Cotton Industry

MINI PROJECT
A STUDY ON INDUSTRY AND COMPANY ANALYSIS

(WITH REFERENCE TO TEXTILE INDUSTRY)
A Mini Project report submitted in partial fulfillment of
the requirements for the completion of II Semester

Submitted by
G.SUMALATHA
(Reg. No. 13471E0082)

Under the guidance of
K.KRISHNA VENI
M.B.A,
Associate Professor

DEPARTMENTOF M.B.A.
NARASARAOPETA ENGINEERING COLLEGE,
NARASARAOPET-522601, GUNTUR (DT).

Affiliated to
Jawaharlal Nehru Technological University,
Kakinada
(2013 2015)

Introduction to cotton industry:

Cotton is a soft, staple fiber that grows around the seeds of the
cotton plant. It is a natural fiber harvested from the cotton plant. The
fiber most often is spun into yarn or thread and used to make a soft,
breathable textile, which is the most widely, used natural-fiber cloth in
clothing today.
History of cotton industry:

Indian Cotton Industry's history of establishment has a rich past.
English did gradual inaugurations of a number of beneficial
industries in India and the country was opening its eyes to a whole
new era of mechanisation. With 19th century India had
successfully established major production industries, owing to the
initiative of the British East India Company. Cotton was an
essential staple fabric, which was needed in almost every work of
life in India.

Major competitors in industry:

Company name place

1) Paramount Textiles Mills Pvt. Ltd - Madurai
2) Siva Sankari Mills - Coimbatore
3) PEC Ltd - Delhi
4) Indus Fila Pvt. Ltd - Bangalore
5) Alok Industries - Silvassa
6) R.M. Mohite Textilies - Kolhapur
7) Sachin Textiles - Ichalkaranji
8) Kayaar Exports - Tiruchengode.
9) GTN industries - Hyderabad
10) GTN Enterprises - Kochin
11) Prathibha Syntex - Ahmedabad
12) Mandhana Weaving House - Tarapur
13) Bombay Royan Fashions - Sangli

Problems in industry:
Cotton textile industry is obsessed with many problems. Two main factors
which have wrecked die industry are Government's textile policy and the
growth of the power loom sector.
Power shortage-Textile mills are facing acute shortage of power. Supplies of
coal are difficult to obtain and frequent cuts in electricity and load shedding
affect the industry badly. This leads to loss of man hours, low production and
loss in the mills.
Low productivity of labour-Low productivity is another major problem of cotton
textile industry. On an average an Indian factory worker only handles 380
spindles and 2 looms as compared to 1,500-2,000 spindles and 30 looms in
Japan. If the productivity of an American worker is taken as 100, the
corresponding figure for U.K. is 51 and for India only 13. Also industrial
relations are not very good in the country. Strikes, layoffs, retrenchments are
the common features of many cotton mills in the country.

POLICY OF GOVERNMENT OF INDIA TOWARDS SPINNING INDUSTRY

The Cotton production policies in India historically have been oriented toward
promoting and supporting the textile industry. The Government Of India
announces a minimum support price for each variety of seed cotton (kapas)
based on recommendations from the Commission for Agricultural Costs and
Prices. The Government Of India is also providing subsidies to the production
inputs of the cotton in the areas of fertilizer, power, etc

Markets for Indian Cotton

The three major groups in the cotton market are
Private traders

State-level cooperatives

The Cotton Corporation of India Limited.

SUGGESTIONS OF INDUSTRY

It is suggested that Government should provide good Infrastructure.

It is suggested that Government should provide loans.

It is suggested to maintain the inventory properly.
It is suggested to use the advanced technology to produce quality
output.
It is suggested to find the labour problems and solve them.
It is suggested to utilize the optimum resources.
It is suggested Modernization and consolidation for creating a global
competitive industry.
It is suggested to increase Indias share in world trade to 9%by 202
COMPANY PROFILE

Introduction:

Y.S.R. Spinning & Weaving Mills Pvt. Ltd was established in 1999,
with a spindle capacity of 4500 spindles. After expansion made in
2003 and 2006, it was having 25514 spindle and 1030 rotors and 8
numbers of air jet weaving machines to produce 5 tons of ring spun,
2 tons of open end, 1.5 tons of ring doubling and 2000 meters of
fabric per day.
In spinning department the mill has a complete range
of LMW, Trumac machines from blow room to spinning departments
and in weaving
Department PICANOL Omni plus air jet weaving machine.

VISION / MISSION

VISSION
The company has a vision to excel in all fields of textile industry and agriculture
produce basis.
The company will be intensively customer focused and will offer products and
services which provide the best value for the customers.

MISSION
To manufacture a high quality yarn thereby withstanding high level of
competitiveness.
Developing a long term relationship with the customers and suppliers.
To use latest technological strategies during production thereby forming an
innovative approach.
To provide a safe, fulfilling and rewarding work environment for the employees.
The company operates in the servicing and supporting the communities.
Promoters of the company:

Name of CEO

Mr. Y. Sridhar Reddy
Primary Business Type Manufacturer
Establishment Year 1999
No. of Employees 300
Market Cover
Annual Turnover Rs.70.00 Crores
Mr. Yerram Sridhar Reddy started his business as cotton
commission agent in 1977 at his native place Idupulapadu, Inkollu
Mandalam, Prakasam District, Andhra Pradesh,
ORGANIZATIONAL STRACTURE
Products:

PRODUCTS

The company offers an exclusive collection of white cotton fabrics of
all sizes. The white cotton fabric is made up of pure cotton. The company
also deals with the manufacturing and supplying of organic cotton yarn.
It provides organic cotton yarn in all shades. It uses environment
friendly procedure for producing our organic cotton yarn.

Cotton Fabrics cotton yarn.

Major competitors in company:

COMPETITORS
Y.S.R spinning mills is having 50 spinning mills as competetors.
Some of them are..
Dhanalakshmi cotton mills pvt Ltd., Ganapavaram.
ICM (Idupulapadu cotton mills), Ganapavaram.
Vasantha Spinning mills, Thimmapuram.
Tirumula spinning mills,Ganapavaram
Pujitha spinning mills,
Amaravathi textile mills,Martur
Prasuna vamsi Krishna spinning mills, Ganapavaram.
Siva Swathi textile pvt Ltd., Ganapavaram.
NSL textiles Pvt Ltd, Edlapadu.

POLICIES OF THE COMPANY

Quality Policy
Quality is integrals to everything at Y.S.R we adopt holistic quality
assurance system and an integrated system which covers the entire
production process. All lots are tested before giving to the mixing.

The company believes quality is a continual process. With a focus
clearly an delivering quality products and services, we integrate to constantly
innovate and excel.

Value

By a clear comprehension of the market dynamics and the assimilation
of the cutting edge technology the company assures the highest quality
standards are met at all times.

AWARDS OF THE COMPANY

Best exporter award from Government of A.P in 2005-2006.
Stood first in India in scientific processing of cotton Seed in 2007-2008
First in India domestic sales in cotton seed extraction in 2010-2011

SWOT ANALYSIS
Strength
YSR Spinning mill have rich resources of raw materials.
YSR Spinning mill is rich in highly trained manpower. The company have a
huge advantage due to lower wage rates.
It produces quality output.
Weakness
Labour force giving low productivity as compared to other competing
companies.
Technology obsolescence despite measures .
Low bargaining power in a customer-ruled market.
Company seriously lacks in trade pact memberships.

Opportunity
Low per-capita domestic consumption of textile indicating significant
Potential growth.
Companies need to concentrate on new product developments.
Increased use of CAD to develop designing capabilities and for developing
greater options.
Threats
Competition in post-2005 is not just in exports, but is also likely within the
country due to cheaper imports of goods of higher quality at lower costs.
Alternative competitive advantages would continue to be a barrier.

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What is the history of the cotton industry in India?

What are some of the major problems faced by the cotton textile industry?

MINI PROJECT

A STUDY ON INDUSTRY AND COMPANY ANALYSIS

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