 42 yards per minute. As denim is fed through the system, three
cameras photograph the back of the fabric, and four cameras photograph the front. These
cameras continually photograph the fabric and save only the frames containing identified
defects. They also log all pertinent information such as lot number and the exact location of
the defect on the fabric. This information then is fed to the cutting tables where computers
help locate the defect. This high-tech system increases fabric inspection efficiency and reduces
garment seconds. At the 3/1 process, the cloth is measured and cut into rolls of proper quality
and size. Each roll is carefully weighed to ensure correct weight and yardage per roll.

After the finishing is done the inspection of denim is done and then it is dispatch according to
the order of the customer.

Quality control
Quality is of prime importance in any aspect of business. Customers demand and expect value

9
for money. As producers of apparel there must be a constant endeavor to produce work of
good quality.

In this industry quality control is practiced right from the initial stage of sourcing raw materials
to the stage of final finished garment. For textile and apparel industry product quality is
calculated in terms of quality and standard of fibers, yarns, fabric construction, color fastness,
surface designs and the final finished garment products. However quality expectations for
export are related to the type of customer segments and the retail outlets.

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 SYNTHETIC YARNS(polyester yarn)
The production process of manufacturing is as follow:

Polymerization

Drying

Melt spinning

Drawing

Winding

Polymerization
To form polyester, dimethyl terephthalate is first reacted with ethylene glycol in the presence
of a catalyst at a temperature of 302-410°F (150-210°C).

The resulting chemical, a monomer (single, non-repeating molecule) alcohol, is combined with
terephthalic acid and raised to a temperature of 472°F (280°C). Newly-formed polyester, which
is clear and molten, is extruded through a slot to form long ribbons.

11
Drying
After the polyester emerges from polymerization, the long molten ribbons are allowed to cool
until they become brittle. The material is cut into tiny chips and completely dried to prevent
irregularities in consistency.

Melt spinning
Polymer chips are melted at 500-518°F (260-270°C) to form a syrup-like solution. The solution
is put in a metal container called a spinneret and forced through its tiny holes, which are
usually round, but may be pentagonal or any other shape to produce special fibers. The
number of holes in the spinneret determines the size of the yarn, as the emerging fibers are
brought together to form a single strand.

At the spinning stage, other chemicals may be added to the solution to make the resulting
material flame retardant, antistatic, or easier to dye.

Drawing the fiber

When polyester emerges from the spinneret, it is soft and easily elongated up to five times its
original length. The stretching forces the random polyester molecules to align in a parallel
formation. This increases the strength, tenacity, and resilience of the fiber. This time, when the
filaments dry, the fibers become solid and strong instead of brittle.

Drawn fibers may vary greatly in diameter and length, depending on the characteristics
desired of the finished material. Also, as the fibers are drawn, they may be textured or twisted
to create softer or duller fabrics.

Winding
After the polyester yarn is drawn, it is wound on large bobbins or flat-wound packages, ready
to be woven into material.

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 HUMAN RESOURACE DEPARTMENT

Personnel policies

Human resource policies are the formal rules and guidelines that businesses put in place to
hire, train, assess, and reward the members of their work force. These policies, when
organized and disseminated in and easily used form—such as an employee manual or large
postings—can go far toward eliminating any misunderstandings between employees and
employers about their rights and obligations in the business environment. The total no of
working in Nandam exim are around 5000.

Work timming:

Shift-1 8:00 am to4:00 pm

Shift-2 4:00pm to12:00 am

Shift-3 12:00am to 8:00am

The workers are provided with the ear plugs to prevent their ears from the noise of the
weakening machine. Every employee are provided with insurance by d company.

Recruitment
Recruitment Refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job. At the strategic level it may involve th development of an employer
which includes an 'employee offering’.

The company recruits employees through following process:

 Identifying vacancies

 Prepare job description and person specification

13
 advertising the vacancy

 Managing the response

 Short-listing

 Arrange interviews

 Conducting interview and decision making

Training and Development

The type of training and development which Nandan Exim provide to its employees are as
follow:

 On the job training: Employees learn how to do work simply by performing them

 Job rotation: Employees work at different jobs in a particular area, getting exposure

 Mentoring and coaching: Employees work with experienced worker to get information.

 Workbook/manuals: Employees refer to training workbooks and manuals.

 Classroom: Employees attend. Lectures.

The employees are provided with various safety measures, various schemes,they are
provided leadership, medical help is also given to employees. In this way employees
development take place.

14
 MARKETING DEPARTMENT

Organizations exist for one purpose – to meet human needs. Thriving organizations do that
exceedingly well. Venerated organizations have managed to meet evolving human needs over
a long period of time. All of an organization’s revenues and profits result from one thing –
customers who are willing to pay money for products and services that meet their needs. Any
brand management initiative, any marketing initiative, and indeed any business or
organizational initiative must start with a solid understanding of the customer.

Organization didn't do any advertising for product (Denim) and they direct meet their
customers and take order from them.

Nandan denim have a strong dealer network spread across the world to enable easy and
timely availability with direct contacts available in Hong Kong, Bangladesh, Egypt, Peru,
Panama, Columbia and Korea.

It take pride in supplying denim fabric to the best known international brands like :-

 Polo
 Levis
 Arrow
 Ralph Lauren
 Calvin Klein
 Target
 Armani Exchange
 Tommy Hilfiger
 Ann Taylor
 Spykar
 Pepe jeans

And there are many more brands where they have target their customer.

15
 FINANCE DEPARTMENT

NANDAN DENIM LIMITED

STATMENT OF ASSETS AND LIABILITIES AS AT 30th SEPTEMBER, 2016

Sr. Particulars As at As at
No. 30.09.2016 31.03.2016
Unaudited Audited

A EQUITY AND LIABILITIES

1 Shareholder's funds:
(a) Share Capital 48,04,90,560 45,54,90,560
(b) Reserves and Surplus 3,47,65,23,065 2,67,88,47,461
(c) Money received against share warrants - 25,00,00,000
Sub Total of shareholder's fund 395,70,13,625 3,38,43,38,021

2 Share Application Money pending allotment - -

3 Non Current Liabilities

(a) Long term Borrowings 4,06,98,59,303 3,18,24,25,453
(b) Deferred Tax liabilities (net) 19,99,73,550 22,89,23,384
(c) Other Long Term Liabilities - -
(d) Long Term Provisions - -
Sub Total of Non Current Liabilities 4,26,98,32,853 3,41,13,48,837

4 Current Liabilities
 (a) Short Term Borrowings 1,64,82,46,018 1,46,2072,308
(b) Trade Payables 66,87,88,623 84,47,68,112
(c) Other Current Liabilities 90,21,94,215 91,39,61,488
(d) Short Term Provisions 3,13,43,919 1,60,81,4064,
Sub Total of Current Liabilities 3,25,05,72,775 3,38,16,15,973

Total of EQUITY AND LIABILITIES 11,47,74,19,254 10,17,73,02,832

B. ASSETS
1 Non Current Assets
(a) Fixed Assets 6,76,88,53,175 5,70,22,90,911
(b) Non Current Investments 7,32,32,399 7,32,32,399
(c) Deferred Tax Assets (net) - -
(d) Long Term Loans & Advances 38,90,10,679 9,38,25,244
(e) Other Non Current Assets 3,28,21,143 2,17,28,171
Sub Total of Non Current Assets 7,26,39,17,397 5,89,10,76,725

2 Current Assets
(a) Current investments - -
(b) Inventories 1,60,97,49,732 1,95,10,63,920
(c) Trade Receivables 1,62,22,43,722 1,22,24,15,642
(d) Cash and cash Equivalents 51,61,38,429 64,90,23,608
(e) Short Term Loans & Advances 46,53,69,974 46,37,22,937
(f) Other Current Assets - -
Sub-Total of Current Assets 4,21,35,01,858 4,28,62,26,107

TOTAL ASSETS 11,47,74,19,254 10,17,73,02,832

17
SHARE CAPITAL

[A] Authorised:
100000000 ( Previous Year 100000000 ) Equity Shares of Rs. 10/- (P.Y. Rs. 10/-) each
As at 31.3.2016 – Rs.1,00,00,00,000

[B] Issued, Subscribed & Paid-up Capital:

45549056(Pr. Year 45549056) Equity Shares of Rs. 10/- (P. Y. Rs. 10/-) each fully paid up
As at 31.3.2016 – Rs.45,54,90,560

The following banks are provided loans and financial support to Chiripal :-
 Stat Bank of India
 Punjab national bank
 IDBI
 Indusland Bank
 Oriental Bank, etc.

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 SOCIAL RESPONSIBILITY

Social Responsibility
Corporate Social Responsibility is a form of corporate self-regulation integrated into a business
model. CSR is about capacity building for sustainable livelihoods. With the same objectives,
Chiripal Group gave birth to Chiripal Charitable Trust. The CSR activities of the Group are
guided by the vision and philosophy of the Chairman, Mr. Vedprakash D. Chiripal, who got this
inspiration from his parents. He enunciated the value of trusteeship in business and laid strong
foundation for its ethical and value-based functioning. As a responsible "Corporate Citizen",
the Group is engaged in various social welfare activities. Through its social commitment, it
intends to promote initiatives, for educational and health awareness amongst the weaker
sections of the society.

An effort towards saving lives

Every year, it organise an annual blood donation camp with support from Prathma Blood
Centre, at the corporate office and all over the Group units, where thousands of units of blood
is collected, through voluntary donation and active participation of our staff members and
workers.

Helping people – our employees and the community

Every year, as the pilgrims of Dakor temple pass through Dakor, the trust organise a rest camp
for them where hot water bath, massages and meals are served to over 10-12 lakh pilgrims. In
addition to this, as a regular practice, the trust and the companies run employee welfare
schemes for the benefit of our employees and their families.

EDUCATION
Nandan Denim plans to develop education facilities in villages around its plants to provide
high quality education to village children at affordable cost.

Sanitation
Nandan Denim’s CSR plan also includes development of sanitation facilities in villages around
its plants.
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Green Belt Development
Nandan Denim has committed itself to develop green belt at its factories. We have already
planted over 25000 trees and the counting continues with each day

An open agenda
Unlike other corporates, at Nandan we keep re-visiting our CSR agenda to assess and develop
the model with the change in the time. The above items are assessed as immediate need in
the surrounding areas and the list gets updated on regular basis .

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 AWARDS AND ACHIEVEMENTS
Awards and achievements are as follow:

 Residential project with 3 BHK luxurious flats "Shanti Botanica" has been launched in
Gandhinagar.

 Incorporated Shanti Juniors Pre-schools, Shanti Asiatic School and Shanti Business School.

 As an effort of the group to contribute towards social cause, Shanti Educational Initiatives
(SEI) has been conceived.

 Three units manufacturing Warp knit fabrics, PP woven sacks and corrugated boxes started
operations in our textile park - Vraj Integrated Textile Park (VITP).

 Captive Power Plant of 25 MW capacity has become operational in Piplej.

 53 Tsudakoma Airjet looms have been annexed in group companies to enhance production
capacity of Bottom-weight and Denim fabrics.

 Production capacity of flock fabrics have been scaled up with the commissioning of a state-
of-the-art fully integrated coating/flocking line from Europe.

 Substantially enhanced processing capacity by installing Reggiani Printing Machine, Tong

Geng Jet Dyeing Machine, additional CBR & CDR line.

 Chiripal launches branded bedsheet range ‘FRESHIA’. Commencement of CBR, CMR and CDR
Production.

 Nandan Exim Ltd. receives Certificate of Merit from SRTEPC for substantial growth in exports.
Nandan Exim Ltd. brought Right issue of Rs. 45.5 crore to expand denim capacity and setup
Captive Power Plant. Chiripal sets up ‘Vraj Integrated Textile Park’ in Ahmedabad.

 Acquired all the aspects of M/s Arunoday Mills Ltd. under SARFAESI Act from IDBI Bank.

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 Fortune India presented award to Nandan Denim Limited for got rank 38 among the Fortune
India 500 (2016) companies for wealth creation over 3 years. And over 5 years, it ranks 42 nd
with 45.21% CAGR increase in market capitalisation as of April 2016.

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 SWOT ANALYSIS

Strenghts

 Youth (15-29 year olds) with higher spending power than previous generations, which make
26% of the consuming population.

 Increasing usage of denim products by women and youth in smaller cities and rural India.

 NDL has successfully developed a strong client base in the domestic market, including
established apparel (such as Spyker, Mufti, Gini & Jony and Color Plus)

 It is an independent and self reliant industry.

 They have direct contacts available in Hong Kong, Bangladesh, Egypt, Peru, Panama,
Columbia and Korea.

 NDL plant is located in Gujarat, which is a textile hub of India. It has easy access to the raw
material like cotton as Gujarat meets 70% requirement and provides skilled & unskilled labour.

Weaknesses
 Industry is highly dependent on cotton. Because of uncertain raining, the cotton
manufacturing are unstable.

 NDL have no own brand. They manufacture denim for other Brands

 Lack of technological development that affect the productivity.

 Exports are less.

 Manufacturing only one type of denim , no segments and developing

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Opportunities

 Developing the product, diversification to cater global needs and present with new types.

 Greater investment and FDI opportunities are available.

 Increase international market

 They have opportunity to make their own brand and manufacture own clothes.

Threats

 Competition from other developing countries.

 Old fashion in rural area.

 Fluctuation in raw material prices and foreign currency.

 Change in government policies.

 Increase in labours costs and their demands.

 Indian Textile Industry is highly fragmented industry.

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 PEST ANALYSIS

Political Aspects

An Industry will not be able to gain success, good reputation and trust if it will not consider
legal and political sector as part of their strategy. Political and legal sectors include the needs
of the company to follow the given policies and regulations of the government in order to be
considered as legal and authorized business company. In this manner, industry should be able
to consider political and legal aspects so as to show that they value the policies and
regulations of the government in any of the business operations.

- Tax policy
- Employment laws
- Political stability
- Environmental regulations

Economic Aspects
It is important that apparel must also give enough attention to its economic stability. The
economic goal of a certain industry is like an axis in which other objectives or goals are
revolving. The economic factor involves the context in which an industry belongs, i.e. the
configuration of the competition in which a company operates the active demand of the
products, general economic condition of the nation or region, conditions in relation with other
industries, and the situation of the resource markets.

- Economic stability
- Economic growth
- Interest rates
- Inflation rates
- Exchange rates
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Social – cultural Aspects
- Population growth rate
- Age distribution
- Career attitudes
- Consumer behavior
- Religion and culture itself

Technological Aspects
- Distribution and communication channels
- Technology incentives
- Automation
- Rate of technological change
- Environmental and ecological aspect
- Barriers to entry
- Production level

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 5 FORCES ANALYSIS

Competition
 Nandan Denim is India's fastest growing denim companies.

 NDL is 5th largest integrated denim manufacturer in the world. Second largest Denim
manufacturing capacity in India.
 NDL Competition with following competitors in Global market:

-Vicunha Textiles
-ISKO
-Tavex Corporation
-Arvind Textiles

 NDL Competition with following competitors in India:

-Arvind Textiles
-Arvee Denim
-Sudarshan Jeans
-Etco Denim

Suppliers
 High availability of cotton

 At low cost of labour availability is high

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 Presence of inputs to denim like polyester, color, cotton yarn, etc are present.

Importance of volume to suppliers is very high

Customers
NDL have international customer:
 Polo
 Levis
 Arrow
 Ralph Lauren
 Calvin Klein
 Target
 Armani Exchange
 Tommy Hilfiger
 Ann Taylor
 Spykar
 Pepe jeans

Their target customer are youth(15-29)

New Entry
 Low barriers in the domestic market.

 Economies of scale are high.

 Capital requirements to establish a regional or a national level operation are high.

 The companies operating at the national level do manage to make economic profil but entry
barriers at this stage are very high.
 High capital requirement is not an issue for the international players and thus the entry of
strong international brands in the domestic market is inevitable.
 Thus the threat of new entrants is moderate.

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Substitutes
 The threat of substitution from the garments provided by the unorganized is high.

 Denim substitutes are Khakhi, 100% cotton, 100% polyester, etc.

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 BCG ANALYSIS
The matrix classifies businesses / SBU’s by
1) Relative Market Share – The market share of the business / SBU / Product in the
market as compared to its competitors and overall product / category.
2) Market growth rate – The growth rate of the industry as a whole is taken into
consideration from which the growth rate of the product is extrapolated. This growth rate is
then pitched on the graph
Once the businesses have been classified, they are placed into four different quadrants of the
matrix. The quadrants of the matrix are divided into
1) Cash cows: High market share but low growth rate – DENIM
2) Stars: High market share and High growth rate – KHAKHI
There are only two product are Denim, cotton fabric and Khakhi. None other is produces.

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 CONCLUSION

Our overall impression about the unit is inexpressible. In this report after analyzing I
can conclude that Chiripal Textile industry is progressive very rapidly in the Indian
market. The performance of the unit is very impressive in the past year. At present
Chiripal Textile Industry is popular. 44 years is a very big time for any brand to establish
itself successfully in the market.

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Bibliography

Chiripal official website – introduction and history.

Nandan Exim website – marketing, social responsibility.
SEBI – Capital structure 2016.
Wikipedia – Production process .
Chiripal annual report – Finance.
Scribd.

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