Main Content of Project

EXECUTIVE
SUMMARY
IBMR-IBS,Bangalore Page 1
Executive Summary
Well-Known DIGJAM LIMITED once runs in Shrinagar Kashmir as an extension of a mill.

It was an interesting historical company. Earlier in Kashmir it was work under the name of
“Shri Karan Singh Woollen Mills”.
In the year 1948 , the Pakistan’s attack on Jammu-Kashmir Shri A.K.Wattel want to migrate
towards this area with an idea of setting up a woollen mill in the remote town of Jamnagar at
Gujarat. At last his wish was fulfilled with the help of Mr. H.H. Jamsaheb the ruler of
Jamnagar and he has offered following helps:
1) 40 acres of land free of charge
2) 20 lacks loan towards equity
3) Free import of raw material
4) Exception from state taxes
This A.K. Wattel starts mill and give the name “Shri Digvijay Woollen Mill” to give honour
to Jamsaheb which is today famous with the name of DIGJAM LIMITED. In the year of
1948 the foundation store was laid by Shri H.H. Krishna Kumar Singh, the king of
Bhavnagar. In 1949 civil construction of mills was commenced and in 1952 the trial
production was started.
Around 1954 BIRLA took over the reins of mills in their hands and since Digjam is a Birla
managed company a unit of Birla VXL Ltd as S.K. Birla Group Company. The name of the
company now stands change to DIGJAM LIMITED in which “DIG” for Digvijay Woollen
Mills and “JAM” for Jamnagar unit.
Today Digjam Limited running successfully with increasing exports and increased utilized
capacity of production.
OBJECTIVES OF STUDY
For any MBA student, a learning combination of theory and practice is an invaluable
asset, as it helps in understanding the core principles of business by way of first hand
experiences. This in plant training is a stepping stone which will groom me for my
future in the corporate world.
Following are the objectives of Internship:-

 To get an Industrial exposure.
 To be aware of the happening in a particular industry.
 To achieve knowledge about different sectors in market for making choice as
to which go for.
 To learn functioning and operations of different departments in an
organization.
 To get knowledge about the working culture of the organization.
 To have knowledge about the huge management practices and get the practical
knowledge of what we have studied.
INDUSTRY
OVERVIEW
Introduction
Textile Industry
History
The history of textile is almost as old as that of human civilization and as
time moves on the history of textile has further enriched itself. In the 6th and
7th century BC, the oldest recorded indication of using fibre comes with the
invention of flax and wool fabric at the excavation of Swiss lake inhabitants.
In India the culture of silk was introduced in 400AD, while spinning of
cotton traces back to 3000BC. In China, the discovery and consequent
development of sericulture and spin silk methods got initiated at 2640 BC
while in Egypt the art of spinning linen and weaving developed in 3400 BC.
The discovery of machines and their widespread application in processing
natural fibres was a direct outcome of the industrial revolution of the 18th
and 19th centuries. The discoveries of various synthetic fibres like nylon
created a wider market for textile products and gradually led to the invention
of new and improved sources of natural fibre. The development of
transportation and communication facilities facilitated the path of transaction
of localized skills and textile art among various countries.
New innovations in clothing production, manufacture and design came during
the Industrial Revolution – these new wheels, looms, and spinning processes
changed clothing manufacture forever.
There were various stages – from a historical perspective – where the textile
industry evolved from being a domestic small-scale industry, to the status of
Supremacy it currently holds. The ‘cottage stage’ was the first stage in its
history where textiles were produced on a domestic basis.
During this period cloth was made from materials including wool, flax and
cotton. The material depended on the area where the cloth was being
produced, and the time they were being made.
In the later half of the medieval period in the northern parts of Europe, cotton
came to be regarded as an imported fiber. During the later phases of the 16th
century cotton was grown in the warmer climes of America and Asia. When
the Romans ruled, wool, leather and linen were the materials used for making
clothing in Europe, while flax was the primary material used in the northern
parts of Europe.
Indian Scenario
Indian textile enjoys a rich heritage and the origin of textiles in India traces
back to the Indus valley Civilization where people used homespun cotton for
weaving their clothes. Rig-Veda, the earliest of the Veda contains the literary
information about textiles and it refers to weaving. Ramayana and
Mahabharata, the eminent Indian epics depict the existence of wide variety of
fabrics in ancient India. These epics refer both to rich and stylized garment
worn by the aristocrats and ordinary simple clothes worn by the common
people. The contemporary Indian textile not only reflects the splendid past
but also cater to the requirements of the modern times.
Until the economic liberalization of Indian economy, the India Textile
Industry was predominantly unorganized industry. The opening up of Indian
economy post 1990s led to a stupendous growth of this industry.
India Textile Industry is one of the largest textile industries in the world.
Today, Indian economy is largely dependent on textile manufacturing and
exports. India earns around 27% of the foreign exchange from exports of
textiles. Further, India Textile Industry contributes about 14% of the total
industrial production of India. Furthermore, its contribution to the gross
domestic product of India is around 3% and the numbers are steadily
increasing. India Textile Industry involves around 35 million workers directly
and it accounts for 21% of the total employment generated in the economy.
Strengths of Indian Textile Industry are as follows –
⇒ Huge textile production capacity
⇒ Efficient multi-fiber raw material manufacturing capacity
⇒ Large pool of skilled and cheap work force
⇒ Entrepreneurial skills
⇒ Huge export potential
⇒ Large domestic market
⇒ Very low import content
⇒ Flexible textile manufacturing systems
Weaknesses of Indian Textile Industry are as follows –
⇒ Increased global competition in the post 2005 trade regime under WTO
⇒ Imports of cheap textiles from other Asian neighbors
⇒ Use of outdated manufacturing technology
⇒ Poor supply chain management
⇒ Huge unorganized and decentralized sector
⇒ High production cost with respect to other Asian competitors
The Ministry of Textiles under the Government of India has taken some
significant steps to arrest these problems. It has framed "The National Textile
Policy 2000" to address the aforesaid issues. This policy aims at negating
these problems and increasing the foreign exchange earnings to the tune of
US$ 50 billion by the year 2010. It includes rational road-maps for the
development and promotion of all the sectors involved directly or indirectly
with the textile industry of India. Further, the policy also envisages bringing
the unorganized decentralized textile sector (which accounts for 76% of
textile production) at par with the organized mill sector. Furthermore, the
policy also aims at introducing modern and efficient manufacturing
machineries and techniques in the Indian textile sector.
There has been a distinct and positive shift from quality to quality. Earlier
Indian textiles were considered cheap and of low quality. The industry was at
that time driven by large volumes, which were of paramount importance. The
best quality was produced in Europe and Japan. Since then, India has come a
long way, emerging as a manufacturer of high quality yarns and fabrics. The
leading mills such as Raymond’s, Digjam, Read & Taylor, Arvind mills etc.
Improved their quality standards prevailing into the world.
COMPANY
OVERVIEW
Company Profile
This mill was firstly established in the area of Shrinagar-Kashmir. The
name of mill was “Shri Karansingh Woollen Mills” which was promoted
by Mr.A.K.Watter. In 1948, when Pakistan attacked on Jammu-Kashmir,
Mr.A.K.Watter came towards this area with the view to set a mill
somewhere in Gujarat in the coasted areas. During those days, Jam Sahib
used to rule over Jamnagar. When he learnt about Mr.A.K.Watter, he
permitted Mr.A.K.Watter to set up mill within his provinces. Besides he
also offered attractive concessions. He gave 40 acres of land free, Rs.20
Lacs loan towards equity allowed free import of raw materials. So in
honor of Shri Jam Sahib, this mill was named as “DIGJAM”. In 1948,
the civil construction of the mill was commenced and in 1952 the prior
production has been started. Around 1954, Birla took over the reigns of
the mill in their hands and then since it came to be known as “BIRLA
VXL INDIA LTD”.
DIGJAM Limited, an S K Birla Group Company, began its activities

nearly 60 years back in Jamnagar, Gujarat. Since then, it has been
catering to the ever-growing demands of the Clothing and Fashion
industry, in the domestic as well as the international markets.
It is a leading textile company in India, manufacturer of fabrics for

suiting and casual wear. In recent years, the company restructured its
business
Portfolios to focus as a textile company manufacturing and marketing

fabrics and ready-to-wear clothing under its own brands.
A complete vertically integrated plant, Digjam has ultra modern

production facilities to convert wool tops to finished fabrics through
different processes of Dyeing, Spinning, Weaving and Finishing using
state-of-the-art machinery imported from France, Germany, Switzerland
and Italy. Stringent quality checks at every stage and process enabled
Digjam to bag the prestigious ISO 9001 certification. Keeping pace with
the complex requirements of the industry, Digjam expanded its
production capacity to over 5 million meters, of which 50%-60%
(approximately) is exported to major countries across the globe.
Andersen Consulting, a leading management and corporate advisors

agency, undertook a major review of the operational parameters of our
textile company. Following a thorough review of the operating and
marketing practices, recommendations were made which now form the
basis of our strategic marketing and manufacturing thrusts spanning the
coming 3-4 years. The company has also initiated steps to strengthen its
organization and induct the youth and skills necessary to attain results
from this strategic shift-cum-consolidation exercise.
While the company lays uniform stress on all fundamental aspects such
as quality, designs and cost-friendliness for products under all its
brands, DIGJAM is undoubtedly its premium fabrics brand. DIGJAM has
a high-end fabric brand presence in the domestic market, reputed for its
finish and quality. The company manufactures over 3000 design-shade
combinations each year in Light Wool, Polyester Wool and Woollen
fabrics for the DIGJAM brand alone. Constant research on designs
ensures creation of innovative future trends. In the new millennium,
DIGJAM introduced super- premium fabrics designed by European
experts (with whom we work regularly and extensively) comprising fine
wool yarn of Super 150s and Super 120s and occasionally blended with
exotic fibres like Silk or Cashmere.
Dressing in India has come of age - rising affluence levels, increased
media exposure of international fashions and a growing tendency
towards
self-indulgence have all contributed to it. The all round impact is visible
with the influx of international, and domestic products and brands in
both, formal and casual wear. Indian customer has choice today, but one
where we are determined to make and sustain our mark.
The DIGJAM brand will increasingly reflect both tradition and

modernity in its positioning, product range and marketing approach. We
intend to position the brand as the clear favourite for a wider, but
demanding clientele with special emphasis on becoming the preferred
premium choice for the youthful consumer. This segment offers a high
potential in terms of market size and also presents a tougher challenge to
us in terms of providing satisfaction. DIGJAM's superior product quality
is at par with global standards and many of the world's best readymade
brands use fabrics produced by us. A major proportion of our output is
exported to USA, Europe, Middle East and Far East. This bodes well for
our future as our pre-eminent position as one of the largest manufacturer
of textiles from India.
Company’s marketing thrust will over time impact all facets of the
brand's interface with consumers, including new product introductions,
consumer promotions and the rich retail experience. It must be noted
that the DIGJAM brand has been ranked at no. 4 among the top Apparel
brands of our country, in a study conducted by the prestigious Economic
Times newspaper of the Times of India group. Apparel category
comprised of all the top Fabric brands as well as the Readymade
Garment brands available in the country. This particular study at the
consumer level at a national level was conducted to find out ‘India's
Most Trusted Brands.'
DIGJAM products and their ranges are available at its exclusive
showrooms and over 300 other retail outlets across the country.
Board of Directors
S. K. Birla
Chairman of the Board
Sidharth Birla
Vice Chairman of the Board
C. L. Rathi
Managing Director
R. K. Choudhury
Director
Sujit Gulati IAS

Director
Shri A.C. Mukherji

Director
Shri G.Goswami
Director
Smt. Gauri Kumar
Director
Shri.G Momen
Director
GENERAL INFORMATION
1 Name of the Firm DIGJAM LTD.
2 Brand name DIGJAM
3 Years of Establishment 60 years
4 Form of Organization Public limited company
5 Location of unit DIGJAM LTD.,

Aerodrome road, Jamnagar,
361 006 (India)
6 Tel. No. +91 (0288) 2712972/73
7 Fax No. +91 (0288) 2712991
8 E-mail mills@digjam.co.in.
9 Web site www.Digjam.co.in.
10 Corporate Office 801, Bhikhaji Cama Bhavan, New

Delhi-110066
11 Promoter S.K. Birla
12 Certified ISO 9001
13 Auditor Khimji Kunvarji & Co.,
(C.A), Mumbai
14 Bankers UCO Bank
Bank of India
Bank of America
Bank of Baroda
Punjab National Bank
State Bank of Saurashtra
Standard Chartered Bank
Union Bank of India
State Bank of India
15 Clients • Aditya Birla Nuvo
• Airport Authority of India
• Alcock Ashdown (Gujarat) Ltd.
• Arvind Brands
• Arvind Clothing Ltd.
• Assam Rifles
• Banaras Hindu University
• Bharat Heavy Electricals Ltd. (BHEL)
• Bharat Petroleum Corpn. Ltd
• Birla Institute of Technology
• Bombay Hospital
• Castrol (India) Ltd.
• Gujarat Alkalies & Chemicals Ltd.
• Gujarat Industrial Power Co. Ltd.
• Gujarat Narmada Valley Fertilizer
Corpn.
• Gujarat State Fertilizer Corporation
• Hindustan Motors Ltd.
• Hindustan Petroleum Corp. Ltd.
• ICICI Ltd.
• INDAL
• Indian Air Force
• Indian Aluminum Co. Ltd.
• Indian Farmers Fertilizers Co-Op Ltd.
• Indian Oil Corporation (Gujarat
Refinery)
• ITC Ltd.
• ICFAI Business School, Ahmedabad
• Mohan Clothing Co.
• M. S. Patel Institute of Management,
M. S. University
• Mysore Cement Ltd.
• NCL
• Naval H Q.
• Ordinance Clothing Company
• Reserve Bank of India
• SAIL
• Saurashtra Chemicals
• Shoppers' Stop Ltd.
• Sports & Leisure Apparels Ltd.
• Taj Trade Transport Co. Ltd.
IBMR-IBS,Bangalore • Tamil Nadu Police Page 19
• Tata Industries Ltd.
• Tata Timken Ltd.
Mission and Vision
Mission
To be an enterprise acclaimed for its products & services
among peers and customers alike, by having responsible
workforce
& through best available technology.
Vision
To be the clear favorite & premium contender in our
principal market.
Organizational Chart
GENERAL MANAGER
Finance & Personal Production Marketing

Accounts Department Department Department
Department
Finance
Finance Personnel
Personnel Production Marketing
manager
manager manager
manager manager manager
Sales
Accountant Assistant Production Manager
Engineer
Supervisor
Peon Peon Mechanical &
Electrical engineer
Salesman
Worker
Peon
Achievements
Digjam is No.1 Because :-

1) Using the best technology and machines available, Digjam has achieved
the ISO 9001 international quality Certification.
2) Impressive capability : The present production capacity is over 5 million
meters per annum
3) Exporting nearly 35% if it’s total production. Digjam textiles are now in
use in the U.S.., Canada, U. K., Europe, Middle East Far East, Japan &
Australia.
4) For four consecutive years, DIGJAM Limited has received the highest
Exporter Award, in the woolen worsted category, from the export
Promotion Council, a Govt. of India Undertaking.
5) Digjam is a Unit of the trusted Birla Group of Industries with a world-
wide presence and strong reputation.
6) The first and only worsted mill in India to be awarded the status of
"ACCREDITED MILL" from the internationally renowned DuPont.
7) Woolmark & Wool blend mark license from International Wool secretariat.
Digjam has been awarded the status of "ACCREDITED MILL" from the
internationally renowned DuPont and is now a part of the elite LYCRA®
ASSURED Network, which is the world's leading supply chain for innovative,
quality stretch fabrics.
Certificate of recognition from EXPORT HOUSE of INDIA.
FUTURE PLANS
The global trend in textiles is shifting to Ready to wear (RTW). Birla VXL plan to
gear up ourselves for this with the launching of an exclusive range of RTW.
The RTW trend will be available across India through a chain of selected
showrooms, run by franchisees and dealers.
Current status of the Company
DIGJAM is fully integrated worsted plant equipped with the state of art and
machinery. The quality system being followed id accredited for ISO 9001 and wool mark
certification. It has the credit of being the largest exporter of worsted fabrics from century for
consecutives 4 years with the sales turnover of Rs.170 cores.
In the present situation the productionof the company is 20000 meters per day of
high quality worsted fabrics throughout the world under the brand name of DIGJAM. Company is
regularly participating in international fairs being held in Germany, Italy and Hong Kong because
their products are of international and also exports internationally.
Company’s marketing thrust will over time impact all facets of the brand's interface
with consumers, including new product introductions, consumer promotions and the rich retail
experience. It must be noted that the DIGJAM brand has been ranked at no. 4 among the top
Apparel brands of our country, in a study conducted by the prestigious Economic Times newspaper
of the Times of India group. Apparel category comprised of all the top Fabric brands as well as the
Readymade Garment brands available in the country. This particular study at the consumer level at
a national level was conducted to find out ‘India's Most Trusted Brands.
DIGJAM products and their ranges are available at its exclusive showrooms
and over 3000 other retail outlets across the country.
The company is one of the showpieces of woolen textile industry which objective is
keep abreast with the internationally made technology, sophisticated machines and pureness.
Moreover the motto of DIGJAM LTD is “Fabric for that great suit” and “Dressing the world”.
Competitors
In this global and technical era we hardly find any sector without competitors.
Competition is at the center of any organizations growth. It is a competition which
encourages the owner to improve their product more than the competitors.
There is a well known term “core competency” means to do or to perform
better than competitors not only in terms of product but also in its packaging, marketing
etc. DIGJAM believes in this concept that provide always better than the competitors.
The woolen/worsted fabric industry in India is dominated by a few major
player viz. RAYMOND (Raymond ltd.), OCM (Birla VXL Ltd.), KUMAR’S (Reid &
Taylor) and others like SIYARAM’S, MAYUR SUITINGS etc. But the major competitor
of DIGJAM is RAYMOND; that cover most of market in textile industries in India. They
have better resources then DIGJAM and they is better performer in the market. The
following shows the current market positions.
Percentage
Raym ond
Digjam
Reid & Taylor
OCM
Siyaram 's
Raymond: With over 60% market share in India, Raymond Ltd. is today the largest
integrated manufacturer of worsted fabric in the world. With a capacity of 35 million
meters in wool & wool-blended fabrics, Raymond commands over 60% market share in
worsted suiting in India and ranks amongst the first three fully integrated manufacturers
of worsted suiting in the world.
Reid & Taylor: Reid & Taylor (India) Ltd., is a subsidiary of SKNL. Synonymous with
British tradition, Reid & Taylor has been styling the world's elite for over 170 years. It
all began in the 1830's with Alexander Reid, an enterprising Scottish gentleman,
embarking on a journey to make his vision a reality. Using locally available Cheviot
wool he created Cheviot cloth that soon caught on the fancy of the landed gentry. As
the clientele and reputation grew, he was joined by financer Joseph Taylor. Thus, began
the enduring partnership of creating finest cloths in the world, which today is better
known as Reid & Taylor. Reid & Taylor continues the journey to create the finest fabric
passionately and has thus carved out a distinguished name for itself in the industry.
OCM: OCM began its illustrious pursuit over 80 years ago, with the manufacture of
handmade carpets and carpet yarn and was gradually transformed to worsted fabric
manufacturing. One of the leading worsted mills with an annual capacity of 8.4
million meters, OCM utilizes the most modern equipment to produce some of the
finest technological innovations that the textile industry has to offer.
Siyaram’s: Siyaram’s Silk Mills Limited is the flagship company of Siyaram’s Poddar
Group and amongst the largest manufacturer of fashion fabrics for Suiting, Shirting’s
& Trousers in India having an annual output of 30 million meters. Siyaram’s is the
well established leader in the fashion fabric industry that has stayed contemporary
with its vision well focused on the future. Siyaram's is always the first to introduce the
latest fashion trends and concepts – specializing in futuristic weaves, designs and
colors.
ORGANISATIONAL STUDY
METHODOLOGY
 The basic needs of any research are data and method of collecting it. Data is an
information on the basis of which inference are drawn, therefore, data become
a very important and vital factor in research study. The main purpose behind
framing a methodology is to desirable the research procedure.
 COLLECTION OF DATA:
DATA SOURCE:
 The various sources of information can be broadly divided into two categories.
Primary source
 Secondary source
 Primary source:
 Sources from where first hand information is gathered directly are called
PRIMARY DATA. In case of the above study primary source of collecting

data was provided by the company and by interacting with employees.
 Secondary Source:
 The source of information, already gathered for some other purpose from other
sources such data are called secondary data. These data can be available from
different magazines, journals and company profiles.
So, with regards to my study to collect the secondary data I went through the
company intranet, magazines, internet ,E-Books & news papers.
MARKETING
DEPARTMENT
Introduction
DIGJAM is established brand in the Indian textile industry. It enjoys goodwill

amongst the Indian consumer because it has provided the Indian Consumer with good
quality fabrics for the last 56 years. Sustaining a good quality for such a long period is
in itself a commendable task and this is the reason for the good will amongst the
Indian Customers. This is only because of good marketing done by DIGJAM.
Marketing is an integrated communications-based process through which

individuals and communities discover that existing and newly-identified needs and wants
may be satisfied by the products and services of others.
Marketing is defined by the American Marketing Association as the

activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large. The term developed from the original meaning which referred literally to going
to market, as in shopping, or going to a market to buy or sell goods or services.
Markets consist of all the potential consumers sharing the particular

needs or wants might be willing and able to engage in the exchange of satisfy their
needs and wants. The concept of market brings us full circle to the concept of
marketing. Marketing means working with the market to actualize potential for the
purpose of exchanging human needs and wants.
The Chartered Institute of Marketing, which is the world's largest

marketing body, defines marketing as "The management process responsible for
identifying, anticipating and satisfying customer requirements profitably."
Organization Structure
Vice- President
General Manager
Dy. General Manager
Senior Manager (4 zone)

(East, West, South, North)
Assistant Manager
Senior Officer
Officer
Senior Assistant
Dy. Assistant
Clerk
Product Planning
A product is a set of tangible, physical attributes such as material, size,
color, design, features etc. assembled in an identifiable firm.
“Product Planning determines the characteristics of products, best
meetings & consumers numerous desires, characteristics into the
products.” According to Mason & Rath,”The planning, direction control
of all stages in the life of a product from the time of its removal, from
the company’s line of products is known as product planning.”
The product planning is systematic decision making relating to all aspect
of the development & management of a firm’s product including
branding, Packaging, Labelling and product mix decision.
Product planning of DIGJAM is divided in major two booking cycles in
a year.
⇒ Summer booking which is during period of December to June &
booking on December.
⇒ Winter booking which duration period is July to December &
booking on June.
Booking cycles is based on 45 to 90 days. Company also arrange trip for
booking persons. In past DIGJAM have offered many trips for booking
persons like “Fun under the Sun”, “Thailand Ghumo”, etc. the company
collect the order on the basic of sample shade. Moreover they also
collect the order from.
⇒ Ready made garment convertors
⇒ Defence institutions like Army, Air force & Navy.
⇒ Police Department
⇒ Hospitals & Hotels
⇒ Madura Garments
⇒ Black Berry
⇒ Ritu Bery
⇒ Apollo
⇒ GIL
⇒ GNFC
⇒ GSFC
⇒ Corporate gifting with special packaging
⇒ School uniforms
⇒ Uniform of top executives
Product Decision
“A product is anything that can be offered to a market to

satisfy a want or need”. Product is the bundle of benefits that consumer gets. A
number of decisions need to be taken regarding the product like name, design, quality,
size, features, services, brand name, packaging, warranty and returns etc.
• Product Mix:-
The company’s product mix was skewed through ‘economy.’ Segment which
impacted the margins significantly. As part of its strategy the company processed
to re-orient its product mix to create more standard and premium segment thereby
increasing the overall margins. A product mix is the set of all products and items
that a particular sellers offer to sell.
 Product Width: The width of a product mix refers to how many different product
lines the company carries.
 Product Length: The length of a product mix refers to the total number of items in
the mix.
 Product Depth: The depth of a product mix refers to how many varieties are
offered to each product in line.
 Consistency: The consistency of a product mix refers to how closely related the
various product lines in end use, production requirements, distribution, channel or
some other way.
In DIGJAM pure wool qualities and polyester when they both are mixes the create
polywool qualities.
Polyester- Petroleum fabric
Wool- Natural fabric obtain from skin of sheep.
Product Life Cycle:-

The concept of product life cycle is derived from the fact that a product sales
volume and sales revenue follow the typically pattern of 4 phases of cycle. This
life cycle are arise in every type of product duration of each phase stage may very
widely with different product. Most product life cycle curves are portrayed as bell
shaped. The 4 stages can be classified as under.
 Introduction: A period of slow sales growth as the product is introduced in the
market profit are non existent in the stage because heavy expenses incurred with
product introduction.
 Growth: A period of rapid market acceptance and substantial profit improvement.
 Maturity: A period of a slow down in sales growth because the product has
achieved acceptance by most potential buyers.
 Decline: The period when sales show down ward draft and profit erades.
The product of DIGJAM is now on Maturity stage the product has achieved
acceptance by most potential buyers and profit decline because of increased
competiton and high cost of raw material.
PRODUCT LIFE CYCLE CONCEPT CAN BE USED TO ANALYZE

1. Product categories
2. Product forms
3. Product follow
4. Branded products
There was a time when DIGJAM had faced all the stage of the product life
cycle. DIGJAM is 60 year old company during this long period DIGJAM had
enjoyed the privilege of growth and maturity level. Nearly 15 – 20 years back
DIGJAM was in growth stage then it acquired maturity stage, 5 – 7 years it
was in decline stage but now again with very good management skill and by
bring variety in its product DIGJAM has again started a new growth.
Although company is currently running in loss it is introducing new product
different blend and sheds to compete in this highly competitive market.
INTRODUCTION GROWTH MATURITY DECLINE
New Product Development

New product is a process, which is designed to develop, test and consider the viability
of products that are new to the market in order to ensure the growth or survival of the
organization. CHANGE IS NECESSITY OF LIFE like wise company also has to

follow this rule. In this cut thought competitive world there is much competition and
to survive in the market change is necessary. So after some period and by market
research company should change their product or give something new to customer.
There is one process of New Product Development, which are as follow:
IDEA GENERATION
IDEA SEREENING
CONCEPT DEVELOPMENT &

IBMR-IBS,BangaloreTESTING Page 39
MARRKETING STRATEGY
DEVELOPMEENT
BUSINESS ANALYSIS
TEST MARKETING
COMMERCIALIZATION
Mainly DIGJAM produce following products but from these they have
produced many new products also:
1) All wool i.e.100% wool
2) Wool Rich i.e. 60% wool and 40% polyester
3) Poly Wool i.e. they are having three ratios in this i.e.
Polyester Wool
70 % 30 %
80 % 20 %
55 % 45 %
4) Poly Viscose i.e. they are having three ratios in this:
Polyester Wool
65 % 35 %
67 % 33 %
80 % 20 %
New Product Categories:
1.) Poly: Wool: Lycra

2.) Poly: Wool: Linen
3.) Poly: Viscose: Linen
4.) Poly: Wool: Cotton
5.) Wool: Cashmere 95:5, 100% Linen
6.) Poly: Wool: Bamboo
Branding & Packaging
A. Branding :-
Perhaps the most distinctive skill of professional marketer is their
ability to create maintains and protect brand. Branding is the art and
commerce of marketing. The American Marketing Association defines a
brand as a name, terms, sign, symbol or design or a combination of them
intended to identify goods or services of one seller and to differentiate
them from those of competitors.
A brand is a complex symbol that can convey up to 6 levels of meaning .
⇒ Attributes
⇒ Benefits
⇒ Values
⇒ Culture
⇒ Personality
⇒ User
In DIGJAM the branding on the cloth a big label is stick on that.
⇒ Name of mill has been written
⇒ Details of the product i.e. of which fabric the cloth has made
whether it should be washed with detergent at home or dry clean.
It includes all the information.
B. Packaging:-
DIGJAM define packaging as all the activities of designing and
producing the container for a product. The container called as a package
and it is growing use as a marketing tool.
⇒ Self service
⇒ Consumer affluence
⇒ Company an brand image
⇒ Innovation opportunity
In DIGJAM the packing of the final products depends on the
requirement of the customer. In case of the export the fabric is being
pack in the role from with a plastic cover property tag. In case of
Container load the material is being pack and loaded in the container
with the proper fumigation. In case of local material is being pack in
boxes and balers. In case of finished products the product is being pack
in different ways according to its price range. They were velvet bag,
leather bag, plastic bag etc.
TYPES OF PACKING
DIGJAM has five types of packing at a different product and at a different price. This all
the type is as follow
Packing A
In packing A, a lather briefcase is given with a product promotion is very easy and
also this briefcase is useful in your real life, as a office document and also you can
use this bag at office level.
Packing B
In the packing B, a lather travel begs is given with product and in this bag you can
use at different place. At an official level, at a sales man level and in real life also.
Packing C
Packing C in the product give with a velvet bag life suitcase type this types of bag
you can use anywhere and of any purpose and this bag is very chip as compare to
the lather bag. And wait is lite and attractive.
Packing D
In the packing D a paper bag which can be disposable also. This bag is very
attractive and its wait is very lite and there are no government restrictions on this
bag.
Price Decision
In general terms price is a component of an exchange or transaction that

takes place between two parties and refers to what must be given up by one party (i.e.,
buyer) in order to obtain something offered by another party (i.e., seller). In simple
terms- the amount of money charged for the product or a service or some of values that
consumer exchanges for the benefits of having or using the product or services.
Pricing is a strategic element in marketing mix. A product cannot enter in
the market without a price tag. Pricing policies and strategies are guidelines and
framework within which management of a company administrates prices so as to match
them with the market needs. Price policies are general guidelines to make future
decision.
In DIGJAM prices are selected on the basis of cost, market and
competitors. They select price range in the conference, which is held twice in a year. In
June and December DIGJAM has different range of products available in the market
from the price range of Rs.217 to Rs.5580 per meter.
The two factors that affect the Price Decisions are as follows:
⇒ Internal factors:
• Marketing Objectives:
1) Survival
2) Current profit maximization
3) Market share leadership
4) Product quality leadership
• Marketing Mix Strategy:
1) Promotion
2) Price
3) Product
4) Place
• Target Costing:
1) Fixed Cost
2) Variable Cost
3) Total Cost
⇒ External Factors:
• The market and demand
• Price Elasticity
• Competitors, cost price and offers
Thus these are the factors on the basis of which DIGJAM takes decision on
pricing.
Promotion Decision
Promotion Mix refers to a set of efforts undertaken by the company to
stimulate the demand of product. Promotion Mix includes all the things i.e.
advertisement, publicity, sales promotion and publicity.
The roles of Promotion Mix are as follows:

1.) To promote anew product.
2.) To face with competitors.
3.) To inform necessary change made by the company.
4.) To build a bridge between consumer and marketers.
Promotion
Mix
Advertisement
Sales Personal
Promotion Selling
This is the stage where which product is to be produced is to be decided.

The place where to launch the product is also fixed. Now how to launch it in a best
possible manner and it also observed that each and every customer get maximum
information and knowledge about the benefits, features, uses etc. of the product.
The promotion mix strategy emphasizes upon marketing of the product
through marketing channels in the target market. The nature of production and financial
condition of the company affects a lot in deciding about promotion ix of any product. In
short promotion mix is one kind of tool for building favorable images of marketers and
their products. It is an effective and continuous flow of information about the product b/w
the firm and consumer.
Sales Promotion
DIGJAM gives sales promotion in two types in which lot of dealers scheme
and consumer scheme are included. In both types they give discount coupon (about 15%
discount) of frequent year and all the discount coupons are included in lucky draw and
trip is given to lucky draw winner. Such activity is done for both winter and summer
Carnival. They also give award for top five dealers, top five retailers and top five
showrooms.
Major Sales Promotion tools for SIGJAM are as follows:

For Consumer:
1) Samples
2) Coupons
3) Premium
4) Prizes
5) Discounts
For Traders:
1) Price Off
2) Allowance
For Business:
1) Trade shows
2) Fashion Shows
3) Specialty adds.
DIGJAM is also sending Punchang and Calendar to their dealers to know
when marriage and other occasion period comes, when there will be more demand for
that functions, so that dealer can make stock for it and sale at right time.
Advertisement
Advertising is any paid form of non-personal presentation and promotion of

ideas, goods or services by an identified sponsor. As we know that modern marketing
cannot service without advertising. It is one of the main forms of mass selling. DIGJAM
believes in planned and controlled ads.
The department carries out the function of communicating the brand name,
value and image to the consumer. It ensures that the premium brand of DIGJAM brand is
upheld in the market place. For this, it decides on advertising to be under taken by the
company and supervises the functioning of the advertising agency.
DIGJAM’s main competitor is RAYMOND. RAYMOND at present ranks

1st in the market as far as sales and advertisement is concerned. The company targets it ad
on the younger and most successful persons. The life style, emotion and humor are the
key contains of Advertisement is limited and therefore executives have to check about the
various types of medias and their features like Cost of media and High Consumer reach.
Currently, DIGJAM is going through a bad phase and the marketing team
has to look at avenues of advertisement that does not cost much and bring in the desired
customer awareness. In this regard, the team also looks to unconventional/non-regular
modes of advertising.
In DIGJAM advertising is done by mainly three ways:
1.) International Campaign
2.) National Campaign
3.) Local publicity.
They did international campaign through participating in international fairs

being held in Germany, Italy and Hong Kong. Using national campaign they give
advertising across the country, in the entire world through television, newspaper,
magazines etc. they give local publicity through hoarding, posters, pamphlets, neon
lights, exhibition, fashion shows, gift banners, cinema slides, carry bags, point of
purchase etc. they also give advertisement through internet. They also have advertisement
in the magazines like Namashkar, Exotica, Go, Time-Out (which is published mainly in
Delhi, Mumbai and Bengaluru) and Go (which is an international business magazine).
They advertised also through films like “Kabhie Khushi Kabhie Gum.”
Mr. India World 2008 Finale at Intercontinental The Grand, Mumbai,

India on 9th February 2008 India's most desirable man - ready to conquer the world.
The 23 finalists totally charmed the audience with their walk, wit and style in dazzling
and sensational creations by DIGJAM.
Sales Policy
Payment Terms
⇒ 7 days grace period without interest from the date of presentation.

⇒ In case payment is not made with in 7 days from the date of
presentation, bank will charge interest @ 15% from the 8th day to the 45th day.
If not paid within 45 days interest @ 18% will be charged from 8 th till the date
of payment.
⇒ Detention period will be 45 days from date of presentation and
thereafter documents are to be returned by bank.
⇒ Interest @ 25% pa from the date of invoice on returned.
Dearness Allowance
FOI days from the date of LR will be allowed as per
Turn over net value FOI days
Upto rs 10 lacs 30
Rs 10.01 lacs-50 lacs 45
Rs 50.01lacs & above 60
After expiry of FOI period as mention above, interest @ 15% pa will be

charged for the further period of 60 days. In case of non-payment upto
60 days penal interest @ 18% will charge after expiry of FOI period till
the date of payment.
In case bank returns the documents interest @ 26% will be charged from
the date of invoice after allowing FOI days only as per above transit
period will not be allowed.
Direct Document Scheme Against Security Deposit(DDS)

⇒ Party is supposed to 10% of last year’s turnover subject to a
minimum of Rs 25000.
⇒ Date of draft/ pay in slip will be considered as date of payment.
⇒ In case advance payment ie payment received before date if LR
interest @ 18% will be allowed for FOI period for which payment
has been made early
⇒ Party will have to give post dated cheque at the time of delivery of
the documents and the same should be forwarded to the DIGJAM.
⇒ Cheques payable at places where there is branch of CO-
OPERATION bank will only be accepted. For other places payment
should be made by drafts.
Turn over Incentives for Dealers

Sales(lacs) Incentives
1.51 -3.0 1%
3.01-6.0 2%
6.01-10 2.5%
10.01-15 3%
15.01-25 3.5%
25.01-50 4%
50.01-75 4.5%
75.01-100 5%
100.01-200 5.5%
200.01-300 6%
300 & above 7%
Export
⇒ Export sales consist of nearly 60% out of total sales turnover.
⇒ In export most of the dealing is done with European countries.
⇒ DIGJAM has only one office outside India ie in London

⇒ DIGJAM is now planning to give London office to an agent.
⇒ Maximum export is done to Italy nearly 40%, next is Germany with
nearly 20%.
⇒ Most of dealing is done through LC
⇒ Company can rebate 80%-90% of total LC.
⇒ A general agreement made is regarding transfer of ownership.
Publicity
⇒Carry bags are supplied on request of dealers as per mill’s
design.
⇒Gift article are to be standardized by mills only and to be
supplied on request of dealer.
⇒Dealer and sales representative share is required at the time of
placing of order.
Above is supplied directly to the dealer by DIGJAM’s empowered

sources. All above will be restricted to 1% of total turnover.
Or all above will be restricted to 2% of net sales.For hording 50% of

amount is paid by DIGJAM and remaining 50% is to be paid by dealer .
Personal Selling
Personal selling is personal communication where a salesperson talks person to person
with a prospect. It aims at individuals. It is not mass communication like advertising
but it is an individual communication. Because of mass production and consumption it
is not
possible to contact each consumer individually.Therefore for a modern market

advertising is must.
Sales person are in a positon to tailor their message according to their unique
characteristics of each prospect & according to the mental capability to grasp the
message of buyers.
DIGJAM does personal selling through Digjam Retail Showroom
- Multi Branch Outlets(MBO)
- Whole sellers
Channel Management
Physical distribution process in getting the right goods to right time for the lowest
cost. It moving the product from the place of production to the place of consumption.
“Marketing channels are the path that products flow on their way from producer to the
consumer or industrial user.” - REACHMAN
In DIGJAM they uses mainly three channels of distribution
- Exclusive Showroom Networks
- General Retailer
- Whole sellers
In case of exclusive showroom network they have more than 50 exclusive showrooms
with franchise agreement. Mainly in Gujarat, Maharashtra, Andhrapradesh etc. In case
of general retailer, they have more than 5000 general retailers across the country.
Whole
sellers purchase in bulk quantity and local dealer collect the products through whole
sellers.
DIGJAM has also adopted following channels to supply the product.
- Sales representatives on commission basis in each state.
- Free staff facility to sales representatives taking orders from

customers.
Market Segmentation
Market segmentation is the most popular technique used to reach the market
with service package. Markets generally are hydrogenous in nature with varied
culture,, Life styles & economic background. Market segmentation is dividing the
market of hydrogenous in nature into segments.
DIGJAM is producing all the level of the life living style fabric. But each and
every company to consantrate a particular one segment so DIGJAM’s target
consumer is that
Customer age: 25 To 40 Years Old.
Monthly income: Rs. 6000 to 8000
And
Young adult.
HRM & PERSONNEL
MANAGEMENT
Introduction
In general form managing human force or personnel to get the desired
work done is called HRM or PERSONEL MANAGEMENT.
Personnel Management and Human Resource Management is more or
less the same thing. In fact Personnel Management is one of the core
components of Human Resource Management. Some experts assert that
there is no difference between human resources and personnel
management . They state that the two terms can be used interchangeably,
with no difference in meaning. In fact, the terms are often used
interchangeably. In fact, the terms are often used interchangeably in
help-wanted ads and job descriptions.
For those who recognize a difference between personnel management
and human resources, the difference can be described as philosophical.
Personnel management is more administrative in nature, dealing with
payroll , complying with employment law , and handling related tasks.
Human resources, on the other hand, are responsible for managing a
workforce as one of the primary resources that contributes to the success
of an organization.
Personnel management can include administrative tasks that are both
traditional and routine. It can be described as reactive, providing a
response to demands and concerns as they are presented. By contrast,
human resources involve ongoing strategies to manage and develop an
organization's workforce. It is proactive, as it involves the continuous
development of functions and policies for the purposes of improving a
company’s workforce.
Personnel Management deals with the selection, recruitment, job
description and work load of an employee. On the other hand, Human
Resource Management looks after the broader concept of HR. It deals
with Personnel Management as well as Organizational Management,
Personnel administration, Manpower management, Industrial
Management, Organizational Development and also Personnel training
and development.
HR Policy of the Company
⇒ Employees satisfaction creates an environment where people enjoy
there work and realize their full potential; find opportunity to
grow, focus their attention and satisfying the customer and the
organization.
⇒ Consider quality consciousness as the key requirement for the
product and services.
⇒ Consider employees as a valuable asset.
⇒ Promote commitment and creativity for the better performance.
⇒ Institute fair and equitable system to reward employee according
to their contribution.
⇒ Build enough flexibility to encourage and accommodate innovative
thoughts.
⇒ Believe in following well document standard, procedure and
system in the day to day working
⇒ Encourage teamwork along with individual excellence; develop a
sense of belonging amongst employee by carrying attitude .
HR Policy Statement
Coming together is beginning…….
Keeping together is progress…….
Working together is success…….
Human Resource Planning
The human resource planning is a key to the success of the organization, if it is done
carefully cautionary and based on real and factual data available. It is a process of
determing how an organization should move from its current manpower position to its
desired manpower position.
HRP is the process of acquiring and utilizing the human resource in organization. In
simple terms, Human resource planning is the term used to describe how companies
ensure that their staffs are the right staff to do the jobs. With the help of HRP
management strives to have the right number, the right kind of people at the right place
at
the right time to do things which results in both the organization and individual
receiving the maximum long term benefits. It is a continuous process.
In DIGJAM human resource planning is used in following situations:
1.) HRP is used in urgent production, routine production as well as in
special situation.
2.) HRP is motivation for better productivity, better individual
performance and output bonus as per requirement.
Recruitment & Selection
Recruitment has been regarded as the most important function of the
department because unless the right type of the people are hired, even
the best plans, organization and control system would not do much good.
Recruitment is a two way street; it takes a recruiter and a recruitee. Just
as the recruiter has a choice whom to recruit and whom not, so also
prospective employee has to make the decision if should apply for that
organization’s job. The individual makes this decision usually on three
basic, the objective factor, critical contact and subjective factor.
Recruitment procedure of DIGJAM consist of three segments
⇒ Recruitment of workers
⇒ Recruitment of executives and managerial staff
⇒ Recruitment of technical personnel
Sources of Recruitment :
In DIGJAM there are two sources.
⇒ Internal sources
⇒ External sources
1)Internal Sources :-
Internal sources are the most obvious sources. These includes personnel
already on the pay roll of the organization i.e. its present work force
whenever any vacancy some body from within the organization is
upgraded, transferred, promoted or sometimes demoted. These sources
also include personnel who were once on pay roll of the company but
who plan to return or lay off.
In DIGJAM the internal recruitment is done by the reference of internal
members of the organization. With the help of internal advertisement,
with in the company, company gets enough reference for the
recruitment.
2)External sources:-
Many organizations are the depended on the external sources for the
recruitment like:
 New entrance for the labour force i.e. young, mostly
inexperienced, potential, employees, college students.
 The unemployed with wide range of skill and ability.
 Experienced persons such as mechanics, account and welders.
In order to sustain the existence of the organization in the
competitive business world the effective and resultant manpower is of
utmost
importance and therefore a sound recruitment and placement policy
enriches the foundation for the employee morale and healthy
industrial relation and hence the right person at right time and
congenial growth environment within the organization.
The recruiting procedure of DIGJAM consists of three segments:
Training & Development
As in other organization in DIGJAM also training and development is
given good consideration. HR department identifies the requirement of
the training in all employees with the department heads. Every year in
MARCH, after having training rate identified the HR department with
the
approval of the top level management prepares a training calendar and
conducts the training programmes.
Depending upon the level and requirement, training is on safety,
housekeeping, quality improvement, skill improvement, multi skilling,
discipline behavior, attitude, motivation, awareness, roles and
responsibility etc. In DIGJAM employees are developed through
demonstration, seminars and discussion process also.
There are two type of training:-
1. on the job training
2. off the job training
On the job training:-
DIGJAM provides on the training to the workers, who are working on
the machinery. The head of the department provides the specific training
to the workers and also solves the problems which are faced by the
workers. This method is economically, as the supervisor provides the
training. No out side person is require to impact the training. Regular
work of the company is not interrupted as training is provided with in
the premises of the company. This method makes the clear, the practical
and the theoretical aspects of the job.
Generally in DIGJAM this type of training is given to the new employee
to make them aware of the machinery so as they can use the machinery
with out any damage to machinery and them selves .
Off the job training:-=
DIGJAM also provides off the job training to the workers and the
employees. In that they provide classroom training in which they invite
some engineers to train the workers and also some professionals are
called for motivational training.
Induction
Induction mainly implies familiar introduction of new employees with the
work, follow workers, work culture, superiors and organization.
DIGJAM has systematic induction programme, which helps to make
employees feel at home and reduces the initial nervousness on his part. The main
objectives of an induction program of DIGJAM are:
1.) To develop a feeling of belongings and loyalty to the organization.
2.) To give all the necessary information to employee about location of
workrooms, canteen and other facilities, leave rules, rest periods, etc.
3.) To build up the new employee’s confidence in him in lathe new
organization so that he may become an efficient employer.
Promotions
“A promotion is the transfer of an employee to a job which Pays
more money or on that carries some preferred status.”
The term promotion is refer to the advantage of an employee Can be said
to have been promoted where he performs his job, which involves higher
Responsibility, requires a great degree of skills, commands more
prestige & a higher status & carries higher rate of pay.
In DIGJAM being management reviews on the performance of every
individual on the yearly basis. The performance is to be given on the
merit basic. There are no fix promotion schemes. In demotion is also
followed. This step is also been taken for some worker who do not
perform his job well, as required.
Performance Appraisal
Performance is not a matter of chance. It is not a thing to be waited for;
it’s a thing to be achieved.
Performance appraisal is the state where the management fills out how
effective it has been at hiring and placing employee he performs. A
performance appraisal is a process of evaluating an employee’s
performance of a job in terms of its requirement. By Heyel individually
and collectively, it is a part of all the other starting process viz.
recruitment, selection, placement and induction.
In DIGJAM the performance appraisal in a unit for managerial level, a
staff level & workers level is being received on yearly basis. This is
being arrived out normally in the month of February and March. The
performance appraisal committee consists of department head and the
senior management head personnel. The annual increments are decided
on the basis of individual performance during the year.
The appraisal is been carried out on following points:
⇒ Achievements
⇒ Behaviour
⇒ Attendance
⇒ Skill
⇒ Knowledge
Wages & Salary

The wages is remuneration paid for the services of the labours. In
production wages usually refers to the contribution to production, while
salary normally refers to the clerical administration and professional
employees. A person who gets the wages is called blue collar worker.
On the other hand salary normally refers to the monthly rates paid to the
clerical administration and professional employees or white collar
workers. In DIGJAM the time office department decides the wages of
the workers. There is attendance system and after totalling the
attendances of the workers, they are paying the wages to the workers at
the 10th date of the month. If a worker needs money earlier then they
are distributing generally advance on 25th of the month. The maximum
general advance will be Rupees 450 each.
In case of staff category employees gets consolidated salary on monthly
calculated basic. The pay scale starts from Rupees 7000 gross salary.
Benefit and welfare
Employee benefits are available to all employees based on the
membership in the organisation. The purpose of such benefit and
services is to retain people in the organisation and not to stimulate them
to grater effort and high performance.
Various benefits are provided by DIGJAM to their workers and
employees.
⇒ Employees at various levels are provided with tea at the different
interval of the time.
⇒ Water and sanitary facility to all.
⇒ Canteen facility for workers in the campus of the unit. It contains tea,
coffee, break fast etc. at reasonable rate.
⇒ Medical facilities include ambulance and doctors for workers and
employees for monthly check-up.
⇒ Telephone facility is also provided to employees and above staff.
⇒ In a unit all the employees are connected through LAN and internet
for Senior Executive.
⇒ Provident fund facilities for all workers and employees.
⇒ Vehicle facilities for managerial staff with driver for official purpose
only.
⇒ Petrol allowance to employees for office work.
⇒ Festival advances and bonus to workers on their attendance basic.
⇒ Provide quarters to employees for housing nearer to the unit.
⇒ Parker Garden is provided in front of the house of the employee in
the campus.
⇒ Cable connection for T.V. to the employee at their residence.
⇒ Pension fund and ESI scheme are also provided by the company.
Time keeping system

Time system is very important aspect. Through time keeping System
Company can run smoothly and successfully with boosting profit every
year. Because of time keeping employees and workers can also control.
DIGJAM have time keeping office. The main functions of this
department are as under:
⇒ Attendance
⇒ Wages and salary administration (workers only)
⇒ Leave records
⇒ Gratuity
⇒ Bonus payment
⇒ PF and employee safety insurance
In case of foreman the attendance card is being issued to them which
they have to carry while reporting on the job and submit to the
respective department. Respective department head make the present of
all work man and deliver it to the time office, for making attendance
register. There are three shifts of work man running in the
manufacturing unit.
The timing of the shifts are:
7:00 a.m. to 3:30 p.m.- Morning Shift
3:30 p.m. to 12:00 p.m.- Aftrernoon Shift
12:00 p.m.to 7:00 a.m.- Night Shift
Leave Rules
Leave rules are different for workers and for employees in DIGJAM.
They have also badli workers to use during the absenteeism of
permanent workers.
⇒ Leave rules for workers
o Privilege leave qualified 240 days / 365 days (I.P.L. on
16 Days basic)
o Casual leave 7 days in a year
o Seek leave for permanent workers 7 days a year.
⇒ Leave rules for staff employees
o Privilege leaves 30 days
o Casual leaves 10 days
o Seek leave 10 days
In DIGJAM there is one policy regarding leaves for workers and
employees that is:
⇒ Casual leave can’t be carried forward.
⇒ Seek leave can be carried forward up to three years to it can
encash that leave also.
⇒ Privilege leave can be encash up to three years .
Grievance Management
There is hardly a company or an industrial concern which function
smoothly at all the times. In some companies, the employees have
complaints against the other employees. While on the other hand it is the
employees who have the disputes with employees. Their dispute where
real or imaginary, Valid or invalid, genuine or false.
Beach has defined grievance as “Any dissatisfaction or feeling of
injustice in connection with one employment situation that is brought to
the notice of management.” Accordingly to Juices, “A grievance is any
discontent or dissatisfaction whether expressed or not,, valid or invalid
arising out of anything connected with the company which an employee
thinks or believes or even feels to be unfair or unjust.”
DIGJAM has its own certified standing orders. The Company is having
five labour unions. In case of the unions, representatives of the unions
put the grievance to management. The management mainly solves the
disputes within the framework of the organisation and as per the
provision of industrial disputes act.
⇒ They investigate the problem whether it is genuine or not.
⇒ After confirmation they discuss the matter with workers and listen
their arguments.
⇒ Then they discuss the problem with supervisors of workers & try
to solve the problems.
Trade Union
Trade Unions is on of the association of an employee. Workers are a
flower & trade unions Is a garden. Trade union is an association of
workers which protects & maintains employee’s interest and works foe
employee’s welfare.
There are 1336 employees in the DIGJAM that is there are:

1.) Permanent =751
2.) Badli =260
3.) Sub-Staff =52
4.) Staff =273
For the state of protection of rights they have formed the trade union.
Presently there are five trade unions. These unions are affiliated with the external
trade unions such as:
Woolen Mill Mazdur Sangh affiliated to BMS
Woolen Mill Kamdar Sangh affiliated to AITUC
Woolen Kamdar Mandal
Industrial Relationship
The relationship between employees and employer or trade union is
called Industrial Relation.
Industrial relations deals with the nature of working relationship that
subsists between the two particulars partners in production management
and workers work in a spirit of goodwill and understanding, production
will maximized. On the other hand if the relationship is one of the
function and lack of goodwill, workers will not be at there best.
Production will suffer, and losses will be inevitable. Production, as said
earlier is asocial function and so long as a production unit exists it is to
the interest of all that it functions as its best. But can we assume that
this would happen as a self motivating process.
In DIGJAM there is a better co-operation between all of them and
management also. This has not face any strike problems in few past
years. They always try to motivate their union members and try to the
increase the efficiency of the members in their works.
There is a family type environment of the unit and if any problem occurs
then leader or labor officer solved that problem jointly. All the trade
union helps in the development of the unit.
Social Responsibility
The DIGJAM has not concentrate on building an industrial empire but
also they are also one of the largest philanthropic groups in India. Over
the years, the Birla Group has been involved in recreation and religious
centres, museums, planetariums, art galleries and rural development
programs. They are also a great patron of Indian art and culture.
The Birla Group has contributed extensively to education and research.
The prestigious Birla Institute of Technology at Pilani is recognized as
the premier institute of learning from this institute mote than 1000
student graduates comes out each year. Over 100000 youngsters are
today studying is schools and collages that are run by the Birla Group
all aver the country. Some other responsibility that to be done by
DIGJAM are mentioned as under:
⇒ Build an auditorium at Jamnagar.
⇒ Given a donation in laboratory of Haria School, Jamnagar.
⇒ 1500 families’ requirement is fulfilled by the company.
⇒ Provide food to 1000 people.
⇒ Pay health tax and wealth tax.
⇒ Co-operation with society.
Finance Department
Introduction
Finance is the life blood of the business. Any organization cannot exist
without finance. In order to help the business to produce the product any
other activity finance is required at every stage.
Profit maximization and wealth maximization are the objectives used in
the sense of the decisions criteria of the firm and the policy decisions
involved in it.
All the types of the receipts and payments transactions are recorded in
accounts department. The checking of books of accounts and subsidiary
books auditing are made as under.
1. Daily checking
Cash book
Pass book
2. Weekly checking
Current ledger
Creditors
Money receipts
Bank balance
3. Monthly checking
Staff deposits
Bank deposits
Bills receivable
Bills payable etc
In DIGJAM accounting part of finance is undertaken by Mr. Chandan he
said that daily record of all the bills is maintain and daily updating of
petty cash is done. They are in touch with all the departments of the
company and get their details every morning.
The process goes like this,DIGJAM works for 24 hours round the clock.
now the supervisors working at night will maintain a register with all
require details of that day which would come on Mr. Chandan’s table
next day morning. This is how accounting in DIGJAM is maintained .
Capitalization and capital structure

Capitalization means the total amount of long terms funds at disposal of
the company, whether raised from the equity shares, preference shares,
retained
earning, debentures etc. According to drawing, the term capitalization or
valuation of a capital means includes of the capital stocks and the debts.
There are three kinds of capitalizations:
⇒ Over capitalization
⇒ Under capitalization
⇒ Proper capitalization
DIGJAM is suffering from under capitalization.
Capital structure :-
Capital structure refers to the mix of the sources of the long term of the
finances of the company. Capital, preferences, internal sources,
debentures, and the others are funds of the capitals undertakings may
rise for the establishments of its business.
The work of the manager does not get over by merely arranging for
finances. Liquidity rate, rate of dividents, capacity of raising finances in
future of any company is to be handled by the finance manager.
Capital structure (Rs crore)

PAID
FRO CLASS PAID UP
TO AUTHORIZED ISSUED UP PAID UP
M OF SHARES
YEAR CAPITAL CAPITAL FACE CAPITAL
YEAR SHARE (NOS)
VALUE
Equity 6874165
2008 2009 88.75 68.75 10 68.75
Share 1
Equity 6874165
2007 2008 88.75 68.75 10 68.74
Share 1
Equity 6874165
2006 2007 88.75 68.75 10 68.74
Share 1
Equity 1301429
2005 2006 88.75 13.02 10 13.01
Share 3
Equity 6507146
2004 2005 88.75 65.12 10 65.07
Share 5
Equity 6507146
2003 2004 88.75 65.12 10 65.07
Share 5
Equity 6507146
2002 2002 88.75 65.12 10 65.07
Share 5
Equity 6507146
2001 2001 88.75 65.12 10 65.07
Share 5
Equity 6507146
1999 2000 88.75 65.12 10 65.07
Share 5
Equity 6507146
1998 1999 88.75 65.12 10 65.07
Share 5
From the above table we can see that the capital structure of
DIGJAM which is made up of 68.75 crores of equity capital and 20 crores
of preference share capital. Hence DIGJAM is made up of total 88.75
crores of capital.
It would be difficult for DIGJAM to raise more capital from

market because their financial condition is not good and their share
price is around RS 8.
Sources of Finance
One of the most important considerations of the entrepreneur of the
company in implementing of it a new project is under taken or
diversified and rehabilitation scheme is ascertain the cost of project and
the means of finance.
Sources of finances of DIGJAM limited is as under:
1. Internal
Depreciation
Profit funds
2. External
Banks
Financial institutes
Idbi
Bank of India
Bank of America
Central bank of India
Uco bank
Union bank of India
Ratio Analysis
Profitability ratio
Profitability refers to the ability of the business to earn profit. It shows

the efficiency of the business. These ratio measures the profit earning
capacity of the company.
1) Gross profit ratio = gross profit/ net sales *100
2007-08 2008-09 2009-10

(12 months) (12 months) (12 months)
2187.61 *100 1959.69 *100 5900.65 *100
10802.49 11,104.63 13992.89
= 20.25% = 17.65% = 42.168%
Comment:-
G.p. ratio reveals profit earning capacity of the business with reference
to its sale. Increase in gross profit ratio will mean reduction in cost of
production or direct expenses or sale at reasonably good price &
decrease in the ratio will mean increased cost of production or sales at
lesser price.
In case of DIGJAM, in 2007-08 the g.p. ratio is 20.25% & in 2008-09 it
was 17.65%, so the ratio has decrease. It shows that increased in cost of
production and sales at lesser price. But in 2009-10 this ratio has
increased to 42.168%. As discussed earlier there is increase in sells of
DIGJAM.
2) net profit ratio = net profit/ net sales * 100
2007-08 2008-09 2009-10

(2269.10) *100 (811.21) *100 (1156.24) *100
10802.49 11,104.63 13992.89
= (21%) = (7.3%) = (8.26%)
Comment:-
Net profit ratio shows the operational efficiency as the business.
Decrease in the ratio indicates managerial inefficiency & excessive
selling and distribution expenses. In the same way increase shows better
performance. Increase or decrease in the ratio is determined in
comparison to previous year’s performance.
So, in case of DIGJAM 2007-08 shows negative ratio of 21% while there
is recovery in 2008-09 but still in negative with 7% but 2009-10 again
shows some back steps with 8.26%. On consulting with the financial
executive I came to know DIGJAM is now trying to come out of trap of
loans hence tries to pay maximum loan in an instalment. I think this
could be the reason of ratio increasing compare to previous year; also
there would be increase in selling and administrative expenses.
3) Expenses ratio:
In order to determine & scrutinize the operational efficiency of the

business, every expenditure has to be matched with sales. In case the
expenses ratio is increasing profit ratio will decline and it will mean low
efficiency. The business showed calculated every expense ratio
individually.
Labor to sales turnover ratio = Salary + wages + benefit * 100
Net sales
2007-08 2008-09 2009-10

2045.25 *100 1934.47 *100 1801.99 *100
10802.49 11,104.63 13992-89
= 18.95% = 17.42% =12.87 %
Comment:-
Due to additional provision for retirement benefits in 2007-08, 2008-09
& 2009-10 the expenses has been decreased. From a student of
Prospective it is not good sign as in loss DIGJAM is trying to decrease
the spending on its employee, there number of employee has decrease .
Administration expenses ratio = Administrative Exp. *100
Net sales
2007-08 2008-09 2009-10

547.80 *100 600.28 *100 539.97 *100
10802.49 11,104.63 13992.89
= 5.07% = 5.4% = 3.85%
Comment:-
As we know DIGJAM is making loss but their sales has increase and
they are successful in bringing down their administrative.
Selling expenses ratio = selling expenses *100
Net sales
2007-08 2008-09 2009-10

1,550.35 *100 1,727.08 *100 1909.61*100
10802.49 11,104.63 13992.89
= 14.35% = 15.55% =13.64 %
Comment:-
There is decrease in this ratio because company has done less expense
on advertisement compare to advertisement expense and sells of last
year. DIGJAM has found very good way of advertising is that they have
more commission dealers who in return will try to promote the product.
4) Return on investment (ROI) = pat, & dividend *100
Capital employed
2007-08 2008-09 2009-10

397.55 *100 (271.92) *100 (1135.67) *100
8162.24 7,025.56 8704.71
= 4.87% = (3.87)% = (13.04)%
Comment:-
ROI measures, the operational efficiency and borrowing policy of the
company. It also shows how effectively the capital employed in business
in used. It shows the earning capacity of the net assets of the business.
5) Return on equity =
Net profit after interest, tax, and dividend *100

Equity shareholder’s fund
2007-08 2008-09 2009-10

(2269.10) *100 (811.21) *100 (1156.24) *100
6875.14 6875.79 6875.79
= (33.00 %) = (11.79 %) = (16.81 %)
Comment:-
This ratio refers how effectively equity shareholders funds are utilized.
It measures the operational efficiency of management. Higher ratio is
always in the interest of enterprise, because it proves efficiency of the
management. This ratio helps in the comparison of performance and
decision making regarding declaration of dividend & creation of reserve.
In case of DIGJAM, in 2008, 2009 & 2010 there is loss and there is
negative going.
Turnover ratio
Turnover ratio means ‘sales’, so turnover ratio are related to sales. It is
an accepted contact that sales have direct relationship with the
performance of the business.
Higher sales mean better performance and lesser sales shows in, activity
of the business, poor performance and lesser productivity .
1) capital turnover ratio = net sales
capital employed
2007-08 2008-09 2009-10

10802.49 11,104.63 13992.87
8162.29 7045.56 8704
= 1.32 times = 1.58 times = 1.6 times
Comment:-
It shows how many times capital is turnover into sales. It reflects the
efficiency in the utilization of capital. Higher capital turnover ratio is always
in the interest of enterprises. Excessive capital turnover ratio proves over
trading which is not good.
So, in the case of DIGJAM in 2009-10 has higher capital turnover ratio.
2) working capital turnover ratio = net sales
Working capital
2007-08 2008-09 2009-10

10802.49 *100 11104.63 *100 13992.87 *100
799.19 329.95 3102.31
Comment:-
This ratio is very significant for non-manufacturing concerns where
working capital is more than the fixed assets. It refers the efficiency in
the utilization of working capital.
In the case of DIGJAM we have seen that they are going for more
payment of debt hence decreasing the working capital ratio.
3) stock turnover ratio: cost of goods sold
average stock
2007-08 2008-09 2009-10

8,614.88 11,104.63 13992,87
3,227.13 3,497.11 2960.48
Comment:-
This ratio measures how many times the average stock is sold during the
year.
In the case of DIGJAM in 2009-10 the stock turnover is 4.7 times so it’s
more as compared to previous year.
4) fixed assets turnover ratio = net sales
Fixed assets
2007-08 2008-09 2009-10

8.614.88 9,144.94 13992.87
7,363.05 6,695.61 6217.21
Comment:-
Fixed assets are used in the business for producing good to be sold. The
effective utilization of fixed assets will result in increased production &
reduced cost.
Increased the fixed assets turnover ratio is good for the company. So in
the case of DIGJAM, in 2009-10 is position of the fixed assets is good
as compared to previous year.
5) Debtors turnover ratio = credit sales/average debtors
2007-08 2008-09 2009-10

10,802.49 11,104.63 3157.2
2,456.95 2,547.90 2899.55
Comment:-
Debtor’s turnover ratio indicates the efficiency with which debts are
collected during the year. It will be in the interest of business. If the
ratio is higher, this will indicate that debts are collected quickly.
In the case of DIGJAM, in 2007-08 the debt turnover ratio is higher as
compare to 2007 & 2010. So at that time the debt are collected quickly .
Liquidity ratio
This ratio calculated to ascertain the short term solvency of the company
is known as liquidity ratios.
Liquidity ratio is calculated the measure the short term financial
soundness of the business the ratio assesses the capacity of the company
to repay its short term liability .
1) current ratio = Current assets
Current liabilities
2007-08 2008-09 2009-10

8.637.74 8,814.40 8595.02
7,838.55 8,484.45 5492.71
Comment:-
The current ratio is low. The standard ratio is 2:1. So, it is not good for
the company
2) Liquid ratio = Current assets – (stocks + prepared exp.)
Current liabilities
2007-08 2008-09 2009-10

4,266.49 4,313.51 4610.17
7,838.55 8,484.45 5492.71
Comment:-
Liquid ratio has increased as compared to last year. This shows an
satisfactory state of affairs .
Solvency ratio
‘ Solvency’ means the ability of the business to repay its outside
liability. This liability may be categorized as short term liability &
long term liabilities. Solvency ratio also measures the relationship
between external and internal equities .
1) Debt equity ratio = long term loans
Shareholders fund
2007-08 2008-09 2009-10

16,537.78 23,092.38 14666.93
4,910.21 5,721.42 8875.79
= 3.37times = 4.04times = 1.6 times
Comment:-
Long term financial position of the company is not sound, because total
shareholder’s funds are less than long term loans in three years.
2) fixed assets ratio = long term funds/Net fixed assets
2007-08 2008-09 2009-10

23,413.57 29,968.17 14666.93
7,363.05 6,695.61 6217
Comment:-
The ratio shows the relationship between long terms funds i.e.
Shareholders’ funds plus long term loans and fixed assets. The ideal
ratio should be more than one.
In the case of DIGJAM, in all three year the ratio is more than 1. So, the
position of the fixed assets is good.
3) proprietary ratio = shareholders fund
Total assets
2007-08 2008-09 2009-10

4,910.21 5,721.42 6875.79
23,413.57 23,092.38 15959.78
Comment:-
This ratio indicates the relationship between proprietary funds and total
assets. The proprietor’s funds include equity share capital .
Capital Budgeting
Capital budgeting decisions are of paramount important in financing

decision for the profitability of the company. An investment in fixed
assets, which is a long term investment is popularly knows as capital
budgeting.
Capital budgeting consists of planning & budgeting of the available

capital for the purpose of maximization of the long term profitability of
the firm.
It refers to a process by which management selects those investment

proposals, which are worth while for investing of available funds. It
includes addition, modification & replacement of fixed assets in the
light of overall objectives of the firm.
In DIGJAM while talking to Mr. Satish Shah (V.P. Finance) told us that
to do budgeting there is committee consisting of technical and non
technical staff, they include technical person and head of various
production department and also commercial person including head of
finance and MIS (Managemeny Informative System) department.
The committee considering the cost of change and its benefits will
decide whether to take that decision or not. Final decision is taken by
President of the company .
Working Capital Management
Working capital management is concerned with the problem that arise in

attempting to manage the current assets, current liabilities, and the inter
relation that exist between them. The goal of the working capital
management is to manage the firm’s current assets and current liabilities
in such a way that a satisfactory level of working capital is maintained
in the firm. This is so because if firm cannot maintain a reasonable
level; of working capital it is likely to become insolvent.
There are two type of working capital :

1) gross working capital
2) net working capital
Gross working capital

Gross working capital = total current Assets
Or
Owned working Capital + Borrowed Working capital
Net working capital

Net working capital = current assets –current liabilities
Or
It is that production of a firm’s assets, which is financed using
long term funds.
In DIGJAM a better relation with debtors since long time. They provide
120 days credit to their debtors for making payment as prevailing in a
market.
DIGJAM has adopted one very good technique of working capital
management. If we talk about arranging credit policy as per theory it is
done by finance department but in DIGJAM help of marketing personnel
is also taken, if require they may do some adjustment in the credit
policy.
Dividend Policy
One of the major decisions in finance management is related to dividend

policy, involves the choice between distributing the profit belonging to
the shareholders. Focus is on dividend paid to ordinary share holders
because holder of reference share is entitled to a fix rate of dividend.
DIGJAM has a policy of rewarding its share holders by way of payment

of dividend out of distributed profit of the company. The company had
paid uninterrupted dividend for 36 years till the year 1998. However due
to adverse market condition and lack of profitability the company has
not paid any dividend since 1999.
SWOT ANALAYSIS

SWOT Analysis
Strength
1. Participative leadership style of management.
2. Co-ordination mgt. Policy.
3. Give facility to employees.
4. Give motivation to dealer.
5. Good packing of the product
Weakness
1. No more expense in advertisement.

2. Ability to expand diversifies basis in the line with market trends, demands and
requirements’(Ready made garments).
Opportunity
1. Good after sales service.
2. Fully satisfaction among customers.

3. Increasing in market sales value.
4. Can go for backward integration by producing its own raw material other
than wool
Threat
1. Cut throught compitition with Raymond, Raid and Tailor, Reliance, Dines etc…at
national level
2. Change in consumer preference towards readymade garments.
IBMR-IBS,Bangalore
3. Page 101with
Cotton fabric is preferred more by the consumer as compared
woollen.
FINDINGS
DIGJAM is very well known company in worsted fabric industry with
rich and prosperous history behind it. DIGJAM has presence in domestic
as well as international market. It ranks second in India market after
RAYMOND, and has very good reputation and one of leading company
worsted fabric producer in the world.
It has always known for good management and for its realistic approach
towards customers, its employees and creditors.
Although due to unfavorable circumstance DIGJAM is making loss for
long time, but now it has a great recovery which can be seen in the
financial statements of DIGJAM. Even in this economic slowdown
DIGJAM has shown growth of nearly 27% this year.

SUGGESTIONS
DIGJAM is company operating for 60 years. Which has got very good
management. It has seen both good and bad times. Although all the
decision makers of DIGJAM are highly experienced whom more
suggestion cannot given be given but still as an observer and trainee I
have following suggestion for DIGJAM.
⇒ It should try use word of mouth marketing for abolishing its image
of only woolen mill.
⇒ In export market DIGJAM supplies it fabric to fashion designer, it
should rather try to diversify by directly selling fabric to end
customers.
⇒ DIGJAM should try to manufacture readymade garments first in
domestic market and same in foreign market.
⇒ Once company gains financial stability it should first focus on
advertising in domestic market.

⇒ DIGJAM should arrange a competition such a way that the person
who other than regular sales, purchase the maximum meter of cloth
of DIGJAM, should be given some awards.
CONCLUSION
After completing my training in DIGJAM LTD,JAMNAGAR I

feel
Very much satisfied by acquiring information of all dept and knowing many
new things. I can conclude that it’s a very well organized and developed
company. The unit is achieving great success during its past year and has also
experienced good and bad event. The reason behind this grand success is the co-
ordination among employees, hard work, dedication and commitment of the
company team which helps in climbing the ladder of success.
APPENDIX

Cash Flow Statement of DIGJAM
(Rs crore)
MAR ' 10 MAR ' 09 MAR ' 08 MAR ' 07 DEC ' 06
Profit before tax -12.54 -17.51 -11.16 0.85 -25.62
Net cash flow-operating activity 0.026 -0.99 7.02 2.00 11.10
Net cash used in investing activity 0.40 0.67 63.90 0.65 28.73
Net cash used in fin. activity -0.56 -1.81 -95.89 -5.91 -8.09
Net inc/dec in cash and equivalent -0.16 -.21 -24.97 -3.27 31.75
Cash and equivalent begin of year 0.22 0.433 29.30 32.58 0.94
Cash and equivalent end of year 0.06 0.02 4.34 29.30 32.69
( Figures with negative sign shows fund out flow )
There is decrease in loss of the company. DIGJAM is now trying to pay off
its debt but still manages to keep more cash as compared to last year.
Cash flow from operating activity has increased means company has earned
profit through sales more than that of last year which is good in this
economic slow down.
Good signs are also seen in net cash outflow which is less as compared to
previous years and so is the net cash equivalent.

Profit & Loss Account of DIGJAM
Profit loss account (Rs crore)

Income:
Operating income 139.92 111.05 108.02 29.94 292.58
Expenses
Material consumed 64.95 51.74 44.25 10.21 130.94
Manufacturing expenses 29.6 19.91 21.09 5.68 44.51
Personnel expenses 18.01 19.34 20.45 4.49 47.31
Selling expenses 19.09 17.27 15.50 4.39 31.85
Administrative expenses 5.39 4.89 7.12 1.40 24.82
Expenses capitalised - - - -
Cost of sales 113.16 108.42 26.16 279.44
Operating profit -2.12 -0.39 3.78 13.14
Other recurring income 1.62 4.26 1.15 4.40
Adjusted PBDIT -0.50 3.87 4.92 17.54
Financial expenses 9.22 9.71 2.72 21.20
Depreciation 6.37 7.22 1.91 37.18
Other write offs - 1.28 - 0.14
Adjusted PBT -16.08 -14.35 0.29 -40.99
Tax charges 0.24 0.15 0.06 0.33
Adjusted PAT -16.33 -14.50 0.23 -41.32
Non recurring items 8.08 -8.46 -2.67 -7.38
Other non cash adjustments 0.13 0.27 2.62 2.63
Reported net profit -8.11 -22.69 0.18 -46.07

Earnings before appropriation -125.97 -117.86 -95.17 -369.66
Equity dividend - - - -
Preference dividend - - - -
Dividend tax - - - -
Retained earnings -125.97 -117.86 -95.17 -369.66

Balance Sheet of DIGJAM
(Rs
crore)

Sources of funds
Owner's fund
Equity share capital 68.75 68.76 68.76 13.03 65.09
Share application money - - 30.73 -
Preference share capital 20 - - - 41.25
Reserves & surplus -125.97 -117.86 -95.17 -243.85
Loan funds
Secured loans 127.84 133.02 138.84 211.93 424.95
Unsecured loans 18.82 27.15 24.30 28.25 27.54
Total 102.95 114.04 188.77 314.98
Uses of funds
Fixed assets
Gross block 251.40 252.05 257.64 576.18
Less : revaluation reserve - - - 36.91
Less : accumulated
184.44 178.42 173.09 361.39
depreciation
Net block 66.96 73.63 84.54 177.88
Capital work-in-progress 0.28 0.08 - 0.08 0.05
Investments 4.41 4.42 4.42 70.90 57.81
Net current assets
Current assets, loans &
85.95 88.14 86.38 115.89 164.65
advances
Less : current liabilities &
54.92 56.65 50.39 82.64 92.57
provisions
Total net current assets 31.02 31.49 35.99 33.25 72.07
Miscellaneous expenses
- - - 7.17
not written
Total 102.95 114.04 188.77 314.98
Notes:
Book value of unquoted
4.42 4.42 64.35 51.25
investments
Market value of quoted
- - 20.69 11.48
investments
Contingent liabilities 2.46 0.83 0.98 5.90
Number of equity shares
687.42 687.42 130.14 650.71
outstanding (Lacs)
⇒ Company has done very wise thing, at time of requirement of cash
they have issued preference share rather than equity because there
market price are very low hence they could not have acquired more
money. Hence they have raised money through preference share.
BIBLIOGRAPHY

MARKETING MANAGEMENT PHILIP KOTLER
MARKETING KOTLER,KELLER,KOSHY,,JHA;
MANAGEMENT(NEW EDITION) MARKETING EDTION.12 t h
H.R. MANAGEMENT C.B. MEMORIA
ASHVATHAPA
FINANCE MANAGEMENT I.M. PANDEY
KHAN & JAIN

WEBSITES WWW.GOOGLE.COM
WWW.DIGJAM.CO.IN.
WWW.BIRLAVXL.COM

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EXECUTIVE

Well-Known DIGJAM LIMITED once runs in Shrinagar Kashmir as an extension of a mill.

Following are the objectives of Internship:-

The history of textile is almost as old as that of human civilization and as

In India the culture of silk was introduced in 400AD, while spinning of

cotton traces back to 3000BC. In China, the discovery and consequent

development of sericulture and spin silk methods got initiated at 2640 BC

The discovery of machines and their widespread application in processing

of new and improved sources of natural fibre. The development of

transportation and communication facilities facilitated the path of transaction

of localized skills and textile art among various countries.

New innovations in clothing production, manufacture and design came during

changed clothing manufacture forever.

industry evolved from being a domestic small-scale industry, to the status of

history where textiles were produced on a domestic basis.

produced, and the time they were being made.

information about textiles and it refers to weaving. Ramayana and

but also cater to the requirements of the modern times.

Until the economic liberalization of Indian economy, the India Textile

Industry was predominantly unorganized industry. The opening up of Indian

economy post 1990s led to a stupendous growth of this industry.

Today, Indian economy is largely dependent on textile manufacturing and

industrial production of India. Furthermore, its contribution to the gross

domestic product of India is around 3% and the numbers are steadily

increasing. India Textile Industry involves around 35 million workers directly

Strengths of Indian Textile Industry are as follows –

⇒ Huge textile production capacity

⇒ Efficient multi-fiber raw material manufacturing capacity

⇒ Large pool of skilled and cheap work force

⇒ Huge export potential

⇒ Large domestic market

⇒ Flexible textile manufacturing systems

Weaknesses of Indian Textile Industry are as follows –

⇒ Imports of cheap textiles from other Asian neighbors

⇒ Use of outdated manufacturing technology

⇒ Poor supply chain management

⇒ Huge unorganized and decentralized sector

⇒ High production cost with respect to other Asian competitors

development and promotion of all the sectors involved directly or indirectly

the unorganized decentralized textile sector (which accounts for 76% of

policy also aims at introducing modern and efficient manufacturing

machineries and techniques in the Indian textile sector.

Improved their quality standards prevailing into the world.

This mill was firstly established in the area of Shrinagar-Kashmir. The

by Mr.A.K.Watter. In 1948, when Pakistan attacked on Jammu-Kashmir,

used to rule over Jamnagar. When he learnt about Mr.A.K.Watter, he

permitted Mr.A.K.Watter to set up mill within his provinces. Besides he

also offered attractive concessions. He gave 40 acres of land free, Rs.20

Lacs loan towards equity allowed free import of raw materials. So in

VXL INDIA LTD”.

DIGJAM Limited, an S K Birla Group Company, began its activities

It is a leading textile company in India, manufacturer of fabrics for

Portfolios to focus as a textile company manufacturing and marketing

A complete vertically integrated plant, Digjam has ultra modern

Andersen Consulting, a leading management and corporate advisors

The DIGJAM brand will increasingly reflect both tradition and

Sujit Gulati IAS

Shri A.C. Mukherji

Smt. Gauri Kumar

1 Name of the Firm DIGJAM LTD.

2 Brand name DIGJAM

3 Years of Establishment 60 years

4 Form of Organization Public limited company