copy of internship report

Internship Report Submitted by Heena Khanna in Partial Fulfillment of the Requirements for the

Diploma of PG in Fashion MerchandisingJune- July 2010

B & T DepartmentDate of Submission

Acknowledgement

Pearl Academy of Fashion

Declaration

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Contents

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About Richa Group:

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Established in 1977, Richa Group is a name to reckon with in the garment industry. Within a short span of time, it has positioned itself as a global organization with a distinctive identity. The Group has a remarkable presence in the readymade garments export industry including woven, knitted, leather garments and home furnishing.

Today, Richa Group is equipped with 18 fully integrated manufacturing units in Delhi, Gurgaon, Noida and Bangalore along with a textile mill in Tiruthani. It stands tall with US $ 130 million turnover. Making use of the latest technologies through its competent professionals, the Group is setting new benchmarks in the industry. It fosters an organizational culture. A workforce comprising of 15000 professionals is leading the Group to newer heights.

Richa Group aims to be a paradigm of perfection. It upholds the world-class standards in all of its processes. The Group will leave no stone unturned to achieve the best at all levels of its operations. The aspirations of the Group attain fulfillment in its outstanding performance. It has established strategic relations with the clients from all over the world.

Richa Group has been in the forefront of the industry complying with the customer's requirements following government laws and regulations. Today, it is seen as a hi-tech, customer friendly, eco-responsive corporate citizen that is shaping a better tomorrow for everyone.

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Export Performance Chart:

Through a wide range of high fashion garments for men, women and children, Richa Group has marked a distinguished presence in over fifteen countries including USA, UK and Canada. In the leasing retail outlets around the world, the products of Richa Group are flaunting the latest fashions. With over two decades of presence as a major Indian Government Recognized Trading House in the international fashion apparel market, Richa Group has become a widely admired name. The turnover for the present financial year is US $125 millions. With an increase in the manpower & resources, company’s profits have also tremendously risen which can be studied from the following performance chart, manpower & resource list.

Quality plays the key role in the business expansion of any corporation. It’s the core of a business for what it gets acceptance and credibility amongst its clients. All possible measures are taken at Richa Group to maintain the world-class quality.

SOURCE: www.richagroup.com

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http://www.richagroup.com/


Key buyers:

BRANDS:

The brands manufactured at this unit are :

1. Abercrombie and Fitch

2. Chico’s

3. Nordstrom’s

4. Next

5. River Island

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Manpower:

S No.

Department Strength / No. of Employees

1. Accessory Store 13

2. Accounts 10

3. Administration 43

4. Computers / E.D.P 2

5. Cutting 67

6. Documentation and Shipping 1

7. Embroidery 2

8. Fabric Store 25

9. Finishing 222

10. Issue Receiving 21

11. Kaj Button 18

12. Maintenance 14

13. Merchandising 17

14. Packing 22

15. Personnel 4

16. Production Planning 2

17. Purchases 5

18. Sampling 93

19. Sewing 43

20. Sewing (Checker) 42

21. Sewing (Dispatch) 7

22. Sewing ( Helper) 168

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23. Sewing (Operators) 599

24. Washing 13

GRAND TOTAL 1,453

Machinery:

MACHINE REPORT

SL.NO. MACHINE TYPE MODEL NO. QTY1 SINGLE NEEDLE LOCK

STITCHS-7200-303,403

477

2 SINGLE NEEDLE LOCK STITCH JUKI

DDL-8300N 40

3 END CUTTER JUKI DLN-5200N 24 END CUTTER BROTHER S-777A-03 505 DOUBLE NEEDLE

SPLIT BARLT2-B845-03 10

6 DOUBLE NEEDLE FIX BAR

LT2-B8420-03 45

7 OVER LOCK PEGASUS M-732-38 458 OVER LOCK SIRUBA F-757 59 BUTTONHOLE BE-800E 3

10 BUTTONSTITCH BE-438D 311 BARTEK KE-430E-01 712 EYELET KAJ S-100 313 SNAP BUTTON NS-45 114 SNAP BUTTON NS-47 415 BLIND STITCH KL-251 NIL16 FLAT LOCK W664-35BC 317 EMBROIDERY 130 2318 BAND KNIFE EC-900N 119 STRAIGHT KNIFE 8" X629 320 STRAIGHT KNIFE 6" X629 121 FUISING M/C 600 LCS HP 600LCS 122 FUSING M/C 900 LCS HP 900LCS 223 PLOTTER IEEE1394 1

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24 BEADING 325 KANSAI 1012 426 KANSAI 1412 PQ 227 KANSAI PSSM & (1033) 228 SADEL STITCH 129 DOUBLE NEEDLE JUKI MH 380 230 NEEDLE DETECTOR HN 740G 131 MECHING BOX SPECTRUM 1

FABRIC INSPECTION RAMSONS 1TOTAL 747

Process Flow:

Being a vertically integrated unit, Richa & Co. has to be efficient in coordination amongst its various departments. The process flow at Richa & Co. is as follows:

The R & D Department develops new styles and showcases them in the showroom. The Buyer/ Buying Agency selected the styles from the showroom, and either same or a modified version of that style is passed on the merchandiser for sampling.

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The samples made are sent to Plus Impact, and then to Chico’s. The comments on the first sample are reworked, and more samples are sent till the final approval. Various approvals are sought before the

final order comes from the buyer. Once the order is received, the merchandiser orders the fabric and trims and hands over the file to the production department.

Production Follow Up by the Merchandiser

Once we get a style, the merchandiser checks

1. FEASIBILITY : The merchandiser goes through the sample, development ,fabrics, trims, embellishments and understanding the style been provided by the buying house or the buyer and see that the design advised by them is feasible to make or it needs some changes and discuss it with technicality.

2. RECONFIRMATION : Buyer will reconfirm all details are ok, then the manufacturer proceeds into sampling, the status report of the work should be send to the buyer in intervals so that he knows the progress of his work.

3. PRE-PRODUCTION SAMPLE: Pre- production or sealing sample is been made, these samples are been made in bulk fabric with correct trims, embroidery, correct label and size etc. This is basically the finalised pattern to be used for production without the approval of the sample production can’t be started.

4. PRE-PRODUCTION VISUAL :

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5. SAMPLE FOLLOW UP : The most important tool for sample follow up is TNA ( TIME AND ACTION CALENDAR) Once, the sample gets approved, it is prepared.

6. TRIMS IN HOUSE: As soon everything gets approved the trims are In-house immediately, the basic trims such as thread and all needed to start the production.

Production Flow:

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SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis for Richa and Company:

Strengths:

1. GOODWILL:

With a tremendous growth over the years and having won many awards like “Wal-mart International Supplier of the Year 2006”, Richa Group has created a strong goodwill in the export market. Quality is synonymous with its name and is highly trusted by the international market.

The dynamic variety of fabrics used, the innovation in the work process, and ability to overcome hurdles, makes it famous amongst the buyers. The use of new and better fabrics for different season, for example: - fair trade cotton, organic cotton has given more opportunities in attracting the customers for bigger orders.

2. ON TIME DELIVERY

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Richa Group has had a record of timely deliveries in 97% of the cases. This has made it famous amongst the buyers and earned more business.

3. PRODUCT DEVELOPMENT:One of the other major strength of the organization is its Design cum Product development team. Thus fresh ranges of garments are made frequently leading to more business for the organization.

4. COMPLAINCE:Richa Group follows all the compliance policies in all spheres. This is a one of the most important criteria that buyers look in for when they contact a manufacturing unit. All areas: Social, Technical & Security are looked in through the compliance team.5. Embroidery:

This unit prides itself in making and exporting highly embellished garments of good quality.

6. Competent Staff:

Richa and Co. has a highly qualified and experienced team of employees.

7. Sampling Room:

The factory has a very well equipped sampling room, comprising of

i. 2 Cutting tablesii. 3 Press meniii. In house embroidery room for dedicated to sampling only and a

separate section for hand embroideryiv. CAD operated pattern making , even for proto samplesv. Online checkers+ QA dedicated for each buyervi. Separate finishing department only for sampling.

8. Washing Department: i. Capacity of washing over 3 lakh garments/ month.ii. Can wash denim (all washes)iii. Ability to handle highly embellished and embroidered garments

with minimum rejection, due to washing tumbling process.

9. Machinery:

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The factory has all the state of the art and highly specialized machinery for all processes. It is also supported by an up to date Industrial Engineering (IE) Department.

Weaknesses 1. Price:

Since the unit is dedicated towards producing highly embellished garments, in an in-house embroidery setup, the expenses incurred are slightly higher as compared to the basic garment price structure.

2. Lead Time:Lead time is also an issue as the unit is doing embroidered garments; hence the time factor fluctuates due to multiple reasons such as absence of karigars, availability of machines etc.

3. Labour:Problems caused due to labour are also a prime concern for the company. Absenteeism is the main issue, as around 60 to 70 labourers and workers are absent every day. The workers are also prone to opportunism, wherein they’re not loyal to the company, and are ready to switch to another company as soon as they’re offered a slight increase in pay. In spite of the lucrative incentive schemes provided at Richa, workers still switch.

Opportunities:

1.EUROPEAN MARKET:

As of now, Richa Group was more involved in the US market. Now as the European market is witnessed to have a potential growth, Richa Group is venturing into new horizons. The infrastructure makes it possible for the organization to focus on new markets without hindering the working of the existing ones.

2.INTEREST OF DIFFERENT BUYERS IN INDIA: With the emergence of globalization and removal of quota, buyers from all over the world have started showing interest in India. For RICHA the main market is U.S.A which source almost 60% of their imports from India so they have a great opportunity to increase their business.

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3.SPECIAL ECONOMIC ZONES: The emergence of special economic zones for textile and apparel give an advantage to the export houses in terms of subsidies. The various subsidies given to the exporters for setting up units in these areas are on capital, electricity, freight , cheaper land , subsidy on the import of machinery etc thus these subsidies helps in advancement of the exports and gives an opportunity to the exporters to expand their business.

4.DEMAND FOR INDIAN VALUE ADDITIONS:There is a huge demand for Indian value additions like: Tie & Dye, Embroidery (Hand & Computer), Sequence and beadwork, etc. Richa Group has successfully provided its buyers all the above. Embroidery and adda work is in house which makes it more feasible.

Threats:

1.EXCHANGE RATE FLUCTUATION:As Richa Group is big and old organization, the dollar fluctuation does not effect the business majorly. But if the fluctuation continues for a long period of time, Richa Group has to think of some strategy beforehand. It should focus more on the new market horizons in addition to its current efforts.

2. EXTERNAL COMPETITORS:Indian Exports is seeing a downfall with increasing focus by the buyers on countries like China, Sri Lanka, and Bangladesh. These countries provide low cost of production. For countries like China, technology plays a vital role. Frequently it comes up new technologies to serve its customers in a better way.

3. Increase in Minimum WagesSince the /Minimum Wage Legislation is going to be revised, then the CMT ( Cut, Make, Trims) Cost of garments is also going to rise, thus affecting the final costing.

4. Change in Government Policies: Modification of the Tax structure. Reduction in duty exemption and other schemes provided by

the EPC ( Export Promotion Council)

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Compliance

Richa & Co., Udyog Vihar, follows the following laws as a part of compliance.

THE LABOUR LAWThis ensures that there is no forced labour, child labour, harassment or abuse of any kind against the labour.

THE FACTORIES ACT, 1948This act deals with the registration of a company as per set rules and regulations. In addition to this the following is also followed:

Cleaning & disposing of wastes & effluents Ventilation, Temperature & Humidity

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Urinals & Spittoons Avoid over crowding Proper sitting arrangements Readily available first aid boxes Medical rooms Canteen Crèche Notice displays Maintaining Registers

THE EMPLOYEE’S STATE INSURANCE ACT, 1948This act deals with the proper filing of insurance for the employees working in the organization. For the same, Richa & Co. maintains prescribed registers: Register of employees, inspection book, accident book, etc.

THE MINIMUM REMUNERATION ACT, 1948Richa & Co. pays every employee engaged in a scheduled employment under it, wages at a rate not less than the minimum rates of wages fixed for that class of employees in that employment.

If an employee works in excess of the normal working hours on any day, Richa & Co. pays him wages for the time worked in at double the rate of his usual working hours.

CT-PAT (CUSTOM TRADE PARTNERSHIP AGAINST TERRORISM)

This is basically done to ensure security. It ensures that the products leaving the factory are packed duly for privacy purposes, a proper security team is on duty, doors are locked at night, CCTV’s are installed throughout the building etc.

At Richa & Co., a challan is carried by the carrier of the goods outside the factory premises. The guards at the gate match the goods with that mentioned in the challan.

COUNTRY OF ORIGIN

This is to enable the buyer as an assurance that the products so possessed by them are from the same company from where they had ordered.

CHICO’S STANDARD OPERATING PR0CEDURES ( SOP) MANUAL

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A 500 page manual is followed by Richa & Co. for Chico’s Production. This manual contains everything from pictorial representation of measuring garments to the details regarding the packaging, shipping guidelines, textile inspection, raw material, finishing etc. Chico’s lays stringent rules & regulations which Richa & Co. has been successful in maintaining.

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