PROJECT REPORT ON REASONS BEHIND THE FAILURE OF JCT MILL IN MALERKOTLA MARKET

SUBMITTED TO MS. Kuldeep Kaur

SUBMITTED BY Ankur jauhari Manish sajwan B.Tech(H)I.T.MBA A17B1 RA17B1A09/12 7470070011/82

LOVELY PROFESSIONAL UNIVERSITY PHAGWARA

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Declaration I declare that this Term paper is my own work. It is submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration at the Lovely Professional University. It has not been submitted before for any degree or examination at any other University. I further declare that I have obtained the necessary authorization and consent ______________ Ankur Johri Manish Sajwan April 26, 2011

Acknowledgements Working on this ambitious project has been enormously challenging and deeply rewarding. We have thoroughly enjoyed the task set before me by the Lovely Professional University. We are eternally grateful to: Our supervisor, Mrs. Kuldeep Kaur for her invaluable patience, support and expert guidance. Our classmates and friends who participated in the research for offering up their precious time ,who were always so patient, supportive and understanding of this Endeavour. Thank You Ankur Johri Manish Sajwan

Contents
Contents.................................................................................................................................. 5 INTRODUCTION........................................................................................................................ 5 INDIAN TEXTILE INDUSTRY...................................................................................................7 SEGMENTS OF INDIAN TEXTILE INDUSTRY...........................................................................7 PROBLEMS FACED BY INDIAN TEXTILE INDUSTRY................................................................9 CURRENT SCENARIO.......................................................................................................... 10 JCT...................................................................................................................................... 10 OBJECTIVES .......................................................................................................................... 15 REVIEW OF LITERATURE........................................................................................................ 15 DATA ANALYSIS AND INTERPRETATION.................................................................................27 Frequency.......................................................................................................................... 27 Discriminant Analysis............................................................................................................ 33 Factor Analysis................................................................................................................... 38 Cluster Analysis.................................................................................................................. 42 Dendrogram.................................................................................................................... 43 Questionnaire..................................................................................................................... 48

INTRODUCTION

Time is changing and with it our needs are changing too and the main goal of companies is to meet these changing needs profitably in minimal cost. To be profitable companies try to capture the huge market segment and globalization helps them in doing so. In many cases companies got success but in some cases they got failures too. Just Like that JCT is failed to capture the market of Malerkotla. Now, what are the factors or reasons behind the failure of companys core competency failed there? Either external factors or internal factors or both which cause the failure. Company wants to know the reasons so that they can take corrective actions and improve their strategy and establish their brand in Malerkotla. Company seeks greater opportunities in Malerkotla market. As this segment is sustainable, accessible, profitable, responsive and closer to the company. It is one of the largest segments in Punjab. It saves a lot of expenses of company like transportation cost, warehouse cost and decrease the response time between the company and consumers. Absence of strong competitors is an opportunity for the company. Company wants to establish their footholds in home market as they are succeeded in achieved success in foreign market. Currently Company established a new plant of worth 250 crore with latest technology which will increase the efficiency of output and quality of the product. For that Malerkotla will be the best place to seek the consumer response about the product developed in new plant.

INDIAN TEXTILE INDUSTRY

Textile accounts for 14 % of Indias industrial production and around 27% of its exports earnings. Textile industry in India covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool to provide high quality products such as fabrics and garments to consumers. Man made fibres account for around 40% share in a cotton dominated Indian textile industry. India accounts for 15% of worlds total cotton crop production and records largest producer of silk. Industry uses a wide variety of fibres ranging from natural fibres like cotton, jute, silk and wool to manmade fibres like polyester, viscose, acrylic and multiple blends of such fibres and filament yarns. Textile industry plays a significant role in Indian economy by providing direct employment to an estimated 35 million people, by contributing 4% of GDP and accounting for 35% of gross export earnings. Textile sector contributes 14% of value addition in manufacturing sector. It is the second largest employer after the agriculture sector in both rural and urban areas. India has large pool of skilled labour, experienced in technology skills. Almost all sectors of textile industry have shown significant achievement. Sector has shown a 3.66% CAGR over the last five years.

SEGMENTS OF INDIAN TEXTILE INDUSTRY 1. Woollen Textile 2. Cotton Textiles 3. Silk Textiles 4. Readymade Garments 5. Jute And Coir 6. Hand-Crafted Textile Like Carpets 7. Man Made Textiles

Indian textile industry in a very short span had made a distinct position globally, alluring the globe towards the World of Indian textiles. Its not just the present that is shinning like a bright start but also the future, as the textile export market of India is expected to reach a high of $50 billion by 2010. This will eventually make a profit by 300%. In order to attain this target Indian textile industry has already started improving their design skills, including a combination of various fibres. Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon. Most of the international brands like Marks & Spencer, JC penny, Gap have started procuring most of their fabrics from India. In fact, Wal-Mart, who had procured textile worth $ 200 million last year, intends to procure $ 3 billion worth of textile this year. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners. Key Success Factors The key risk factors influencing the T&C industry are: Increasing productivity by leveraging technology Investing in IT Investing in brand building Focussing on international markets other than EU and US Focussing on innovations Achieving scale. The share of shuttle-less looms in the Indian textiles industry is only 2-3% as against a world average of 16.9%, thereby indicating a low degree of modernization in the Indian weaving industry. Although the Indian spinning sector is relatively more modernized, around 60% of installed spindles are more than 10 years old and openend (OE) rotors account for only 1% of total installed spindles. In the apparel sector, India has much lower investment in special purpose machines, which perform specific functions and add value to the product. Very few export establishments have invested in cutting machines or finishing machines Apart from the spinning sector,
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textile industry is dominated by unorganized industry on account of the policy environment in the country. The industry players should look to increase their scale to be more cost competitiveness.

Indian Textile Industry: Changing Profile The Indian textile industry has embarked on an ambitious programme of modernization and technological up gradation in recent years to transform the textile sector from a state of low-technology level to a producer of high-technology products. Technological up gradation in India has resulted in oA shift from commodity-based trading to high value-added fashion garments. oVertical integration and horizontal consolidation of production process leading to lowering of manufacturing costs. oImproved productivity gains. oEfficient supply chain management. oDevelopment of economies of scale.

PROBLEMS FACED BY INDIAN TEXTILE INDUSTRY The Indian textile Industry had been plagued by obsolescence, labour problems, raw material vagaries and lack of modernization including that of spindles.

The post fabric stage processing technology has also been lagging but is

now coming up fast with infusion of textile processing technology.

SSI firms perform the majority of weaving and processing operations. The of weaving technology is of lower order and knitting units don't possess to perform dyeing, processing and finishing to international

level

capacity

standards.

Textile exports during the period of April-February 2003-2004 amounted to $ 11,698

million as against $11,142 million during the same period, showing increase of around 5 percent.

CURRENT SCENARIO

The global economy is passing through recession. The international trade in textiles and clothing reached to $583 bn in 2007, which is expected to decline by $20-25 bn in 2008. The Indian textile industry exports about 40% of its output, of this about 60% is destined to USA and EU markets. It is expected that the textile and clothing exports from India may decline by 10-15%, although countries like China, Bangladesh and Vietnam are expected to record growth in their textile exports Steep rise in MSP of cotton and incentives on export of cotton have seriously impacted the textile industry During the past few years, Indian textile industry has attracted huge investments. As a result, the capacity in the entire chain has expanded beyond the current demand. In the context of declining economic activities, even the domestic market is not able to absorb the surplus generated by the industry so, it is tough time for the industry. The industry therefore has to strengthen its competitiveness to realize the Vision of $50bn textile exports set out in the National Textile Policy 2000.

JCT

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Textile unit of JCT one of the leading manufacturer of textiles and filament yarn, is the flagship company of Thapar Group - was incorporated in the year 1946 at Phagwara and went into commercial production in the year 1951. With operations in two distinct businesses cotton, synthetic & blended textiles and nylon filament yarn. The Textile Division at Phagwara employs more than 700 workmen and gives indirect employment to lacs of people. It has a consistent record of account of excellent relations with the workmen which is mainly on account of its following the modern concept of its mite to the physical health of society as well by way of international players in the game of Football. JCT Limited was the first textile manufacturer in the country to introduce eco-friendly fabrics made of organic cotton .JCT is synonymous with quality. With stringent quality controls at every stage of the production process, it is no wonder that the textile division of JCT is the first in the industry to be accredited with the ISO 9002 certification.1 Top Management M.M. Thapar, Chairman Samir Thapar, Vice Chairman & MD Rajmohan Singh, Director (Operations) Sanjiva Jain, Sr.Vice President (Finance) H.K. Chopra, Sr. VP (Plant Phagwara) Rajmohan Singh, Sr.Vice President (Retail) C. Venketesh., Vice President (Mktg Textile) Vivek Saini, General Manager ( Mktg Filament)

FOUNDERS VISION

http://www.punjabispot.com/kapurthala/about-amritsar-punjab.html

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So long as we have confidence in the value of the goal and excitement at the prospect of setting forth into unfamiliar territory and the will to do new things, I have no doubt that the future of India and the future of Indian enterprise are both safe and glorious. ~ Lala Karam Chand Thapar (1900 1962) Founder of the Thapar Group

Product Overview
JCT Limited has a product range of materials including 100% Cotton, 100% Polyester, 100% Nylon as well as various blends like Cotton/Polyester, Cotton/Nylon and Polyester/Viscose, Single and Plied Yarns (both with counts ranging from 6s to 100s) as well as Cotton Lycra and P/C Lycra Stretch material (which is Dupont USA approved). Depending on the requirement, even bamboo and linen fibres are used to create special effects. The company pioneered the manufacture of Organic Cotton, a special eco-friendly type of fabric that is available in up to 160cm of sheet width. This Organic Cotton is grown on land free of any harmful chemicals, insecticides etc. and is regularly exported to the USA. JCT Limited is certified with ISO 9001, Oeko-Tex 100 Class 2 and GOTS/Skal Certificate for fabrics of this nature, namely Wide Width Sheeting, Dyed Bottom-Weight Twills, Dyed Shirting Twills, Natural Twills, Canvas and Flannels. The companys strength lies is in bottom weights and piece dyed shirting for both fashion and work wear in all age groups. They use a variety of weaves like Twills, Plains, Dobbies, Ripstops, Cords, Satins, Oxfords, Ducks, Drills, Tussores, Ottomans
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etc. End products include fashion wear, sportswear, outerwear, active wear for Defence purposes and school uniforms. The organic cotton fabric meanwhile is used for everything from infant wear to technical segments like medical wear.2 Material : 100% Cotton, 100% Polyester, 100% Nylon Various blends of Cotton/Polyester and Cotton/NylonBlends of Polyester/ Viscose, Cotton with Lycra, Poly Cotton with Lycra. 100% Bamboo, Bamboo Cotton blends, Cotton Linen blends. Yarns : Count ranging from 6s to 100s, in single as well as plied yarns, Core Spun Lycra and slub yarns. Weaves : Variety of weaves like Twills, Plains, Dobbies, Ripstops, Cords, Satins, Oxfords, Ducks, Drills, Tussores, Ottomans etc. Weight : Cotton and Polycotton : 90 GSM to 450 GSM Polyester and Nylon: 60 GSM to 250 GSM Finishes & Coatings : Microsanding, soft finish, peach finish, Calendaring. Water and oil repellent, Teflon, Nano, Wrinke free/ easy care. Fire retardant, Inspect repellent, UV resistant, Anti microbial. Stiff finish, Highly breathable, Moisture Management, Rot proof, etc. PU coating, acrylic coating, Water repellent, fire retardant, breathable coating, Silver and Gold coating, PVC Coating & various other effects. Prints and Yarn Dyeds : Variety of designer prints for body fabrics and linings (Camouflages, floral, blotches, etc.) . Designer yarn Dyeds for Bottom weights and shirting. Organic Cotton : JCT is pioneer in manufacturing organic cotton fabrics in India specially designed eco-friendly fabrics.

JCT Limiteds Nylon Yarns are used for apparels, home textiles and semi-industrial products. It also supplies high viscosity Nylon 6 Chips. These ranges of products can be broadly classified into the following groups 3 Flat Yarn on COP

2 3

http://www.jct.co.in/productandservices_textile.asp http://www.jct.co.in/productandservices_filament.asp#

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 It is produced on Draw Twisting (DT) machine with metallic cops package and widely used by weavers and knitters for women wear, scarf and base fabric. TEXTURED/CRIMP YARN : It is produced on texturising/Crimping machine. Its high bulk makes it particularly suitable for hosiery and elastic tape applications. POY : Partially Oriented Yarn(POY) is used for air-texturising/Draw Texturising applications. FOY : Fully Oriented Yarn(FOY), a recent development, is a cost effective product on paper tube and is used for Twisting & Weaving. FDY : Fully Drawn Yarn(FDY) is characterized by large paper tube packages and heat set yarn. DYED YARNS : Dyed yarn is available in two varieties Hank Dyed and Dope Dyed. Hank dyed yarn is produced by using conventional procedures and is available in many shades. Dope dyed yarn is produced by using Coloured Master Batch Chips and it is characterized by colour fastness. NYLON 6 CHIPS : Nylon 6 chips of high viscosity in the range of 2.6 to 3.2 R.V. are available which are used in Engineering Plastics.

MARKET4 Segments: Work wear, Fashion wear, Sports wear, Outerwear, Defence, Institutional Uniforms, Home Textile, Hospital and Hospitality Industry. Markets: JCT has presence all over the world with exports to USA, Europe, Far East, Middle East, Mauritius, and other countries. The fabric is made for leading international brands complying with their standards.

http://www.jct.co.in/clients.asp

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OBJECTIVES Reasons behind the failure of JCT mill in MALERKOTLA market a.

b. c.

To study the Malerkotla market needs, which leads to the failure (external). To study supply chain factors which leads to the failure (Internal). To offer suggestion for improvement to capture markets like in Malerkotla

REVIEW OF LITERATURE Imran Sharif Chaudhry et al (2009) 5 have made study on Factors Affecting Cotton Production in Pakistan: Empirical Evidence from Multan District. They examined the factors affecting cotton production. In that study Cobb-Douglas Production Function was used to assess the effects of various inputs like cultivation, seed and sowing, irrigation, fertilizer, plant production and labour cost on yield.

Porter, Michael (1992)

Productivity also depends upon such factors as layout of

machines, mechanical transport for material handling and machine maintenance. As a result of all these factors, productivity of the worker is largely governed by a proper machine allocation. This can easily be determined by work-study. SITRA (1998) stated that the size of the mills decides the volume of business and also the economic viability of the business unit. Selection of suitable size is important for smooth conduct of business, over-capacity as well as under- capacity would bring pressure on the business.

Imran Sharif Chaudhry, Muhammad Bashir Khan ( Bahauddin Zakariya University Multan,Pakistan )

in Pakistan: Anwar(University of the Multan Lahore, Journal of Factors Affecting Cotton Production and MumtazEmpirical Evidence from Punjab,District- Pakistan)-Quality and Technology Management,Volume V, Issue I1, Dec, 2009, pg. 91-100.
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Porter, Michael (1992): Quoted in G S Gokhale, 'Role of Productivity in Cotton Textile Mill Industry',

Productivity, Vol 33, No 1 April- June.

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DHANAPAL C. & GANESAN G. (2010) 7 The Indian Textile Industry is the second largest in the world, next to Chinese and is one of the largest foreign exchange earners for the country. Textile is a key contributor to GDP to the order of 4%. The textile sector employs over 20 million people and is the second largest employment generator. Textile businesses are also affected by the global melt down. The industry in India is experiencing an increase in the collaboration between national and international companies. International apparel companies like Hugo Boss, Liz Claiborne, Diesel,Ahlstorm, Kanz, Baird McNutt, etc have already started their operations in India and these companies are trying to increase it to a considerable level. National and the international companies that are involved in collaborations include Rajasthan Spinning & Weaving Mills, Armani, Raymond, Levi Strauss, De Witte Lietaer, Barbara, Jockey, Vardhman Group, Gokaldas, Vincenzo Zucchi, Arvind brands, Benetton, Esprit, Marzotto, Welspun, etc. Therefore, it is the right time to concentrate on operational cost to compete with the global leaders by concentrating on the world class quality products. An empirical study is made on the cost aspects of a textile mills discloses the possibility of cost reduction and improvement for profitability. This paper presents proactive aspects and relationship of the production with raw material consumption and yield .Cobb Douglas production function has been used to find the behavour of costs with the production per spindle shift. It also presents suggestions for improving productivity and profitability.

HEMBREE F. JOEL ,ETHRIDGE E. Don & NEEPER T. JRRAL(1986)

says that

effects of fiber properties(length,uniformity,strength,micronaire,white,yellow and trash content ) on U.S. mill prices of cotton were estimated.USDA data on fiber properties and mill prices on cottons from four production regions in th U.S. were used in the statistical analysis.All the fiber properties were found to significamtly affect mill prices;the fiber properties having the greatest influence were fiber strength length and micronaire,followed by length uniformly yellowness whiteness and trash content.These properties explained 18% of the total variation in mill prices between 1977/78 and 1983/84.
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http://www.globalresearch.com.my/proceeding/icber2010_proceeding/PAPER_201_OperationalAnalysis.pdf http://www.aaec.ttu.edu/CERI/Published%20Papers/Journal%20Article/MarketValuesofFiberPrpty.pdf

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Doshi Gaurav (2006)

There is a pressure from the management to decrease the

conversion cost to its lowest possible level because of cut throat competition in both the local and export markets. It is observed that if a spinning mill follows the steps (Number the card cans, Check that all cards working on a mixing are represented in the creel of the breaker draw frame, Use cans of two different colours at the two deliveries of breaker draw frame, Place 4 cans of each colour in the creel of the Finisher Draw frame, Check winding tension, Check that no roving bobbin with Uster, Check that the drafting device at the fly frame, condition of each and every cot and apron in the mill) recommend as above, they can function their ring frames at speeds up to 25,000 rpm without either rising the breakage rate weakening yarn quality. The recommendation provided on article is based on experts' experience of functioning with many spinning mills in India and Indonesia increases spinning productivity. Danish A. Hashim(2009)10 made research on Cost and Productivity in Indian Textiles for Indian Council for Research on International Economic Relations. His observations and findings are: There is an inverse relationship between the unit cost and productivity: Industry and States,which witnessed higher productivity (growth) experienced lower unit cost (growth) and viceversa.Better capacity utilization, reductions in Nominal Rate of Protection and increased availability of electricity are found to be favourably affecting the productivity in all the three industries.

Doshi Gaurav (2006)

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It is believed the quota regime has frozen the market share,

providing export opportunities even for high cost producers. Logistics and supply chain would also play a crucial role as timely delivery would be an important requirement for success in international trade. The logistics and supply chain management of Indian textile firms are relatively weak and needs improvement and
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http://ezinearticles.com/?Productivity-Of-A-Spinning-Mill&id=372860 Danish A. Hashim (2004)- cost and productivity in Indian Textiles- Indian Council For Research On International Economic Relations. Multan District Journal of Quality and Technology Management, Volume V, Issue I1, Dec, 2009, pg. 91-100
10
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http://ezinearticles.com/?Textiles-Exports:-Post-MFA-Scenario-Opportunities-and-Challenges&id=372738

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efficiency. China has already created a world class export infrastructure. Given the volume of projections for exports by India, it may be necessary to create additional export infrastructure, especially investment for modernization of ports. In addition, India needs to invest for creating brand equity, supply chain management and apparel industry education. To sum up, the ability of Indian textile industry to take advantage of quota phase-out would depend upon their ability to enhance overall competitiveness through exploitation of economies of scale in manufacturing and supply chain. The need of the hour therefore is to evolve a well chalked out strategy, aimed at improvement in the levels of productivity and efficiency, quality control, faster product innovation, quick response to changes in consumer preferences and the ability to move up in the value chain by building brand names and acquiring channels of distribution so as to outweigh the advantages of competitors in the long run. Doshi Gaurav (2006)12 In textile industry, protection from extreme environmental conditions is a very crucial requirement. Phase Change Materials (PCM) is one such intelligent material, It absorbs, stores or discharges heat in accordance with the various changes in temperature and is more often applied to manufacture the smart textiles. Since a huge amount has been invested in research and development in these areas in the developed counties, it is expected that very soon all-season outfits will be mass-produced. For example, in Britain, scientists have designed an acrylic fibre by integrating microcapsules covering Phase Change Materials. These fibres have been used for producing lightweight all-season blankets. Many garment making companies in USA are now producing many of such garments, like thermal underwear and socks for inner layer, knit shirt or coated fleece for insulating layer; and a jacket with PCM interlines for outer layer, beside helmets, other head gears and gloves. Such clothing can maintain warm and comfortable temperatures in the extreme of both weathers. There is no doubt that textile which integrate PCMs will find their way into several uses in the near future.

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http://ezinearticles.com/?Pcm-In-Textiles&id=367030

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Doshi Gaurav (2006)13To get increased sales and better name amongst consumers and fellow companies it is important to maintain a level of quality. Especially for the businesses engaged in export business has to sustain a high level of quality to ensure better business globally. Generally quality control standards for export are set strictly, as this business is also holds the prestige of the country, whose company is doing the export. Export houses earn foreign exchange for the country, so it becomes mandatory to have good quality control of their products. main fabric properties that are taken into consideration for garment manufacturing for export basis: . Overall look of the garment. . Right formation of the garment. . Feel and fall of the garment. . Physical properties. . Colour fastness of the garment. . Finishing properties . Presentation of the final produced garment. Quality is ultimately a question of customer satisfaction. Good Quality increases the value of a product or service, establishes brand name, and builds up good reputation for the garment exporter, which in turn results into consumer satisfaction, high sales and foreign exchange for the country. The perceived quality of a garment is the result of a number of aspects, which together help achieve the desired level of satisfaction for the customer. Therefore quality control in terms of garment, pre-sales service, posts -sales service, delivery, pricing, etc are essentials for any garment exporter.

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http://ezinearticles.com/?Quality-Control-Aspects-Of-Garment-Exports&id=373711

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SITRA (1998)14 stated that the size of the mills decides the volume of business and also the economic viability of the business unit. Selection of suitable size is important for smooth conduct of business, over-capacity as well as under- capacity would bring pressure on the business.

Doshi Gaurav (2006)

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Technical treatment of different textile materials is laid down

blizzard to the world. In this globalization of science and technology, new technologies like fine chemicals, optical fibres, high polymer plastics, resins, temperature-resistant textile fibres, fiber-reinforced composites etc have proved improved alternative in the form of technical textiles and has updated the blueprint of production; consumption and trade in a considerable way. The end user of personal protection equipment is protector or consumer itself, hence according to the need of PPE and by consideration of application of PPE in different environment; first and foremost, consumer must be trained or guided by covering the thorough information about what is personal protection equipment? In many countries there seems to be a legislative strict restrictions or regulations on employers or workers to protect themselves from hazardous workplace or environment and wearing personal protection equipment necessarily. It is safe to create awareness among the employees or workers of wearing personal protective equipment in hazardous areas or workplace, and providing appropriate personal protection equipment, saves or protects your business too. Gokhale, G S (1992)
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an important factor that affects material productivity is the

quality of cotton that is used to produce a particular kind of yarn or cloth. Using too good a cotton variety would contribute to excessive cost, but using cotton that is not good enough would mean increased breakage, a heavier work load for the worker, SITRA (1998): 'Productivity Performance in Spinning', SITRA Publication, South Indian Cotton Textile Research Association, Coimbatore, p 4.
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http://ezinearticles.com/?Protective-Clothing-Protects-Your-Business&id=372667 Gokhale, G S (1992) 'The Role of Productivity in Cotton Mill Sector', Journal of Productivity, January-March.

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who consequently can only attend to a lesser number of machine units. The material productivity is influenced by a number of factors such as quality of material used, type of technology used, level of maintenance and life of machinery, count produced and the like. . Ocampo Aimee(2011) 17Cotton prices have been increasing steadily for nearly a year now, consequently pulling up the cost of related raw materials such as yarn and fabrics. So while makers of apparel and textile-based products are relieved that export orders are improving, escalating material expenses have made them cautious about finalizing transactions. Many do not want to accept long-term contracts that will bind them to a price point. This comes especially since it is difficult to estimate how much material costs will change in the months to come. Some suppliers have chosen to raise export quotes instead, albeit minimally. To compete with other companies and retain existing clients, they cannot transfer all additional expenses to buyers and have to absorb part of the extra costs. the cost of imported cotton ranged between 80 and 90 cents per pound. Now, those cotton suppliers are allegedly charging them for current spot prices, which are from 150 to 160 cents per pound. This practice is being done not only by overseas cotton suppliers, but by local providers as well.
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Ware Jeffrey(2008)

Choosing the fabric your clothing is made with is important.

This choice can make the difference in the look, comfort, durability, or practicality of the purpose of the particular article of clothing. The choice of fabrics is never more important that the clothes you wear every day at work. Your work uniform must be comfortable yet durable. The average person will spend more time wearing their uniform than any other article of clothing with maybe the exception of sleep clothing. The fabric your uniform is made from is important and with today's fabrics you have a wider choice than ever. Every fabric used to manufacture clothing today has its own characteristics and uses. When choosing clothing as important as your uniform, it is
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http://ezinearticles.com/?Fabrics-Used-To-Make-Material-In-Todays-Textilehttp://ezinearticles.com/?Volatile-Cotton-Prices-Dampen-2011-Projections&id=5670229 Industry&id=1172925

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important that you understand the characteristics of the different fabrics. This is the first in a series of articles where we will explore the different fabrics and manufacturing process of common fabrics. Cotton material is very easy to care for and can be cleaned and dried under just about any conditions. Cotton fabric can be machine washed in the hottest of water. It can be bleached without fraying. Cotton fabric can be ironed at high temperatures without damage. As always you should refer to the care label found on any garment before cleaning or ironing. Cotton is one of the major factors in world prosperity and economic stability. Actively traded daily in the futures market, cotton is a mainstay of the financial industry as well as the textile industry. Cotton is grown worldwide with the leader in production being China followed by the United States. Other major cotton producing countries include India, Pakistan, Brazil, Turkey, and Greece. Steel Ruid(2011)19 India's industrialization in various other sectors has been successful due to the resources generated by the textile industry. The Indian textile industry is the second largest industry across the world. As a result Indian textile art is famous across the world. India is considered the third largest producer of cotton, as it has the largest cotton acreage of 9 million hectares. India stands fourth in the production of the stable fiber and sixth in the production of the filament yarn. Nearly 30% of the India's export is from the textile industry that covers textiles and garments. Textile industry comprises of various segments such as cotton textile including handlooms, silk textiles, manmade textiles, woollen textile, readymade garments, handicrafts including carpets, jute, coir, and many more

RESEARCH METHODOLOGY The chapter of research methodology will indicate the objective of the study, its universe, sampling design used, collection of data, statistical tools employed for analysis of data and the limitation of the study
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http://ezinearticles.com/?Indian-Fabric-Machinery-Industry&id=5703694

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Title of the project REASONS BEHIND THE FAILURE OF JCT MILL IN MALERKOTLA MARKET

Objective of the Study Research without any objective is misleading. For any research work, however small it may be, it has to be meaningful and it needs to have some objective. The present study has been undertaken with the sole objective of analyzing the reasons that led to the failure of JCT mills to take over the filament market of M.K. by JCT mills, 1) 2) 3) To study the Malerkotla market needs, which leads to the failure (external). To study supply chain factors which leads to the failure (Internal). To offer suggestion for improvement to capture markets like in Malerkotla

PLAN ADOPTED FOR RESEARCH STUDY Descriptive research was conducted using survey method. Primary data has been collected by using a questionnaire. The questionnaire was designed on the basis of the expectations of the filament consuming power mills of M.K.. The questionnaire contained questions relating to different aspects that had been brought by the change in technology and economical changes & change in demand in the area of M.K for handloom products leading to have the adverse effect on the various mills in M.K

STATISTICAL TOOLS USED FOR DATA ANALYSIS Data collected has been analyzed on the basis of weighted average score. The score ranged from 5 to 1. The weights were assigned as 5 for highly satisfied or strongly
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agree, 4 for satisfied or agree, 3 for neither satisfied nor dissatisfied or neither agree nor disagree, 2 for dissatisfied or disagree and 1 for highly dissatisfied or strongly disagree. Tables and Bar graphs used for this purpose.

Five point scales for the objective questions. Scale was as following:Weight assigned 5 4 3 Likert Statement Highly Satisfied Satisfied Neither satisfied nor 2 1 LIMITATIONS OF STUDY The limitations encountered during the course of present study are detailed as under:1. Since the study is based on a pre-designed questionnaire there is possibility of error due to gap between the truth and the observation.( e.g we found that the profit margin was less then 5% and we expect it more den 24 % ) 2. The selection of respondents was based on convenience sampling and it might not be truly representative of the universe. 3. Although utmost care has been taken to get accurate results, yet because of the risk of ambiguities and misinterpretation on the part of respondents, some element of inaccuracy could have been there.
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Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Never Seldom Someti mes

dissatisfied Dissatisfied Highly Dissatisfied

Often Always

4. Since a small sample size was there, the possibility of sampling errors cannot be ruled out in the study. The constraint of time also prevented an in- depth research of the subject under study.

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DATA ANALYSIS AND INTERPRETATION

Frequency 1. Experience in dealership Experience in dealership Frequency Percent Valid Percent Cumulative Percent Valid 1--3 3--7 8--10 10 + Total 4 2 4 17 27 14.8 7.4 14.8 63.0 100.0 14.8 7.4 14.8 63.0 100.0 14.8 22.2 37.0 100.0

Interpretation The graph is helps us to know that the maximum number of people in are sample are having more than 10 years of experience and the new generation is no adopting this profession. We can see the very less. So what is the reason of this migration of
population.

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2.

Current Supplier

Name The Factory from where you buy current material Frequency Valid arihant local panipath barnala Total 6 17 3 1 27 Percent 22.2 63.0 11.1 3.7 100.0 Cumulative Valid Percent Percent 22.2 63.0 11.1 3.7 100.0 22.2 85.2 96.3 100.0

Interpretation Analysis of the above data reveal that the local suppliers are more active and more preferred by these power mills instead of big players like ARIHANT MILL (VARDHMAN) and the mills in Panipat and Barnala are not as effect source of suppliers to these mills. O we can say that local traditional suppliers are preferred.

28

3.

LOCATION OF FACTORIES

Where the Factory is located Frequency Valid inside punjab outside punjab Total 23 4 27 Percent 85.2 14.8 100.0 Cumulative Valid Percent Percent 85.2 14.8 100.0 85.2 100.0

Interpretation Analysis of the above data reveal that the mills are the source of raw material are the source of raw material are maximum located within the Punjab. This shows that the source, which is close the Malerkotla are more preferred by the power mills.
29

4.

Expectations

What are the factors that you expect Frequency Valid Promotional schemes Credit Facilities Total 1 26 27 Percent 3.7 96.3 100.0 Cumulative Valid Percent Percent 3.7 96.3 100.0 3.7 100.0

Interpretation Analysis of the above data reveals that the expectation of these mill from supplier is credit facilities . Most of them want that the suppliers should provide credit facilities to them.
30

5.

Loyalty

Are you Dealing with other Factories Frequency Valid no Yes Total 23 4 27 Percent 85.2 14.8 100.0 Cumulative Valid Percent Percent 85.2 14.8 100.0 85.2 100.0

Interpretation Analysis of the above data reveals that the mill owners are loyal and they take their raw material from one supplier. This is because of location or good relationships.

31

6.

Awareness about JCT Are you aware of JCT Mills Phagwara Frequency Valid no Yes Total 15 12 27 Percent 55.6 44.4 100.0 Cumulative Valid Percent Percent 55.6 44.4 100.0 55.6 100.0

Interpretation Analysis of the above data reveals that even though JCT is well known company around the world but more than 55.6% of sample is not aware of JCT MILL. SO we can say that awareness may be the factor which may leads to the failure of JCT MILL in Malerkotla.

32

Discriminant Analysis

Analysis Case Processing Summary Unweighted Cases Valid N 27 Percent 100.0 .0 .0

Excluded Missing or out-of-range 0 group codes At least one missing 0 discriminating variable Both missing or out-ofrange group codes and 0 at least one missing discriminating variable Total Total 0 27

.0 .0 100.0

Group Statistics Valid N (listwise) Where the Factory is located inside punjab Ordering Process Unweighted 23 Weighted 23.000 23.000

Help Provided During Ordering 23 Process Opinion on the availability of credit facilities provided by the 23 company Availability of ordered product 23 Time taken by factory to deliver 23 the order

23.000 23.000 23.000 4.000 4.000 4.000

outside punjab

Ordering Process

Help Provided During Ordering 4 Process Opinion on the availability of 4 credit facilities provided by the company
33

Group Statistics Availability of ordered product 4 4.000 4.000 Time taken by factory to deliver 4 the order

Tests of Equality of Group Means Wilks' Lambda Ordering Process .993 Help Provided During 1.000 Ordering Process Opinion on the availability of credit .996 facilities provided by the company Availability of ordered .965 product Time taken by factory to .893 deliver the order F .168 .000 df1 1 1 df2 25 25 Sig. .685 1.000

.111

25

.742

.901 3.011

1 1

25 25

.352 .095

Analysis 1

34

Summary of Canonical Discriminant Functions

Eigenvalues Functi % on Eigenvalue Variance 1 .195a 100.0 of Canonical Cumulative % Correlation 100.0 .404

a. First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda Test of Functi Wilks' on(s) Lambda 1 .837

Chi-square df 4.003 5

Sig. .549

A lambda of 1.00 occurs when observed group means are equal. A small lambda indicates that group means appear to differ. the Lambda of 0.837 has a significant value thus, the group means appear to differ.
Standardized Canonical Discriminant Function Coefficients

35

Function 1 Ordering Process -.256 Help Provided During -.037 Ordering Process Opinion on the availability of credit .304 facilities provided by the company Availability of ordered -.563 product Time taken by factory to .845 deliver the order

Classification Statistics

Classification Processing Summary Processed 27 Excluded Missing or out-of-range 0 group codes At least one missing 0 discriminating variable Used in Output 27

36

Classification Function Coefficients Where the Factory is located outside inside punjab punjab Ordering Process 20.607 19.827 10.401 Help Provided During 10.492 Ordering Process Opinion on the availability of credit 13.826 facilities provided by the company Availability of ordered 8.558 product Time taken by factory to 9.514 deliver the order (Constant) -89.012 Fisher's linear discriminant functions

14.577

7.232 11.645 -91.144

Classification Resultsa Where Factory located Predicted the Membership is outside inside punjab punjab 18 78.3 5 3 21.7 75.0 Group

Total 23 4 100.0 100.0

Original Count inside punjab % inside punjab

outside punjab 1 outside punjab 25.0

a. 77.8% of original grouped cases correctly classified.

Classification Results is a simple summary of number and percent of variables

37

classified correctly and incorrectly. It shows that the inside punjab are more accurately classified with 78.3% of the cases correct. For the outside Punjab 75% of cases were correctly classified. Overall, 77.8% of the original cases was correctly classified.

Factor Analysis

Correlation Matrix Help Orderin Provided g During Proces Ordering s Process Correlatio Ordering n Process 1.000 .208 Opinion on the Time availability of Availabilit taken by credit facilities y of factory to provided by ordered deliver the the company product order -.179 -.088 .053

Help Provided During Ordering .208 Process Opinion on the availability of credit facilities -.179 provided by the company Availability of -.088 ordered product Time taken by factory to .053 deliver the order a. Determinant = .848

1.000

.000

-.158

.000

.000

1.000

.231

-.043

-.158

.231

1.000

-.034

.000

-.043

-.034

1.000

38

KMO and Bartlett's Test Kaiser-Meyer-Olkin Adequacy. Bartlett's Sphericity Test Measure of Sampling .514 3.878 10 .953

of Approx. Chi-Square Df Sig.

the Kaiser-Meyer-Olkin (KMO) and Bartlett's test. The KMO measures the sampling adequacy which should be greater than 0.5 for a satisfactory factor analysis to proceed. Looking at the table below, the KMO measure is .514

39

Communalities Initial Ordering Process 1.000 Help Provided During 1.000 Ordering Process Opinion on the availability of credit 1.000 facilities provided by the company Availability of ordered 1.000 product Time taken by factory to 1.000 deliver the order Extraction .455 .728

from the output is a table of communalities which shows how much of the variance in the variables has been accounted for by the extracted factors.

.624

.431 .241

40

Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings % of Cumulativ Variance e % Total 28.910 20.669 28.910 49.579 1.274 1.205 % of Varianc Cumulativ e e% 25.479 24.101 25.479 49.579

Com % of pon Tota Varianc Cumulative ent l e % Total 1 2 3 4 1.44 28.910 6 1.03 20.669 3 .986 19.718 .884 17.673 28.910 49.579 69.298 86.971 1.446 1.033

5 .651 13.029 100.000 Extraction Method: Principal Component Analysis. Rotated Component Matrixa Component 1 Ordering Process .639 2 -.215 .186

Help Provided During .833 Ordering Process Opinion on the availability of credit -.122 facilities provided by the company Availability of ordered -.363 product Time taken by factory to -.158 deliver the order

.780

.547 -.465

Finally Component 1 is CONSULTANCY Component 2 is CREDITABILITY

41

Cluster Analysis

Case Processing Summarya,b Cases Valid N 27 Percent 100.0 Missing N 0 Percent .0 Total N 27 Percent 100.0

a. Squared Euclidean Distance used b. Ward Linkage

Ward Linkage

42

Agglomeration Schedule Stage Cluster First Cluster Combined Coefficient Appears Cluster 1 Cluster 2 s Cluster 1 Cluster 2 Next Stage 1 25 16 15 14 10 11 17 18 8 11 2 3 2 1 10 7 10 1 1 3 2 3 2 2 1 Dendrogram Dendrogram using Ward Method
43

Stage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

27 26 22 21 19 16 13 24 23 20 12 11 8 9 14 25 18 15 4 17 5 6 7 10 3 2

.000 .000 .000 .000 .000 .000 .000 .500 1.000 1.500 2.167 3.000 3.833 4.733 5.733 6.933 8.433 10.090 11.890 14.019 16.186 18.452 22.095 27.495 37.679 61.407

0 0 0 0 0 0 0 0 0 0 7 0 0 12 1 6 0 16 15 19 13 14 21 22 24 20

0 0 0 0 0 3 0 0 0 0 0 11 10 0 5 2 9 4 0 8 0 0 17 18 23 25

15 16 6 18 15 16 11 20 17 13 12 14 21 22 19 18 23 24 20 26 23 24 25 25 26 0

From Dendrogram and Agglomeration Schedule table we are able to make three clusters :

Cluster 1:[ 1 15 19 20 26 ] : customer wants ease of PROCESS Cluster 2: [ 12 14 24 25 ] : awarded customer about quality and price of material

Cluster 3: [13 21 23 ] : Highly responsive customer

Analysis:
The Dream of JCT mils to cover the region of maler kotla does not have a smooth road as the scope for a new entrance in that area is very limited.
44

1) 2) 3) 4) 5) 6)

The entry barrier is high for JCT in Maler kotla. The Risk involved is very much more with a very less return as in present the market is in its declined stage Also most of the Handloom mills workers and Owner are not aware of JCT the Demand of these products tends to getting low day by day, making a Many of the handloom mills got closed down in recent years and employees

case the supply is very much more and the demand is very much less

mills,Phagwara. dawn of Handloom mills in Maler Kotla. get a new job in government mills like sanik mill, maler kotla, Arihant mill, Maler kotla,Swaraab Mill,Maler kotla. 7) High Potential competitors present in maler kotla itself e.g Arihant mills of maler kotla is a firm of vardhman group which is a great brand name more better then JCT mills 8) 9) for delivering the products to handloom mills will not be cost effective for JCT JCT just established a new plant and invested a big amount on it,but for as they have to deliver the product and bear the transportation cost setting up in maler kotla, they have to give there material on a big credits to the mills which are already going into losses 10) profits 11) 12) 13) low. Electricity problems are also a main issue as these handloom mills are Workers switching to other occupations as they are getting more wages in The demand of the finished goods manufactured by handloom mills is very operated in small homes. other fields. Operating cost for handloom mills is too high leaving very less space for the

Conclusion:

45

1)

JCT has to manufacture different products as it is manufacturing in todays

date as the products in filament category manufactured by JCT is not consumed by the handloom mills of maler kotla. 2) 3) The Filament that Handloom mills uses in Maler kotla is of 6,7,8,9 no. but To manufacture the demanded filaments JCT has to renew its whole JCT makes filament of more den 14 no. Here no. specifies the diameter of the thread. production layout and need to install new machines which is not feasible in present scenario.

Bibliographic
1. Imran Sharif Chaudhry, Muhammad Bashir Khan and Mumtaz Anwar (2009) (Factors Affecting Cotton Production in Pakistan: Empirical Evidence from Multan District Journal of Quality and Technology Management, Volume V, Issue I1, pg. 91-100. 2. Gokarn, S (1998): 'Economic Reforms in India: Towards a Strategic Perspective' in T Roy (ed),Economic Reforms: The Next Step, Vol II, Frank Bros, Delhi. 3. Nath, Pradosh and N Mrinalini (2000): 'Benchmarking the Best Practices of Noncorporate R and D Organisations', Benchmarking: An International Journal, Vol 7, November 2. 4. Roy, T (1996): 'Market-Resurgence, Deregulation and Industrial Response; Indian Cotton Textiles in the 1990s', Economic and Political Weekly, XXXI(21), Review of Industry, May. -(1998): 'Development or Distortion? 5. Sandesara, J C (1966): 'Scale and Technology in Indian Industry', Bulletin of the Oxford University Institute of Economiics and Stati.tics, Vol 28, No 3. Textiles Committee (Govt of India) (1999): 'Census of Textile Power Processing Industry in India'. Economic and Political Weekly September 27, 2003. 6. Saha, J and P R Shukla (1998): 'The Indian Primary Textile Industry' in P Chandra (ed) (1998), Technology, Practices and Competitiveness: The Primary Textile Industry in Canada, China and India, Himalaya Publishing House, Mumbai.

46

7.Applied and Decorative Arts: A Bibliographic Guide. Donald L. Ehresmann. 2d ed. Englewood,CO: Libraries Unlimited, 1993.Detailed annotated bibliography. See chapter 18: Textiles, pp. 450-509 .8.Bibliographica Textilia Historiae. Seth Siegelaub, ed. New York: International General, 1997.Based on the library and archives of the Center for Social Research on Old Textiles,Amsterdam. Entries alphabetical by author, with an index by subject and country. 9.The Dictionary of Art. 34 vol. London: Macmillan, 1996. 10.The Dictionary of Needlework: An Encyclopedia of Artistic, Plain, and Fancy Needlework.(Facsimile of 1882 edition) New York: Arno, 1972. 11.Guide to the Literature of Art History 2. Max Marmor and Alex Ross, eds. Chicago: American Library Association, 2005. 12.Extensively annotated bibliography See Rugs and Carpets, Asian countries, p. 619-620;Textiles, pp. 621- 649, especially listings for Early Christian-Byzantine and Islamic, pp. 629-633; Asian countries, pp. 645-647 and Africa and Oceana, pp. 647648; and Embroidery and Needlework, p. 649. Web Sites METASITES Artifact. Selective limited area search engine for the arts. http://www.artifact.ac.uk. Arts and Humanities Data Service (AHDS). http://vads.ahds.ac.uk Searchable image collections of British institutions, including Constance Howard Resource and Research Centre in Textiles: Material Collection, and the London College of Fashion Cordwainers (shoe makers) Collection. Registration required. Costumers Manifesto: Costume and Textile Museums & Societies. http://www.costumes.org/history/100pages/MUSEELNX.HTM Extensive and excellent list of links. Some are to books for sale. Textile Society of America: Resources. http://textilesociety.org/resources_textilesites.htm
47

Textile-related web sites. Textiles Through Time. http://www.dfmg.com.tw/dhtml/site-link/tac-museum.htm Long list of textile links, many no longer active. Textile and Costume Collections on the Internet Webography. http://isthmia.ohio-state.edu/teg/hist787/textiles.htm (Document prepared for history course at Ohio State University, 2000, extensive, but not updated). MUSEUM SITES WITH SIGNIFICANT CONTENT Antonio Ratti Textile Center, Metropolitan Museum of Art. http://www.metmuseum.org/collections/department.asp?dep=20 Helen Louise Allen Textile Collection, University of Wisconsin. http://www.sohe.wisc.edu/depts/hlatc

Annexure
Questionnaire
Dear Responded The purpose of this research is to study the market needs of Malerkotla Market and analyzes the opportunities available. We are doing this study to understand the factors, to which market is sensitive. Participation in this study is voluntary. You can choose not to take part and you can also choose not to finish the questionnaire or omit any

48

question you prefer not to answer without penalty or loss of benefits. By returning this questionnaire, you are giving your consent to participate. If you have any questions, concerns, or complaints or if you feel you have been harmed by this research please contact Lovely Professional University.

1 Name : 2 Address : 3 Age: 4 Gender

_________________________________________________ _________________________________________________ ______________________ Male Female

5 Experience in dealership 1-3 4-7 8-10 6 Name The Factory from where you buy current material ______________________________ 7 Where the Factory is located Inside Punjab 8 Specify the Location of Factory

ABOVE 10

Outside Punjab ____________________________________

9 Experience in dealership WITH THAT FACTORY 1-3 4-7 8-10 10 Ordering Process
Very difficult Somewhat difficult Normal Somewhat easy

ABOVE 10
Very easy

11 Help Provided During Ordering Process

Always Often Sometimes Rarely Never

12 Opinion on the availability of credit facilities provided by the company

Very satisfied Somewhat satisfied Neutral Somewhat Dissatisfied Very Dissatisfied

13 Availability of ordered product

Always Often Sometimes Rarely Never

14 Is substitute is available for unavailable product in factory

Always Often Sometimes Rarely Never

15 Time taken by factory to deliver the order

Very satisfied Somewhat satisfied Neutral Somewhat Dissatisfied Very Dissatisfied

16 Is product delivered is according to the ordered one Always Often Sometimes Rarely

Never

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17 What do you think about QUALITY of product

Very satisfied Somewhat satisfied Neutral Somewhat Dissatisfied Very Dissatisfied

18 What do you think about PRICE of product

Very high High Average Low Very Low

19 What do you think about Promotional activities given by factory

Very Good Good Satisfactory Below satisfactory Poor

20 What type of Promotional activities do you prefer

Discount Gift Prize Offer Other (specify)_____________ _____________ Margin Brand Name

21 Which factor enables you to be the dealer of Factory products

Promotion Schemes Company Policy

22 How much of your profit is derived from products?

24% or less 25% - 49% 50% - 74% 75% or more

23 What are the factors that you expect

Promotional schemes Sales Follow-up Service Credit Facilities

24 Are you Dealing with other Factories

NO Yes

25 If YES , Specify them

NO

_____________________________________________
Yes

26 Do you have any COMPLAINTS about the product 27 If YES, Specify them _____________________________________________

28 Do you have any suggestion for improvement

NO Yes

29 If YES, Specify them

_____________________________________________

30 Are you aware of JCT Mills Phagwara NO Yes 31 If YES, Are you dealer of JCT Mills Phagwara NO Yes

If No, Specify the factor

32 What do you think about QUALITY of product of JCT MILL Phagwara
Very satisfied Somewhat satisfied Neutral Somewhat Dissatisfied Very Dissatisfied

33 What do you think about PRICE of product of JCT MILL Phagwara

50

Very high

High

Average

Low

Very Low

34 What do you think about Promotional activities given by JCT MILL Phagwara
Very Good Good Satisfactory Below satisfactory Poor

35 Which factor enables you to be the dealer of JCT MILL Phagwara

Promotion Schemes Company Policy Margin Brand Name

Thank you !

51