INDUSTRIAL PROFILE

1.1 International Scenario

Clothes are an epitome of a culture. People in different parts of the world have their
own styles of dressing which symbolize their culture and status. The last two centuries
have seen an upsurge in the use of manmade textiles like polyster, nylon, PP, acrylic etc
in almost every part of the world.

Forty years ago, the industrialized countries dominated global exports in this area.
Today, developing countries produce half of the worlds textile exports. Moreover, the
economic performance of the apparel and textiles industry in developing countries has
large impacts on employment opportunities, especially for women. Though Ready-made
garment (RMG) industry caters to one of the basic needs of human beings, it came into
existence as an industry,( i.e. the manufacture of garments using industrial methods of
production) only at the turn of the 20th century with the introduction of sewing machine
on a commercial scale. In India too, though it is considered an offshoot of our textile
industry which dates back to about the middle of the nineteenth century, and though of all
the manufacturing activities in the economy it calls for ordinary technical skills and low
capital investment, there was no ready- made garment industry worth the name till about
the dawn of Independence (1947). A widely accepted definition of Ready Made Garment
Industry is contained in the International Standard Industrial Classification of all
economic activities adopted by the United Nations including the ILO and followed by the
Government of India. It indicates that those establishments which do not make fabrics or
knitted fabrics but only cut and make garments out of them, could be covered under the
garment industry.

Global Evolution of Clothing Industry

There were various stages - from a historical perspective - where the textile
industry evolved from being a domestic small-scale industry, to the status of supremacy it
currently holds. The cottage stage was the first stage in its history where textiles were
produced on a domestic basis. During this period cloth was made from materials
including wool, flax and cotton. The material depended on the area where the cloth was
being produced, and the time they were being made. In the later half of the medieval
period in the northern parts of Europe, cotton came to be regarded as an imported fibre.




During the later phases of the 16th century cotton was grown in the warmer climes of
America and Asia. When the Romans ruled, wool, leather and linen were the materials
used for making clothing in Europe, while flax was the primary material used in the
northern parts of Europe.

New innovations in clothing production, manufacture and design came during the
Industrial Revolution - the new wheels, looms, and spinning processes changed clothing
manufacture forever. In the later phases of the 20th century, shuttles that were used in the
textile industry were developed and became faster and thus more efficient. This led to the
replacement of the older shuttles with new ones.1 Thus, modern techniques, electronics
and innovation have led to a competitive, low-priced textile industry today, offering
almost any type of cloth or design a person could desire.

Outsourcing in the textile and apparel industry began in the late 1950s and 1960s
when Western buyers turned to Japan for the procurement of good quality fabric and
textiles at low costs. Later, the motivation of outsourcing to developing countries was not
driven by cost considerations alone; rather it followed as a response to change in the
structure of demand as well. Garment industry worldwide has been undergoing
significant restructuring since the final phaseout of the Multifibre Arrangement (MFA)
on January 1, 2005. The changes have been taking place in terms of relocating production
sites on the one hand and coping with the new competition on the other

The Indian textile market and its future growth potential has been captured aptly by
the Italian Trade Commissions observations made in 2009 reproduced as follows :

Clothing, textile and fashion accessories form 39 per cent of the Rs 55,000 crore
organized retailing in India.
Consumer spending on apparel in India has grown over the last five years,
touching the global benchmark of 5 per cent of the total income
Europe continues to be India's major export market with 22 per cent share in
textiles and 43 per cent in apparel; the US is the single largest buyer of Indian
textiles and apparel with 19 per cent and 32.6 per cent share respectively.
Readymade garments are the largest export segment, accounting for 45 per cent of
total textile exports and 8.2 per cent of India's total exports.

Future

The demand for ready-made garments in rural India will surge at an annual
rate16.50% to reach Rs. 42,918 Crore or US$10.41 billion by 2010.



Readymade garments exports from India are expected to touch US$ 14.5 billion
by 2009-2010 with a cumulative annual growth of 18 to 20 per cent, according to
Apparel Export Promotion Council.
The Indian fashion industry is expected to rise at a stupendous pace of 22.67%
through 2012

There are several Readymade Garments centre in India, of which the major ones are
Mumbai, Coimbatore and Tirupur, Ahmedabad, Ludhiana, Bangalore, Indore. It was
thought expedient to focus on two of these in the present project- Tirupur, which is in the
process of expanding its existing base, and Bangalore, which is an emerging centre that
has grown at an accelerated pace over the last few years and has a dominant presence of
women workers.

1.2. National Scenario

The textile industry including readymade garments occupies a unique position in
the Indian economy. Its predominant presence in the Indian economy is manifested in
terms of its significant contribution to the industrial production, employment generation
and foreign exchange earnings. The RMG or also called as the apparel sector is the final
stage of the textile value chain and the maximum value addition takes place at this stage.
In India RMG industry is fragmented and pre-dominantly in the small/scale sector.
Therefore, the sector is low investment and highly labour-intensive industry. This
industry is environment friendly as it is least polluting and it could provide employment
to the rural population, as this sector does not need sophisticated skill sets.

The RMG industry contributes around 8 per cent of Indias exports, 7 per cent of
industrial output and is the largest employment generator after agriculture. It contributes
about 14% to the industrial production and about 4% to the GDP. It has immense
potential for employment generation particularly in the rural and remote areas of the
country on account of its close linkage with agriculture. The contribution of this industry
to the gross export earnings of the country is about 37% while it adds only 1 1.5% to
the gross import bill of the country. It is the only industry which is self reliant and
complete in value chain i.e. from raw material to the highest value added products i.e.
garments/made ups. As a corollary to this the growth and promotion of this industry has a
significant influence on the overall economic development of our country.

Indias textile products, including handlooms and handicrafts, are exported to
more than a hundred countries. However, the USA and the EU, account for about two-



third of Indias textiles exports. The other major export destinations are Canada, U.A.E.,
Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc.

Structure of the Industry

Production Units Garment production units in India are spread across the country
but mainly concentrated in manufacturing clusters. The clusters are also specialized in
terms (a) types of garments manufactured (either woven or knitted) and (b) variety of
products produced (i.e. Mens Womens of Childrens). Major manufacturing centres
(19) are Kolkata, Mumbai. Tirupur, Indore, Banglaore, Chennai, Okhla, Gurgaon, Noida,
Jaipur, Ludhiana, Bellary, Kanpur, Ahmedabad, Jabalpur, Salem, Erode, Madurai and
Nagpur.

Number of Units-Estimated number of units in 19 centres are 33400, that account
for 95% of total production of the country. Almost 92% of total units situated in the
following 12 bigger centres account for 85% of total production.

Challenges for the Industry

Labour supply Garment industry depends on migrant labourers. Labour comes
from UP and Bihar. However, large clusters like Tirupur, Kolkata, Chennai etc. depend
upon local labour force, from nearby villages, due to easy availability. There is greater
tendency to employ contractual labour rather than permanent labour. The wages paid are
as per the prevailing minimum wages standards. The average reported wage rate is
Rs.4000 per month for the labour. One of the major problems faced by the industry is
huge shortage of appropriately trained manpower.

Fragmentation the key problem

According to industry associations, the garment industry in India has not grown to
its potential and the main reason for this is the fragmented structure of the industry.
Smaller sizes of the production units has led to several drawbacks for the industry such
as-

Uncompetitive scale in globalized environment
Low technological development
Lower production
High raw material cost.






Human Resource Development

There is a gap of 2,50,000 managers between the availability and requirement of
personnel in the areas of management, merchandising and vendor management. To
bridge this gap, the Government has set up

1. Sardar Vallabhhai Patel Institute of Textile Management (SVPITM), Coimbatore

2. Institute of Apparel Management (Through AEPC), Gurgaon

These institutes are expected to create managerial cadre professionals in the apparel,
textiles and fashion retail sectors.

3. Apparel Training and Design Centres (ATDCs) for creating skilled manpower

Apparel Training & Design Centres (ATDCs) are running various courses/
programmes to meet the skilled manpower requirements of the textile industry, especially
apparel, in the field of design, merchandising and marketing. The Apparel Industry
employs approximately 6 million workers, of which approximately 3 million are
employed in the export sector. Fifty two Apparel Training and Design Centres (ATDC)
are being run by the Apparel Export Promotion Council (AEPC). ATDCs have trained
over 21,000 workers since inception.

1.3 Garment Industry in Tirupur

Tirupur, an obscure town in Coimbatore District in Tamil Nadu has been placed in
the knitwear map of global garment industry, apart from catering to the whole India. The
first knitwear unit in Tirupur was set up in 1925 but the growth of the industry was slow
till late 1930s. A series of strikes in late 1930s in knitting factories in the neighbouring
towns of Salem and Madurai resulted in the opening of new firms in Tirupur.
Subsequently, it emerged as the prominent centre for knitwear in South India by 1940s.
In 1942, only 34 units were engaged in the production of knitwear. All these units were
composite mills and the production was carried out in the same unit . There are also
references to some units performing specific tasks / operations like bleaching and dyeing,
located in the larger units. By 1961, the number of units rose to 230 and till early 1970s,
the industry catered only to the domestic market. These units were mostly composite
mills without any subcontracting system of production. It was in the 1980s, the export
market began to expand and subsequently Tirupur emerged as the largest exporter of


cotton knitwear from the country, accounting for roughly 80 percent of the total cotton
knitwear exporters.

There exist local representative institutions and support bodies that initiate the
development of the knitwear sector in Tiruppur. Textile Committee under the Ministry of
Textiles, Apparel Export Promotion Council (AEPC), The South Indian Hosiery
Manufacturers Association (SIHMA), Tirupur Exporters Association (TEA), Knit Cloth
Manufacturers Association (KCMS) are some of the most important associations
operating in Tiruppur extending a trade related help to the entrepreneurs.

Tirupur is now a leading exporting centre of knitted garments and undergarments.
It is a well integrated cluster with maximum number of units in to garment making
followed by knitting, dyeing and bleaching, fabric printing, other ancillary units and
compacting and calendaring units.

Since Tirupur is an export oriented cluster, machines used at various stages of
production are largely imported to match the international standards of production.
Different types of machines are imported from Europe/USA and Far East like
Japan/Taiwan/Korea. Of late Tirupur exporters have started using machines of Chinese
origin due to cost considerations. TUF & EPCG schemes are used extensively to import
technology. Exports through Buying Houses in India and direct exports to
importer/wholesaler in India are the preferred channels of distribution. However, there
are several units who are using commission agents. Some units are also directly targeting
retailers abroad.



Chapter -II

COMPANY PROFILE

The project entitled Organizational Study on MARUTHI KNITTERSS
(HOSIERY MANUFACTURERS & EXPORTERS), TIRUPPUR help me to know
more about the functions, structure, policies and different procedures of that organization.
The above said company is a partnership firm and has been into exports for the last
14years. They are the largest knitters in Coimbatore, with over 180 employees and

8million USD$.


Maruthi was founded by Mr. Sathish and began garment business on 1999 as
manufacture and exporter. Maruthi Knitterss, Hosiery manufacturers and Exporters
company was started as a Partnership Firm in the year 2001. They are one of the
leading garment manufacturer and exporter in India. We have own Knitting, Printing,
Washing, and cold Pigment dye unit. Maruthi Knitterss are doing all type knitted and
woven garments. Like Knitted T-shirts, Polo-shirts, Pants, Woven boxer shorts, Kids
styles. We have well experienced for washing garments,(acid wash, Stones wash, Denim
wash) and Cold pigment dye, Garment dyed. They are specialized for emblissement
works.

Maruthi Knitterss production capacity is 50,000pcs/month. We have well set-up
and communication for our raw materials suppliers and processing suppliers. The main
motive is On- time delivery, Keep Quality, Continuously improvement and Satisfaction
Service to Customers.

Vision

To offer the world the best in knitter.
To create customers satisfaction and hence customer delight.
To provide quality service and products.
Mission

Quality
Service
Consistency



Quality

Maruthi Knitterss is an ISO 9001:2000 certified company; it follows international
standards of quality.

Consistency

On- time delivery, Keep Quality, Continuously improvement and Satisfaction Service to
Customers




2.1. Infrastructure

Maruthi Knitterss, Hosiery manufacturers and Exporters are located in Tirupur,
Tamilnadu. The total built up area is 2500 sq meters, apart from this the company directly
employs over 180 employees and at least another 100 are outsider of the company.

Contemporary technology and state of the art infrastructure make the difference in
providing an environment which inspires high level of performance. They use tools such
as Computer Aided Layer Optimization in order to check material consumption and costs
and to remove wastages. Their offices are equipped with complete amenities to facilitate
a relaxed and cheerful working atmosphere for the employees.

2.2. Technology

It is Maruthis policy to make sure that every part of the product is tested to
comply with the material requirements of the importing country, customer and end user.
They use services of the best testing labs in ITS, SGS & others. Our technologists check
that the materials and reports are as per various parameters defined by our customers and
only then give the approvals.


2.3. Quality Policy & Principle

Internal charter of ethics

A charter of ethics was written by us in order to guarantee a responsible approach
and the level of service that results from it.

Independence and integrity of our teams

We also assure a daily monitoring of inspectors in order to detect any
insufficiency in this essential point of its charter

Compliance with local standards

The local laws are well known and compliance with them is carefully analyzed.

2.4. Product Profile

Be it fashionable ensembles for Kids, trendy wear for women or Comfort wear for
men, Maruthi knitterss have them all. In addition to mass production of fashion garments
for men & ladies, all types of knit and woven. Our special products Corporate wear,
Organic & Mercerized wear and Promotional & Event product etc.

Mens wear

Casual wear
Sleep wear
Sports Wear
T-shirts
Polo-shirts
Pants
Woven boxer
Jackets
Sweaters
Shorts


















Chapter - III

ORGANISATION STRUCTURE

3.1. Importance of organization

A group of people who are bound together in formal relationship to achieve a
common goal Examples are schools, hospitals, institutions, social clubs etc. Organization
is a structural process of defining and grouping and regrouping the activities through
organization. In an organization manager is able to perform the function like planning,
organizing, directing and controlling which are the basis for management.

If an organization is not properly designed and reveals a number of problems then
the division will become in effective. The result will be slow and poor division, lack of
co-ordination of activities, conflict among members. Therefore leadership, motivation
and co-ordination should be achieved. Types of organizations are formal, informal and
project organization.

3.2. Organization structure of Maruthi Knitterss

The formal structure of Partnership Firm with two partners head Maruthi
Knitterss, one partner (Admin and Finance) and second Partner (technical)

The concerned department heads have under them a team of specialist officers
designation as managers. Below them are assistant and helpers.

Departments and their functions

1. Purchase Department
2. Production Department
3. Personnel Department
4. Accounts Department
5. Marketing Department
6. R &D Department
7. Quality Control Department
8. Supply Chain Management
3.3. Departments and their functions

1) Research and Development department
The R & D Department is under the partner (Technical) and is headed by
qualified developers who reports directly to R & D assistant manager and the line
is followed up by the chain of command.


1. The R& D dept was established in the year 2005 as a separate Business Unit at
Maruthi Knitterss, to satisfy the growing need to develop and control textile
raw material quality.
2. Maruthi Knitterss has established itself as a harbinger of new yarn quality
developments, reliable source of quality yarns & textile materials.
3. Research & Development in collaboration with key fibre suppliers, and top
spinning companies new yarn quality & set standard.
4. Finalizing fibre and yarn process parameters for selected quality.



2) Design & Development department
A manager heads this department and he has under him fashion designers
and draft men. He is responsible for the following:
1. The design team develop those trends in close collaboration with our customer
according to their specific market needs.
2. They constantly work on new fabrics and trims and experiment with new
washes and finishes to suit our customer styles.
3. All fabrics, artwork, trims and labels are customised to fit this collection, to
inspire our customer and match their market segment.


3) Supply Chain Management
1. The aim is that through improved visibility, tracking and performance, impacts
and risks will be better managed in the supply chain. Sustainability and
business resilience also drive innovation.
2. To further sustainability in our supply chain, we are developing tools and
programs, and working with our partners, to improve working conditions and
environmental performance, and also provide sustainable sourcing options.
3. They will continue to work with our customers, suppliers and industry partners
to improve our collective knowledge and capabilities around sustainable
sourcing, products and packaging.