Post on 12-Apr-2015
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
CHAPTER-1
INDUSTRY PROFILE
THE TEXTILE INDUSTRY
The information presented in this section has been extracted from publicly
available documents which have not been prepared or independently verified by the
Company, the Lead Manager, or any of their respective affiliates or advisors.
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.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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 country’s overall economy. Currently, the textile industry accounts for some 14%
of industrial production and about 4% of India’s 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 textile industry 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 Indian government adopted a separate policy for
development of the Indian textile industry in 1985. Further, in 2000 the government
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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 India’s export turnover to US$50 billion by 2010.
Quota Regimes in the Textile Industry and Removal of Quotas
Textiles constitute an important segment of global trade. Until very recently, however,
global trade in textiles was subject to many tax and non-tax based trade barriers and
had experienced various transitional phases, which can be broadly summarized as
follows: In 1995, the Uruguay Round of the World Trade Organization brought the
Multi- Fibre Agreement (MFA) to an end, giving way for a free trade regime in the
global textiles trade to emerge. When the ATC came into existence on January 1,
1995, it provided that restrictions on the textile trade imposed by World Trade
Organization members be phased out in four steps over a period of 10 years, starting
in January of 1995. Date Minimum Volume Integrated Accumulated Volume.
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 country’s total fabric production. The preferences and
protections accorded to this sector by the government, however, are being 109
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.
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 is substantially higher than the
labour cost in India. Labour costs in India are some of the lowest in the world. India’s
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 a global 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. India’s
ability to effectively translate the latest fashion trends into final products gives the
Indian textile industry an edge over other countries.
Fabric Production
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Since 1999, the proportion of man-made fibers in India’s 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 industry with 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.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
COMPANY PROFILE.
Company History - Bombay Rayon Fashions Our Company was incorporated as
Mudra Fabrics Private Limited (MFL) on May 21, 1992. On October 13, 1992 our
Company was converted into a public limited company. Subsequently, on September
30, 2004, name of our Company was changed to Bombay Rayon Fashions Limited
(BRFL). In March 2005, with a view to consolidate business of our Group, Bombay
Rayon Private Limited (BRPL) was amalgamated with our Company and two
partnership firms of the Group, i.e, B R Exports and Garden City Clothing were taken
over by BRPL and our Company 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, our 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 our
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
Back ground and inception of the company:-
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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 our 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 our 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 our target market is a diverse mix of the domestic fabrics market
and the international fabrics and garments market. Our eight manufacturing units are
located in Navi Mumbai, Silvassa, 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 us to provide quality services to our
customers in India and abroad. We currently employ over 5,800 people. With our
current manufacturing capacity, we can produce some 50 million meters of fabric and
12 million garments annually.
Nature of business
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
We are a vertically integrated company engaged in the manufacture of a variety of
fabrics and garments at modern production facilities.
Our Manufacturing Capacities
We are primarily in the business of manufacturing woven fabrics and garments for
export. We currently have facilities for yarn-dyeing, weaving, processing grey fabric
and manufacture of garments, including the packaging thereof. We are also expanding
our current manufacturing capacity by constructing an additional manufacturing unit
in Bangalore which is expected to become operational by December, 2010. It will
help us increase our current production by some 22,000 pieces of garments per day.
Manufacture of Woven Fabric
For nearly two decades we have been manufacturing woven fabric. We 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, we have also invested in and installed at our plants modern
preparatory machines used for winding, sizing, and direct and sectional warping. The
table below lists some of our manufacturing equipment.
Procurement of Grey Yarn and Yarn Dyeing
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
We 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.
We use grey or dyed yarn depending on the nature of the orders we receive. If the
yarn needs to be dyed, we currently outsource that process.
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. We
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. We inspect the grey fabric and mend blemishes
wherever required. Afterward, we pack the fabric and send it to the process house.
Fabric Processing and Finished Fabric Checking
Our Integrated Facility contains a modern process house, which has facilities for
washing, bleaching, mercerising, printing, dyeing, calendaring, treating brightness,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.
Procurement of fabric
Depending on the customer order and design, we 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 we use comes from our integrated manufacturing facility in Bangalore.
Depending on demand, we 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/design department. 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 labeled for identification of size
and shade. This process is known as sorting. The sorted fabric is then bundled and
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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, 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. We also use thread-removal machines, which vacuum loose, superfluous
thread from the shirt.
Final Inspection
All the garments we manufacture are subjected to stringent quality 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.
Product Profile
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
FABRIC
Every fabric in the Bombay Rayon collection must pass the ultimate comfort test.
That’s why we take the time and expense to ensure it stays so unbelievably soft and
comfortable. Our commitment to genuine Bombay Rayon quality shows in the fabrics we use.
Along with our 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. We at Bombay Rayon understand the needs of this exciting industry and are
committed to supporting our customers’ requirements. Our line combines quality and style
with an extensive offering of men’s styling.
You're sure to find the perfect jacket while browsing through our on-line catalogue. We offer
a large variety of fabrics to choose from and pricing options to fit every budget. We feature
premium Shirting, Suiting, Voiles and Fashion Garments - all of which co-ordinate
wonderfully with every fabric.
APPAREL
Comfortable, pure and simple - that’s what the Apparel Collection from Bombay Rayon is all
about. Great clothes in easy, contemporary styles made from soft, durable fabrics that you’ll
enjoy wearing to the office, on the road and over the weekend…whenever and wherever your
active life takes you.
Our 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
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Rayon apparel, we're proud to offer apparels of the highest quality, with construction details
that are evident in every style we make. Our 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, we're 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 our
collection.
Brief Description of different steps involved in garment manufacturing 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,. We have a team of skilled professionals who makes this assessment. We
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
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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
4.Final checking of garments
We subject 100% of the garments that we 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 we have ventured into the value –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.
Our competitive Strengths
1. Experience of our promoters
2. Flexibility in manufacture of garments
3. Designing capabilities
4. Lower turnaround time
5. low labour cost
6. Economies of sale
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
7. High productivity
8. Quality assurance
9. Sampling capabilities
1. Experience of our promoters
Our promoters and we have adequate experience in the textile industry and
we have successfully implemented expansion project earlier.
We also have adequate technical and commercial staff to handle
implementation of the proposed new expansion project
2. Flexibility in manufacture of garments
We are in the business of manufacture of woven fabric and for the last
fifteen years it as been our main stay. We have over the period of time developed
expertise in the manufacture of any customer desired variety involving complex
design of woven fabrics of superior quality.
3. Designing capabilities
Designing is a critical element of fabrics and garments both. Development
of innovative designs is one of our main strengths. It is also our USP (UNIQUE
SELLING PROPOSITION) . We are into the high end products we have in –
house teams of experienced designers in weaving garmenting and home textiles.
We have installed software packages CAD/CAM systems for generating designs
on computers .At least 4-5 new designs are developed on a daily basis in each of
the divisions.
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4. Lower turnaround time
Garment manufacturing is highly fashion oriented. Fashion is time bound and
delay in meeting deadlines results in loss of businesses. Meeting customer
deadlines on a consistent basis is important for business. Our in house facilities of
design studio, sampling of fabrics and garments, weaving, and garmenting allows
us to plan and deliver the order in shortest turnaround time.
5. Low labour cost
We are located on the outskirts of Bhiwandi, where skilled labour is
available in abundance. Thus our labor costs are maintained at realistic levels. Added
to that we have kept ourselves updated on the latest available technologies and
continuously look for new attachments and value adding equipment to enhance the
performance of our machines such that the labor input required is maintained while
the production/ productivity is improve
1. Economies of scale
The company‘s production capacity in each of our units / divisions can be
considered mid to large size. It allows us the advantage of economies of scale.
Although the units are spread over different locations, the raw material procurement
and purchase functions are centralized. we can therefore take advantages of bulk
discounts
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7. High productivity
High level of modernization, trained work force and managerial expertise results
in consistent high level productivity. We have established modern production
facilities at each of our plant and we are continuously on the lookout for new /
updated technologies. Our investment in value adding equipments/ attachments to our
machines as resulted in twin benefits of consistent high quality and improves
productivity
8. Quality assurance
Each of the company’s products passes through stringent quality checks. The
quality assurance measures taken by the company include through checking of all raw
material and other inputs right down to finished goods to ensure quality, statistical
methods to identify and analysis areas of improvement, experienced man power for
quality assurance activities, creation of data base for future reference and analysis etc.
9. Sampling Capabilities.
We have all the facilities like desk looms, sample dyeing, sample printing,
washing and processing facilities to produce fabric samples per designs developed by
our design studio. In the initial stages of the order the design and sampling department
continuously interacts with the buyers till the fabric sample is approved. Sample
Yardages are made for making garments and in our dedicated fabric sampling unit,
garment samples are made, remade, design changes are incorporated till the customer
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
finally approves the garment sample. This entire process is very time consuming and
can take 2 months our dedicated in house facilities enable us to compress this time
substantially.
CUSTOMERS PROFILE
Federated stores – U S A
V F (WRAGLER) – U S A
Liz Claiborne – U S A
DKNY – U S A
ECKO – U S A
MARK ECKO – U S A
Guess – Italy
Roberto Cavalli – Italy
Tom Tailor – Germany
Otto’s – Germany & Switzerland
C & A Chain of Stores – Germany
Kiabi Stores – France
WR Replay – Italy
BHS – UK
Burtons – UK
Topman - UK
Kickers – UK
Next – UK
GEORGE – UK
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Business Operations
Yarn Dyeing
The Company’s yarn dyeing operations are carried out at the integrated textile unit in
Doddabalapur, Bangalore. Nearly 1.4 million kgs of yarn (approx. 4,000 kgs a day) is
dyed annually at this facility. The expansion programme initiated by the Company
will by setting up new facilities in Maharashtra see a further increase in capacity to
the extent of 10.5 million kgs, totaling the capacity to 11.9 million kgs per annum.
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 to international buying houses and retailers
across the EU and USA. While the current facilities produce 30 million pieces per
annum, our 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 we 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.
Retail
The 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 honoured as the 'largest shirt maker in India'. We also received
Dun & Bradstreet - Rolta Corporate Award as one of India's top 500 companies.
Our Doddaballapur mill won the Prestigious National safety Award for
"Outstanding Performance in Industrial safety as winner for the performance year
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2008 based on the lowest average frequency rate." This award was presented by
Mr. Mallikarjuna Kharge, honorable Minister for Labour and Employment -
Government of India which was received by our Vice President Mr M Gopi on 27
Sept 2010 at New Delhi.
MILESTONES OF THE BRFL
1986 Mr. Janardhan Agrawal establishes the Bombay Rayon Group.
1990 Maharashtra gets its first fabric manufacturing facility.
1998 Bombay Rayon group commences export of fabrics.
2001 Launch of the Garment Division.
2005 Bombay Rayon Groups business is consolidated into BRFL.
2005The company makes a successful IPO with a listing on all the stock exchanges
in India.
2005 BRFL acquires DPJ Clothing UK, supplying to high street retailers in UK.
2005Set up of 7 garment manufacturing facilities in Bangalore with around 7000
machines.
2007 BRFL acquires "Leela Scottish Lace", one of the largest garment manufacturing
units set up in India, making BRFL one of the largest apparel groups in India.
2007 BRFL acquires "LNJ Apparel" a 1000 machine specialized bottoms plant.
2007 BRFL marks the commencement of the mega USD 250 million Textile and
Garment Project under a special MOU signed with the government of
Maharashtra.
2007 BRFL establishes a fully integrated textile mill in Doddaballapura, Bengaluru
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with a capacity to process 1 lakh meters/day.
2008 BRFL acquires the iconic brand “Guru”.
2009 BRFL is sanctioned the project under the Scheme for Integrated Textile Park
(SITP) by the Govt. of India.
2010BRFL establishes the world’s largest fabric processing capacity of 5 lakh
meters/day at Tarapore.
2010 BRFL acquires STI India Ltd, a world class producer of 100% cotton yarn.
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Management Pattern by Bombay Rayon
Si. 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
Area of Operations
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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Opening of overseas offices
Our 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 our European customers.
We intend to open more overseas offices to make products more readily available and
accessible to our customers. Our strategy is to give our 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
blended/cotton fabrics in India. Our products face competition from this large number
of fabrics manufacturers in the Non-Corporate Sector. Further, in the free trade
regime phased in by the Agreement on Textile and Clothing, there has been intense
competition in the international markets. Mexico, Turkey and Eastern Europe benefit
from their proximity to our main target markets of the U.S. and Europe and have the
ability to deliver products to these customers in shorter turnaround times. Here our
competitive strengths are significantly lower labour costs in India and our economies
of scale.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
We also face competition from manufacturers in other cost efficient supplier
countries such as China, Pakistan, Bangladesh, Sri Lanka and Vietnam. We are able
to compete more effectively with such countries due to our quick turnaround times
supported by our in-house sampling capabilities. We intend to meet and overcome
this competition through product differentiation (offering a value added, design based
product in the mid-to-high end market segment), establishing state-of-the-art facilities
across the textile chain (from weaving to processing to garmenting), and expanding
into home textiles (an area of potential growth in the free trade regime).
Our Marketing and Sales
Our Customers
Our fabric customers include leading garment exporters in India, leading garment
makers in the overseas markets, domestic garment manufacturers, domestic
wholesalers and traders, and retailers. In addition, we have developed a strong
network of marketing agents who sell fabrics to various small sized units and traders,
thereby ensuring greater penetration of the retail market. Our garment customers
include top brands from the U.S. and Europe.
Our Market Segments
The following table indicates our presence by market segment:
Our Distribution channels
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Products/market segments Distribution channel
Fabrics-Domestic sale
Fabrics-Exports
Germents-Exprot
BRFL-Marketing agents/wholesalers/Garment
manufactures/Retailers
BRFL- overseas garment manufacture/ Exporters/
International buying houses
BRFL- Buying Houses /international brands/
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 us for their orders.
Domestic Sale of Fabrics to Readymade Garment Manufacturers operating in
the
Domestic Market
This is another segment gathering significance in the domestic garment industry. With
the popularity of readymade garments on the rise and with the increase of retail
shopping malls, the demand for fabrics from this segment has increased.
Domestic Sale of Fabric to the Retail Market
The local retail market is well developed and we have been catering to this market for
two decades. We have a network of over 10 agents and 70 distributors catering to
more than 2,000 retailers throughout India.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Export of Fabric
We are an established fabrics exporter to various overseas markets. Suiting fabrics are
exported to Europe and shirting fabrics to countries in the Middle East and to Europe.
Export of Garments
Our strategy for the export of garments is to focus on medium-to-high class garment
labels to ensure our per unit price realization is maximised. We offer garments based
on seasonal fashion trends and colour choices. Our expertise in the design of fabrics
to customer specifications, garment designs and garment samples meeting stringent
quality standards has helped us to attract well-known brands from Europe and the
U.S. We regularly participate in international trade fairs to develop new relationships
and to keep abreast of contemporary fashion trends.
Use of Information Technology ("IT")
We are a technology-oriented organisation and use information systems extensively
across our operations. Most of our critical functions, such as operations, supply chain,
finance and accounts and human resources, are linked through a computer network.
This has enabled us to improve operational efficiency, reduce our costs of operations,
and enhance overall cost efficiency.
Fabrics Division: In our fabrics divisions, we 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:
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
• 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 our operating units involved in the fabrics line, such as yarn
dyeing, weaving and fabric processing and all six of our fabrics warehouses, including
grey yarn and finished yarn stores, general stores and spares, dyes and chemicals
stores, grey fabrics, and finished fabrics stores. The system has been implemented at
our Integrated Facility at Doddaballapur.
Garment Division: In our garment divisions, we are in the process of implementing
an Enterprise Resource Package software system developed by TAAB Software and
Solutions Pvt. Limited, New Delhi This system has following fully integrated
modules:
• Costing and Quotation
• Sample Order Processing
• Purchase Order and Progress Monitoring
• Merchandise Suite
• Procurement Manager (Bill of Material)
• Material Inventory and Audit
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
• Production Suite
• Invoice and Packing List
• Management Information System Reports
• Business Accounting
The system will link the marketing office and production units through two sets of
Servers and will provide for on-line interactions. The system is under implementation
and will be ready for testing and roll out by January 31, 2007. Data transfer linkages
Between the fabrics division’s Prime Technology software and the garments
division’s TAAB software is under implementation
Longitudinal Cutting
Packing
Inspection
Longitudinal Hemming
Cross Cutting
Cross Hemming
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Work flow Model
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
The Environment
Good environmental practice has always been a primary consideration in the
development of our business, leading us to seek practical and environmentally sound
solutions to avoid waste production. Our business activity inevitably has an impact on
the environment. We 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. Our environmental approach comprises the following:
We are committed to actions to restore and preserve the environment;
We are committed to developing safe and clean technologies using the best
environmental practices;
We are committed to minimizing waste and pollutants, conserving resources,
and recycling materials at every stage of the product life-cycle;
We 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
We will develop effective methods and procedures, and will promote a culture
in which all employees share their commitment.
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. The company signed a
memorandum of understanding with the Government of Maharashtra. New
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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 an investment 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.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
CHAPTER 3
ORGANISATIONAL REVIEW
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 are
considered 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 each stage, it would enable them
to cut out delays in delivery of fabrics to their garment units. These apart there
stress on building & enhancing their design capabilities enables them to present
their own collections & offer total package solutions to the customers.
2. To rapidly expand garments capacity to meet the growing opportunity in the
market place and in the process actively consumes 30-50% of their own
production of fabric.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
3. Position there selves in the mid to high end garment segment such that they
enhance their acceptance and improve their capabilities to meet the stringent
compliance stipulated by such customers once this is achieved, entering the
commodity market would pose little difficulty.
4. Our marketing and selling strategy
We have positioned our company in a reasonably strong position in all the business
segments in which we operate due to our quality, consistency, pricing and delivery
schedules. Our customer profile for fabrics include leading garment exporters in
India. Leading garment makers in the overseas markets, domestic garment
manufactures, domestic wholesalers and traders and retailers. In addition, we have
developed a strong network of marketing agents who sell fabrics to various small
sized units and traders thereby ensuring greater penetration of markets. As far as
garment customers go, top labels in garments in the European and US markets are on
our customer list.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Organisational Structure:
Senior Factory Manager
Cutting
Manager
Pattern master
In charge
cutters
C A D
Q C
Later
Relayes
Helpers
H R D
Manager
H R Executi
ves
H R Assista
nt
welfare
Nurse
Printing
Encharge
Operators
Q C
Helpers
E M B
Manager]
Supervisors
operators
Helpers
Designer
Designer Assistan
t Designer
Dispatch
Dispatch Runner Framer
s
Washing
Manager
BoilerOperat
ors
Chemical
StoreHelper
Helpers
Fabric
Manager
Encharge
Assistants
Runner
Helpers.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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
different languages. Its customers include some of the world's largest and most
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
important textile manufacturers. Datatex serves its international customers through
its offices in Italy, Israel, the USA, Germany and Switzerland.
FINANCE DEPARTMENT
Sanctions Rs. 400 m loan for project Exim Bank invests Rs. 50 mn in Bombay Rayon
Fashions Equity
MUMBAI, 25th July 2005: Bombay Rayon Fashions Ltd. becomes the first Indian
company to receive direct Equity Investment of Rs. 50 million from Export Import
Bank of India (Exim Bank). “The Bank is subscribing 10,00,000 equity shares of Rs.
10 each at a premium of Rs. 40 per share,” announced Mr. S. Sridhar, ED of Exim
Bank, here today.
Bombay Rayon Fashions Ltd., a Rs.150 crore company engaged in Manufacturing of
fabrics and garments for Exports, is setting up Rs.161 crore greenfield integrated
textiles Unit with production Facilities for yarn dyeing, weaving, processing and
garment mfg. at Apparel Park, Doddabarllapur and Bangalore. Exim Bank has also
sanctioned a term loan of Rs. 40 crore for this Project.
Bombay Rayon Fashions Ltd. (BRFL) has been allocated 20.26 acres of land in
Industrial Township developed by Karnataka Government at Doddaballarpur Apparel
Park, 30kms from Bangalore. The Apparel Park has been modeled on international
lines with modern infrastructure and dedicated power and water supply and common
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
effluent treatment plant. 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
India’s 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 group’s 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.
BRFL’s 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 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
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.7
Sanctions Rs. 400 m loan for project Exim Bank invests Rs. 50 mn in Bombay Rayon
Fashions Equity
Bombay Rayon Fashions Ltd. becomes the first Indian company to receive direct
Equity Investment of Rs. 50 million from Export Import Bank of India (Exim Bank).
“The Bank is subscribing 10,00,000 equity shares of Rs. 10 each at a premium of Rs.
40 per share,” announced Mr. S. Sridhar, ED of Exim Bank, here today.
Bombay Rayon Fashions Ltd., a Rs.150 crore company engaged in Manufacturing of
fabrics and garments for Exports, is setting up Rs.161 crore greenfield integrated
textiles Unit with production Facilities for yarn dyeing, weaving, processing and
garment mfg. at Apparel Park, Doddabarllapur and Bangalore. Exim Bank has also
sanctioned a term loan of Rs. 40 crore for this Project.
Bombay Rayon Fashions Ltd. (BRFL) has been allocated 20.26 acres of land in
Industrial Township developed by Karnataka Government at Doddaballarpur Apparel
Park, 30kms from Bangalore. The Apparel Park has been modeled on international
lines with modern infrastructure and dedicated power and water supply and common
effluent treatment plant. The other leading companies coming up to set up their
projects in the Park includes Raymonds, Gokaldas Images and Himatsingka Seide.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Bombay Rayon Group established by Mr. Janardan Agarwal in 1986 with a modest
beginning in manufacturing of fashion fabrics at present is considered amongst
India’s 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 group’s 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.
BRFL’s 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 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
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.7
Marketing Department
Marketing and Selling strategy
The company in a reasonably strong position in the entire business segment in
which we operate due to our quality, consistency, pricing and delivery schedules
our customer profile for fabrics include leading garment exporters in India.
Leading garment makers in the overseas markets, domestic garment
manufacturers, domestic wholesalers and traders and retailers. in addition, we
have developed a strong network of marketing agents who sells fabrics to various
small sized unit and traders there by ensuring greater penetration of markets. As
far as garment customers go, top labels in garments in the European and US
markets are on our customer list.
The local retail market is well developed and we have been catering to this
market for almost 2 decades. We have a network of over 10 agents and 70
distributors catering to network of more than 2000 retailers spread across
India. Presently in the domestic retail division, we have a turnover of around Rs
200 lacks per month, which we plant to increase to Rs. 300 lacks per month.
The weaving capacity is to be increased by 48 machines to 198. The garment
capacity win go up more than four times to 28,000 pieces per day. The
prospectus also mentions that, along with other intermittent expansions, the
garment capacity win increase 10 times to 60,000 pieces per day by April 2006.
Presently BRFL exporting 100% of our garments. However supply fabrics to the
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
domestic garment exporters we have positioned ourselves as a multi product,
multi fiber and multi market player ensuring that our target market is a diverse
mix of the domestic fabrics market, garment export trade and international
market. Our manufacturing facilities are spread across four locations at Navy
Mumbai, silvers, Somali in Thane district and Bangalore, fully backed by the
facilities for product development, design studio and efficient sampling
infrastructure to provide quality services to its customers in India and abroad. We
currently employed over 5000 people.
Presently BRFL has 250 weaving machines producing approximately 20 million
meters of woven fabric. Per annum 2800 sewing machine with production
capacity of 8-4 millions garments per annum.
A functional structure is well uniting to organizations which have a single or
dominant core product because each subunit becomes extremely adept at performing
its particular portion of the process. The organization is structured according to
functional areas instead of product lines. The functional structure groups specialize in
similar skills in separate units. This structure is be t used when creating specific,
uniform product_ they are economically efficient, but lack flexibility. Communication
between functional areas can become efficient if there is proper coordination between
HR, Customer Service & Operation, IT, Finance, Sales and Marketing team etc
GENERAL MANAGER
MANAGING DIRECTOR
MANAGER
ASST.GENERAL MANAGER
MANAGER-HR PERSONAL OFFICER
HR-EXECUTIVEWELFARE OFFICER PERSONAL ASSUSTANTPERSONAL ASSISTANT
SUPERITENDENT
SECTION HEAD
MANAGER-ASSISTANT
CEO
ASSISTANTWORKER
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
HUMAN RESOURCES
MANAGER-HR
HR-EXECUTIVE
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
HR structure of the company
Human resources are an integral and important part of any organization. One of the
key pillars of the Company’s success has been its people. BRFL has always
recognized the importance of human capital and valued it highly. The Company has
put in place sound policies for the growth and progress of its employees. Lot of
emphasis and efforts are made to create a working environment that will encourage
innovation, enhance work satisfaction and build a merit driven organization. The
Company’s human resource vision is to create a committed workforce through people
enabling 43 processes and knowledge sharing practices based upon its value system.
As on 31st March 2008, BRFL consolidated had 24,233
Skills
Employee Development Policy and Training
WELFARE OFFICER
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Our human resource vision is to create a committed workforce through people
enabling processes and knowledge sharing practices based upon our value system. We
believe that learning and development is an integral part of our business. We have
annual assessment processes for every level within the organization, including top130
level management. Under this system, employees are subject to performance appraisal
and are assessed on specific skill requirements. For each employee, areas of
development are identified and training is given in those areas, based on the
employee's career plan. We also use these assessment processes to carry out
promotions at all levels, through a completely transparent process.
Compensation Policy
Our compensation policy is based on the qualifications, age, experience and level of
the employees. The policy also takes into account standards industry practices.
Compensation is serves as main tool attract and retain talent in the Company.
Health and Safety
We follow a strict code of health and safety practices in the workplace. The code is
monitored regularly by internal management reviews, which involve representatives
from all areas of the business. The Company reviews and updates the code regularly,
ensuring that new legislation and recommended practices are incorporated and
followed. We constantly strive to remain eco-friendly by adhering to the highest
international standards of manufacturing, effluent treatment and by using azo-free
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
dyes and chemicals to ensure the welfare of our consumers and the sanctity of our
natural environment.
Initiatives
i. Social initiatives:-
Bombay Rayon has initiated the implementation of SA8000 for its
Doddaballapur Mill. SA8000 is a global social accountability standard for decent
working conditions, developed and overseen by Social Accountability International
(SAI). SAI offers training in SA8000 and other workplace standards to managers,
workers and auditors. It contracts with a global accreditation agency, Social
Accountability Accreditation Services (SAAS) that licenses and oversees auditing
organizations to award certification to employer that comply with SA8000.
SA8000 is based on the UN Universal Declaration of Human Rights, Convention on
the Rights of the Child and various International Labour Organization (ILO)
conventions. SA8000 covers the following areas of accountability:
Child labour:- No workers under the age of 15; minimum lowered to 14 for countries
operating under the ILO Convention 138 developing-country exception; remediation
of any child found to be working.
Forced labour:- No forced labor, including prison or debt bondage labor; no lodging
of deposits or identity papers by employers or outside recruiters.
Workplace safety and health:- Provide a safe and healthy work environment; take
steps to prevent injuries; regular health and safety worker training; system to detect
threats to health and safety; access to bathrooms and potable water.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Freedom of Association and Right to Collective Bargaining: Respect the right to
form and join trade unions and bargain collectively; where law prohibits these
freedoms, facilitate parallel means of association and bargaining.
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:- We 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
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
manufacturing, effluent treatment and by using azo-free dyes and chemicals to ensure
the welfare of our consumers and the sanctity of our natural environment.
The Environment:- Good environmental practice has always been a prime
consideration in Bombay Rayon’s development, leading us to seek practical solutions
to avoid the production of waste. Our business activity inevitably has an impact on the
environment. We seek to minimize 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.
We view all environmental regulations and legislation as the minimum standard to be
attained and strive to exceed them significantly where possible as the needs of the
retail industry have changed. Bombay Rayon has worked closely with our retail
partners to develop economic and environmentally friendly solutions to their waste
problems.
In The Community:- We take our responsibility to contribute to the community in
which we operate seriously. We make every effort to support our staff and the wider
society in improving our local community. The company has always taken an active
role in local communities in which it operates, supporting many worthy causes.
Bombay Rayon recognizes that its employees have an important role to play within
the wider community and seeks to provide every effort to support its staff with
charitable endeavors and local community initiatives. These activities have included
promoting and sponsorship of individual and social activities, fund raising for
hospitals and schools and coordinating with aid agencies and local authorities for
projects around the nation.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Corporate Values:- We are committed to actions to restore and preserve the
environment. We are committed to developing safe and clean technologies using the
best environmental practices. We are committed to minimizing waste and pollutants,
conserving resources, and recycling materials at every stage of the product life cycle.
We will continue to work with customers and public authorities, vigorously pursuing
the development, and implementation of improved technologies 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.
Technology
Bombay rayon fashions limited has partnered with datatex & SAP to
implement a company wide enterprise resources planning tool (ERP) to cover all
textile & garmenting processes under one roof..
Datatex specializes in the textile & garment industry. Today there are over 11500
workstation using datatex ERP in 38 countries in 14 different languages. Its customers
include some of the world\s largest & most important textile manufacturers. Datatex
serves its international customers through its offices in Italy, Israel, the USA,
Germany & Switzerland.
The financial expertise will come from SAP through their SAP FKO module. The
ERP will sit on state of the art IBM servers which will be housed in fully redundant in
house data center in the Doddaballapur facility.
BRFL plans to invest Rs 1100crore in Maharashtra for setting of fabric &
garments making facilities. The company signed a memorandum of understanding
with the government of Maharashtra. New facilities will come up at Tarapur,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Islampur, Ichalkaranji, Latur, Nanded, Osamabad, & Amaravati about 32000 direct &
50000 indirect jobs will be created the company has Rs 400 crore as equity capital
the balance will be obtained as dedt. Which has already been tied up. Yarn dyeing &
fabric processing will see an investment of Rs 450 crore each while garment
manufacturing will get Rs 200 crore. Production at two of the garment plants at
Osamanabad and Ichalkaranji in Maharashtra has already started the Greenfield units
at Tarapur, Islampur, Latur & Nanded would raise the company’s daily fabric
processing capacity by 500000 metres & garment capacity by 100000 units.
Shared Values
We are committed to give back to the society. Our employees in the factory or office
are of utmost priority. We strive to provide them with a sound work environment.
We are committed to actions to restore and preserve the environment. We are
committed to developing safe and clean technologies using the best environmental
practices. We are committed to minimizing waste and pollutants, conserving
resources, and recycling materials at every stage of the product life cycle. We will
continue to work with customers and public authorities, vigorously pursuing the
development, and implementation of improved technologies 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, we aim to have an environmental performance we can be proud of, to
earn the confidence and respect of customers, shareholders, and society at large, and
to contribute to sustainable development.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Balance Sheet of Bombay Rayon Fashions------------------- in Rs. Cr.
-------------------
Mar '12 Mar '11 Mar '10
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
Networth 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
Mar '12 Mar '11 Mar '10
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
Inventories 1,773.10 1,262.87 695.58
Sundry Debtors 461.07 479.12 377.25
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Cash and Bank Balance 118.48 7.08 3.06
Total Current Assets 2,352.65 1,749.07 1,075.89
Loans and Advances 1,006.15 817.46 680.88
Fixed Deposits 0.00 27.84 23.02
Total CA, Loans & Advances 3,358.80 2,594.37 1,779.79
Deffered Credit 0.00 0.00 0.00
Current Liabilities 1,051.33 478.50 267.19
Provisions 36.85 49.41 22.52
Total CL & Provisions 1,088.18 527.91 289.71
Net Current Assets 2,270.62 2,066.46 1,490.08
Miscellaneous Expenses 0.00 0.00 0.00
Total Assets 6,215.61 5,794.93 4,409.74
Contingent Liabilities 21.77 91.77 158.62
Book Value (Rs) 217.86 201.65 170.63
Interpretation:-
From the above we can observe that total share capital of the firm is increased year to
year, due to expansions of business operation in the year 2009-2011. BRF Ltd firm
has to be increased outside Debt Loans to meet the Liquidity Requirements of the
firm. Firm also a increase the Fixed assets and Current Assets has to be continually
increases year to year.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Bombay Rayon FashionsProfit & Loss account ------------------- in Rs. Cr. -------------------
Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths
Income
Sales Turnover 2,737.13 2,254.84 1,614.77
Excise Duty 2.17 0.00 0.00
Net Sales 2,734.96 2,254.84 1,614.77
Other Income 14.31 23.42 14.21
Stock Adjustments 321.51 205.66 150.05
Total Income 3,070.78 2,483.92 1,779.03
Expenditure
Raw Materials 1,771.96 1,462.63 1,020.20
Power & Fuel Cost 70.67 72.05 40.23
Employee Cost 230.16 212.80 172.93
Other Manufacturing Expenses 5.03 68.27 48.83
Selling and Admin Expenses 0.00 80.59 72.82
Miscellaneous Expenses 246.55 23.22 20.82
Preoperative Exp Capitalised 0.00 0.00 0.00
Total Expenses 2,324.37 1,919.56 1,375.83
Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths
Operating Profit 732.10 540.94 388.99
PBDIT 746.41 564.36 403.20
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Interest 221.53 145.21 93.54
PBDT 524.88 419.15 309.66
Depreciation 217.23 136.67 68.07
Other Written Off 0.00 0.00 0.00
Profit Before Tax 307.65 282.48 241.59
Extra-ordinary items 0.11 0.00 -0.32
PBT (Post Extra-ord Items) 307.76 282.48 241.27
Tax 101.24 55.78 65.33
Reported Net Profit 206.51 226.70 175.91
Total Value Addition 552.41 456.92 355.64
Preference Dividend 0.00 0.00 0.00
Equity Dividend 0.00 19.82 16.79
Corporate Dividend Tax 0.00 3.29 2.85
Per share data (annualised)
Shares in issue (lakhs) 1,346.00 1,279.00 1,119.00
Earning Per Share (Rs) 15.34 17.72 15.72
Equity Dividend (%) 0.00 15.00 15.00
Book Value (Rs) 217.86 201.65 170.63
From the above Table analyses that Profit and Loss Account showing the overall
financial position of Company. The BRF Ltd showing the increasing the overall
financial position of the company. Textiles industry growth trend in present scenario,
also wide demanded for garments products.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
RISKS AND CONCERNS
As the Company gets into the expansion mode in a competitive environment, it is
bound to undertake risks as it capitalizes on several new opportunities. The Company
ensures that the risks it assumes are commensurate with better returns.
Economic Risk
The business is substantially affected by the prevailing economic conditions in
India.
Factors that may adversely affect the Indian economy and in turn the business include
slowdown in GDP growth, rise in interest rates, inflation, changes in tax, trade, fiscal
and monetary policies, etc. However, given the estimate of at least 8% growth in the
economy till 2010, rising per capita disposable income, burgeoning consumer
spending, rapid change in consumer preference towards high-end, value added
products and increased organized retail penetration with global majors sourcing from
and setting up base in India, the Company does not expect to be significantly affected
by this risk.
Labour Risk
This risk arises from being a labour intensive business and consequently being
exposed to the vagaries of the work force.
India is one of the cheapest countries in the world in terms of labour cost. Over the
years, the Company has had no history of labour disputes. All of its units enjoy
cordial industrial relations. Thus, the Company feels that the risk is substantially
mitigated, if not completely.
Fashion Risk
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
This risk arises as the Company is in the fashion business where designs have a
short shelf life.
BRFL has an in-house Design Unit where a team of designers come out with 5 new
designs on a daily basis, based on current fashion trends in the domestic and
international market. The Company has a lower lead time of 60 days in comparison to
the industry average of 90 days, which for fast track delivery is even lower at 30 days.
BRFL’s manufacturing diversity implies that machines are compatible with a wide
variety of fabrics including cotton, nylon, polyester, linen and blends, thus
always retaining full capacity. This hedges against changing trends in fashion. BRFL
also works closely with its customers. Thus, the Company believes it has sufficient
mitigation in place.
Currency Risk
This risk arises from the exposure to foreign currency and the volatility
associated with the underlying currencies.
The Company follows the normal prudence of hedging it receivables. Short order lead
times also protect the Company from the effects of currency fluctuations. Further,
BRFL is working towards reducing contract cycles as well as the cost of production.
Simultaneously, the Company is entering into forward contracts and increasing prices
and raw material imports as measures to mitigate currency risk.
Competition Risk
This risk arises from more players wanting a share in the same pie.
The textile and apparel industry in India is growing at a fast pace. With the phase-out
of the quota system since 1st January 2011 and the incentives given by the
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Government, the industry has become even more competitive. BRFL has generated
considerable brand goodwill in the market. The Company’s significant market share,
long-term relationships with clients, high productivity, low labour costs, short lead
time, manufacturing flexibility, in-house Design Unit and experienced management
team give BRFL a considerable edge over its peers. Significance expansion of
capacities is also in the pipeline. The Company is also moving up the value chain by
offering higher value added products, thus differentiating itself from its competition.
Hence, BRFL believes that this risk is sufficiently mitigated.
Concentration Risk
This risk arises from excessive dependence on any customer or segment for
business.
The Company’s 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 Company’s sales.
Besides, BRFL’s 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 Company’s well defined organizational structure, documented policy guidelines,
defined authority matrix and internal controls ensure efficiency of operations,
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.
8. Discussion on financial performance
Material developments in human resources Human resources are an integral and
important part of any organization. One of the key pillars of the Company’s
success has been its people. BRFL has always recognized the importance of human
capital and valued it highly. The Company has put in place sound policies for the
growth and progress of its employees. Lot of emphasis and efforts are made to create
a working environment that will encourage innovation, enhance work satisfaction and
build a merit driven organization. The Company’s human resource vision is to create
a committed workforce through people enabling processes and knowledge sharing
practices based upon its value system. As on 31st March 2008, BRFL consolidated
had 24,233 employees on its payrolls.
Cautionary statement
Statements in the Management Discussion and Analysis describing the Company’s
objectives, projections, estimates, expectations may be “forward-looking statements”
within the meaning of applicable securities laws and regulations. Actual results could
differ materially from those expressed or implied. Important factors that could make a
difference to the Company’s operations include economic conditions affecting
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
demand/supply and price conditions in the domestic and overseas markets in which
the Company operates changes in Government regulations, tax laws, statute and other
incidental factors.
Chapter-4
Vision, mission and Objectives
Vision:-
To be a Complete Fashion Apparel Company focused on Total Customer Orientation,
attaining a Position of Pride for stakeholders through creation of Congenial Business
Environment, offering Products and Services Par Excellence.
Mission:-
1. Enhancing our design capabilities enables us to present our own collections and offer a
total package solution to the customer
2. To rapidly expand garment capacity to meet the growing opportunity in the market place
and in the process actively consume 30-50% of our own production of fabrics.
3. Position ourselves in the mid to high end garment segment such that we enhance our
acceptance and improve our capabilities to meet the stringent.
4. Compliances stipulated by such customers once this is achieved, entering the commodity
market would pose little difficulty.
Objectives
Our corporate VISION is to be a complete apparel company. We have three pronged
strategy to realize our vision.
To be the-
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
• Most innovative - sought after Fashion Apparel and Fabrics Manufacturer.
• Most dependable for shortest turnaround time.
• Most reliable for quality, service and deliveries.
• Most permanently bonded with customers, suppliers and other stake holders.
• Most valued employer.
• Most looked up to for transparency, governance and social responsibility.
To strengthen our fabric business in order to have full control of entire fabric supply.
Chain- from yarn dyeing, weaving to processing of fabrics. We intend to achieve this
through implementation of new project facilities. This would not only help us achieve total
qualit5y control at each stage, it would enable us to cut out delays in delivery of fabrics to
our garment units.
Our competitive Strengths
1. Experience of our promoters
2. Flexibility in manufacture of garments
3. Designing capabilities
4. Lower turnaround time
5. Low labour cost
6. Economies of sale
7. High productivity
8. Quality assurance
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
9. Sampling capabilities
Quality Assurance:-
Internal quality control management systems and quality improvement systems exist
in all our plants. Quality audit teams review all aspects of quality assurance at all of
our units. Additionally, a dedicated in-house management team oversees our
implementation and adherence to stringent quality control policies across all of our
manufacturing facilities. Our quality assurance measures include:
standard operating procedures at each of our garmenting units to make them quality
compliant;
Statistical methods to identify and analyse areas of needed improvement;
A team of qualified and experienced professionals to manage quality control for
the entire manufacturing process, from the receipt of fabric to the dispatch of
garments; and
Compiling databases for future reference and analysis. Each of our divisions is
equipped with modern quality equipment to test for quality assurance and
functions in accordance with our philosophy of providing quality products to our
customers.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
SWOT ANALYSIS
Strengths
Self reliant industry producing the entire supply chain from fiber/cotton to
garments/home textiles
Large and growing domestic market
Second-largest textile producer in the world
Adequate raw material supplies
Low labour cost and availability of skilled and Technical labour force
Excellence in fabric and garment designing.
Weakness
Small size and technologically outdated plants result in lack of economies of
scale, low productivity and weak quality control
Cotton availability is vulnerable to erratic monsoons and low per hectare yield
With the exception of spinning, other sectors are fragmented
Strength
WeaknessO
ppurtunity
Threats
S W O T
A N A L Y S I S
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
Labour laws and policies lack reforms
Infrastructure bottlenecks for handling large volumes
Opportunities
End of quota system and full integration of the textile industry.
Shift in domestic market towards readymade garments, and domestic textile
consumption increasing with growing disposable incomes.
Threats
Survival of the fittest-in terms of quality, size, delivery and cost
Pricing pressures
Stiff competition from other Asian countries
Increase in regional trade could reduce share of markets opened for India,
China and other countries.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
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.
There has been steady increase in the sales of BRF Ltd by the company over
the period of study which is just satisfactory.
It is found that number of direct labour employees has increased in 3years in
both production houses.
The BEP stands at (1.43%) level as of now and meets improvisation in the
future.
In comparison it production levels the BEP seems to be very moderate for
maximization of the returns for the company this has to increase accordingly.
On the expenses front both the variable and fixed cost have increased at levels
higher than production a need better control.
The profit on sales is stable except during the second year. Growth refers to
continuous increase in profits also which is not the present case.
All rejected materials will be sent back to the vendors within one week from
the date of purchase.
It is observed that transfer of price is based on the cost price
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
SUGGESTIONS:
The company should put in best efforts to increase production at a better rate
when compared to the present.
The increase in sales needs to be substantial and not just minimal which the
case with the company as now is. A higher increase in the sales would better
the company’s prospects of contributing towards the profit.
BEP being dependent on variable cost and fixed cost needs a better control so
that the BEP can be improvised upon for the growth of the company.
Different costing methods and techniques have to be adopted to check the
growing costs to improve the contribution for the company.
Efforts have to be put in by the company to enhance profits every year
continuously by bringing down costs, increase in production as well as sales.
If the company is looking at the prospect of increasing its efficiency, it has to
increase the production and implement various core control methods and
techniques.
In fierce competitive environment it has to put all resources to optimal usage
to get the maximum profits.
A PROJECT REPORT ON BOMBAY RAYON FASHION LTD
CONCLUSIONS
BRFL is an established organization. All the workers in the organization are
ground proud of the fact that, they are serving the number one company in the world
of garments production.
The main strength of the company is the manpower and the positive image
which they have towards the company. The employees in BRFL are dedicated and
determined in their job. They are actively participating with the management to
achieve the company’s goal. The employees have got such a positive image towards
the organization, it’s because the company takes due consideration for the Human
Resources.
BRFL Company Ltd. Is trying its best to make its employees happy, by
providing to make its employees happy, by providing statutory and non-statutory
welfare facilities because the company believes that “Productivity of an organization
depends upon the people who work in the unit”.
Management should create awareness among the employees regarding the
expenditure incurred on welfare facilities because most of the employees are not
aware of it, most of the employees have also agreed that, they are ready to share a
portion of expenditure with the management, increase of the management introduces
new welfare facilities.
This study mainly focuses on the importance of work environment and its
significances in the development of an organization and some important aspects to the
organization to maintain better work environment in an organization.