bombay rayon fashions lt1
TRANSCRIPT
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CHAPTER-1
INDUSTRY PROFILE
THE TEXTILE INDUSTRY
Overview of Global Textile Industry
The global textile and clothing industry was a US$453 billion
business and Comprised approximately 5.1% of total international
merchandise trade. The garment industry, one segment of the textile
industry, was a US$258 billion business in 2004 and comprised
approximately 2.9% of total international merchandise trade. The textile
and garment sectors are closely related, with textiles providing the major
input to the garment industry.
The labour intensive nature of the textile industry has caused it to
shift its manufacturing base several times during the last fifty years,
ultimately concentrating in those countries that offered the most
competitive labour cost structure. Developed markets such as in the
U.S. and Europe have started downsizing capacities in view of their
higher manufacturing costs compared to countries such as India,
Pakistan, China and Indonesia. This relocation of the industry is
expected to provide developing countries with an opportunity to
penetrate U.S. and European markets and to enhance their export share
in these markets. The migration of textile capacity, however, will be
influenced by objective competitive factors, and may be hampered by
domestic challenges and the relatively weaker infrastructure of the
developing countries.
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The Agreement on Textiles and Clothing (ATC) has also created
opportunities for developing countries. With full implementation of the
ATC on January 1, 2005, all trade barriers (both tax and non-tax)
imposed by the developed countries on imports from developing
countries were eliminated, giving way for a free trade regime in the
global textile trade. The ATC has opened the way for the most
competitive Developing countries to develop stronger clusters of textile
operations. Developing countries that have both downstream and
upstream facilities in textiles have an opportunity to prosper in this new
competitive environment.
Overview of Indian Textile Industry
The Indian textile industry occupies a unique position in the Indian
economy. Not only does it provide one of the most basic needs of
people, it operates as a self-reliant industry, from the production of raw
materials to the delivery of finished products, with substantial value-
additions at each stage. Textiles also contribute significantly to the
countrys overall economy. Currently, the textile industry accounts for
some 14% of industrial production and about 4% of Indias GDP. The
textile industry is the second largest provider of employment in India
after agriculture, providing direct 106 employments to about 35 million
people. Moreover, due to its close linkage with agriculture, the textileindustry also has immense potential for employment generation,
particularly in the rural and remote areas of the country, textile and
garments account for 16.63%. Consequently, growth and development
of this industry may have a significant bearing on the overall
development of the Indian economy. The India textile industry has been
fragmented historically. Recognizing the importance of this sector, the
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Indian government adopted a separate policy for development of the
Indian textile industry in 1985. Further, in 2000 the government
formulated a comprehensive textile policy aimed at developing a globally
competitive textile industry in India through modernization and
consolidation. This policy was called Vision 2010 and is intended to take
advantage of the free quota regime and increase Indias export turnover
to US$50 billion by 2010.
THE INDIAN TEXTILE INDUSTRY
The textile industry is one of the oldest and largest industries in
India and is highly fragmented. It is divided into four segments: spinning,
weaving, processing and garmenting. The Indian textile industry is also
comprised generally of two sectors.
The First, the organized sector, consists of modern and highly
mechanized mills. The second, the unorganized sector, consists of the
small-scale power loom operators and the highly fragmented handloom
(hand spinning and hand weaving) operators. The unorganized textile
sector has dominated the industry in India for several years and
accounts for some 93% of the countrys total fabric production. The
preferences and protections accorded to this sector by the government,
however, are being 109 eliminated now to give way for integrated
players in the organized sector, which will be able to modernize and
improve the quality of the weaving sector and give the industry a major
boost.
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Cotton abundance
India is the third largest producer of cotton, with the largest area
under cultivation, in the world. Since cotton is the key raw material for
the textile industry, India enjoys an advantage as a producer of low cost
raw material compared to other countries.
Low-cost skilled labour
In developed countries, the average cost of labour in weaving is
around 39% of the Manufacturing costs of a finished product, which issubstantially higher than the labour cost in India. Labour costs in India
are some of the lowest in the world. Indias lower labour costs give the
Indian textile industry an edge.
Designing skills and Fashion capabilities
It is generally difficult to forecast the demand for garments on aglobal basis, and Buyers therefore prefer to place small orders tied to
seasonal trends. Order flow in the Industry depends upon the ability of
manufacturers to recommend design changes that match trends in the
marketplace. Skilled designers play an important role by analysing
existing trends and creating new designs to suit the preferences of end
users. Indias ability to effectively translate the latest fashion trends into
final products gives the Indian textile industry an edge over other
countries.
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Fabric Production
Since 1999, the proportion of man-made fibers in Indias total
fabric production has continually increased. Total production of different
types of fabric along with their growth rates are shown in the following
table:
THE GARMENT INDUSTRY
The garment industry is one of the fastest growing industries in
India. This industry is structurally a labour-intensive, low wage industrywith some variations across market segments. Pricing in the industry
depends upon the extent of value addition in the end product, the more
the value addition the higher per unit price realization. The competitive
advantage of companies in this market segment is related to their ability
to create designs that capture tastes and preferences, and even better
influence such tastes and preferences in addition to cost effectiveness.
This industry has also seen a significant amount of relocation of
production and outsourcing to lower-cost producers. The size of the
Indian textile and clothing market is currently estimated to be US$46
billion. The domestic market accounts for approximately US$30 billion
and the export market is approximately US$16 billion.
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COMPANY PROFILE
Company History - Bombay Rayon Fashions Company was
incorporated as Mudra Fabrics Private Limited (MFL) on May 21, 1992.
On October 13, 1992 Company was converted into a public limited
company. Subsequently, on September 30, 2004, name of the Company
was changed to Bombay Rayon Fashions Limited (BRFL). In March
2005, with a view to consolidate business of the Group, Bombay Rayon
Private Limited (BRPL) was amalgamated with the Company and two
partnership firms of the Group, i.e, B R Exports and Garden City
Clothing were taken over by BRPL and BRFL respectively.
The Bombay Rayon Group
The Bombay Rayon Group started in 1986 with the incorporation
of BRPL. The Group is in the textile industry having facilities for
manufacture of fabrics, garments, design development, sampling etc.
Presently, BRFL Group is engaged in carrying out the activities of
manufacture of fabrics for domestic sale and export and manufacture of
garments for export.
The Bombay Rayon Group was promoted by Mr.Janardan
Agrawal. Subsequently Mr.Aman Agrawal and Mr.Prashant Agarwal,
sons of Mr.Janardan Agrawal joined the Group and are now in charge of
the management of the Company as well as BRFL Group companies.
Key Events in the History of the Bombay Rayon Group/BRFL Year Key
Events 1986 Bombay Rayon Private Limited, the first company of
Bombay Rayon Group incorporated for undertaking the business of
manufacture of woven fabric.
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Background and Inception of the Company
The Company is vertically integrated businesses engaged in the
manufacture of a variety of fabrics and garments and have state of the
art, modern production facilities. Its business was founded by
Mr.Janardan Agrawal in 1986, with the incorporation of Bombay Rayon
Private Limited. The Company started out producing cotton, manmade
and blended fabrics and has since expanded into manufacturing
garments, predominantly designer shirts for men, women and children.
The business has also commenced the manufacture of home textiles.
The business is focused on capitalizing on the vertical integration of
production process, from initial design to fabric production to the
manufacture of garments, taking advantage of the higher profit margins
offered by the designer shirt segment and the elimination of quotas in
the international marketplace. The Company is currently one of the
largest shirt manufacturers in India. At present, the Company exports all
of garments to the U.S. and Europe. It also sells fabrics in the domestic
and international markets. The Company has positioned itself as a multi-
product, multi-fibre and multi-market player, ensuring that target market
is a diverse mix of the domestic fabrics market and the international
fabrics and garments market. BRFL eight manufacturing units are
located in Navi Mumbai, Silvassa, and Sonale in the Thane district and
Bangalore. Each of these units are fully supported by facilities for
product development, design studios and efficient sampling
infrastructure, which allow to provide quality services to customers in
India and abroad. BRFL currently employ over 5,800 people. With
current manufacturing capacity, we can produce some 50 million meters
of fabric and 12 million garments annually.
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Nature of business
BRFL is a vertically integrated company engaged in the
manufacture of a variety of fabrics and garments at modern production
facilities.
Manufacture of Woven Fabric
For nearly two decades BRFL have been manufacturing woven
fabric. BRFL currently have weaving machines at three locations: the
village of Sonale in Thane district, Navi Mumbai and Silvassa. These
facilities manufacture woven fabric (both shirting and suiting) of different
varieties using cotton, man-made fibres and their blends. All of these
manufacturing facilities use modern, imported technology. In addition to
the weaving machines, BRFL have also invested in and installed at
plants modern preparatory machines used for winding, sizing, and directand sectional warping. The table below lists some of BRFL
manufacturing equipment.
Procurement of Grey Yarn and Yarn Dyeing
BRFL purchase grey yarn from various suppliers, depending on
the order volume for the manufacture of woven fabric. After
procurement, the yarn is inspected for quality and stored in the
warehouse.
BRFL use grey or dyed yarn depending on the nature of the orders
receives. If the yarn needs to be dyed, BRFL currently outsource that
process.
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Sizing and Warping
Some man-made warp yarns are sized to improve their strength
and to minimize breakage before weaving. The threads are compressed
to the proper size as they pass between rollers and then dried with large,
steam heated cylinders. Warping is a process by which yarn is
assembled onto a beam to be used on weaving machines. BRFL use
humidification plants to eliminate excess heat and provide humidity in
the weaving sections.
Weaving and Grey Fabric Inspection
After warping, the beam is put on the weaving machines, which
produce woven fabric. The fabric produced by weaving is grey in nature
and is not suitable for garment production or for any other purpose. It
has to be processed further to give it both an attractive look and stability.
BRFL inspect the grey fabric and mend blemishes wherever required.
Afterwards, BRFL pack the fabric and send it to the process house.
Fabric Processing and Finished Fabric Checking
BRFL Integrated Facility contains a modern process house, which
has facilities for washing, bleaching, mercerising, printing, dyeing,
calendaring, treating brightness, shrinkage and wrinkling. After such
processing, the fabric is sent to the packing units, where it is re-
inspected for quality and then packed and dispatched.
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Procurement of fabric
Depending on the customer order and design, determine the
appropriate fabric and fabric source and assess the quantity required,
based the consumption of fabric per garment. This assessment is made
by a team of skilled professionals. Most of the fabric BRFL use comes
from integrated manufacturing facility in Bangalore. Depending on
demand, BRFL also may source grey fabric from the local market or
finished fabrics from overseas markets.
Fabric Checking
The procured fabric is checked for both quality and quantity with
the aid of machines that help to visualise the extent of any damage that
may have been caused to the fabric and to minimise waste. The fabric is
then approved by the quality control department, which ensures that the
fabric matches the specifications stipulated by the production/designdepartment. Fabric accessories are also thoroughly checked for damage
and defects.
Fabric Cutting and Garment Stitching
The fabric is laid on a cutting table and then plotted according to
the specific patterns using CAD/CAM machinery. The system ensures
optimum usage of fabric, keeping cutting wastage at a minimum level.
After plotting, the fabric is cut by cutting machines. The component parts
of the shirt are then labelled for identification of size and shade. This
process is known as sorting. The sorted fabric is then bundled and sent
for fusing of the three main components, collars, cuffs and plackets. The
collars and cuffs are then attached to the main body of the shirt,
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completing the first stage. Then buttonholes are made and the buttons
are attached. This is performed with the help of specialized machinery.
After the manufacturing process is completed, the finishing process
begins. The shirt is manually checked for loose threads and other
blemishes. BRFL also use thread-removal machines, which vacuum
loose, superfluous thread from the shirt.
Final Inspection
All the garments BRFL manufacture are subjected to stringentquality control measures to ensure that every piece is manufactured in
accordance with the order specifications and requisite quality standards.
A separate quality assurance department is solely responsible for
ensuring that all finished goods are inspected and free from defects and
stitched according to specification. Any piece that varies from acceptable
limits is rejected.
Finishing and packing
After the products pass the quality inspection, they are then folded
as specified in the fold diagrams given to the factory. The necessary
folding accessories, such as stiffeners, colour inserters and barcodes,
are inserted, and the products are then packed in appropriately sized
vinyl zipper bags. The packaged pieces are placed in cartons for
shipping. In some cases, the goods are bulk-packed and shipped.
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Product Profile
FABRIC
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Every fabric in the Bombay Rayon collection must pass the
ultimate comfort test. Thats why we take the time and expense to
ensure it stays so unbelievably soft and comfortable. BRFL commitment
to genuine Bombay Rayon quality shows in the fabrics used. Along with
incredible fabrics and size offerings, at Bombay Rayon you'll find colour!
Vibrant and subdued, classic and contemporary, be on the watch for the
new Summer-Monsoon collection to unfurl short Bombay Rayon is a
leading supplier of quality fabrics worldwide. Bombay Rayon
understands the needs of this exciting industry and is committed to
supporting customer requirements. BRFL line combines quality and style
with an extensive offering of mens styling.
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Comfortable, pure and simple thats what the Apparel Collection
from Bombay Rayon is all about. Great clothes in easy, contemporary
styles made from soft, durable fabrics that youll enjoy wearing to the
office, on the road and over the weekendwhenever and wherever your
active life takes you.
BRFL collections are made up of true wardrobe essentials for
today's work environment. Whether you need a uniform for your team, a
gift or program item, Bombay Rayon's apparel collection has just the
right looks to fit both casual and more formal occasions.
The corporate casual collection reduces the time and effort spent
in looking great with natural coordinating combinations you'll love for
both work and leisure. In this collection of Bombay Rayon apparel, are
proud to offer apparels of the highest quality, with construction details
that are evident in every style we make. BRFL styles have the look and
functionality of outdoor apparel, but are made in everyday friendly
fabrics that easily transition into the workplace.
And the best part is, BRFL are priced right. Value is a large part of
the equation that's kept the Bombay Rayon Apparel Collection so
popular over the years. You can afford the best! For the most
comprehensive selection of quality corporate casual apparels, take a
close look at collection.
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Brief Description of different steps involved in garmentmanufacturing is as follows.
1. Procurement of fabric
Based on the order and design, the fabric and appropriate fabric
source are identified and the quantity required is assessed based on the
consumption of fabric per garment. BRFL have a team of skilled
professionals who makes this assessment. BRFL source majority of the
fabric required from our fabrics weaving plants at village Sonale in
Thane district, Navi Mumbai and Silvassa.
2. Fabric checking
Besides fabric, the accessories are also thoroughly checked for
defects and damages.
3. Fabric cutting and garment stitching
The fabric is laid on the cutting table and then plotted with the help
of CAD /CAM machinery as per the specific patterns. This is a system
for consumption planning and ensures optimum usage of fabric keeping
the cutting wastage at the minimum level. After plotting the fabric is cut
with the help of cutting machines. Different parts of shirt are then
stickered for identification of size and shade. This process is known as
sorting of fabric. The sorted fabric is then bundled and sent for fusing of
the three main parts namely collars and plackets. Then collars and cuffs
are attached to the main body completing the first stage
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4. Final checking of garments
BRFL subject 100% of the garments that manufacture to stringent
quality control measures. To ensure that every piece manufactured is as
per specification and the required quality standards, responsible for
ensuring that all finished goods are free from defects and stitched as per
measurement. This team compares the final product with the
measurement chart and style chart given by the design department. Any
variance beyond acceptable limits is rejected.
Manufacture of Made Ups Very recently have ventured into thevalue added segment of home textiles i.e. Bed sheets, fitted sheets,
pillow covers, Quilt covers, Duvet covers etc. mainly for direct exports.
The size of global trade in this segment is expected to be over US 12
billion. The market for home textile products as been growing at a rapid
pace over the last few years. With the removal of quota restriction the
segment offers great opportunity for growth.
CUSTOMERS PROFILE
U S A
U S A
U S A
U S A
U S A
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MARK ECKO U S A
Italy
Italy
Germany
Otto's Germany & Switzerland
Germany
France
Italy
UK
UK
UK
Kickers UK
UK
UK
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Fabric Processing
Fabric processing of largely woven fabrics is carried out at the
Company's integrated manufacturing facilities in Bangalore having
capacity of producing 55 million meters per annum. The expansion
programme being set up in Maharashtra is expected to increase the
capacity by a further 180 million meters per annum. The weaving
facilities for grey fabrics are located at Thane, Silvassa, Navi Mumbai
and Bangalore. New Greenfield facilities are now coming up in
Maharashtra. Finished fabrics are supplied in the domestic market
through 70 distributors and More than 2000 retailers under the brand
name Bombay Rayon and to the manufacturers of garments as per
their required specifications and designs. Exports are largely to the
Middle-East and EU countries.
Bombay Rayon Fashions Limited (BRFL) is India's foremost, vertically
integrated textile group, engaged in the manufacture, exports and retail
of high-end designer ranges of fabrics and garments. BRFL enjoys a
strong presence across the entire value chain of yarn dyeing, weaving,
fabric processing, design, garment manufacturing and retail. The
Company owns 13 manufacturing facilities, including 1 sampling unit
across the country.
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Garment Manufacturing
Casual and formal wear garments for men and women are
manufactured at different locations in Bangalore. These are exported tointernational buying houses and retailers across the EU and USA. While
the current facilities produce 30 million pieces per annum, BRFL various
acquisitions and expansion programme will substantially add to the
existing capacity. Leela Scottish Lace (P) Ltd, which was acquired in
August 2007, has 16 facilities at different locations with a total capacity
of more than 50,000 pieces per day. LNJ Apparel of RSWM Ltd, whose
operations we acquired in October 2007 has a capacity to produce 8000
pieces of casual and formal trousers, while at Maryan Apparels Private
Limited, which acquired in March 2008, has a capacity of 8,000 pieces
per day. With the expansion programme, the total capacity will reach to
75 million pieces per annum.
RetailThe Company recently acquired the European brand GURU and other
retail business of Jam Session Holding S.r.l (Jam). This acquisition will
enable BRFL to set its footprints into the global retail scenario and move
up the value chain to emerge as a significant global Textile entity.
Awards and Achievement:-
BRFL was aptly honored as the 'largest shirt maker in India'. BRFL
also received Dun & Bradstreet - Rolta Corporate Award as one of
India's top 500 companies.
BRFL Doddaballapur mill won the Prestigious National safety
Award for "Outstanding Performance in Industrial safety as winner
for the performance year 2008 based on the lowest average
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frequency rate." This award was presented by Mr. Mallikarjuna
Kharge, honorable Minister for Labour and Employment -
Government of India which was received by Vice President Mr. M
Gopi on 27 Sept 2010 at New Delhi.
Management Pattern by Bombay Rayon
SL. No. Name Designation
01 Janardan
Agrawal
Chairman / Chair
Person
02 Naseer Ahmed Jt. Vice Chairman
03 A R Mundra Executive Director
04 B S Bhesania Director
05 Pravin P Shah Director
06 Mukul Sarkar Nominee Director
07 Aman Agrawal Vice Chairman
08 Prashant
Agrawal
Managing Director
09 Uday Mogre Executive Director
10 S B Agarwal Director
11 Suresh
Vishwasrao
Director
12 M M Agrawal Director
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Area of Operations
Bombay Rayon Fashions Limited (BRFL) is Indias foremost,
vertically integrated textile group, engaged in the manufacture, exportsand retail of high-end designer ranges of fabrics and garments. BRFL
enjoys a strong presence across the entire value chain of yarn dyeing,
weaving, fabric processing, design, garment manufacturing and retail.
The Company owns 13 manufacturing facilities, including 1 sampling
unit across the country.
Opening of overseas offices
BRFL first wholly owned subsidiary was incorporated in the
Netherlands under the trade name of BRFL Europe B.V. BRFL Europe
B.V. has a showroom in Almere, which mainly caters to the needs of
European customers.
BRFL intend to open more overseas offices to make products
more readily available and accessible to customers. BRFL strategy is to
give overseas buyers the comfort and benefit of dealing with a company
with an international presence.
Competition
In the domestic market we face competition from other corporate
textile companies and from businesses that have capacity in fibres
(natural and manmade), yarn (spinning and text rising), weaving,
processing (yarns and fabrics) and garments but which do not have a
vertically integrated capacity in all areas (the "Non-Corporate Sector").
There are many medium and small size units manufacturing synthetic
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penetration of the retail market. BRFL garment customers include top
brands from the U.S. and Europe.
BRFL Market Segments
The following table indicates BRFL presence by market segment:
BRFL Distribution channels
Products/market segments Distribution channel
Fabrics-Domestic sale
Fabrics-Exports
Garments-Exports
BRFL-Marketing
agents/wholesalers/garmentmanufacturers/retailers
BRFL-Overseas garmentmanufacture/exporters/internationalbuying houses
BRFL-Buying houses/internationalbrands/Retailers
Domestic Sale of Fabrics to Readymade Garment
Manufacturers/Exporters
This is a fast growing market segment for the sale of fabrics. The
fabric is custom-made for garment manufacturers/exporters. These are
often bulk and repeat orders. In many cases, once the exporters have
approved the fabric, they refer the manufacturers directly to company for
their orders.
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trade fairs to develop new relationships and to keep abreast of
contemporary fashion trends.
Use of Information Technology ("IT")
BRFL are a technology-oriented organisation and use information
systems extensively across our operations. Most of critical functions,
such as operations, supply chain, finance and accounts and human
resources, are linked through a computer network. This has enabled to
improve operational efficiency, reduce costs of operations, and enhance
overall cost efficiency.
Fabrics Division: In fabrics divisions, BRFL have implemented a Textile
Enterprise Resource Package software system designed and
customized by M/S Prime Technologies, Coimbatore, India. The system
has fully integrated modules covering:
Indenting and Purchase
Stores Inventory
Production Planning and Order Tracking
Job work
Costing
Finished Product Inventory
Dispatch and Invoicing
Supplier and Customer Ledgers
The system covers all of operating units involved in the fabrics
line, such as yarn dyeing, weaving and fabric processing and all six of
fabrics warehouses, including grey yarn and finished yarn stores,
general stores and spares, dyes and chemicals stores, grey fabrics, and
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WORKFLOW MODEL
Longitudinal cutting
Longitudinal Hemming
Cross Cutting
Cross Hemming
Inspection
Packing
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The Environment
Good environmental practice has always been a primary
consideration in the development of business, leading to seek practicaland environmentally sound solutions to avoid waste production. BRFL
business activity inevitably has an impact on the environment. BRFL
seek to minimise this impact as far as possible by operating a policy of
sustainable development and constantly researching new ways to
reduce pollution, wastage and the amount of resources used, while
recycling as much as we can. BRFL environmental approach comprises
the following:
BRFL are committed to actions to restore and preserve the
environment;
BRFL are committed to developing safe and clean technologies using
the best environmental practices;
BRFL are committed to minimizing waste and pollutants, conserving
resources, and recycling materials at every stage of the product life-
cycle;
BRFL will continue to work with customers and public authorities,
vigorously pursuing the development and implementation of improved
technologies and products to minimize impact on the environment; and
BRFL will develop effective methods and procedures, and will promote
a culture in which all employees share their commitment.
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Future Prospects of the Company
Bombay Rayon Fashions Ltd plans to invest Rs 1,100 crore in
Maharashtra for setting up fabric and garment making facilities. Thecompany signed a memorandum of understanding with the Government
of Maharashtra. New facilities will come up at Tarapur, Islampur,
Ichalkaranji, Latur, Nanded, Osmanabad and Amravati. About 32,000
direct and 50,000 indirect jobs will be created. The company has Rs 400
crore as equity capital; the balance will be obtained as debt, which has
already been tied up. Yarn dyeing and fabric processing will see aninvestment of Rs 450 crore each while garment manufacturing will get
Rs 200 crore. Production at two of the garment plants at Osmanabad
and Ichalkaranji in Maharashtra has already started.
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CHAPTER 2
ORGANISATIONAL STRUCTURE
According to Waterman, organization change is not simply a matter of
structure, although structure is significant variable in the management of
change. Again it is also not a simple relationship between strategy and
structure, although strategy is also a critical aspect. In their view
effective organizational change may be understood to be a complex
relationship between strategy, structure, system, style, skills & shared
values. The first three elements-strategy, structure &system areconsidered the "hardware" of success. The next four style skills, staff,
and shared values are called the "software".
BRFL STRATEGY:
1. To strengthen the fabric business in order to have full control of entire
fabric supply chain- from yarn dyeing, weaving to processing of fabrics.
They intend to achieve this through implementation of new project
facilities. This would not only help them to achieve total quality control at
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ORGANISATIONAL STRUCTURE
MANAGING DIRCTOR
GENERAL MANAGER
PURCHASE
DEPT
ERCHA
DISER
EPT
HRDSTORES
DEPT
MRKTNG
DEPT
MAINTAINA
NCE DEPT
PRODN
DEPT
FINANCE
DEPT
QC
DEPT
MASTER
TAILOR
HELPER
MASTER
HELPER
SENIOR
MERCHAND
ASST MERCMANAGERS
STAFF
ASSISTANTS
CHECKINGDEPT
EACH BATCH
CHECKING DEPT
DEPT-TOTAL BATCH
SUPERVISORS
MANAGER FINISHIN
INCHARGE
IRON
DEPT
CHECKIN
DEPT
STAIN REMOVER
KHAJA &BOTTON DEPT
PACKING
DEPT
ADMIN
TRIM
DEPT
FABRIC
MAINTAI
NANCE
MEDICAL
TEAM
MANAGE
RS ASSIST
FINISHIN
G DEPT
PRODUCTI
ON BATCH
CUTTING
SECTION
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Organisational System:
At BRFL, internal control systems and procedure are adequately
commensurate with the size and structure of the business. The
operating and business control procedures have been planned and
implemented in a manner that ensures efficient use of resources, as well
as compliance with procedures and regulatory requirements. The
Company has set up its own internal audit department and has also
engaged a firm of Internal Auditors to carry out audits extensively
throughout the year with the objective of testing the adequacy and
effectiveness of internal controls and recommending improvements. The
Audit Committee hold discussions with auditors periodically about
internal control systems, the scope of audit including the observations
and reviews of the quarterly, half yearly and annual financial statements
before submission to the Board. The Audit Committee ensures
compliance of internal control systems.
Management system for Human Resources:
Facilities seeking to gain and maintain certification must go beyond
simple compliance to integrate the standard into their management
systems and practices.
Technology Initiatives:
Bombay Rayon Fashions Limited has partnered with Datatex and
SAP to implement a companywide Enterprise Resource Planning tool
(ERP) to cover all textiles and garmenting processes under one roof.
Datatex specializes in the Textile and Garment industry. Today there are
over 11500 workstations using datatex ERP in 38 countries in 14
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different languages. Its customers include some of the worlds largest
and most important textile manufacturers. Datatex serves its
international customers through its offices in Italy, Israel, the USA,
Germany and Switzerland.
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The other leading companies coming up to set up their projects in the
Park includes Raymonds, Gokaldas Images and Himatsingka Seide.
Bombay Rayon Group established by Mr.Janardan Agarwal in 1986 with
a modest beginning in manufacturing of fashion fabrics at present is
considered amongst Indias leading manufacturers and exporters of
fashion fabrics and garments with a State-of-the-art manufacturing
facilities at New Mumbai, Silvassa, Sonale and Bangalore fully backed
by the facilities of product development, design studio and efficient
sampling infrastructure to provide the quality service to its customers in
India and abroad.
Presently the group has a strong presence in fashion fabrics and
garment segment and is catering to various international brands from
Europe and U.S.A. such as C & A, DKNY, Liz Claiborne, Wrangler (VF
Group), Federated Stores, Tom Tailor, Guess and Kiabi. With multifold
expansion of garment capacity on the anvil, negotiations are on with
premium labels in international market, said Bombay Rayon Fashions
MD Mr.Prashant Agarwal. The main reason that the group is able to
attract such well known names in fashion garments, is the groups ability
to offer fabric collections based on seasonal fashion trends and colour
choices, expertise in design of fabrics as specified by the customers,garment designs and samples meeting the stringent quality required by
discerning customers in Europe and U.S.A, he added.
BRFLs new project with integrated facilities of weaving, process house
and garments has been approved by the High Level Committee of
Karnataka Government headed by the Chief Minister. This project as
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Composite Textile Unit will have the production capacity of 4000 kg. Per
day of yarn dyeing, 104 looms of weaving, 93,999 meters per day of
processing and 22,000 pieces per day of garments. The total cost of the
project is envisaged at Rs. 246.72 crores as per the detailed Techno-
Economic Feasibility Report prepared by M/s. Gherzi Eastern Limited.
The loans for the project have been tied up with the Banks under TUFS
making the Company eligible for interest subsidy of 5% and for
processing machinery a direct subsidy of 10% of the investment amount.
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BALANCE SHEET OF BOMBAY RAYON FASHIONS LTD (IN CRORES)
Mar 12 Mar11 Mar10
12 mths 12 mths 12 mths
Sources of funds
Total share capital 134.60 127.90 111.90
Equity share capital 134.60 127.90 111.90
Share application money 49.31 86.02 20.27
Preference share capital 0.00 0.00 0.00
Reserves 2,797.86 2,451.24 1,797.42
Revaluation reserves 0.00 0.00 0.00
Net worth 2,981.77 2,665.16 1,929.59
Secured loans 2,869.74 2,765.55 2,146.72
Unsecured loans 364.10 364.24 333.42
Total debt 3,233.84 3,129.79 2,480.14
Total liabilities 6,215.61 5,794.95 4,409.73
Mar12 Mar11 Mar11
12 mths 12 mths 12 mths
Application of funds
Gross block 4,243.50 3,169.81 2,091.44
Less: accum. Depreciation 518.67 301.63 165.52
Net block 3,724.83 2,868.18 1,925.92
Capital work in progress 51.75 637.57 554.26
Investments 168.41 222.72 439.48
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BOMBAY RAYON FASHIONS LTD
PRESIDENCY COLLEGE 53
Discrimination: No discrimination based on race, caste, origin, religion,
disability, gender, sexual orientation, union or political affiliation, or age;
no sexual harassment
Discipline: No corporal punishment, mental or physical coercion or
verbal abuse.
Working hours:-Comply with the applicable law but, in any event, no
more than 48 hours per week with at least one day off for every seven
day period; voluntary overtime paid at a premium rate and not to exceed
12 hours per week on a regular basis; overtime may be mandatory if part
of a collective bargaining agreement.
Remuneration: Wages paid for a standard work week must meet the
legal and industry standards and be sufficient to meet the basic need of
workers and their families; no disciplinary deductions.
Management system for Human Resources:-Facilities seeking to gain
and maintain certification must go beyond simple compliance to
integrate the standard into their management systems and practices.
Health and Safety:-BRFLS follow a strict code of Health & Safety
practices at conditions in the workplace and beyond. The code is
monitored continually by internal management reviews, which involve
representatives from all areas of the business. The group also reviews
and updates the code regularly. Ensuring that all legislation and
recommended practice is complied with. We constantly strive to remain
eco-friendly by adhering to the highest international standards of
manufacturing, effluent treatment and by using azo-free dyes and
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PRESIDENCY COLLEGE 57
and products by minimizing their impact on the environment. We will
develop effective methods and procedures, and will promote a culture in
which all employees share this commitment.
In this way, BRFL aim to have an environmental performance & can be
proud of, to earn the confidence and respect of customers,
shareholders, and society at large, and to contribute to sustainable
development.
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PRESIDENCY COLLEGE 63
Concentration Risk
This risk arises from excessive dependence on any customer or segment for
business.
The Companys client base consists of garment manufacturers, retailers
and dealers in the domestic market as well as reputed international
buying houses and retailers in the overseas market. No buyer accounts
for more than 10% of the Companyssales. Besides, BRFLs multi-
market, multi segment presence mitigates the risk of downturn in
demand from any particular market or segment. Thus, the Company
does not expect to be significantly affected by this risk. Concerns like
shortage of skilled manpower and technological obsolescence remain.
However, these are threats faced by the entire industry. With superior
methodologies and innovative processes and systems, the Company is
well positioned to lead a high growth path.
Internal control systems and their adequacies
The Companys well defined organizational structure, documented policy
guidelines, defined authority matrix and internal controls ensure
efficiency of operations, compliance with internal policies and applicable
laws and regulations as well as protection of resources. Moreover, the
Company continuously upgrades these systems in line with the best
available practices. The internal control system is supplemented by
extensive internal audits, regular reviews by management and standard
policies and guidelines to ensure reliability of financial and all other
records to prepare financial statements and other data.
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BOMBAY RAYON FASHIONS LTD
PRESIDENCY COLLEGE 65
CHAPTER-4
SWOT ANALYSIS
Strengths
Self reliant industry producing the entire supply chain from fiber/cotton
to garments/home textiles
-largest textile producer in the world
Adequate raw material supplies
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CHAPTER 5
FINDINGS & SUGGESTIONS, RECOMMENDATIONS
FINDINGS:
The production of Garments has seen tremendous fluctuations over the
period and increased only during 2011-2012 and dropped off marginally
in the subsequent year.
company over the period of study which is just satisfactory.is found that number of direct labour employees has increased in
3years in both production houses.
the future.
for maximization of the returns for the company this has to increaseaccordingly.
at levels higher than production a need better control.
the second year. Growth
refers to continuous increase in profits also which is not the present
case.
from the date of purchase.
he cost price
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BOMBAY RAYON FASHIONS LTD
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SUGGESTIONS:
The company should put in best efforts to increase production at a
better rate when compared to the present.
which the case with the company as now is. A higher increase in the
sales would better the companys prospects of contributing towards the
profit.
and fixed cost needs a better
control so that the BEP can be improvised upon for the growth of the
company.
check the growing costs to improve the contribution for the company.
ve to be put in by the company to enhance profits every year
continuously by bringing down costs, increase in production as well as
sales.
has to increase the production and implement various core control
methods and techniques.
usage to get the maximum profits.
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BOMBAY RAYON FASHIONS LTD
BIBLIOGRAPHY
NEWS PAPERS AND MAGAZINES
COMPANY RECORDS AND REPORTS
LIBRARIES VISITED ---------- COLLEGE LIBRARY
BOOKS REFERRED
1. HUMAN RESOURCE MANAGEMENT -- ASHWATHAPPA.KMcGraw-HillEducation-2010
2. FINANCE MANAGEMENT ---PRASANNA CHANDRATata McGraw-HillEducation-2008
3. HUMAN RESOURCE MANAGEMENT --V S P RAO---2nd edition-excelpublications
4. MARKETING MANAGEMENT ---PHILIPS KOTLER4th edition-Pearson2011
Website
http://www.researchandmarkets.com/research/ssnxqf/bombay_rayon
http://www.bombayrayon.com/source/social.html
http://www.researchandmarkets.com/reports/2336396/bombay_rayon_fashion_limited_funda
http://www.researchandmarkets.com/research/ssnxqf/bombay_rayonhttp://www.researchandmarkets.com/research/ssnxqf/bombay_rayonhttp://www.bombayrayon.com/source/social.htmlhttp://www.bombayrayon.com/source/social.htmlhttp://www.researchandmarkets.com/reports/2336396/bombay_rayon_fashion_limited_fundamental_company.htmlhttp://www.researchandmarkets.com/reports/2336396/bombay_rayon_fashion_limited_fundamental_company.htmlhttp://www.bombayrayon.com/source/social.htmlhttp://www.researchandmarkets.com/research/ssnxqf/bombay_rayon