LALITH FASSION

TABLE OF CONTENTS

SL.NO. CHAPTERS TITLE PAGE

NO.

EXECUTIVE SUMMARY

1 Chapter 1 INTRODUCTION

1.1 Introduction about the Internship.

1.2 Industry Profile.

2 Chapter 2 ORGANIZATIONAL PROFILE:

2.1 Background

2.2 Nature Of Business

2.3 Vision, Mission, Quality policy

2.4 Product/Service profile

2.5 Ownership Pattern

2.6 Achievements/Awards if any

2.7 Future growth and Prospects

3 Chapter 3 Mckensy’s 7S Framework And Porter’

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Five Force Model

4 Chapter 4 SWOT Analysis

5 Chapter 5 Analysis Of Financial statement

6 Chapter 6 Learning Experience

7 Bibliography
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CHAPTER-1

INTRODUCTION
1.1 INTRODUCTION ABOUT THE ORGANIZATION AND
INDUSTRY:

The archaeological surveys and studies have found that the people
of HARAPPAN CIVILIZATION knew weaving and the spinning of cotton four
thousand years ago. Reference to weaving and spinning materials is found in
the VEDIC LITERATURE. The textile industry in India traditionally, after
agriculture, is the only industry that has generated huge employment for both
skilled and unskilled labor in textiles. It is the second-largest employment
generating sector in India. It offers direct employment to over 35 million in the
country. India has faced the global textile business market with 2 nd largest
manufacturing capacity in the world.The country is an attractive hub for
textile production due to the presence of the entire value chain for textile
production from raw materials like cotton, silk, jute, wool and synthetic fiber
to spinning, weaving, knitting and apparel manufacturing capacities to skilled
and lost cost labor. The textile industry in India occupies a unique position in
our economy contributing to nearly a third of the country’s export earnings.
The industry includes manufactures, suppliers, wholesalers and exporters to
cotton textiles, Handlooms and woollen textiles etc. From the production of
textile machinery and equipment, dyes and raw materials to the delivery of
finished textiles, fabrics and garments, the textile industry in India has the vast
potential for creation of employment opportunities. The number of textiles
exporters in India has increased rapidly after independence. Today, a
handloom and cotton textiles export in India is counted among the most
important sectors.

Success of the firm largely depends on how effectively and efficiently it utilizes
the available resources. In the modern business world it is very important to
carry out the business of the firm effectively and efficiently which can only
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possible when there is only strong foundation of management function with

the effective workers participation in management. Raw cotton being the
most abundant item in the world, its usage in many forms has been found
since many years. So the very first step is to get row cotton and it plays very
circular role. This in plant training report has focused on the overall working of
the organizational activities in a broader aspect.

In addition to low yields, the quality of India’s cotton is often poor because of
any array of technical, economic and institutional factors. The extent to which
these productivity and quality factors can be addressed will be critical in
determining India’s competitiveness in global textiles markets and whether in
rising cotton demands will be supplied by domestic procedures or by global
markets.

Cotton is an important agricultural commodity, both globally and

domestically. In many developing and underdeveloped countries, cotton
export are not only a source of vital foreign exchange earnings.

I. SECTOR PERFORMANCE

The textiles industry has made a major contribution to the national economy
in terms of net foreign exchange earnings and contribution to the GDP. The
textiles sector is the second largest provider of employment after
agriculture. Thus, the growth and all round development of this industry has
a direct bearing on the improvement of India's economy. Textiles exports
from India will touch US$ 185 billion by the year 2024-25.

Textile plays a major role in the Indian Economy

(i) It contributes 14 % to industrial production and 4 %to GDP
(ii) With over 45 million people, the industry is one of the largest source of
employment generation in the country.

The size of India’s textile market as of July 2017 was around US$ 150 billion,
which is expected to touch US$ 250 billion market by 2019, growing at a
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CAGR of 13.58 %between 2009-2019.The central government is planning to

finalise and launch the new textile policy in the next three months. The
policy aims to achieve US$ 300 billion worth of textile exports by 2024-25
and create an additional 35 million jobs.

A. LOCALSCENARIO

Readymade garments are a part of our daily life. Clothes are an epitome of a culture. People
in different parts of the world have their own styles of dressing which symbolize their
culture and status. The Readymade garments industry is increasing day by day due to
changes of fashion in day to day life. The textile industry including readymade garments
occupies an unique position in the Indian economy. Its predominant presence in the Indian
economy is manifested in terms of its significant contribution to the industrial production,
employment generation and foreign exchange earnings. The changes in the life style since
the onset of the liberalization era, and given the base of the industry for the overseas
market, Indian garments industry have taken big strides. The entry of the Indian and global
fashion designers has stimulated the market further. With the rising tailoring costs and
relatively low prices of standardized products, the Indian consumer is increasingly taking to
readymade. In the past, the readymade market was confined mainly to baby dresses and
small manila-shirts and dress shirts. Karnataka’s textile industry contributes to 20% of the
garment production taking place in the country, which is valued at USD 1.56 billion. The
state is responsible for 8% of the national exports in the textile sector. 35% of the
country’s raw silk production takes place in Karnataka. The silk exports of Karnataka
account for 24% of the silk goods export value at the national level. The state also
contributes to 11% of the country’s total wool production. 6% of the cotton produced in
the country comes from Karnataka.
Karnataka ranks at the second position in garment exports when the value of the
exports is considered. The present garment export of Karnataka is estimated to be
around Rs. 4000 crores. This figure is 15% of the state’s overall exports. The
contribution of Karnataka’s textile industry in terms of industrial production, export
earnings, and employment generation has consolidated its position as a key player in
the economy of the state.
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B. NATIONAL SCENARIO

India’s textile and apparel industry has been growing significantly over the years. Thanks to
rapid urbanization and increasing working class, the ‘price sensitive’ Indian consumers are
now shopping more frequently. Retail is the final stage of any economic activity. Retailing
includes all the activities involved in selling goods or services to the final consumers for
personal, non-business use. A retailer or retail store is any business enterprise whose sale
volume comes primarily from retailing. These are the final business entities in a distribution
channel that links manufacturers to customers. Manufacturers typically make products and
sell them to retailers or wholesalers. Wholesalers resell these products to the retailers and
finally, retailers resell these products to the ultimate consumers. Any organization selling to
final consumers whether it is a manufacturer, wholesaler or retailer-is doing retailing. The
Indian textiles industry, currently estimated at around US$ 108 billion, is expected to
reach US$ 223 billion by 2021. The industry is the second largest employer after
agriculture, providing employment to over 45 million people directly and 60 million
people indirectly. The Indian Textile Industry contributes approximately 5 per cent to
India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial
Production (IIP).
The Indian textile industry has the potential to reach US$ 500 billion in size according to
a study by Wazir Advisors and PCI Xylenes & Polyester. The growth implies domestic
sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports
are implied to increase to US$ 185 billion from approximately US$ 41 billion currently.

Indian leading exporters

 20% From Ahmadabad
 10% From Delhi
 18% From Chennai
 12% From Surat

C.GLOBAL SCENARIO
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The world saw the major changeover in the textile business with British industrial revolution, where
the British took the technology to the colonies they ruled like India etc. & so the developed countries
became the origin of technology while the developing countries moved towards being the
manufacturing hubs due to the abundant manpower ,With the world, the textile business industry in
India being the largest employer after agriculture. exports. India has faced the global textile business
market with 2nd largest manufacturing capacity in the world. The global textile mills market is

forecast to reach $842.6 billion in value in 2020, an increase of 26.2% since 2015. The
compound annual growth rate of the market in the period 2015–20 is predicted to be 4.8%.

Global leading exporters

 39% From USA
 20% From Pakistan
 40% From China
 1% From Brazil

II. SECTOR POLICY

LEGAL

The size of textile and apparel exports must reach a level of US $50 billion by
the year 2010. The Technology Upgradation Fund Scheme should be
implemented in a strict manner. The garments industry should be removed
from the list of the small scale industry sector. The handloom industry should
be boosted and encouraged to enter into foreign ventures so as to compete
globally.The National Textile Policy has also formulated rules pertaining to
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certain specific sectors. Some of the most important items in the agenda
happens to be the availability and productivity along with the quality of the
raw materials. Special care is also taken to curb the fluctuating price of raw
materials. Steps have also been taken to raise silk to the international
standard..The handloom industry should be boosted and encouraged to enter
into foreign ventures so as to compete globally.The National Textile Policy has
also formulated rules pertaining to certain specific sectors. Some of the most
important items in the agenda happens to be the availability and productivity
along with the quality of the raw materials. Special care is also taken to curb
the fluctuating price of raw materials. Steps have also been taken to raise silk to
the international standard .The new National Textiles Policy draft in process
aims to achieve $300 billion exports by 2024-25, and creation of additional
35 million jobs by attracting investments. The blueprint termed as the
draft 'Vision, Strategy and Action Plan' to revitalize the textiles and apparel
industry envisages an additional investment of $120 billion. The key
objectives of the new National Textiles Policy include developing a vision
statement of the textile sector for the next decade to treble market share
from the current 5 per cent in the next decade.

ECONOMIC

1. India’s textiles industry offers a vast variety of investment options. The country is an
attractive hub for textile production due to the presence of the entire value chain for textile
production from raw materials like cotton, silk, jute, wool and synthetic fiber to spinning,
weaving, knitting and apparel manufacturing capacities to skilled and lost cost labor. Along
with the aim of increasing employment and exports, the government is working towards
modernizing machines and adding state-of-the-art facilities, which invites foreign
investments with innovative technologies. The government’s focused and favorable policies
and schemes support the steady growth of the sector. Keeping in view the various
changes in the textile industry on the domestic and international fronts and the need
for a road map for the textile & apparel industry, Ministry of Textiles had initiated the
process of reviewing the National Textile Policy, 2000. Accordingly, an Expert
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Committee was constituted including leading industrialists from the textile sector to
make fresh recommendations. The draft Vision, Strategy & Action Plan for Indian
Textiles & Apparels (2024) will be put up on the website of Textiles Ministry for
inviting online comments/suggestions. It will also be discussed in the forthcoming
meeting with state Textiles Ministers.

III.STRUCTURE OF THE INDUSTRY

a)Organized

Indian Textile Industry is both unique and complex. Its predominant presence in the Indian
economy is manifested in terms of its significant contribution to the gross domestic product,
employment generation and foreign exchange earnings. It contributes14 percent of the
value addition in the manufacturing sector. Contribution to GDP is 4 percent and export
earnings are about 24 % of the total exports of the country. The complexity of this sector is
on account of its sectoral dispersal matrix with the hand spun and hand woven sectors on
one end of the spectrum and the capital intensive sophisticated mill sector on the other,
with the decentralized power loom and knitting sector coming in between. This sector uses a
wide range of fibres ranging from natural fibers to synthetic/man-made fibers. For the
production of textiles, there is intricate interplay of the processes, which include ginning,
reeling, spinning, weaving, processing and garments manufacture. The growth of the textile
sector in terms of installed spindle age, yarn production and output of cloth has been
significant. The spindle age capacity of organized sector has increased from about 33.15
million in 1996-97 to 35.84 million by the end of Aug.2002. A noticeable feature in this
growth process has been the installation of large number of open-end rotors in 1990s and
the tendency to set up 100% Export Oriented Units in the field of spinning. The production
of spun yarn is anticipated to touch the figure of 3,088 MN. Kgs during current financial year
2002-2003, registering an annual growth of about 1% during the last five years. It is worth
noting that the production of 100% non-cotton yarn has shown an upward trend in recent
years. It is anticipated to be 307 MN. Kg during 2002-2003, registering an annual growth of
11.64% during the last five years. The total production of cloth by all sectors i.e. mill, power
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loom, handloom and khadi, wool and silk has also shown an uptrend in recent years. The
total production of cloth is anticipated to be 42,314 MN. Sq. meters during 2002-2003
showing an annual growth of 3.96% during the last five years. The cloth production from
decentralized power loom sector has shown significantly higher annual growth rate of 6.48%
during the last five years.

 The enterprises or places of work where the terms of employment are

regular and therefore, people have assured work. They are registered by the
government and have to fallow its rules and regulations which are given in
various laws such as the factories act, minimum wage act, payment of
gratuity act shops and establishments act etc.…

 Workers enjoy security of employment.

 They work only fixed number of hours, if they work more they get paid more.

 Worker enjoys benefits like paid leave, provident fund and medical benefits.

b) Unorganized

The term unorganized sector when used in the Indian context is defined by National
Commission for Enterprises in the Unorganized Sector, in their Report on Conditions of Work
and Promotion of Livelihoods in the Unorganized Sector as consisting of all unincorporated
private enterprises owned by individuals or households engaged in the sale or production of
goods and services operated on a proprietary or partnership basis and with less than ten
total worker. Amongst the characteristic features of this sector are ease of entry, smaller
scale of operation, local ownership, uncertain legal status, labor-intensive and operating
using lower technology based methods, flexible pricing, less sophisticated packing, absence
of a brand name, unavailability of good storage facilities and an effective distribution
network, inadequate access to government schemes, finance and government aid, lower
entry barriers for employees, a higher proportion of migrants with a lower rate of
compensation. Employees of enterprises belonging to the unorganised sector have lower
job security and poorer chances of growth, and no leaves and paid holidays, they have lower
protection against employers indulging in unfair or illegal practices.
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III. The enterprises or places of work are not registered by the government and does not
follow any rules and regulations, there are no terms of employment.

 There is no fixed number of hours.

C) Investment Backup

The Indian textile industry has its important place in the economy of the country. It
contributes around four per cent to the country’s GDP and provides direct and indirect
employment to approximately 105 million people. India is the currently the second largest
manufacturer and exporter of textile and apparel, after China. The Indian domestic market is
estimated to be around $84 billion. T&A exports of India were worth around $40 billion in
2016, with a share of around five per cent in the global T&A trade. The Indian domestic and
export market is poised for double-digit growth owing to structural changes in the country
and international events shaping the global trade. This article explores the macro-economic
trends affecting the consumer landscape and manufacturing scenario in India and
investment opportunities in the textile industry.

India has a strong population base with the largest Gen Y population in the world, coupled
with a growing economy. Around 65 per cent of Indians are under the age of 35 and as this
population joins the workforce, they will have increased the spending power that will
ultimately lead to increased domestic demand for textile and apparel items.

Urbanization and urbanization are other important factors shaping the Indian consumer
spending habits. Citizens are migrating from rural to urban areas in search of job
opportunities and better amenities, while steps are also being taken to improve facilities in
rural India. The ballooning middle class is also boosting Indian consumption patterns. The
number of households with an annual income of more than $14,000 has increased at a
CAGR of 11 per cent since 2005 and is expected to increase at the same rate for the next 10
years. The number of households earning an annual income ranging from $4,000 – $7,000
grew from 11 million in 2005 to 55 million in 2016 and is expected to reach around 95
million by 2025. Owing to the above factors among many, the buying habits of Indian
customers have changed over the years. Increasing brand awareness and penetration of
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brands to tier-II, tier-III and tier-IV cities have largely contributed to a shift in buying pattern
from need-based to aspirational buying.

CHAPTER-2

ORGANIZATION PROFILE

I. .BACKGROUND OF THE COMPANY

Established in 2016,LALITH FASHION LTD is one of the leading shirt

manufacturing industry in Davangere , with the experience of 15 years of
experience in garments retailing business and now started their own medium
scale manufacturing unit which manufactures their own brand shirts and
supply them in all over Davangere and Karnataka.

II. NATURE OF BUSINESS CARRIED

RETAILING

• Retailing includes all the activities involved in selling goods or services to the final
consumers for personal, non-business use.

• A retailer or retail store is any business enterprise whose sale volume comes
primarily from retailing.

• These are the final business entities in a distribution channel that links
manufacturers to customers.

• Manufacturers typically make products and sell them to retailers or wholesalers.

Wholesalers resell these products to the retailers and finally, retailers resell these
products to the ultimate consumers.
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READYMADE GARMENTS

• Ready-made garments are mass-produced finished textile products of
the clothing industry.

• Readymade garments are basically used for wearing purposes. It is used by all
class of people.

• The textile industry including readymade garments occupies an unique position

in the Indian economy.

• The Readymade garments industry is increasing day by day due to changes of

fashion in day to day life..

 Manufacturing of Shirts is under the category of readymade Garment ind
ustry.
 Readymade  garment  industry has occupied a  unique  place  in  the  industrial scenario 
of
 our country by generating substantial export earnings and creating lot of employ
ment.
 Its contribution to industrial production, employment and export earnings is
significant. This industry provides one of the  basic necessities of life. The emp
loyment
provided  by it  is  a  source  of livelihood for millions  of  people. It also  provides 
maximum
employment with minimum capital investment. Since this industry is highl
y labour-
intensive, it is ideally suited to Indian condition.
. This project report is prepared for the
manufacture of gents shirts, as it find wide acceptance in localmarkets. 
Such establishments can be easily set up by any person having the knowledge
of cutting and stitching operations.
Manufacturing of Shirts is under the category of readymade Garm
ent industry.
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Readymade  garment industry has occupied a  unique  place  in  the  industria

l scenario  of
our country by generating substantial export earnings and creating lot of 
employment.
Its contribution to industrial production, employment and export earni
ngs is very
significant. This industry provides one of the  basic necessities of life. The 
employment
provided  by it  is  a  source  of livelihood for millions  of  people. It also  provid
es  maximum
employment with minimum capital investment. Since this industry is hi
ghly labour-
intensive, it is ideally suited to Indian condition. This project report is pre
pared for the
manufacture of gents shirts, as it find wide acceptance in local and 
international
markets. Such establishments can be easily set up by any person having th
e knowledge
of cutting and stitching operations.

SUPPLIERS

 The main markets for fabric supply of clothing Lalith fashions are Gujrat ,Kolkatta ,
and Mumbai .
 Some of the fabric suppliers for Lalith fashions clothing for both sampling and
production are:
 Cotton fabric
 Suiting fabric
 Textile fabric
 Lining fabrics
 Special fabrics.
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III. VISION MISSION,QUALITY POLICY

VISSION

To become the first choice of buyer’s in all around the world.

To achieve customer’s satisfaction we make sure that we stay true to
the highest standards of excellence. 

MISSION

To go beyond the customer’s expectations and desires in quality,

delivery, and cost through permanent improvement and customer relations.

QUALITY POLICY

 The quality of garments mainly depends on quality of fabric used.

 Care must be taken while purchasing fabrics to ensure good color fastness
properties, uniformity in shade etc.
 Generally garments are made as per customer's specification in respect of size,
design and fashion. However, care should be taken in each stage of production to
maintain quality.
 To drive customer satisfaction.
 To meet the initial needs and expectations.
 To provide products and services of measurable quality.
 To implement the quality management system efficient

IV. WORK FLOW MODEL

FASHION FORECASTING.

DESIGN DEVELPOMENT.

SAMPLE PLANING.

PRODUCT SPECIFICATION.
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MERCHANDISE PLANNING.

BUYING.

V. PRODUCT /SERVICE PROFILE

PRODUCT PROFILE

Manufacturing the shirts which are highly demanded due to the

urbanization and the product is available in variety of colors size,designs etc.

PROCESS  OF  MANUFACTURE:

1. Selection of fabric

2. Receiving  fabric

3. Fabric relaxing
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4. Spreading, Form Layout, and cutting

5. Embroidery and Screen Printing
6. Sewing
7. Spot Cleaning and Laundry
8. Quality and Design Checking

9. Washing

10. Pressing/Ironing

11. Packing.

Production process

Generally, apparel manufacturing process involves Product Design, Fabric

Selection and Inspection, Patternmaking, Grading, Marking, Spreading, Cutting,
Bundling, Sewing, Pressing or Folding, Finishing and Detailing, Dyeing and
Washing, QC etc.

The major processes involved in the production processes of apparel products of

the envisaged factory are discussed as under.

Receiving fabrics

Under this process step the fabric to be used in production process of apparels will
be received from the supplier. Depending on the type of procurement and type of
products, the supplier could be either the manufacturer, or whole seller or retailer.
The fabrics received from the supplier are preserved in the raw material stores
temporarily before they are issued for next step.

Fabric Relaxing

“Relaxing” refers to the process that allows material to relax and contract prior to being
manufactured. This step is necessary because the material is continually under tension throughout
the various stages of the textile manufacturing process, including weaving, dyeing, and other
finishing processes. The relaxing process allows fabrics to shrink so that further shrinkage during
customer use is minimized.

Fabric relaxing could be done either manually or mechanically. Manual fabric relaxing typically
entails loading the bolt of fabric on a spinner and manually feeding the material through a piece
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of equipment that relieves tension in the fabric as it is pulled through. Mechanical fabric relaxing
performs this same process in an automated manner.

Quality assurance process is integrated into this process to ensure that the quality of the fabric
meets customer standards. This step is performed by manually spot-checking each bolt of fabric
using a backlit surface to identify manufacturing defects such as color inconsistency or flaws in
the material. Fabrics that fail to meet customer standards are returned to the supplier
(manufacturer or whole seller of retailer).

Spreading, Form Layout, and cutting

After fabric has been relaxed, it is transferred to the spreading and cutting area of
the garment manufacturing facility. The fabric is first cut into uniform plies and
then spread either manually or using a computer-controlled system in preparation
for the cutting process. Fabric is spread to:

 allow operators to identify fabric defects;

 control the tension and slack of the fabric during cutting; and
 Ensure each ply is accurately aligned on top of the others.

The number of plies in each spread is dependent on the fabric type, spreading
method, cutting equipment, and size of the garment order.

Next, garment forms—or patterns—are laid out on top of the spread, either
manually or programmed into an automated cutting system. Lastly, the fabric is cut
to the shape of the garment forms using either manually operated cutting
equipment or a computerized cutting system.

Embroidery and Screen Printing

Embroidery and screen printing are two processes that occur only if directly
specified by the customer; therefore, these processes are commonly subcontracted
to off-site facilities. Embroidery is performed using automated equipment, often
with many machines concurrently embroidering the same pattern on multiple
garments. Each production line may include between 10 and 20 embroidery
stations. Customers may request embroidery to put logos or other embellishments
on garments.
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Screen printing is the process of applying paint-based graphics to fabric using

presses and textile dryers. Specifically, screen printing involves sweeping a rubber
blade across a porous screen, transferring ink through a stencil and onto the fabric.
The screen printed pieces of fabric are then dried to set the ink. This process may
have varying levels of automation or may largely be completed at manually
operated stations. Like embroidery, screen printing is wholly determined by the
customer and may be requested to put logos or other graphics on garments or to
print brand and size information in place of affixing tags.

Sewing

Garments are sewn in an assembly line, with the garment becoming more complete
as it progresses down the sewing line. Sewing machine operators receive a bundle
of cut fabric and repeatedly sew the same portion of the garment, passing that
completed portion to the next operator. For example, the first operator may sew the
collar to the body of the garment and the next operator may sew a sleeve to the
body. Quality assurance is performed at the end of the sewing line to ensure that
the garment has been properly assembled and that no manufacturing defects exist.
When needed, the garment will be reworked or mended at designated sewing
stations. This labor-intensive process progressively transforms pieces of fabric into
designer garments.

Spot Cleaning and Laundry

In addition to identifying manufacturing defects, employees tasked with performing quality

assurance are also looking for cosmetic flaws, stains, or other spots on the garment that may have
occurred during the cutting and sewing processes. Spots are often marked with a sticker and taken
to a spot-cleaning area where the garment is cleaned using steam, hot water, or chemical stain
removers.

Some customers request that a garment be fully laundered after it is sewn and assembled;
therefore, garment factories often have an on-site laundry or have subcontract agreements with
off-site laundry operations. Commercial laundry facilities are equipped with at least three types of
machines: washers, spinners, and dryers. Some facilities also have the capability to perform
special treatments, such as stone- or acid-washing.

Ironing
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After a garment is fully sewn and assembled, it is transferred to the ironing section
of the facility for final pressing. Each ironing station consists of an iron and an
ironing platform. The irons are similar looking to residential models, but have
steam supplied by an on-site boiler. Workers control the steam with foot pedals
and the steam is delivered via overhead hoses directly to the iron. In most
facilities, the ironing platforms are equipped with a ventilation system that draws
steam through the ironing table and exhausts it outside the factory.

Packaging and Shipping

In the last steps of making a product retail-ready, garments are folded, tagged,
sized, and packaged according to customer specifications. Also, garments may be
placed in protective plastic bags, either manually or using an automated system, to
ensure that the material stays clean and pressed during shipping. Lastly, garments
are placed in cardboard boxes or pp bags and shipped to client distribution centers
to eventually be sold in retail stores, or to customers, if they are produced on
orders.

SERVICE PROFILE

 Timely completion of orders.

 Latest machinery.

 Low rates.

 Well motivated management.

 Healthy and sound relations with buying houses and other textile mills who will
giveus orders.

 All the products will manufacture in owned stitching unit.

 Customization products according to desires of our customers

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VI. OWNERSHIP PATTERN

Sole proprietorship
A sole proprietorship, also known as the sole trader, individual
entrepreneurship or proprietorship, is a type of enterprise that is owned and
run by one person and in which there is no legal distinction between the
owner and the business entity The owner is in direct control of all elements
and is legally accountable for the finances of such business and this may
include debts, loans, loss, etc. A sole trader does not necessarily work
'alone'—it is possible for the sole trader to employ other people.

AREA OF OPERATION

LOCAL BUSINESS AND REGIONAL BUSNIESS

Local business
company which provides goods or services to a local population. Though
most often used when referring to a locally-owned business, the term may
also be used to describe a franchise or corporate branch operating within a
local area.

Regional business
A type of company that has a customer base across a regional area and
provides a variety of commodities, goods, products or services that are
needed to a regionand regional population. Regional companies play a vital
role within the economic system of a nation.

ORGANIZATION STRUCTURE
An organizational structure defines how activities such as task allocation
coordination and supervision are directed toward the achievement of
organizational aims.[1] Organizations need to be efficient, flexible, innovative
and caring in order to achieve a sustainable competitive advantage.
[2]
 Organizational structure can also be considered as the viewing glass or
LALITH FASSION

perspective through which individuals see their organization and its

environment.

W
R
I
O
D
A
T
I
S E
N
C
T
N
N
A
M
G
N
A
M E
G
R
E
R
O
E
T
R

COMPETITORS

• PAVAN GARMENTS

• R.K GARMENTS

• ANUGRAHA APPARELS

• ARAVIND GARMENTS

• SRI SAI FACTORY

INFRASTRUCTURAL FACILITIES

• Good working space area

• Basic Facilities to employees
• Good storage room
• Advance machineries with guidelines
• Training and development
• Attendance
• Employees problem solving
VII. FUTURE GROWTH PROSPECTUS
LALITH FASSION

India has already made a name for itself as far as manufactured of

readymade garments is concerned. There are some factors that go into the
India garments is concerned. There are some factors that go into the Indian
garments industry’s favour such as cost-effective procurement of raw
materials, inexpensive skilled labour and quick adjustment to the kind of
apparels that have potential to sell. Indian readymade garment industry relies
on the aforementioned factors for growth prospects in future.

Textile sector is the oldest and largest manufacturing sector in India.

During the past decade, Indian textile industry was plagued with many issues
such as regulations regarding to licensing and policy distortions which had
fragmented the industry. It was a roller coaster ride for the Indian textile
sector. It was not able to capitalize more on the global trade regime. Indian
textile sector saw countries like China Bangladesh, Sri Lanka, and Pakistan
racing ahead of it even without any significant upstream textile industry
strength. Despite all concerns, the industry saw a GDP of more than 6%. The
domestic sector also saw a significant growth.

The Government later poised to liberalize the fragmented industrial

sector. Termination of the Multi Fibre Agreement (MFA) in 2004, along with
the quota expiry regarding textile, and apparel exports has caused a
considerable change in the industry. Restrictions of the MFA were phased out
in 2004, and with the opening of the market since 2005, Indian textile and
clothing industry has been integrated into the World Trade Organization
(WTO).

Most of the developed countries will experience a decline in their textile

and apparel trade, creating new opportunities for developing countries by
2020. A Techno Pak Report states that an additional increase of USD 360-370
billion will be created in the next decade, resulting in an additional market
opportunity of USD 500 billion.
LALITH FASSION

CHAPTER – 3
MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE
FORCE MODEL

INTRODUCTION:
A model of organizational effectiveness that postulates that there are seven
internal factors of an organization that needs to be aligned and reinforced in order
for it to be successful. The 7S Model was developed ad McKinsey & Co.
consulting firm in the early 1980s by consultants Tom Peters and Robert
Waterman.

The model is most often used as an organization analysis tool to assess and
monitor changes in the internal situation of an organization.

The model is based on the theory that, for an organization to perform well, these
seven elements need to be aligned and mutually reinforcing. So, the model can be
used to help identify what needs to be realigned to improve performance, or to
maintain alignment (and performance) during other types of change.

Whatever the type of change – restructuring, new processes, organizational

merger, new systems, change of leadership, and so on – the model can be used to
understand how the organizational elements are interrelated, and so ensure that
the wider impact of changes made in one area is taken into consideration.

The 7S Model specifies seven factors that are classified into “hard” and “soft”
elements are fuzzier, more intangible and are influenced by corporate culture.

THE SEVEN INTERDEPENDENT ELEMENTS

The basic premise of the model is that there are seven internal aspects of an
organization that need to be aligned if it is to be successful. The factors are split
into two groups: hard or soft. The hard elements are those that can physically be
LALITH FASSION

seen when in place, whereas the soft are more intangible and cannot readily be
seen.

HARD ELEMENTS

1. Strategy - Purpose of the business and the way the organization seeks to
enhance its competitive advantage.
2. Structure - Division of activities; integration and coordination mechanisms.

3. Systems - Formal procedures for measurement, reward and resource allocation.

SOFT ELEMENTS

1. Shared Values

2. Skills - The organization's core competencies and distinctive capabilities.

3. Staff - Organization's human resources, demographic, educational and

attitudinal characteristics.
4. Style - Typical behavior patterns of key groups, such as managers, and other
professionals.
LALITH FASSION

MCKINSEY 7S FRAMEWORK AND ITS IMPLEMENTATION AT

NANDI GARMENTS:
1.STRATEGY:

The top level plan top creates competitive advantage. Focus on the firm’s core
competencies and deploying lean manufacturing principles throughout the firm,
targeting and eliminating waste.

Strategy is a unified course of action to achieve the goal.

Gluck defined the strategy as, Unified, Comprehensive and Integrated plan designed
to ensure that the basic objectives of the organization are achieved.

Mintzberg defined the strategy as, a pattern in a stream of decision or action.

Some main strategies being used at LALITH FASSION are:

 Reduction of Cost

 Reduction of Inventory Stock

 Simplification of Manufacturing Process.

2. STRUCTURE:
The line of reporting, task allocation, co-ordination and supervision levels is
structure. A small hierarchy is needed, which encompasses self-directed work 
teams. Daily interdepartmental stand up meetings to be held daily. The design of an
organization structure is a critical task of the top arrangement of any organization. It
refers to organizational arrangement and relationships. It prescribes formal
relationships among various positions and activities.
LALITH FASSION

3.SYSTEMS:

System includes the formal and informal procedure that govern everyday activity
covering everything from MIS through the systems at the point of contact with the
customer.
 All the machines located at specific place within the organization.
 The various departments are connected through other departments like
production and quality these are connected with store departments.
 All the process and functions are controlled and done through inter office
memos.
 The various business requirements of the company are connected to each other
through internet and telephone.

4.SHARED VALUES:

● All members of the organization on Corporate Social Responsibility (CSR)

● Value for Time
● Customer centric
● Build the team work
● Integrity
● Motivate to Employee for Excellence
● Care for Employees, Share Holders & Society

5.STYLE:

A leadership style refers to a leader’s characteristic behavior’s when directing,

motivating, guiding and managing groups of people.

The LALITH FASSION industry follow “Autocratic Leadership Style” so as to

overcome the problems like communication gap and frustrations among the
employees.

AUTOCRATIC LEADERSHIP STYLE

Autocratic leadership style characterized by individual control on over all decisions

and little input from group their members. LALITH FASSION leaders typically
LALITH FASSION

make choices based on their ideas and judgments and rarely accept advice from
followers. They involves absolute, authoritarian control over a group.

Some of the primary characteristics of LALITH FASSION leadership style:-

● Group leaders dictate all the work methods and processes

● Work tends are highly structured and very rigid
● Little input from group members
● Leader makes almost all of the decisions
● Rules are important and tent to be clearly outlined and communicated
● All the employees work should reach the target goal.

6.STAFF:
The staff will specify the process by which employees are recruited, deployed and
developed. The procedure involving in recruiting the employees and place of
recruitment. The job and responsibility have to be assigned according to their skills

and experience. The LALITH FASSION consists of 2 departments.

Administration, production, Quality, tool room, heat treatment, maintenance,
dispatch and packing.

● The organization has 80 employees

● Employees are trained with state-of – the equipment’s extensive training
● The employees are systematically recruited and shaped to fill in their
profiles schedules are being conducted. Off the job training and on the
job training
● The job and the responsibility are assigned according to their skills and
experience
● The staff motivated to company employees for reaching the target
production and provides rewards to them.

7.SKILLS:

The skills and competencies of the employees. Develop new team skills, problem
solving, waste elimination and process analysis skills, empowerment to make
decisions.
LALITH FASSION

Following are the different types of skills being worked on very regularly as per
the priority:

 Technical Skill – Manufacturing raw wool to woolen cloth.

 Managerial Skill – At LALITH FASSION manager’s duty is to

make sure that all the employees are working at their maximum
productivity.
 Clerical Skill – Maintenance of Accounts to a great extend use this
skill.

USING THE MODEL TO SUIT YOU

Using the 7S model, the change agent’s task is to start with the end in mind. That
is to understand the change needed, working backwards, asking questions as to
how the organization can best be aligned across all the seven elements of the
model, to achieve that objective. Remember, this model is based around the theory
that for an organization to perform well and achieve its objectives, all seven
elements must be aligned, mutually enforcing progress towards the objectives of
the firm. It comes as no surprise, therefore, that, if you understand the goal of the
organization, then the next step is to look at each element and work to realign them
to create synergy.

PORTERS FIVE FORCE MODEL

LALITH FASSION

It includes:

 Bargaining power of buyers

 Bargaining power of suppliers
 Barriers to entrants
 Threats of substitutes products

Bargaining power of buyers

- If the buyers buy in large volumes to the company, they can get more
benefits. 
Bargaining power of suppliers

-Various suppliers of raw materials and inputs with slight differences in quality
and price, so the industry doesn't have biggest problems in negotiating with
them.
Threat of new entrants

-Companies have a recognized brand and a customer base. To achieve attract

and retain customers, new businesses would have to enter with a strong and
attractive investment and variety of products. 

Threat of substitutes products

·Products with short life cycles.

LALITH FASSION

·Products with a trend towards improved quality / price

.·Products with high profit margins.

LALITH FASSION

CHAPTER – 4
SWOT ANALYSIS

SWOT Analysis (SWOT Matrix) is an acronym for strengths, weakness,

opportunities and threats and is a structured planning method that evaluates those
for elements of an organization, project or business venture.

A SWOT analysis can be carried out for a company, product, place, industry, or
person.

Users of SWOT analysis must ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to
make the analysis useful and find their competitive advantage.

 Strengths: characteristics of the business or project that give it an

advantage over others.
LALITH FASSION

 Weaknesses: characteristics of the business that place the business or

project at a disadvantage relative to others.
 Opportunities: elements in the environment that the business or project
could exploit to its advantage.
 Threats: elements in the environment that could cause trouble for the
business or project. Identification of SWOTs is important because they can
inform later steps in planning to achieve the objective. First, decision-
makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable, they must select a different
objective and repeat the process.

Identification of SWOTs is important because they can inform later steps in

planning to achieve the objective. First, decision-makers should consider whether
the objective is attainable, given the SWOTs. If the objective is not attainable, they
must select a different objective and repeat the process.

STRENGTHS OF LALITH FASSION

 Patents.
 Strong brand names.
 Good reputation among customers.
 Cost advantage from proprietary know how
 Favourable access to distribution networks

WEAKNESSES OF LALITH FASSION

 Poor utilization of technology.

 High cost structure.
 Lack in use of new upgrades.
 Improper production line.
LALITH FASSION

OPPORTUNITIES FOR LALITH FASSION

 Consistent growth over years

 Large and growing market
 New technologies
THREATS FOR LALITH FASSION

 Consistent growth over years

 Large and growing market
 New technologies

CHAPTER – 5

ANALYSIS OF FINANCIAL STATEMENTS

Financial statement analysis (or financial analysis) is the process of reviewing

and analyzing a company's financial statements to make better economic
decisions. These statements include the income statement, balance sheet, statement
of cash flows, and a statement of changes in equity. Financial statement analysis is
a method or process involving specific techniques for evaluating risks,
performance, financial health, and future prospects of an organization.

Ratio analysis is a widely used tool of financial analysis; it is defined as the

systematic use of ratio to interpret the financial statements so that the strengths and
weakness of a firm as well as its historical performance and current financial can
be determined. The rationale of ratio analysis lies in fact that it makes related
information comparable. A single figure by itself has no meaning but when.
Expressed in terms of related figure. It yield significance inferences.

MEANING AND DEFINITION

A Ratio is defined as the indicated quotient of two mathematical expressions and

as the relationship between or more things in financial analysis; a ratio is used as
LALITH FASSION

benchmark for evaluating the financial of a firm. The term ratio to the numerical or
quantitative relationship between two items/available.

LIQUIDITY RATIO:-

1. Current ratio: This is mostly used ratio to know the working capital position.

Current assets

Current Ratio= ----------------------

Current Liability

Particulars 2018

Current Assets 6,74,682.00

Current
Liabilities 25,75,790.00
Current Ratio 0.26

Interpretation: - The standard current asset ratio is 2:1. In this company the current
asset ratio will be less than the standard ratio. So, that the financial position of the
company is not good.

2. Quick ratio: - Liquid ratio expresses the relationship between liquid assets and liquid
liabilities.

Current Assets – Inventory ( 6,74,682.00- 6,56,432)

Quick Ratio= -----------------------------------

Current Liabilities

Particulars 2018
Quick
Assets 18,250.00
Current
Liabilities 25,75,790.00
Quick Ratio 0.007
LALITH FASSION

Interpretation: - The standard quick ratio is 1:1 in this company the quick ratio will be
less than the standard ratio.

3. Cash ratio: - It is a ratio of cash equivalent balance to current liability it can be

calculated,

Since cash is the most liquid assets.

Particulars 2018

Cash 18,250.00

Current Liabilities 25,75,790.00

Cash Ratio 0.007

Interpretation: - The standard cash ratio is 1:1 in this company the cash ratio will be
less than the standard

4. PROFITABILITY RATIO:-
1. Gross profit ratio

Gross profit

Gross Profit Ratio= -----------------------------*100

Sales

Gross profit ratio=17.91%

2. Net profit ratio

Net profit

Net Profit Ratio= -----------------------------*100

Sales
LALITH FASSION

There is no Net profit in this year.

3. Current asset ratio

Current asset

Current Asset Ratio= -----------------------------

Fixed asset

Current asset ratio=0.059

4. Operating expenses ratio

Operating expenses

Operating Expenses Ratio= -----------------------------

Sales

Operating expenses ratio=0.157

 LALITH FASSION

LALITH FASSION
KARUR INDUSTRIAL AREA
NEAR NEW DC OFFICE
DAVANAGERE

MANUFACTURING TRADING PROFIT & LOSS ACCOUNT FOR THE YEAR

ENDING 31st MARCH 2018
PARTICULARS AMOUNT PARTICULARS AMOUNT

To Opening Stock 12,56,940.00 58,93,042.00

By Sales
To Purchases
CST
356,763
5%
2,639
12% 33,37,564.00
1874,752
18%
11,03,410
To Power Charges Closing Stock 6,56,432.00
78,240.00
To Manufacturing Expenses
36,256.00
To Labour Charges

To Frieght and Hamali 7,61,208.00

23,615.00
To Gross Profit 10,55,651.00
 LALITH FASSION

65,49,474.00
65,49,474.00

To Salary & Supervision 1,14,000.00 By Gross Profit 10,55,651.00

To Phone/Cell Charges 4,250.00

To Printing & Stationary 2,245.00

To Universal Sumpo 75,069.00

General Insurance
Telephone
To Account and Audit Fees 6,000.00

To Godown Expenses 4,540.00

To Bank Interest and Charges 6,87,446.00

To Repairs and Maintenance 5,277.00

By Net Loss 5,67,645.00
To Depreciation
7,24,469.00

16,23,296.00

16,23,296.00

BALANCE SHEET AS ON 31-03-2018

CAPITAL & LIABILITIES AMOUNT ASSETS & PROPERTIES AMOUNT
CAPITAL ACCOUNT: FIXED ASSETS
Capital Account As per Annexure
48,58,864.00 1,13,15,194.0
LALITH FASSION

Less:Net Loss DY 0
(4,84,045)

( 5,67,645.00
)

INVESTMENT
42,91,219.00
&DEPOSITS:
LOANS & LIABALITES:

Deposit with Bescom 20,000.00

TL with Kar.Bank 220401
TL with Kar.Bank 220501 15,60,776.00
13,34,731.00

H/O 22,47,360.00
CURRENT LIABILTIES: CURRENT ASSETS:
OD with Kar.Bank a/c 9,74,980.00 Closing Stock 6,56,432.00
no.241501
Sundry Creditors 16,00,810.00 Cash in Hand 18,250.00

1,20,09,876. 1,20,09,876.00
00
LALITH FASSION

CHAPTER – 6
LEARNING EXPERIENCE
 I have learnt the organization structure of the company and also all the functional
departments of the organisation. I came to know the process of manufacturing shirts
and also the financial conditions of the company.
 I have learned ratio analysis and value chain analysis of the company
 I studied many practical aspect as compared to theoretical aspects and it is also
exposed me about working of an organization, to relate the theoretical concepts learnt
in the classroom to organizational functioning, decision making crotalarias and real
life application of management.
 I have got the practical orientation of the functions of the various departments of the
company. And I was able to analyze the performance of the company. I understood
the application of theoretical concepts into business decisions in the organization.
 I understood the aspects of delegation of authority, responsibility, co-ordination, and
team work etc.
 I have gained knowledge about all round view of the management operation.
 I got the knowledge about the Analyses of the present status & future strategies of the
company.

 I have realized the importance of potential production system.

 A efficient production system can be used to reduce off standard performance and
to increase on standard performance.

 With respect to all production system majorly focusing on sewing system, Handling
time is the major part of sewing operation which can be minimized as needle time
remains constant in all types of system.

 Production systems are the main key success factor for every company to reduce
cost and boost the efficiency and productivity of sewing unit.

 Employees given to the employees and involvement of their hardwork and

dedication towards their work with expertise.
LALITH FASSION

CONCLUSION
 The detail study of the organizational performance of textiles industries and
value of the company based on political, economic, social and technology and
also value chain of the company I would like to conclude about it
 The company is doing well with good management labours.In davanagere, This
Company is emerging day by day. The company mainly aims at quality and takes
much care while production, which has made it possible to export the products
to different places As all the departments are computerized and manually done it
increases the efficiency of work and also the accuracy .
 They are grabbing the opportunities and fulfilling the customer satisfaction.
There is a good co-ordination between management and employees of the
industry. The main success behind is, Chairman, Managing director and of the
industry who are giving best suggestion to get good output from employees
 The company looks the employees are their resource and treats them well good
pay and incentives and also other facilities to them. The industry is changing
according to modern technology and implying it in production this increase
demand for their products in international market.

BIBLOGRAPHY

book by-SUDARSHAN REDDY (2010) principles and practices 2 nd revised

addition financial management book.

websites

www.dcmse.com

www.msme.gov.in.

www.googl.com

www.managementstudyhq.com/porters-five-force-model.html