Organizational study

Industry profile

A textile or cloth is a flexible material consisting of a network or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other materials to produce long strands. Textiles are formed by weaving, knitting, crocheting, knotting, or pressing fibres together.

Prior to the manufacturing processes being mechanized, textiles were produced in the home, and excess sold fo extra money. Most cloth was made from wool, cotton, or flax, depending on the era and location

The

textile,

textile

product,

and

apparel

manufacturing

industries include establishments that process fibre into fabric and fabric into clothing and other textile products. While most apparel manufacturers worldwide rely on people to cut and sew pieces of fabric together. There are three individual industries covered- textile mills, textile product mills, and apparel manufacturing.

Textile mills provide the raw material to make apparel and textile products. They take natural and synthetic materials,

such as cotton and polyester, and transform them into fibre, yarn, and thread. Yarns are strands of fibres in a form ready for weaving, knitting, or otherwise intertwining to form a textile fabric. They form the basis for most textile production and commonly are made of cotton, wool, or a synthetic fibre such as polyester. Yarns also can be made of thin strips of plastic, paper, or metal. To produce spun yarn, natural fibres such as cotton and wool must first be processed to remove impurities and give products the desired textile and durability, as well as other characteristics. After this initial cleaning stage, the fibres are spun into yarn.

Textile mills then go on to produce fabric by means of weaving and kitting. Workers in weaving mills use complex, automated looms to transform yarns into cloths. Looms weave or interlace two yarns, so they cross each other at right angles to form fabric. Knitting mills use automated machines to produce fabric of interlocking loops of one or more yarns

At any time during the production process, a number of processes, called finishing, may be performed on the fabric. These processes which include dyeing, bleaching, and stonewashing, among others may be performed by the textile mill or at a separate finishing mill. Finishing encompasses chemical or mechanical treatments performed on fibre, yarn, or fibre to improve appearance, texture, or performance.

Textile product mills convert raw textiles into finished products other than apparel. Some of items made in this sector include household items, such as carpets and rugs, towels, curtains and sheets, cord and twine, furniture and automotive upholstery, and industrial belts and fire hoses. Because the process of converting raw fibres into finished textile products is complex, most textile mills specialize.

The

apparel by

manufacturing textile

industry

transforms into

fabrics and

produced

manufacturers

clothing

accessories. The apparel industry traditionally has consisted mostly of production workers who performed the cutting and sewing functions in an assembly line. This industry remains labour intensive, despite advances in technology and workplace practices. Although many workers still perform this work to foreign suppliers to take advantage of lower labour costs in other countries.

Many of the remaining production workers work in teams. For example, sewing machine operators are organized into production modules. Each operator in a module is trained to perform nearly all of the functions required to assemble a garment. Each module is responsible for its own performance, and individuals usually receive compensation based on the terms performance.

Recent developments

The textile and apparel manufacturing industries are among the most labour intensive manufacturing industries, and therefore and increasing amount of textile products is produced by foreign suppliers. Nonetheless, some textile manufacturing still takes place in the united states. To remain competitive, however, domestic manufacturers rely on being extremely labour efficient. Advanced machinery is boosting productively levels in textiles and fundamentally changing the nature of work for employees. New technology also has led to increasingly technical training for workers throughout the industry. Computers and computer controlled equipment aid in many functions, such as design, patternmaking, and cutting. Other emerging technologies which improve plant efficiency include wider looms, computerised equipment, and increased use of robotics to move material within the plant.

The domestic apparel industry

also

benefits from

laws

requiring the clothing worn by the armed services be produced in the United States a law that was recently extended to cover uniforms worn by Transportation Security Administrations Officers. Although demand for these uniforms is greatly outweighed by a much larger consumer goods market, it

nonetheless will continue to employ some textile workers in more labour intensive segments, such as cut and sew apparel manufacturing.

Other domestically produced items tend to be custom or high end items. One advantage the domestic industry has is its closeness to the market and its ability to reach to changes in fashion more quickly then its foreign competitors. Also, as retailers consolidate and because more cost conscious, they require more apparel manufacturers to move toward just in time delivery systems, in which purchased apparel items are quickly replaced by new items directly from manufacturers, rather than from a large inventor kept b the retailer. Through electronic formations data interchange mainly to using the barcodes in quickly communicated manufacturers,

providing information not only on inventory, but also about the desire of the public for particular fashions.

Some apparel firms have responded to growing competition by merging with other apparel firms and by moving into the retail market. In addition to the production of garments they also are contracting out functions- for example, warehousing and order fulfilment to concentrate on their strengths: design and marketing. Computer aided design systems have led to the development of product life cycle management, under which potential new fashions can now be transmitted around the planet over the Internet. Such changes may help the apparel

manufacturing industry meet the growing competition and continue to supply the Nations consumers with garments at an acceptable cost.

Some Important Industries in the World Perfect Exports Private Limited - Nepal

Good Top International Company Limited

- Taiwan

Maruti Textiles

- India

Texfab Engineers India Private Limited

- India

Go Green Textiles India

- India

Tepe Label

- Turkey

Fractal Fashion

- India

Flainox Srl

- Italy

Expo Dress Marketing

- Bangladesh

M.M.Traders

- India

History of textile industry

India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets. The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to Bombay, was established in 1861. The spread of textile industry to Ahmadabad was largely due to the Gujarat trading class. The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile industry was in bad state due to the great famine

and a number of mills of Bombay and Ahmadabad were to be closed down for long periods. The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries. After independence, Indian mills had to import cotton from Pakistan and other countries. After independence, the cotton textile industry made rapid strides under the plans. Between 1951 and 1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well over 26 million b 1989-90.

Textile Industry in India

The Indian textile industry has a significant presence in the international textile economy. The Indian textile industry is currently one of the largest and most importance sectors in the economy in the terms of output foreign exchange earnings, production and employment generation in India.

The Indian textile industry adds 14% to the industrial production and 8% to the GDP of India. It provides employment to 38 million people and thus, is the second largest

employment provider after agriculture. The Indian apparel and textile industry is one of the largest sources of foreign exchange flows into the country with the apparel exports accounting for almost 21% of the total exports of the country.

The textile industry has the potential to scale new height in the globalised economy. The textile industry in India has gone through significant changes in anticipation of increased international competition. In human history, past and present can never ignore the importance of textile in a civilization decisively affecting its destinies, effectively changing its social scenario.

Textile industry in India is the second largest employment generator after agriculture. It holds significant status in India as it provides one of the most fundamental necessities of the people. Textile industry in India has vast potential for creation of employment opportunities in the agriculture, industrial, organised and decentralised sectors and rural and urban areas, particularly for women and the disadvantages. Indian textile industry is constituted of the following segments: readymade Garments, Cotton Textiles including Handlooms, Manmade Textiles, Silk Textiles, Woollen Textiles, Handicrafts, Coir and Jute.

Textile industries in Tamil nadu

Textile Industry of Tamil Nadu is the forerunner in Industrial Development and in providing massive employment in the State. It is predominantly Spinning-oriented. The State Textile Industry has a significant presence in the National economy also. Out of 2049 large and medium textile mills in India, 893 mills are located in Tamil Nadu. Similarly, out of 996 small units in India, 792 are located in Tamil Nadu. The 893 large and medium textile mills include 18 Cooperative Spinning Mills, 17 National Textile Corporation Mills and 23 Composite Mills. The spinning capacity is 14.75 million spindles with a The Textile Industry in the labour force of about 2.17 lakhs.

private sector has a very important role to play in the Industrial field, with regard to employment potential, overall economic and commercial activities. exchange through exports. This industry enables the Central and State Government to earn revenue, besides foreign

Company profile

Jak industries is a family owned business. The companys operations are totally vertical. Jak industries has been in the fabric manufacturing business for past 30 years and been manufacturing finished garments for the past 12 years. As a result the company has excellent expertise in both fields of garments and fabric manufacturing.

The company is certified with ISO- 9001- 2008, WRAP PLATINUM CERTIFIED FACILITY, BSCI, SGS, LI AND FUNG CERTIFIED, ETI CODE OF CONDUCT.They have an infrastructure with more than 500 machines and skilled work force of 600 people. Besides administration and quality management is held by competent qualified personals. Having made an ambitious start in less than a decade, they have occupied a dominant position amongst the reliable garment export unit in Tamilnadu.

After packing the garments, they have 100% checked through hashima needle detector machine imported from

Japan to ensure, there is no needle particles left in them, no garments will be packed unless it is thoroughly checked by the needle detector and also maintaining the needle policy register as per the global standard.

The fabric designs are created and developed using in house skills and talent. A blend colour, composition, texture, and view is created to appeal the aesthetic sense of the buyer.

They emphasis on design, quality and timely delivery has contributed in a big way to their growth. They pay attention to minute details and have also evolved an efficient and organised production process. The growths in turnover since inception as well as the increasing number to top labels being serviced are testimony to the leadership at JAK Industries.

They have very good tie up with the washing laundry they have capacity to do washing 100,000per day. They can do stone wash, bleach wash softener and different kind of blast of the garments.

Their production capacity is 100000 Pieces per month and lead time is 75 to 90 days based on fabric pattern after confirm the order.

Their production process are extremely efficient well organised. At JAK Industries they have the capacity to develop fabric designs and finish goods to satisfaction of overseas buyer.

All manufacturing facilities are full equipped with imported and specialized machined to provide the best quality garments and workmanship. All quality control issues such as shrinkage, colour fastness, constructions etc., are all tested to meet international the standards status of by approved production labs. and Communicating sampling,

important information are done a day to day basis to keep the customer well informed.

Nature of business carried

JAK Industries made an entry in to the Garments Export scene on ambitious note and has been continuously and consistently upgrading and improving its quality factor. It has grown several times over its capability, stature and turn over. Their plant and machinery located in Chennai and an exclusive and independent embroidery unit has also been established.

JAK Industries start their business by purchasing raw materials, i.e., fabrics and button from Salem, Ahmadabad, Calcutta and Delhi and even from abroad. The quantity of raw materials is fixed upon the orders come from the clients. There are more than 500 employees in the factory for stitching, ironing, quality checking and packing and labelling. 80% of the employees are women.

Turnover of the company Company earns $ 30000 per month that is Rs 1650000. And yearly turnover is Rs 19800000. The total salary they are giving to their employees is Rs 4000000

Product exported

Product range fabric for girls and womens:

Embroidered tops Beadwork Pin tuck, smoking

 Printed fabric Sheer jersey Glowing night print Fine knit-viscose and viscose blends etc.

Product range fabric for men

Bio polished polos peached jersey, suede jersey. Flat back rib-cotton/wool, polyesters cotton. 100% cotton fleece, 80/20 cotton/poly fleece, micro polar. Fleece, spun/ply fleece, heather fleece. Moisture wicking fabric chemicals and yarn. Water repelled stain guard, Teflon coated. Single mercerized polo solids, jacquard wrappers. Velour, ottoman pouched. Sub fleece, cotton model and different modal blends Organic cotton jersey and pique etc.

Area of operation

JAK Industries is a 100% Export Company. JAK Industries does not manufacture for the domestic market, nor does it currently have any plans to do so. It exports to the countries like USA, Europe and South Africa.

USA -BUCKLES, PRANA, ROCAWEAR, PEPE JEANS, BILLABONG, ECKO UNLTD.,

EUROPE LAKESIDE

-C& A, CARS JEANS, KIABI, DUNES, COOLCAT,

SOUTH AFRICA

-MARKAMS, TRUEWORTHMAN

Production plant and machinery:

Company is having good sophisticated and new technology of plant and machinery which helps employees to adopt new technology in their work which in turn helps to maintain good quality of products.

Work flow model

Receive orders

Suppliers

substore

Stock

Fabric

Cutting section

Weaving

Button fixing

Trimming

Checking

Stain spotting

Final checking

Ironing

Final presentation Packing and labelling

Shipping Formalities

Shipping cost will be based on product weight and shipping country. To find out when you will receive an item, you need to consider the availability of the items your customer is ordering as well as the shipping option your customer selected. All books, CD's and puja items are sourced locally and are usually available for shipping within 2 days. We will let your customer know immediately if these items are unavailable. Offerings for the pujas performed at temples in and around Chennai will be shipped on the day the pujas are performed. For pujas performed outside Chennai, the offerings usually take around 2 days to reach Chennai and are then shipped. In any case, the offerings will reach your customer 710 days from the date of shipment. If your customer is ordering from India or would like the offerings to be shipped to an

address in India, it normally takes between 5-7 days for the shipment to be received.

Multiple-item orders are held for shipment until all items are available unless your customer chooses to inform us through mail to ship, as items become available. (For instance, if you order three items, and two have an availability of 24 hours while one has an availability of 2 to 3 days, your order will be shipped in 2 to 3 days.) You may be subject to import duties and taxes, which are levied once the package reaches your country. This is not applicable to offerings of the puja but will be for all other merchandise purchased at Saranam.com. Additional charges for customs clearance must be borne by you; we have no control over these charges and cannot predict what they may be.

Customs policies vary widely from country to country; you should contact the local customs office for further information. Additionally, when ordering from Saranam, you are considered the importer of record and must comply with all laws and regulations of the country in which you are receiving the goods.

Future Growth and Prospects

 To

achieve

tangible

benefits

by

promoting

efficiencies,

productivity and professionalism Provide competitive prices and genuine products to our clients. Creating a climate for voluntary compliance by providing guidance and building mutual trust. To promote international textile trade. One that impresses level of business efficiency with integrity and honesty To be a world class organization one that becomes a benchmark for other organizations, its source for new ideas, information, professional development and quality standards.

STRATEGY USED BY THE COMPANY

Providing better quality product Maintaining good and long term relationship with buying agents Delivery of goods on time

 Providing better amenities to employees Maintaining good relation with employeed and considering them as internal customers

DEPARTMENTATION

Department is a process of dividing the large monolithic functional organization into small and flexible administrative units.

JAK Industries has a functional departmentalisation. The departments are:

1. Personnel Department 2. Production Department 3. Marketing Department 4. Financial Department

Personnel Department

JAK Industries is having a well governed human resource department, which is concerned with the creation of harmonious relationship among its employees, bringing about their utmost individual development. The HRD has a control over the employees of all other functional departments. They take the responsibility of maintaining various reports and documents. Few documents maintained by Human Resource Manager are as follows

Design and procurement Process control Inspection and test status of dies Document and data control

Production Department

The production department involves. The technical staff basically machines handling and technically skilled staff.

The supervisory staffs are having good relations among the subordinates. The supervisors have enough skill and knowledge about their work and production process and they control the employees to work efficiently. And also the various training programs are conducted o develop their supervisory skill.

Production planning Material planning Process control Productive and cost control

Marketing department

The marketing department is held by managing director, Mr. P. J. Sudhakar itself. The main task of marketing department is to deal with various buying agencies.

Financial department

The financial officer is the head of the accounts department. He is assisted by the chief accountant and accounts officers. All the cash transactions are controlled by finance department. All financial decisions are taken by accounts department. The company is banked with Dena Bank, nungambakkam.

REGISTRATION OF EXPORTERS

Registration with Reserve Bank of India (RBI)

Prior to 1997, it was necessary for every first time exporter to obtain IEC number from Reserve Bank of India (RBI) before engaging in any kind of export operations. But now this job is being done by DGFT.

Registration with Director General of Foreign Trade (DGFT)

For every first time exporter, it is necessary to get registered with the DGFT (Director General of Foreign Trade), Ministry of Commerce, Government of India.

DGFT provide exporter a unique IEC Number. IEC Number is a ten digits code required for the purpose of export as well as import. No exporter is allowed to export his good abroad without IEC number.

However, if the goods are exported to Nepal, or to Myanmar through Indo-Myanmar boarder or to China through Gunji, Namgaya, Shipkila or Nathula ports then it is not necessary to obtain IEC number provided the CIF value of a single consignment does not exceed Indian amount of Rs. 25, 000 /-. Application for IEC number can be submitted to the nearest regional authority of DGFT. Application form which is known as "Aayaat Niryaat Form - ANF2A" can also be submitted online at the DGFT web-site.

While submitting an application form for IEC number, an applicant is required to submit his PAN account number. Only one IEC is issued against a single PAN number. Apart from PAN number, an applicant is also required to submit his Current Bank Account number and Bankers Certificate.

A amount of Rs 1000/- is required to submit with the application fee. This amount can be submitted in the form of a Demand Draft or payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT.

EXPORT DOCUMENTS

Shipping Bill / Bill of Export Customs Declaration Form Dispatch Note Commercial invoice

Consular Invoice Customs Invoice Legalised / Visaed Invoice Certified Invoice Packing List Certificate of Inspection Black List Certificate Manufacturer's Certificate Certificate of Chemical Analysis Certificate of Shipment Health/ Veterinary/ Sanitary Certification Certificate of Conditioning Antiquity Measurement Shipping Order Cart/ Lorry Ticket Shut Out Advice Short Shipment Form

An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates.

Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail.

Export from India required special document depending upon the type of product and destination to be exported. Export Documents not only gives detail about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification.

Shipping Bill / Bill of Export

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document. Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:

Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.

Despatch Note- It is filled by the exporter to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted.

Commercial Invoice - Issued by the exporter for the full realizable amount of goods as per trade term.

Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export.

Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate.

Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriate consulate or chamber or commerce/ embassy.

Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery.

Packing List - It shows the details of goods contained in each parcel / shipment.

Certificate of Inspection It is a type of document describing the condition of goods and confirming that they have been inspected.

Black List Certificate - It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s).

Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and is available.

Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc.

Certificate of Shipment - It signifies that a certain lot of goods have been shipped.

Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides, livestock etc.

Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor, dry weight, etc.

Antiquity Measurement It is issued by Archaeological Survey of India in case of antiques.

Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.

Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.

Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter.

Short Shipment Form - It is an application to the customs authorities at port which advises short shipment of goods and required for claiming the return

Learning experience

JAK Industries has given me an opportunity to know about the organisational structure, formalities and its working. This training has given me an opportunity to know about the industrial world. Being with the company helped to learn how the management theories and concepts are applied in an organisation. Came to know about the importance of documentation and maintaining of data in the organisation. Got to know about what merchandiser does in an export garments. How to manage the fabric store department in garments industry. Got to know about various departments and their functions and how they interrelated. Importance of working together, training to workers and employees.

 It gives an opportunity to see how few managers managed a large number of employees and machine to run the company with a profit.

Conclusion:

The firm that I underwent was the ideal firm as it is a small firm and I had training in almost all the departments. Working in an export organisation, I could connect with a few concepts that have been taught in the classroom.

Firstly, the time period for the internship is rather short and there one can only skim the surface of the various aspects involved in export. Secondly, companies under which we do our training dont really have an idea about what exactly is expected from them. So, there should be more communication between the company and the teachers so they can impart the right kind of training to the students.

Overall I can say that the experience has been rewarding and I am happy that I could be part of such an exciting internship.