ashish report

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International School of Informatics & Management Mahaveer Marg,Mansarovar Jaipur Summer Internship Report On “To analyze the domestic yarn market and to understand Customer expectation from Bhilwara spinners limited” Submitted as a partial fulfillment for the award of the Two year Full Time Program of Master Of Business Administration By: Ashish Chechani MBA 2009-11 Academic Guide: Dr. Kawaldeep Dixit Professor (Marketing)

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Page 1: Ashish Report

International School of Informatics & Management

Mahaveer Marg,MansarovarJaipur

Summer Internship ReportOn

“To analyze the domestic yarn market and to understand Customer expectation from Bhilwara

spinners limited”Submitted as a partial fulfillment for the award of the Two year Full Time Program of

Master Of Business Administration

By:Ashish Chechani

MBA 2009-11

Academic Guide:Dr. Kawaldeep DixitProfessor (Marketing)

Guide from Company Mr. B.L. Jain

(Asst. Manager, Marketing)

Start Date for Internship: 17th June, 2010

Page 2: Ashish Report

End Date for Internship: 31st July, 2010

Preface

Training in business organization infuses among students a sense of critical analysis of

the real managerial situation to which they are exposed. Our institutions has given us opportunity

through training to be aware of and cope with fast rate changing technology, management

policies, quality and productivity etc. This is a bold attempt to bridge the gap between the

‘world of work’ and ‘studies imparted in the institutions’.

This training enables me to apply theoretical knowledge to practical situations, appreciate

the sense of responsibility, importance of discipline, punctuality and the psychology of worker

and their habits which makes me more professional and near to the world of technology and team

work. Industrial training brings out better citizens, better technocrats and better diplomats out of

us.

I was lucky to get an opportunity to work in one of the top limited sector industries, i.e.

LNJ Group, Bhilwara. The purpose of this training was to gain knowledge about the industry,

how it works and also to see the environment of the industry. I joined the training not only for

these purposes, but also to learn something about operation of the machines and construction of

spinning machines.

This report is a written account of what I learnt and experienced during this period. I

wish, those going through it, will not only find it readable but will also find useful information

for future references.

Page 3: Ashish Report

Acknowledgement

No task is a single person effort. Same is with this project. Thus I would like to extend

my sincere thanks to all those people who helped me in accomplishing my project.

My report initiated with Mr. N. K. Jain (CEO) and Mr. R. N. Gupta (technical head),

Bhilwara Spinners Limited who accepted me in spite of my inexperience in the field and

gave me the opportunity to work and learn with them in BHILWARA SPINNERS

LIMITED, Bhilwara.

Mr. B. L. Jain, Asst. Manager (Marketing), Bhilwara Spinners Limited., deserves my

heartiest gratitude for this liberalism towards the scholars. He is kind enough to give

necessary guidance and data related to company which helps me in completion of this

project in a planned and systematic manner and I am highly indebted to him.

The report would not progress further and reached its conclusion without the active

support of Dr. Kawaldeep Dixit, Professor (Marketing), International School Of

Informatics & Management, who provided me with all the needed time, attention and

direction.

I also hereby thank my survey respondent as they are most

valuable and indispensible part of my project and also my relatives which also take time

to share their experience.

Words to scarce to me in expressing my indebted gratitude to my

father Mr. A. K. Chechani, and my mother Mrs. Tara Devi Chechani, who landed me

their helps to make this project successful venture.

Page 4: Ashish Report

Ashish Chechani

Page 5: Ashish Report

Self Declaration

I, Ashish Chechani, student of ISIM, Jaipur hereby declare that I have followed all

guidelines in completing my summer internship with Bhilwara Spinners

Limited., Bhilwara during (17th June 2010 to 31st July 2010).

I further declare that this report as a partial fulfillment for the award of the Two year

Full Time Program of Master Of Business & Administration is my original work .

Ashish Chechani

MBA (MARKETING)

ISIM,Jaipur

MBA/09/1710

Page 6: Ashish Report

Executive Summary

Customer satisfaction is the prime requirement of an organization to succeed in achieving its

goal and to expand a business or to sustain it one must know that what are customer requirement

and efforts a company is taking in turn to satisfy their needs and demand. So my training project

objective is also in line with the company main objective that is To analyze consumer

expectation from a yarn supplier of Bhilwara domestic market and to find out positioning of

BHILWARA SINNERS LIMITED as a supplier.

I basically adopted primary research in turn to understand the consumer perception. In this

primary type of exploratory research I used subjective interview methodology

After my research I found that Consumer considers Bhilwara spinners as a medium priced yarn

supplier and expect more prompt services from the company and my analysis also show that if

company want to cater more customer they should adopt all type of payment mode and my

finding also reveal the fact that most of consumer prefer more than one suppliers so we should

try to snatch other supplier’s consumer base and customers prefer it over other local suppliers

and it has reasonable price which is justified.

At last of project I recommended that Company has relevant pricing strategy and customers are

satisfied with quality given by them at the reasonable price so they should continue this pricing

strategy. And also as RSWM is the different brand under same umbrella of LNJ group so they

have 2 different brands catering to serve two different segment of consumer so overall LNJ

group strategy is justifiable but one third part of portfolio that is lower grade quality product is

not formed by them so they should also try to cover this segment under their umbrella brand.

They should also examine Production features properly in turn to increase quality parameter by

reasonable cost reduction.

Page 7: Ashish Report

Content

S.NO Topic Page No.

1 Indian textile industry 7

2 Textile industry in Rajasthan 9

3 Textile industry in Bhilwara 10

4 LNJ group highlights 11

5 Different companies of group 13

6 Company profile 16

7 Department distribution 17

8 Material passage 18

9 Details of machine 19

10 Raw material details 20

11 Product profile 22

12 Supply chain 23

13 Market analysis 24

14 Project objective 25

15 Research methodology used 26

16 Research objectives 27

17 Research questions 28

18 Analysis of data 30

19 Limitations 36

20 Conclusion 37

21 Recommendation 38

22 Other learning 39

23 Conclusion 43

24 References 44

25 Appendix 45

Page 8: Ashish Report

Indian Textile Industry Scenario

Page 9: Ashish Report

The textile industry occupies a unique place in our country. One of the earliest to come into

existence in India, it accounts for 14% of the total industrial production, contributes to nearly

30% of the total exports and is the second largest employment generator after agriculture. The

textile policy aims at achieving the target of textile and apparel exports of US $50 billion by

2010 of which the share of garments will be US $25 billion. The main markets for Indian textile

and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and

Japan.

The Indian textile industry has been undergoing a rapid transformation and is in the process of

integrating with the world textile trade and industry. The change is being driven by the

progressive dismantling of the MFA and the imperatives under the WTO norms.

Indian textile industry has some inherent strengths:

Tradition in textile and long operating experience.

Large and growing domestic market.

Strong raw material base.

Production across entire textile value chain.

Stable, low risk economy, safe for business growth.

Easy availability of abundant raw material like cotton, wool, silk, jute.

Widely prevalent social customs.

Variety of distinct local culture.

Constructive geographic and climatic conditions.

There is no denying the fact that india is competitive enough and will become even more

competitive. China has probably already reached its peak and further improvements may not be

dramatic, henceforth. In spite of the Chinese dominance, india has a fair opportunity to grab a

substantial stake in the projected garment market share.

Page 10: Ashish Report

According to PHD Chamber of Commerce and Industry (PHDCCI), post-MFA, India’s market

share is in the US is expected to go upto 15% from the present

4%. In the EU, the market share increase is expected to be 50% from the current 6% to 9%.

Today, modern techniques, electronics and innovation have led to a competitive, low-priced

textile industry offering almost any type of cloth or design a person could desire. With its base of

low cost labour.

Indian Textile targets to be achieved by the end of Eleventh Five Year Plan (2007-2012)

Market size => US $115 billion.

Export target => US $55 billion.

Domestic Market => US $60 billion

India’s market share in world textile trade to grow from 3% to 8%.

12 million additional jobs.

Investments => Rs. 150,600 crore.

India is presently exporting garments worth US $6 billion, whereas with the WTO regime in

place, India can increase the production and export of garments to US $18-20 billion within the

next 5 years. India should take adequate measures for capturing its market by promoting the

development in this sector. Concerted efforts are needed in cotton research, technology

generation, transfer of technology, modernization and upgrading of ginning and pressing

factories and an aggressive marketing strategy.

Page 11: Ashish Report

Textile Industry in Rajasthan

During the recent years Rajasthan has emerged as one of the leading cotton producing State of

the country with about 14 lacs bales of cotton produced in the year 1998-99. The textile sector of

Rajasthan occupies a pride of place in the Indian Textile Industry. State is a leader in

manufacture of blended yarn to the extent that it contributes about 40% of the total synthetic

blended yarn export of the country. The state has good presence in cotton yarn, fabric and

synthetic fabrics.

Page 12: Ashish Report

The state is a major producer of wool, producing about 16 million kgs per year, which constitutes

about 42% share in India’s total wool production. The wool produced in the state is of crude

quality and mostly suitable for carpet yarn, though with some blending in small quantities with

imported merino wool are also used for fabrics.

The Textile sector of Rajasthan occupies a pride of place in the Indian Textile Industry. It

contributes to about 40% of total synthetic blended yarn export of the country. As on March,

2000, there were 146 large and medium textile units running in the state. The total investment in

these units is Rs. 3673.30 crores and they provide direct employment to about 81,425 workers.

Taking into account the forward and backward linkages textile industry stands as the second

largest employer in the state, next to agriculture. The textile units in the state have about 10 lacs

Spindles and about 5000 Roasters.

Within Rajasthan the Textile sector directly employs about 3 lacs people and 5.6 lac persons are

indirectly associated with it. The significance of the sector in the State’s economy can be gauged

by the fact that an estimated 10% of State’s population is dependent for their livelihood on this

sector. The textile industry of the State has a very wide network of forward and backward

linkage. It is typified by the growth of man-made textile and garment producing industries.

Page 13: Ashish Report

Textile Industry in Bhilwara

Bhilwara city had the birth of the textile industry way back in 1961 when LN Jhunjhunwala set

up his first unit to manufacture synthetic yarn. The unit is known as Bhilwara Spinners Ltd.

Today Bhilwara is a prominent and leading manufacturer, exporter and supplier of world-class

Suiting’s, Flock Fabrics and Yarn.

Page 14: Ashish Report

The state of Rajasthan has a deep rooted tradition for textiles. 69 out of 892 spinning mills in

India are located in Bhilwara district, Rajasthan which consists of Spinning, Weaving, Dyeing,

Processing and Printing units. Majority of these industries are affianced in the process of

manufacturing synthetic blended yarn which accounts to 40 percent of the total yarn

manufactured all over India. It has an investment of $ 53 million USD with an employment of

59,383 people in the textile industries. Bhilwara has emerged as India’s largest manufacturer of

fabrics. Also known as Textile City of India, it is a famous industrial town in Rajasthan. It

encompasses 50 percent of the total polyester fabrics and suitings manufactured in India. The

state Government of Rajasthan has proposed to allot 300 acres of land in Bhilwara and about 100

apparel companies have applied for land to start their industry over here.

Bhilwara emerged as India’s largest manufacturer of suitings, fabrics and yarn. Its share in the

polyester/viscose fabrics (suiting) sector is around 50% in India. The phenomenal growth of the

textile industry is something interesting if seen in the context of a similar scenario elsewhere in

the country. There is nothing special about Bhilwara to have come to the top position in the

country except the fact that the entrepreneurs are a unique lot with enthusiasm to have something

of their own even though the initial troubles happen to be serious

Page 15: Ashish Report

The Group Highlights

The founder of the LNJ BHILWARA GROUP is SHRI LAKSHMI NIWAS

JHUNJHUNWALA.

At the age of 19, LNJ set up a jute export company and within 3 years it had become one of the

India’s top ten concerns. Diversifying into Iron & steel scrap and manganese & iron ore, in few

years became 3rd largest iron exporter.

In 1960, the man might have been gazing the stars, set a company that was to be his real future,

his dream, Rajasthan Spinning & Weaving Mills Ltd. The flagship of the LNJ Bhilwara Group

starting from sunrise sector of textile, the group diversified from cotton to synthetic & worsted,

woolen & knitted garments. Simultaneously, the group made major roads into Graphite,

Electrodes, Sponge iron, Oil drilling, Hydropower & Financial services. Today the group is all

set from a future with Petro chemical & Tele communications.

Page 16: Ashish Report

The LNJ Bhilwara Group as it stands today is a well diversified Rs.2000 crores multi-product

conglomerate with over 20,000 strong work force, of which over 3000 are highly qualified

personnel in technical and managerial fields. The Group has an outstanding distinction of having

as much as 45% of its turnover coming from exports to both developed and developing countries.

The Group is India’s largest producer and exporter of polyester/viscose yarns. RSWM being

the first to create a market in Europe polyester/viscose, blended yarn and amongst the first three

to produce blend for the first time in the world.

HEG has the largest Graphite Electrodes manufacturing plant in whole of South East Asia

& Middle East.

RSWM and Maral were India’s first composite textile and knitted textile units to get the coveted

ISO 9002 certification. HEG, BSL, Bhilwara Spinners and Bhilwara Processors have also earned

this certification. Bhilwara Melba De Witte Ltd. is ISO/TF 16949 certified.

RSWM is the winner of SRTEPC Highest Export Award (Award instituted by Synthetic and

Rayon Textiles Export Promotion Council) for polyester/viscose yarn exports for the last 11

consecutive years.

Maral is India’s fully integrated 100% EOU cotton knitwear unit and winner of TEXPROCIL

Silver trophy in 100% EOU / EPZ category. Maral has also been awarded Silver Trophy by

AEPC.

Maral is the recipient of Rajiv Gandhi National Quality Award for 1998.

HEG –Rishabhdev unit bagged National Export Award for the year 1997-98. HEG Rishabhdev

unit also bagged SRTEPC Excellence Award for highest production in export of 100%

Polyester spun yarn in the year 1996-97.

Page 17: Ashish Report

BSL – received the National Certificate of Merit for the year 1996 for outstanding export

performance.

RSWM has been accorded the “Golden Trading House” status.

Maral and HEG have been accorded the Trading House” status.

BSL and Bhilwara Spinners have been accorded the “Export House” status.

Bhilwara Spinners Ltd. has been accorded the prestigious “Niryat Shree” – Certificate of

Excellence for Outstanding export performance during 2000-01.

Page 18: Ashish Report

SOME WELLKNOWN BRANDS

The Group boasts of some well known brands, which include Mayur

Suitings, BSL Suitings, La Italia Fashions Buddy

Davis and Geoffrey Hammonds Superfine Suitings Leisurewear.

Different Companies of the Group:

Rajasthan Spinning & Weaving Mills Ltd. (RSWM)

Plant Location Product Range

1. Gulabpura (Rajasthan) Synthetic, Regenerated Cellulosic Blended

Dyed Yarns & Fabrics.

2. Banswara (Rajasthan) Synthetic , Regenerated Cellulosic &

Cotton Blended Grey Yarns.

3. Mandpam (Rajasthan) Cotton Melange Yarns

4.Rishabhdev Rajasthan) Synthetic, Blended & Grey Yarns

Page 19: Ashish Report

HEG Ltd. (HEG)

Plant Location Product Range

5. Mandideep (Madhya Pradesh) Graphite Electrodes

6. Durg (Madhya Pradesh) Sponge Iron

7. Durg (Madhya Pradesh) Waste Heat Recovery Power

8. Tawa (Madhya Pradesh) Hydro Electric Power

Maral Overseas Ltd. (MARAL)

Plant Location Product Range

9. Maral Sarovar (100% EOU) Cotton Yarns, Cotton Knitted Fabrics &

Cotton Knitwears

10. Jammu (J&K) Cotton knitted fabrics & Knitwears

11. Noida Knitwears and Sweaters

Bhilwara Spinners Ltd. (BSL)

Plant Location Product Range

12 Mandpam (Rajasthan) Yarns, Worsted & Synthetic Fabrics,

Readymades and Accessories

Page 20: Ashish Report

Bhilwara Spinners Ltd. (BHILSPIN)

Plant Location Product Range

13 Bhilwara (Rajasthan) Synthetic, Blended Grey & Dyed Yarns

Bhilwara Processors Ltd. (BPL)

Plant Location Product Range

14 Mandpam (Rajasthan) Processing of Synthetic & Worsted

Fabrics, Tops Fibre Dyeing.

Bhilwara Melba De Witte Pvt Ltd. (BMD)

Plant Location Product Range

15 Mordi – Banswara (Rajasthan) Specialised Automotive Fabrics &

Furnishing Fabrics

Page 21: Ashish Report

Malana Power Company Ltd. (MPCL)

Plant Location Product Range

16 Malana – Kullu (Himachal Pradesh) Hydro Electric Power

AD Hydro Power Ltd.

Plant Location Product Range

17 Allian – Duhangan

(Manali – Himachal Pradesh)

Hydro Electric Power

Indo-Canadian Consultancy Services Ltd.

Plant Location Product Range

18 Noida (UP) Power Engineering Services

Page 22: Ashish Report

Maral Fashions

Plant Location Product Range

19 New Delhi Readymade Garments Retailing

Bhilwara Scribe Pvt. Ltd.

Plant Location Product Range

20 Bhopal IT Enabled Service

Corporate OfficeOffice Location

21 Noida (Uttar Pradesh)

Regional / Marketing Offices:Office Location

22 Mumbai

23 Kolkata

24 Bangalore

Page 23: Ashish Report

Company Profile

Bhilwara spinners limited, subsidiary of LNJ group, is a spinning unit located in the heart of

bhilwara city i.e. in Gandhi nagar .

Bhilwara spinners limited is having a installed capacity of 33,696 spindles which may be

categorized as 13,440 spindles in unit ‘A’,11,616 spindles in unit ‘B’ and 8,640 spindles in unit

‘C’. The total daily production is about 25 tons that can be referred to as around 9.0 tons for unit

‘A’ around 8.5 tons for unit ‘B’ and around 8.0 tons for unit ‘C’.

Currently grey yarn is being spun in the mill in the count range of 6 s to 60 s (single yarns). The

yarn produced is supplied to internal market though centers at Bhilwara, Calcutta, Delhi and

Surat. While the yarn is also exported to Brazil, South Africa, Indonesia and Bangladesh.

Page 24: Ashish Report

Department Distribution

The functional areas are classified in following three heads:

a) technical : the areas under this head are –

1. production

2. maintenance

3. engineering

4. SQC and research and development

b) commercial : the areas under this are –

1. accounts

2. commercial

3. material and stores

4. purchase and supplies

5. management information system

c) personnel and administration –

1. industrial relations

2. HRD

3. administration

4. public relations

Page 25: Ashish Report

Material Passage (Form) appendix 1

Godown(Bales)

Blender Passage (Open Form)

Layering (Open Form)

Blender Passage (Open Form)

Blow Room (Lap)

Carding (Card sliver)

Draw Frame (D/F Silver)

Speed Frame (Roving)

Ring Frame (Single Yarn)

Autoconer (Cone)

Cheese Winding (Cheese)

T.F.O.(Cones) Ring Doubler(Ring Doubler Bobbin)

Cone Winding(Cone)

Page 26: Ashish Report

Packing

Details of Machines

The details about machines are:

S.No. NAME OF MACHINE MANUFACTURER NO. OF

MACHINES

1. Blender Trutzschler 2

2. Blow Room Trutzschler 2

3. Carding m/c Lakshmi-Rieter 16

4. Draw frame Lakshmi-Rieter 9

5. Speed frame Lakshmi-Rieter 5

6. Ring frame Lakshmi-Rieter 18

7. . Autoconer Schlafhorst 7

8. Cone winding Cimmco 2

9. Cheese winding Text tool 4

10. T.F.O. Vijay Laxmi 5

Star Volkman 6

Muratec 6

11. Doublers Mafatlal Engg. 3

Tex tool 5

RTE 200 4

Page 27: Ashish Report

Raw Material

The Polyester Fibre is supplied by:

S.No. Name of Industry Place

1. Reliance Industries-RECRON fibre

Bale of 375 Kg

Hazira

Patalganga

Bombay

Barabunki

2. Indo-Rama Industries

Bale of 350 Kg

Indore

3. JCT

Bale of 325-350 Kg

Hoshiarpur

4. Orissa Synthetics – Jekester Orissa

5. Swadeshi Polytech – Jaieelene

Bale of 275 Kg

Ghaziabad

Page 28: Ashish Report

Polyester fiber is also imported from companies like INDORAMA, RELIEANCE from:

1. Germany

2. China

3. Canada

4. Indonesia

Viscose is supplied by GRASIM Industries, Nagda.

The Polymer Filament is supplied by:

S.No. Name of Industry Place

1. Reliance Industries –RECRON filament Hazira

2. DCL Polyester Limited Mouda

(Nagpur)

3. Asia Polytex Silvassa

4. Silvassa Industries Pvt. Ltd. Silvassa

Page 29: Ashish Report

FIBRES USED:

Denier – 1.2 , 1.4 , 1.5 , 1.75 , 2.0 , 3.0 , 6.0 D.

1.5 , 2.5 , 3.0 D TBL

Length - 40 mm, 44 mm, 51 mm.

Acrylic and flex are also spun in the mill.

Page 30: Ashish Report

PRODUCT PROFILEGREY YARN

Page 31: Ashish Report

Supply Chain of Bhilwara Spinners

Page 32: Ashish Report

Suppliers:

Raw material that is fibre is transfer from suppliers like viscose from Grasim nagada ,etc. other

than this there are other suppliers for different fibres , machine parts etc. transportation take

place through trucks.

Manufacturing unit:

Mostly transportation takes place through trolleys and conveyer belt. When they get converted in

cone or cheese form they are either stored in warehouses by transporting through trolleys or if

this batch is to be exported they are packed in containers in warehouses.

Distributors:

Local deliveries are made through loading tempo or trucks.

National deliveries are done through trucks.

Export deliveries are made by truck to sea port and then in ship.

Page 33: Ashish Report

Market Analysis With Respect To Product Demand

According to the overall view of the market players of yarn buyers and producers 2/30 P/V

(65/35) GREY YARN and 2/30 Polyester 100% GREY YARN consist around 65% of market

demand of yarn. Other then these two count textures yarn has also prominent market share of 15

% and rest of the proportion is constitute by various type of yarn. As Bhilwara textile arena is

framed for suiting fabric that’s why the above mention counts are prominent in market.

In Bhilwara there are many domestic players as well as big framed players making suiting

fabric and selling them in local market, national market as well as in international market. As the

demand of

1. 2/30 P/V (65/35) GREY YARN

2. 2/30 Polyester 100% GREY YARN

3. Textures yarn

Overall constitute 80% of market share that’s why all manufacturers who are supplying in the

Bhilwara domestic market produce mainly above mention three types of yarn.

Page 34: Ashish Report
Page 35: Ashish Report

Process

RAW MATERIAL

Common raw materials in synthetic spinning are Polyester, Viscose, Acrylic, flex fibers.

These are received in the form of bales in grey conditions.

MIXING

Fibres in required ratio are taken opened and blended in Blenders. During blending water

and antistatic agents are sprayed on fibres. In grey mixing tinting colours are also mixed in the

spraying solution to provide identification of the mixing ,then material send to bin room. This

mixing is toppled once or twice to ensure proper blending of the fibres.

BLOW ROOM

The mixing is further opened so wastes like hard chips are removed from the mixing, the

tuft size is reduced and better blending of fibres is achieved. The mixing is converted into lap to

be fed into Cards. In new process Chutefeed (Aerofeed) system the opened fibre is directly fed

into Cards without lap formation.

CARDING

Feeding by lap or in opened stage from chute the fibres are individualized, hard chips

short fibres and entanglements are removed in the form of droppings, fly and flat strip

respectively. The product of this Card sliver.

DRAW FRAME

The Card sliver is subjected to doubling and drafting process to parallelise the fibres,

removes micro-dust and make a uniform sliver.

Page 36: Ashish Report

SPEED FRAME

The Draw frame sliver is drafted, slightly twisted and wound on Speed frame bobbin,

called roving.

RING FRAME

Spinning of roving into yarn of required count and twist is done here.

WINDING

Defect present in the spun yarn are cleared by Electronic Gauges and the cleared yarn is

wound on cones. The yarn is jointed by knots or spliced for getting a knotless yarn.

CHEESE WINDING

Two or more yarns as required for plying are wound parallelly on cheeses.

DOUBLING

In doubling twist is imparted to the yarn wound on the cheeses. There are two processes.

TFO : In this process twisting and winding on cones is done simultaneously to provide

knot free yarn.

RING DOUBLING : Here only twist is provided to the paralled wound yarn. This yarn is

then would on cones at Cone winding. At Cone winding the yarn is cleared of doubling defects.

PACKING

All cones after enough checking are packed in cartons or bags as per the established

packing process and sent to yarn godowns.

Page 37: Ashish Report

PROJECT

Project Objective

To analyze consumer expectation from a yarn supplier of Bhilwara domestic market and to find

out positioning of BHILWARA SINNERS LIMITED as a supplier.

Why this Project?

Bhilwara domestic grey yarn market has cut throat competition so to exist in this scenario or to

capture more market share there is need to understand clearly the requirements of the consumer

in turn to achieve high satisfaction level by delivering them their perceive value of the yarn as a

product. In addition to it we can say that pricing is a big issue here for the yarn buyers as they are

playing with very narrow margins. So study of pricing strategy with respect to customer by

analyzing the actual customer perception is also need.

AssumptionAccording to the overall view of the market players of yarn buyers and producers 2/30 P/V

(65/35) GREY YARN and 2/30 Polyester 100% GREY YARN consist around 65% of market

demand of yarn. That’s why I have taken base of these two counts for the study of overall market

scenario.

Research Methodology Used

Page 38: Ashish Report

I basically adopted primary research in turn to understand the consumer perception. In this

primary type of exploratory research I used subjective interview methodology because

1. As yarn buyers out here who are my respondents are more comfortable with subjective interaction

2. When you try to find the consumer perception some time facial expression and body language also help us to understand the perception in more efficient way.

3. Subjective interview also give the room to the respondent to express his feeling to the fullest

4. Some time it also helps us to know some other aspect which is very useful and new to us.

Coverage

Company has more than 100 domestic consumer data base who are my prospective respondent.

These all domestic consumer are in radius of 15 kilometer from the centre of the Bhilwara city. I

came across different types of respondent. Different in field of

1. income level

2. age

3. experience

4. capital invested in business

5. education level

I meet people by taking advance appointment and also attain some unofficial get together where

I meet people in group of 4 to 10.

Page 39: Ashish Report

Sample SelectionMy sample selection method is non probabilistic judgmental and some time convenience one. It

is judgmental as my company mentor select on the basis of this judgment and some time

convenience as I also interviewed some of my relatives engage in this type of business. My

sample size is 50.

Time PeriodMy research is carried out for period of one and an half month in which I took survey for one

month. During this period I personally meet with people by taking advance appointment through

telephonic conversation. Subjective interview time period varies from 15 to 45 minutes

according to time availability of respondent and his willingness to respond.

Research Objective

1. To find the consumer expectation from a supplier

2. To find where consumer place Bhilwara spinners limited and how they categorized it

3. To find whether strategies followed by Bhilwara spinners are in alignment with its

positioning and ways of improvise on this alignment.

4. To find whether consumers are price sensitive or not.

Page 40: Ashish Report

Research Questions As it was a subjective interview the basic questions asked are as follows:-

(1) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (in two condition when

price is same or if price is as prevailing in market)

A. RSWM

B. BHILWARA SPINNERS

C. INDORAMA

D. SANGAM

E. JAIDEEP GLASS

F. P/V TEXTILES

G. OTHER LOCAL SUPPLIER

(2) Preference of the suppliers of 2/30 Polyester 100% GREY YARN (in two condition when

price is same or if price is as prevailing in market)

A. RSWM

B. BHILWARA SPINNERS

C. ANKUR

D. SANGAM

E. SANGHI POLYESTER

F. BHAWAN SYNTHETICS

G. OTHER LOCAL SUPPLIER

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(3) Preference of the parameter on the basis of which you evaluate the suppliers

A. Quality of Product

B. Services Provided

C. Credit or Cash Discount

D. Brand Name

E. Price of The Product

(4) Do they prefer brand when it came to quality?

(5)What mode of payment is prefer by them

1. Cash Payment

2. Credit Payment

3. Advance Payment

4. Down Payment

(6) Did they prefer the one supplier or many supplier for the same product i.e. yarn?

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Analysis of Subjective Interview

1) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (when price is same)

Response: 100% respondent says that they will go with RSWM and INDORAMA

2) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (if price is as prevailing in

market)

Response: All the respondents say that it depends on several factors

i) Type of customer base the buyers have and their customer requirement (BASED ON

PRICE)

a) Low Range Fabric: Prefer JAIDEEP GLASS, P/V TEXTILES,

OTHER LOCAL SUPPLIERS

b) Medium Range Fabric: Prefer SANGAM SPINNERS and

BHILWARA SPINNERS

c) High Range Fabric: RSWM and INDORAMA

ii) Based on availability of yarn.

iii) Based on their fund availability.

iv) Based on service provided by suppliers (Prominent deliverer services)

3) Preference of the suppliers of 2/30 Polyester 100% GREY YARN (in condition when price is

same).

Response: 100 % respondent says that they will go with RSWM.

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4) Preference the suppliers of 2/30 Polyester 100% GREY YARN (in condition when if price is

as prevailing in market).

Response: All the respondents say that it depends on several factors

i) Type of customer base the buyers have and their customer requirement (BASED ON

PRICE).

a) Low Range Fabric: Prefer ANKUR , SANGAVI , BAHAWAN

SYNTHETICS, OTHER LOCAL SUPPLIERS.

b) Medium Range Fabric: Prefer SANGAM SPINNERS and

BHILWARA SPINNERS.

c) High Range Fabric: RSWM.

ii) Based on availability.

iii) Based on their fund availability.

iv) Based on service provided by suppliers (Prominent deliverer services)

5) Preference of the parameter on the basis of which you evaluate the suppliers.

Response: 70% respondent support the following sequence of preference.

(a) Quality of the Product.

(b) Price of the Product.

(c) Service Provided.

(d) Cfredit or Cash Discount

30% respondent support the following sequence of preference

1 Quality of product2 Price of the product3 Credit or cash discount4 Services provided

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6) Preference of the mode of the payment

Response:

60% respondent says they prefer cash discount

40% respondent says they prefer credit payment

(These responses can change according to availability of funds)

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7) Preference given to brand name when there is need of quality

Response:

80% say YES

20 % say NO

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8) BRAND NAME market price is always higher. How much higher is justifiable.

Response:

100% say 1 rupee above the average market price

80% says 1.5 rupees above the average market price

60% says 2 rupees above the average market price

40% says 2.5 rupees above the average market price

0% respondent is ready to buy above 2.5 rupees above the average market price

(Condition apply)

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9) from how many suppliers they deal in general for the same product?

Response:

60% say more than 8 suppliers

20% say 4 to 8 suppliers

15% say 2 to 4 suppliers

5% say only one supplier

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Limitation

1. Limited scope of study – as only few aspect of marketing is covered.

2. Time constraints – two month time period is very less to learn nitty gritty of the

marketing practical aspect.

3. Limitation of survey and sample size– as subjective interviews bias us as we are not

able to use research tools to come on more precise and accurate result. As my sample size

is 50 and I think it is very small to conclude anything about the whole market.

4. Lack of transparency – some company policies and data are not revealed to us as they

are confidential.

5. Lack of willingness of respondent and environmental constraints – some time

respondent does not give proper reply either due to their willingness or due to

environmental constraints.

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Project Conclusion

1 Consumer considers Bhilwara spinners as a medium priced yarn supplier.

2 Company should facilitate consumer with all type of payment mode in turn to increase their

consumer base.

3 As most of consumer prefer more than one suppliers so we should try to snatch other supplier’s

consumer base.

4 Company should try to make their services more prominent intern to attract more consumer.

5 As RSWM is the different brand under same umbrella of LNJ group so they have 2 different

brands catering to serve two different segment of consumer so overall LNJ group strategy is

justifiable.

6 Customers prefer it over other local suppliers and it has reasonable price which is justified.

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Recommendation

1 Company has relevant pricing strategy and customers are satisfied with quality given by

them at the reasonable price so they should continue this pricing strategy.

2 As RSWM is the different brand under same umbrella of LNJ group so they have 2

different brands catering to serve two different segment of consumer so overall LNJ group

strategy is justifiable but one third part of portfolio that is lower grade quality product is

not formed by them so they should also try to cover this segment under their umbrella

brand.

3 Production features are to be examined properly in turn to increase quality parameter by

reasonable cost reduction.

4 They generally approach the already set costumer for the sales so they must try to snatch

the bigger costumer from others by making their services more prompt.

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Other Learning

1) How they decide monthly production schedule?As production is done at Bhilwara only combined demand from all depots are been asked so

that monthly production can be decided. There are 4 depots from where the monthly

Production is asked these four depots are

1. Bhilwara

2. Amritsar

3. Mumbai

4. Bhopal

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These depots are headed by marketing heads having experience of more than 15 years. My

guide has 18 year experience. After being inquire about the fore casting methodology he said

that most of time they forecast on the basis of their experience. These forecasts have the

“confidence limit” which generally varies from 80% to 85%. Then I asked him what factor

they take into consideration while forecasting then he mentions the following one-

1 Trend analysis – in which they try to find out which product has what proportion in their

previous sales.

2 Seasonal demand – as some product demand automatically generated due to their

seasonal requirement like plain yarn for school dresses, fancy yarn before diwali season.

3 External environment analysis – as now during recession they are lunching less new

product as they finding less scope for it , so no target of selling new developed products.

4 Cost benefit analysis – they find out which product give them maximum profit to them

and accordingly they try to push that product in market according to its market scope.

5 Production limitation – this factor is important as capacity and capability is also to be

taken into consideration.

They produce product under both strategy that is push back and pull back in ratio generally

of 80:20. (They produce 80% yarn according to their analysis of market and rest 20% of yarn

which is already sold).

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2) What are strategies followed by raw material supplier to gain the

market share?

During the course of discussion with the marketing head of the company I came to know that

suppliers like Grasim follow some innovative strategy to push their product into the market.

The policy follow by the Grasim industry is as follows-

The policy state that if a manufacturer only produce the yarn having viscous in blend equal to

or more than 35 % than they will give 10% cash discount to them. This attractive and unique

policy attract the manufacturer to make such quality of yarn as raw material cost comprises

of around 65% of cost and saving on part of it is profitable to manufacturer. On the contrary

if Grasim test the sample from market and find that proportion of viscous is not up to the

standard than Grasim back list the company and according to terms and condition of policy

manufacturer has to return back the one year availed cash discount and Grasim will never sell

the raw material to that company under this policy. One more clause of policy is that

company has to maintain this standard forever till it is dealing in manufacturing sector.

As a management student this policy of promoting the product is used by a company having

monopoly in supplying raw material and as viscous coat is high generally manufacturer try to

reduce its proportion from blend to reduce overall cost so in tern to generate demand for this

raw material.

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3) Personal Learning

I have learn many things from this training of two month but some of the lessons are

important which added a value in me and here by mentioning them to as my personal

learning

a) Patience – during my training tenure I learnt several thing which is part and parcel of

personal development and one of the most important aspect of it was patience. Many

time it happens when I have to wait for 1 – 2 hrs after been taken a prior

appointments from the costumer of Bhilwara spinners to know their view and even in

some cases after waiting so long when they call me to talk they say they can give only

10 min. some time I feel frustrated but this experience has added a one of the most

important quality to exist and grow in this corporate world.

b) Time management – as during training I have to take appointments in such a way it

should not get clashed with other one so it’s very tedious task to make a proper

working schedule by time management. Which task should be given more importance

and how much time should be allotted to it, each and every small part of the task as

thought me a important and unforgettable lessons.

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c) Communication skills – this was the one of the most valuable learning where I

came to know how to convince the people to react in a way you want to react the

subjective interview methodology as given me the chance to improvise my

communication skill and taught me the lesson when to say what and when keeping

yourself mum is beneficial. Other then this communicating through body language, to

understand others body gestures to know what exactly they want to communicate.

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Conclusion

My internship in BHILWARA SPINNERS LIMITED has been a fruitful and eye-

opening experience for me.

The training has given me a much-wanted feel of working with a big and a premier

organization like The LNJ GROUP. The people in the company are very good and always ready

to provide a helping hand whenever required.

After doing my training at BHILWARA SPINNERS LTD, I felt the importance of

training in industry and its practical applications. When I was studying the theories of different

concepts, I was thinking that how all these would be implemented. But after the training, I learnt

that how all these could be put to good use. It was the result of the training only that I got to see

the objects in real and practical use, which I had only read about and seen as 2-d objects in

books.

During my 60 days training in BHILWARA SPINNERS LTD, I got a chance to expose

myself to the industrial culture & work environment. This all happened due the co-operation of

the staff and the management, who helped me in gaining whatever knowledge I have today about

the production and management.

I came to know about various other management programs related to industry, which are

used for increasing the customer satisfaction and for improving the sales of goods. Moreover, the

training aims to bring out better citizens, better technocrats and better diplomats out of us.

At the end, I would like to conclude that the training is an essential part of the

management educational program. I should always pursue for the theoretical as well as the

practical knowledge, both of which are must for the foundation of a high building.

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References

1. http://www.processregister.com/Bhilwara_Spinners_Ltd/Supplier/sid22237.htm

2. http://business.vsnl.com/bhilwaraspinners/

3. http://www.lnjbhilwara.com/

4. http://www.bhilspin.com/