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Integrated ProjectVan Heusen

Submitted by Agnivesh Kumar - DFBM - 11058

UG IN FASHION BUSINESS MANAGEMENT(2011-2015)

Submitted to UGFBM-1 Faculty

(Department of Business & Technology)

30, November, 2011-11-30

Pearl Academy of Fashion

New Delhi

Declaration

This is to certify that this integrated project is a bonafide work of Agnivesh Kumar in fulfilment of Graduate in “Fashion Business Management”.

(2011-2015)

o Agnivesh Kumar -

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Acknowledgement

Apart from the efforts of me, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project.

We are highly indebted to van heusen store managers and Richa global pvt limited managers and colleagues for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

We would like to express my gratitude towards our pearl faculty Ms. Rekha DarMs. Tripti GuptaMs. Racha ImamMr. Tejram GuptaDr. Sunita Gupta KonwarMr. S.C KapoorMs. Preeti DewanMr. Piyush PandeyMs. Usha Aggarwal

For their kind co-operation and encouragement which help me in completion of this project.

We would like to express our special gratitude and thanks to industry persons for giving us such attention and time.

Our thanks and appreciations also go to our friends in developing the project and people who have willingly helped us out with their abilities.

Last but the foremost important we would like to thank each other (team member) for the being the best support though out.

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Table of content

1. Introduction 6-111.1.History 6 1.2.Comparative Analysis 71.3.Management team 7-81.4.Brand – Van Heusen

1.4.1.1. Overview 9 1.4.1.2. Background 10 1.4.1.3. Evolution 10-11 1.4.1.4. Swot Analysis 11

2. Elements Of Fashion 12-182.1.Departments 12-13 2.2.Segments 13-142.3.Innovation 142.4.World wear 152.5.Ghajini Collection 16 2.6.India Fashion 17

3. Market And Consumer Analysis 18-233.1.Visual Merchandise 183.2.Power Club 193.3.Branching Out 203.4.Indian Market 21-223.5.Consumer Behaviour 21-22-23

4. Accounting 24-324.1.Balance Sheet –Aditya Birla Novo Ltd. 24

4.2.Income Statement –Aditya Birla Novo Ltd. 25

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4.3.Balance Sheet – ITC 264.4.Income Statement-ITC 27-284.5.Ratio Analysis 29-304.6.Calculation and Working 29-30 4.7. Individual Graphs 31-32 4.8. Ratio Comparison 32 4.9. Comparison of Absolute Figures 33-34-354.10. Conclusion 35-36

5. Factory Visit – Richa And Company 37-405.1.Brief 37

5.1.1.1. Board Of Directors 375.1.1.2. Group Companies 38

5.2.Leading Customers 395.3.Department 39-415.4.HR And Merchandise 42-45

6. Conclusion 467. My Learning’s And Reflection 47-48

7.1.Suneha Pahwa 477.2.Prateek Kothari 48

8. Bibliography 499. Annex

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CHAPTER – 1

INTRODUCTION

Brand: Van Heusen

Company: Madura Garments (Aditya Birla Nuvo)

Ad Agency: JWT India

The brand van heusen, which is our topic of this project, is a children company to Madura Fashion and Lifestyle so to understand the origin of van heusen one has to study its parent

company first. Hence we start with the history of Madura Fashion and Lifestyle.

MADURA FASHION AND LIFESTYLEMadura Fashion & Lifestyle, a division of Aditya Birla Nuvo Ltd, is one of India’s fastest growing branded apparel companies and a premium lifestyle player in the retail sector. After consolidating its market leadership with its own brands, it introduced premier international labels, enabling Indian consumers to buy the most prestigious global fashion wear and accessories within the country.

HISTORY AND LINEAGEEstablished in 1988 by Madura Coats Limited, Madura Fashion & Lifestyle has its origins in the erstwhile Coats Viyella Plc, Europe’s largest clothing supplier. In December 1999, Aditya Birla Nuvo, an Aditya Birla Group company, acquired Madura Fashion & Lifestyle to become the undisputed leader in the readymade menswear industry in India. In 2000, the company became a wholly-owned subsidiary of Aditya Birla Nuvo.

Madura Fashion & Lifestyle is one of the fastest growing branded apparel companies, recording a blistering growth rate of over 25 per cent year-on-year.

The company’s brand portfolio includes product lines that range from affordable and mass-market to luxurious, high-end style and cater to every age group, from children and youth to men and women. Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England and People, all of which personify style, attitude, luxury and comfort.

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Madura Fashion & Lifestyle reaches its customers through an extensive network that boasts of about 850 exclusive and franchise stores, and over 2,000 premium multi-brand trade outlets, both within and outside India.

The company's lifestyle store, ‘The Collective,’ offers customers in Bangalore, Mumbai and Delhi a unique blend of global fashions, international trends and innovative customer services. Planet Fashion, the multi-brand, apparel-retailing arm of Madura Fashion & Lifestyle, housing the company's in-house and other brands, is one of India’s largest chains of stores.

Madura Fashion & Lifestyle has, for over a decade now, sourced technology, fabrics and garments globally. The company is a global supplier for sophist Madura Fashion & Lifestyle sources only from factories that are compliant with the Factory Act, and each factory is independently audited by the International Textile Services (ITS) and Société Générale de Surveillance (SGS) for international clients such as Louis Philippe, Marks & Spencer and Van Heusenicated international brands such as Marks & Spencer and Tommy Hilfiger.

COMPARITIVE ANALYSISCriteria

Established in

Peter England

1997

Allen Solly

1993

Van Heusen

1993

Louis Philippe

1989

Annual Turnover 400 crore 250 crore 250 crore 400 crore

Number ofStores 400 82 200 117

Age group 18-35 years 30 years 25-45 years 30 years

Starting price Range

Rs 1399 Rs 1099 Rs 1299 Rs 1099

MANAGEMENT TEAM Pranab Barua, CEO, Textile & Apparels

Ashish Dikshit, President, Madura F&L

N V Balachandar, Chief People Officer (Textiles & Apparel)

S Visvanathan, Chief Financial Officer (Textiles & Apparel)

Neeraj Pal Singh, Chief Information Officer (Textiles & Apparel)

Anurag Srivastava, Corporate Head – Strategy & Business Excellence

Executive Committee

Jacob John, Brand Head, Louis Philippe

Shital Mehta, COO, International Brands

R. Satyajit, COO, Casual Business

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Kedar Apshankar , COO, Peter England

Ajay Ramchandran - Brand Head, Van Heusen

Sooraj Bhatt – Brand Head, Allen Solly

Shoaib Farooqi, COO, Planet Fashion, International Business and Trade Sales  

Puneet Kumar, Vice President - Sales Operations

Sarthak Raychaudhuri, Head, Human Resources

Vikas Agarwal - Head, Commercial

Mohana Sundaram - Head, Controller

Dr Naresh Tyagi, Head - Product Development & Quality Assurance

R Parthasarathy, Head – Retail Business Development

Lal Sudhakaran, Head – Manufacturing, Madura Clothing

1 .Madura Fashion to increase Van Heusen outlets Madura Fashion & Lifestyle (Madura F&L), which markets the premium apparel brand Van Heusen in India, plans to open 50 to 60 new exclusive stores each year Van Heusen is currently available at 135 exclusive outlets, and the retail expansion would also include foraying into small towns and cities. By the end of fiscal 2011-12, the Van

Heusen brand will be available at 150 exclusive outlets.

2. Van Heusen eyes tier 2 & 3 marketsMadura Fashion & Lifestyle, India’s leading apparel manufacturer is aiming to raise its earnings through deeply penetrating the Rs. 600 billion garment market, and as such would now target smaller towns and extensively promote their premium brand Van Heusen there.The company intends to launch a minimum of 40 exclusive outlets across the country, every year, majority of which would be located in the tier-2 and tier-3 cities.Presently, the brand’s 120 exclusive outlets, with a majority of them in the metros and mega cities, contribute around 40 percent of its overall sales turnover of Rs. 6.5 billion per annum.Meanwhile, Madura Fashion, which is a subsidiary of the Aditya Birla Group, is optimistic that the launch of the new outlets would boost the brand’s overall turnover to Rs. 8.5 billion per annum.

3.Madura Fashion & Lifestyle - 'Most Admired Fashion Company of the Year'

The 11th edition of India Fashion Forum came to a glittering end with the Images Fashion awards. Images Fashion Awards (IFA) recognizes the true worth of the brands in the Indian fashion retail business. IFA 2011 gave awards across in 21 categories including the most admired brands across key categories like footwear, timewear, jewellery, to innovative & admired fashion retail formats, private retail labels and fashion retail concepts. Well-known fashion retail brands like Bata, Puma, Tanishq, Pantaloons, Lifestyle & Madura fashion & Lifestyle won IFAs in key categories. Amongst the regional retail winners included Kapsons (North), Sohum Shoppe (East), Jade Blue (West) and RMKV (South).

4 .Van Heusen launches biggest menswear brand store in India

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Van Heusen, India's fastest growing lifestyle & apparel brand which is positioned as the premium work wear brand for men, has launched its biggest flagship store in India, at Connaught Place in Delhi. With an area of more than 6,000 square feet, this store is not just the biggest exclusive Van Heusen store, but also the biggest brand showroom for menswear in India.

The Van Heusen showroom is a unique blend of the old world Connaught place, its architecture being restored to its pristine glory from outside, and the very modern & contemporary interiors. The store is located at the C Block of the Inner Circle at Connaught Place, a premium-shopping destination of Delhi.

The store is situated at two levels - with the ground floor housing shirts, knits, trousers, and accessories over 1500 square feet. While the first floor spread out over 4500 square feet, is dominated with suits. On both floors, the merchandise offered is divided into distinct categories like World wear, Informals, New Arrivals, Accessories, etc. Spacious trial rooms and value-added services like free alteration; free home delivery, consumer loyalty

programmes and telemarketing services ensure a delightful shopping experience.

VAN HEUSAN

• Launched in 1990• Rs.225 crore brands• Selling 1.5 million garments a year,

Van Heusen is yet another success story from the Madura Fashion & Lifestyle stable. The brand operates under license to Madura Fashion & Lifestyle in India and South East Asia. A premium lifestyle brand, Van Heusen assiduously follows the company mandate; fashion for the corporate world. The brand’s target audience is the successful, sophisticated, erudite,

multi-faceted professional.

OVERVIEWFor the Van Heusen customer, elegance and style are not just fads, but a philosophy. And therefore, keeping their tastes in mind, Van Heusen was opposed to the conventional nine-to-five formal wear. Instead, the brand makes available a 24/7 self-expression range of garments to their target audience. With more than half of India’s population under 25, it was not a surprise when Van Heusen moved from targeting only the 25-45-year-old businessman

BACKGROUNDVan Heusen is a premium lifestyle brand for men, women and youth. The brand embodies fashion for the corporate and reflects the current expression of elegance in today's context. Van Heusen believes that the design drivers for the brand are fashion and sophistication. The brand covers all aspects of an individual's clothing needs, be it corporate wear, casual wear, party wear or ceremonial wear, making it a complete lifestyle brand in the truest sense. The core audience is professionals and corporate executives - men and women who are successful, focused, articulate, well-travelled, and confident and have a sense of style about them. They pursue success just as they do their other interests and passions, learning and exploring everything that comes their way. Van Heusen aims to be a complete lifestyle

brand and plans are to double the number of stores to 200.

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POWER DRESSINGThe brand positioned itself on the platform of Powerful + Fashionable executive formal wear. The brand introduced the concept of “Power Dressing " implying that the brand users are

those who occupy the powerful places in the corporate world.

EVOLVE EVERYDAYThe above statement holds true for both business and fashion. When it comes to dynamic markets and opportunities, one always has to be a step ahead and evolve accordingly. It is no different when it comes to the way you choose to dress in a corporate environment. Through its Evolve Everyday new thought, the brand urges its consumers to be all that they want to be, all that they can be by exploring different sides of their personality to grow and become more with every experience they encounter.

EVOLUTION“It is said the only thing constant is change and in the world of Van Heusen there is

no room for stagnation”1. The humblest of beginnings mark the foundation of Van Heusen. Moses Phillips begins selling hand sewn shirts from a small wooden handcart, laying the foundation for a company which would later be called Van Heusen.

2. The company's designers dream up the greatest invention on shirts – The Collar, a process that involves wearing cloth at curved angles. John Van Heusen begins a nine year quest that leads him to invent the world's first collar.

3. Anywhere in the world, leaders follow the same rules. And wear the same label. Ronald Regan, the future president of Van Heusen. We don't call it 'Power Dressing' for nothing. America, Anthony Quinn, and Tony Curtis, to name a few, become endorsers of Van Heusen

4. An empress decides to get new clothes. Queen Elizabeth issues a Royal warrant to Van Heusen, appointing Van Heusen the official clothier for Buckingham Palace

5. The story of Van Heusen is the story of many firsts. Van Heusen continues to create landmark innovations like Ice Touch, Durapress, Best White, Techno cotton, and the intelligent clothing range

6. It reached the top as the #1 dress shirt in America… and the rest of the world. Today, Van Heusen is also the world's largest selling dress shirt brand

7. Available wherever there are horizons… and men to conquer them. Today Van Heusen commands more than a billion US dollars in retail sales worldwide. We are available in 70 nations spread across 5 continents.

SWOT ANALYSIS

STRENGTH : SOLID DISTRIBUTION CHANNEL. MANUFACTURING CAPABILITIES WITH INTERNATIONAL QUALITY GOOD CUSTOMER KNOWLEDGE. CUSTOMER RELATIONSHIP VERY STRONG.

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OPPORTUNITIES : TECHNOLOGICAL ADVANCES. CHANGE IN CUSTOMERS CHANGE. KEEPING CUSTOMER SATISFIED WITH THE SUPPORT OF SERVICE OFFERS.

WEAKENESS : UNEDUCATED STAFF. LACK OF NEW PRODUCTS. NEED TO IMPROVE MARKETING STRATEGIES.

THREATS : CHANGE IN GOVERNMENT POLICIES. EMERGING OF NEW BRANDS. SIMILAR PRODUCT IMPORT FROM CHINA OR ANY OTHER COUNTRY.

These are some of the threats that are being faced lots of brands worldwide

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CHAPTER 2

ELEMENTS OF FASHION

DEPARTMENTSVan Heusen ManSince its launch in 1990, Van Heusen has consistently tracked and understood the Indian male. In the last two decades the clothing preferences of Indian men have undergone many stages of evolution. At each turning point Van Heusen has stood witness to these changes – and has been ahead of the curve when it has come to forecasting emerging trends and making it accessible to the Indian consumer. No longer is the workplace leader as aggressive and abrasive as he used to be. The 24/7-a-week self-expression in preference to the nine-to-five office wear. Work has stepped out of the office. Most importantly, the Van Heusen consumers are those who believe strongly in leaving a mark where ever they go, standing distinct and tall even among a group of like-minded successful people.

Van Heusen WomanThe world is changing. From socio-conditions to trends in fashion, the world as we know it is constantly evolving. When it comes to the genders too, there are no strict lines or rules to define role responsibilities. Women are no longer confined within the four walls of their homes. They compete with men on the same platforms and are at par, if not better. But partaking in this race means that they have to strive harder to get what they want from life. Whether it's their responsibilities on the job, at home or their closets, they're perfectionists constantly thriving to outdo themselves.And that's where Van Heusen wishes to assist them, just as a humble aide would!The Van Heusen Woman brand offers women accessible, classy & complete wardrobe solutions; ones that are chic, sharp and fashion forward providing them looks that are uniquely suited to them, so that they can be confident and fashionable, both on and off the job. 'Evolve Everyday' is spot-on considering how in the midst of change; the professional woman of today constantly seeks to keep her place in the sun.

V Dot

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The party scene will never be the same again. The V Dot line promises to give club wear a complete makeover. An eclectic collection that comprises an outstanding line of shirts, trousers, denims, knits, jackets, suits and blazers combined with cutting-edge fashion sensibilities, superfine fabrics, surface embellishments and perfect accessorising, thus making it distinctive, bold and yet sophisticated, to say the least.V Dot has continued to set a scorching pace, and is today the fastest-growing club wear brand in India. Top actor John Abraham is the brand ambassador for V Dot. Stacked across exclusive Van Heusen stores across India, the brand is centred on the ever-shifting tastes of the youth.

V Dot inherits its sophistication from Van Heusen, the premium lifestyle brand for men with its core strength being its extensive formal wear range. The brand embodies corporate

fashion and reflects the expression of elegance in today's context.

Van Heusen SportVan Heusen redefines sport-inspired casual wear with ‘Van Heusen Sport’. Breaking a few rules of traditional sport-inspired wear, the range adds a dash of fashionable modernity to the iconic 60s Ivy League ‘day chic’ look. The result is a whole new genre - Fashion Sport that blends classic American sport fashion with impeccable Italian aesthetics. The result is a fashionable line that can be worn to the office with as much élan as at a brunch.

The line is made up of soft shirts, fine-knits, laundered chinos and easy-to-wear semi-lined jackets in exceptional washes designed to give you a drape quite unlike anything. The range features fine sporting elements that elegantly round off the sporty look. Impeccably crafted inside out, these garments are designed to look as good as new even after repeated wearing and washes.

FASHION SEGMENTSVan Heusen comprises of three main categories in each Product category: 1-Classics2-Contemporary3-Fashion

ClassicsThey a re t hose des igns o r s t y l es , wh i ch a re no t changed and a re p resen t i n eve ry season and a re p resen t i n eve ry season and it requires least modification. These are mainly USPs of the brand

Fabrics And Textures - Premium Giza cotton , Organic Cotton , 100% Cotton light fabrics (World Wear) , compact cotton , 2 ply fines cotton

Colours – light blue , plain white , beige , silver colours

Collars – medium cut away and regular

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Cuffs – two button cuffs and French cuffs

Prints – plain , light stripes , pin stripes , dobby

ContemporaryThey are those designs and styles that require little modification. They are mainly present season trend (based on market research). These comprise the designs or styles that are trendier and are in present demand

fabrics and textures – Egyptian cotton , premium Giza cotton , polynosic cotton , Irish linen

colours – black , grey , blue , lilac , white

collars – regular , Chinese , cut away , button down

cuffs – basics and extra cuff lings

prints – madras checks , Bengal checks , plains , candy stripes

FashionThey are the innovative designs or styles, which set an upcoming trend in the market. It provides an edge over competition. Most of the designers work on the fashion categoryand tries to convert it into contemporary product or design.

Fabrics and textures – 100% cotton , 75%cotton +25%viscose , 97%cotton +xla ,

35% Cotton+29% Nylon +32% Rayon. Colours – black , blue , purple , maroon

Collars - long , medium and small cut away , stiff collars

Cuffs – variable

Prints – window pane checks , candy stripes , dobby

INNOVATIONFor over a decade now, Madura Fashion & Lifestyle has been at the cutting edge of fashion and innovation, and has sourced fabrics, technology and products globallyThe latest finishes, fabrics, fits, technologies and product development in fashion and clothing styles are incorporated into their brand portfolio. Continuous product

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innovations and value proposition provides the much-needed support in sustaining product leadership. This helps maintain brand equity for best-in-class merchandise in the apparel segmentTrends, fashion knowledge, technology and process help in product development and innovation, creating and adding significant value to the fibre-to-fashion value chain. The company has developed and successfully launched many breakthrough products in the last decade

Eco Story: Van Heusen kicked off the concept of shirts made from 100 per cent organic cotton, grown in a sustainable and environmentally-friendly manner. Launched as 'Eco Concept' for men, the shirts have a naturally soft feel to them.

Best white formal shirt: Van Heusen's formal white shirt is fully taped for pucker-free seams. Made of 100 per cent wrinkle-free cotton, it not only has the highest whiteness index of 156+ CIE, but also excellent colour retention with the whiteness remaining at the 150+ CIE index even after 25 washes.

Best Non-Iron shirt: Van Heusen's Best Non-Iron shirt is made from 100 per cent two-ply cotton and has a DP rating of 3.8, which gives it superior lustre. It offers the perfect combination of premium fabric and world-class manufacturing set-up. A Premium dress shirt with superior lustre and good craftsmanship, Van Heusen Non-Iron shirt has been a huge hit among consumers.

Dura Press Ultima trousers: Van Heusen's premium two-ply cotton trousers have wrinkle-free treatment, breathability, and moisture management for superior wearing comfort.

WORLDWEAR INTERNATIONAL WARDROBEWorld wear International Wardrobe Collection, Van Heusen's extension of the best-selling range of corporate wear for the global Indian, has been launched to coincide with the autumn - winter season. With World wear International Wardrobe, Indian corporate chiefs can now exude a truly suave and stylish image. This exclusive collection of quality boardroom-wear with contemporary global styles, addresses the needs of the image-conscious corporate executive who believes in being well turned out at the workplace. .

Van Heusen presents four distinctive looks inspired by the business capitals of the world, the contemporary New York wardrobe, the dressy Milan wardrobe, the classic London wardrobe and the minimalistic Tokyo wardrobe. The fine styling and detailing that has gone into this collection goes beyond the ordinary. The craftsmanship is matched with the best in the world

and is perfect for those corporate chiefs who take the world in their stride.

1. Milan - The Milan wardrobe adds a dressy flourish to formal wear. The shirts from this collection come with a stylish double collar with buttons, which looks formal by day and dressy for the evening. The trousers are available in elegant hounds tooth in premium terry wool. The ties have motifs bringing the dressy theme upfront. The whole range is available in formal, classic colours, which are acceptable in boardrooms worldwide. Suits from the Milan line are crafted to perfection matching the stylish look and providing the necessary comfort

2. New York - The New York wardrobe from Van Heusen World wear is bold and has the contemporary style of formal wear. The finest attention to detail in craftsmanship is seen in every stitch and weaves. The shirts from this collection have notched cutaway collars that

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add a clipped look to formal shirts. Ties are bold and have unique weaves and patterns. Trousers are in stretch techno blends, which are comfortable in spite of the cutting edge

image. Suits are crafted to perfection giving the ultimate look and comfort.

3. Tokyo - The Tokyo line also has a collection of suits, shirts, trousers and ties inspired by the clean, minimalistic lines of Zen. This wardrobe creates a look that lets the wearer master the art of winning. The shirts have subtle yet distinct contrasts on the inside of the cuffs and the shaped collar. The shirts are created with fabric that has a darker tone on the reverse. The trousers have a streamlined design, highlighted by understated solid shades in premium super 100s and 90s wool blend. The ties come in fine textures and solid tones. The suits are impeccably designed in poly wool. The suits are available in neutral shades of grey, mélange, black, blue and earth

4. London - To create classics that never go out of style the London collection has a collection of shirts, trousers, suits and ties inspired by the legendary city. Shirts from this collection are in solids, checks, dobby’s and stripes with white collar and cuffs. The classic formal trousers with self-stripes and micro designs are engineered from super premium wool cashmere. To add to the London theme the formal classic ties come in printed silk. The suits are in stripes including the traditional banker’s stripes in premium wool blends.

The Collection is available nationwide in exclusive Van Heusen stores, Planet Fashion, Trouser Town and leading multi-brand outlets. The shirts are priced from Rs. 1295/- onwards and the trousers are available from Rs.1495/- onwards. Suits are priced from Rs. 6999/- onwards and ties from the collection are priced at Rs. 599/- onward

GHAJINI COLLECTIONWith Amir Khan's much awaited movie Ghajini releases on December 25, Van Heusen unveiled a special collection under the name 'Van Heusen Ghajini Collection'. The designs are inspired by Aamir's personality as well as the character he plays in the upcoming movie Ghajini. In the movie Aamir will be seen in the sporting shirts, trousers, waist coats, ties, suits, blazers, and cufflinks from Van Heusen.

Shital Kumar Mehta, chief operating officer, Van Heusen, elucidates, "India and the Middle East are our core markets. We are expecting a 25 per cent increase in sales from this latest collection. We believe that Ghajini is going to be the biggest blockbuster. Aamir is playing the CEO of a telecom company and the collection, we have designed, is exclusive. We are proud to partner with Ghajini and dress none other than Aamir Khan, the man himself, who embodies the sentiments of Van Heusen as a brand. Thus it was a strategic opportunity.Priced at Rs 1,299 onwards, Van Heusen Ghajini collection is available at the company stores. Unveiling this exclusive collection Aamir Khan also walked the ramp as the show stopper for a fashion show held in Mumbai.

INDIAN FASHIONToday’s fashion is foreseeing the Men’s collection for the high-tailored stitches ranging from the luxury dressing to the Casual Urban attire. French farming/ sheath-sleeve shirts, edged

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jackets & narrow-crutch Trousers are ‘IN’ this season for the Contemporary wear. The fabrics and weaves are significant to the silken touch, and fine-cotton for the Men’s apparel. The colour palette for the contemporary collection range from Whites, tints of ivory to charcoal black, the camel’ and plum’ shades making the predominance this Spring- Summer!

For the collection of today, the luxury dressing can be stated to the high-textured criss-cross weaves, the seam-edged stitches ,the silk textured apparel for men! The collection can be stated as the antique jamewar churridar & the silk weave kurtas creates the style statement as the Rohit Bal’s collection justify. Subdued embroideries’, gold work & the fabric of linens, cottons, jerseys makes a precise edge to the Men’s attire. The colour palette gets its inspiration for the Burnt Orange, Black Pastel (Chambrey) shades of green, orange & Mauve…!

The Casual dressing signifies the collection for the theme of Masculinity & Bold attire. The colour palette gets its utmost significance for the selective choice of dressing ranging from the charcoal black, Olives and Prussian blue, Mesh & Burgundy. The selection of the collection assort from the front edged shirts, calf-length trousers, the checked pattern & the seam-edge stitch as the collection of the designer Aslam Khan reinvents in his collection at the Van Heusen India Men’s Fashion.

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CHAPTER 3

MARKET AND CONSUMER ANALYSIS

MERCHANDISE Visual merchandising today forms a critical element of retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walk-ins, there is also in-store decor that is designed to enhance the customer’s comfort and

convenience while shopping and overall, offer a superior shopping experience.

South Delhi:

• Area – 1200 sq/ ft

• Customers – 20 to 30 per day.

• Theme – Fashion and sportswear.

• Colors – Silver , Purple, Red

• Daily sales – 40000-60000

Central Delhi:

• Area – 2000 sq / ft

• Customers – 30 to 40 per day.

• Theme – Formals and sportswear.

• Colors – Blue , mauve, yellow

• Daily sales – 50000

North Delhi:

• Area – 1100 sq / ft

• Customers – 20 to 25 per day

• Theme – sportswear

• Colours – red , blue , white

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• Daily sales – 40000 to 60000

West Delhi:

• Area – 1500 sq / ft

• Customers – 50 to 60 per day

• Theme – formals

• Colours – lilac , grey , blue

• Daily sales – 70000 to 80000

The strong point of Van Heusen is its ability to lead the market with its fashionable range. The high quality, never compromising premiumness (exclusivity) and understated image has contributed a lot to the growth of this brand. The campaigns of Van Heusen (except for the early ones on Power Dressing) were never clutter-breaking but were enough for the discerning customers to patronize the brand.

POWER CLUBAs a preferred Van Heusen customer, you have exclusive access to special privileges and personalised attention at our stores.

Now, each time you shop with us, you will be awarded points based on the value of your purchase. These points can be redeemed at any of our exclusive stores across India for more Van Heusen merchandise of your choice. Simply present your Power Club card at the store to use your points.

As a Power Club member, you also have access to previews of new collections, invitations to fashion evenings as well as other out-of-store privileges that match your lifestyle.

We look forward to seeing you at our stores regularly.

Welcome to the privileges of membership, in Classic, Silver and Gold

A snapshot of your privileges depending on your membership status:

Your Privileges Classic Silver Gold

In store personal assistance

Exclusive trial rooms at select locations

Home delivery of altered garments

Valet facilities at select locations

Pick-up / drop for garment exchanges

Alerts / Exclusive previews of new collections

Alerts / Exclusive sale previews

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In-store stylists (on special occasions)

Van Heusen: Branching outBut retail presence alone does not guarantee success in a highly fragmented market such as apparels. The organised apparel market in India is estimated at Rs 10,000 crore, and Van

Heusen claims to have an 8 per cent share in that. And the brand knows it has to innovate to stay ahead of the pack. “Although we have always been known for our formal wear, we realised club-wear was gaining favour among the youth. We decided to experiment with a casual range called ‘Informals’ and it was a huge success. Continuing with that, we launched V Dot in 2006 as its extension,” says Ajay Ramachandran, brand head, Van Heusen.

The target consumers for the conventional formal clothes were professionals in the age-group of 35-37 years. With V Dot, the brand lowered the age bar to target the youth (25-30 years). In the same year it introduced Van Heusen Women, and in March 2011 it launched Van Heusen Sport, a casual range. “In the face of stiff competition, a company has to look for new avenues for growth. Hence, we introduced all these different lines,” adds Ramachandran.

Continuing with the branching-out strategy, the brand is planning to enter the non-apparel segment with a range of footwear to be launched in November this year. It is also eying other segments like luggage and eye-wear.

The brand is set to launch a new television commercial as well as print ads featuring John Abraham. To support that, it has a nationwide marketing and promotional campaign chalked out. “We plan to have outdoor campaigns all over the country. We started with Kerala to cash in on the Onam festivities. Next we will move towards the east during the puja period. This way we’ll move all over the country to make our presence felt,” adds Ramachandran. The brand has roped in JWT for advertising, and the budget is split 60:40 between television and print.

INDIAN MARKET

The consumption pattern of the country or the consumer depends upon the buying power of the individual specifically the youth of our country. For the matter of consumer behaviour a brand has to play an important role in making its mark in the minds of the people.

The Indian consumer today is highly aware about the product, price, quality and the options available with him. The purchasing is done by keeping all these factors in mind. Today, price is not the only the factor as it was a few years back when prices played a major role in purchasing power of the individual

India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.l.

Different Segment of Indian Consumers:

20

1. The Socialites: Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods. They are always looking for something different. They go for high value, exclusive products. Socialites are also very

branding conscious and would go only for the best known in the market.

2. The Conservatives:

The Conservatives belong to the middle class. The conservative segment is the reflection of the true Indian culture. They are traditional in their outlook, cautious in their approach towards purchase. Slow in decision making, they seek a lot of information before making any purchase. They

look for durability and functionality but at the same time is also image conscious.

3. Youth Segment:The rise of generation next has been written about. They are global in their worldwide view and have been exposed to enormous information. They are expected to be at the forefront of creating a new, modern, west-embracing consumer society demographic dividend that will drive economic growth.

Challenges facing Indian retail industry

The tax structure in India favours small retail business Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

CONSUMER BEHAVIOURPossibly the most challenging concept in the marketing of a product is to deal with understanding the buyer behaviour. The attitude of Indian consumers has undergone a major transformation over the last few years. The Indian consumer today wants to lead a life full of luxury and comfort. He wants to live in present and does not believe in savings for the future. Due to fast growth of the services sector per capita income of people of India is also increasing. The number of middle class is increasing due to another fact that people are fast shifting from agriculture to the services and industry sector where growth prospects are reasonably high as compared to the agriculture sector which is showing slow growth. Though are country earlier was an Agrarian Economy. Now people are shifting their minds more towards other services as compared to agriculture.

Consumer behaviour is affected by a lot of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole. Thus ,in buying process consumer plays

21

a very important roles .Even ,due to various changes around the world likewise changes in technology ,promotion of media , focus more on newspaper and magazines has certainly played a very important role in changing the mind of the people toward buying a product

RESEARCH OBJECTIVE:

To study the consumer behaviour with respect to Van Heusan

RESEARCH DESIGN

Descriptive

DATA COLLECTION

Primary data: Collected directly from customer’s Secondary data: Secondary data is taken from company website, broachers,

company register Data collection method: survey

SAMPLING PLAN

Sampling unit- Van Heusen customer Sampling size- 10-15, duration: 3-4 days.

RESEARCH ANALYSIS

Q1 Age group

Finding: it shows that most of the people buying the brand van heusen are within the age group 25-35 years.

Q2 Occupation

Finding: As the USP of Van Heusen is corporate wear it is at times misunderstood with it being just for the corporate sector. But with the research carries one can say it no doubt caters to the corporate in majority they even serve the intellectual class as well.

Q3 did the product purchased from Van Huesen satisfy you?

Q4 would you like to purchase goods from this company again?

Finding: With the research carried out it has been found that about 12 out of 15 customers are pretty satisfied with the brand van heusen and would like to buy the brand again.

Q5 what brings you back to the brand?

Finding: Through research it has been found that fittings and style are important factors that brings the customers back to buy the brand

Q 6 how often do you visit the brand?

Finding: Most customers visit van heusen store once in every two months

22

Q 7 Are you satisfied with the after sales services or updates from the brand about new collections and sales?

Finding: customers seem to have receiving information through Short Message Service (SMS) often about the new collections etc and are satisfied.

Q 8 If not van heusen which brand would you choose?

Finding: Zodiac or Wills Lifestyle

On the basis of the secondary data collected from the brand stores managers and bill records it can also be stated that the spending power of van heusen customers on an average is 5,000-10,000.

Hence we can conclude by saying that the brand image is well handled, and the customers are satisfied with the brand and even the marketing strategies overall

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CHAPTER 4

ACCOUNTING PROCESS

Balance sheet – Aditya Birla Group

Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007

  Rs.Cr Rs.Cr Rs.Cr Rs.Cr Rs.Cr

SOURCES OF FUNDS:

Share Capital 113.61 103.11 95.01 95.01 93.31

Reserves & Surplus 5287.2 4558.47 4026.73 3928.85 3031.24

Total Shareholders’ Funds 5400.81 4661.58 4121.74 4023.86 3124.55

Secured Loans 1380.61 2074.85 2217.07 1856.72 2071.62

Unsecured Loans 1906.59 1565.17 2282.14 886.7 760.21

Total Debt 3287.2 3640.02 4499.21 2743.42 2831.83

Total Liabilities 8688.01 8301.6 8620.95 6767.28 5956.38

APPLICATION OF FUNDS:

Gross Block 3953.59 3564.71 3290.16 3111.78 2653.15

Less: Acumen. Depreciation 2183.55 2012.49 1813.95 1680.89 1548.9

Net Block 1770.04 1552.22 1476.21 1430.89 1104.25

Capital Work in Progress 87.96 263.06 128.78 70.73 203.88

Investments 5477.4 5435.85 5712.39 4007.33 3849.39

Inventories 1203.24 876.34 747.6 776.6 475.26

Sundry Debtors 1156.25 693.33 887.23 753.19 595.99

Cash and Bank Balance 21.31 14.31 89.81 97.15 22.74

Loans and Advances 558.39 681.35 557.7 548.96 358.4

Current Liabilities 1448.09 1096.6 882.33 784.09 593.88

Provisions 138.49 118.26 96.44 133.48 59.65

Net Current Assets 1352.61 1050.47 1303.57 1258.33 798.86

Total Assets 8688.01 8301.6 8620.95 6767.28 5956.38

Contingent Liabilities 1058.49 788.01 922.32 740.8 331.14

Income statement – Aditya Birla Group

  Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007

  Rs.Cr Rs.Cr Rs.Cr Rs.Cr Rs.Cr

INCOME :          

24

Sales Turnover 6640.2 4950.46 4965.3 4128.34 3554.84

Excise Duty 254.53 158.5 211.08 212.8 157.13

Net Sales 6385.67 4791.96 4754.22 3915.54 3397.71

Other Income 116.87 106.43 113.96 95.95 92

Stock Adjustments 163.28 -5.06 17.89 83.17 45.19

Total Income 6665.82 4893.33 4886.07 4094.66 3534.9

EXPENDITURE :          

Raw Materials 3549.21 2391.2 2564.69 2061.78 1782.87

Power & Fuel Cost 520.98 431.57 537.38 357.01 333.75

Employee Cost 470.23 335.78 273.91 244.89 183.99

Other Manufacturing Expenses 358.62 317 315.25 303.38 249

Selling and Administration Expenses 678.6 490.32 465.8 358.96 286.09

Miscellaneous Expenses 118.07 92.96 110.14 108.51 72.4

Less: Pre-operative Expenses Capitalised 0 0 0 0 0

Total Expenditure 5695.71 4058.83 4267.17 3434.53 2908.1

Operating Profit 970.11 834.5 618.9 660.13 626.8

Interest 281.08 334.1 290.64 204.47 195.4

Gross Profit 689.03 500.4 328.26 455.66 431.4

Depreciation 193.95 180.1 165.96 141.1 120.32

Profit Before Tax 495.08 320.3 162.3 314.56 311.08

Tax 120.25 43.2 41.8 42.39 67.56

Fringe Benefit tax 0 0 4.12 3.86 3.39

Deferred Tax -4.86 -6.3 -21.05 25.24 15.16

Reported Net Profit 379.69 283.4 137.43 243.07 224.97

Extraordinary Items 3.09 6.19 3.95 6.11 1.82

Adjusted Net Profit 376.6 277.21 133.48 236.96 223.15

Adjust. below Net Profit 0 -139.6 0 0 0

P & L Balance brought forward 17.18 86.03 21.06 16.9 0.45

Statutory Appropriations 0 0 0 0 0

Appropriations 368.68 212.65 72.46 238.91 208.52

P & L Balance carried down 28.19 17.18 86.03 21.06 16.9

Dividend 62.43 51.51 38 54.63 51.32

Preference Dividend 0.01 0 0 0 0

Equity Dividend % 55 50 40 57.5 55

Earnings Per Share-Unit 32.56 26.74 14 24.61 23.34

Earnings Per Share(Adj)-Unit 32.56 26.74 14 24.61 23.34

Book Value-Unit Cur 475.42 438.52 394.09 383.78 334.86

Balance sheet – ITC LTD.

  Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007

  Rs.Cr Rs.Cr Rs.Cr Rs.Cr Rs.Cr

25

SOURCES OF FUNDS:

Share Capital 773.81 381.82 377.44 376.86 376.22

Reserves & Surplus 15179.46 13682.56 13357.64 11680.81 10060.86

Total Shareholders’ Funds 15953.27 14064.38 13735.08 12057.67 10437.08

Secured Loans 1.94 0.00 11.63 5.57 60.78

Unsecured Loans 97.26 107.71 165.92 208.86 140.10

Total Debt 99.20 107.71 177.55 214.43 200.88

Total Liabilities 16052.47 14172.09 13912.63 12272.10 10637.96

APPLICATION OF FUNDS:

Gross Block 12765.82 11967.86 10558.65 8959.70 7134.31

Less: Acumen. Depreciation 4420.75 3825.46 3286.74 2790.87 2389.54

Net Block 8345.07 8142.40 7271.91 6168.83 4744.77

Capital Work in Progress 1333.40 1008.99 1214.06 1126.82 866.14

Investments 5554.66 5726.87 2837.75 2934.55 3067.77

Inventories 5267.53 4549.07 4599.72 4050.52 3354.03

Sundry Debtors 926.42 873.35 680.55 748.96 648.11

Cash and Bank Balance 2243.24 1126.28 1031.01 570.25 900.16

Loans and Advances 2173.89 1930.73 2150.21 1949.29 1654.25

Current Liabilities 5686.90 4635.66 4143.07 3631.79 3124.43

Provisions 4104.84 4549.94 1729.51 1645.33 1472.84

Net Current Assets 819.34 -706.17 2588.91 2041.90 1959.28

Miscellaneous Expenses not w/o 0.00 0.00 0.00 0.00 0.00

Total Assets 16052.47 14172.09 13912.63 12272.10 10637.96

Contingent Liabilities 281.57 285.13 292.00 314.53 190.35

INCOME STATMENT – ITC

Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006

  Rs.Cr Rs.Cr Rs.Cr Rs.Cr Rs.Cr Rs.Cr

INCOME :

Sales Turnover 30604.39 26259.60 23143.53 21355.94 19300.04 16224.43

Excise Duty 9436.81 8106.41 7531.61 7435.18 7206.16 6438.09

Net Sales 21167.58 18153.19 15611.92 13920.76 12093.88 9786.34

26

Other Income 848.08 636.55 557.48 635.24 349.96 295.02

Stock Adjustments 254.29 -175.24 136.35 32.46 266.30 145.86

Total Income 22269.95 18614.50 16305.75 14588.46 12710.14 10227.22

EXPENDITURE :

Raw Materials 8380.79 6832.02 6094.22 6022.39 5390.67 4124.90

Power & Fuel Cost 421.68 387.34 394.12 309.90 253.00 245.17

Employee Cost 1161.30 1002.39 886.57 728.51 628.00 539.40

Other Manufacturing Expenses 949.62 820.77 813.48 320.22 276.23 235.32

Selling and Administration Expenses 2830.19 2388.60 2273.23 1705.17 1408.81 1110.88

Miscellaneous Expenses 584.65 540.96 493.88 567.00 490.29 409.72

Less: Pre-operative Expenses Capitalised 60.54 71.88 72.55 112.75 42.52 15.78

Total Expenditure 14267.69 11900.20 10882.95 9540.44 8404.48 6649.61

Operating Profit 8002.26 6714.30 5422.80 5048.02 4305.66 3577.61

Interest 78.11 90.28 47.65 37.79 16.04 21.10

Gross Profit 7924.15 6624.02 5375.15 5010.23 4289.62 3556.51

Depreciation 655.99 608.71 549.41 438.46 362.92 332.34

Profit Before Tax 7268.16 6015.31 4825.74 4571.77 3926.70 3224.17

Tax 2263.96 2036.87 1215.31 1355.48 1062.48 1020.12

Fringe Benefit tax -0.25 -0.38 24.72 23.97 16.08 20.03

Deferred Tax 16.84 -82.18 322.12 72.22 148.17 -51.33

Reported Net Profit 4987.61 4061.00 3263.59 3120.10 2699.97 2235.35

Extraordinary Items 64.06 7.93 12.91 10.36 4.66 -40.44

Adjusted Net Profit 4923.55 4053.07 3250.68 3109.74 2695.31 2275.79

Adjust. below Net Profit 0.60 0.60 3.97 0.00 0.00 -0.02

P & L Balance brought forward 61.31 858.14 724.45 647.53 562.06 611.41

Statutory Appropriations 0.00 0.00 0.00 0.00 0.00 0.00

Appropriations 4500.85 4858.43 3133.87 3043.18 2614.50 2284.68

P & L Balance carried down 548.67 61.31 858.14 724.45 647.53 562.06

Dividend 3443.47 3818.18 1396.53 1319.01 1166.29 995.12

Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00

Equity Dividend % 445.00 1000.00 370.00 350.00 310.00 265.00

Earnings Per Share-Unit Cur 5.72 8.98 8.02 7.68 6.65 5.58

27

Earnings Per Share(Ad)-Unit Cur 5.72 4.49 4.01 3.84 3.33 2.79

Book Value-Unit Cur 20.55 36.69 36.24 31.85 27.59 23.97

Years Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007

Debt-Equity Ratio 0.01 0.01 0.02 0.02 0.02

Long Term Debt-Equity Ratio 0.01 0.01 0.01 0.01 0.01

Current Ratio 1.01 1.12 1.40 1.38 1.35

Fixed Assets 2.49 2.34 2.39 2.67 2.91

Inventory 6.24 5.74 5.35 5.77 6.44

Debtors 34.01 33.80 32.38 30.57 31.98

Interest Cover Ratio 94.05 67.63 102.27 121.98 245.81

PBIDTM (%) 26.15 25.57 23.43 23.64 22.31

PBITM (%) 24.00 23.25 21.06 21.58 20.43

PBDTM (%) 25.89 25.23 23.23 23.46 22.23

CPM (%) 18.44 17.78 16.48 16.66 15.87

APATM (%) 16.30 15.46 14.10 14.61 13.99

ROCE (%) 48.79 43.65 37.38 40.44 40.02

RONW (%) 33.35 29.33 25.42 27.88 27.86

RATIO ANALYSIS

Current Ratio 1.64 1.44 1.95 2.07 1.84

(Current assets/current liabilities)          

Debt Equity Ratio 0.61 0.78 1.09 0.68 0.91

(Debt/Equity)          

Net Profit Ratio 5.95 5.91 2.89 6.21 6.62

(Net Profit/Net Sales)*100          

Capital Turnover Ratio 0.73 0.58 0.55 0.58 0.57

(Net Sales/ Capital Employed)          

CALCULATION.

28

ParticularsMar 201

1Mar 201

0Mar 200

9Mar 200

8Mar 200

7   Current Assets          Inventories 1203.24 876.34 747.6 776.6 475.26Sundry Debtors 1156.25 693.33 887.23 753.19 595.99Cash and Bank Balance 21.31 14.31 89.81 97.15 22.74

TOTAL 2380.8 1583.98 1724.64 1626.94 1093.99           Current Liabilities 1448.09 1096.6 882.33 784.09 593.88           Current Ratio 1.64 1.44 1.95 2.07 1.84(Current assets/current liabilities)          

NOTE: - It is assumed that all investments are long term.

ParticularsMar 201

1Mar 201

0Mar 200

9Mar 200

8Mar 200

7

Debt          Secured Loans 1380.61 2074.85 2217.07 1856.72 2071.62Unsecured Loans 1906.59 1565.17 2282.14 886.7 760.21

TOTAL 3287.2 3640.02 4499.21 2743.42 2831.83           Equity (Shareholder's Fund)          Share Capital 113.61 103.11 95.01 95.01 93.31Reserves & Surplus 5287.2 4558.47 4026.73 3928.85 3031.24

TOTAL 5400.81 4661.58 4121.74 4023.86 3124.55           Debt Equity Ratio 0.61 0.78 1.09 0.68 0.91

(Debt/Equity)

NOTE: - It is assumed that all secured and unsecured loans are long term.

ParticularsMar 201

1Mar 201

0Mar 200

9Mar 200

8Mar 200

7           

Net Profit 379.69 283.4 137.43 243.07 224.97           Net Sales 6385.67 4791.96 4754.22 3915.54 3397.71           Net Profit Ratio 5.95 5.91 2.89 6.21 6.62(Net Profit/Net Turnover)*100          

NOTE: - Net sales are taken after deducting excise duty.

ParticularsMar 201

1Mar 201

0Mar 200

9Mar 200

8Mar 200

7

Net Sales 6385.67 4791.96 4754.22 3915.54 3397.71

           Capital Employed          Share Capital 113.61 103.11 95.01 95.01 93.31Reserves & Surplus 5287.2 4558.47 4026.73 3928.85 3031.24

29

Secured Loans 1380.61 2074.85 2217.07 1856.72 2071.62Unsecured Loans 1906.59 1565.17 2282.14 886.7 760.21

TOTAL 8688.01 8301.6 8620.95 6767.28 5956.38

Capital Turnover Ratio 0.73 0.58 0.55 0.58 0.57(Net Sales/ Capital Employed)

ADITYA BIRLA NUVO LTD

INDIVUDUAL GRAPHS FOR FIVE YEARS

CURRENT PROFIT RATIO NET PROFIT

DEBT EQUITY RATIO CAPITAL TURNOVER RATIO

ITC LTD.

30

INDIVIDUAL GRAPHS FOR FIVE YEARS.

CURRENT RATIO DEBT EQUITY RATIO

NET PROFIT RATIO CAPITAL TURNOVER RATIO

COMPARISON OF RATIOS BETWEEN ADITYA BIRLA NUVO LTD. AND ITC LTD

CURRENT RATIO NET PROFIT RATIO

31

ADITYA BIRLA NUVO LTD ADITYA BIRLA NUVO LTD. ITC LTD. ITC LTD.

DEBT EQUITY RATIO CAPITAL TURNOVER RATIO

.

ADITYA BIRLA NUVO LTD ADITYA BIRLA NUVO LTD.

ITC LTD. ITC LTD.

COMPARISON OF ABSOLUTE FIGURES:

32

33

CHAPTER 5

34

CONCLUSION

CURRENT RATIOThe current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. It is expressed as follows:

The current ratio is an indication of a firm's market liquidity and ability to meet creditor's demands. Acceptable current ratios vary from industry to industry. If a company's current ratio is in this range, then it is generally considered to have good short-term financial strength. If current liabilities exceed current assets (the current ratio is below 1), then the company may have problems meeting its short-term obligations. If the current ratio is too high, then the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management. If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.

NET PROFIT RATIO

35

Net profit or net revenue is a measure of the profitability of a venture after accounting for all costs. A common synonym for "net profit" when discussing financial statements (which include a balance sheet and an income statement) is the bottom line. This term results from the traditional appearance of an income statement which shows all allocated revenues and expenses over a specified time period with the resulting summation on the bottom line of the report.

DEBT EQUITY RATIO

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. When used to calculate a company's financial leverage, the debt usually includes only the Long Term Debt (LTD). Quoted ratios can even exclude the current portion of the LTD. The composition of equity and debt and its influence on the value of the firm is much debated and also described in the Modigliani-Miller theorem.

CAPITAL TURNOVERA ratio of how effectively a publicly-traded company manages the capital invested in it to produce revenues. It is calculated by taking the total of the company's annual sales and dividing it by the average stockholder equity, which is the average amount of money invested in the company. A high ratio indicates that the company is using its capital well, while a low ratio indicates the opposite. It is also called equity turnover

CHAPTER 5

FACTORY VISIT

36

Richa Group is equipped with more than 17 fully integrated manufacturing units in Delhi, Gurgaon, Noida and Bangalore. The Group is all set to establish more and more manufacturing units, as the quota system is phased out. It will further enhance the production capacity of the Group. A textile mill at Tiruthani near Chennai is giving an extra dimension to the Group. Offices strategically located all over India are operating with a commitment to excel.

• Monthly Production: 2, 60,000 pieces..• Worker’s Capacity: 1400 workers

• Factory Floor Space: 97,715 Sq. Feet In Five Floors Including Basement

• Total Production Area: 45,074 Sq.Feet (Cutting, Sewing, Washing & Finishing)

BOARD OF DIRECTORS

The highly qualified and experienced directors are leading Richa Group ahead of its competitors. It is surging ahead creating new benchmarks in the industry. Motivation, dedication and professionalism of the directors are working as the catalyst behind the rapid growth of the group. The directors are committed to lead the company with newer promises and commitments in the days ahead.

Mr. Vijay Uppal (Chairman)

Mr. Virender Uppal (Managing Director)

Mr. Vinay Uppal (Jt. Managing Director)

Mr. Gaurav Uppal (Jt. Managing Director)

.Mr. Saurabh Uppal (Jt. Managing Director)

For better sourcing of fabrics, the Group has set up its own offices at Ludhiana and Tirupur. The Group strengthened its raw material sourcing by integrating backwards with its own textile mill- Trident Textile Mills, in the year 1992. With the incorporation of Richa Global, in 2002 at Bangalore, the Knit Division of Richa Group got a new impetus.Today, Richa Group is equipped with 18 fully integrated manufacturing units in Delhi, Gurgaon, Noida and Bangalore along with a textile mill in Tiruthani. It stands tall with US $ 130 million turnover. Making use of the latest technologies through its competent professionals, the Group is setting new benchmarks in the industry..

The Group is equipped with state of the art machinery like Tunnel Cover Seaming Machines, Heat Transferring Machines and Vertical Garments processing with auto tilting to produce various types of high quality knitted garments. Ultramodern technologies lead the Group ahead of the competitors. It plays the key role in producing the products of superior quality. The unique blend of modern technologies from all over the world has enabled Richa Group to maximize its capability.

GROUP COMPANIES

37

RICHA & Co.

Richa and Company was set up in the year 1977. The company is operating with its four units located at Kirti Nagar (Delhi), Mayapuri (Delhi), Mangolpuri(Delhi) and Gurgaon. It specializes in the manufacturing of woven readymade garments.

Gaurav International

Richa Global Exports Pvt Ltd

ABC Leathers

• Contracts are mostly negotiated through buying agencies, though they occasionally take direct orders also.

Richa Group has been in the forefront of the industry complying with the customer's requirements following government laws and regulations. Today, it is seen as a hi-tech, customer friendly, eco-responsive corporate citizen that is shaping a better tomorrow for everyone.

Through a wide range of high fashion garments for men, women and children, Richa Group has marked a distinguished presence in over fifteen countries including USA, UK, Europe and Canada. In the leading retail outlets around the world, the products of Richa Group are flaunting the latest fashions. With over two decades of presence as a major Indian Government Recognized Trading House in the international fashion apparel market, Richa Group has become a widely admired name.

The Richa Group has become a favoured supplier of High fashion garments to leading customers across the world.

• Gap• Tommy Hilfiger• Target• Wall – mart• Armani Exchange• Kohl’s• Chico’s• DKNY• NEXT• NORDSTORM• Izod• Etam• Essentials• Miss Sixty• Debenhams• Timberland• Marks & Spencer

38

• Polo Ralph Lauren• Calvin Klein• Women’s secret• Sears

DEPARMENTS

Fabric StorageWe are manufacturer & exporter of storage racks that includes heavy duty fabric storage racks, heavy duty picking shelving racks; drive in tracking systems, heavy duty pallet racks, cantilever racks, light duty racks, mobile racks and FIFO racks. Fabrics for Richa global are sourced from countries like china and Pakistan. All uninspected fabrics are kept buyers wise and in plastic cover. The fabrics go further in production processes once they are checked inch by inch either by hand or machine.

RELAXATION COUNTER was made for fabrics like chiffon so that they stretch out to their normal position and do retain their shape during further processes. It is done for around 24 hours minimum.

TESTING Testing is conducted at all the crucial phases of the production process so that the finest products are manufactured. In all the procedures, the most modern equipments are used to ensure utmost perfection.

Testing of raw material is very crucial as it is the base of a product. It consists of the fabrics and all garment accessories. Before commencing production, all raw materials whether it is fabric or accessories are tested and ensured whether the same conforms to specifications or not. After ensuring the raw material quality parameters, prototype samples are made and then the overall quality parameters are checked in our in-house lab. If the sample conforms to buyers specifications then again samples are prepared and tested from commercial certified labs for buyer’s approval. After approval from buyer actual production process starts.

Beside production sample testing, sampling samples are also tested. During the sampling process any fabric swatch recommended from buyers end and any other trims or accessories to be used are analysed under close investigation to face any unforeseen problems.

COMPOSITION AND ANALYTICAL TESTS CONSTRUCTION ANALYSIS COLOUR FASTNESS TESTS STRENGTH / DURABILITY TESTS DIMENSIONAL STABILITY / APPEARANCE TESTS

TRIMS SECTION

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Trims and accessories are kept buyers wise in racks .there is different segment for inspected and uninspected trims and accessories. There is a different table in the starting of the trims section where the trim is checked and then arranged in rackes.

EMBROIDERYThe embroidery division at Richa Group is equipped with more than 50 computerized machines of 20 heads each, from Barudan and SWF. The facility also has 5 sampling machines with 4 heads each. Advanced designing system and elaborate matching processes are employed to achieve intricate patterns and sophisticated illustration.

CUTTINGThe cutting section is equipped with the Gerber spreader and cutter that ensure 100% perfection. It improves turnaround times and expedites the cutting process with minimal waste and cost. The section also has Bend Knife machine and fusing machines. Most modern CAD systems from Gerber, Tukatech and Leuctra are employed for Computerized Precision Pattern Making, Grading and Marking System

PRODUCTIONWith its wide range of advanced machinery & proficient labour capable of producing stylized garments with perfection & finesse, the sewing section has a hi-tech infrastructure. The production lines are fully integrated and operational with various types of powered sewing machines from Brother, Juki, Pegasus, Yamato & special machines like Computerized Welt Pocketing Machine, Belt Loop Attachment Machines, and Multi Needle Kansai Special Machines & Tunnel Cover Seaming Machines.There are 588 machines for production. (14 lines having 42 machines each).Assembly line production system is carried out, once the garment goes in from the first machine comes out ready at the last one, during this whole assembly line there is a defect code followed, where there is a RED, YELLOW AND GREEN LIGHT, to ensure the work system is carried out properly without any defect at any machine.

WASHING AND FINISHINGHi-tech machinery and cutting edge technology facilitate high quality washing and wrinkle-free finishing. The in-house washing capacity is one million pieces per month. The laundry division is well equipped with automatic washers, extractors, PERK and dryers. It has ultramodern facilities like Enzyme, Stone, Sandblasting, Pigment Dying, Over Dying and Vertical Garment Processing with Auto Tilting etc. Various pressing machines and heat transferring machines are also available to ensure improvement in high functional performance of the garment through specialty finishing.

For finishing department there are 4 initial checker , After initial checking then there are 2 final checker that makes sure that there are no stains on the fabric , there are about 12 lines for this finishing section which is considered the largest finishing section in gurgaon . In

every line there are 4 Initial, 2 Final, 1 Measurement & 1 Quality checker in every line.

FINAL INSPECTIONRicha Group has an efficient Final Inspection Department equipped with the latest equipments. This section plays the most crucial role in ensuring 100% perfection of all the

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products. It is inspected that all the features demanded by the clients are designed or not. The experts thoroughly check all the products to make sure that the perfect products are delivered to the client. The products carry the brand image of the company.

PACKINGPacking list it lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice.

SHOWROOMShowroom consists of best sellers, new ranges of products from all buyers, fabric swatches as well as various washes on different fabrics and at times post production samples are also

kept in the showroom for any further relation.

IN HOUSE LABEquipments

Conditioning chamber This chamber is used for maintaining standard atmosphere i.e. 65% Relative humidity.

Crock Meter This instrument is used for determining the colourfastness property due to rubbing action

Laundero meter This instrument is used for determining the colourfastness property due to washing

Light fastness tester This instrument is used for determining the colourfastness property due to action of sunlight

Perspirometer This instrument is used for determining the colourfastness property due to the action of water and perspiration

Top loading washing machine

Used for determining the dimensional stability and appearance tests after washing of fabrics and garments

Front loading tumbler dryer

Used for drying of fabrics and garments

Elements tear tester Used for determining the tearing strength of woven fabrics

Tensile tester Used for determining the tensile strength of woven fabrics, seam strength and slippage of woven garments

Beasley balance Used for finding out the yarn count of woven and knitted fabrics

Digital thread counter Used for finding out the thread construction of woven and knitted fabrics

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Binoculars microscope Used for fibre analysis of textile materials

PTT meter Used to determine the PTT Value of woven and knitted fabrics

Hot Air oven A chamber used for maintain certain preset temperature with or without hot air facility. Used in tests like fibre analysis, colour fastness to water, perspiration etc

HUMAN RESOUSRE DEPARTMENTS AND MERCHANDISE

Human Resource Management (HRM, HR) is the management of an organization's employees.[1] While human resource management is sometimes referred to as a "soft" management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of organizational goals. Effective human resource management also contains an element of risk management for an organization which, as a minimum, ensures legislative compliance

ORGANISATION – broader perspective in itself

An organization is a social group which distributes tasks for a collective goal . There are a variety of legal types of organizations, including: corporations, governments, non-governmental organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and universities

The main functions of Human resource Management are

Job Design (JD)

JD can be defined as the function of arranging tasks duties and responsibilities in to an organizational unit of work for the purpose of accomplishing a certain objective.

Job Analysis

This includes the systematic analysis of the job and the characteristics of the desired job holders. The information collected through a Job Analysis is of two forms;

Job Description: Describes the job, its tasks, responsibilities and service conditions of a job.

Job Specification: Describes the requirements of the person for the job, including abilities, educational qualifications, special physical and mental skills, training, experience etc.

Human Resource Planning (HRP)

HRP can be identifies as the strategy forecasting the organizations future requirements for different types of workers, their acquisitions, utilization, improvement, employee cost control, retention and supply to meet these needs.

Recruitment

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This is the initial attraction and screening of the supply of prospective Human Resources available to fill a given position/s.

In other words, it is the process of involving the attraction of suitable candidates to vacant positions from both internal and external sources of the organization.

Eg:

INTERNAL EXTERNALJob posting AdvertisingIntranet Job Placement AgenciesSuccession plans Internet

ReferralsPlacement through Colleges and Universities

SELECTIONThis is a systematic process of selecting the most appropriate and suitable person to a particular job. In other words, Selection is choosing an individual to hire from all those who have been recruited/ attracted

HIRINGThis is the process of appointing the person selected for a particular job. In this process, letters of appointments will be prepared, employment contracts will be signed and the new employee will be sent in for a probationary period.

INDUCTION

This is concerned with introducing an employee to the company, job and staff in a systematic way. There are two components of induction,

Introducing the employee to the organization and the organization’s culture. Introducing the employee to his/her job

PERFORMANCE EVALUATION

This is a regular systematic assessment of an employee’s performance in order to review whether his/her performance matches the expected performance levels. Performance evaluations are an analysis of an employee””s recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training.

COMPENSATION MANAGEMENT

The main objective of the function is to develop and maintain a good salaried and wages system which is reasonable both internally and externally.

Factors affecting Salaries and Wages

Cost of living Supply and demand of labor

Government requirements (minimum wage rates)

Competitor wage scales

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Trade Union influences

Labor productivity

TRAINING AND DEVELOPMENT

Training is the process by which the employees are taught skills and given the necessary knowledge to carry out their responsibilities to the required standard

Development is concerned with the giving the individual necessary knowledge, skills, attitude and experience to enable an employee to undertake greater and more demanding roles and responsibilities in the future. Development is concerned with the long term prospects of a career succession plan.

Welfare Administration Health and safety Administration

Discipline Administration

GRIEVANCE HANDLING

A grievance can be identified as a situation where the employee is in metal distress, dissatisfies or has a bad attitude, due to a work related unreasonable or unjust situation.

A grievance could take place for various reasons;

Job related reasons Work services related reasons

Employee management related reasons

Service conditions related reasons

Employee behavior related reasons

LABOR RELATIONS

The continues relationship between the labor force and the management. Since labor forces are organized as Trade Unions, it is actually a relationship between Trade union representative and the management. However the Government is also an involved as a third party in order to regulate this relationship by ways of laws.

This relationship is also more commonly known as a tri-partite relationship.

If in case there is a dispute between the employees and the management, the most common way of dispute resolution is through negotiations or Collective Bargaining and when the two parties reach to an agreement it’s known as Collective Agreement.

Richa and co.

Due to a little in cooperative nature of our organization we could not collect a lot of data.

With our oral communication with the manager there. We would like to list a few hr policies that the company follows:

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The Group takes various initiatives for the all round development of its human resources. Training programmes by renowned industry experts is an integral part of its human resource policies. Various motivational programmes are also conducted to make the most of the potentials of the professionals.

The following are the prime elements of the human resource policy of the Richa Group

Equal opportunitiesExcellent work cultureProfessionalismLeadership

Growth

Motivation

Commitment

Rich rewards

Worker TrainingThe facility sometimes trains workers if the operation is difficult. Training usually takes one or two days through the research and development department

Recruitment PolicyThe facility posts signs on gates. Interviews applicants then apply and give test of productivity for an hour or so. And then workers are given a letter of contract.

No other information could be obtained regarding the formalized dismissal procedure, grievance policy, workers committee or union.

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CHAPTER 6

CONCLUSION

The Readymade garments industry is increasing day by day due to changes of fashion in day to day life. The readymade garment industry in India owes its existence to the emergence of a highly profitable market for exports. Ready-made garments account for approximately 45% of India's total textile exports. They represent value added and less import sub sector. In the recent years, however, the domestic demand has also been growing rapidly.

Van HeusenCorporate dressing for both men and women has come a long way from the traditional suit and sari. If one wants to rub one’s fashionable shoulders with the CEOs and MDs from MNCs then the sartorial style has to match corporate standards

Corporate dressing is a powerful instrument to declare one’s affiliation with the business community. Corporate dressing can be broadly based on three factors - demand (to be easily identified), symbol (of say power) and the cultural influence. Looking good has never been as important as it is in the Indian workplace. With globalization, business travels across the globe have increased. New workplace ethics and dress codes in other countries have been incorporated by Indian companies too. The protocol of corporate dressing is taken seriously as it reflects directly on employee professionalism. Employees now have to pay a lot of attention to Colour coordination, accessories and styling.

Thus providing van heusen a chance to rise up the ladder at fast pace.

On the basis on the research carried out in our project a few SUGGESTIONS that we would like to put and conclude are -

• Van Heusen should focus more on the casual products as much as it does on the formal shirts and trousers, to attract another segment of the market consumer.

• Should increase the shirt size range and get more stock under the range of 38 and 40 cm .as this has been a constant complaint from customers on a healthier side.

• Company should plan and came out with more discount schemes, which attract more customers .even though they provide power club cards to their customers but as stated by one of the customers that ‘Loyalty cards are getting boring for the customer.’ They should offer new and more often discount schemes.

Richa Global

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One of the largest players dealing with the best foreign brands has a remarkable presence in the readymade garments export industry including woven, knitted, leather garments and home furnishing well equipped in all aspects ranging from compliance with government laws or equipments and the latest technologies. Richa group has been truly an experiential learning.

CHAPTER 7

MY LEARNING AND REFLECTION – Agnivesh Kumar

Inspired by the research performed by me and my team member on van heusen, I have decided to put down what I have learned in the course of my formal education as well as my experience in learning to live.Starting from realising the effort that goes in from the mere establishment of a brand to whole cycle it goes through to became a well established brand. And efforts required maintaining the brand image.

Further this project gave us an opportunity to communicate with commercial world and have a greater in depth knowledge about the market, and its various aspects which would help us in our future as a merchandiser. As well as helped us to learn to be more organized and communicate in a processed manner.

Further I learnt how important it was to work in a professional and planned manner and noting things on paper pre hand so that no step is skipped and the best result is achieved.

With studying the brand Van Heusen in specific along with its competitors my personal learning was how important visual merchandising can be to maximise sales .As it has been observed as a consumer natural behaviour being attracted to shops with a influential show window . Hence forcing the customer to at least once check in the collection. Setting the company apart in an exclusive position, establishing linkage between fashion, product design and marketing by keeping the product in prime focus. Combining the creative, technical and operational aspects of a product and the business.

Further with our factory visit and interaction with a few colleges and personal observation helped a lot to understand the different departments the factory works in and the detailed procedures they follow and the importance of us as being future merchandisers should have.

As with our interaction with a merchandiser there in I realised how important it is for a merchandiser to know all aspects of the factory and all the relating problems that could arrive during production or even how such problems can be solved.

Where this is just one side of the merchandisers responsibility , on the other side he has to be aware of the whole knowledge of a buying house , export house or a liaison office , through which means does the buyers relate to the factory .

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Just to sum up my learning from this project I would state

More professional Leadership skills

Communication skills

Conflict management

In depth knowledge about factory departments and working

Brand image

Consumer behaviour

Market

Importance of documents

Group work

Technical knowledge

Thus I can conclude that this project has been of great help to learn our subject better, as in the end it is this market only we have to deal with and these factories only were we see our careers. So personal learning is always beneficial.

MY LEARNING AND REFLECTION

This is the first time I have performed a project involving a number of modules, though it has been a challenge yet a very learning experience as I have never been exposed to such a professional learning. By doing this project it has given me a brief understanding as how the industry functions. With this project I have learned as how to work in a group in all kinds of situation.

As part of this project we were given a Brand to analyse (VAN HEUSEN) and a Factory Visit so that we get a complete understanding about the garment and its manufacturing.

I learnt whole Merchandising process that would be very beneficial for me in future when I will be exposed to industry.

There were number of aspects that I have learnt , starting from a brief about the Organization Structure, Performance Appraisal , Supply Chain Management ,Conflict Management ,Group Work which not only helps me as a future merchandiser but also a human being.

During my store visit I have realized that salesman are not fully educated, they cannot communicate in English properly.

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With my Factory Visit, Conducting Research Methodology, My Store Visit I have realized that it is very important to work in a very planned and a systematic manner that will certainly help me in all the spheres of life.

Thus in the end this project has helped me to apply the whole foundation that has been taught practically.

CHAPTER 8

BIBLIOGRAPHY

1. Overview. Available at: http://www.madurafnl.com/brands/madura_fashion_lifestyle.html [ Accessed: 12 september,2011]

2. Who we are. Available at: http://www.madurafnl.com/about_us/about_us.html [ Accessed: 12 september,2011]

3. 2. Management Team. Available at : http://www.madurafnl.com/about_us/management_team.html [Accessed: 12, september,2011]

4. Van Heusen, Power Club. Available at: http://www.vanheusenindia.com/power-club [Accessed:13 september,2011]

5. Van Heusen launches 'World wear International Wardrobe'. Available at: http://www.adityabirlanuvo.net/media/features/features.aspx?ID=ND5VvU0ho8A= [Accessed: 6 october,2011]

6. Madura Garments News Headlines. Available at: http://www.fibre2fashion.com/news/company-news/madura-garments/[ Accessed: 15 september,2011]

7. 7. Balance sheet standalone. Available at:http://www.adityabirlanuvo.com/investors/financials/ten_year_balance_sheet.aspx [ Accessed: 11 october,2011]

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8. 8. Profit and Loss standalone. Available at: http://www.adityabirlanuvo.com/investors/financials/standalone_ten_year_profit_loss.aspx[Accessed: 11 October, 2011]

9. Booklets of Van Heusen. Available at: Van Heusen Outlets[Accessed: 5 October, 2011]

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