Project Report on

Ashima Group
Texcellence Complex
Khokhra Mehmedabad
Ahmedabad - 380 021.
INDIA

Submitted To:
Prof. ---

Submitted by:

FYBBA
N.R. Institute of Business
Administration
Ahmedabad
2009-2010
2
 N.R. INSTITUTE OF BUSINESS ADMINISTRATION
GLS Campus, Mardia Plaza Lane, Off. C.G. Road, Ellisbridge, Ahmedabad-380006, Phone: 26430373

CERTIFICATE

This is to certify that the report on the visit to_ Ashima Group _

is submitted by Mr._ ____________ _ to N.R. Institute of Business

Administration, affiliated to Gujarat University, in the partial fulfillment of the

requirements for the completion of “Practical Studies” in the area of Management at the

First Year of the B.B.A. Program for the year 2009-2010.

______________ __________
__________________
Director In-charge Prof. in-charge External
Examiner

Date: / /2010
2
 Acknowledgement

I am highly thankful to the management and staff of Ashima Group I am

especially thankful to Mr. --- manager of HR department and Mr. --- manager of
Marketing department for helping me in my “Practical Studies”. In addition to allowing
me to visit the company and study the organization, they provided me with many details
which were very useful in preparing this report.

I take this opportunity to thank our In-Charge Director Prof. ---, Professor in-
charge --- for their encouragement and the office staff for providing us all the facilities
for making the visit more learning oriented.

(Name)
Date:
 Preface

Today’s age is an age of management. Management being the backbone of any

organization is one critical factor which determines the success and failure of a business
unit. The real essence of management lies in the application of the knowledge.

This report is prepared on the basis of an Industrial Visit to Ashima Group. This
industrial visit was carried out with a view to gain an insight to the managerial
knowledge and skills required in real life situations. The company is a very good example
of a firm doing vertically integrated production, vertically integrated production is very
important for economizing and to seize the upcoming opportunities in the business world
in the 21st century.

The company deals in 100% cotton fabric manufacturing. This report contains all
the necessary information of the company and its departments.

It was earlier said, “Knowledge is Power”. But now this saying is replaced by
a more correct saying, “Applied Knowledge is Power”. The Industrial Visit and this
report is just a small but remarkable step in knowing the practical implications of
management.
 Index

1 Company Profile 1
1.1 Objective of Visit 1

1.2 Name of organization 1

1.3 Business philosophy 1

1.4 Mission & Vision Statement 2

1.5 Aims & Objectives 2

1.6 Status of the company in market 2

1.7 Special awards & recognition 3

2 History of the organization 4

2.1 Main History 4

2.2 Recent Achievements 4

3 Form of Organization 5
4 Organization Structure 6
4.1 Hierarchy 6

5 Location 7
5.1 Factory Address 7

5.2 Reasons for choosing a particular location 7

5.3 Benefits of Location 7

5.4 Limitations of Location

7

6 Production 8
6.1 Product Range 8

6.2 Production Process in sequence 9

6.3 Plant & technology 10

6.4 Plant Layout 12

6.5 Measures to control pollution 12

6.6 Area of Factory 13

7 Financial Information 14
7.1 Capital employed 14

7.2 Sales Turnover 14

7.3 Profit 14

7.4 Dividend 14

8 Marketing 15
8.1 Marketing Position 15

8.2 Market Share 15

8.3 Physical Distribution & Channels 15

8.4 Advertising & Sales Promotion 16

8.5 Level of competition 16

8.6 External or export oriented marketing 16

9 Human Resource Management 17

9.1 Number of workers 17

9.2 Selection & Recruitment 17

9.3 Training & Development 17

9.4 Emoluments & Compensation 17

9.5 Performance Evaluation & promotion 18

9.6 Trade union & Management’s relation with the same. 18

9.7 Separation 18

10 Research & Development 19

10.1 Quality assurance techniques 19

10.2 Future plans & projects 20

10.3 Amount spent on Research & Development 20

11 Social Obligations 21
12 Findings 22
13 Suggestions 22
14 Conclusion 23
15 References 23

16 Annexures
A Organizational Structure of Denim Production
B Profit & Loss Statement
C Balance Sheet
 1 Company Profile

1.1 Objective of Visit

A visit to any organization gives an insight to the actual working of

organization and process of management. The objectives of this visit was to gain
some practical knowledge on how organization actually works, how different
departments play an important role for the success of organization and to get
information on various aspects of an organization like Finance, Marketing,
Production, Human Resource, etc.

1.2 Name of organization

GROUP ASHIMA comprises of the following companies/divisions:

Ashima Ltd.
Ashima Dyecot Ltd.
Nachmo Knitex Ltd.
Atrium Exports Pvt. Ltd.
Ashima Textiles Inc. USA-100% subsidiary of Ashima Limited

Registered Office: Corporate Office:

Texcellence Complex Texcellence Complex
Khokhra Mehmedabad Khokhra Mehmedabad
Ahmedabad - 380 021. Ahmedabad - 380 021.
INDIA INDIA
Tel: 079-22773513 Tel: 079-22773513
Fax: 079-22773061 Fax: 079-22773061

Website:
http://www.ashimagroup.com

1.3 Business philosophy

In 1992, Group Ashima adopted its corporate philosophy of Texcellence

as a global mission.

Texcellence means excellence in textiles. This corporate philosophy

epitomizes excellence not only in their core textile operations but also in all
aspects of their business endeavours. Be it in selection of the most sophisticated
technology. In procurement of superior quality raw materials. In rigorous quality
inspection at every stage of production. In providing challenges to their human
resources. In globally competitive marketing missions. In their concern for clean
environment. Or for that matter, in discharging their social obligations.

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 Their commitment to the philosophy of Texcellence has brought them
closer to their discerning fabric customers across the globe. They cherish the same
values that concern their customers and are fired by the same urge to be the best.

Their quest for excellence has frutioned into a fixed assets base exceeding
US$ 120 Million. With their consistent policy of adopting the most modern state-
of-the-art technology of the world, they can offer the best in cotton fabrics that
anybody, anywhere in the world may aspire to.

The philosophy of Texcellence has helped Ashima integrate into a single-

window vendor of 100% cotton fabrics for apparels. They offer the most
comprehensive range of cotton fabrics for apparels including specialty denims,
high value yarn dyed, bleached as well as piece dyed cotton shirting, entire
spectrum of bottom weight fabrics with all types of surface finishes, fusible
interlinings and high quality processed circular knitted fabrics. All these fabrics
are available in pre-cured as well as ready-for-post-curing forms. They also offer
garmenting solutions and in the domestic market they have a presence through
their brands.

1.4 Mission & Vision Statement

1.5 Aims & Objectives

1.6 Status of the company in market

Group Ashima is one of India’s leading 100% cotton fabric manufacturers.

It is a technology driven vertically integrated Group with a turnover of over US$
135 million per annum. In a short span of 5 years, the Group has invested US$
120 million in start-of-the-art technology and today is one of the foremost cotton
textile players in the world.

They offer the most comprehensive range of cotton textile products,

encompassing each and every need of the garment industry. More than two-thirds
of their production of 60 million meters of woven and 2800 tones of circular
knitted cotton fabrics is meant for exports. On account of their qualitative
supremacy the fabrics command an ever-growing base of discerning customers in
more than 45 countries across the world. To meet the needs of customers seeking
total solutions in terms of packages, they also have garmenting and offer complete
services to the best labels/brands across the world. Last but not the least they have
a good quality fusible interlining fabrics to complete the basket.

In the true sense, Group Ashima is a single window integrated vendor to

meet the requirements of the global customer sourcing 100% cotton fabrics.

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1.7 Special awards & recognition

Group Ashima has achieved several milestones in the march towards "Texcellence".
Ashima is the first textile company to adopt and
get certified for "Integrated Quality and
Environmental Management System" ISO
9001:2008 and ISO 14001:2004.

Ashima fabrics are certified confirming to

Oeko-Tex Standard 100 of Germany.

Ashima has been awarded the prestigious Gold

Award from Greentech Foundation, New Delhi
for excellence in environmental protection in
textile sector for the year 2005 for the second
year in a row.

Ashima has been awarded the patent for the

invention of a process for treatment of textile
waste water by enriched biomass.

Ashima has been certified by Control Union

Certifications for Global Organic Textile
Standard (GOTS) and Organic Exchange (OE-
100 Standard), with which they ensure organic
status of textile from harvesting of raw
materials, through environmentally & socially
responsible manufacturing up to labelling in
order to provide a credible assurance to the end
consumer.

Ashima has been certified by FLO-CERT

GmbH for Fairtrade. This provides a guarentee
to the consumers of certified fairtrade products
that they are contributing to the Social-
Economic development of people through their
purchasers.
The company is certified by social compliance agency WRAP, which is widely
recognized in the United States.
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 2 History of the organization

2.1 Main History

Group Ashima is an enterprise born in 1982, with a moderate capital base

of US$ 20,000.

The present form is seen today, as the foremost cotton textile manufacturer
with over US$ 135 million turnover and spread over 70 acres of land. This is the
result of a vision, and commitment of its founder Mr. Chintan Parikh. The
stupendous growth is a result of an enterprise fired by will, a keen eye on the
global developments in cotton textiles and an insatiable urge to do nothing but the
best by every constituent of Ashima headed by Mr. Chintan Parikh.

Today, Group Ashima has become one of the major success stories in the
Indian textiles arena.

In the last 12 years, Ashima has spread its wings across five continents to
emerge as one of India’s foremost cotton textiles manufacturers. At the core of
this inspiring saga of achievements is Mr. Parikh’s unique ability to identify the
potential business avenues in the field of cotton textiles in tune with the changing
times and market scenario in early 90’s. His quest for technological supremacy,
his obsession for global quality standards, his faith in human resource
development, and above all his vision and determination to make Ashima a global
textiles group.

In less than two decades, Group Ashima has been able to join the select
global league of major cotton textile manufacturer and a major player in Indian
textiles arena.

2.2 Recent Achievements

Group Ashima is very badly affected by the recession. So there are no

recent achievements of the group in the last 3-4 years.

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 3 Form of Organization

There are many forms of business organization viz., sole proprietorship,

joint Hindu family business, partnership, company and the co-operative
organization.

The section of a suitable form of business organization is a very

significant decision for the promoters of a business enterprise; because much of
success or failure of business is likely to depend on this choice. The basic
objective of the choice of a suitable form of business organization is to select that
form, which will help the business enterprise in solving its problems- leading to
its growth and prosperity.

3.1 Advantages & Disadvantages of the Form of Organization

of Ashima Group i.e. - Public Ltd. Co.

Advantages:
(1) Separate legal existence: Being a separate legal entity, it acts under its own
name. The company may own and dispose off property in its own capacity. It can
also enter into contracts with members and outsiders.
(2) Limited liability: Liability of the members of a limited company is limited to
the face value of their shares. Members are not required to contribute to the
liabilities of the company beyond the nominal value of shares in case of
liquidation of a company.
(3) Transferability of shares: Shares in a company can be transferred from one
person to another person without the consent of the other members.
(4) Continuity of existence: The life of a company depends upon the terms of its
memorandum of association, which may be for a specified period. The death or
insolvency of its members does not affect the existence.
(5) Control: The control over a company can be secured by acquiring majority of
the company’s shares.
(6) Social benefit: The social benefit of a company is that it gives employment to
a number of persons, and contributes to the growth and the development of the
nation.
(7) Limitation of action: A company may perform only those acts, which are
permitted by its memorandum. The scope of the company’s activities is limited by
its memorandum.

Disadvantages:
(1) Lack of secrecy: The Board of Directors, in which a number of persons may
be involved, manages the company. All important matters are discussed in the
meeting of directors. In such circumstances, it is rather difficult to maintain the
secrecy of the business.
(2) Difficulty in formation: Many legal formalities are required to be completed
for obtaining a certificate of incorporation.
(3) Fraudulent management: There are several provisions under the Companies
Act to check frauds; yet frauds are common in many companies.
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 4 Organization Structure

The Organizational Structure, which really refers to the chart of

organization, is an outcome of undergoing the process of organization. It reflects
the authority and responsibility of managers and their subordinates. Its structure
reflects the fundamental objectives, policies, procedures etc. of the organization.

Organizational Structure helps management in gaining objectives

efficiently, in a changing future environmental scenario. Depending on enterprise
situations, an organization structure may take variations.

On the basis of authority-responsibility relationships, organizations might,

broadly be of the following basic types:
(I) Line organization
(II) Functional organization
(III) Line and staff organization

4.1 Hierarchy

Note- For Hierarchy (Organizational Structure) of Denim Production refer to

Annexure A

While looking to the Organizational Structure of Denim Production of

Ashima, one could identify that it is a Functional organization.

A Functional organization is one, in which exercise of functional authority

is done by a functional manager or specialist-not only over his own subordinates;
but also over all subordinates in all other departments; in so far as, the particular
function, pertaining to his specialization is performed by them.

6
 5 Location

5.1 Factory Address

Texcellence Complex
Khokhra Mehmedabad
Ahmedabad - 380 021.
INDIA
Tel: 079-22773513
Fax: 079-22773061

5.2 Reasons for choosing a particular location

• Gujarat is a state where production of cotton is done on large scale so being in

Gujarat they are near to the raw material.
• Distribution center is also near to the location of the factory.
• Skilled labour is also available easily.
• Infrastructural facilities such as Water, Sewage, Electricity, Tar Road, Access and
Connectivity to Public Transportation, Goods Transportation, Post, Courier and
Telecommunication, Health and Safety Service, etc. are also offered by the
location.

So because of the above reasons the location of the factory is in the

Khokhra Mehmedabad area which provides all the necessary facilities for a
Textile Industry.

5.3 Benefits of Location

The company gets the following advantages by being present in the

location where it is at present:
• Constant supply of electricity.
• Skilled labour is available at cheaper rate.
• Well-developed infrastructural facilities.
• Market center is located nearby.

All the above advantages help the industry to reduce its cost of production
effectively.

5.4 Limitations of Location

There are no major limitations of the current location.

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 6 Production

6.1 Product Range

Product range is a collection of products marketed by one company.

Fabric Range
Group Ashima offers the most comprehensive range of cotton textile products,
encompassing each and every need of the garment industry. Thus, they have been able to
establish themselves as a one point source for the garment industry, offering:

• Denims - Open end, Ring Spun

• Shirting’s - Fully Bleached Whites, Piece-Dyed, Yarn-Dyed
• Bottom Weights - PFD, Piece Dyed, Yarn Dyed
• Knitted Fabrics - Tubular, Open width and Piece-Dyed, Yarn-Dyed, Mercerized,
Compacted and Open Width
• Interlinings - Microdot Coated fusible woven

Readymade Garments Range

Their Garment Initiatives offer total solutions to the apparel industry
• Shirts, formal as well as casual
• Trousers, Jeans, Capri
• Jackets
• Cargos, Boxer shorts
• Pajama sets
• Children wear of all types
• Women wear and many more.

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6.2 Production Process in sequence

The production process of Denims can be easily understood with the help of
the following chart:

Blow Room

Card

Draw frame

Auto core/Ring Spinning

Warping

Dyeing cum Sizing

Air-jet weaving

Sizing

Monforts finish

Inspecting and Folding

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6.3 Plant & technology

…..It has always been Group Ashima’s endeavour to

constantly source new technologies from world leaders
in textile machinery manufacturing. It’s not surprising
then, that their manufacturing facilities are considered
to be industry benchmarks. These facilities together are
appropriately called the `Texcellence Complex’.
…..For denims they have: spinning preparatory from
Crossol and Rieter, open-end spinning from
Schlafhorst, Air- jet weaving from Tsudakoma, indigo
dyeing range from Sucker Muller and finishing from
Monforts. For their grey fabric manufacturing
operations, they have Tsudakoma Air- jet Looms from
Japan.
…..They have introduced for the first time in India,
ring can technology to produce ring yarn for denims
application. This enables them to produce ring denims.
This technology has given Ashima an upper edge in
denims.
…..The yarn dyeing and weaving facility has world-
class equipments like sectional warpers and direct
warper from Benninger, sizing machines from
Benninger-Zell, beam dyeing machines from Hisaka
and cheese dyeing machines from Fongs and precision
winding machines from SSM. The weaving facility
consists of Tsudakoma Air-jets and Picanol rapiers.
…..They can be proud of their sampling facilities
consisting of Pilot Cheese dyeing from Fongs and
single-end sizing machines of Yamada and sample
warpers from Suzuki, which have helped them to
respond to the world demands for samples in the
shortest possible time.
…..The commitment to technology is further
highlighted by their dye-house, which has the state-of-
the-art continuous pretreatment ranges from Benninger
as well as from Menzel, the mercerising ranges from
Benninger and continuous dyeing ranges with pad dry
and pad steam all from Benninger and Babcock.
…..They also have the latest stenters from Santex and
Babcock, the sanforising range from Monforts and the
calendaring from Kleinwefer. The special finishing
effects are carried out on the raising and sueding
machines from Lafer and Gematex. They also have the
caustic recovery plant from Korting Hannover AG. The
powder-dot coating machine from Santex produces one

10
of the best fusible interlinings.
…..The Knit processing for yarn dyeing, fabric dyeing
and finishing facilities consist of state-of-the-art
equipment from leading European and Japanese
companies and technology transfer from Santex AG.
They have the continuous mercerizing range from
Dornier, soft flow ‘Venus’ dyeing machines from
Sclavos, tubular as well as open-width finishing ranges
from Santex and yarn dyeing machines from Fong’s .
The SSM precision winding machine gives uniform
density for best yarn dyeing results.
…..The Circular Knitting division has grey fabric
manufacturing facility with circular knitting machines
from Terrot and Fukuhara of various diameters, for
making single jersey, interlock and rib fabric in plain
as well as various structures and in various counts. To
create engineered stripes with a wide range of
structures, they have world-class auto stripers with
mini jacquard from Terrot. They have flatbed knitting
machines from Shima Sieki to produce accessories like
collars and cuffs of various sizes supplied with the
body fabric. These machines have auto striping facility
with four colours to produce collars with tipping.
…..They have also established a modern laboratory
having computerized colour-matching system from
Datacolor along with Spectraflash – 600 type
spectraphotometer and Ahiba Nuance lab dyeing
system. All to ensure world-class fabrics that can do
the world’s leading brands proud.
…..Their garments division has various machines
including many special machines to meet the flexible
styling requirements of buyers. These include power
driven sewing machines Automatic Gerber spreading
machine with cutting table, Rotondi finishing
equipment with topper press, legger press, foam
finisher, collar cuff press, Juki automatic pocket
welting machine, Hashima and Kannegiesser fusing
machines, electronic bar-tack machine, button sewing
machines, spot removing gun many special machine
for shape tackling, elastic attaching, pocket making,
placket making, waist bend attaching, loop making,
pocket creasing, bottom hemming etc., special single
needle with under bed thread trimmer and electronic
control panel for special operations.
…..In consultation with M/s Kurt Salmon &
Associates, a sophisticated in-house facility has been

11
 established in India by Atrium called The Best
Engineered Product Laboratory (BEPL). This facility is
equipped with one of the latest CAD systems, a cutting
and sewing facility and a garment washing and
finishing facility. It also has training, customer
interaction and archive storage areas and a purpose
specific library. BEPL is designed to generate sample
prototypes of yet-to-be-ordered garments, keeping in
mind the Asian working environment, in virtual reality.

Raw Materials

Group Ashima is one of India’s leading 100% cotton fabric manufacturers,

so they mainly uses cotton as raw material for the production process. They also
uses dyes for dyeing the fabric.

They purchase the cotton from Gujarat and Punjab. While for getting the
Rich Cotton (fine, soft and light weighted cotton) they have to import it from
USA.

Table of capacities
Denims
Yarn Dyeing Shirting’s
Piece Dyed Shirting’s
Piece Dyed Khaki - (Bottom
Weights)
Fusing Interlining
Circular Knitting
Total
Garmenting
10.5 Million Meters per annum
11.5 Million Meters per annum
04.5 Million Meters per annum
17.5 Million Meters per annum
06.0 Million Meters per annum
15.0 Million Meters per annum
65 Million Meters per annum
01.2 Million Pieces per annum

6.4 Plant Layout

The Company is having Process Layout for its Denim Production, which
is also known as Functional Layout.

6.5 Measures to control pollution

Group Ashima firmly believes that they are the guardians of tomorrow’s
legacy. All of us should work towards conserving our environment and preserving
our natural resources. Their commitment to the `green’ cause is reflected in their
thoughts as well as deeds. Their commitment is towards cleaner production,
environmental protection & sustainable development. Towards this goal they
have invented a technology for an innovative and noble approach to treat

12
 textile waste by enriched biomass, opening up a new horizon for the
environmentalists. The excess biomass can be used as a bio-fuel leading to
prevention of air pollution and conservation of water and energy.

Their Corporate Headquarters- Texcellence Complex is in the midst of a

lush green park with excellent landscaping and thick green foliage, large artificial
lake, garden, lawns…

They adhere to the most stringent of pollution control norms. There are six
primary and secondary effluent treatment plants treating a total 3360 M3 per day.
Their effluent treatment norms are in tune with world standards.

6.6 Area of Factory

The factory is spread over 70 acres of land.

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 7 Financial Information

Note- For Profit & Loss Statement and Balance sheet refer to Annexure B and C
respectively.

7.1 Capital employed

The Group Ashima was established in 1982, with a moderate capital base
of US$ 20,000. Today, their investment in technology and infrastructure exceeds
US $ 120 million.

7.2 Sales Turnover

The Group is doing the turnover of over US $ 135 million per annum.

7.3 Profit

The Net Loss of the Group for the year 2008-09 was Rs. 28.23 Crore.
While looking to the Profit and Loss Statement we can say that the Group is
running at loss from 2004.

7.4 Dividend

Dividends Declared
Announcement Effective Dividend Type Dividend (%) Remarks
Date Date
14-06-02 20-06-02 Final 0.00 -
17-11-97 - Final 28.00 -
12-11-98 - Final 18.00 -
18-11-99 - Final 15.00 AGM & Dividend
30-09-00 - Final 12.50 -

14
 8 Marketing

8.1 Marketing Position

The Group Ashima ranks second in India among the 100% cotton fabric
manufacturers.

8.2 Market Share

Market share of the group is more than 50% in Denim in Ahmedabad.

8.3 Physical Distribution & Channels

Physical Distribution

The Distribution of the products to the end users is done through the
Indian garment exporters; their domestic brands and other brands viz. Raymond,
Pantaloon, Lee, Wrangler, Ginny & Johnny, Killer, Levis in USA, Ring Denim in
UK, etc.

Their Domestic Brands are as follows:

• ICON brand of fabrics
• Frank Jefferson brand of garments
There are both company operated and franchisee showrooms of
Frank Jefferson brand in various markets across the country.

Distribution Channel

The Distribution Channel of the company’s product could be understood

with the help of given diagram:

Group
Ashima

Retail Indian Ashima’s Other Brands

Shops Garment Domestic (International
Exporters Brands and
Domestic)

15
8.4 Advertising & Sales Promotion

Advertising:

The company sometimes shows the advertisements of the Domestic

Brands i.e. - ICON and Frank Jefferson in News Papers.

Sales Promotion:

The company uses mainly two strategies for the sales promotion which are
as follows:

1. Value Added Products:

The company used to have Value Added Products
(same products with new and improved qualities) to create difference among the
others and their products, so that the big brands purchase the fabrics and garments
from them.

2. Nomination of the product:

The company prefers to get their fabric nominated,
if the fabric is once nominated then they have the upper hand, they can quote their
prices. To nominate their fabric they approach to different brands, show them the
features and types of the fabric they have and offer them to buy their products.
Sometimes they also go to the showrooms of the brands and identify that which
kind of fabric is sold, and then they approach those brands and offer them to buy
same kind of fabric.

8.5 Level of competition

The level of competition in the cotton textile industry is high. The major
competitors of the Company are Gindal, Shripal and Arvind.

8.6 External or export oriented marketing

Ashima exports its fabrics to more than 45 countries. Around 60% of

product is exported to USA, Egypt and Europe. More than two-thirds of their
production of 60 million meters of woven and 2800 tones of circular knitted
cotton fabrics is meant for exports.

Ashima also markets its fabrics to more than 150 Indian garment
exporters.

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 9 Human Resource Management

9.1 Number of workers

The total strength of the people working in the company is 4000. Among
them 600 are managerial employees and 3400 are workers. Out of 3400 workers,
400 workers are engaged in the Denim production process.

9.2 Selection & Recruitment

The process of recruitment and selection starts only after the approval of
Ms. --- the head of HR and IR department.

For recruitment and selection first preference is given to the employees

references, second preference is given to the www.naukri.com,
www.monster.com and third preference is given to the manpower consultancies
viz. Sarthi Consultancy, Career Mosile Consultancy, Anil Consultancy.

9.3 Training & Development

In the field of human resource management, training and development is

the field concerned with organizational activity aimed at bettering the
performance of individuals and groups in organizational settings. It has been
known by several names, including employee development, human resource
development, and learning and development.

The Company is organizing young engineers forum on regular basis.

Under this forum engineers are giving lectures to the employees so that they can
update their knowledge.

9.4 Emoluments & Compensation

Emoluments

Amounts received from an office or employment including all salaries,

fees, wages, perquisites, and other profits as well as certain expenses and benefits
paid or provided by the employer, which are deemed to be emoluments.

Compensation

Compensation is something which is given to reduce or balance the bad

effect of loss, suffering or injury.

17
9.5 Performance Evaluation & promotion

Performance appraisal

Performance appraisal is an evaluation of the performance of an

employee. The results of the appraisal may be used in deciding an employee’s
pay, career prospects, training, or job satisfaction. It is usually carried out by
means of an interview with the employee’s immediate manager, although in some
cases self-appraisal may be used.
In most organizations appraisal consists of assessing the employee’s
ability to meet objectives and his or her general demeanour as a member of the
workforce.

The company is having its performance appraisal usually every month

starting from March for which they are using the Rating Scale Method.

9.6 Trade union & Management’s relation with the same.

Trade union

Trade union is an organization whose principal purposes include the

regulation of relations between employees and employers or employers’
associations. Unions’ affairs are regulated by the Trade Union Act (1984) and the
Employment Act (1988).

9.7 Separation

Before separation 1 Month or 3 Months notice period is given so that one

can improve himself.

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 10 Research & Development

10.1 Quality assurance techniques

For Group Ashima quality is the only password.
Quality assurance perhaps assumes more importance
than any other aspect for the group. And rightly so,
because the discerning customers that the group services,
would want nothing but top-notch quality.
Towards this end they have one of the best SQC
Laboratories, any textile infrastructure can boast of.
Group Ashima is equipped with testing laboratory
known as Lalita Hargovandas Research Centre. This
research centre was established in 1996. This research
centre cum lab is well equipped with ultramodern testing
facilities and well-trained technical experts. Apart from
this their lab is well conditioned round the clock as per
international standard and is continuously monitored by
a temperature - humidity chart recorder Well-known
national as well as international garment brands/retailers
have approved this lab.
Their lab is accredited by manufacturers to
retailers, as they carry out in-house testing with high
standard of accuracy and reliability.
The laboratory is involved in the testing of cotton,
yarn, grey fabrics, dyes, chemicals, auxiliaries and
different kind of fabrics at various stages of processing.
They have for cotton testing HVI-900 system,
version 3.5 for testing length, strength, elongation,
colour and micronaire; micro dust trash analysis – 3 for
testing fresh, fibre fragments and micro dust in raw
cotton apart from a host of other equipment for
micronaire testing, fineness and maturity testing of raw
cotton, Lea making for count, CSP measuring, count
strength, count determination and the likes.
The yarn both in-house production and outside
purchase undergoes severe test before weaving. The
Uster Classimat III analyses the fault in matrix order of
single ply yarn. The Uster Tensojet tests the tensile
strength of yarn at speeds of 400, 200, 100 and 50 meters
per minutes. The Uster Evenness Tester III checks the
yarn imperfectness. They also have electronic TPI tester,
Sigmascope Uster Tensokid and the like.
The grey fabric testing is elaborate too. The
Alphatens’ tests the tensile strength of fabric at a speed

19
 of 500 mm./mints; the lea strength tester measurers the
CSP of yarn. They have the stiffness tester, warp
elongation tester, fabric stretch tester etc.
The finished fabric is tested for various fabric
parameters as per international standard testing methods
like AATCC, ASTM, ISO, etc. The finished fabrics tests
are carried out for constructions, weight, percentage
shrinkage, Skew/bow %, tear strength DP ratings, CIE
whiteness, pH, abrasions, seam slippage, spray rating
(for Teflon coated), percentage stretch / percentage
recovery (for lycra contents), colour fastness. For this
purpose host of sophisticated testing equipments all from
well known suppliers matching world standards have
been employed like Martindale (Abrasion Resistance,
etc) , colour fastness like Megasol (Light Fastness),
Gyrowash (Washing Fastness), Wascator (Dimensional
stability), and Morapex (fabric core pH measurement).

10.2 Future plans & projects

The company doesn’t have any future plans and projects because currently
it is facing the problem of liquidity ratio.

10.3 Amount spent on Research & Development

The Group spends its 2% of Net Profit on Research and Development every year.

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11 Social Obligations

The Group has sponsored various parks, public

gardens belonging to The Ahmedabad Municipal
Corporation. They have completely renovated them with
tree plantation, fountains, children's park, jogging track
and lighting. The gardens are continuously monitored
and maintained by them. In fact they have won accolades
from the people frequenting the parks and it has been
instrumental in fetching the Municipal Corporation
national awards.
Group Ashima has also supported various
charitable, educational, cultural and research institutions
along with slum clearance, city beautification and
preservation of heritage and culture of India.
Group Ashima, as a policy, employs no child
labour in its work force. In fact, it is a crusader against
the use of child labour and thus strongly prohibits
employment of child labour even by its associates. They
actually ask their builders and contractors to furnish
bonds to ensure that they do not employ any child
labour.

21
 12 Findings

• The Company is not getting the benefits provided by the Govt. to the
industries located in the Industrial Area because it is not located in an
Industrial Area.
• The factory is spread over 70 acres of land and this space is not utilized
completely by the Company.
• Ashima is the Company which is despite running at its full capacity
making loss; the reason is that it has not been able to recover from the
onslaught of the recession.

13 Suggestions

• Company should expand its production by utilizing its free land area
around its production unit.
• As there is an increasing demand of Denim in the market so the company
should increase the production of Denim by setting more machines, in order to
increase its profitability.
• Company should try to increase the efficiency and reduce the cost of
production as much as possible for speedy recovery.
• Strategies should be made by the Company to face the future recession so
that it may not suffer like it suffered in the last recession.

22
 14 Conclusion

• Ashima’s commitment to the philosophy of Texcellence has brought it

closer to the discerning fabric customers across the globe.
• Ashima has always believed in investing in the most modern and state-of-
the-art technology available in the world.
• The Company offers the most comprehensive range of cotton textile
products, encompassing each and every need of the garment industry.
• The Company is committed towards cleaner production, environmental
protection & sustainable development.
• The Company is facing the problem of liquidity ratio and has not been
able to recover from the setback of the recession so this problem could
jeopardize the Company if it is not managed efficiently.

15 References

• http://www.ashimagroup.com/
• http://www.moneycontrol.com/; Source: Religare Technova

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 Annexure B
Profit & Loss Statement of Ashima
Section 1.01 ------------------- in Rs. Cr. -------------------
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 483.03 449.46 236.14 223.21 208.20
Excise Duty 13.14 1.55 0.00 0.00 0.00
Net Sales 469.89 447.91 236.14 223.21 208.20
Other Income -18.46 -63.91 -11.07 -21.25 -8.23
Stock Adjustments -2.90 0.93 -1.23 -5.06 -4.48
Total Income 448.53 384.93 223.84 196.90 195.49
Expenditure
Raw Materials 352.70 294.44 141.14 133.70 123.86
Power & Fuel Cost 17.87 29.90 22.39 23.34 22.11
Employee Cost 24.21 32.89 27.81 28.55 25.77
Other Manufacturing Expenses 23.25 30.20 22.00 21.97 16.22
Selling and Admin Expenses 7.66 16.09 12.08 0.00 0.08
Miscellaneous Expenses 1.30 1.29 1.07 12.83 15.24
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 426.99 404.81 226.49 220.39 203.28
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Operating Profit 40.00 44.03 8.42 -2.24 0.44
PBDIT 21.54 -19.88 -2.65 -23.49 -7.79
Interest 82.30 25.51 3.14 2.28 4.26
PBDT -60.76 -45.39 -5.79 -25.77 -12.05
Depreciation 30.35 20.30 15.27 15.22 13.77
Other Written Off 0.91 0.78 0.84 1.95 2.26
Profit Before Tax -92.02 -66.47 -21.90 -42.94 -28.08
Extra-ordinary items -1.78 1.11 0.53 0.22 0.00
PBT (Post Extra-ord Items) -93.80 -65.36 -21.37 -42.72 -28.08
Tax 0.04 0.31 0.21 0.17 0.16
Reported Net Profit -93.82 -65.66 -21.58 -42.89 -28.23
Total Value Addition 74.29 110.37 85.34 86.70 79.42
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 333.69 333.69 333.69 333.69 333.69
Earning Per Share (Rs) -28.12 -19.68 -6.47 -12.85 -8.46
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) -25.82 -45.29 -51.75 -47.98 -56.44
Source : Religare Technova
 Annexure C
Balance Sheet of Ashima
Section 1.01 ------------------- in Rs. Cr. -------------------
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 53.87 53.87 53.87 53.87 53.87
Equity Share Capital 33.37 33.37 33.37 33.37 33.37
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 20.50 20.50 20.50 20.50 20.50
Reserves -119.51 -184.48 -206.06 -193.47 -221.71
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth -65.64 -130.61 -152.19 -139.60 -167.84
Secured Loans 508.70 541.58 541.61 447.66 450.52
Unsecured Loans 83.42 28.57 26.34 23.49 22.93
Total Debt 592.12 570.15 567.95 471.15 473.45
Total Liabilities 526.48 439.54 415.76 331.55 305.61
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 480.31 328.78 317.52 318.62 307.63
Less: Accum. Depreciation 228.92 20.27 33.81 68.35 79.64
Net Block 251.39 308.51 283.71 250.27 227.99
Capital Work in Progress 0.78 0.00 0.04 0.00 0.00
Investments 55.86 33.85 36.84 36.84 33.00
Inventories 60.67 55.90 51.32 44.29 39.18
Sundry Debtors 162.66 13.21 13.99 14.20 18.24
Cash and Bank Balance 8.97 3.48 1.31 7.03 4.61
Total Current Assets 232.30 72.59 66.62 65.52 62.03
Loans and Advances 23.44 57.29 55.08 10.46 10.95
Fixed Deposits 6.03 4.73 4.30 0.00 0.00
Total CA, Loans & Advances 261.77 134.61 126.00 75.98 72.98
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 45.42 38.80 35.27 35.38 29.80
Provisions 1.16 1.56 1.73 2.72 3.09
Total CL & Provisions 46.58 40.36 37.00 38.10 32.89
Net Current Assets 215.19 94.25 89.00 37.88 40.09
Miscellaneous Expenses 3.25 2.92 6.17 6.55 4.53
Total Assets 526.47 439.53 415.76 331.54 305.61
Contingent Liabilities 309.11 293.17 258.70 258.88 259.09
Book Value (Rs) -25.82 -45.29 -51.75 -47.98 -56.44
Source : Religare Technova