Summer Training Project Report On Budgeting system AT VARDHMAN POLYTEX LIMITED , BATHINDA SUBMITTED TO: ARYABHATTA COLLEGE OF MANAGEMENT & TECHNOLOGY , BARNALA . In Partial Fulfillment Of The Degree of Master of Business Administration during the year 2010-11
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Summer Training Project Report
On
Budgeting system
AT
VARDHMAN POLYTEX LIMITED , BATHINDA
SUBMITTED TO:
ARYABHATTA COLLEGE OF MANAGEMENT & TECHNOLOGY , BARNALA .
In Partial Fulfillment Of The Degree of Master of Business Administration during the year 2010-11
Submitted By:
MANEHA SHARMA
M.B.A. (FINANCE)
ROLL NO. 105202250519
PREFACE
The management had to depend upon certain relevant information for taking
various strategic decisions. The information is proved useful by its analysis and
interpretation. My project is related to “Analysis of budgeting system of
Vardhman Polytex Ltd.”
This project report is the outcome of my six-week live project in vardhman
Polytex Ltd. My attempt is to analyze the various aspects of budgeting system of
VPL.(Bathinda).
It was found that the (gross operating cycle of the company is bit disturbed) and
is continuously increasing. By adopting various calculation and analysis and then
making interpretation with the solution of specific problem efforts have been put
on giving appropriate suggestion to the company.
The report also consists of qualitative and quantitative analysis of Budgeting
System of VPL.(Bathinda).
1
CERTIFICATE
This to certify that Maneha sharma ,bearing roll no.105202250519,has
carried out the research project work presented in this report entitled
“Budgeting system” the results embodied in the report is original & not
submitted to any other university/institute for the award of any degree /
diploma.
Date…..
PROF. S.K. BISHAYEE
H.O.D - MBA
ARYABHATTA COLLEGE OF MGT. & TECH
2
Acknowledgement
The fulfillment of work requires dedication. It also calls for guidance and co-operation
from seniors.
This report is the outcome of six weeks training that I received in the Vardhman Polytex
Limited, Bathinda. This project work would not have been possible without the kind
assistance and guidance of many persons whom indeed were helpful, cooperative and
kind during the entire course of my project. I express my heartfelt appreciation for all
those concerned.
It gives me immense pleasure to acknowledge my deep sense of gratitude to Head of the
Department (MBA) Prof. S.K. Bishayee for his kind guidance & support.
In addition, sincere thanks Mr. Rajiender Pal & Mr.Sandeep Goyal for his guidance,
support and Affection throughout the course of this work.
In last, I express my sincerest thanks and indebtedness to the esteemed organization for
granting me the grand privilege of working on a project under the team of experts in the
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field of finance.
s. no Index Page no.
1 Chapter :- 1 The project
1.1 Title of the project 1.2 Statement of the problem 1.3 Objectives of the study 1.4 Methodology
6778
2 Chapter :- 2 Theoratical prospective
2.1 Definition of buget2.2 Objectives of setting budget2.3 Classifications of budget2.4 Problems in budgeting
101112-1314-18
3 Chapter :- 3 The organization
3.1 Brief history of organization3.2 Organization structure3.3 Products/services3.4 Financial performance
19-2627-3738-4040-44
4 Chapter :- 4 project data
4.1 Data collection 46-55
4
4.2 Data Analysis & Interpretation 56-66
5 Chapter :- 5 inferences
5.1 Findings5.2 Recommendations5.3 conclusion
6869-7070
6 Chapter :- 6
6.1 Limitations of the study6.2 Bibliography
7272
5
6
The project
1.1 Title of the project1.2 Statement of the problem1.3 Objective of the study1.4 Methodology
1.1 Title of the project
“Analysis of Budgeting system of vardhman polytex limited , bathinda ”
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1.2 Statement of the problem
Budgeting system is the important function of the finance department. Every finance department has to make a proper budgeting system . If there is any wrong approach in the budgeting system , which may lead to wrong decisions & it makes cause a serious problem in the organization.
Through the summer training project I have attempted to find out the existing procedure in VPL & then analysis the same to make the system more effective & full proof as far as feasible .
1.3 objective of the study
1. To develop the understanding about responsibility as to why and by whom it is
made.
2. To be familiar with nature, type and purpose of budget to be submitted by the
various department.
3. To have better understanding about the budgetary control system through
different departments of organization.
4. To study and review the present budgetary control system in VPL, Bathinda for
the purpose of better understanding of system and making it more effective.
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1.4 Methodology
Information Requirement:
Since my objective was to analyze the working capital policies & the working capital
management of the company. I was to reduce down their problems and finding the
solutions with respect to the working capital management of the company, for which. I
required the annual report of the company, and its working capital data .With which I could
analyze the position of the company and correlate the theoretical and practical aspects of
working capital management, to analyze the efficiency of the management in managing the
working capital and to find out what are the problems that the company is facing.
Therefore, the company provided me the required information. Then relevant calculations
and analysis were done.
Method used for the Data Collection:
I have to collect the annual report of the company, the working capital information; the
business profile of the company, relevant information related to manage the working capital
management components and the relevant literature on the working capital management.
As well as I collected the required data from various websites and various department of
organization from manufacturing department.
Qualitative analysis required studying the business profile of the company, its nature, its
functioning, the hierarchy and the functioning of the management & the performance of the
company in last few years’ .What policy they adopt and to study what role the working
capital plays in a manufacturing concern.
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Theoretical prospective
2.1 Definition of budget2.2 Objectives of setting budget2.3 Classifications of budgets2.4 Problems in budgeting
Budgets can be prepared for and used by anyone and anything. That is, we can prepare
and use personal budgets and organizations, ministries and non profit making
organizations can all use them.
Budgets, by definition, have to be prepared in advance; and for this reason, they are often
referred to in terms of their being part of a feed forward system. Feedback is a term
frequently heard both in accounting and ordinary use. Feed forward, on the other hand
tends to be less frequently heard, yet this word incorporates the most important aspect of
budgeting: looking at situations in advance, thinking about the impact and implications of
things in advance, attempting to take control of situations in advance.
BUDGET
A budget is quantitative expression of a plan. It is commonly used by business firms,
government agencies, non-profit institutions, and even households. Budget is a financial
statement, prepared prior to a defined period of time of the policy to be pursued during
that period for the purpose of attaining a given objective. Budgets quantity the planned
financial effects of activities aimed at continuous improvement and cost reduction.
Well managed organizations usually have the following budgeting cycle :
1. Planning the performance of the organization as a whole as well as its submits.
The entire management team agree as to what is expect.
2. Providing a frame of reference, a set of specific expectations against which actual
results can be compared.
3. Investigation variations from plans if necessary, corrective action follows
investigation.
4. Planning again, considering feedback and changed conditions.
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OBJECTIVES OF SETTING BUDGET
1. A budget is a blue print of the desired plan of action or operation plans covering
the entire organization and all its functions like purchases, production, sales,
financial requirements, research and development are expressed through budgets.
The budget serves as a declaration of policies and also defines the objectives fro
executives at all levels of management.
2. Budgets provide a means of co-ordination of business as a whole. In the process
of establishing budgets, the various factors like production capacity, sales,
possibilities and procurement of material, labour etc. are balanced and
coordinated so that all the activities proceed according to the objectives. Budgets
inculcate team spirit and are like putting so man people together to solve a
common problem.
3. Budgets are means of communication. Complex plan laid down by the top
management are passed on to those who are responsible for putting them into
action.
4. Budget facilities centralized control with delegated authority and responsibility as
they are grouped according to the responsibilities of different executive levels,
they facilitate decentralization of work.
Hence budgets are instruments of managerial control by means of which the management
can measure performance in every part of the concern and take corrective action as soon
as any variation from budget emerges.
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CLASSIFICATION OF BUDGETS
Budgets are classified according to the different purposes they serve. The budgets can be
classified according to :
1. The coverage they encompass
2. The capacity to which they are related
3. The condition on which they are based
4. The period which they cover
BUDGETs :-
COVERAGE CAPACITY CONDITION PERIOD
1) Financial budgets
a) Sales Budget
b) Production budget
c) Capital Exp. budget
d) Research & Dev.
Budget
e) Cash budget
2) Master Budget
1) Fixed budget
2) Flexible budget
1) Basic budget
2) Current budget
1) Long-term budget
2) Short-term budget
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CHARACTERISTICS OF A BUDGET
A good budget is characterized by the following :
1. Participation: involve as many people as possible in drawing up a budget.
2. Comprehensiveness: embrace the whole organization.
3. Standards: base it on established standards of performance.
4. Flexibility: allow for changing circumstances.
5. Feedback: Constantly monitor performance.
6. Analysis of costs and revenues: this can be done on the basis of product lines,
departments or cost centres.
ADVANTAGES OF BUDGETING AND BUDGETARY CONTROL
There are a number of advantages to budgeting and budgetary control:
1. Compels management to think about the future, which is probably the most
important feature of a budgetary planning and control system. Forces
management to look ahead, to set out detailed plans for achieving the targets for
each department, operation and (ideally) each manager, to anticipate and give the
organization purpose and direction.
2. Clearly defines areas of responsibility. Requires managers of budget centers to be
made responsible for the achievement of budget targets for the operations under
their personal control.
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3. Promotes coordination and communication.
4. Provides a basis for performance appraisal (variance analysis). A budget is
basically a yardstick against which actual performance is measured and assessed.
Control is provided by comparisons of actual results against budget plan.
Departures from budget can then be investigated and the reasons for the
differences can be divided into controllable and non-controllable factors.
5. Enables remedial action to be taken as variances emerge.
6. Motivates employees by participating in the setting of budgets.
7. Improves the allocation of scarce resources.
8. Economies management time by using the management by exception principle.
PROBLEMS IN BUDGETING
Budgets may be an essential part of any marketing activity they do have a number of
disadvantages, particularly in perception terms.
1. Budgets can be seen as pressure devices imposed by management, thus resulting
in :
2. Bad labor relations
3. Inaccurate record keeping
4. Departmental conflict arises due to :
5. Disputes over resource allocation
6. Departments blaming each other if targets are not attained.
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7. It is difficult to reconcile personal / individual and corporate goals.
8. Waste may arise as managers adopt the view, “we had better spend it or we will
lose it”. This is often coupled with “Empire building” in order to enhance the
prestige of a department.
9. Responsibility versus controlling, i.e. some costs are under the influence of
more than one person, e.g. power costs.
10.Managers may over-estimate costs so that they will not be blamed in the future
should they overspend.
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Budgetary Process
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Importance of the study
The study is important because it provide information regarding budgetary
system and all the aspects related to budgetary system.
This project is also important because it guides company what are the lacking
points in company’s budgetary system and how it can improve in these areas.
To state the areas of expense and income.
SCOPE OF THE STUDY
The scope of the study is limited to know the complete budgetary system of Vardhman.
So for this Purpose the study of the concept of budgetary control has been done and for
proper understanding of this concept, the study of annual budget, monthly budget, annual
review, monthly review and commercial review. And then from review, reasons for
variances are found out from control point of view.
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The organization
3.1 Brief history of company 3.2 Company structure3.3 products & services3.4 Financial performance
3.1 HISTORY OF THE COMPANY:-
M/s Punjab Mohta Polytex limited was set up in 1983 and started production in
1984. In1987; it was taken over by Vardhman group and was named Vardhman Polytex
Limited. But after the family settlement in 2002, the unit came under Oswal group.
The group has very good potential and high presence in the textiles industry with
well set manufacturing set up for 100% cotton, Polyester cotton, Tyre cord, 100% Acrylic
and other blended yarns. New qualities of yarn added are Lycra and Slub yarn. All the
group units are well equipped with machinery imported from Europe, Japan, China and
many other countries. Continuous efforts are always being made to further improve the q
uality and match the industry standard to meet the demand of its customers.
OVERVIEW OF OSWAL GROUP
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Oswal Group - A young & energetic player in the textile
Industry
The industrial hub of the northern region - Ludhiana nestles the corporate Headquarters
of the Oswal Group of industries. The Oswal Empire expands from Anshupati Textiles
Limited to Vinayak Textile Mills both situated in Ludhiana to Vardhman Polytex Limited
in Bathinda. The Company has entered into a joint venture agreement with F.M.
Hammerle Group, Austria for setting up a Rs.255 crore green field project for
manufacture of quality yarn & piece dyed shirting fabric with annual capacity of 12
million meters. For this purpose, a new company in the name of 'Oswal F.M. Hammerle
Textiles Ltd.' has been floated which has been set-up at Village Kagal, Dist. Kolhapur
(Maharashtra). This project will definitely decide the success of the group in the future.
Oswal group is earning laurels by selling yarn of international quality both indigenously
and exporting it to several countries. Its market share is increasing day by day. Now
which is fully under the control of Oswal Group as they have bought the 100% shares of
the company.
PROFILE OF THE GROUP:-
The industrial hub of the northern region - Ludhiana nestles the corporate Headquarters
of the Oswal Group of industries. The Oswal Empire expands from Anshupati Textiles
Limited to Vinayak Textile Mills both situated in Ludhiana to Vardhman Polytex Limited
in Bathinda . The Company has entered into a joint venture agreement with F.M.
Hammerle Group, Austria for setting up a Rs.250 crore green field project for
manufacture of quality yarn & piece dyed shirting fabric with annual capacity of 12
million meters. For this purpose, a new company in the name of 'Oswal F.M. Hammerle
Textiles Ltd.' has been floated which hasl set-up its plant at Village Kagal, Dist. Kolhapur
21
(Maharashtra). Vardhman Poly will hold a 76% stake in the said joint venture company
and 24% equity is held by F.M. Hammerle Group. This project will definitely decide the
success of the group in the future. Oswal group is earning laurels by selling yarn of
international quality both indigenously and exporting it to several countries. Its market
share is increasing day by day.
Vision : We at Oswal Group will achieve a turnover of Rs 2200 crore by the year 2014
by strengthening its core competencies and capacities in Textiles and diversified
businesses to create value for its Stakeholders.
Mission: Oswal Group on a learning curve will expand capacities in Textiles) and
reinforce Customer-delight by manufacturing world-class quality using state-of-the-art
technology
SWOT ANALYSIS
STRENGTHS
1. Adequate competency and confidence in all dep.
2. Committed team members from top of bottom.
3. Core competency for textiles
4. Capability for troubleshooting and crisis management.
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5. Creative and innovative thinking.
6. Peaceful industrial environment
7. Strong discipline and positive attitude culture
8. Relatively advanced technology and reliable captive power
9. Strong HRD and development tools for work force.
WEAKNESS
1. Economies of scale
2. Slow acceptance to changes / rigidity to some extent
3. Locational factors like away from textile / financial hub.
4. Technology up gradation particularly in engineering end computerization /
communication.
5. Professional depth in few places / areas.
OPPORTUNITIES
1. Globalization
2. Liberalization in govt. policies and tax laws.
3. Availability of latest / state of art technology and know how / communication.
4. Availability of easy finance
5. Availability of good professionals
THREATS
1 WTO
2 Unpredictability about cost of input like raw cotton fuel for CPP, imported spares
3 Shorter life span of imported technology
4 Instability of production work force
5 Squeezing margins of profit in textiles specially in spinning.
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MANUFACTURING PROCESS FLOW CHART
24
Issue of Cotton Bales
Laying Down
Blow Room
Card
Finisher Draw Frame
Unilap
Comber
Speed Frame
Ring Frame
Winding
Conditioning
Packing for Single Yarn
Cheese Winding
T.F.O
Conditioning
Packing for Double Yarn
Breaker Draw Frame
THE MANUFACTURING PROCESS
Raw cotton is used as a basic raw material for producing 100% cotton yarn for ring spun.
1. MIXING
The different varieties of cotton are issued as per product mix from the raw material section in bales. The different varieties of cotton and different lots are mixed together as per the requirement of end product and standard recommended mixings. The material is conditioned in mixing for 24 hour
2. BLOW ROOM \
In this process, the cleaning and opening of fibers is done in a sequence of beaters. Main purpose is to reduce tuft size, remove the trash particles and foreign matter etc, which often comes in the bales.
3. CARDING
In this process, further cleaning of fibers is done and the fibers are opened into single fibers extent i.e. the main purpose is further removal of trash in cotton and the industrialization and parallelization of fibers. From the carding machine, the material is delivered in the form of sliver.
4. DRAW FRAME
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Storage & Despatch
The purpose of this process is to reduce the wt/yard in the card sliver 6 to 8 end of card slivers are doubled together in this process to reduce variations and further drafting is done to reduce the wt/yard of delivered sliver. Two passages are given at the draw frame stage.
In case of combed counts, the card sliver is fed to the precombing draw frame. The purpose of combing draw frame is to reduce the wt/yard variations in the card sliver and to parallelize the fibers. Singles passage is given at the precombing stage.
5. LAP FORMER
20-25 precombed draw slivers are fed together to produce a lap sheets of fibers, which is wound on the spools.
6. COMBERS
The laps prepared on lap former are fed to combers. The main purpose of combing process is to remove the short fibers from the material in the form of noil. The average noilpercentage carries from 15% to 18%. The material is delivered in the form of sliver.
7. SPEED FRAME
The finisher draw frame sliver is fed to the speed frames for conversion into the roving form. In this process the wt/yard of the sliver is reduced, slight twist is given to the fleece and the material delivered in the form of roving, wound on the plastic bobbins.
8. RING FRAME
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The roving is fed to ring frame for conversion into yarn. In the process, the weight / yd of roving are reduced as per requirement of ultimate user and the delivered yarn is wound on the plastic bobbins.
9. WINDING
In this process, the yarn is wound on paper cones to produce bigger package, as per requirement of the market. The weight / package vary from 1.2 kilograms to 2.1 Kilograms. During the process, in addition to the formation of bigger packages, the yarn faults are also removed with help of electronic yarn cleaner.
10. DOUBLING
In the case of type cord the process is same up to cone winding. After cone winding the yarn is fed into Cheese Winding. In the process 2 ply or 4 ply is to be done as per requirement. After the yarn is fed into ring doubling and required T.P.I. is given in 2 ply or 4 ply yarn. In the next process in assembly cheese winding is get the package in the package in the required from to be fed into T.F.O. in T.F.O. final yarn is prepared in the form of cheese and required T.P.I. is given to the final yarn in process.
11. PACKING
In this process, the cones / cheese are packed in bags or cartoons as per the requirement
of the market. In addition to the packing the material is checked thoroughly to avoid
mixing of different materials.
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3.2 COMPANY STRUCTURE
VARDHMAN POLYTEX LIMITED:-
A unit based at Bathinda(Punjab) The company has completed its expansion project and
with this, the total capacity of the company has increased to over 1 lakh spindles making
it one of the largest in Northern India. with Present installed capacity of 1,04,592
spindles, is manufacturing 100% cotton yarn, Polyster cotton yarn, lycra, slub and Tyre
cord yarn with vast range of count selection varies from NE 10 to 40 both in carded and
combed varieties. The Unit is situated in the hub of COTTON BELT and derives the
advantage of procuring its basic raw material of best quality at lower cost from nearby
locations. the Company has also set up an independent Cotton Purchase Office in
Bathinda for the selection & procurement of Cotton to meet out its requirement in all the
Units The company had been awarded the Export House status by the Government of
India. The present capacity in term of production is around 68000 Kg/day.
ANSHUPATI TEXTILES LIMITED, based at Ludhiana (Punjab), was
setup in 1991 with an installed capacity of 8000 spindles to manufacture Grey/Dyed
Acrylic Yarn, Fancy yarn. The Acrylic Yarn is used in the manufacturing of Hosiery &
Knitted Garments. This Unit also manufactures the Acrylic Yarn which is used in
manufacturing of Mink Blankets. Presently it has the capacity of 12000 spindles. The
quality yarn in this unit is manufactured using technology imported from Europe, which
is fully backed with ultra modern R&D equipment for consistent quality. The yarn
manufactured from this unit has demand both in domestic and international market. The
present capacity in terms of production is approximately 7.5 ton/Day.
VINAYAK TEXTILE MILLS:- The Company has setup this Unit in 2004 at
Ludhiana with an installed capacity of 25000 spindles. The Unit has latest state-of-the-
art-technology imported from Rieter (Switzerland), Murata (Japan) & Uster
(Switzerland). The Company has also installed a Dye House at the same location having
capacity of 13.2 MT per day with latest machinery imported from Fongs
(China).Company under this unit is manufacturing 100% cotton yarn with vast range of
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count selection varies from NE 20 to 40 both in carded and combed varieties.Presently,It
has installed capacity of 50000 spindles. The present production capacity is around 30-
mt/Day and 13-mt dyeing /day.
A.M KRYON INTERNATIONAL :
Oswal group operates the garment division under the name of A.M KRYON
INTERNATIONAL which was established in November 1999 under the leadership of
Mr. Adish Oswal located in Ludhiana (hub of knitted and kitting garments).
Product Range - T-shirts, shirts, trousers, cargo, shorts, jackets for men, women and
children. Providing 3rd party shipment of all kind of garments whether in fine knits or
wovens for world renewed brands- Dockers, Wall mart, Arrow, GAP. His own brand is
AO’S. Manufacturing for leading Indian brands- Provogue, Lifestyle, BareTied with
Giny and Jony Ltd. and Apparels Ltd. for manufacturing of children garments and
exports to DVH Inc. (USA)
CURRENT SET UP: Presently the Company has its corporate office situated at
Chandigarh Road, village Mundian, Ludhiana and works at Bathinda &Ludhiana. The
day to day operations are looked after by qualified technocrats/professional at plant/work
as well as at corporate office having experience in their respective fields of management.
Presently Mr.Ashok Goyal is the Chief Executive of Vardhman Polytex limited.
PRESENT CAPACITIES
Location Installed Production Product Range
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Capacity
(spindles)
Capacity
Bathinda (VPL) 1,05000 60000kg/Day Cotton,
Synthetic,
Blended yarn,
Lycra, Slub
Ludhiana
(Anshupati Textile)
12000 7.50 MT/Day Acrylic Yarn
Ludhiana (VTM) (spinning &
dyeing)
50000 30-MT/Day
13-MT
dyeing/Day
100% Cotton
yarn
Presently the group has following production capacity and product range at its
different manufacturing facilities.
The Management
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Mr. Ashok Oswal Mr. Ashok Goyal
Chairman & Managing Director President (Yarn)
Dr. Rakesh Mittal Mr. S. Bhatnagar
CEO - Corporate Head Corporate HR
STRUCTURE OF VPL (Bathinda)
VPL (BATHINDA) is headed by MR. Ashok Goel President of Yarn Business. The
below picture. Depicts the structural departments of the VPL plant at Bathinda.
32
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SECURITY & ADM. DEPT:-
The security department maintains the vehicles with their log books and their averages..
The petrol & diesel reports are with the security supervisor of every 15 days and the
petrol pumps gives the credit for 15 days to the drivers and pumps had been paid through
cheques.
P & IR: -
The department recruits the staff as required by the concerned departments. The overtime
payments and shifts are decided here. The time to time training is been given to the
workers and the staff. The increments, appraisal system with the personal records are
kept here.
ACCOUNTS & COMMERCIAL DEPT:-
1. ACCOUNTS BRANCH:
The accounts department manages the day to day accounting. The proper taxation records
of whole VPL group at are kept at one place.
For the Sales Tax purpose the TIN no. is same for the VPL group VAT is dealt with at Bathinda for the whole group TDS is dealt with at the separate individual units( Returns, Deposits, Refunds)
It maintains the Cash in flow statements- Monthly , Profit & Loss A\C’s -Monthly ,
Balance Sheet- Yearly .Audit is done Quarterly by the Internal Audit team of 3 persons
full time job .They spend 15 to 20 days in every unit for Audit purpose of Oswal group.
The Statuary Audit is done yearly by S. S. Kothari Mehta & Co. of Delhi the visit the
individual units by Dec or Jan and then make up the final audit of the individual units.
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2. COMMERCIAL BRANCH :
Costing: It is mandatory at Textile industry so the costing as daily bases is
maintained and monthly costing accounts are prepared. The Ram Nath Iyar And
Company makes an audit yearly.
Commercial:
3. For Raw Material & Waste Handling
4. Finished Goods handling: - On daily bases Marketing Production and
Transportation of the finished goods are made .
INFORMATION TECNOLOGY: -
Only the Hardware part is too managed here whereas the Software (SAP) is to be
observed in Ludhiana there more then 10 officers are there but at VPL (Bathinda) only 1
officer is there who manage the computers and they had outsourced the hardware
management to Wipro.
STORES DEPARTMENT: -
The Receipt of the Material, Packing, Oil Lubricants, Stores Spares, Consumables. The
quotations of prices are invited from the parties and than the most suitable party are being
given the order. There is centralized purchasing is been made at the corporate office in
regard with Machines and Packing Material. The least inventory is kept in order to avoid
the blockage of money.
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MAINTENANCE DEPARTMENT:-
This department makes a proper schedule of maintenance of the machines. 24 hours
schedule is being prepared and breakdowns are been rectified round the clock duty.
ENGINEERING DEPARTMENT:-
STRUCTURE
RESEARCH & TECHNOLOGY: -
The Research and the technology people ensures that the quality standards are of the
cotton bales in all vehicles are been maintained with which the finished goods also meet
the desired standards. In any case the Trash content is been more then the Debit Note is
been raised against the party. All the material complaints are been taken from the party
as told by the Marketing Department.
PRODUCTION DEPARTMENT: -
The Target of the Production is set in consultation with all the departments and then in
case there is any variation between the Actual Production and the Targeted Production
the reasons are too being considered.
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STRUCTURE
In Bathinda there are 4 units each having separate production departments and all are
headed by GM (TECHNICAL) and the rest of the hierarchy is identical for all the units.
COMPUTERISATION
Presently the unit is operating under “SAP”. The system work completed & come into
working from April 2007. This system is well structured keeping in view the present tax
regime like VAT, SERVICE TAX, and TDS etc. The Server for this is situated at
LUDHIANA. The feature of system is that data related to all units are available at
different units & branches. Each department can access data related to different units at
their own site subject to authorization. Personal computers have also been provided
separately for each department.
I.S.O. CERTIFICATION
The unit had been awarded ISO-9002 certificate by Bureau of India standards. The ISO
certification is an assurance of good quality of the product. At present, unit had been
awarded ISO-9001 – 2000 by bureau of India Standard.
MARKETING
For Marketing of different product, the unit is having a modern marketing department
headed by experienced team that covers all the activities for conversion of finished goods
into cash. It keeps vigil on the market feed-back on the level competition, market, trend,
changing customer needs and modifications. The marketing department deals with
domestic sales, while export department of the group manages export sales. The VPL’s
having the export and domestic ratio is 25:75. The unit is having different channels for
distribution of its products.
1. Selling agents at Ludhiana, Amritsar, Delhi, Mumbai and Tirupur.
2. Branches at Delhi and Ludhiana.
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3. Direct Dispatches are also made by the units.
EXPORTS
The exports at the group level started in 1985-86 due to increased govt. attention during
that period. For promoting the export govt. has also assigned the export house status to
the group in the late eighties. Export and Domestic ratio of VPL is 25:75. VPL exports
yarn to countries like BANGLADESH, HONGKONG, KOREA, MALAYSIA,
PHILLIPINES, SINGAPORE, SRI LANKA, VIETNAM, PORTUGAL
INDIGENEOUS CUSTOMERS
The indigenous customers of VPL, Bathinda; are industries like RAYMOND, SURYA
LAKSHMI, and cities like AHMEDABAD, DELHI AND LUDHIANA in the North,
TRIPURA in the South etc.
COMPETITOR
VPL is in tough competition with VARDHMAN GROUP; NAHAR GROUP,
LUDHIANA; TRIDENT etc.
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3.3 PRODUCTS & SERVICES
YARN
FABRIC
GARMENTS
YARN
Textile is the basic & one of the most important industries of India. Yarn is vital
ingredient and link in the entire value chain of textiles. Yarn accounts for major share out
of total textile exports of our country.Oswal Group has acquired core competence in yarn
manufacturing and it is regarded as one of the leading, progressive and reliable yarn
manufacturer in the textile industry. The promoters including Shri Ashok Oswal,
Chairman & Managing Director has long experience of about three decades in textiles &
enjoys good representation among business associates both in India and abroad.
FABRIC
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Oswal Group is primarily engaged in yarn business since its inception. Then gradually
looked for other avenues to integrate the value stream of textile manufacturing for the
need of business growth. Having a core competency in textiles, conversion of yarn to
fabric was a major focus area for this Group. The opportunity in niche market for
premium shirting fabric is ever flourishing. To grab this segment with bountiful of future
business potentials; Oswal Group forays into fabric business through an Austrian Joint
Venture. Oswal F. M. Hammerle Textiles Limited was established in 2008.
The company established itself as a profound mentor by manufacturing and exporting
magnificent textile products since 2003. Through their Total Quality Management
(TQM), they effortlessly display their worth at the quality front and therefore they are
confident to make a big stride in this endeavor.
GARMENTS
Oswal Group operates the garment division under the name of Amkryon was established on November 1999 under the able leadership of Mr. Adish Oswal .Amkryon’s manufacturing facility is located in Ludhiana, which is the hub of kitting and knitted garments. The manufacturing plant is equally balanced for Knitted and Woven Garments and is well laid out with lots of open spaces and good working conditions. They had good team of dedicated professionals for all areas of operations.