A PROJECT REPORT

ON RECRUITMENT AND SELECTION OF “VARDHMAN MILLS LTD”

Submitted in partial fulfillment of the degree of Bachelors of Business Administration (2006-2008), Lovely Professional University

SUBMITTED TO: - SUBMITTED BY:

MS. Rubeena Ashmita Mondal BBA-MBA (int.)

Section- B Roll no. 56 Regn. No.3020070020

Lovely Professional University Lovely School of Business Phagwara, Jalandhar

ACKNOWLEDGEMENT

We have tried our best to present this information as clearly as possible

using basic terms that we hope will be comprehended by the widest spectrum

of researchers, analysts and students for further studies.

With pleasure we pay our gratitude of VARDHMAN MILLS LTD, Chandigarh road Ludhiana (P.B). for their wholehearted cooperation and guidance. The amicable and nurturing ambience provided by them has really made the Project a pleasure experience to cherish with.

We have completed this study under the able guidance and supervision of

Ms.Amrita and Mr. Mahindera (Personnel Managers, Vardhaman). We will

be failed in our duty if we do not acknowledge the esteemed scholarly

guidance, assistance and knowledge. We have received from them towards

fruitful and timely completion of this work.

Mere acknowledgement may not redeem the debt we owe to our parents for

their direct/indirect support during the entire course of this project.

In the End we would like to express my deepest gratitude to the entire

faculty members

PREFACE

This project report is the result of our 1 day Project at Vardhaman. It aims at

providing a first hand practical experience of the industry to the students. It

really helped us to know the real business world closely, which in turn

influenced our perception.

We are privileged that we got an opportunity to pursue our one day visit in

such a reputed, well established, fast growing and professionally managed

organization like “Vardhaman Mills Ltd.”.

The project assigned to us dealt with the study of different Management

aspects, Policies and strategies followed at Vardhaman got an opportunity to

see & understand as to how all these things done in Vardhaman.

We are extremely thankful to the people of “Vardhaman Mills Ltd.” for

giving this golden opportunity of doing our Project work in their

organization and shall remain obliged towards them.

OBJECTIVE OF THE STUDY

The main objective of our study was to know recruitment and selection procedure in Vardhaman Mills Ltd., which was totally in accordance to our project title. The main objective of study was fragmented into three sub objectives to reach the depth of the objective under study.

1) To study the process of recruitment and selection of the employees at Cosmo Ferrites Limited.

2) To know what are the various methods employed for recruiting & tools & Techniques used for selection. 3) To know effectiveness of recruitment & Selection process.

COMPANY PROFILE

Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, perhaps, the largest textile conglomerate in India. The Group portfolio includes manufacturing and marketing of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel.

MISSION

Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.

S P Oswal, Chairman - Vardhman Group

HISTORY

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known

as the "Manchester of India". Within the precincts of this city is located the Corporate headquarters of

the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under

the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one of the largest

Textile Business houses in India.

At its inception, Vardhman had an installed capacity of 14,000 spindles, today; its capacity has

increased multifold to over 5.5 lacs spindles. In 1982 the Group entered the sewing thread market in the

country which was a forward integration of the business. Today Vardhman Threads is the second

largest producer of sewing thread in India. In 1990, it undertook yet another diversification - this time

into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a

capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin,

sheeting, shirting in the domestic as well as foreign market. This was followed by entry into fabric

processing by setting up Auro Textiles at Baddi, which currently has a processing capacity of 1 lacs

meters/day.

In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman

Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fibre production undertaken with

Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong

Kong, Korea, UK and EU in addition to the domestic market. Adherence to systems and a true

dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which is

the first in Textile industry in India and yet another laurel to its credit.

PORTFOLIOThe group portfolio includes Yarn, Fabrics, Sewing Thread, Fibre and Alloy Steel.

YarnsYarn Manufacturing is the major activity of the group accounting for 65 percent of the group turnover.

Vardhman is virtually a supermarket of yarns, producing the widest range of cotton, synthetics and

blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is the market leader in

India. The group has nine production plants with a total capacity of over 5.5 lacs spindles, spread all

over the country. In many of the yarn market segments, Vardhman holds the largest market share.

Vardhman is also the largest exporters of yarn from India, exporting yarns worth more than USD 90

million.

Sewing ThreadVardhman is the second largest producer of sewing thread in the country. The sewing thread

manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its sewing

thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12 percent of the

group turnover.

FabricsThe group has created state-of-the-art fabric weaving and processing facilities in its plant at Baddi,

Northern India. The group has installed 208 shuttle less looms and a fabric processing capacity of 30

million meters per annum in collaboration of Tokai Senko of Japan. Fabrics business contributes 8

percent to the group turnover.

FibreThe group has recently set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in collaboration with

Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000 tons per annum. Fibre

contributes 8 percent to the total turnover of the group.

SteelThe Group is also present in upper-end of the steel industry. The group has manufacturing capacity of

100000 tons of special and alloy steel. The group supplies its steel products to some of the most

stringent quality steel buyers like Maruti and Telco. It contributes 6 percent to the total turnover of the

group.

HOLDINGS

  Spinning Business

Domestic Trade Area Units

Vardhman Spinning & General Mills Ludhiana, Punjab

Auro Spinning Baddi, HP

Arihant Spinning Malerkotla, Punjab

Arisht Spinning Baddi, HP

Gas Mercerised Yarn Business Hoshiarpur, Punjab

Auro Dyeing Baddi, HP

Export Oriented Units

Anant Spinning Mandideep, MP

Vardhman Spinning & General Mills Export Oriented Units

Baddi, HP

VMT Baddi, HP

 

Fabric Business

Auro Weaving Baddi, HP

MSML Textiles Division Baddi, HP

Auro Textiles Baddi, HP

Sewing Thread Business

ST-I Hoshiarpur, Punjab

ST-II Ludhiana, Punjab

ST-III Perundurai, TN

Vardhman Threads Limited Baddi, HP

Vardhman Special Steels Ludhiana, Punjab

Vardhman Acrylics Limited Bharuch, Gujarat

 

PERFORMANCE

During the last 10 years, Vardhman Group has recorded 11 percent top line growth rate, which is higher

then the industry average growth rate. The Group turnover has grown from Rs 723 crores in 1995 to Rs

1913 crores (USD 439 million) in 2003-04. The exports has grown from negligible level in early nineties

to Rs 473 crores (USD108 million) in 2003-04.

Financial Indicators Of Vardhman Group (Rs. In Crores)

Particulars Group Group Group Group Group

 2003-04 2002-03 2001-02 2000-01 1999-2000

Gross Sales 1,913.07 1,763.60 1,906.91 1,878.58 1,679.34

Fob Value Of Exports 473.07 387.37 439.21 466.81 471.27

Profit Before Tax 139.13 109.23 50.50 101.97 123.44

Cash Accrual (PBT + Dep.) 245.49 219.44 171.80 206.67 219.89

Gross Block 1,534.14 1,725.27 1,822.64 1,735.74 1,505.34

Net Block 840.26 1,071.75 1,157.67 1,188.09 1,056.59

Capital Employed 1,807.22 1,744.25 2,256.17 2,125.27 1,969.22

 Financial Indicators Of Vardhman Group (USD In Millions)

Particulars Group Group Group Group Group

 2003-04 2002-03 2001-02 2000-01 1999-2000

Gross Sales 438.78 371.44 400.38 410.08 387.12

Fob Value Of Exports 108.50 81.59 92.22 101.90 108.64

Profit Before Tax 31.91 23.01 10.60 22.26 28.46

Cash Accrual (PBT + Dep.) 56.31 46.22 36.07 45.12 50.69

Gross Block 351.87 363.37 374.27 372.24 345.18

Net Block 192.72 225.73 237.73 254.79 242.28

Capital Employed 414.50 367.37 463.28 455.77 451.55

MARKET

Largest Spinning capacity in India - over half a million spindles.

Largest producer of Cotton, Synthetics and Blended yarns in the country

 Largest Dyeing Capacity of Fibre and Yarn

Largest Exporter of Cotton Yarn

Market Leader in Hand Knitting Yarns in India

  Largest range of Textile products

Collaborations with specialist worldwide

  Second largest producer of Sewing Thread in the country

ERP (Enterprise Resource Planning) enabled solutions for online order tracking.

BRAND AMBASSADOR

Mrs. Shweta Tiwari (TV Artist)

ACHIEVEMENTS

It's an overwhelming feeling when the efforts and hard work put in are recognized and felicitated. A

feeling that galvanizes the Group into believing in more, in itself and reaffirming its commitment to offer

products that invoke trust and reliability.

Back home, the Vardhman Group became India's first textile company to be awarded ICO9002/ ISO

14002 Certification. It is the largest producer and exporter of yarns and Grey woven fabrics from India.

Vardhman is also the largest producer of tyercord yarns and the second largest producer of sewing

threads in India. The Vardhman Group vision of excellence is matched by a dedication and sincerity to

be the best and excel in every industry it has a presence.

Textile Export Promotion Council 2003-04

Gold trophy in EOU/EPZ for export of cotton yarn

Textile Export Promotion Council 2003-04 Bronze trophy in mill fabric exporter category

Textile Export Promotion Council 2002-03Gold Trophy in EOU/EPZ for export of cotton yarn

   Textile Export Promotion Council 1998-99 Silver TrophyTextile Export Promotion Council 1997-98Bronze Trophy     

Textile Export Promotion Council 1996-97 Silver Trophy

Govt. of India Award 1994-5, 1995-96Award of Merit     

Textile Export Promotion Council 1993-94(Merchant Export Category for Fabrics)Bronze Trophy

     

Textile Export Promotion Council 1993-94(Merchant Export Category for Fabrics)Gold Trophy

Textile Export Promotion Council 1990-00

Gold Trophy

"VISION: To be globally recognized as a Leading Supplier of Quality Fabrics"

Main two units:-

SPINNING 1

This unit is for the manufacturing and packing of the yarn export

products. Products are exported to the countries such as Japan, south

Korea, U.S etc.

SPINNING 2

This Unit is for the manufacturing and packing of local yarn products.

POLICIES and Systems

There are 3000 workers, 250 staff members, 100 officers and managers

according to the size of departments.

POLICY which was used in VARDHMAN MILLS is TPM POLICY

ERP SYSTEM is used for the Salary distribution of the employees.

PUNCH CARD SYSTEM is used for the attendance of the employees.

INTRODUCTION TO RECRUITMENT AND SELECTION

RECRUITMENT PROCESS

Recruitment is the core activity of any personnel department. The personnel department has traditionally been regarded as the “hire and fire” department and is still viewed as such by some line managers. It is, of course, a mistaken viewpoint. The personnel department neither hires nor fires anyone-this is the function of line management.

Recruitment is the process concerned with the identification of sources from where the personnel can be employed and motivates them to offer themselves for employment. So, recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed position in that it stimulates people to apply for jobs to increase the hiring ratio e.g. the number of applicant for a job.

 Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.

Recruitment needs are of three types:

Planned Anticipated Unexpected

Planned needs arise from changes in organization and recruitment policy. Anticipated needs refer to those movements in personnel which an organization can predict by studying trends in the internal and external environment. Unexpected needs arise from resignations, deaths, accidents and illness.

“Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicant from which new employees are selected.”

- Werther and Davis

STEPS IN RECRUITMENT PROCESS

The recruitment process consists of the following steps:-

1. Recruitment process begins when the personnel department receives requisition for recruitment from any department of the company.

2. Locating and developing the sources of required number and type of employee.

3. Identifying the prospective employees with required characteristics.

4. Communicating the information about the organization, the job and the terms and conditions of service.

5. Encouraging the identified candidates to apply for jobs in the organization

6. Evaluating the effectiveness of recruitment process.

Basically, recruitment process consists of five elements namely a recruitment policy, a recruitment organization, developing sources or recruitment organization, developing sources of recruitment, techniques used to tap these sources and methods of assessing recruitment programmes.

Recruitment policy involves the employer’s commitment to such general principle as:

To find and employ the best qualified persons for each job.

To retain the most promising of those hired.

To offer promising opportunities for life time working careers.

To provide facilities for personal growth on the job.

There are several pre- requisites of a good recruitment policy. It should:

Provide employees with job security and continuous employment.

Integrate organizational meet the changing needs of the organization.

Provide each employ with freedom and opportunity to utilize and needs and employ needs.

Provide suitable jobs and protection to handicapped, women and minority groups.

Be flexible enough to develop knowledge and skills to the maximum possible extent.

SOURCES OF RECRUITMENT

Recruitment has various sources that may be classified into categories but there are mainly two main sources of recruitment:

Internal Sources External Sources

Major Sources of Recruitment Are: -

Internal Sources External Sources

1. Transfers 1. Press Add.

2. Promotions 2. Educational Institutes

3. Placement Agencies

4. Employment Exchange

5. Labour Contractors

6. Unsolicited Applicants

7. Recommendations

SELECTION

Selection is the process as to select the right person at the right job at right time. Selection is the process of choosing the most suitable persons out of all the applications. And selection is the process of matching the qualifications of applicants with the job requirements. It is the process of wedding out unsuitable candidates and finally identifies the most suitable candidate. Selection may be described as processes of rejection because generally more candidates are turned away then are hired. Selection divides all the applicants in to two categories – (a) suitable (b) unsuitable

Selection is an important function as no organization can achieve its goals without selecting the right people. The purpose of selection is to pick up the right person for every job. Proper selection helps to reduce absents and labour turnover and it is helpful in increasing the efficiency and productivity of the enterprise.

SELECTION PROCESS

The selection process can be successful if the following conditions are

Satisfied:-

1. Preliminary interview2. Application Blank3. Selection Test4. Employment Interview 5. Medical Examination6. Reference check7. Final approval

To study “Recruitment & Selection process” I had undergone exploratory research. For carrying out exploratory research two approaches were adopted, these are as follow: -

Literature SurveyExperience Survey

Literature surveyThe quickest & the most economical way of doing research is to review the work of follow researchers in the field who had been there before. After sources of information such as:

Books Journals Company records.

Experience Survey

I had attempted to tap the experience & expertise knowledgeable persons concerned with the area of research such as Assistant executive (PERS & ADMI.), Manager (I.R), company’s employees through a series of unstructured interview, these persons were requested to give their views & opinions on the various aspects of the study. Also employee who was recently recruited was studied to know the effectiveness of the recruitment and selection process through direct oral investigation.

CONCLUSION

Success of every business depends upon the hiring of best potential, competent person and to retain them with the organization for its continual growth and development. So I

come to this conclusion that the recruitment method of every organization plays very important role in achieving its existing and future plans. Recruitment includes identification of sources and search for skilled and competent persons, retains them, orients them, trained them and motivated them. So that it can get maximum out of its service and skills.

In the case Vardhaman mills they use various sources for the recruitment of the staff and officers that i already define in the report. For this they use various external and internal sources for the new requirement and any other place. They use various steps for the selection of the candidate’s e.g. preliminary interview, medical examination, group discussion etc. In this the H.O.D. of various departments are related with this method.

Thanks