A

PROJECT REPORT
ON
RECRUITMENT AND SELECTION
OF
“VARDHMAN MILLS LTD”

Submitted in partial fulfillment of the degree of Bachelors of Business

Administration (2006-2008), Lovely Professional University

SUBMITTED TO: - SUBMITTED BY:

MS. Rubeena Ashmita Mondal

BBA-MBA (int.)
Section- B
Roll no. 56
Regn. No.3020070020

Lovely Professional University

Lovely School of Business
Phagwara, Jalandhar
ACKNOWLEDGEMENT

We have tried our best to present this information as clearly as possible

using basic terms that we hope will be comprehended by the widest spectrum
of researchers, analysts and students for further studies.

With pleasure we pay our gratitude of VARDHMAN MILLS LTD,

Chandigarh road Ludhiana (P.B). for their wholehearted cooperation and
guidance. The amicable and nurturing ambience provided by them has really
made the Project a pleasure experience to cherish with.

We have completed this study under the able guidance and supervision of
Ms.Amrita and Mr. Mahindera (Personnel Managers, Vardhaman). We will
be failed in our duty if we do not acknowledge the esteemed scholarly
guidance, assistance and knowledge. We have received from them towards
fruitful and timely completion of this work.

Mere acknowledgement may not redeem the debt we owe to our parents for
their direct/indirect support during the entire course of this project.
In the End we would like to express my deepest gratitude to the entire
faculty members
PREFACE

This project report is the result of our 1 day Project at Vardhaman. It aims at
providing a first hand practical experience of the industry to the students. It
really helped us to know the real business world closely, which in turn
influenced our perception.
We are privileged that we got an opportunity to pursue our one day visit in
such a reputed, well established, fast growing and professionally managed
organization like “Vardhaman Mills Ltd.”.
The project assigned to us dealt with the study of different Management
aspects, Policies and strategies followed at Vardhaman got an opportunity to
see & understand as to how all these things done in Vardhaman.

We are extremely thankful to the people of “Vardhaman Mills Ltd.” for

giving this golden opportunity of doing our Project work in their
organization and shall remain obliged towards them.
OBJECTIVE OF THE STUDY

The main objective of our study was to know recruitment and selection
procedure in Vardhaman Mills Ltd., which was totally in accordance to our
project title. The main objective of study was fragmented into three sub
objectives to reach the depth of the objective under study.

1) To study the process of recruitment and selection of the employees at

Cosmo Ferrites Limited.

2) To know what are the various methods employed for recruiting & tools &
Techniques used for selection.

3) To know effectiveness of recruitment & Selection process.

COMPANY
PROFILE

Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at Ludhiana,
Northern India. Since then, the Group has expanded manifold and is today, perhaps, the largest textile
conglomerate in India. The Group portfolio includes manufacturing and marketing of Yarns, Fabrics,
Sewing Threads, Fibre and Alloy Steel.
MISSION

Vardhman aims to be world class textile organization producing diverse range of products for the global
textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and
customer service based on creative combination of state-of-the-art technology and human resources.
Vardhman is committed to be responsible corporate citizen.

S P Oswal, Chairman - Vardhman Group

HISTORY

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known
as the "Manchester of India". Within the precincts of this city is located the Corporate headquarters of
the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under
the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one of the largest
Textile Business houses in India.

At its inception, Vardhman had an installed capacity of 14,000 spindles, today; its capacity has
increased multifold to over 5.5 lacs spindles. In 1982 the Group entered the sewing thread market in the
country which was a forward integration of the business. Today Vardhman Threads is the second
largest producer of sewing thread in India. In 1990, it undertook yet another diversification - this time
into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a
capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin,
sheeting, shirting in the domestic as well as foreign market. This was followed by entry into fabric
processing by setting up Auro Textiles at Baddi, which currently has a processing capacity of 1 lacs
meters/day.

In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman
Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fibre production undertaken with
Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong
Kong, Korea, UK and EU in addition to the domestic market. Adherence to systems and a true
dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which is
the first in Textile industry in India and yet another laurel to its credit.

PORTFOLIO
The group portfolio includes Yarn, Fabrics, Sewing Thread, Fibre and Alloy Steel.
Yarns
Yarn Manufacturing is the major activity of the group accounting for 65 percent of the group turnover.
Vardhman is virtually a supermarket of yarns, producing the widest range of cotton, synthetics and
blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is the market leader in
India. The group has nine production plants with a total capacity of over 5.5 lacs spindles, spread all
over the country. In many of the yarn market segments, Vardhman holds the largest market share.
Vardhman is also the largest exporters of yarn from India, exporting yarns worth more than USD 90
million.

Sewing Thread
Vardhman is the second largest producer of sewing thread in the country. The sewing thread
manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its sewing
thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12 percent of the
group turnover.

Fabrics
The group has created state-of-the-art fabric weaving and processing facilities in its plant at Baddi,
Northern India. The group has installed 208 shuttle less looms and a fabric processing capacity of 30
million meters per annum in collaboration of Tokai Senko of Japan. Fabrics business contributes 8
percent to the group turnover.

Fibre
The group has recently set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in collaboration with
Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000 tons per annum. Fibre
contributes 8 percent to the total turnover of the group.

Steel
The Group is also present in upper-end of the steel industry. The group has manufacturing capacity of
100000 tons of special and alloy steel. The group supplies its steel products to some of the most
stringent quality steel buyers like Maruti and Telco. It contributes 6 percent to the total turnover of the
group.

HOLDINGS
Spinning Business

Domestic Trade Area Units

Vardhman Spinning & General Mills

Ludhiana, Punjab

Auro Spinning
Baddi, HP

Arihant Spinning
Malerkotla, Punjab

Arisht Spinning
Baddi, HP

Gas Mercerised Yarn Business

Hoshiarpur, Punjab

Auro Dyeing
Baddi, HP

Export Oriented Units

Anant Spinning
Mandideep, MP

Vardhman Spinning & General Mills Export Oriented Units

Baddi, HP

VMT
Baddi, HP

Fabric Business

Auro Weaving
Baddi, HP

MSML Textiles Division

Baddi, HP

Auro Textiles
Baddi, HP

Sewing Thread Business

ST-I
Hoshiarpur, Punjab

ST-II
Ludhiana, Punjab

ST-III
PERFORMANCE

During the last 10 years, Vardhman Group has recorded 11 percent top line growth rate, which is higher
then the industry average growth rate. The Group turnover has grown from Rs 723 crores in 1995 to Rs
1913 crores (USD 439 million) in 2003-04. The exports has grown from negligible level in early nineties
to Rs 473 crores (USD108 million) in 2003-04.

Financial Indicators Of Vardhman Group (Rs. In Crores)

Particulars Group Group Group Group Group

2003-04 2002-03 2001-02 2000-01 1999-2000
Gross Sales 1,913.07 1,763.60 1,906.91 1,878.58 1,679.34
Fob Value Of Exports 473.07 387.37 439.21 466.81 471.27
Profit Before Tax 139.13 109.23 50.50 101.97 123.44
Cash Accrual (PBT + Dep.) 245.49 219.44 171.80 206.67 219.89
Gross Block 1,534.14 1,725.27 1,822.64 1,735.74 1,505.34
Net Block 840.26 1,071.75 1,157.67 1,188.09 1,056.59
Capital Employed 1,807.22 1,744.25 2,256.17 2,125.27 1,969.22

Financial Indicators Of Vardhman Group (USD In Millions)

Particulars Group Group Group Group Group

2003-04 2002-03 2001-02 2000-01 1999-2000
Gross Sales 438.78 371.44 400.38 410.08 387.12
Fob Value Of Exports 108.50 81.59 92.22 101.90 108.64
Profit Before Tax 31.91 23.01 10.60 22.26 28.46
Cash Accrual (PBT + Dep.) 56.31 46.22 36.07 45.12 50.69
Gross Block 351.87 363.37 374.27 372.24 345.18
Net Block 192.72 225.73 237.73 254.79 242.28
Capital Employed 414.50 367.37 463.28 455.77 451.55
MARKET

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

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

Largest Dyeing Capacity of Fibre and Yarn

Largest Exporter of Cotton Yarn

Market Leader in Hand Knitting Yarns in India

Largest range of Textile products

Collaborations with specialist worldwide

Second largest producer of Sewing Thread in the country

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

BRAND AMBASSADOR

Mrs. Shweta Tiwari (TV Artist)

ACHIEVEMENTS
It's an overwhelming feeling when the efforts and hard work put in are recognized and felicitated. A
feeling that galvanizes the Group into believing in more, in itself and reaffirming its commitment to offer
products that invoke trust and reliability.

Back home, the Vardhman Group became India's first textile company to be awarded ICO9002/ ISO
14002 Certification. It is the largest producer and exporter of yarns and Grey woven fabrics from India.
Vardhman is also the largest producer of tyercord yarns and the second largest producer of sewing
threads in India. The Vardhman Group vision of excellence is matched by a dedication and sincerity to
be the best and excel in every industry it has a presence.
Textile Export Promotion Council 2003-04

Gold trophy in EOU/EPZ for export of cotton yarn

Textile Export Promotion Council 2003-04

Bronze trophy in mill fabric exporter category

Textile Export Promotion Council 2002-03

Gold Trophy in EOU/EPZ for export of cotton yarn

Textile Export Promotion Council 1998-99

Silver Trophy
Textile Export Promotion Council 1997-98
Bronze Trophy

Textile Export Promotion Council 1996-97

Silver Trophy

Govt. of India Award 1994-5, 1995-96

Award of Merit
Textile Export Promotion Council 1993-94
(Merchant Export Category for Fabrics)
Bronze Trophy

Textile Export Promotion Council 1993-94

(Merchant Export Category for Fabrics)
Gold Trophy

Textile Export Promotion Council 1990-00

Gold Trophy

"VISION: To be globally recognized as a Leading Supplier of Quality Fabrics"

Main two units:-

SPINNING 1
This unit is for the manufacturing and packing of the yarn export
products. Products are exported to the countries such as Japan, south
Korea, U.S etc.

SPINNING 2

This Unit is for the manufacturing and packing of local yarn products.

POLICIES and Systems

There are 3000 workers, 250 staff members, 100 officers and managers
according to the size of departments.

POLICY which was used in VARDHMAN MILLS is TPM POLICY

ERP SYSTEM is used for the Salary distribution of the employees.

PUNCH CARD SYSTEM is used for the attendance of the employees.

 INTRODUCTION TO RECRUITMENT AND
SELECTION

RECRUITMENT PROCESS

Recruitment is the core activity of any personnel department. The personnel department
has traditionally been regarded as the “hire and fire” department and is still viewed as
such by some line managers. It is, of course, a mistaken viewpoint. The personnel
department neither hires nor fires anyone-this is the function of line management.
Recruitment is the process concerned with the identification of sources from
where the personnel can be employed and motivates them to offer themselves for
employment. So, recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organization. It is often termed
position in that it stimulates people to apply for jobs to increase the hiring ratio e.g. the
number of applicant for a job.
Recruitment is a process to discover the sources of manpower to meet the requirement
of the staffing schedule and to employ effective measures for attracting that manpower
in adequate numbers to facilitate effective selection of an efficient working force.

Recruitment needs are of three types:

• Planned
• Anticipated
• Unexpected

Planned needs arise from changes in organization and recruitment policy. Anticipated
needs refer to those movements in personnel which an organization can predict by
studying trends in the internal and external environment. Unexpected needs arise from
resignations, deaths, accidents and illness.

“Recruitment is the process of finding and attracting capable applicants for

employment. The process begins when new recruits are sought and ends when their
applicants are submitted. The result is a pool of applicant from which new employees
are selected.”
- Werther and Davis

STEPS IN RECRUITMENT PROCESS

The recruitment process consists of the following steps:-

1. Recruitment process begins when the personnel department receives requisition

for recruitment from any department of the company.

2. Locating and developing the sources of required number and type of employee.

3. Identifying the prospective employees with required characteristics.

4. Communicating the information about the organization, the job and the terms and
conditions of service.

5. Encouraging the identified candidates to apply for jobs in the organization

6. Evaluating the effectiveness of recruitment process.

Basically, recruitment process consists of five elements namely a recruitment policy, a

recruitment organization, developing sources or recruitment organization, developing
sources of recruitment, techniques used to tap these sources and methods of assessing
recruitment programmes.

Recruitment policy involves the employer’s commitment to such general principle as:

 To find and employ the best qualified persons for each job.

 To retain the most promising of those hired.

 To offer promising opportunities for life time working careers.

 To provide facilities for personal growth on the job.

There are several pre- requisites of a good recruitment policy. It should:

 Provide employees with job security and continuous employment.

 Integrate organizational meet the changing needs of the organization.

 Provide each employ with freedom and opportunity to utilize and needs and
employ needs.

 Provide suitable jobs and protection to handicapped, women and minority groups.

 Be flexible enough to develop knowledge and skills to the maximum possible

extent.

SOURCES OF RECRUITMENT

Recruitment has various sources that may be classified into categories but there are
mainly two main sources of recruitment:
  Internal Sources
 External Sources

Major Sources of Recruitment Are: -

Internal Sources External Sources

1. Transfers 1. Press Add.

2. Promotions 2. Educational Institutes

3. Placement Agencies

4. Employment Exchange

5. Labour Contractors

6. Unsolicited Applicants

7. Recommendations

SELECTION
Selection is the process as to select the right person at the right job at right time.
Selection is the process of choosing the most suitable persons out of all the applications.
And selection is the process of matching the qualifications of applicants with the job
requirements. It is the process of wedding out unsuitable candidates and finally
identifies the most suitable candidate. Selection may be described as processes of
rejection because generally more candidates are turned away then are hired. Selection
divides all the applicants in to two categories – (a) suitable (b) unsuitable

Selection is an important function as no organization can achieve its goals without

selecting the right people. The purpose of selection is to pick up the right person for
every job. Proper selection helps to reduce absents and labour turnover and it is helpful
in increasing the efficiency and productivity of the enterprise.
SELECTION PROCESS

The selection process can be successful if the following conditions are

Satisfied:-
1. Preliminary interview
2. Application Blank
3. Selection Test
4. Employment Interview
5. Medical Examination
6. Reference check
7. Final approval

To study “Recruitment & Selection process” I had undergone exploratory research.

For carrying out exploratory research two approaches were adopted, these are as follow:
-

Literature Survey
Experience Survey

Literature survey
The quickest & the most economical way of doing research is to review the work of
follow researchers in the field who had been there before. After sources of information
such as:

 Books
  Journals
 Company records.

Experience Survey

I had attempted to tap the experience & expertise knowledgeable persons concerned
with the area of research such as Assistant executive (PERS & ADMI.), Manager (I.R),
company’s employees through a series of unstructured interview, these persons were
requested to give their views & opinions on the various aspects of the study. Also
employee who was recently recruited was studied to know the effectiveness of the
recruitment and selection process through direct oral investigation.

CONCLUSION

Success of every business depends upon the hiring of best potential, competent person
and to retain them with the organization for its continual growth and development. So I
come to this conclusion that the recruitment method of every organization plays very
important role in achieving its existing and future plans. Recruitment includes
identification of sources and search for skilled and competent persons, retains them,
orients them, trained them and motivated them. So that it can get maximum out of its
service and skills.

In the case Vardhaman mills they use various sources for the recruitment of the
staff and officers that i already define in the report. For this they use various external
and internal sources for the new requirement and any other place. They use various
steps for the selection of the candidate’s e.g. preliminary interview, medical
examination, group discussion etc. In this the H.O.D. of various departments are related
with this method.
Thanks