RAHUL

ASUMMER TRAINING PROJECT

ON

“TO STUDY OF CURRENT MARKET

SCENARIO AND EFFECT OF INCREASE IN PRICES OF

HAND KNITTING YARN”

UNDER TAKEN AT

VARDHMAN TEXTILES LIMITED

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mr. LALIT MAHAJAN RAHUL SINGH

STUDENT OF:

RIMT(REGIONAL) COLLEGE OF MANAGEMENT,MANDI GOBINGARH

CERTIFICATE

This is to certify that, RAHUL SINGH an MBA student from RIMT(REGIONAL) COLLEGE

OF MANAGEMENT was placed in this organization in the Sales Office of Vardhman

Textiles Limited for summer training for a period of eight weeks form 7st June to 20th July, 2010,

in partial fulfillment of the requirement for two year (MBA) degree.

The project entitled, “To Study of current market scenario and effect of increase the price of

Hand Knitting Yarn ” submitted is a bonafide research work carried out under my supervision

and that no part of this research project has been submitted for any other degree. The assistance

and help received during the course of this investigation has been fully acknowledged.

In my opinion, his work has been satisfactory

Signature Mr. Lalit Mahajan

ACKNOWLEDGEMENT

Any person can never do work of this nature alone. This formal piece of acknowledgement may

not be sufficient to express the feeling of gratitude and affection for those who were associated

with the project and without whose co-operation and guidance this project could not have been

conducted properly.

It is a matter of great pleasure for me in submitting the project report on “To Study of current

market scenario and effect of increase the price of Hand Knitting Yarn ” in the partial

fulfillment of the requirement of my course from “RIMT(REGIONAL) COLLEGE OF

MANAGEMENT,MANDI GOBINDGARH . It is my profound privilege to thankfully

acknowledge the inspiring co-operation extended to me by all the staff members for the

successful completion of my project.

My first word of thanks goes to Mr. V.K Goyal, CEO, Vardhman Textiles Limited, Ludhiana

for giving me an excellent chance to undergo training in a reputed and prestigious textile

company of India.

It is my profound privilege to express my thanks and gratitude to Mr. Lalit Mahajan, Mr.

Maninder Sharma, Mr. Pawan Sharma, Mr. Mukti Ranjan and Mr. Ankush Khanna for

their kind support and guidance in marshalling my knowledge.

I have, perhaps carved the niche with co-operation of all in whose contact I happen to come

during the entire time-frame of my project.

RAHUL SINGHRAHUL SINGH

PREFACEWhen everybody is providing what is expected from him/her, the person delivering the

unexpected to its customers succeeds in the long run. In today’s marketplace, it is no longer

enough to satisfy the customers, the manufacturer needs to delight them as well. To conquer the

modern business world one needs to be one-step ahead of its competitors.

MBA is combination of both theoretical as well as practical aspects of business and summer

training gives a good opportunity to work in a real work environment. The concept of summer

training, which is there in the curriculum of business management schools, serves three

important purposes:-

Firstly: It gives the student a fair amount of insight of problems faced by them.

Secondly: The summer training project helps business management students to get a first hand

experience of actual working condition, which otherwise is possible only when a student enters a

job.

Thirdly: Summer Training is a learning ground, which helps us to relate the workings of the

corporate world with the class room teaching.

Summer Training helps the students to view the real Business World closely, which in turn

widely influences their conceptions and perceptions. I was fortunate to pursue my training in a

reputed, well established, fast growing and a professionally managed organization.

This project report is the result of eight weeks training at Vardhman Textiles Limited, Ludhiana.

It has given me a great deal of exposure and I have found practical work very different from

theoretical one.

TABLE OF CONTENTS

1. INTRODUCTION TO INDIAN TEXTILE INDUSTRY

2. INTRODUCTION TO VARDHMAN GROUP

Company Profile

About Vardhman group

Establishment of Vardhman

Brief history

Mission Statement

Logo of Vardhman Group

Different Departments of Vardhman

Organization Structure

Board of Directors

Group Philosophy

Quality policy

Adoption of modern management Practices

Total productive maintenance

Product Range

Business Portfolio

Different Units of Vardhman Textiles Ltd

Corporate social responsibility

Awards

Porter`s Five Forces Model

Market Position

Swot analysis of Vardhman group

HR Philosophy

3. INTRODUCTION TO PROJECT

4. COMPETITORS OF VARDHMAN IN HAND KNITTING YARN

5. REPORT ON BUSINESS UNIT

6. FUNCTIONAL PROCESS OF SALES OFFICE

7. RESEARCH METHODOLOGY OF THE PROJECT

8. ANALYSIS AND INTREPRETATION

9. FINDINGS

10. SUGGESTIONS AND RECOMMENDATIONS

11. BIBLIOGRAPHY

12. ANNEXURE

INDIAN TEXTILE INDUSTRY

INTRODUCTION

Textile Industry is one of the largest and oldest industries in India. It has a significant role in In-

dia as it fulfills the essential and basic need of people. Textile Industry in India stands at unique

place and has maintained a sustainable growth over the years. This is a self-reliant and indepen-

dent industry and has great diversification and versatility.

Textile Industry in India provides great contribution for the development of economy. It is the

second largest textile industry in the world after China. It provides ample employment opportuni-

ties to people belonging to all classes.

Textile Industry represents the rich culture, tradition, heritage & economic well-being of country

with diversified range and versatility. At the same time industry is competitive enough to fulfill

different demand patterns of domestic and global markets.

Current scenario

The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to

the country's gross domestic product (GDP) and 17 per cent to the country’s export earnings, ac-

cording to the Annual Report 2009-10 of the Ministry of Textiles.It provides direct employment

to over 35 million people and is the second largest provider of employment after agriculture.

According to the Ministry of Textiles, the cumulative production of cloth during April’09-

March’10 has increased by 8.3 per cent as compared to the corresponding period of the previous

year.Moreover, total textile exports have increased to US$ 18.6 billion during April’09-

January’10, from US$ 17.7 billion during the corresponding period of the previous year, register-

ing an increase of 4.95 per cent in rupee terms. Further, the share of textile exports in total ex-

ports has increased to 12.36 per cent during April’09-January’10, according to the Ministry of

Textiles.

As per the Index of Industrial Production (IIP) data released by the Central Statistical Organisa-

tion (CSO), cotton textiles has registered a growth of 5.5 per cent during April-March 2009-10,

while wool, silk and man-made fibre textiles have registered a growth of 8.2 per cent while tex-

tile products including wearing apparel have registered a growth of 8.5 per cent.

Following are some major players in Indian Textile Industry

Arvind Mills

Raymond

Reliance Textiles

Vardhman Spinning

Welspun India

Century Textiles

Morarjee Mills

Indo Rama

GTN Textiles

Ginni Filaments Ltd.

LNJ Bhilwara Group

Mafatlal Textiles

Modern Group

Government Initiative

According to the Ministry of Textiles, investment under the Technology Upgradation Fund

Schemes (TUFS) has been increasing steadily. During the year 2009-10, 1896 applications have

been sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December

31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5

billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has

been disbursed so far till the end of April, 2010. Moreover, in May 2010, the Ministry of Textiles

informed a parliamentary panel that it proposes to allocate US$ 785.2 million for the moderniza-

tion of the textile industry.

The Scheme for Integrated Textile Park (SITP) was approved in July 2005 to facilitate setting up

of textiles parks with world class infrastructure facilities. 40 textiles park projects have been

sanctioned under the SITP. According to the Minister of State for Textiles, Panabaaka Lakshmi,

under the SITP, a cumulative expenditure of US$ 204.3 million has been incurred against alloca-

tion of US$ 220.7 million in the last three years.

The key advantages of the Indian industry are:

India is the third largest producer of cotton with the largest area under cotton cultivation

in the world. It has an edge in low cost cotton sourcing compared to other countries. 

Average wage rates in India are 50-60 percent lower than that in developed countries,

thus enabling India to benefit from global outsourcing trends in labor intensive businesses

such as garments and home textiles.

Design and fashion capabilities are key strengths that will enable Indian players to

strengthen their relationships with global retailers and score over their Chinese competi-

tors.

Production facilities are available across the textile value chain, from spinning to gar-

ments manufacturing. The industry is investing in technology and increasing its capaci-

ties which should prove a major asset in the years to come. 

Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymond

have established themselves as 'quality producers' in the global market. This recognition

would further enable India to leverage its position among global retailers.

India has gathered experience in terms of working with global brands and this should

benefit Indian vendors.

Introduction to Vardhman Group

Company Profile

Registered office/ Corporate office : Chandigarh Road, Ludhiana (PB.)

Date of incorporation : 27 December, 1962

Listings on Stock Exchange : Bombay Stock Exchange, Mumbai

National Stock Exchange, Mumbai

About Vardhman GroupVardhman is a major integrated textile producer in India. The Group was setup in 1965 at

Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, one of the

largest textile conglomerates in India. The Group portfolio includes manufacturing and

marketing of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel. The group started its

corporate journey with an installed capacity of 6000 spindles in 1965 under the flagship

company Vardhman Spinning & General Mills Limited (now known as Vardhman Holdings

Limited and is an investment arm of the Group) in Ludhiana. Over the years the group has

expanded its spinning capacities besides adding new businesses. The group has also diversified

into yarn processing, weaving, Sewing thread, fabric processing, acrylic fibre manufacturing and

into special/ alloy steels. Today, close to 20,000 people is the Organisation s most important

asset its human capital.

The Vardhman group comprises of three listed and two unlisted companies :-

Listed Companies

Vardhman Textiles Limited (formerly Mahavir Spinning Mills Limited)

Vardhman Acrylics Limited

Vardhman Holdings Limited (formerly Vardhman Spinning & General Mills Limited)

Unlisted Companies

VMT Spinning Company Limited

Vardhman Threads Limited

ESTABLISHMENT OF VARDHMAN

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

otherwise known as the “MANCHESTER OF INDIA”. Within the precincts of this city is

located the Corporate Headquarters of the Vardhman Group, a household name in Northern

India has carved out a niche for itself in textile industry. The Vardhman Group born in 1965

under the entrepreneurship of Late Lala Rattan Chand Oswal, father of present Chairman cum

managing director Sh. S.P.OSWAL, has today blossomed into one of the largest Textile

Business houses in India.

BRIEF HISTORY

The Vardhman Group is one of the largest textile houses in the country. The group has the

sizeable presence in Spinning, Weaving, Sewing Threads, Fabrics Processing, Acrylic Fiber

manufacturing and Alloy Steels.

In 1965, at the time when India was awakening to the need for industrial investment, Ludhiana, a

bustling town in the fertile Malwa belt of Punjab, witnessed the establishment of Vardhman

which started as a 14,000 spindle spinning unit under the entrepreneurship of Late Lala Rattan

Chand Oswal. Vardhman has grown into full – fledged textile group, with a range of textile

products stretching from fiber to fabric. Over the years, Vardhman has expanded its spinning

capacities besides adding new business.

In 1982, the group entered the sewing thread market and has grown to be the second largest

producer of sewing thread. In 1992, it undertook forward integration in the weaving business. It

has also made its mark as the quality producer of Grey poplin/sheeting/shirting in the domestic

as well as foreign market

In 1990, the group went in for another diversification by entering the weaving business. A

grey fabric weaving facility was set up in Baddi, in Himachal Pradesh with a capacity of 20,000

meters per day. Soon after, the group entered into fabric processing by setting up a unit by name

of Auro Textiles in Baddi itself. This unit today has a processing capacity of 1 lac meters/day.

In 1999, the group went in for diversifying into a business where it didn’t have sufficient

expertise when it set up an acrylic fiber manufacturing facility in Bharuch (Gujarat). But this

shortcoming was overcome by bringing in the technological capabilities of two able Japanese

partners, Marubeni and Exlan, into the venture. So a joint venture Vardhman Acrylics Ltd was

set with a two Japanese companies of late the company setting up man integrated textile manu-

facturing facility in Buddni and Satlapur(M.P.) where it is setting up a captive power generation

unit, a spinning unit-Satlapur as a composite unit (spinning and weaving)- Buddni.The spindle

capacity of the group is 8.5 lac. More importantly it would give it’s a manufacturing presence in

central India from where it can better serve its western and south Indian clients. Until now the

company had all its manufacturing units in the northern India which not only made it difficult to

serve its far off clients but also posed the problem of capacity constraints for the company at the

existing units just when demand for Textile is expected to pick up in the post quotes scenario.

The capacity is expected to solve both these problems and is expected to become operational by

2008.During the year 2004 -05 Vardhman Spinning and General Mills Ltd. (VSGML) merged

into Mahavir Spinning Mills Ltd.(MSML) and VSGML became a holding company.

Today companies of the Group like Vardhman Spinning & General Mills Ltd. (VSML)

and Mahavir Spinning Mills Ltd. (MSML) are listed and trade on various Stock Exchanges in In-

dia. The Group’s joint ventures include VMT Spinning Company Ltd. (A joint ventures with

Toho Rayon Co. Ltd. and Marubeni of Japan) and Vardhman Acrylics Ltd. (A joint venture with

Japan Exlan and Marubeni, Japan)

Vardhman is also the largest manufacturer and exporter of Cotton yarns from India. It is

the second largest producer of sewing threads in India and a large producer of acrylic fiber and

greige/ finished woven fabrics. The company has been awarded the prestigious ‘Texprocil’

award for outstanding achievements in exports regularly over the last decade. Adherence to sys-

tems and true dedication to quality has resulted in obtaining the coveted ISO-9002, ISO-14002

quality award which is the first in the Textile Industry in India and yet another laurel to its credit.

Vardhman’s endeavor to provide its customers with state-of-the art products has been felicitated

time and again, by the industry and the Government.

MISSION STATEMENT

Vardhman aims to be the world class Textile organization producing diverse range of products

for the global Textile market. Vardhman seeks to achieve Customer delight through excellence in

manufacturing and customer service based on creative combination of state of the art technology

and human resources. Vardhman is committed to be a responsible corporate citizen. The mission

of the Vardhman Group can be summed up in a single line i.e. “BEING WORLD CLASS

SPINNERS BY PROVIDING HIGHEST QUALITY PRODUCTS WITHIN MINIMUM

COST”.

The vision of the company is as follows:-

“TO BE GLOBALLY RECOGNIZED AS A LEADING SUPPLIER OF QUALITY FAB-RICS”

LOGO OF VARDHMAN GROUP

The “FLAME” signifies the growth of each and every individual associated with it

whether he or she is a worker, an employee, share holder or a customer.

The “STICK” symbolizes cotton, which is basic raw material of the core product of

Vardhman Group.

The “V” stands for Vardhman Group.

DIFFERENT DEPARTMENTS OF VARDHMAN

COMMERCIAL DEPARTMENT

Costing

Raw Material

ADMINISTRATIVE DEPARTMENT

Industrial relations

Personnel department

Transport

Security

Establishment (dispatch & issue)

Electronic data process (EDP)

PRODUCTION DEPARTMENT

Spinning I

Spinning II

Post Spinning I

Post Spinning

Worsted I, II

Hand Knitting section

Dye house – unit- II

ENGINEERING DEPARTMENT

Electronic department

Mechanical department

RESEARCH AND DEVELOPMENT

Quality control

New product development

FINANCE DEPARTMENT

Maintaining accounts

Allocation of finance

MATERIAL DEPARTMENT

Packing material

Promotional material

ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

SH. SHRI PAUL OSWAL- CHAIRMAN AND MANAGING DIRECTOR

SMT. AMITA NARAIN- (NOMINEE OF IDBI)

SH. ARUN KUMAR PURWAR

SH. PRAFULL ANUBHAI

SH. SUBHASH KHANCHAND BIJLANI

SH. ASHOK KUMAR KUNDRA

SH. DARSHAN LALSHARMA

SH. SHRAVAN TALWAR

SH. SACHIT JAIN - EXECUTIVE DIRECTOR

SMT. SUCHITA JAIN - EXECUTIVE DIRECTOR

SH. NEERAJ JAIN - EXECUTIVE DIRECTOR

CGM (FINANCE, ACCOUNTS AND TAXATION)

SH. RAJEEV THAPAR

COMPANY SECRETARY

SH. VIPIN GUPTA

AUDITORS

M/S. S.C. VASUDEVA & CO.

CHARTERED ACCOUNTANTS

NEW DELHI

GROUP PHILOSOPHY

The Vardhman Group has always emphasized on total customer focus in all operational areas. It

has continuously monitored and nurtured relationships with all the customers and business

associates.

VARDHMAN BELIEVES IN:

The fact that ‘change ‘is a way of life.

Absolute market orientation for a quick and positive response to the customer’s needs.

An uncompromising commitment to a flexible, professional and personalized service

from within a stimulating result oriented environment.

Timely delivery with consistent standards

Response approach to the benefits of R&D and the modern technology.

Having faith in individual potential and respect for human values.

Being a responsible corporate citizen with due respect to the laws of the land and its envi-

ronment.

Product to be the best available quality for premium market segment.

These underline the corporate philosophy, which has shaped VARDHMAN OF YESTER

YEARS into VARDHMAN OF TODAY.

Products to be of the best available quality for premium market segment through

TQM and zero defect implementation. For achieving in all functional areas, encour-

aging innovations for constant improvement of the product and service. Having

faith in your skill and ability. Always encourage and motivate your group. Believe in

loyalty.

QUALITY POLICY

Vardhman is the market leader in terms of quality of its quality of its products which justifies the

price premium of the product. Therefore its quality policy has a very important role to play in its

organizational culture.

Its quality policy states that “Quality should be built into the company’s products not only to

meet customer’s requirements continuously but also exceed them. The company shall achieve

this interface with the market place, access to the state of art technology, R&D, process

development and adoption of innovative manufacturing and marketing strategies and it shall be

implemented through a network of system and procedure understood and followed throughout

the company.

The quality policy shall be integrated with company’s main objectives:

To remain the market leader in quality

Increase market share with focus on niche segment

Improve productivity

Cost reduction

Reduction in percentage of seconds

The management shall be committed to provide capital and human resources to achieve above

objectives. A company wide policy culture shall be created through training and motivation of

people at all level in the organization.

More than 100 quality circles total, quality management, Manav Vikas Kendras for worker

training, communication meetings, inter functional groups are utilized to send a clear message

from top to bottom that “ The Quality & service are a part and modern add on to Vardhman

Products”

TOTAL PRODUCTIVE MAINTENANCE (TPM)

What is TPM?

It aims to create a corporate system that maximizes the efficiency of the production system.

TPM is based on Participation of all members, ranging from the top management to front line

employees.

TPM Policy of Vardhman Group

Maximize overall effectiveness and reliability of the plant and machinery by aiming at “Zero

Break down”, “Zero Defects”, “Zero Accident” through nurturing team work and continuous

development of all employees, following TPM road map for implementation of “Total

Productive Maintenance” (TPM) in the company.

TPM Mission and how it is Training Related

It come under the training because trainers give knowledge of TPM to employee and its mission

is to maximize overall equipment effectiveness and improve flexibility through achievement of

total reliability of total reliability of the plant and machines and development of human resources

by us hearing cultural change by involving all personal working in the company

PRODUCT RANGE Yarn

100% Cotton- Carded /Combed

100% Acrylic

Acrylic / Cotton

Polyester / Cotton

Mélange

Cones / Hanks Dyeing

Raw white / Bleached / Dyed yarn

Compact Yarn

Cotton Lycra Yarn

Gassed Mercerized cotton yarn/Special blended yarn

Hand knitting yarn

Fancy

Twisted

Sewing threads

Cotton

Polyester

Nylon

Fabrics

Bottom Weight

Dyed yarn Shirting

Special Steels

Alloy steels

Low carbon steels

Spring steels

YEAR OF ESTABLISHMENT AND MARKET POSITION

Product Year of Establishment Market Share

Yarn 1965 47%

Steel 1972 10%

Sewing Thread 1982 11%

Fabric 1992 22%

Fibre 1999 8%

Yarns

The constant endeavor to excel has transformed Vardhman into being the country’s largest

manufacturer and exporter of cotton yarns

Catering to the diverse requirements of the local and global clients, Vardhman offers a wide

range of specialized grey, dyed and a variety of blended yarns in cotton, polyester and acrylic.

Technical tie-ups with the world class leaders from Switzerland, Germany, Japan and Korea

have provided state-of-the art machinery that has ensured a range of products admired across the

globe for their impeccable quality and service.

Latest technology, sourced from best available around the world, combined with dexterous hands

has made Vardhman a “Super Market of High Quality Yarns”.

1994 was another milestone towards its mission to supply quality products. Vardhman further

improved the value addition to its existing range of tops, fiber dyed and cone dyed yarns.

This was result of new phenomena that emerged on the horizons of Vardhman and also of Indian

Textiles. A fully integrated dyeing plant was commissioned with technology from Nihon Sanmo

Dyeing Co. Ltd., Japan, and the leader in dyeing technology in the world. It has a capacity of

processing 22 tones fiber/tops and 10-tonnes of yarns per day.

Today Vardhman Group has over 50 tones of dyeing capacity per day, spread over various

plants.

PRODUCTS APPLICATIONS

Cotton Hosiery Yarn All kinds of knitted garments for kids,

ladies ,gents, socks, t-shirts

Woven Yarn Shirts and Trousers

Tyre Cord yarn Manufacturing of Tyres

Acrylic Yarn Sweaters and Shawls

Hand Knitting Yarn Knitting

Sewing Thread

Vardhman is the second largest producer of sewing thread in the country. The sewing thread manufacturing capacity

is being expanded from present 17 tons per day to 22 tons per day in its sewing thread plants located at Hoshiarpur,

Baddi and Ludhiana. Sewing threads contributes 12 percent of the group turnover.

SEGMENT APPLICATIONS

Apparel Sewing Threads Clothing, Tailoring, Hosiery

Specialty Threads Sports, Leather Goods,

Gloves, Mattresses,

Quilting, Parachutes etc.

Textile Crafts Embroidery, Crochet

Tapestry etc.

Kite Flying Kite Flying

Fabrics

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

Baddi, Northern India. The group has installed 208 shuttles less looms and a fabric processing

capacity of 30 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics busi-

ness contributes 8 percent to the group turnover.

Fiber

Vardhman ventured into the manufacture of acrylic fiber in 1999. The Joint Venture, Vardhman

Acrylics Ltd., was s ET up together with two leading Japanese business houses namely Japan

Exlan company Ltd. and Marubeni Corporation, Japan.

Today, Vardhman Acrylics ltd. produces consistent superior quality fiber and has emerged as an

important producer in India. The products are marketed under the brand name VARLAN.

Varlan fiber has achieved a high order of recognition in the Indian market for its use in a wide

variety of applications such as dress material, blankets, carpets, upholstery, furnishing fabrics

etc. Vardhman acrylic is committed to continuous efforts for developing newer and exciting

applications in close association with the customers and the end users.

Special steels

Vardhman Special Steels was established in the year 1972 to manufacture Special and Alloy

Steel. The true impetus came with the upgrading of the plant located in Ludhiana to an ultra

modern plant. Today it has an installed capacity of 1, 00,000 MT per annum.

Continuous research and development efforts, focused on customer satisfaction, have enabled

Vardhman Steels to meet the stringent quality requirements of producers of all types of

commercial vehicles, tractors, cars, two wheelers, defense applications, and other engineering

products. The company has received approval for its products from leading Companies like

Telco, Ashok Leyland, Maruti, Hindustan Motors, Yamaha, Kinetic and Escorts among others.

GARMENTS

Vardhman Textiles Limited has entered into a Joint Venture agreement with Japan

based Nisshinbo Textiles Inc. by the name of Vardhman Nisshinbo Garments Company

Limited. The equity participation of Vardhman and Nisshinbo would be in the ratio of 51:49.

Nisshinbo is a world class textile manufacturer with comprehensive operations including

spinning, weaving, knitting, finishing and sewing.

The total manufacturing capacity of the project shall be about 1.8 million pieces per annum. This

venture of Vardhman is a step towards a gradual integration of our Textile Value Chain to meet

the clothing requirements of the higher end customers in domestic and international market. The

estimated capital cost of the project is Rs. 30 crores which will be financed partly from equity

contribution by joint venture partners and partly by debt.

The joint venture company will supply majority of its production for international markets

through Nisshinbo. The Joint Venture Company shall also manufacture shirts for supply to the

domestic brands. Nisshinbo shall also provide technical assistance for setting up the facilities and

for the manufacturing operations.

The Foundation Stone of the project was laid on 21st August, 2009 at Phase D-95, Phase VIII,

Focal Point, Ludhiana . Mr. Takeo Shimura, Vice President, Mr. Masatsugu Ohno, Manager,

Textile Fabrics Division and Mr. Masami Tsuji, Manager, Global Operation Section from

Nisshinbo Textiles Inc., Japan specially came to attend the ceremony.

The Project will provide direct employment to about 600 people and is likely to commence

production in July/August 2010. A team of technical persons shall go to Japan and China during

January to May 2010 for training.

DIFFERENT UNITS OF VARDHMAN TEXTILES LIMITED

Vardhman Group consists of 5 SBU’s spread across the country

Yarn Manufacturing Units Location Spindles

Vardhman Spinning and General Mills Ludhiana (Punjab) 64572

Vardhman Spinning Mills Baddi (Himachal Pradesh) 36288

Auro Spinning Mills Baddi (Himachal Pradesh) 77792

Arisht Spinning Mills Baddi (Himachal Pradesh) 82128

VMT Spinning Company Limited Baddi (Himachal Pradesh) 45120

Arihant Spinning Mills Malerkotla (Punjab) 113804

Anant Spinning MillsMandideep (Madhya

Pradesh)74496

Vardhman yarns Satlapur (Madhya Pradesh) 170528

Vardhman Fabrics (Yarns Division) Bhudhni(Madhya Pradesh) 60000

Vardhman Yarns and Threads Ltd. Spinning Hoshiarpur (Punjab) 60352

Spinning-Total   785080

  Rotors

Auro Spinning Baddi (Himachal Pradesh) 1248

Vardhman Fabrics Bhudhni(Madhya Pradesh) 2160

Total   3408

Yarn & Fibre Dyeing Units Location Production Capacity

Vardhman Spinning and General Mills, Dye

HouseLudhiana (Punjab) 20 Tonnes per day

Auro Dyeing Baddi (Himachal Pradesh) 35 Tonnes per day

   Fibre Dyeing   15 Tonnes per day

   Yarn Dyeing   20 Tonnes per day

Mahavir Mercerizing Unit Hoshiarpur (Punjab) 15 Tonnes per day

Total   65 Tonnes per day

Fabric - Weaving Units Location Production Capacity

Auro Weaving Mills Baddi (Himachal Pradesh) 264 looms

Mahavir Spinning Mills Baddi (Himachal Pradesh) 236 looms

Vardhman Fabrics Bhudhni(Madhya Pradesh) 400 looms

Total   900 looms

Fabric Processing Units ( Finished Fabric) Location Production Capacity

Auro Textile Baddi (Himachal Pradesh)50 million meters per

anuum

Vardhman Fabrics Bhudhni(Madhya Pradesh) 40 million meters per

anuum

Total  90 million meters per

anuum

Sewing Thread Business Location Production Capacity

Vardhman Yarns and Threads Limited (Unit -

I)Hoshiarpur (Punjab) 21 MT per day

Vardhman Yarns and Threads Limited (Unit -

II)Ludhiana (Punjab) 7 MT per day

Vardhman Yarns and Threads Limited (Unit -

III)Perundrai (Tamil Nadu) 3 MT per day

Vardhman Yarns and Threads Limited (Unit -

IV)Baddi (Himachal Pradesh) 2 MT per day

Total   33 MT per day

Steel Business Location Production Capacity

Steel Unit-Vardhman Special Steels Ludhiana (Punjab) 100000 MT per

Acrylic Business Location Production Capacity

Fibre Manufacturing Unit-Vardhman Acrylic

Ltd.Jhagaria (Gujarat) 18000 MT per annum

Globalization:

Vardhman ventured in to the global market in 1986 with an export value of one core to reach

exports of $150 mn in FY 2008-09. Little wonder then, that Vardhman, today, exports 40% of its

yarn production to more than 25 countries and has a strong presence in markets like the EEC,

USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East. Vardhman has a

share of more than 6% in total Yarn exports from India.

Its trusted, tested and reliable workforce, coupled with the latest technology, quality

consciousness, customer oriented services and strong logistics has given Vardhman an edge over

its competitors and in the world’s most quality conscious and price sensitive markets. Thereby

making Vardhman a truly international organization in terms of sourcing from and catering to the

world market.

Markets of Vardhman

Australia Portugal

South Africa Iran

Tunisia Morocco

Brazil Turkey

Bangladesh Russia

Belgium Saudi Arabia

China Singapore

Canada Sri Lanka

Colombia Spain

Egypt Switzerland

Germany Syria

Greece Thailand

Hongkong U.K.

Indonesia Ukraine

Israel Uruguay

Italy USA

Japan Venezuela

Korea Vietnam

Lebanon New Zealand

To face the challenges of the New World order, Vardhman attaches great importance to the development of its

main resource -People. At its core lies the recognition and respect for individual dignity and human values. It is

the caliber and professionalism of its people that has helped Vardhman maintain its leadership in competitive

environment. At Vardhman people understand the market expectations and competitive challenges. The

emphasis is on fostering innovation and creativity at work so that the employees can translate uncertainties into

opportunities and opportunities into accomplishments.

Corporate Social Responsibility

    Some of our CSR activities -

Sri Aurobindo Socio-Economic and Management Research Institute are engaged in the promotion of ed-

ucation, research and publications highlighting social and economic issues facing the society. The Insti-

tute runs a Human Resource Development Centre for providing career counseling and guidance to col-

lege students in Punjab. The teams of experts also visit the colleges in the state to prepare college stu-

dents for gainful employment in the industry.

Sprung from a keen desire to set up an educational institution in Ludhiana and inspired by the writings

of Sri Aurobindo and the Mother, the Trust has set up a college - Sri Aurobindo College of Commerce

and Management (affiliated to the Punjab University) with the mission to create an institution with dis-

tinction dedicated to the ideals of creating disciplined career oriented young people ready for going for

administrative and management roles in enterprises or to set up their own business as entrepreneurs.

  A Vardhman initiative to improve the yield of cotton in Punjab in 2001 when the State had suffered a shock

of crop devastation and area under cotton cultivation was dwindling, led to the experiment to adopt villages and

see whether concerted efforts in bringing knowledge to farmers could improve the yield of cotton. The

experiment was successful as it improved the yield of cotton to 873 kg/hectare in 2005 in adopted villages

where the average yield of cotton in the State of Punjab was 587 kg/hectare (world average - 700 kg/hectare). It

found mention in the President's broadcast on Technology Day (11/05/04) as a 'technological event which has

the potential to penetrate into our everyday lives'. The Village Adoption Program also found mention the

President's address to the nation on the eve of India's 56th Republic day. The President of India was gracious to

bless one of the participating Villages -'Gehri Buttar' (District - Bathinda) by his presence on December 10,

2005.

Vardhman is actively engaged in the activities of Nimbua Greenfield Punjab Limited (www.ngpl.co.in)

formed by a consortium of Industries of Punjab for developing a common facility for storage, treatment

and disposal of hazardous wastes generated by the Industry with a Government of India grant.

AWARDS

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SPECIAL ACHIEVEMENT AWARD IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SILVER TOP EXPORTER AWARD IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 BRONZE TROPHY IN PROCESSED YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 WORLD TROPHY IN HIGHEST EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 BRONZE TROPHY FOR HIGHEST GLOBAL EXPORT CATEGORY (OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 WORLD TROPHY IN HIGHEST EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 SILVER TROPHY FOR HIGHEST GLOBAL EXPORT CATEGORY (OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 GOLD TROPHY IN EOU/EPZ FOR EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 BRONZETROPHY IN MILL FABRIC EXPORTER CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2002-03 GOLD TROPHY IN EOU/EPZ FOR EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 1998-99 SILVER TROPHY

TEXTILE EXPORT PROMOTION COUNCIL 1997-98 BRONZE TROPHY

TEXTILE EXPORT PROMOTION COUNCIL 1996-97 SILVER TROPHY

GOVT. OF INDIA AWARD 1994-95, 1995-96 AWARD OF MERIT

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 BRONZE TROPHY (MERCHANT EXPORT CATEGORY FOR FABRICS)

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 GOLD TROPHY(MERCHANT EXPORT CATEGORY FOR FABRICS)

S P Oswal conferred with Padma Bhushan:

(The Padma Bhushan award has conferred to S.P. Oswal by The President of India, 

Ms. Pratibha Patil at Rashtrapti Bhawan as on 31st March, 2010.)

Porter’s Five Forces Model

Rivalry among existing competitors : Vardhman besides being the market leader faces a tough

competition from the established players like Oswal and Malwa. Both the competitors are

producing similar products with a little bit of price variation. The customers shift to these brands

looking at the variation in price. But a quality conscious customer always prefers to buy

vardhman products.

Threat of new entrants : Vardhman is also facing threat from companies manufacturing

readymade hosiery as they are quite fashionable, time saving and available at reasonable rates

and they are also facing threat from upcoming local hand knitting yarn manufacturing

companies.

Bargaining power of Buyers: Bargaining power of buyers is always high because if one

company sets higher prices of it`s product, then customer can easily shifts from buying it`s

product to it`s competitor`s product, so here customer bargaining power is high. There is one

more reason that if customer does not like the quality of one company`s product, then customer

has many options to shift to other company`s product.

Bargaining power of Suppliers : The bargaining power of suppliers is always high .

Threat of Substitutes : Vardhman is also facing threat from substitutes available in the market

i.e. products manufactured by Vardhman has many substitutes as other companies like Oswal

and Malwa also manufactures same quality products, so customer has many options to shift from

one company`s product to the other.

MARKET POSITION

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

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

Largest Dyeing Capacity of Fiber and Yarn

Largest Exporter of Cotton Yarn

Market Leader in Hand Knitting Yarns in India

Largest range of Textile products

Second largest producer of Sewing Thread in the country

Collaborations with specialist worldwide

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

First Indian Textile company to get ISO-9002 and IS-14002 certification

Exports to high quality conscious countries like Japan, Hong Kong, Germany, UK and

Switzerland.

Largest Producer of Hosiery Yarns, dyed yarn and Hand-knitting Yarn.

SWOT ANALYSIS OF THE VARDHMAN GROUP

STRENGTHS

Good Brand Equity

Good technological base with Foreign Collaboration

High Quality Standards

High Production Capacity

Own Research and Development department

Commitment for growth

Human Capital

Zero Defect and optimum production with zero wastage

Its culture and philosophy

WEAKNESSES

Comparatively high prices

Some products are of poor quality.

Lesser degree of promotional activity

Long Hierarchy

Not much outlets.

OPPORTUNITIES

As quality is good and prices are comparatively high, Vardhman can always easily liqui-

date stock pressure by slight reduction in prices.

As brand image is very good and production is too wide, Vardhman can have some good

customers with whom direct business can be established. With this Vardhman will have

better Quantity and Regularity of sales.

Strict payments are strengths at times as well as weakness. If a moderate policy, as per

present conditions are adopted, the dealers and customers shall be attracted to buy more

and regularly.

Shortened hierarchy shall provide hope for better customer service.

THREATS

Smaller players in the market are using Vardhman’s process as a shield to push their

product at lower prices.

Companies from south are entering into Ludhiana market.

Vardhman hand knitting yarn is also facing threats from readymade hosiery as people

prefers to buy it cause it is time saving, easily available at affordable prices which makes

them to shift towards it.

HR PHILOSOPHY

Across the boundaries of time and space, the best transmission and perseverance of culture,

values and philosophy is only through the hearts of people.

Employees in Vardhman are its most valuable resource and development of business and

of employees must go hand in hand.

Every employee is special and unique in his own field and has infinite potential to make

contribution to the organization.

Merit is the most important criteria for recruitment and reward.

Creativity and innovation in technology and management through our people is our com-

petitive edge

HR processes facilitate consistent improvement in performance, productivity and effec-

tiveness through mutually agreed stretched targets.

Continuously strive to improve quality of work-life for total job satisfaction and social

harmony for the employees.

HR prepares people to accept and adapt to change and learning as a way of life

HR promotes high standards of discipline at the workplace and compliance with the laws

of the land.

Prepares youth for executive role in business as a major social responsibility.

INTRODUCTION TO PROJECT

One cannot rely on theoretical knowledge imparted in the institutions. To maximize the

theoretical knowledge, it has to be accompanied by practical one. Lesson learnt in the classroom

helps us to understand the fundamental concepts of management and also facilitate in learning of

practical situations. The practical training helps us to provide necessary industrial exposure and

useful experience. It is therefore, very necessary that theoretical knowledge and practical training

should go hand in hand.

As an integral part of the curriculum, I had opportunity to do summer training at HAND

KNITTING YARN SALES OFFICE of VARDHMAN SPINNING AND GENERAL MILLS.

HAND KNITTING YARN

Yarn is a continuous length of interlocked fibers, suitable for use in the production of textiles,

sewing, crocheting, knitting, weaving, embroidery and rope making. Hand knitting yarn is a

special type of yarn which is knitted manually.

Hand knitting yarn is available in three packings at vardhman:

HANK

BALL FORM

LACHHI

HANK PACKING:

Hank packing is the highest weight packing in hank knitting yarn, with average 3kg yarn in a

packing. Standard package is 3kgs in hanks. In hank packing counts available are 2.5 in

1/2/3/4/6 ply. Hanks include many product varieties like millennium, crystal, brylon, sizzle,

khushboo, rabbit excel, butterfly, shinning star, sensation, etc. Millennium is considered one

of the best products with the sales point of view. Wide range of colors is available in hank

packing.

BALL PACKING:

Ball packing is the next range in hand knitting yarn, with average packing of 200gms of

packing. The packing is done in cardboard boxes with either 6 yarn balls having 25gms of

weight each and hence 150gms of packing. There are packing of 4 yarn balls also with each

ball weighing 50gm. Some of the major ball packing are soft and smart, cozy care, salsa,

Christina premium, blossom, lamb air etc. out of them soft and smart is considered the best in

term of sales following it is Christina premium.

LACHHI PACKING:

Lachhi packing is the hand knitting yarn packing available in 100gm packs. This is a small

packing targeting to the end consumer. It contains many varieties and product range like

microshine, pretty baby etc.

COMPETITORS OF VARDHMAN IN HAND KNITTING YARN 1. Oswal

2. Malwa

3. Rosy

4. Local small scale manufacturers of hand knitting yarn like Manchanda, Surbhi, Ganga

etc.

Amongst them Oswal is the biggest and the main competitor of Vardhman, Most of the products

manufactured by Oswal are of same quality as of Vardhman, which creates confusion in the

minds of many customers to buy which company`s product. There is also a very small variation

between the prices set by Oswal and Vardhman of their products. Vardhman is the leader in hand

knitting yarn segment whereas Oswal and Malwa are the followers i.e. whenever Vardhman

launch new product, Oswal and Malwa always try to copy that same product. In yarn segment

there are also some local players like Rosy, Manchanda, surbhi etc. who are also affecting

Vardhman`s market share. Vardhman is the most preferred brand amongst all, as customer likes

the quality of it`s product.

Report on Business Unit

Vardhman manufactures five major products which are Yarns, Fibre, Fabric, Sewing Thread and

Steel. Yarn contributes 47% to the total turnover of the Vardhman out of which Hand Knitting

Yarn contributes 4%. Vardhman is market leader in hand knitting yarn, it holds only 19% of the

market share

I had opportunity to do summer training at HAND KNITTING YARN SALES OFFICE of

VARDHMAN SPINNING AND GENERAL MILLS.

The Sales department has been divided into four section:

Sales Section: The main task of sales section is to satisfy the customers by supplying them

quality goods throughout India. The Officers takes decisions regarding the stock, credibility of

the parties and production planning.

Invoicing Section: This section undertakes the whole invoicing procedure. Generation and

verification of Bill, Collection of C-forms, to be provided are the major tasks of this section.

Accounts Section: This section maintains and records the accounts of all the parties(domestic

and local) of Vardhman. Collection of payment, Insurance claims, Interest and Incentives to be

provided are the major tasks of this section. The Details and accounts of each and every party is

sent to the corporate office by the clerks.

Despatch Section: This section looks after the branch transfer, stock in the warehouse, Packing

and dispatching of goods.

Objective of Sales Office

Customer satisfaction by providing quality products.

The Sales office is interlinked with other departments of vardhman in a following manner:

Commercial Department: The commercial department performs the task of purchasing the raw

material for the production and deciding the cost of the products. The commercial department is

informed by sales office about the requirement.

Production Department: The production department performs the task of producing the yarn.

The capacity of plant for producing hand knitting yarn is 15-20 tons per day. The requirements

are communicated by the commercial department and production is done accordingly.

Administrative Department: The Administrative department performs the task for hiring and

recruiting new employees, appointment of trainees, Promotions and transfers etc. Moreover it

also undertakes the task of security.

Research and Development: The research and development department plays a vital role as it

performs the task of Quality Check and also decides upon the new products to be launched.

Marketing Department: This department performs the task of deciding the marketing strategies

for the products, Promotional material, and various other activities.

Finance Department: This department performs the task of recording and maintains the

accounts of the company and parties. The Details and records of each party are sent to this

department by the sales office.

Material Department: This department performs the task of providing the packing material like

cartons, boxes and ropes.

Functional Products of Hand Knitting Yarn

Hank packing Ball packing Lachhi packing

Brilon Fairy angel Prime rose

Neelgiri Cozy care Microshine

Millennium Glamourous Pretty baby

Sparkle Salsa premium Winter shine

Crystal Glam and glitz

Sensation Soft n smart

Madonna Little angel

Kashmira touch Christina premium

Khushboo Caliber plus

Rabbit excel Blossom

Dreamz Smart fibre

Butterfly Lamb-fair

Indica Baby soft

Melody fine Elegance

Ultima

Venice

Sizzle

Ginni

Crazy

Deluxe

Jasmine

Mehak

Maria

Grammy

Shining star

Unique

Charming

Blooming

Desire

Delight

Dhamaal

RESEARCH METHODOLOGY

Marketing Research is the systematic design, collection and analysis of the data and reporting

of information and findings relevant to a specific marketing situation facing the company.

Research Technique

It is imperative to decide upon and document a research methodology well in advance to carry

out the research in a most effective and systematic way. This section describes the research

methodology adopted to serve the objectives of the study in an effective manner. Descriptive

Research technique is being used for this project.

Problem Definition

Vardhman’s hand knitting yarn have only 3-4% stake in its yarn segment. Though Vardhman is

market leader in hand knitting yarn, it holds only 19% of the market share is one of the biggest

challenges. With the passage of time the trend of wearing the hand knitted garments is changing.

The readymade market is taking over the market of hand knitting yarn. After a lot of discussion

decision has been made to identify the reasons for change in trend and decrease in demand of

hand knitting yarn. For this, proper research is required to know the current market scenario and

perception of dealers and customers towards this changing trend.

So as to take a competitive decision, research has to be conducted and accordingly the project

assigned is “ To Study of Current Market Scenario and effect of increase in price of Hand

Knitting Yarn”.

APPROACH OF THE PROJECT

By doing this research and by knowing the reasons for change in trends, Vardhman can decide

whether it needs to improve upon its marketing strategies. In this research, Past sales trend, need

for promotional activities, reasons for declining preference of hand knitting yarn and answers to

many other questions are being sought so that improvements can be made. After survey company

can judge the present scenario and take a corrective decision to capture the market share and add

another feather to its already decorated cap.

COLLECTION OF DATA

In this research project data is collected both from primary and secondary sources.

Primary Data: Dealers were personally visited and interviewed and the data was collected with

the help of questionnaire. The questionnaire is so designed so as to contain appropriate number

of questions and to satisfy all research objectives. The questionnaire contained both open-ended

and close-ended questions. Special care was taken to ensure that questions were simple and did

not lack clarity.

Secondary Data: The secondary data was collected from informational and company’s own

website.

Sample Design

In selecting the sample for the survey, special care was taken to ensure that correct results can be

obtained. Two districts of Punjab named Ludhiana and Jalandhar were covered for this project.

The samples were selected on the sole judgment of the interviewers so that the concerned sample

fit the criteria or possess the characteristics required for their study.

Sampling Technique

Sampling technique used for this project is judgmental sampling.

Sample Size & Break-Up

I had a chance to survey 24 dealers and retailers of hand knitting yarn and 15 customers to know

about the current market scenario and changing trend of hand knitting yarn.

DATA ANALYSIS AND IT`S INTERPRETATION FOR MARKET SCENARIO AND EFFECT OF INCREASE IN PRICE OF

HAND KNITTING YARN

Questionnaire for Dealers

Q1. How many brands of the following you deals with? Vardhman  Oswal Malwa All of above Others(please specify)………………………………

Brand Awareness No. of respondentsVardhman 4Oswal 3Malwa 3All of the above 12Others 2

Total 24

Q2. Which product do you sell? Hand Knitting Yarn Readymade Garments Both A & B

Products No. of respondentsHand Knitting Yarn 17Readymade Garments 5Both A & B 2Total 24

Q3. Which type of packing do you prefer?

Hank packing Ball packing  Lachi packing All Above

Type of packing No. of respondentsHank 6Ball 4Lachi 5All Above 9Total 24

Q4. What is the point of difference between Vardhman and all other brands ? Quality Quantity Price Service

Point of difference No. of respondentsQuality 15Quantity 5Price 3Service 1Total 24

Q5. For how long you have been in this business? Less than 10 years 10-20 years More than 20 years

No. of years No. of respondentsLess than 10 years 510-20 years 7More than 20 years 12Total 24

Q6. How much there is increase in price of Vardhman hand knitting yarn as compared to previous year?

Approximately Rs. 20 Rs. 50-100 Rs. 100-200

Increase in price No. of respondentsApproximately Rs. 20 3Rs. 50-100 15Rs. 100-200 6Total 24

Q7. Has other companies also increased their price as compared to Vardhman? Yes No  No Information

Responses No. of respondentsYes 19No 1No Information 4Total 24

Q8. According to you what is the reason for increase in price of Vardhman hand knitting yarn? Increase in fibre price Transportation charges Any other(please specify) …Labour………………………………………….

Reason No. of respondentsIncrease in fibre price 14Transportation charges 6Any other 4Total 24

Q9. Which company has most superior hand knitting yarn? Vardhman Oswal Malwa Other

Name of company No. of respondentsVardhman 20Oswal 3Malwa 1Other 0Total 24

Q10. How the increase in price will effect the buying behavior of customers? Increase Decrease Remains same

Effect of price No. of respondentsIncrease 3Decrease 12Remains same 9Total 24

Q11. Which are the other competitors of Vardhman in the market? Oswal Malwa Both oswal and malwa Other (please specify)…………………………………………………..

Name of company No. of respondentsOswal 7Malwa 5Both Oswal & Malwa 12Other 0Total 24

Q12. What ultimately consumer demands? Low price low quality High price high quality

Demand No. of respondentsLow price low quality 10High price high quality 14Total 24

Q13. Has Vardhman hand knitting yarn dominated the market in present era?

Yes No

Responses No. of respondentsYes 20No 4Total 24

Q14. Rank the factor that you think are the reasons for sale of hand knitting yarn on a scale of 1- 5?

Low cost Easy maintenance Advertisement More warmth Durability

Factors Mean Scores Rank

Durability 4.53 1

More Warmth 3.57 2

Advertisement 2.57 3

Easy Maintenance 2.37 4

Low Cost 2.15 5

Q15. What has been the sales trend of hand knitting yarn in recent years? Increasing Decreasing Fluctuating

Sales trend No. of respondentsIncreasing 11Decreasing 10Fluctuating 3Total 24

Q16. What do you think about the future demand of hand knitting yarn? Will increase Will decrease Remain stable

Demand No. of respondentsWill increase 6Will decrease 15Remain stable 3Total 24

Q17. Which promotional tools is Vardhman using? Posters and banners Dealer meetings Lucky draw schemes All of the above None of these

Promotional tools No. of respondentsPosters and banners 4Dealer meetings 5Lucky draw schemes 2All of the above 2None of above 11Total 24

Q18.Any suggestions- ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Thanks for the cooperation !

QUESTIONNAIRE

FOR CUSTOMERS

NAME ..................................... AGE................. GENDER.................

ADDRESS: .......................................................................................................................

Q1. How often do you knit? Daily  Weekly Monthly Yearly

Time period No. of respondents

Daily 0

Weekly 0

Monthly 6

Yearly 9

Total 15

Q2. For how many years are you using Vardhman hand knitting yarn?

1 year 2 year 5 years More than 5 years

Time period No. of respondents

1 year 0

2 years 2

5 years 3

More than 5 years 10

Total 15

Q3. What do you knit? Sweater Gloves Cap Socks

Type of product No. of respondents Percentage 

Sweater 10 67

Gloves 2 13

Cap 1 7

Socks 2 13

Total 15 100

Q4. Why do you use hand knitting yarn? Attraction Love Warm Durable

Reason No. of respondents

Attraction 4

Love 1

Warm 8

Durable 2

Total 15

Q5. Do you consider hand knitting yarn as?Fashionable……………………………………………………..Traditional

Consideration No. of respondentsFashionable 5Traditional 10Total 15

Q6. What type of packing do you prefer most?

Hank Packing Ball Packing Lachi Packing

Type of packing No. of respondents

Hank 3

Ball 9

Lachi 3

Total 15

Q7. What makes Vardhman better than other other brands? Quality Quantity Price Service

Point of difference No. of respondents

Quality 13

Quantity 1

Price 1

Service 0

Total 15

Q8. Will increase in price of Vardhman hand knitting affects your buying behavior? Yes No

Response No. of respondents

Yes 12

No 3

Total 15

Q9. Is price of Vardhman hand knitting yarn high as compared to other brands in the market ? Yes No

Response No. of respondents

Yes 12

No 3

Total 15

Q10. Which type of quality do you usually prefer? Plain Feather Fancy Raising  Other

Type of quality No. of respondents

Plain 5

Feather 4

Fancy 5

Raising 1

Other 0

Total 15

Q11. How many of the following are you aware of ? Vardhman Malwa Oswal Other(please specify)……………………………………………………………….

Name of the company No. of respondents Percentage 

Vardhman 0 0

Malwa 2 13

Oswal 2 13

Other 2 13

Both A &B 0 0

Both A & C 8 54

Both B & C 0 0

A,B & C 1 7

Total 15 100

Q12. Are you satisfied with the increase in price of Vardhman hand knitting yarn? Yes No

Response No. of respondents

Yes 3

No 12

Total 15

Q13. Are you satisfied with the services of dealers? Yes No

Response No. of respondents

Yes 15

No 0

Total 15

Q14. In future what would you prefer? Hand knitted goods Readymade garments

Type of goods No. of respondents

Hand knitted goods 10

Readymade garments 5

Total 15

Q15. Any suggestions- ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Thanks for the cooperation !

Findings

Most preferred Brand: Through our survey we found that Vardhman is the most preferred

brand amongst customers i.e. they demand vardhman yarn first and if it is not available in shop,

only then they buys other companies products.

Known for Best Quality: While conducting survey, I found that most of the customers buy

hand knitting yarn only because of it`s quality i.e. price and shades comes after that. Vardhman

is the only company which rises up to their expectations by providing them quality products with

more warmth and durability within it.

Change in trend of Hand knitting yarn: As we know that nowadays most of the people likes to

wear readymade hosiery as they feels it to be more fashionable and in trend rather than wearing

hand knitting yarn clothes, which leads to a big setback for many hand knitting yarn

manufacturing companies and causes a decline in its demand.

Tough Competition: We also found that there is a neck to neck competition between Vardhman

and Oswal and there are also some local players who are affecting the market share of both

above mentioned companies. Prices set by Vardhman and Oswal are pretty high which makes the

customer to buy local made products.

Hike in prices: There has been increase in prices of hand knitting yarn year by year. Due to this

reason many people have stopped knitting. If we compare the current prices of hand knitting yarn

with the previous year, we will find that there has been increase of around 100rs per kg which is

more than a sufficient reason for customers to divert from hand knitting towards readymade

hosiery as it saves both time and money.

Suggestions and Recommendations

Sales Promotion Activities: Vardhman should increase its sales promotion activities i.e. it

should give some promotional material or offers to the customers so that customer would more

prefer buying its products over it`s competitors. As we know that retailer is the only one medium

through which hand knitting companies can sell its products to the customer, so it should provide

him some incentives, advertising material and should hear their grievances and suggestions,

which might be beneficial for the companies in deciding it`s future prospects. Advertisement also

can prove to be an effective source of promotion. Vardhman should go for brand endorsement

from famous celebrities, which might influence the buyers to buy it`s product.

Attractive Packaging : Vardhman should go for attractive packaging to encourage the

customers to buy it`s products i.e. they should provide free knitting sticks and design books

along with the product which further might help in increase its products sale.

Affordable Prices: Prices of hand knitting yarn is increasing day by day which is the main

reason for many customers to stop knitting. Hand Knitting Yarn is mostly preferred by the

middle class women and women in rural areas, so company should set prices accordingly. Thus

hike in prices might lead to customers shift from hand knitting yarn to readymade hosiery.

Regular Inspection of Market : Company should make one inspection team and sends it to the

market for regular inspection and to check duplicacy of Vardhman products because many local

dealers sells inferior quality products with a tag of Vardhman on it to the customers which might

affects the goodwill of Vardhman in the market.

Increase in number of dealers: In my survey, I found that customer first preference is to buy

Vardhman products as it is of good quality but the dealers who were selling those products are

very less in numbers, which further gives an opportunity to the local retailers and dealers to sell

their product with a tag of Vardhman on it. There is also some lack of awareness amongst

customers as most of them doesn`t know from where to buy Vardhman`s product i.e. they don`t

have any information about Vardhman`s dealers present in the market. So, here Vardhman

should increase it`s dealers and makes the customer aware about them in order to avoid

duplicacy in the market.

Improve Quality : As we know that people buys Vardhman products, only because of it`s

quality, but most of the dealers and retailers of Vardhman surveyed, were of the opinion that

Vardhman should improve the quality of it`s some products as it is declining day by day, which

makes their customer to shift towards other company`s product.

BIBLIOGRAPHY

1.www.vardhman.com

2. www.ibef.org

3. www.googlescholar.com

4. www.interbrand.com

5. Marketing Management By Phillip Kotler

6. Marketing Research By Naresh K. Malhotra

ANNEXURE

QUESTIONNAIRE FOR DEALERS

NAME- ……………………….. ADDRESS- ………………………………………………………………………………….. ………………………………………………………………………………….

Q1. How many brands of the following you deals with? Vardhman Oswal Malwa All of above  Other

Q2. Which product do you sell ? Hand knitting yarn Readymade garments Both A&B

Q3. Which type of packing do you prefer? Hank packing Ball packing Lachi packing All of above

Q4. What is the point of difference between Vardhman and all other brands? Quantity Quality Price Service

Q5. For how long have you been in this business? Less than 10 years 10-20 years  More  than 20 years

Q6. How much there is increase in price of Vardhman hand knitting yarn this year as compared to previous year ?

Approximately Rs.20

Rs.50-100

Rs.100-200

Q7.According to you what is the reason for increase in price of Vardhman Hand kiniting yarn? Increase in fibre prices Transportation charges Any other(please specify)…………………………..

Q8. Have other companies also increased their price as compared to Vardhman?

Yes No No information

Q9. Which company has most superior hand knitting yarn? Vardhman Oswal Malwa Other

Q10. How much the increase in price will effect the buying behavior of customers? Increase  Decrease Remains same

Q11. Has Vardhman hand knitting yarn dominated the market in present era? Yes No

Q12. Which are the other competitors of Vardhman in the market ? Oswal Malwa Other (please specify)…………………………………………….

Q13. What ultimately consumer demands? Less price less quality More price more quality

Q14. Rank the factors you think are the reasons for sale of hand knitting Yarn on a scale of 1 to 5-

Low cost                                 Easy Maintenance                                Advertisement                                      More warmth Durability

Q15. What has been the sales trend of Hand Knitting yarn in recent years? Increasing Decreasing Fluctuating

Q16. What do you think about the future demand of hand knitting yarn?Will increaseWill decreaseWill remain stable

Q17.Which promotional tools is Vardhman using?Poster and bannersDealer meetingLucky draw schemesAll of aboveNon of these

Q18. Any suggestions- ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

Thanks for your cooperation !

QUESTIONNAIREFOR CUSTOMERS

NAME ..................................... AGE................. GENDER.................

ADDRESS: .......................................................................................................................

Q1. How often do you knit? Daily  Weekly Monthly Yearly

Q2. For how many years are you using Vardhman hand knitting yarn? 1 year 2 year 5 years More than 5 years

Q3. What type of packing do you prefer most? Hank Packing Ball Packing Lachi Packing

Q4. What makes Vardhman better than other other brands? Quality Quantity Price Service

Q5. Will increase in price of Vardhman hand knitting affects your buying behavior? Yes No

Q6. Is price of Vardhman hand knitting yarn high as compared to other brands in the market ? Yes No

Q7. Which type of quality do you usually prefer? Plain Feather Fancy Raising  Other

Q8. How many of the following are you aware of ? Vardhman Malwa Oswal Other(please specify)……………………………………………………………….

Q9. Are you satisfied with the increase in price of Vardhman hand knitting yarn? Yes No

Q10. Are you satisfied with the services of dealers? Yes No

Q11.Any suggestions- …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. Thanks for your cooperation