MINI PROJECT

A STUDY ON INDUSTRY AND COMPANY ANALYSIS

(WITH REFERENCE TO COTTON INDUSTRY)
A Mini Project report submitted in partial fulfillment of
the requirements for the completion of II Semester

Submitted by
P.VIJAYENDRA
(Reg. No. 13471E00C0)





Under the guidance of
S.SIVA SANKAR
M.B.A., M.Com., (Ph.D)
Assistant Professor






DEPARTMENTOF M.B.A.
NARASARAOPETA ENGINEERING COLLEGE,
NARASARAOPET-522601, GUNTUR (DT).

Affiliated to
Jawaharlal Nehru Technological University,
Kakinada
(2013 2015)

Introduction to cotton industry:

Cotton is a soft, staple fiber that grows around the seeds
of the cotton plant. It is a natural fiber harvested from the cotton
plant. The fiber most often is spun into yarn or thread and used
to make a soft, breathable textile, which is the most widely, used
natural-fiber cloth in clothing today.
History of cotton industry:

Indian Cotton Industry's history of establishment has a rich
past. English did gradual inaugurations of a number of
beneficial industries in India and the country was opening
its eyes to a whole new era of mechanisation. With 19th
century India had successfully established major production
industries, owing to the initiative of the British East India
Company. Cotton was an essential staple fabric, which was
needed in almost every work of life in India.

Major competitors in industry:

Company name place

1) Paramount Textiles Mills Pvt. Ltd - Madurai
2) Siva Sankari Mills - Coimbatore
3) PEC Ltd - Delhi
4) Indus Fila Pvt. Ltd - Bangalore
5) Alok Industries - Silvassa
6) R.M. Mohite Textilies - Kolhapur
7) Sachin Textiles - Ichalkaranji
8) Kayaar Exports - Tiruchengode.
9) GTN industries - Hyderabad
10) GTN Enterprises - Kochin
11) Prathibha Syntex - Ahmedabad
12) Mandhana Weaving House - Tarapur
13) Bombay Royan Fashions - Sangli




Problems in industry:
Cotton textile industry is obsessed with many problems. Two main
factors which have wrecked die industry are Government's textile
policy and the growth of the power loom sector.
Power shortage-Textile mills are facing acute shortage of power.
Supplies of coal are difficult to obtain and frequent cuts in electricity
and load shedding affect the industry badly. This leads to loss of man
hours, low production and loss in the mills.
Low productivity of labour-Low productivity is another major problem
of cotton textile industry. On an average an Indian factory worker only
handles 380 spindles and 2 looms as compared to 1,500-2,000
spindles and 30 looms in Japan. If the productivity of an American
worker is taken as 100, the corresponding figure for U.K. is 51 and for
India only 13. Also industrial relations are not very good in the
country. Strikes, layoffs, retrenchments are the common features of
many cotton mills in the country.

Government policy:

The Cotton production policies in India historically have been oriented
toward promoting and supporting the textile industry. The Government
of India announces a minimum support price for each variety of seed
cotton (kappas) based on recommendations from the Commission for
Agricultural Costs and Prices. The Government of India is also providing
subsidies to the production inputs of the cotton in the areas of fertilizer,
power, etc

Suggestions:

1. India must emulate China by taking advantage of its cheap,
hardworking and low-skilled workers to compete better in world
markets in the labour-intensive textile market.
2. The labour laws pertaining to the textile industry need to be
relooked, as the present stringent labour laws act as a deterrent for
firms planning to expand or enter.
3. The government needs to provide substantial incentive to textile
machinery manufacturers and other consultancy/service providers
to establish operations in India. Fortunately, India enjoys good
reputation internationally for its engineering skills. This is a major
attraction for European and Japanese textile and clothing
equipment manufacturers to set up shop (and R&D bases) in India.
COMPANY PROFILE


About The Swathi Cotton Pvt.Ltd

Swathi Cotton Pvt.Ltd with its diverse interests in core areas
is surging ahead with drive and determination. with all the
companies superbly integrated in one single campus, the
group harnesses an entrepreneurial spirit, state-of-art
technology and financial strengths to emerge as an
industrial force to reckon with.

VISION / MISSION

Its vision of the future where change will be embraced as the very
basis of opportunity and endeavor.

Success is a matter of excellence, and not chance.

Promoters of the company:

Prathipati Pullarao set up a cotton ginning mill in 1998.

The operations grew rapidly to lay solid foundations for giant
surging ahead in diverse environments.

To the group, the future is rich in possibilities.
Products:
Ring spun yarns
Open and spinning
TFO
Ring Doubling


Major competitors in company:

Jagadguru textiles

Nsl textiles

Ysr spinning mills

Ml group

Amaravathi Textiles Pvt.Ltd

Kalpatharuvu spinning mills lid



ACHIEVEMENTS:



SWOT Analysis of Industry
Strengths
1. Strong cotton base
2. Strong entrepreneurial class
3. Flexibility in production of small order lots
4. Presence of integrated concept to consumer
5. Ability to handle value additions, embellishments, etc
6. Adequate labour supply at relatively competitive wages
7. Good cultural comfort with US and Europe
8. Growing domestic market

Weaknesses
1. Poor work practices resulting in higher labour cost component in many staple garments, in spite of
low labour costs
2. Rigid government labour policy and lack of rationalisation of duties in MMF
3. High transaction and power cost
4. Too much emphasis on cotton, synthetic fibre base not equally developed
5. Technological obsolescence and lower efficiencies
6. Lack of strong linkages between raw material supplier and the apparel manufacturer
Opportunities
1. Quotas carried on in China after 2005
2. Good political equation with EU and US
3. Improvements in infrastructure and regulations
4. Research and product development
5. Buyers preference for India, after China
6. Understanding buyers need because of language advantage

Threats
1. Rupee appreciation in last few months
2. Trade blocs and partnerships at the exclusion of India
3. Location disadvantage: long transit time to key markets
4. Pricing pressure, following opening up of quotas
5. Enhanced competition from other countries similarly constrained by quotas