THE TEXTILE THE TEXTILE INDUSTRYINDUSTRY

SHIV KALA TEXTILESSHIV KALA TEXTILES

TEXTILE SECTORTEXTILE SECTOR

Second largest in the world, second only to Second largest in the world, second only to ChinaChina

Accounts for more than 30% of the total exports Accounts for more than 30% of the total exports and 14% of the total Industrial production. and 14% of the total Industrial production.

Further expected to grow by 8.6% annually Further expected to grow by 8.6% annually

Second largest employment generator after Second largest employment generator after agricultureagriculture

National Textile Policy in 2000 was announced National Textile Policy in 2000 was announced to provide cloth of acceptable quality at to provide cloth of acceptable quality at reasonable prices, to contribute to sustainable reasonable prices, to contribute to sustainable employment and the economic growth of the employment and the economic growth of the nation nation

A TEXTILE SSIA TEXTILE SSI

A major gap in Indian industry is its fragmented A major gap in Indian industry is its fragmented industry structure with a dominance of small industry structure with a dominance of small scalescaleBut small scale brings with it the problem of But small scale brings with it the problem of productivity and small organizations often do not productivity and small organizations often do not have resources to investhave resources to investBut with improved government policies, But with improved government policies, schemes and programmes this limitation has schemes and programmes this limitation has also been eradicatedalso been eradicatedGovernment has allowed 100 percent Foreign Government has allowed 100 percent Foreign Direct Investment in the textile sector under the Direct Investment in the textile sector under the automatic route automatic route

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHSIndependent & Self - Reliant Independent & Self - Reliant industryindustryAbundant Raw Material Abundant Raw Material availabilityavailabilityLow Cost and Skilled Low Cost and Skilled ManpowerManpowerLarge varieties of cotton fiberLarge varieties of cotton fiberLargest exporters of Yarn in Largest exporters of Yarn in international marketinternational marketlargest foreign revenue largest foreign revenue contributor contributor

Manufacturing FlexibilityManufacturing Flexibility

WEAKNESSESWEAKNESSESHighly fragmented industry Highly fragmented industry Highly dependent on cotton Highly dependent on cotton Lower Productivity in various Lower Productivity in various segmentssegmentsLack of Technological Lack of Technological DevelopmentDevelopmentInfrastructural Bottlenecks and Infrastructural Bottlenecks and Efficiency Efficiency Unfavorable labor LawsUnfavorable labor Laws

Lack of Trade MembershipLack of Trade Membership

OPPORTUNITIESOPPORTUNITIESGrowth rate of Domestic Growth rate of Domestic Textile Industry is 6-8% per Textile Industry is 6-8% per annum annum Large, Potential Domestic and Large, Potential Domestic and International MarketInternational MarketElimination of Quota Elimination of Quota Restriction leads to greater Restriction leads to greater Market DevelopmentMarket DevelopmentEmerging Retail Industry and Emerging Retail Industry and Malls provide huge Malls provide huge opportunities for the Apparel, opportunities for the Apparel, Handicraft and other segments Handicraft and other segments of the industry of the industry Greater Investment and FDI Greater Investment and FDI opportunities are available opportunities are available

THREATSTHREATSCompetition from other Competition from other developing countries, developing countries, especially China especially China Continuous Quality Continuous Quality Improvement is need of the Improvement is need of the hour hour Threat for Traditional Market Threat for Traditional Market for Power loom and Handloom for Power loom and Handloom Products and forcing them for Products and forcing them for product diversification product diversification Geographical Disadvantages Geographical Disadvantages International labor and International labor and Environmental Laws Environmental Laws Balance between price and Balance between price and quality quality

PORTER’S 5 FORCE MODELPORTER’S 5 FORCE MODEL

OF THE SMALL SCALEOF THE SMALL SCALE TEXTILE INDUSTRY TEXTILE INDUSTRY

Threat of new

entrants

LOW

Threat ofsubstitutes

VERY LOW

Bargaining power of

customers

HIGH

Bargaining

power ofsupplier

s

HIGH

Threat of competitio

n

HIGH

SHIV KALA TEXTILES – AN SHIV KALA TEXTILES – AN INTRODUCTIONINTRODUCTION

Modern Small Scale UnitModern Small Scale Unit

Sole proprietorship – Mr. Brijlal S. GwalaniSole proprietorship – Mr. Brijlal S. Gwalani

Set up in 1999 with 12 indigenous conventional Set up in 1999 with 12 indigenous conventional power looms in Ulhasnagarpower looms in Ulhasnagar

Set up in a D-Zone Set up in a D-Zone

Expansion took place in 2006 with 16-second Expansion took place in 2006 with 16-second hand automatic sulzer auto loomshand automatic sulzer auto looms

SETTING UP THE VENTURESETTING UP THE VENTURE

Initially registered under Shop And Initially registered under Shop And Establishment ActEstablishment Act

Got an SSI certificate in 1999Got an SSI certificate in 1999

After expansion in 2006, received the After expansion in 2006, received the Factory LicenseFactory License

FINANCEFINANCE

Started with an investment of Rs. 60-70 Started with an investment of Rs. 60-70 lacslacs

Initial finance from family loans and Initial finance from family loans and personal finance of the ownerpersonal finance of the owner

Investment today – above 2 crores Investment today – above 2 crores

ABOUT THE BUSINESSABOUT THE BUSINESS

Manufactures shirting fabricManufactures shirting fabricA weaving unit dealing in grey clothA weaving unit dealing in grey clothA cyclic business A cyclic business i.e. they sell the products to their i.e. they sell the products to their customers according to their respective customers according to their respective demand but they cannot stop production demand but they cannot stop production and therefore they mass produce and and therefore they mass produce and store the producestore the produceTheir job work is order basedTheir job work is order based

ORGANISATIONAL STRUCTUREORGANISATIONAL STRUCTURE

OWNERBRIJLAL.S.GWALANI

UNIT 1(AUTOLOOMS)

UNIT 2(CONVENTIONAL)

MANAGERMANAGER

SUPERVISOR

SUPERVISOR

SUPERVISOR

SUPERVISOR

BUILDINGBUILDING

Constructed area of the building is 12,000 Constructed area of the building is 12,000 square feet square feet

Sufficient to accommodate 16 nos. Rapier Sufficient to accommodate 16 nos. Rapier looms of 2300 mm Read space, with looms of 2300 mm Read space, with Warping Machine having vertical creel of Warping Machine having vertical creel of 560 canes560 canes

PLANT AND MACHINERYPLANT AND MACHINERY

Machines are selected on the basis of Machines are selected on the basis of techno economic analysis claimed out by techno economic analysis claimed out by the Company the Company

Consultant Basis of selection is Cost of Consultant Basis of selection is Cost of loom, Production per loom & Quality of loom, Production per loom & Quality of fabric producedfabric produced

LABOURLABOUR

20 people have been employed permanently 20 people have been employed permanently and the balance employees are on contract and the balance employees are on contract basisbasis Shortage of skilled manpower for the auto loom Shortage of skilled manpower for the auto loom sectionsectionA specific section (mending) of every textile A specific section (mending) of every textile factory always employs womenfactory always employs womenEmployees are paid on the basis of piece wagesEmployees are paid on the basis of piece wagesi.e. they are paid per metre of fabric they i.e. they are paid per metre of fabric they produceproduce

Three shifts of 8 hours eachThree shifts of 8 hours each

There are three types if workers:There are three types if workers:Unskilled (helpers) Unskilled (helpers) Semi skilled (weavers) Semi skilled (weavers) Skilled (technicians and supervisors)Skilled (technicians and supervisors)

Do not employ childrenDo not employ children

PRODUCTION CAPACITYPRODUCTION CAPACITY

36 Conventional Looms 36 Conventional Looms

30,000 metres per month30,000 metres per month

16 Auto Looms16 Auto Looms

80,000 metres per month80,000 metres per month

99% error free99% error free

MANUFACTURING PROCESSMANUFACTURING PROCESS

Warping – The yarn is rolled on warping machine drum Warping – The yarn is rolled on warping machine drum to get the pattern, length and width of fabric to be to get the pattern, length and width of fabric to be manufactured and rolled into beamsmanufactured and rolled into beamsBeam drying – Each end of yarn is drawn in reeds to get Beam drying – Each end of yarn is drawn in reeds to get the required design and pattern in the fabricthe required design and pattern in the fabricWeaving – The beams after drying are loaded on looms Weaving – The beams after drying are loaded on looms for weaving purposes. The fabric is weaved by pushing for weaving purposes. The fabric is weaved by pushing the weft yarn cones to bind the fabric manuallythe weft yarn cones to bind the fabric manuallyMending - It is a manual procedure to check the quality Mending - It is a manual procedure to check the quality of fabric, if possible mend it or repair it and fold it in of fabric, if possible mend it or repair it and fold it in lumps and send it to process houses for furnishinglumps and send it to process houses for furnishing

RAW MATERIALSRAW MATERIALS

Raw material used is bought from Walson polyesters pvt Raw material used is bought from Walson polyesters pvt ltd, Siyaram Silk mills ltd, and Sagar pvt ltd.ltd, Siyaram Silk mills ltd, and Sagar pvt ltd.Raw material used - yarn, cotton, polyester and nylon Raw material used - yarn, cotton, polyester and nylon Two various blends of TV and TC yarns also usedTwo various blends of TV and TC yarns also usedTotal requirement of yarn is about 8MT per month at Total requirement of yarn is about 8MT per month at 100% capacity utilization100% capacity utilizationCost of yarn varies from Rs. 160.00 per kg for 40s cotton Cost of yarn varies from Rs. 160.00 per kg for 40s cotton to Rs.250.00 to Rs. 300.00 per kg. for other fancy to Rs.250.00 to Rs. 300.00 per kg. for other fancy varietiesvarietiesMaterial is supplied from traders and exporters in Material is supplied from traders and exporters in Bhiwandi and MumbaiBhiwandi and Mumbai

PROXIMITY TO RAW MATERIALSPROXIMITY TO RAW MATERIALS

Weaving unit located at Ulhasnagar, which Weaving unit located at Ulhasnagar, which is 60 kms from Mumbai and 15 kms from is 60 kms from Mumbai and 15 kms from Bhiwandi Bhiwandi

Yarn available at Bhiwandi on Ex – Yarn available at Bhiwandi on Ex – godown delivery basesgodown delivery bases

Transport service easily available from Transport service easily available from Bhiwandi to Ulhasnagar and back for the Bhiwandi to Ulhasnagar and back for the transportation of yarn and grey fabric transportation of yarn and grey fabric

POWERPOWER

Connected load is 60 H.P. Connected load is 60 H.P. Power available from MSEB Mains, which Power available from MSEB Mains, which are already laidare already laidRequired quantity of Power is already Required quantity of Power is already sanctioned by MSEB and in use for sanctioned by MSEB and in use for existing loomsexisting loomsQuality: A.C. supply, 3 phase, 440 volts, Quality: A.C. supply, 3 phase, 440 volts, 50 cycle50 cyclePower Tariff: Re 1.00 per unitPower Tariff: Re 1.00 per unit

WATERWATER

Water required for evaporative cooling in Water required for evaporative cooling in humidification plant humidification plant

UMC water supply is available UMC water supply is available

Water supply regular and on 24 hour basisWater supply regular and on 24 hour basis

Quality: Zero hardness for potable useQuality: Zero hardness for potable use

Rate: Rs.12.00 per 1,000 litersRate: Rs.12.00 per 1,000 liters

MARKETINGMARKETING

Promoters engaged in textile business for Promoters engaged in textile business for two generations two generations

Promoters have well established contacts Promoters have well established contacts in local market and hence marketing is not in local market and hence marketing is not be a problem at allbe a problem at all

Promoters are quality conscious and Promoters are quality conscious and continuously developing new technology continuously developing new technology and designs and colours and designs and colours

Shiv Kala textiles has a maharashtra pollution Shiv Kala textiles has a maharashtra pollution control board certificatecontrol board certificate

It is a Grey cloth manufacturing unit and does It is a Grey cloth manufacturing unit and does not pollute the environment muchnot pollute the environment much

In the process of installing more auto looms In the process of installing more auto looms since auto looms are pollution free loomssince auto looms are pollution free looms

ENVIRONMENTENVIRONMENT

SUBSIDIESSUBSIDIES

Textile Upgradation FundTextile Upgradation Fund

Get 20% subsidy on capital invested with Get 20% subsidy on capital invested with a limit of 20 lacsa limit of 20 lacs

Get 5% subsidy on interest on loans taken Get 5% subsidy on interest on loans taken from bankfrom bank

Get power at subsidized rates which are Get power at subsidized rates which are less by about 50% as compared to less by about 50% as compared to residential eventsresidential events

PROBLEMSPROBLEMS

Government is in a process to phase out the Government is in a process to phase out the power subsidy and it has started it by increasing power subsidy and it has started it by increasing the power rates to Rs. 2 per unitthe power rates to Rs. 2 per unit

Load shedding in the industrial estate in which it Load shedding in the industrial estate in which it operates is 5hrs/dayoperates is 5hrs/day

Shortage of skilled labour for the purpose of the Shortage of skilled labour for the purpose of the operation of the auto looms being installed in the operation of the auto looms being installed in the factoryfactory

Labour unions can pose to be a major problemLabour unions can pose to be a major problem

CREDITSCREDITS

ANKITA AGRAWALANKITA AGRAWAL 11SACHIT AHUJASACHIT AHUJA 22JYOTIKA JHANGIANIJYOTIKA JHANGIANI 1919TANYA MERCHANTTANYA MERCHANT 3030MEHUL RATHODMEHUL RATHOD 3939KASHMIRA G.KASHMIRA G. 6060YASHRAJ KEDIAYASHRAJ KEDIA 8181NIKHIL KAWDENIKHIL KAWDE 8282JITIN KEWALRAMANIJITIN KEWALRAMANI 8383NITIN PURSWANINITIN PURSWANI 100100MINALI SHAHMINALI SHAH 111111

THANK YOUTHANK YOU