PRODUCTION REPORT On

THE STUDY OF PRODUCTION AND DISTRIBUTIONCHANNELS OFCHENAB TEXTILE MILLS, KATHUA (J&K)
(A unit of Sutlej ind. Ltd, K.K Birla Group)

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ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a great role in the success of any venture. At this level of understanding it is often difficult to understand the wide spectrum of knowledge without proper guidance and advice.

This report entitled "A STUDY OF PRODUCTION IN CHENAB TEXTILE MILLS" KATHUA (J&K) . I extend my sincere gratitude to MR.________________ and for granting me the opportunity to undergo my study in this organization and continuously guiding me throughout the span of my study .I am also thankful to all the team of this Unit. Who have given me their full cooperation and devoted their valuable time for rendering me their needy services and guidelines during the training period. With those sincere and precious efforts, I have been able to complete my practical training successfully.

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PREFACE
Practical training is an important part of the theoretical studies. It is of an immense importance in the field of management. It offers the student to explore the valuable treasure of experience and an exposure to real work culture followed by the industries and thereby helping the students to bridge gap between the theories explained in the books and their practical implementations. Training plays an important role in future building of an individual so that he/she can better understand the real world in which he has to work in future. The theory greatly enhance our knowledge and provide opportunities to blend theoretical with the practical knowledge where trainees get familiar with certain aspects of industries, like shop floor management, production process and industrial relations. I feel proud to get myself trained at Chenab textile mills (kathua). Chenab textile mills are the leading textile Company in India. I have taken up training in Marketing Department and have studied and explained the production and distribution channels used by Chenab textile mills. I availed this opportunity in a very satisfactory manner and have tried to cover each and every aspect that. I came across during my training period.

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MEANING OF CHANNELS OF DISTRIBUTION

Channel of distribution is the last component of the total marke ting process. After production, the product is delivered to ultim ate consumer and this is done throughmarketing intermediaries or channel of distribution. The word 'Channel' has been derived from the French word CANAL. It is a trade follows from the point of consumption. It is a trade link between producers and ultimate consumers and acts as bridge which connects two parties. The channels of Distribution include various marketing intermediaries or middleman like retailers and wholesalers but it does not include banks insurance companies etc. which render valuable marketing services but are not direct marketing intermediaries.

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ELEMENTS OF DISTRIBUTION CHANNEL

1)PATHWAY:-Distribution channel is a pathway through which products and services flow from manufacturer to consumer. 2)FLOW:-The flow of goods and services is sequential and usually unidirectional. 3)COMPOSITION:-It is composed of intermediaries also called middleman who participate in the flow voluntarily. 4)FUNCTION:-The intermediaries perform such functions which facilitate transfer of ownership and possession of goods and services from marketers to consumers. 5)OBJECTIVES:-Although channel components largely strive to achieve mutually acceptable objectives the manufacturers focus is on achieving corporate marketing objectives.

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TYPES OF DISTRIBUTION CHANNEL:Basically there are two types of distribution channel:1) Consumer distribution channel 2) Industrial distribution channel The Chenab textile mill also follow these two types of production and distribution system. 1)CONSUMER DISTRIBUTION CHANNEL:-

M A N U F A C T R E R
FIG:CONSUMER DISTRBUTION CHANNEL IN CTM DIRECT

C O N S U M E R

RETAILER (ZERO LEVEL CHANNEL) RETAILER WHOLESALER

(TWO LEVEL CHANNEL) WHOLESALER

AGENT

RETAILER

(THREE LEVEL CONSUMER)

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INDUSTRIAL DISTRIBUTION CHANNEL:- It is used or can be seen in case of industrial good where the buyers are less in numbers as compared to the consumer goods. There are three channels for industrial goods, which is described in the following diagram.

INDUSTRIAL DISTRIBUTOR

INDUSTRIAL MANUFACTURER CUSTOMER MANUFACTURERS REPRESENTATIVE

MANUFACTURERS SALES BRANCH

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IndianTextileIndustry
The Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the countrys total export earning and 4 percent to the Gross Domestic Product.In human history, past and present can never ignore the importance of textile in acivilization decisively affecting its destinies, effectively changing its social scenario. A brief but thoroughly researched feature on Indian textile culture

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PROFILE OF COMPANY

GATEWAY OF CHENAB TEXTILE MILLS (KATHUA)

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INTRODUCTION
A Chenab textile mill is one of the leading company in the textile industry. This companyis situated in the mid heart of beautiful city kathua. The Company believes that a very good quality yarn is a pre-requisite to produce quality finished fabrics. Since beginning the Company has always focused on innovation to meet the changing needs of the clothing & fashion industry.It specializes in producing blends of viscose staple fibre, polyester staple fibre, acrylic staple fibre, lycra, cotton, linen and wool. It has a total production capacity of 120 tons of yarn per day. It includes 90,000 tons polyester blended dyed yarns and 30,000 tons cotton mix yarn per day. It also specializes in producing various type of fancy spun yarns. 90% of our production consists of fibre-dyed yarns only. We are one of the largest single mill setup producing spun fibre-dyed yarns in Asia. They manufacture inter alias the following variety yarns: 100% Polyester 100% Viscose 100% Acrylic 100% Cotton Polyester/Viscose P/V/Acrylic P/V/Cotton C/Viscose P/V/High Twists

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Count Range 8's - 60's NE available in Fibre Dyed / Ecru in case of cotton system ring spun yarn and 6's-55's NE (10's-90's NM) in case of worsted system spun yarns. FACILITIES: Ring spinning with Reiter auto-leveler, draw frames and Autoconers with Uster-quantum clearers. We are using LR6s for Ring Spinning. We also produce compact yarn. THE RIGHT COLOUR: At Chenab (CTM) we do every effort to match the shade as per customers requirement. To achieve consistency throughout the batch, we offer fibre dyeing and we have created facilities for yarn dyeing.This mill is on the path of progress by its slogan: "WORK IS WORKSHIP K.KBIRLA GROUP

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I have undergone my training in the Chenab Textile Mills (A Birla Group), Kathua (j&k). because of the following reasons: It is leading firm in the textile industry. The company is a part of birla group.

Industrial houses of india The annual turnover is 48763 crore

It is a continuous developing company

Good image among customers

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REVIEW OF ALL DEPATMENTS

The Chenab Textile Mills is spread of canals, has been acquired on lease basis for a period of 99 years. It has been functioning smoothly and employs about 9000 workers and 750 staff members. Chenab Textile Mills has the following departments;

Marketing Department Sales & Excise Department Financial Department Raw Material Department Time Office Department Store Department Human Resource Department IT (Information Technology) Department Budget & costing Department Typing Department Report Section Process House Spinning Quality Control Department
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General Department Finishing Department Finishing Cotton Department Finishing Maintenance Department Mixing & Waste Department Building & Engineering Department Outstation Staff Department Watch & Ward Department Other Subordinate Departments.

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Organisation Structure
Organization is a group of persons working together to achieve a common goal. Organization indicates conscious combinations of systematic arrangement of various resources in the term 6 Ms

Men Machine Material Money Management information Marketing

An organization structure means establishment of a hierarchy according to the authority and responsibility. Every decision of work has to follow the channel and no activity of an enterprise can go out of it.

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BOARD OF DIRECTORS
Mr. K.K Birla Mr. K.R Podar. Mr. Arvind C Dalal. Mr. Malin Kant Dhiraj Dalal. Mr. V. K Khaitan. Mr. S. C Nagar. Mr. H. Nanjundian. Mr. G.C Sethi (Nominee ICICI). Mr. Naresh Chander Mohan. Mr. S.M Aggarwal. Mr. R.N Ladha. S K khandelia
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MANUFACTURING PROCESS
Raw material go down is for stocking of various types of raw materials i.e. cotton, staple polyester and acrylic etc. mixing department and blow room. Various types of fibers are mixed and blended and spinning processes start. The raw material is delivered from the machine in the shape of sheet roll i.e. in lap form. Carding the function of carding machine are further cleaning of impurities, dropping out short fiber and removal of immature fibers, carding machine are delivered fibers, which were in sheet form i.e. fedto machine. The machine has function to parallelism of fiber and blending for awareness.Super lap in this machine drawing cans are fed and super laps are produced.Comber super lap are fed in this machine to parallel cotton fiber and produce comb silver too further mix up and processed for manufacture of milling yarn on 100% combed yarn. Simplex draw frame fiber (silver) is fed into this machine and drafted to hankrocing according counts to be spun.

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OPERATION FLOW CHART

GODOWN

MIXING/BLENDER CARDING

BREAKER DRAW FRAME

FINISHER DRAW FRAME

SIMPLEX

RING FRAME

WINDING

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DOUBLING

REELING

PACKING

TO MARKET

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PROCESS OF SPINNING

(DYEING)

(BLOW DRY)

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(CARDING)

(DRAWING MACHINE)

(SIMPLEX MACHINE)
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(RING FRAME MACHINE)

(AUTO CONER MACHINE)

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(TFO TWISTER MACHINE)

(HAIRYNESS AND EVENNESS MACHINE)

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(USTER TESTER-3 MACHINE)

(COLOR MATCHING)

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(FINAL PRODUCT)

(PACKING CARTONS)

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COMPANY HISTORY
HISTORY AND DEVELOPMENT:
Initial capacity was 4000 kgs. Of staple yarn per day its initial capital was Rs. 83 lacks. In1973 it rolled to 98.84 lacks. In 1962, when CTM was installed; there was no railwaystation in J&k state. Raw material and the finished yarn were transported via Pathankot(app. 25kms. From kathua). Raw Material was purchased from various places like Bhatinda, Amritsar, Malot and Delhi. The cost of production was too high because of large expenditure on transportation of goods and raw material. The incentives included the continuous supply of electricity at very cheaper rates than the other states. The labour was also available at the comparatively cheaper wages. There is no source of raw material in J&K as the major agricultural production is rice, wheat and beans etc. Previously there was no market for the product-the finished goods, in the state but little consumption of the product has developed in the region of Samba and Srinagar. The main market at that time for selling the finished goods, staple yarn were Ludhiana, Amritsar, Panipat and Delhi. Initially the unit was producing only staple yarn but later on it diversified partially to cotton yarn production too along with the staple yarn.

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SOURCE OF RAW MATERIAL:

Raw material consumed by this mill is of two types i.e. Naturalfibre, man made fiber.The cotton fiber comes in the first category and polyester, viscose and acrylic comes insecond comes in second category. During the early Eighties, man made fiber wasimported from Japan, Italy and Yugoslavia. But now it is purchased form various part.Various sources of man made fiber are described below:-

Source of Polyesters:
Reliance industrial Limited, Bombay. Bongaigoan Refinery and Petrochemicals Limited, Assam. J.K Synthetics Limited, New Delhi. Indian Organics Chemical Limited, Bombay. Orissa Synthetics Limited, Bombay. Indorma Synthetics Limited, New Delhi.

India Poly Fiber Limited, Barabanki. Source of Acrylic:

Indian Petrochemical and & corporation Limited, Baroda. Indian Acrylic Limited, New Delhi.
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 J.K Synthetics Limited, New Delhi. Pashupati Acryl on Limited, New Delhi. Consolidated Fiber and Chemicals Limited, Calcutta. Acrylic Fiber, Kota

Source of Viscose
Grasim industries Limited , Nagada. S.I.V Industries Limited Udaipur and Coimbatore Sources of Black polyester: O.T.C., Orissa Indian Poly Fibre Limited, Barabanki(U.P) J.K Synthetics, Kota

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OBJECTIVES OF THE STUDY

Distribution channels play a very important role in achieving the marketing objectives of the company. Undoubtedly value utility is created by the manufacturer of a product or a service but time & place utilities are created by distribution channels. STUDY: - Channels of Distribution of Chenab Textile Mills.

Objectives of the Study:To study & analyze the channel of distribution of Chenab Textile Mills. 1. To find out the channel levels. 2. To study the Production system of Chenab textile mills (kathua) 3. To find out the number of intermediaries needed. 4. To determine the channel alternatives. 5. To study the relationship between Depots & Mill and Agent & Depots.

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RESEARCH METHODOLOGY
1. SOURCE OF DATA COLLECTION:Research has collected necessary information to fulfill this report through primary dataand secondary data. a)Primary Data :-This data has been collected from the field work i.e approaching thedistributors (Depot Managers) and agents through the questionnaire. Field Work for Primary Data: - The actual fields work as preceded by market study and through analysing the policy of organisation of distribution channels.The discussions made with Mr. Pawan prajapat, about the distribution channels andthe attitudes of Depot Managers and Agents helped to start the field work quickly.Two separate questionnaires were prepared (one for Depot Managers and another of Agents) and given to them to find out their views about the distribution channel of the company. b)Secondary Data: -This data was collected from the various sources such asannual reports, business magazines, newspapers, and from company records etc.Financial performance of CTM was collected from its annual report. From the business magazines and other books on Textile Industry, data was collected regarding on overviewed of Textile Industry and distribution channel system.Present work force of the
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company was collected from the company records.This data is collected from various sources such as annual reports and books from the company records. SCOPE OF THE STUDY:The research was conducted at Amritsar, Bhilwara, Delhi, Jaipur, Ludhiana, Meerut,Panipat, and Bhawani Mandi to study the channels of Distribution of Chenab Textile Mills (A Birla's Group). Two questionnaires were prepared for this, and were presentedto the Depot Managers and Agents. The purpose behind this was to identify the appropriate distribution channel and the intermediaries and to know whether they help the company in meeting consumer needs or not. The area of channel research included: 1) Identify the existing and potential distribution wise channel and unpraising their relative strengths and weakness in the context of the customer needs. 2) Identifying the appropriate intermediaries for product and determining their number and type.

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LIMITATIONS OF THE STUDY:1) As the market for the finished products of Chenab Textile Mills is a nation wide, the Depots are located in almost all the states of India, so it was practically impossible to survey all the depots of the company.

2) As the topic is vast, time was the main constraint for the study.

3) Senior officers of the company were very busy in their routine schedules and so it wasdifficult to convince them to spare sometime from the interview.

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Chenab Textile Mills is having the depots in the following places

1. Amritsar 2. Bhilwara 3. Ahmedabad. 4. Bhawani Mandi. 5. Baroda. 6. kolkatta. 7. Delhi. 8. Gorakhpur.

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