Project Report On Group
Project Report On Group
Project Report On Group
Ashima Group
Texcellence Complex
Khokhra Mehmedabad
Ahmedabad - 380 021.
INDIA
Submitted To:
Prof. ---
Submitted by:
FYBBA
N.R. Institute of Business
Administration
Ahmedabad
2009-2010
2
N.R. INSTITUTE OF BUSINESS ADMINISTRATION
GLS Campus, Mardia Plaza Lane, Off. C.G. Road, Ellisbridge, Ahmedabad-380006, Phone: 26430373
CERTIFICATE
This is to certify that the report on the visit to_ Ashima Group _
requirements for the completion of “Practical Studies” in the area of Management at the
______________ __________
__________________
Director In-charge Prof. in-charge External
Examiner
Date: / /2010
2
Acknowledgement
I take this opportunity to thank our In-Charge Director Prof. ---, Professor in-
charge --- for their encouragement and the office staff for providing us all the facilities
for making the visit more learning oriented.
(Name)
Date:
Preface
This report is prepared on the basis of an Industrial Visit to Ashima Group. This
industrial visit was carried out with a view to gain an insight to the managerial
knowledge and skills required in real life situations. The company is a very good example
of a firm doing vertically integrated production, vertically integrated production is very
important for economizing and to seize the upcoming opportunities in the business world
in the 21st century.
The company deals in 100% cotton fabric manufacturing. This report contains all
the necessary information of the company and its departments.
It was earlier said, “Knowledge is Power”. But now this saying is replaced by
a more correct saying, “Applied Knowledge is Power”. The Industrial Visit and this
report is just a small but remarkable step in knowing the practical implications of
management.
Index
1 Company Profile 1
1.1 Objective of Visit 1
3 Form of Organization 5
4 Organization Structure 6
4.1 Hierarchy 6
5 Location 7
5.1 Factory Address 7
6 Production 8
6.1 Product Range 8
7.3 Profit 14
7.4 Dividend 14
8 Marketing 15
8.1 Marketing Position 15
9.7 Separation 18
16 Annexures
A Organizational Structure of Denim Production
B Profit & Loss Statement
C Balance Sheet
1 Company Profile
Website:
http://www.ashimagroup.com
1
Their commitment to the philosophy of Texcellence has brought them
closer to their discerning fabric customers across the globe. They cherish the same
values that concern their customers and are fired by the same urge to be the best.
Their quest for excellence has frutioned into a fixed assets base exceeding
US$ 120 Million. With their consistent policy of adopting the most modern state-
of-the-art technology of the world, they can offer the best in cotton fabrics that
anybody, anywhere in the world may aspire to.
2
1.7 Special awards & recognition
Group Ashima has achieved several milestones in the march towards "Texcellence".
Ashima is the first textile company to adopt and
get certified for "Integrated Quality and
Environmental Management System" ISO
9001:2008 and ISO 14001:2004.
The present form is seen today, as the foremost cotton textile manufacturer
with over US$ 135 million turnover and spread over 70 acres of land. This is the
result of a vision, and commitment of its founder Mr. Chintan Parikh. The
stupendous growth is a result of an enterprise fired by will, a keen eye on the
global developments in cotton textiles and an insatiable urge to do nothing but the
best by every constituent of Ashima headed by Mr. Chintan Parikh.
Today, Group Ashima has become one of the major success stories in the
Indian textiles arena.
In the last 12 years, Ashima has spread its wings across five continents to
emerge as one of India’s foremost cotton textiles manufacturers. At the core of
this inspiring saga of achievements is Mr. Parikh’s unique ability to identify the
potential business avenues in the field of cotton textiles in tune with the changing
times and market scenario in early 90’s. His quest for technological supremacy,
his obsession for global quality standards, his faith in human resource
development, and above all his vision and determination to make Ashima a global
textiles group.
In less than two decades, Group Ashima has been able to join the select
global league of major cotton textile manufacturer and a major player in Indian
textiles arena.
4
3 Form of Organization
Advantages:
(1) Separate legal existence: Being a separate legal entity, it acts under its own
name. The company may own and dispose off property in its own capacity. It can
also enter into contracts with members and outsiders.
(2) Limited liability: Liability of the members of a limited company is limited to
the face value of their shares. Members are not required to contribute to the
liabilities of the company beyond the nominal value of shares in case of
liquidation of a company.
(3) Transferability of shares: Shares in a company can be transferred from one
person to another person without the consent of the other members.
(4) Continuity of existence: The life of a company depends upon the terms of its
memorandum of association, which may be for a specified period. The death or
insolvency of its members does not affect the existence.
(5) Control: The control over a company can be secured by acquiring majority of
the company’s shares.
(6) Social benefit: The social benefit of a company is that it gives employment to
a number of persons, and contributes to the growth and the development of the
nation.
(7) Limitation of action: A company may perform only those acts, which are
permitted by its memorandum. The scope of the company’s activities is limited by
its memorandum.
Disadvantages:
(1) Lack of secrecy: The Board of Directors, in which a number of persons may
be involved, manages the company. All important matters are discussed in the
meeting of directors. In such circumstances, it is rather difficult to maintain the
secrecy of the business.
(2) Difficulty in formation: Many legal formalities are required to be completed
for obtaining a certificate of incorporation.
(3) Fraudulent management: There are several provisions under the Companies
Act to check frauds; yet frauds are common in many companies.
5
4 Organization Structure
4.1 Hierarchy
6
5 Location
Texcellence Complex
Khokhra Mehmedabad
Ahmedabad - 380 021.
INDIA
Tel: 079-22773513
Fax: 079-22773061
All the above advantages help the industry to reduce its cost of production
effectively.
7
6 Production
Fabric Range
Group Ashima offers the most comprehensive range of cotton textile products,
encompassing each and every need of the garment industry. Thus, they have been able to
establish themselves as a one point source for the garment industry, offering:
8
6.2 Production Process in sequence
The production process of Denims can be easily understood with the help of
the following chart:
Blow Room
Card
Draw frame
Warping
Air-jet weaving
Sizing
Monforts finish
9
6.3 Plant & technology
10
of the best fusible interlinings.
…..The Knit processing for yarn dyeing, fabric dyeing
and finishing facilities consist of state-of-the-art
equipment from leading European and Japanese
companies and technology transfer from Santex AG.
They have the continuous mercerizing range from
Dornier, soft flow ‘Venus’ dyeing machines from
Sclavos, tubular as well as open-width finishing ranges
from Santex and yarn dyeing machines from Fong’s .
The SSM precision winding machine gives uniform
density for best yarn dyeing results.
…..The Circular Knitting division has grey fabric
manufacturing facility with circular knitting machines
from Terrot and Fukuhara of various diameters, for
making single jersey, interlock and rib fabric in plain
as well as various structures and in various counts. To
create engineered stripes with a wide range of
structures, they have world-class auto stripers with
mini jacquard from Terrot. They have flatbed knitting
machines from Shima Sieki to produce accessories like
collars and cuffs of various sizes supplied with the
body fabric. These machines have auto striping facility
with four colours to produce collars with tipping.
…..They have also established a modern laboratory
having computerized colour-matching system from
Datacolor along with Spectraflash – 600 type
spectraphotometer and Ahiba Nuance lab dyeing
system. All to ensure world-class fabrics that can do
the world’s leading brands proud.
…..Their garments division has various machines
including many special machines to meet the flexible
styling requirements of buyers. These include power
driven sewing machines Automatic Gerber spreading
machine with cutting table, Rotondi finishing
equipment with topper press, legger press, foam
finisher, collar cuff press, Juki automatic pocket
welting machine, Hashima and Kannegiesser fusing
machines, electronic bar-tack machine, button sewing
machines, spot removing gun many special machine
for shape tackling, elastic attaching, pocket making,
placket making, waist bend attaching, loop making,
pocket creasing, bottom hemming etc., special single
needle with under bed thread trimmer and electronic
control panel for special operations.
…..In consultation with M/s Kurt Salmon &
Associates, a sophisticated in-house facility has been
11
established in India by Atrium called The Best
Engineered Product Laboratory (BEPL). This facility is
equipped with one of the latest CAD systems, a cutting
and sewing facility and a garment washing and
finishing facility. It also has training, customer
interaction and archive storage areas and a purpose
specific library. BEPL is designed to generate sample
prototypes of yet-to-be-ordered garments, keeping in
mind the Asian working environment, in virtual reality.
Raw Materials
They purchase the cotton from Gujarat and Punjab. While for getting the
Rich Cotton (fine, soft and light weighted cotton) they have to import it from
USA.
Table of capacities
Denims 10.5 Million Meters per annum
Yarn Dyeing Shirting’s 11.5 Million Meters per annum
Piece Dyed Shirting’s 04.5 Million Meters per annum
Piece Dyed Khaki - (Bottom
17.5 Million Meters per annum
Weights)
Fusing Interlining 06.0 Million Meters per annum
Circular Knitting 15.0 Million Meters per annum
Total 65 Million Meters per annum
Garmenting 01.2 Million Pieces per annum
The Company is having Process Layout for its Denim Production, which
is also known as Functional Layout.
Group Ashima firmly believes that they are the guardians of tomorrow’s
legacy. All of us should work towards conserving our environment and preserving
our natural resources. Their commitment to the `green’ cause is reflected in their
thoughts as well as deeds. Their commitment is towards cleaner production,
environmental protection & sustainable development. Towards this goal they
have invented a technology for an innovative and noble approach to treat
12
textile waste by enriched biomass, opening up a new horizon for the
environmentalists. The excess biomass can be used as a bio-fuel leading to
prevention of air pollution and conservation of water and energy.
They adhere to the most stringent of pollution control norms. There are six
primary and secondary effluent treatment plants treating a total 3360 M3 per day.
Their effluent treatment norms are in tune with world standards.
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7 Financial Information
Note- For Profit & Loss Statement and Balance sheet refer to Annexure B and C
respectively.
The Group Ashima was established in 1982, with a moderate capital base
of US$ 20,000. Today, their investment in technology and infrastructure exceeds
US $ 120 million.
The Group is doing the turnover of over US $ 135 million per annum.
7.3 Profit
The Net Loss of the Group for the year 2008-09 was Rs. 28.23 Crore.
While looking to the Profit and Loss Statement we can say that the Group is
running at loss from 2004.
7.4 Dividend
Dividends Declared
Announcement Effective Dividend Type Dividend (%) Remarks
Date Date
14-06-02 20-06-02 Final 0.00 -
17-11-97 - Final 28.00 -
12-11-98 - Final 18.00 -
18-11-99 - Final 15.00 AGM & Dividend
30-09-00 - Final 12.50 -
14
8 Marketing
The Group Ashima ranks second in India among the 100% cotton fabric
manufacturers.
Physical Distribution
The Distribution of the products to the end users is done through the
Indian garment exporters; their domestic brands and other brands viz. Raymond,
Pantaloon, Lee, Wrangler, Ginny & Johnny, Killer, Levis in USA, Ring Denim in
UK, etc.
Distribution Channel
Group
Ashima
15
8.4 Advertising & Sales Promotion
Advertising:
Sales Promotion:
The company uses mainly two strategies for the sales promotion which are
as follows:
The level of competition in the cotton textile industry is high. The major
competitors of the Company are Gindal, Shripal and Arvind.
Ashima also markets its fabrics to more than 150 Indian garment
exporters.
16
9 Human Resource Management
The total strength of the people working in the company is 4000. Among
them 600 are managerial employees and 3400 are workers. Out of 3400 workers,
400 workers are engaged in the Denim production process.
The process of recruitment and selection starts only after the approval of
Ms. --- the head of HR and IR department.
Emoluments
Compensation
17
9.5 Performance Evaluation & promotion
Performance appraisal
Trade union
9.7 Separation
18
10 Research & Development
19
of 500 mm./mints; the lea strength tester measurers the
CSP of yarn. They have the stiffness tester, warp
elongation tester, fabric stretch tester etc.
The finished fabric is tested for various fabric
parameters as per international standard testing methods
like AATCC, ASTM, ISO, etc. The finished fabrics tests
are carried out for constructions, weight, percentage
shrinkage, Skew/bow %, tear strength DP ratings, CIE
whiteness, pH, abrasions, seam slippage, spray rating
(for Teflon coated), percentage stretch / percentage
recovery (for lycra contents), colour fastness. For this
purpose host of sophisticated testing equipments all from
well known suppliers matching world standards have
been employed like Martindale (Abrasion Resistance,
etc) , colour fastness like Megasol (Light Fastness),
Gyrowash (Washing Fastness), Wascator (Dimensional
stability), and Morapex (fabric core pH measurement).
The company doesn’t have any future plans and projects because currently
it is facing the problem of liquidity ratio.
The Group spends its 2% of Net Profit on Research and Development every year.
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11 Social Obligations
21
12 Findings
• The Company is not getting the benefits provided by the Govt. to the
industries located in the Industrial Area because it is not located in an
Industrial Area.
• The factory is spread over 70 acres of land and this space is not utilized
completely by the Company.
• Ashima is the Company which is despite running at its full capacity
making loss; the reason is that it has not been able to recover from the
onslaught of the recession.
13 Suggestions
• Company should expand its production by utilizing its free land area
around its production unit.
• As there is an increasing demand of Denim in the market so the company
should increase the production of Denim by setting more machines, in order to
increase its profitability.
• Company should try to increase the efficiency and reduce the cost of
production as much as possible for speedy recovery.
• Strategies should be made by the Company to face the future recession so
that it may not suffer like it suffered in the last recession.
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14 Conclusion
15 References
• http://www.ashimagroup.com/
• http://www.moneycontrol.com/; Source: Religare Technova
23
Annexure B
Profit & Loss Statement of Ashima
Section 1.01 ------------------- in Rs. Cr. -------------------
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 483.03 449.46 236.14 223.21 208.20
Excise Duty 13.14 1.55 0.00 0.00 0.00
Net Sales 469.89 447.91 236.14 223.21 208.20
Other Income -18.46 -63.91 -11.07 -21.25 -8.23
Stock Adjustments -2.90 0.93 -1.23 -5.06 -4.48
Total Income 448.53 384.93 223.84 196.90 195.49
Expenditure
Raw Materials 352.70 294.44 141.14 133.70 123.86
Power & Fuel Cost 17.87 29.90 22.39 23.34 22.11
Employee Cost 24.21 32.89 27.81 28.55 25.77
Other Manufacturing Expenses 23.25 30.20 22.00 21.97 16.22
Selling and Admin Expenses 7.66 16.09 12.08 0.00 0.08
Miscellaneous Expenses 1.30 1.29 1.07 12.83 15.24
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 426.99 404.81 226.49 220.39 203.28
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Operating Profit 40.00 44.03 8.42 -2.24 0.44
PBDIT 21.54 -19.88 -2.65 -23.49 -7.79
Interest 82.30 25.51 3.14 2.28 4.26
PBDT -60.76 -45.39 -5.79 -25.77 -12.05
Depreciation 30.35 20.30 15.27 15.22 13.77
Other Written Off 0.91 0.78 0.84 1.95 2.26
Profit Before Tax -92.02 -66.47 -21.90 -42.94 -28.08
Extra-ordinary items -1.78 1.11 0.53 0.22 0.00
PBT (Post Extra-ord Items) -93.80 -65.36 -21.37 -42.72 -28.08
Tax 0.04 0.31 0.21 0.17 0.16
Reported Net Profit -93.82 -65.66 -21.58 -42.89 -28.23
Total Value Addition 74.29 110.37 85.34 86.70 79.42
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 333.69 333.69 333.69 333.69 333.69
Earning Per Share (Rs) -28.12 -19.68 -6.47 -12.85 -8.46
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) -25.82 -45.29 -51.75 -47.98 -56.44
Source : Religare Technova
Annexure C
Balance Sheet of Ashima
Section 1.01 ------------------- in Rs. Cr. -------------------
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 53.87 53.87 53.87 53.87 53.87
Equity Share Capital 33.37 33.37 33.37 33.37 33.37
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 20.50 20.50 20.50 20.50 20.50
Reserves -119.51 -184.48 -206.06 -193.47 -221.71
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth -65.64 -130.61 -152.19 -139.60 -167.84
Secured Loans 508.70 541.58 541.61 447.66 450.52
Unsecured Loans 83.42 28.57 26.34 23.49 22.93
Total Debt 592.12 570.15 567.95 471.15 473.45
Total Liabilities 526.48 439.54 415.76 331.55 305.61
Dec '04 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 15 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 480.31 328.78 317.52 318.62 307.63
Less: Accum. Depreciation 228.92 20.27 33.81 68.35 79.64
Net Block 251.39 308.51 283.71 250.27 227.99
Capital Work in Progress 0.78 0.00 0.04 0.00 0.00
Investments 55.86 33.85 36.84 36.84 33.00
Inventories 60.67 55.90 51.32 44.29 39.18
Sundry Debtors 162.66 13.21 13.99 14.20 18.24
Cash and Bank Balance 8.97 3.48 1.31 7.03 4.61
Total Current Assets 232.30 72.59 66.62 65.52 62.03
Loans and Advances 23.44 57.29 55.08 10.46 10.95
Fixed Deposits 6.03 4.73 4.30 0.00 0.00
Total CA, Loans & Advances 261.77 134.61 126.00 75.98 72.98
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 45.42 38.80 35.27 35.38 29.80
Provisions 1.16 1.56 1.73 2.72 3.09
Total CL & Provisions 46.58 40.36 37.00 38.10 32.89
Net Current Assets 215.19 94.25 89.00 37.88 40.09
Miscellaneous Expenses 3.25 2.92 6.17 6.55 4.53
Total Assets 526.47 439.53 415.76 331.54 305.61
Contingent Liabilities 309.11 293.17 258.70 258.88 259.09
Book Value (Rs) -25.82 -45.29 -51.75 -47.98 -56.44
Source : Religare Technova