Project

On

Rate Of Absentism
And
Labour Turnover
( Special Reference to Nahar Industrial Enterprises Limited, Unit – Nahar Fabrics, Lalroo)

Submitted To
Institute Of Management Studies
For partially fulfillment of the requirement of the Degree of Master of
Business Administration(MBA)

Session – 2006 – 2011

Submitted By

Keshiha Sharma
th
BA-V year-5 sem
University Roll No. 33

KURUKSHETRA UNIVERSITY,
KURUKSHETRA
 Preface
In today’s milieu of accelerated economic development, there is greater
awareness regarding Human Resource Development in all sectors of the
Indian economy. With the changing employment scenario reflecting the
needs , wants , and expectations of an ever changing society , lot of focus is
given on Training and Development which endeavors to equip trainees with
required skills to cope with growing business complexities and dynamics of
the competitive world . Every year huge investment is done by national ,
state , private funding agencies , corporate , devotes countless hours to the
nuts and bolts of the curriculum designing and training but very little has
been done systematically to study and evaluate training impact in terms of –
to what extent training programme succeeded in their difficult task of
preparing the trainees with required skills and ensuring transference of
learning . Many professional trainers and training departments are found to
use only Reaction Evaluation at the end of the training programme , whose
results initially appear heartening and such evaluation can capture only
immediate feelings and perceptions of the participants , which hardly
indicate learning in terms of knowledge , skills and attitude and its transfer
to the job .

Since men are the most vital and versatile resource of any
organizational performance. An effective method of making them able to
adapt to newer technology an the changing environment is training.
Unfortunately, Indian corporate culture does not realize the principle that
each work has its peculiar demands on the individual and each individual
has its own preference and ability to work. In India only about 2 to 3 days
per year are devoted for training per employee, whereas, countries like USA
and Japan spend 45 to 55 days on training each year for their employees.
One cannot deny the fact that technology makes total quality possible, but
men make it happen.
Evaluation of the training programme can no longer be considered as
perfunctory task with little analysis and usefulness .

Place: Lalroo Keshiha Sharma

Date 17-July-2008
 Acknowledgement

A degree of MBA without a theoretical knowledge is impossible. I

classroom we can only study that Fayol’s law were implemented how
administration is studied but during training we actually get to know how to do it.
During my month long training I came to know how an organization deals with
laborers how they get work out of them.
NAHAR Group is one of the leading group in Textile industry. Apart from
exporting the clothes they own well known brands like Cotton County , Monte
Carlo , French Republic .
I will like to thank Mr. S.S. Aich honorable CEO for inducting me to
raining. Another heartful thank to Mr. S.K. Sharma Assistant, Vice-President for
assisting me and granting me this interesting project.
I’ll like to thank Mr. Anil for his cooperation and supporting me for this
project. Whenever in need he helped me whole heartedly.
Anther grateful thanks to time Keepers – Mr. Raman , Mr. Pawan , Mr.
Sushil for their support and cooperation for providing me data with which I
could not have completed my project .

Keshiha Sharma Date

17th July-2008
 DECALARATION

I Keshiha Sharma roll No. 33 student of Institute of Management Studies

(IMS) (5-Year MBA) from Kurukshetra University declare that whole work done

by me is all done by me with the help of management of Nahar Fabrics. Its

Purely mine not copied.

Keshiha Sharma
Roll No. 33 Date
Institute of Management Studies 17-July-2008
Kurukshetra University
COMPANY PROFILE

Nahar Industrial Enterprises Limited an existing assisted company promoted by

Sh. Jawahar Lal Oswal is a multi division and Multi locatin company. The

operations of NEIL are currently organized into 4 divisions Spinning, Fabrics,

Soap and Vanaspati division. The Spinning division has a complement of 32000

spindles for the manufacture of cotton yarn whilethe fabric division has a

complement of 160 looms for the manufacture of Grey cotton fabrics. Both the

Spinning and Fabrics Division are located at LALRU, DISTT- MOHALI. the soap

division has facillities for the manufactures of 30000 tones per annum of fatty

acid , 30000 tones per annum of toilet soaps and a rice bran crushing capacity

of 60000 toner per annum at Raikot , Distt—Ludhiana. The Vanasapti division is

also located at Raikot , Punjab has faciilites for the manufacture of 19800 tones

per annum of vanaspati ghee

NIEL promoted by Jawahar Lal Oswal and associates was incorporated in

Sepetember 1983. As a Public Limited Company under name of OSWAL FATS

AND OILS LIMITED. The main products of the company comprised are industrail

oils, soaps , andgrade fatty acids and distilled glycerin

INTRODUCTION TO NAHAR GROUP

NAHAR GROUP ESTABLISHED IN 1949 WITH Oswal Woolen Mills Ludhiana ,

surges a heasd in established itself as a reputed industrial conglomerate with a

wide range from spinning , knitting , fabrics , soaps , vegetable oil and sugar

THE JOURNY

1983 - Incorporated as Oswal Fats & Oils Ltd.

1994- Name changed as Nahar Industrial Enterprises Ltd

1997- Merged Nahar Fabrics Ltd.

2002- Merged Oswal Cotton Mills Ltd. (Manufactuers of processed fabrics &

finished garments)

2004- Launched apparel brand “Cotton County”

2005- Merged NIL (Manufacturer of yarn) & Nahar Sugar & Allied Industries

Ltd. (Manufacturer of Sugar and Steel)

2006- Created Nahar Retail Ltd, a wholly susidary of Nahar Industrial

Enterprises Ltd. to have a more focused view in retailing

Unit Nahar Fabric an ISO 9001 (QMS) & ISO 14001 (1996 EMS)

COMPANY has richened ISO 9002 certificate in Jan 1999 from b\s for maintaing

International Quality Standard. It is also certified through SA 8000

TEXTILE INDUSTRY IN INDIA

Industries have a major role to play in the economic development of the

underdeveloped countries. Textile industry is one of the oldest industries existing

till date. Although, initially this industry catered to the needs to cover the Human

Beings, but its importance and significance groomed in Egyptian Civilization.

For the most of recorded history, mankind has relied on natural fabrics,

particularly cotton, linen, wool, and silk for textile products. In addition, the

technology of fabric manufacture was relatively simple.

However, the demand could not grow up in the same proportion and India

suffered due to unbalance between demand and supply, thus ultimately resulting

in lower prices. However with the advent of industrial revolution, the textile

industry in India begins to rise due to open government policies and import of

technical know-how and machinery.

During the past few decades, the textile industry has gone through a

period of unprecedented changes. The production of manmade fibers and their

use in industry has surpassed that of natural fibers. The twentieth century

customer has choice among linen, wool

 Silk, nylon, acrylic, polyester, etc and also wide range of different blended

fibers.

Today the past few industry applies scientific parameters to optimize

production so as to develop textile products to meet specific consumer needs

and demand

Changing fashions and desire for better quality have boosted the textile

industry in recent years. With increasing population, Demand for fabric is rapidly

increasing and new units are being established while the existing ones are going

for mass expansion and modernization.

QUALITY POLICY

1. Need fulfillment of customers

2. Adherence to standard and norms

3. Human resource development through continuous training

4. Adoption of latest technology

5. Responding fastesti customer’s queries

6. Flexibility in product mix

7. Application of environment friendly techniques.

8. Bringing sense of belongings.

9. Reduction in rejects and waste

10. Innovation in process.

MAJOR PLAYERS OF THE INDUSTRY

S.P OSWAL GROUP

O.W NAHAR GROUP

L.M.J. BHILWARA GROUP

MALWA COTTON

PRECOT MILLS

SUPER SPINNING MILLS

SUTLEJ INDUSTRIES

GTN TEXTILES

SURYA VANSHI SPINNING

NAHAR GROUP OF COMPANIES INCLUDES:-

OSWAL WOOLEN MILLS LIMITED

NAHAR SPINNING MILLS LTD.

NAHAR INDUSTRIAL ENTERPRISES LTD.

NAHAR INVESTMENT AND HOLDING LIMITED.

NAHAR INTERNATIONAL LIMITED.

NAHAR SUGAR AND AILLED INDUSTRIES LIMITED.

OSWAL WOOLEN MILLS LIMITED

 OSWAL WOOLLEN MILLS LTD.

It is the flagship company of over US $ 500 millions. Oswal Woolens Mills

of Nahar Group , established in 1949 surges ahead to established itself as a

reputed industrial conglomerate with a wide range portfolio from spinning ,

knitting, fabric, hosiery , garments etc. Out of total production, 60% of the

production is dedicated to exports and the rest of 40% for the domestic market.

The production facillities have been awarded ISO 9001:2000 .

Today OWM is the flagship company of the glorious Oswal Empire and proud

owner of widely loved brands Knitwear , Monte Carlo and Cotton County . The

company boasts of a product range that is truly and varied . They include diverse

types of Woolen , Acrlic and Synthetic Yarns , Lambs Wool Viscose & Acrlic

Tops , Textile Fabric, Woolen Knitwear , Hosiery & cotton Garments.

The markets of NAHAR GROUP are cris crossed all over the globe with

major client in Australia, New Zealand, Europe , Middle East , Africa , Russia ,

and Asia. The objective is meeting the buyers expectations with consistent

quality backed by R&D divisions equipped with latest equipment, cream of highly
qualified technocrats and adhering to timely schedules. Today Oswal Wollen

Mills Ltd. Is a company that owes its strength in the market and solidity to

foresight of its chairman Sh. Jawahar Lal Oswal , the professional inputs of the

board of directors and able of highly skilled managers.

NAHAR SPINNING MILLS LIMITED

Spinning a web of pure enchantment seems to be the aim and objective of

NAHAR SPINNING reckoned to be the blue-chip in the NAHAR firmament.

Starting out as a tiny worsted spinning & hoisery in Ludhiana, it was incorporated

as Private Limited company in December 1980 & became a Public limited

company in 1983. The steady growth in manufacture & export of woolen / cotton

hosiery , knitwear & woolen textiles enabled the company to earn the

recognition as an “Export House” followed by a “Recognized Trading House “ by

the Government of India in the short span of 8 years. Its turbo-charged

performance brought them a host of fresh laurels… they include the “National

Export Trophy” by the Apparel Export Promotion Council.

In 1992, as a measure of backward integration, the company diversified

into the’ Spinning Industry. Today it has an installed spindlage of 335000

spindles. Simultaneously the company also established an ultra modern facility to

manufacture 12.5 million pieces of hosiery garments. Today Nahar Spinning’s T-

shirts are being exported to reputed brands like GAP, ARROW, Pierre Cardin,

Phillips Van Huesen , Izod Quicksilver etc….

NAHAR INDUSTRIAL ENTERPRISES LIMITED

Nahar Industrial Enterprises Limited (NIEL) is a vertically - integrated textile

manufacturer. With operations from spinning, weaving & processing to finished

ready made garments. NIEL’s strategic objective is to capatalize on the growth

opportunities that it believes recorgnizes the competitive nature of the industry ,

especially with established pressure from Asia , and that to maintain growth it

must continue to improve production process and reduce cost.

NAHAR INVESTMENT AND HOLDING LIMITED

Back of the future could be the tittle for NAHAR INVESTMENTAND HOLDING

LIMITED success story a dazzling satellite of the NAHAR constellation . Starting

out in 1988 as manufactures & exporters of cotton hoisery garment knitwear the

company soon realized that to move forward it had to strategically move back.

Today , the result of these dynamic synergies are here for all to see in the

year 2003-2004 the company achieved a turnover of Rs. 4687 million and earned

a profit of over Rs. 357 million . An ISO 9002 company Nahar Exports has 5

plants with a spindlage capacity of 153664 spindles manufacturing a wide range

of premium specialty & value added yarns manned by a dedicated work force of

5000 exporting to enthusiastic customers in the

Competitive export market of Europe. Hong Kong, Singapore, Mauritius &

South East Asian markets . Nahar Exports today is a major player in the chosen

area blazing new trials & spanning new horizons in its on going pursuit of ever

grater excellence.
 To consolidate the textile business under one umbrella and to have

focused business approach, it was thought desirable and expedient to

restructuring company‘ s business. Accordingly a composite scheme of demerger

and arrangement with Nahr Spinning Mills Limited was proposed . which is

already approved by the Hon’ble Punjab & Haryana High Court vide its order

dated 21st Dec..2006. Pursuant to the scheme , company’s Textile Business

stand demerged and transferred to Nahar Spinning Mills Limited .

NAHAR INTERNATIONAL LIMITED

Incorporated in 1970 , it comes under management of OWM Group in 1980 and

given its present name in 1994. NAHAR INTERNATIONAL LTD. has two

manufacturing units , all of which are resulted hardcore strategic thinking in its

pursuit of moving ahead.

ARHAM SPINNING MILLS , Bhiwadi

Consolidating on the core strength of the group , the spinning unit of the

company located at Bhiwadi (Rajasthan) . It is engaged in manufacturing of

cotton and blended yarn . Commercial Production of the unit commenced in

1993. The installed capacity of unit at present is 66264 spindles.

ARHAM SPINNING MILLS , (100% EOU ) , Lalru

Cashing in is’s familiarly and strong presence in the key marked of the west , the

spinning unit of company is 100%EOU . It has been setup in Dist. Mohali

( Punjab ) for the manufacture of cotton/ blended yarns with a capacity of 25200

spindles.
NAHAR SUGAR AND ALLIED INDUSTRIES LIMITED.

Established in 1993 Nahar Spinning Mills Ltd , associate companies in the

assisted sector with PSIDC promoted Nahar Sugar .

Nahar Sugar represents the Groups concerted thrust towards exploring

new need based in tune with larger context of customer needs & market

demands.

The has a modern sugar mill powered with latest state of the art

equipment at district Fategarh Sahib (Punjab) for producing all types & grades of

sugar and allied products. The installed capacity of mill is 2500 TCDs

An active program of cane development to ensure regular supply to the

plant is carry on. Also t the power co-generated at the plant is being

constructively used for capitative consumption to reduce the raw materials cost..
DIRECTOR’S LIST

1. Mr. Jawahar Lal Oswal , Chairman

2. Mr. Kamal Oswal ,Vice-Chairman and Managing Director

3. Mr. Dinesh Oswal

4. Mr. Dinesh Gogna

5. Mr. N.D Jain

6. Mr. S.P.Nijhawan

7. Dr. O.P.Sahni

8. Dr. (MRS) H.K.Bal

9. Prof. K.S.Maini

10. Mr. R. Krishna Kumar

 DEPARTMENTS IN THE COMPANY

1. WARPING

2. WINDING

3. SIZING

4. COMMERCIAL

5. KNOTTING cum DRAWING

6. LOOMSHED

7. FOLDING

8. MAIN. PLANT

9. ENGG.

10. SANITATION

11. STORE`

12. ADM.

13. HORTICULTURE

14. DESIGHNING

15. Q.A.Q.C
 MY PROJECT

RATE OF ABSENTISM

AND

LABOUR TURNOVER
 No. Of Absentees from 15th May to 10th June

OLD PLANT
DEPATMENTS Total Work Force No. of Absentees.
Warping 29 25
Sanitation 30 137
Commercial 64 143
Winding 11 15
Sizing 34 86
Store 3 8
Loomshed 199 538
Knotting. 39 62
Folding 76 192
Main. Plant 18 75
ADM. 10 18
Horticulture 20 60
Designing 32 62
Q.A.Q.C 1 0
Engineering 71 191

TOTAL 738 1612

NEW PLANT

Departments Total Work Force No. of Absentees

Warping 41 98
Winding 35 72
Sizzling 53 117
Knotting 66 144
Loomshed 340 319
Main. Plant 9 25
Folding 72 85
Designing 10 1

TOTAL 646 861

REASONS FOR ABSENTISM

1. Urgent work

2. Fever

3. Marriage
4. Death in Family

5. Miscellaneous reasons

Percentage of Reasons For Absenteeism

OLD PLANT

Urgent Work – 44%

Fever - 26%

Marriage - 17%

Death in family - 09%

Miscellaneous - 04%
NEW PLANT

Urgent Work – 43%

Fever - 24%

Marriage - 16%

Death in family - 11%

Miscellaneous – 06%

1. Urgent Work: - Urgent work is main reason for absenteeism. Urgent

work means he cannot avoid such work and has to take leave. Urgent work

include, holiday for bringing household items, like cylinders, arrival of

guests. at home and other number of reasons .

2. Fever:- Fever is the second main reason behind the absenteeism. Fever

includes himself ill , fever in the family, injury to some relative. The

percentage shows that the working condition in company is not satisfactory.

ESI hospital has been established recently but that didn’t help in reducing

absenteeism
3. Marriage:- Marriage holds third place in absenteeism . Marriage includes

his/her own marriage. Marriage in family Basically , majority of labourers

working are young in age and suitable for marriage . this shows that the

work force working is young in age.

4. Death In Family:- Death includes death of father , death of mother or

death in family . this is unavoidable situation and management gives them the

holiday with out wasting time.

5.Miscellaneous Reasons:- Miscellaneous includes those people who

have

either not written the reasons or have taken short leave the miscellaneous

reasons are very less compared to others.

Labour Turnover
Labour Turnover During March , April May.

Month Joining Left Difference

March 57 93 -36

April 50 101 -51

May 97 102 -5

TOTAL 204 296 -92

Labour Turnover

Labour turnover means leaving the company by looking at the

figures we come to know that the labor turnover is much more which

is not a good sign for a company . Since the persons leaving the

company is much higher than persons joining it means the laborers

are not happy or satisfied working with the company . There are

number of reasons for that like lesser pay , fight with supervisor ,

bad working conditions , some are expelled from the company ,

market boom , and other reasons . This is very dangerous and

alarming situations and management has to take certain steps to

tackle it. . They improve the working condition for labourers , they

should increase the salary of workers , well they cannot do anything

for explusion , but they can tackle other reasons like not giving

advances , market boom , general loans , doctors not giving

medicines , security cars etc.

REASONS FOR LABOUR TURNOVER

1. Less Payment

2. Fight with supervisor

3. Bad Working Conditions

4. Expelled

5. Market Boom
6. Other Reasons.

Percentage of Various Reasons for Labour

Turnover :-

Less Pay – 54%

Fight With Supervisor – 13.5%

Bad Working Conditions – 15.5%

Market Boom – 4.5%

Expulsion – 2%
Other Reasons – 10.5%

1. Less Payment:- Less payment is the chief reason for leaving the

organization . During my training I found that the pay a worker or a weaver

gets much less pay compared to other companies . For e.g a weaver is paid

Rs . 3000 per month where as in other companies they get Rs. 7000 per month

so abviously the weaver will leave the company. Even the trainees are paid

less .

2. Fight With the Supervisor :- Workers wants to do less work ,

whereas

the supervisor wants to get maximum work out of him . moreover

supervisor is never satisfied with laboures thie leads to collision between

them both . For e.g if the worker is taking rest during or caught not

working he gets scolding this leads a negative impact on his mind .

Sometimes even these small things end up by leaving of the company

by labourer.
3. Bad Working Condition: - Working conditions plays very important

role in any company . the working condition in Nahar is not satisfactory .

There is cotton flies or dusk all over the unit , there is terrible smell , and

huge noise especially in loom shed . These all situations leads to

negative impact on the laborer instead of being motivated he gets

frustrated and thinks of leaving the company . they feel demoralize or

unhappy . Even evening tea is not offered like it is served in other

companies. So the laborer which is already unhappy leaves the

company in search of that company which has a good working condition.

4. Expulsion:- Expulsion is that reason which cannot be avoided to

reduced for labour turnover . Expulsion is the last thing a person can

think of. In the company there are certain guidelines if they are not

followed the laborer are expelled from the company the guidelines are

that anybody caught stealing , women work force is more here so any

kind of teasing , passing comments , is strictly prohibited any one found

is expelled from companies Any one found with cigarettes , drugs or

alcohol is straight away thrown out .

5. Market Boom :- Market Boom means that industries are at other

places. Money is not everything for laborers . In my company there are

large numbers of migrants from Himachal Pradesh , Uttrakand . U.P

Suppose if a migrant from Palampur or Poanta Sahib comes here to

 work leaving behind his family if a company establishes its unit there he

will certainly go and work their so that he remains closer to his family

and his city even if he is getting less pay he won’t mind. Market Boom

wasn’t a big problem but in recent times it has become a hesd-ache for

company as many of laborers are from Himachal , Uttrakand and U.P

6. Other reasons:- Other reasons includes frustration , not giving pay

on time , lack of information , no promotion , fight with colleagues .

These all reasons comes under another category . Basically these are

avoidable reasons . For e. g if a worker wants advance then he is either

refused or made to go to various departments . Time keeper which holds

all these information speaks rudely this leads to frustration in laborers.

These things can be avoided by becoming more polite and helpful.

SUGGESTIONS

1. The management should try to reduce the labour turnover by

tackling reasons which are avoidable . The time keeper must be

polite and management should be helpful.

2. They should try to improve the working condition by providing

more cleaners and more machines so that the working place

remains clean

3. Other facilities like residential facillties , tea facilities , bus

facilities should be provided and if provided must be increased .

CONCLUSION

My Training in NAHAR FABRICS . has been a fruitful and eye opening

experience for us. The training gave me a feel of working with a big and a

premier organization like the NAHAR GROUP. The people in the company are

very good and always ready to provide a helping hand whenever in need . After

doing my training at NAHAR FABRICS . We felt the importance of training in

industry and its practical applications. When we were studying the theories of

different concepts, we were studying the theories of different concepts , we were

thinking that how all these would be implemented . However , after the training,

we learnt that how all these could be put to good use . It was the result of the

training only that we go to see the objects in real about and seen as 2-D objects

in books.

During my one month training in NAHAR FABRICS . We got a chance to

expose my self to the industrial culture & work environment. In other words, this
one month training was a learning experience all the way. This all happened due

to cooperation of the staff and the management, who helped us in gaining

whatever knowledge , we have today about the production and management .

At the end I would like to conclude that I really enjoyed my training I’ll thanks

every staff member especially time – keepers with whom I whom certainly not

completed my project .