ON

SELLING TREND OF COTTON YARN AT

VARDH MAN PO LYTEX LT D BATHINDA

Su bmitted in the partial fulfillme nt o f the req uireme nts fo r the degree of

MASTER OF BUSINESS ADM INISTRATION

Submitted t o Var dh m an P olyt ex Lt d. Badal r oad, B athin da

Submit by Navdeep Kumar MBA

C h a n di ga rh G r oup of C ol l e ge s Moh a l i
1

S T U D E N T S D E C L A R A T I ON

Certified Business pr e pare d

that

am

N av deep

Kumar

of

Master

of

Administr at ion - 3rdS e m(M ar ket in g ) report titled SELLIN G TRENDS

have OF

COTTON YARAN AT V PL, Bat hinda and completed my pr oje ct under the guidance of Mr.Arora &

Mr.jagdish single in the partial fulfillment of the requirements for the degr ee of Master of B usiness Administr ation. We her eby cer tify that no part this report has been submitted for any of

other

degree.

The pr oject was undertaken as a part of the course of M .B .A. under Pu njabi University, Patiala.

Place-Bathinda Date:

NAVDEEP KUMAR

ACKNOWLEDGEMENT

I w ould li ke t o av ai l this opportunity to e xpress m y deep sense of gratitude to all those who have hel pe d and e nc our ag e d me towar ds the s ucce ss ful completion of this project.

I am ver y grateful to Mr . MR. Vijay Aror a, Branch guidance Manager and for his the v aluable pr oble ms suggestions, throughout

solv ing

the pr oje ct. Also, w ithout his hel p, I w ould not h ave study. got a chance to under take this wor k of

I would also like to thanks the following people who sh ared their precious knowledge and experience with me and pr ovi ded me n ecessary

guidance and help when ever requir ed:

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Introduction An introduction to development of textile in human life Overview of Indian textile industry Types of cotton yarn Company structure Company profile Vardhman Polytex limited Manufacturing process in Vardhman Polytex limited Functions of various departments of vpl Bathinda Vision Objectives of study Scope of study Methodology SWOT analysis Sales of cotton yarn in domestic market Trend of export n last five year Limitations Summary of the study Findings of the study
4

20. 21. 22.

Suggestions and recommendations Conclusion Bibliography

INTRODUCTION
There has been a constant search for clothing and it lead to the knowledge of source from vegetation i.e. cotton and from animal i.e. wool, which could be knitted and woven to manufacture cloths to wear. T he commercial development of manmade fibre began late in the 19th century. It growing during 19 40's. Earlier the spinning and weaving of cloths was done manually. But with the passage of time a lot of improvement in the spinning and weaving came up. T he textile industry has been growing to its new height with new technological advancement. With the cotton belts available throughout India. The spinning and weaving industries came up. First cotton mills have been established in India during 1854 name of Bombay Spinning & Weaving Co. T he cotton in dustry has progressed a lot. T hereafter the most modern machinery of spinning and weaving has been installed till today. India has achieved a lot in the textile industry and almost 700 textile units are working

successfully. T he cotton textile industry has played its

vital role in bringing improvement for the economy of the nation. And it has contrib uted a lot towards the

improvement in the national economy. From the western part of India i.e. Maharashtra and Gujarat where a lot of cotton textile mills have been installed and this is the area from exports of the textile yarn is very easy because Bombay port and other facilities are available in this region and climate condition of this area also very much fit to run the textile industry. The invention of the man mad e 33 fiber that is synthetic fiber like Nylon, Acrylic Fiber, Viscase, Filament Yarns, Melange Yarn etc. had given a good blow to the grow for the cotton textile industry. Ab out 50 countries have been importing such material from India. The major center in the north India dealing in woolen products manufacturing and Kanpur, Dhariwal, Panipat, Ludhiana and Amritsar. T he first woolen mill was started at Kanpur in 188 6. T he textile industry may be classified into:-

1. T extile mills comprising composite and spinning mills in the organized segment. 2. Khadi based units. 3. Made up fiber. The invention and production of manmade fruity three fibers that is synthetic fiber lik e nylon, acrylic, fiber gave a blow to cotton textile industry. India cotton yam and clothes find an appreciable acceptance in overseas

market. India has one of the largest textile industries of the world. Textiles constitute an important sector in Indian exports. T he textile industry is obviously receiv ing new input which can provide faster growth to the

industry. T here are some weaknesses that the textile industry faces in India. T he low production of cotton crop, under developed and less modem status of India's textile industry and lack of concern for quality has been acting on barriers to faster growth of India's textile exports.

THE DEVELOPMENT OF TEXTILE IN HUMAN LIFE

The physiological need of the human being is food, clothing and shelter in order to survive. Since the day of inception of humans on this earth the many changes have been taken place at different spar of times, human being gradually has evolved itself from a nomad to civ ilized living conditions. The major changes in human living phase was like knowing the art of agriculture, inventions of wheels for

transportation generation of power, but the v ery basic need which really took the man off from his feet was the invention of knitting and weaving. Human beings need to cover their body to protect from diverse climates and to add the appearance. The human's first use plant barks leaves and animal skin to wrap around them. Then as the

development of brain took place, they started to explore other possibilities and invent more in this area. There was a constant search for clothing and it led to the knowledge of sources from vegetation i.e. Cotton and from animals i.e.
9

wool, which could be knitted and woven to manufacture clothes to wear. The commercial development of man-made fibre began late in the 19th Century, experienced much growth during the 1940's, expanded rapidly after World War -: II and in the 1970's was still the subject of extensive Research and Development.

10

OVERVIEW OF INDIAN TEXTILE INDUSTRY

We all know that prime needs of man are food, clothing and shelter. Clothing a main part of the prime needs is satisfied by the presence of textile industry. Thus the scope of textile industry is vast, ever expanding and serves the individual man, women, child, the community and country. Textile industry has a wide range of utilities form

decorating one's home to donning the dresses of army & navy. As such there has been an increase in demand of both at domestic and international level. India has one of the largest textile industries of the world and also is the single largest organized industry in India employing over 21 lakh workers. The industry has four sectors Khadi, handlooms and organized mills of which cotton textile being the most significant the consumption has constantly shifted towards modem, blended, dyed and
11

printed goods. The consumers now prefer good quality and durable products. These too have forced several

manufacturers in textile industry to change their product mix. Textile constitutions and important sector in India exports. Textile and garments are the single largest category of products from India/ accounting for about 25 % of the country exports. Garments export industry, unparticular is showing phenomenal increase in growth year after year. Releasing export significance an employment potential, the gov ernment deli censed the cotton textile industry

including power looms. Encouragement to export of cotton textile and garment become an important part of the new policies. Under the law policy, sophisticated garment

machine, which are not manufacture in India, are now allowed to be import under OGL. Moreover the new policies have allowed setting up of garment manufacturing units provided they export 50% of the production.

12

The exports have also increased to a great extent due to the interest undertaken by the Government to boost

exports. It has introduced ISO 9002 for quality related factors. There are some weaknesses, which India has to overcome. Infect, for these weaknesses, Indian export of textile would have been much higher. The low productiv ity of the cotton crop, the relatively under developed and less modem status of India's textile industry and lack of concern for quality, has been acting on barriers to faster growth of India's textile exports.

Textile industry may be classified into :

1. Textile mills comprising composite and spinning mills in the organized segment 2. Small power loom and handloom units in the

decentralized segment Khadi-based units 3. Man made and synthetic fiber and spinning units made up fiber.

13

TYPES OF YARN

Yarns can be described as single, or one-plies; ply, plied, or folded; or as cord, including cable and hawser types.

Single yarns
Single, or one-ply, yarns are only single strands composed of fibers held together by at least a small amount of twist; or of filaments grouped together either with or without twist; or of narrow strips of material; or of single- manmade filaments extruded in sufficient Thickness for use alone as yarn (monofilaments). Single yarns of the - spun type, composed of many short fibers, require twist to hold them together and may be made with either S-twist or Ztwist). Single yarns are used to make the greatest v ariety of product because of the good length fibers.

14

Ply yarns
Ply, plied, or folded, yarns are composed of two or mare single yarns twisted together. Two-ply yarn, for example, is composed of two single strands; three-ply yarn is composed of three single strands. In making ply yarns from spun strands, the individual, and trends are usually each

twisted in one direction and are then combined and twisted in the opposite direction. When both the single strands and the final ply yarns are twisted in the same direction, the fibre is firmer, producing harder texture and reducing flexibility.

Card yarns
Card yarns are produced by twisting ply yams together, with the final twist usually applied in the opposite

direction of the ply twist

Cable cords may follow an SZS

form, with S-twisted singles made into Z-twisted plies that are then combined with an S-twist, or may follow a ZSZ form. Hawser cord may follow an SSZ or a ZZS pattern.

15

Cord yams may be used as rope or twine, may be made into very heav y industrial fabrics, or may be composed of extremely fine fibres that are made up into sheer dress fabrics.

Novelty yarns
Novelty yarns include a wide variety of yams made with such special effects as slubs, produced by intentionally including small lumps in the yam structure, and man-made yams with v arying thickness introduced during production. Natural fibers, including some linens, wools to be woven into tweed, and the uneven filaments of some types of silk cloth are allowed to retain their normal irregularities, producing the characteristic uneven surface of the finished fabric. Man-made fibers, which can be modified during production, are especially adaptable for special effects such as crimping and texturizing.

16

COMPANY STRUCTURE

OSWAL GROUP

VPL BATHINDA

ANSHUPATI LUDHIANA

VTM LUDHIANA

F.M. HAMMERBAY

17

COMPANY PROFILE

OSWAL GROUP is a premier Textile Group of Northern India having its Corporate Office at Ludhiana, Punjab. The Group has existence for last 40 years with core competency of Spinning. We were earlier part of Vardhman Group but after family settlement between two brothers in 2003, we have named ourselves as Oswal Group.

The Group is mainly into spinning & dyeing of all types of Yarn in different blends & manufacturing of Garments. The Group has plans to diversify in future but mainly in textiles related activ ities.

Mr. Ashok Oswal, Chairman & Managing Director who is a Law Graduate and having experience of over 25 years in the textiles, heads the Group. He has been assisted by the

18

talented team of professionals in the field of Production, Finance, Marketing, Commercial, HRD and IT at the

Corporate Level. Under the dynamic leadership of Mr. Ashok Oswal, the Group is consolidating its strength in textiles and plans to reach highest standards of quality at a competitive cost in manufacturing different types of yarn viz; Cotton Yarn, Cotton Blended Yarn, Acrylic Yarn,

Acrylic Polyester Blended Yarn & Dyed Yam with the stateof-the-Art Machinery and R&D facilities. The industrial cityLudhiana nestles the corporate

Headquarters of the Oswal Group of industries. The Oswal Empire comprises of Anshupati Textiles Limited situated in Ludhiana, Vardhman Polytex Limited situated in Bathinda, Vinayak Textile Mills situated in Ludhiana.

Anshupati Textiles Limited,

Punjab, the worsted with spinning

based at Ludhiana in in the Indian

units

subcontinent

8000

worsted

spindles

installed,

19

manufactures the Machine Knitting Yarn, Mink Yarn and Fancy yarn, with v ast product range, to meet every sort of count combination demand of its prospective customers. The yarn manufactured from this unit holds a very strong reputation and demand both in domestic and international market. The present capacity in terms of production is approximately 6.5 ton per day.

Vardhman

Polytex

Limited,

unit

based

at

Bathinda in Punjab with approx. 75,000 cotton spindles installed, is manufactured 100% cotton yarn, Polyster

cotton yarn and Tyre cord yarn with v ast range of count selection varies from NE 10 to 40 both in carded and combed v arieties. To ensure quality to its customers the group has received the ISO-9001-2000 certification. This unit is exporting its product to Singapore, Bangladesh, and Sri Lanka etc.

20

Vinayak Textiles Mills ,

a unit at Ludhiana in Punjab

with 49632 cotton spindles installed, is manufacturing 100% cotton & blended yarn with v ast range of count selection varies from NE 20 to 40 both in carded and combed v arieties. The present capacity in term of

production is around 29 Mt. Dyeing / Day. The unit has expanded its capacity by another 25000 spindles and

commercial production will start by Oct. 2006.

21

PRESENT CAPACITIES
Presently the group has following production capacity and product range at its different manufacturing facilities. Location Installed Production Capacity Bathinda (VPL) 75000 Capacity 50.00 Mt/Day Cotton, Synthetic, Blended yarn and Tyre Cord Ludhiana (Anshupati Textile) Ludhiana (VTM) 49632 29 Ton / Day 100% Cotton & Blended Yarn 8000 6.50 Ton / Day Synthetic Yarn Product Range

22

VARDHMAN POLYTEX LIMITED HISTORY

Punjab Mohta Polytex Ltd., the foundation stone was laid on 12th June 1983 by the chief minister of Punjab, Sardar Darbara Singh. The plant was commissioned on 4rth

September, 1986 and inaugurated by Sardar Surjit Singh Barnala. Mohta group has taken over and in corporated by Mahav ir spinning Ltd. in 1987. Thus, Punjab Mohta Polytex Ltd became the subsidiary of Mahav ir spinning Ltd. At the time of amalgamation the unit had 9000 spindles and 504 rotors, making the total of 11520 spindles. After taking over, the spindle age was increased to 15520 spindles. In 1991 the name of the unit was changed to Vardhman Polytex Limited, as a separate company. Mahavir spinning ltd share was bought back in VPL. The spindles were further increased to 30328 and 504 rotors. The last

expansion came in 1994 with an increase of another 12320 spindles making total capacity to about 35648 spindles, now the unit has 74592 spindles. The unit headed by chief
23

executive Mr. Ashok Goyal who controls and coordinates the activities of all the departments in the unit.

Research quality material

and

dev elopment product Testing

in

Bathinda

is

engaged and

in

testing, testing.

dev elopment, is carried

quality at each

new of

stage

manufacturing process. The company has got a spinning laboratory for the analysis of length, strength, fitness, trash area & trash contents ere for ensuring proper mix of cotton as raw material. VPL manufactures 4 v arieties of cotton yam: 1. 2. 3. 4. Carded Combed Polyester Cotton Yarn Tyre Cord

24

The difference between these varieties is that in Carded variety, the sliver from the carding is directly taken to the draw frame for drawing and parallelization of the yarn.

ISO Certification
The unit has been awarded ISO - 9002' certificate by the bureau of Indian standards after the final audit, which took place in the unit on 26th July 1996.

25

BRANCHES OF VPL
In VPL Bathinda there is a centralized buying and selling of yarn. There are mainly two branches of VPL Bathinda: 1. 2. Ludhiana Delhi

Ludhiana / Delhi Branch Office

VPL Bathinda had only manufacture 100% Cotton Yarn, Polyster Yarn, Organic Cotton Yarn, Cotton Lycra yarn etc. After manufacturing yarn they send yarn to Ludhiana / Delhi Branch.

4 invoice re prepare for deliver the yarn to Ludhiana office: 1. 2. Original copy to buyer. Duplicate goes with truck

26

3. 4.

Triplicate for VPL Bathinda Extra Copy.

Delhi Branch
Delhi branch are mainly deal with Export of yarn. They can export to following countries: 1. 2. 3. 4. 5. Sri Lanka Bangladesh Singapore Malaysia Mauritius

27

MANUFACTURINGPROCESS VPL BATHINDA

28

1. MIXING
The different varieties of cotton are issued as per product mix from the raw material section in bale from. The different v arieties of cotton and different lots are mixed together standard as per the requirement mixings. of end The product material and is

recommended

conditioned in mixing for 24 hours.

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

3. CARDING
In this process, further cleaning of fibers is done and the fibers are opened into single fibers extent i.e. the main purpose is further remov al of trash in cotton and the industrialization and parallelization of fibers. From the

29

carding machine, the material is delivered in the form of sliver.

4. DRAW FRAME
The purpose of this process is to reduce the wt/yard in the card sliver 6 to 8 end of card slivers are doubled together in this process to reduce variations and further drafting is done to reduce the wt/yard of delivered sliver. Two

passages are given at the draw frame stage.

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

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

30

6.

COMBERS

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

7. SPEED FRAME
The finisher draw frame sliver is fed to the speed frames for conversion into the roving form. In this process the wt/yard of the sliver is reduced, slight twist is given to the fleece and the material delivered in the form of roving, wound on the plastic bobbins. 8.

RING FRAME

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

31

9. WINDING
In this process, the yam is wound on paper cones to produce bigger package, as per requirement of the market. The weight / package v aries from 1.2 kilogram to 2.1 kilogram. During the process, in addition to the formation of bigger packages, the yarn faults are also removed with help of electronic yarn cleaner. 10.

DOUBLING

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

32

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

33

FUNCTIONS OF VARIOUS DEPARTMENTS OF VPL BATHINDA

Accounts and Finance

Financial and accounting activities of unit are looking after by the accounts department. It is headed by AGM (accounts & commerce). The account is fully computerized and been put under the different categories from delegation point of view. It inv olves:  Accounting for cash transaction  Customer / sales account  Accounting and blank transaction  Purchase accounting  Raw material accounting  General accounting

34

All

the

bills

for

payment

are

pursed

here.

Payment

exceeding Rs. 10,000 are made by cheques only. Whenever goods are received against bank, documents are retired for release of product. Various other" activities are to comply with corporate office.

Marketing
For marketing of different products the unit is having a different marketing department headed by AGM

(marketing), which cov ers all the activities for conversion of finished goods into cash. It gives vigil on the market to have, feedback on the level of competition, market trend, changing customer needs and modification. The marketing department deals with domestic sales while export sales are managed by export department of the group. The unit is market leader in both the product categories. It deals in hosiery yarn and lyre cord yarn. The unit is having

different channels job distribution of products.

35

Distribution Channel
After the production the next step is to sell and distribute the product in the market, segment. The main object of each organization is to satisfy the needs of the customer by providing products through different channels of market according to customer needs and preferences and tastes and nature of the market. Distribution channel, as the set of firms and individual that take title or assist in

transferring of title to the particular goods or services as it moves from producer to consumer. There are number of channels that are generally used by different organizations like zero level, % three levels, so channel performs the work of mov ing goods from producer to consumer. The channel used in VPL, Bathinda is as follows:

36

DISTRIBUTION CHANNEL OF VPL, BATHINDA

Corporate Marketing

Manufacturing unit of VPL

Direct Sales of VPL Bathinda

Branches

Consignment Agents

Export

Customer

Customer

Customer

Customer

37

Branches
 Ludhiana  Delhi

Commercial Department
Commercial department is a department which handles the material in a proper way, handles the waste and transfer the finished' product to various parties. It is a central department of organization. The main functions of the commercial department are as follows:  Raw material handling  Cotton waste handling  Insurance

Production Department
The production department has done the main function of an industrial unit. It is the main center of any

manufacturing unit. So production is done in a continuous assembly line.

38

VISION 2011
Oswal group aims at achiev ing a turnover of Rs. 700 Crore by strengthening its core competencies and capacities in textiles and div ersifies business to create v alue for its stake holders.

39

OBJECTIVE OF THE STUDY

Any research work without objectives is of no use therefore studying a problem or a case having objectives in the mind and fulfilling those objectives is a proper way of studying.

The following are the main objectives of my study:  To study the trend of export in the last five years  To study the sales trend of cotton yarn in the domestic market (a) Direct sale (b) Branch Office sale  To compare sale of different years upon 2001 -2010  To know the fluctuations in the sales of the company from 2001 to 2010

40

SCOPE OF THE STUDY

Every project work has its own scope. My study of VPL is helpful to know its sales in domestic and export market from last five years. With the help of this study we come to know the rises or fall in the sales. It is helpful for company to take steps to improve its sales and profits.

41

METHODOLOGY
The study of selling trend of VPL, Bathinda was carried out relaying on my study and information gathered from

primary as well as secondary sources.

The primary sources include direct conversation with the company officers of different departments and staff. The secondary sources include company records, files and

reports different web sites etc.

42

INTODUCTION ABOUT THE SALES ANAYLSIS

Every organization devises various controls measures to supervise its activities. Some of the tools of control are command in all organizations & some organization may devise special measures to suit their particular

requirement according to the nature their business. There are some formal tools of controls such as job description, organization chart and office manual. There are still another set control tools such as sales audit, sale ma\means weaknesses, analysis to sale and cost analysis to and find which out provides strengths to the

manager

opportunities

threats

organizations. By using the above different tools of the controls, the sales manager can locate the defects and take corrective steps to remove the shortcomings and improve the situation and ton up the functioning of his department.

43

Sale analyses is detailed is detailed study of sales volume performance to detect strengths and weaknesses. If sales managements depend slowly on summary sales data it has no way to ev aluate it -Sown activities and those of the sales force. The fact that sales increase by two percent over last year but profit increases by 1 % would be cause for the concern but of no help in determining how to reverse the profit decline. Sales analysis provides additional

information for example that the increased sales volume came from products carrying a lower than average gross margin. Sales analysis inv olves a systematic in depth study in sales volume operations. This is also called self-analysis. The sales analysis is carried out because the sales management wants to know how for the sale programmed was effective and how; far the performance of the sales force was satisfactory. Sales analysis gives detailed and additional information about the sales performance, so that sales management' arrives at proper conclusion and takes

44

appropriate steps to improv e the situation. Sales analysis is ingot undertaken most of the information will lie hidden in Nemours sales records. Some companies do not maintain detailed sales records. Accept what account dept. and the sales inv oice record. But some companies maintain records in great details. They maintain records by records b products by types of customers, by sales territories, by individual sales

analysis. The original sources of data for sales analysis are the sales inv oices of the customers. Now a day's detailed information is fed to computers in easily retriev able form in tapes or data processing cards. The main purpose of sales analysis is to bring out

strengths and weaknesses of the sales operations. It also brings out opportunities form competitors. It throws light on different aspects of sales efforts. Analysis of products answers the questions as to what products are sold and how much too each product I sold.

45

SALES OF COTTON YARN IN DOMESTIC MARKET

Domestic dispatches of finished goods are made in coordination with Marketing Department Ludhiana. Contractors are entered into with dealers, consignee agents by Marketing Department Ludhiana, on rates decided in Monday Meeting of Marketing Department of whole Vardhman group for sale of finished goods. In branch offices like of Delhi, agents enter into contracts with the customers. Daily, dispatch program is taken from Ludhiana on phone, which is confirmed in writing in shape of daily dispatch advice later on. Arrangement of vehicles for different stations, as per dispatch advice is made in coordination with transporter with whom freight rate for each and every station is finalized for one year. Domestic circle to which VPL sells its finished goods consists of: 1. 2. Direct Sales Brach Office Sale

46

Direct sales are those, which are made directly to the customers from VPL itself No. agent is involved here.

Vardhman has its branch office in certain cities like Delhi, Ludhiana where it has its agents who enter into, contracts with, the customers and accordingly VPL dispatches the finished goods to the branch office. From here, the agent delivers the goods to its customers.

47

TREND OF EXPORTS IN LAST FIVE YEARS

VPL is a major exporter of cotton yam of the Vardhman group. Exports are handled by the export cell, which procure orders from overseas customers/parties. On receipt of the production programs from the export cell, production of that count is started according to the dispatch schedule i.e., production of the count that has to be dispatched first is started before others.

Before making export dispatches, 24 hrs notices is given to range office. VPL handles two types of exports: 1. 2. DIRECT EXPORTS. INDIRECT EXPORTS.

Direct exports are those whose production is started on receipt of an order by a customer/party/company. Indirect is made to the agents abroad who then sell the yam to the customers. VPL exports cotton yam to international markets like Singapore, Bangladesh & Sri Lanka.

48

LIMITATIONS
1. Limited time 2. There is not proper marketing from Bathinda unit; it is done by corporate office. 3. Source of data collection is secondary has limited. 4. No direct contact with customers.

49

SUMMARY OF THE STUDY

First of all we visited the VPL Unit and got information about the whole unit and production System. There are total 3 units which produced the different verities of cotton yarn namely 1. 2. 3. 4. Carded Combed Polyester Cotton Yam Tyre Cord

VPL produced 100% cotton yarn products. Which provide the excellent quality. To ensure quality to its custo~ers the group has received ISO-9001-2000 certification. The VPL produced 50 tones production per day. Capacity of Cotton Spindles is approx. 75000 in the unit. It is to be, mentioned here that the marketing of the unit is in the hands of Company. Domestic circle to which VPL sells its finished goods consists of. (1) Direct Sales (2) Branch Sales

The VPL also export their production at International level Singapore, Sri Lanka & Bangladesh.

50

FINDINGS FROM THE STUDY

1.

The production of the cotton yam is affected due to natural calamities like drought, Water Logging, Hale Storm and Drizzling.

2.

Domestic sales increased in 2002 03 but it is decreased in 2003 04 and 2004 05 and it was highly increased again in 2005-06 and 2006 07

3.

In the present time the cotton Seed of B.T. Cotton Seed is came in the market it gives quality raw material.

51

SUGGESTIONS & RECOMMENDATIONS

1.

The company should consider for direct domestic marketing of their products.

2. 3.

The company should use qualified labor. The company should provide more and more information on its web sides

4.

To open more branches for production and make more counters for marketing

5.

Management should make the proper use of inventory control techniques like fixation of minimum, maximum and ordering labels for the proper production.

52

CONCLUSION

From the study I have concluded VPL has strong position on the market due to quality and variety of cotton yarn supplied by it. To improve the present level of quality of yarn being manufactured and to upgrade the technology its continuously in the process of modernization

The whole production of the unit is based on cotton crop and it affected by the natural calamities like draught, water logging, drizzling and hail storm etc. It is based on seasonal raw material. The production of product is based on the production of raw material.

So the reason of increasing and decreasing the domestic and direct sale the affect on the source of raw material (cotton). But presently there is more demand of cotton yarn and the units production and sale is increasing day by day. So the unit started 25000 spindles from Oct 2006.

53

BIBLIOGRAPHY

Books
Philip Kotler, Garry Armstrong Principles of Marketing, Prentice Hall India

Journals & Newspapers

Business line, Times of India, The Hindu.

Websites
www.google.com www.vardhman.com www.oswalgroup.com

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