A SUMMER TRAINING PROJECT REPORT

ON

A Comparative Study on the Level of Customer Satisfaction at National Textile Corporation vis-a-vis
its competitors with special reference to FabIndia with regard to Textile Products
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2012-14

UNDER THE GUIDANCE OF:

Mrs. Kanica Bathla
FACULTY, RDIAS
SUBMITTED BY:
DRONA ARORA
ROLL NO.09680303914 BATCH NO. 2014-16

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2008 Certified Institute
NAAC Accredited Grade A
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085.

TABLE OF CONTENTS
Student declaration...i
Certificate from Guide.ii
Acknowledgement...iii
Executive Summary.iv
CHAPTER- 1: INTRODUCTION
1.1 About the Industry...1-10
1.2 About Organization/ Company Profile....10-20
CHAPTER 2: LITERATURE REVIEW
2.1 Literature Review.21-24
2.2 About the Topic24-41
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Purpose of the study...42
3.2 Research Objectives of the study...42
3.3 Research Methodology of the study...42
3.3.1 Research Design...43
3.3.2 Data Collection Techniques.43
3.3.3 Sample design..43
3.3.3.1 Population..44
3.3.3.2 Sample size44
3.3.3.3 Sampling method...44
3.3.4 Method of data collection44
3.3.4.1 Instrument for data collection.45

3.3.5 Limitations45

CHAPTER 4: ANALYSIS & INTERPRETATION

4.1 Analysis and Interpretation46-57
CHAPTER- 5: FINDINGS & SUGGESTIONS
5.1 Findings..58
5.2 Suggestions58-59
CHAPTER- 6: CONCLUSION
6.1 Conclusion..60
ANNEXURES..62-63

STUDENT DECLARATION

This to certify that I have completed the project titled A Comparative Study on the Level of Customer
Satisfaction at national Textile Corporation and FabIndia with special reference to Textile Products
under the guidance of Mrs. Kanica Bathla in the partial fulfillment of the requirement for the
award of the degree of Master in Business Administration from Rukmini Devi Institute of
Advanced Studies, New Delhi. This is an original work and I have not submitted it earlier elsewhere.

Name : DRONA ARORA

Enrollment No : 09630303914

CERTIFICATE (From Guide)

This is to certify that the project titled A Comparative Study on the Level of Customer Satisfaction
National Textile Corporation andFabIndia with special reference to Textile Products is an academic
work done by Mr Drona Arora submitted in the partial fulfillment of the requirement for the award
of the degree of Masters in Business Administration from Rukmini Devi Institute of Advanced
Studies, New Delhi. under my guidance and direction. To the best of my knowledge and belief the
data and information presented by him in the project has not been submitted earlier elsewhere.

Mrs. Kanica Bathla

(Project Guide)
RDIAS

ii

ACKNOWLEDGEMENT
It gives me great pleasure to express my boundless sense of gratitude to each and every person who
directly or indirectly helped me with hand and hand in completing this humble piece of work.
I offer my sober and earnest regards to Mr. Vinu Nair and Mr. Priyadarshi Yadav my industry guide for
their scholarly guidance and kind cooperation. Their keen interest and encouraging words at every step
where a source of inspiration that enable me to broaden my sphere of domain knowledge. I also
acknowledge a special thanks to all the employees and staff members of different in Hyatt Regency
Delhi for their help and support extended during the course of program.
I am extremely thankful to Mrs. Kanica Bathla my Faculty guide whose timely guidance and
illuminating suggestion inspire me in shaping the project in its existing form.

DRONA ARORA
Enrollment no.: 09680303914

iii
EXECUTIVE SUMMARY
A study was conducted on Customer Satisfaction Level of National Textile Corporation New
Delhi. It is a Central Public Sector Enterprise under the Ministry of Textiles which was
incorporated in April 1968 for managing the affairs of sick textile undertakings, in the private
sector, taken over by the Government. Starting with 16 mills in 1968, this number gradually
rose to 103 by 1972-73. In the year 1974 all these units were nationalized under the Sick
Textile Undertakings (Nationalization) Act 1974. The issues with the NTC was shortage of
skilled and efficient manpower at the retail outlets, outlets are over loaded with outdated
products with less variety. Basically the largest segment of the population is youth which is
over looked and somehow neglected due to which varieties and products are not sufficient to
compete with the current market requirements. Timings of the store is also an issue and which
is not appropriate, weak supply chain of NTC also effects the overall sales. It is also found that
retailers are not motivated towards their work as NTC is a Government organisation. There is
also lack of technology dependence as lots of manual work is performed which consumes more
than required time.
The study was also conducted on Customer Satisfaction Level of FabIndia Limited, New
Delhi. Fabindia is India's largest private platform for products that are made from traditional
techniques, skills and hand-based processes. Fabindia links over 55,000 craft based rural producers to
modern urban markets, thereby creating a base for skilled, sustainable rural employment, and
preserving India's traditional handicrafts in the process. Fabindia's products are natural, craft based,
contemporary, and affordable.

iv

CHAPTER-1
ABOUT THE INDUSTRY AND
ABOUT THE ORGANIZATION

ABOUT THE TEXTILE INDUSTRY

INTRODUCTION
The Indian textile industry has a significant presence in the economy as well as in the international
textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the
industrial production, employment generation and foreign exchange earnings. It contributes 20 percent
of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial
sector, nearly 20 percent to the countrys total export earning and 4 percent to the gross domestic
product
In human history, past and present can never ignore the importance of textile in a civilization
decisively affecting its destinies, effectively changing its social scenario. A brief but thoroughly
researched feature on Indian textile culture.

HISTORY OF TEXTILE INDUSTRY

India has been well known for her textile goods since very ancient times. The traditional textile
industry of India was virtually decayed during the colonial regime. However, the modern textile
industry took birth in India in the early nineteenth century when the first textile mill in the country was
established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real
beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a
Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the
early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and
Chinese and African markets.
The first cotton mill in Ahmedabad, which was eventually to emerge as a rival centre to Bombay, was
established in 1861. The spread of the textile industry to Ahmedabad was largely due to the Gujarati
trading class.
The cotton textile industry made rapid progress in the second half of the nineteenth century and by the
end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile
industry was in bad state due to the great famine and a number of mills of Bombay and Ahmedabad
were to be closed down for long periods.
The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile
industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period
a number of the Bombay mills changed hands. The second World War, during which textile import
from Japan completely stopped, however, brought about an unprecedented growth of this industry. The
number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms
in 1921 and further to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills
employing 5.10 lakh workers.
The cotton textile industry is rightly described as a Swadeshi industry because it was developed with
indigenous entrepreneurship and capital and in the pre-independence era the Swadeshi movement
stimulated demand for Indian textile in the country.
The partition of the country at the time of independence affected the cotton textile industry also. The
Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of
the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a

number of years since independence, Indian mills had to import cotton from Pakistan and other
countries.
After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and
1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well
over 26 million by 1989-90.
CURRENT POSSITION OF TEXTILE INDUSTRY IN INDIA
The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach US $
141 billion by 2021. The industry is the second largest employer after agriculture, providing direct
employment to over 45 million and 60 million people indirectly. The Indian Textile Industry
contributes approximately 5 per cent to GDP, and 14 per cent to overall Index of Industrial Production
(IIP).
The Indian textile industry has the potential to grow five-fold over the next ten years to touch US$ 500
billion mark on the back of growing demand for polyester fabric, according to a study by Wazir
Advisors and PCI Xylenes and Polyester. The US$ 500 billion market figure consists of domestic sales
of US$ 315 billion and exports of US$ 185 billion. The current industry size comprises domestic
market of US$ 68 billion and exports of US$ 40 billion, according to Mr Prashat Agarwal, Managing
Director, Wazir Advisors.
Apparel exports from India have registered a growth of 17.6 per cent in the period AprilSeptember
2014 over the same period in the previous financial year.
Investments
The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted foreign direct investment (FDI) worth US$ 1,522.51 million
during April 2000 to December 2014.
Some of the major investments in the Indian textiles industry are as follows:

Reliance Industries Ltd (RIL) plans to enter into a joint venture (JV) with China-based
Shandong Ruyi Science and Technology Group Co. The JV will leverage RIL's existing textile
business and distribution network in India and Ruyi's state-of-the-art technology and its global
reach.
Giving Indian sarees a green touch, Dupont has joined hands with RIL and Vipul Sarees for
use of its renewable fibre product Sorona to make an environment-friendly version of this ethnic
ladieswear.
Raymond has launched Regio Italia, a luxurious, elite and finest Italian fabric for its
customers. Regio Italia is a fine collection of fabrics from Italy with the latest designs that is
carefully woven and specially handpicked assortment of the best designs in formal and occasion
menswear suiting fabrics.
Snapdeal has partnered with India Post to jointly work on bringing thousands of weavers and
artisans from Varanasi through its website. This is an endeavour by Snapdeal and India Post to
empower local artisans, small and medium entrepreneurs to sustain their livelihood by providing a

platform to popularise their indigenous products, said Mr Kunal Bahl, CEO and Co-Founder,
Snapdeal.
Welspun India Ltd (WIL), part of the Welspun Group has unveiled its new spinning facility at
Anjar, Gujarat - the largest under one roof in India. The expansion project reflects the ethos of the
Government of Gujarats recent Farm-Factory-Fabric-Fashion-Foreign Textile Policy, which is
aimed at strengthening the entire textile value-chain.

Government Initiatives
The Indian government has come up with a number of export promotion policies for the textiles sector.
It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.
Some of initiatives taken by the government to further promote the industry are as under:

Duty free entitlement to garment exporters for import of trimmings, embellishments and other
specified items increased from 3 per cent to 5 per cent. This initiative is expected to generate an
additional RMG exports estimated at Rs 10,000 crore (US$ 1.61 billion).
The government has also proposed to extend 24/7 customs clearance facility at 13 airports and
14 sea ports resulting in faster clearance of import and export cargo.
The proposal for imposing duty on branded items was dropped providing relief to the entire
value chain.
The Ministry of Textiles has approved a 'Scheme for promoting usage of geotechnical textiles
in North East Region (NER)' in order to capitalise on the benefits of geotechnical textiles. The
scheme has been approved with a financial outlay of Rs 427 crore (US$ 69.12 million) for five
years from 2014-15.
The Ministry of Textiles, Government of India plans to enter into an agreement with Flipkart to
provide an online platform to handloom weavers to sell their products.
The foundation stone of the Trade Facilitation Centre and Craft Museum was laid by Mr
Narendra Modi, Prime Minister of India at Varanasi.
Detailed arrangement for purchase of cotton from the farmers by the Cotton Corporation of
India Ltd (CCI) under the Minimum Support Price Operation was monitored. 343 purchase centers
were finalised in consultation with the State Governments after meetings with officers of CCI and
the cotton producing states, resulting in streamlining of operations.

Road Ahead
The future for the Indian textile industry looks promising, buoyed by both strong domestic
consumption as well as export demand. With consumerism and disposable income on the rise, the
retail sector has experienced a rapid growth in the past decade with the entry of several international
players like Marks & Spencer, Guess and Next into the Indian market. The organised apparel segment
is expected to grow at a compound annual growth rate (CAGR) of more than 13 per cent over a 10year period.
Exchange Rate Used: INR 1 = US$ 0.016 as on February 26, 2015

ABOUT THE ORGANIZATION

NATIONAL TEXTILE CORPORATION

Vision: To be a World Class Eco-Friendly Integrated Textile Company, catering primarily to

the

clothing

needs

of

the

Nation.

Mission: To be a Leading Textile Enterprise steadily improving capacity utilization, Economy

of Operations, Productivity, Quality, Brand Images, Market Share and Export
Logo:

Contact Details &Address:

Scope Complex,
Core-IV, 7- Lodi Road,
New Delhi - 110003.
Phone : 011-24360101
FAX No : 011-24361112

2.2.1

Company History:

The National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise
under the Ministry of Textiles which was incorporated in April 1968 for managing the
affairs of sick textile undertakings, in the private sector, taken over by the Government.
Starting with 16 mills in 1968, this number gradually rose to 103 by 1972-73. In the year
1974 all these units were nationalized under the Sick Textile Undertakings
(Nationalization) Act 1974. The number of units increased to 119 by 1995 and 1 new mill
purchased set up on land purchased by NTC in SEZ area in Hassan (Karnataka).

BIFR approved 8 revival schemes for 8 erstwhile subsidiary companies of NTC and 1
revival scheme for 9th subsidiary company (not referred to BIFR then) was approved by
GOI. Later, BIFR approved 2 Modified Revival Schemes 1st MRS-06 in the year 2006 and

2nd MS 08 in the year 2008.

Looking to the reduced number of mills and in line with the contemporary industrys trend
all 9 subsidiary companies have been merged with NTC-HC making it into a single

Company w.e.f. 01.04.2006.

NTC has so far closed 79 mills and has transferred 2 mills in the State of Pondicherry to the
State Government of Pondicherry and surrendered of 3 mills to Government of

Maharashtra under IDS.

NTC has modernized 18 mills so far and has setup 3 Composite Textile Units of which one

is an SEZ area.
NTC is to modernize/set up 23 (21+2) mills by itself through generation of funds from the

sale of its surplus assets.

NTC also has 5 joint venture companies with private sector partners having 51% stake in

each operating in textile business and real estate development of surplus land.
The export was 15 crores during year 2014-15 and approximate 22 crores of export has
been done during January to June 2015.NTC exports 70% of its products to Pakistan and
China. Technical Textiles is an area where there is tremendous scope for the company to
improve its turnover and profitability; hence initially Marketing Agreements have been
signed to penetrate this segment.

The erstwhile subsidiary companies of NTC became sick in the year 1992 due to erosion of
Net worth. The net worth of NTC stood at Rs. 1602 crore as on 31.03.2014 and hence
BIFR has discharged NTC on 28th October, 2014.
NTC has started taking initiatives to set up technical textile projects in Joint Venture with
the world leaders and is working towards it.

NTC at a Glance:1968
1974
1985
1992
1995
2002
2005
2005
2006
2007
2008
2008
2011
2012

2014

Starts with 16 mills under its ambit

NTC incorporated under the aegis of the Ministry of Textiles for managing sick
private sector undertakings taken over by GOI
All mills nationalized under Sick Textile Undertakings (Nationalization)Act
Number of sick mills added with another 103 under preview of 9 subsidiaries
119 mills operated by NTC through 9 subsidiaries corporations
8 Subsidiaries referred to BIFR
9th Subsidiary referred to BIFR
BIFR approved 1st Modified Revival Scheme MRS-06
All 9 subsidiaries merged with NTC(HC) into a single company
Joint venture for 5 Mills with private sector partners and modernization of 18 mills
and setting up of 3 green field mill taken up
BIFR approved 2nd Modified Revival Scheme MS-08
NTC closed 78 mills
Implementation period of BIFR Scheme extended up to 31-03-2012
NTC focused on:
Operational performance improvement
Brand value creation
Providing impetus to its Retail business
Venturing into Technical textiles
Realty Business
BIFR has discharged NTC on 28th October, 2014.

2.2.2Organizational structure

2.2.3 NTC SHOWROOMS:

There are 93 Showrooms including distribution centers controlled as under:

S.No.
1

NTC Sub Office, Delhi

No.
of
showroom
s
22

NTC Western Region, Mumbai

13

NTC Southern Region, Coimbatore

32

NTC Sub Office, Kolkata

19

NTC-Jaipur

07

Total

93

2.2.4 NTC MILLS IN OPERATION:

S.N
o

1.

Name of Mills

Location

State

NTC Western
Regional Office
Barshi Textile
Mill

Mumbai

Maharashtr
a
Maharashtra

Barshi

Area

Modernize
d

2.

Mumbai

Maharashtra

3.

India United
Mills No 5
Podar Mills

Mumbai

Maharashtra

4.

Tata Mills

Mumbai

Maharashtra

5.

Achalpur
Coimbatore

Maharashtra
Tamil Nadu

Coimbatore

Tamil Nadu

7.

Finlay Mill
NTC
Southern
Regional Office
Coimbatore
Murgan Mills
Cambodia Mills

Coimbatore

Tamil Nadu

8.

Pankaja Mills

Coimbatore

Tamil Nadu

9.

Sri Rangavilas
Gng.Spg.&Wvg
. Mill
Kaleeswarar
Mills B Unit
Pioneer
Spinners
Coimbatore
Spg. &Wvg.
Mills
Tirupathi Cotton
Mills

Coimbatore

Tamil Nadu

Kalayarkoli

Tamil Nadu

Kamudakudi

Tamil Nadu

Coimbatore

Tamil Nadu

Renigunta

Andhra
Pradesh

AlagappaTextile
Mills
CannanoreSpg.
&Wvg. Mills
Kerala Laxmi
Mills
Vijaymohini
Mills
CannanoreSpg.
&Wvg. Mills
New Minerva
Mills
NTC - Madhya
Pradesh
New Bhopal
Textile Mills

Alagappanagar

Kerala

Cannanore

Kerala

Trichur

Kerala

Thiruvanthapuram

Kerala

Mahe

Pondicherry

Hassan

Karnataka

Modernize
d
Modernize
d
To be
Modernize
d
To be
Modernize
d
Modernize
d
Modernize
d
Modernize
d
Modernize
d
Modernize
d
New Unit

Indore

Madhya
Pradesh
Madhya
Pradesh

Modernize
d

6.

10.
11.
12.

13.

14.
15
16.
17.
18.
19.

20.

Bhopal

Modernize
d
Modernize
d
Modernize
d
New Unit

Modernize
d
Modernize
d
Modernize
d
Modernize
d

21.

22.

23.

Burhanpur Tapti
Mills
NTC Gujarat
Raj Nagar
Textiles Mills
No.I
NTC WBAB&O
Arati Cotton
Mills

Burhanpur
Ahmedabad
Ahmedabad

Madhya
Pradesh
Gujarat
Gujarat

Kolkata

Kolkata

Dasnagar

West Bengal

Modernize
d
New Unit

Modernize
d

2.2.5 ACHIEVMENTS OF NTC IN THE FNANCIAL YEAR 2014-2015

NTC came out of the purview of BIFR vide its order dated 28 th October, 2014 due to positive
net worth.

Textile Undertaking (Nationalization) Laws (Amendment and Validation) Act, 2014, has been
passed by the Parliament on 17th December, 2014, thereby protecting the lease hold properties
of 960.85 acres valuing Rs. 5825 crores vested with NTC.

MOU signed between Govt. of India, NTC and Govt. of Maharashtra on 5 th April, 2015 for
construction of befitting memorial in the memory of Bharat Ratna Dr. B.R. Ambedkar on the
land of Indu No. 6, Mumbai.

Started 10 ISDS training centers to train 2500 people per year.

Under Swachch Bharat Mission, 31 Toilets in 15 Govt. Schools shall be completed by 30 th

April, 2015.

Full time Chairman & Managing Director appointed after a gap of about 2 years.

Steps have been taken by NTC to formulate the modernisation, expansion and diversification
plans, with the help of Northern India Textile Research Association (NITRA).

Approved by Ministry of Defence as the Central Co-ordinating Body for product development
& enhanced indigenisation.

Converted 12 mills into cash profit in March, 2015 as against 5 in September, 2014.

Achieved highest ever turnover of Rs. 1250 crores in 2014-15, an increase of 13.2% over
2013-14.

2.2.6

JOINT VENTURES OF NTC:

NTC finalized Joint Venture for following 5 mills in the 1st phase as per EGOM directions by
following the bidding process with 3 renowned textile players namely M/s. Bhaskar Industries,
M/s. Alok Industries & M/s. Pantaloon Retail (India)Limited with the assistance of JV Advisor
M/s Deloitte Touche Tohmatsu India Pvt. Ltd.

1. India United Mills No.1

2. Apollo Textile Mills;
3. Gold Mohur Mills;
4.New City of Bombay Mfg. Mills and;
5. Aurangabad Textile Mills.

All the above mentioned JVCs are earning Net Profit consistently since last 4 and 1/2 years.

MOU signed for JV in respect of another 11 mills has been cancelled, which has been
challenged in Delhi High Court. Hearing completed, Judgment reserved. Further matter
referred for Arbitration.

2.2.7 TECHNICAL TEXTILES

As a part of its growth strategy and in tandem with the changing sector scenario, NTC has identified
Technical textiles as its new growth frontier. After due diligence and following a transparent process,
to start with we have formed marketing agreements with SKAPS for Geotextiles, Teijin for Protective
Textiles and Veritaz for Turfs and Performance wear. A detail timelines is as under:

February 2012

Release of Global tender notice seeking Expression of Interest (EoI)

from technical textile companies for JV with NTC

Apr 2012

Receipt of 18 Expression of Interests from various Indian and

international companies

Apr 2012

Preliminary evaluation of received EoIs

May 2012

First response sent over email

May to Jun 2012

Introductory meetings and/or conference calls with international

players

Jun 2012

Comparative evaluation of companies on critical parameters

Jun to Aug 2012

Plant visit and taking additional information from the parties for
credential check of the companies

Jul to Oct 2012

Subsequent discussions to firm up the partnership proposition.

August and
October 2012

Presentation of attractive business opportunities to NTCs board.

Nov to Dec 2012

Evaluation, negotiation and firming up of MoU for further drafting of

agreements with lawyers

Nov to Dec 2012

Redrafting the business partnership with parties in line with Boards

recommendations

Jan to Jul 2013

Finalizing MoUs and Agreements with the parties

Thereafter when a perceptible grasp of market is achieved, we would go ahead with a backward
integration into manufacturing.
A brief profile of the partners is as under:
Skaps : Skaps is a US based company established in 1996 It has the largest Geonet/ Geocomposite/
Geotextile Manufacturing Capacity in American Subcontinent. SKAPS is market leader in these

segments with an annual turnover of approximately of Approximately 192 million US Dollars. The
major products are Erosion Control Products, Geogrids, Geocomposites, Geofoam,
Geotextile Tubes and Soil Fibers, Geomembranes etc.
Teijin : Teijin was formed in 1918 as the first manufacturer of rayon yarn in Japan, and then later they
converted to a synthetic fibers manufacturer. Through cutting-edge R&D and chemical technologies
developed in step with the progress of the times, Teijin has subsequently continued endeavors to further
expand their business, advance into new fields and become a more global company. The major products
are Raw white staple fiber, Dope dyed staple fiber,Staple fiber, Spun yarn, and fabric, Protective
Apparel viz. fire service, Military, Police, Industrial work wear.
Veritaz Trading Exim Pvt. Ltd.(Sympatex and Tiger Turf) : Sympatex Technologies has been one
of the leading global suppliers of high tech functional materials in clothing, footwear, accessories,
protective workwear (Contract & Workwear) and technical applications (Tection). Sympatex develops,
manufactures and sells membranes, laminates, functional textiles, finished products and bespoke end
products for a range of applications with selected partners all over the world. The major products
include extreme and cold climate clothing and gear, assault jackets, rucksacs etc.
Altiuss Tiger Turf has a range of synthetic playing surfaces/artificial grass with manufacturing
facilities in U.S.A., U.K. & N.Z. and ancillary manufacturing facilities and offices in Australia, Brazil,
Germany, Korea & Netherlands. TigerTurf has a range of product which is sport specific.Tiger Turf
has an international perspective when it comes to help the top athletes learn, compete and win.

FABINDIA LIMITED

COMPANY PROFILE

About the company

Fabindia is India's largest private platform for products that are made from traditional techniques,
skills and hand-based processes.
Fabindia links over 55,000 craft based rural producers to modern urban markets, thereby creating a
base for skilled, sustainable rural employment, and preserving India's traditional handicrafts in the
process.
Fabindia's products are natural, craft based, contemporary, and affordable.
The Vision
At Fabindia we celebrate India, and endeavour to bring all that we love about India to customers
around the world.
The Mission
We will harness the transformative power of a well-run business committed to profitable growth in
support of Fabindias Vision.
We will strengthen and support our community of customers, designers, artisans, farmers, makers and
entrepreneurs inspired by India.

We will give our customers products that delight them by interpreting our rich heritage and traditional
knowledge, while protecting the natural environment.
Values & Guiding Principles
To remain true to our companys history and our founders original Vision: "In addition to making
profits, our aims are constant development of new products, a fair, equitable and helpful relationship
with our producers, and the maintenance of quality on which our reputation rests."
John Bissell
To ensure that we delight our customers with our products and service, and always make them feel that
they are getting great value for their money.
To design, make and sell products with intrinsic worth that comes from the original designs,
knowledge, care and skill with which these are made.
To be true to our commitment and history as an ethical and trust-worthy brand promoting a stakeholder based community model of inclusive capitalism.
To constantly share our Vision with our employees, suppliers, business associates and customers, so
that we collectively ensure that all our actions are in service of our Vision, Mission and Guiding
Principles.
FabIndia Logo :

The Fabindia Head Office is located in New Delhi at:

Fabindia Overseas Pvt. Ltd.
Head

Office:

C-40,

Okhla

Industrial

Area,

Phase

-2,

New

Delhi

110020,

India

Tel: +91-11-40577720, Fax: +91 11 2681 1053, Email: mailus@fabindia.net

Registered

Address:

N-14

Greater

Kailash

Tel: +91 11 4669 3725, Email: mailus@fabindia.net

I,

New

Delhi

110048,

India

CHAPTER-2
LITERATURE REVIEW AND
ABOUT THE TOPIC

LITERATURE REVIEW

Shital Vakhariya and Vilas Chopde have made a study on the consumer preference of private
labels over national labels in apparel segment of the departmental stores. They tried to
investigate consumer brand preference for national versus store brands in Apparel Segment and
to study the influence of quality, price, variety, availability and current trend on brand
preference for national versus store brands. The study found that the customers felt that quality
of national brands is better than the store brands while store brands are priced lower than the
national brands. They have special preference for a particular store destination for variety of
product available, quality, convenient location and discounts & offers. It is also found that the

customers are buying apparels anytime without any specific reason

Chen (2006) carried out a study on Modeling and computer-aided design of 3D hollow woven
reinforcement for composites.

Three dimensional hollow woven structures, used as

reinforcement for composites requiring special properties such as lightweight and energy
absorption, are one fabric type that the conventional weaving technology is capable of
manufacturing. However, the fact that the design of these structures is complex and this
complication has limited the possibility of such structures being creating composites with
novel properties.

The paper explains the modeling of 3D hollow woven structures and

describes the methodology for the design and manufacture of such structures. The paper also
dealt with the visualization of the 3D hollow structures using non-uniform rational B-spline
curves and surfaces, aiming to provide assistance to the design and manufacturing processes.

ABOUT THE TOPIC

What Is Customer Satisfaction?
Customer satisfaction measures how well the expectations of a customer concerning a product or
service provided by your company have been met.
Customer satisfaction is an abstract concept and involves such factors as the quality of the product, the
quality of the service provided, the atmosphere of the location where the product or service is
purchased, and the price of the product or service. Businesses often use customer satisfaction
surveys to gauge customer satisfaction. These surveys are used to gather information about customer
satisfaction. Typical areas addressed in the surveys include:

Quality of product

Value of product relative to price - a function of quality and price

Time issues, such as product availability, availability of sales assistance, time waiting at
checkout, and delivery time

Atmosphere of store, such as cleanliness, organization, and enjoyable shopping environment

Service personnel issues, such as politeness, attentiveness, and helpfulness

Convenience, such as location, parking, and hours of operation

Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported experience with
a firm, its products, or its services (ratings) exceeds specified satisfaction goals."[1] In a survey of
nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses.[1]

It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In
a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a
key differentiator and increasingly has become a key element of business strategy.[2]
"Within organizations, customer satisfaction ratings can have powerful effects. They focus employees
on the importance of fulfilling customers' expectations. Furthermore, when these ratings dip, they
warn of problems that can affect sales and profitability.... These metrics quantify an important
dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both
free and highly effective."[1]
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this,
firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or service has met or
exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have
high expectations and the reality falls short, they will be disappointed and will likely rate their
experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget moteleven though its facilities and service would be deemed
superior in 'absolute' terms."
The importance of customer satisfaction diminishes when a firm has increased bargaining power. For
example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is
an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell
phone plan contracts have a lot of fine print with provisions that they would never get away if there
were, say, 100 cell phone plan providers, because customer satisfaction would be far too low, and
customers would easily have the option of leaving for a better contract offer.
There is a substantial body of empirical literature that establishes the benefits of customer satisfaction
for firms. This literature is summarized by Mittal and Frennea (2010). [3]They summarize the outcomes
in terms of customer behaviors, immediate financial outcomes such as sales and revenues, and longterm outcomes based on the stock market.
PURPOSE OF CUSTOMER SATISFACTION
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty." [1] "Customer satisfaction data are among the most frequently collected indicators of market
perceptions. Their principal use is twofold:" [1]
1. "Within organizations, the collection, analysis and dissemination of these data send a message
about the importance of tending to customers and ensuring that they have a positive experience
with the company's goods and services."[1]
2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firms customers will make
further purchases in the future. Much research has focused on the relationship between
customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are
most strongly realized at the extremes."

Research also shows that a majority of the firms invest in measuring, monitoring, and disseminating
customer satisfaction information; in fact, these authors found that customer satisfaction research is
one of the most widely conducted marketing research activities in the firms.[4]
On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return
customers and might even evangelize for the firm. (A second important metric related to satisfaction is
willingness to recommend. This metric is defined as "The percentage of surveyed customers who
indicate that they would recommend a brand to friends." When a customer is satisfied with a product,
he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing
advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.
Further, they can hurt the firm by making negative comments about it to prospective
customers. Willingness to recommend is a key metric relating to customer satisfaction."[1]

41.

CHAPTER-3
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

3.1 PURPOSE OF STUDY:

The purpose of a study is to find out the level of customer customer satisfaction at National textile
Corporation and Fabindia limited . This study will help us to know the level of satisfaction of
customers for bth the textile brands.

The answ ers from the customers will give the true picture of the organizations
marekt position . Analyzing the customers answers will help in understanding the main reasons for
buying ones products and what improvemnts should be done on order to retain the customers to the
organization.

1.2 RESEARCH OBJECTIVE OF THE STUDY:

Reasons for preferring NTC products and vice versa

Reasons for preferring FabIndia products and vice versa.

Comparitive study of products of National Textile Corporation and Fab India Limited

1.3 RESEARCH METHODOLOGY OF THE STUDY:

The research design of the study explains the systematic way of findings to the pre determined
objectives. Moreover this provides the clean path to accomplish and achieve clear objectives for the
problem stated. Following are the stages through which the research has passed to obtain the
conclusion.
1.
2.
3.
4.
5.

Define the research problem.

Review the literature
Design research
Collection of data
Analyze data
42.

6. Interpret data
7. Report the data
1.3.1

Research design:

A study is conducted to know the extent to which the customers are satisfied with the organization. To
know the the satisfaction level of customers, data is collected through structured questionnaire. The
questionnaire consists dichromatic, multiple choice and open ended question. The questionnaire is
designed for the customers of National textile corporation and FabIndia Limited.

1.3.2

Data collection techniques:

The Quantitative data collection methods rely on random sampling and structured data collection
instruments that fit diverse experiences into predetermined response categories. They produce results
that are easy to summarize, compare, and generalize. Example: interview, questionnaire etc.
Qualitative data collection methods play an important role in impact evaluation by providing
information useful to understand the processes behind observed results and assess changes in peoples
perceptions of their well-being.
Quantitative method is being used for collecting the data for this research study.

1.3.3

Sample design:

A sample design is made up of two elements.

Sampling method. Sampling method refers to the rules and procedures by which some
elements of the population are included in the sample. Some common sampling methods are
simple random sampling, stratified sampling, and cluster sampling.

Estimator. The estimation process for calculating sample statistics is called the estimator.
Different sampling methods may use different estimators.

43.

1.3.3.1 Sample size:

A sample size of 90 (50 for NTC and 40 for fabIndia) is drawn, where the respondents are the
customers of National Textile Corporation and FabIndia Limted from different areas of Delhi NCR.

1.3.3.2 Sampling method:

Simple random sampling techniques were used in order to get the data to facilitate the easy availability
of respondents.

1.3.4

Methods of data collection:

The data for the project is collected so that from two sources that is primary and secondary sources.

Primary Sources: A primary source is a source that you cite in your writing that is as close to possible
as the original information. A primary source is the most direct place you can find the information you
want to write about or Information collected firsthand from such sources as historical documents,
literary texts, artistic works, experiments, surveys, and interviews.

Secondary Sources: Secondary sources are research reports that use primary data to solve research

problems, written for scholarly and professional audiences. Researchers read them to keep up with
their field and use what they read to frame problems of their own by disputing other researchers'
conclusions or questioning their methods.
In my research project I have adopted primary research. I have collected my own data with the
employees of Hyatt Regency Delhi.
44.
1.3.4.1 Instrument for data collection:
1. Population census
2. Sample survey
3. Administrative collection and register

1.3.5

Limitations:

There was a time restriction of 8 weeks, so the study was conducted by selecting a sample
of 90 respondents and the facts and findings may not represent a true picture of the
customer satisfaction level as the study was conducted in the Delhi NCR region only.

45.

CHAPTER-4
ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

1. What is your age ?

NATIONAL TEXTILE CORPORATION

Less than 20
20-30
30-40
40& Above

FABINDIA LIMITED

 Less than 20
20-30
30-40
40& Above

Interpretation:
According to the charts it can be observed that at NTCs showroom the customers who visit the stores
are all above the age of 40.
Fabindia has its customers from all age groups. According to the study 18% of the customers were
below the age of 18, 36% of the customers from the age group of 20-30 and 63% from the age group
of 40 years and above.
Hence it can be said that NTC attracts customer above the age of 40 whereas FabIndia has its
customers from various age groups.

2. How did you come to know about the brand National Textile Corporation and
FabIndia Limited ?
NATIONAL TEXTILE CORPORATION

Advertisement
Referral
Employee
Any Other

FABINDIA LIMITED

Advertisement
Friends
Employee
Neighbour
Any Other

Interpretation:
According to the study, it is found that 11% of the people came to know about NTC through
advertisement, 33% each through employess and referrals, and 23% through other sources like
employess, etc.
FabIndia came into notice of the people through follwing means : 38% through advertisements, 53 %
through friends and the remaining 9% through other means.

3. For how long have you been you been using NTCs and Fabindias products ?
NATIONAL TEXTILE CORPORATION

Less than 6 months

1 to 3 years
3 to 5 years
More than 5 years

FABINDIA
Less than 6 months
1 to 3 years
3 to 5 years
More than 5 years

Interpretation:
According to the study , it is found that 40% of the NTCs Customers have been buying their products
for a period of 3-5 years and 60 % of the customers have been buying NTCs products for a period of
more than 5 years.
As far as FabIndia is concerned 23% of the customers have been buying for less than 6 months, 7% for
a period of 1-3 years , 7% for a period of 3-5 years and 61 % for a period of more than 5 years.

4. What according to you is NTCs and FabIndias unique selling proposition ?

NATIONAL TEXTILE CORPORATION
Price
Quality
Variety
Design

FABINDIA
Price
Quality
Variety
Design

Interpretation:
According to NTCs chart it can be studied that 38% of the people visit their store because of Textile
Quality, 38% because of price, 15% because of variety and 23% because of designs.
As per the chart of FabIndia it can be learnt that 12% visit the store because of price, 33% because of
quality, 27 % because of variety and 27% because of designs.

49.

5. Please rate NTC and FabIndia on the basis of the following attributes:
a) Quality of the products

NATIONAL TEXTILE CORPORATION

Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very dissatisfied

FABINDIA
Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very dissatisfied

Interpretation:
According to the response of the customers it can be inferred that 33% of NTCs customers are
strongly satisfied with quality, 55% are somewhat satisfied with the quality and 12% are neutral
towards the quality.
For FabIndia, 35% of the customers are strongly satisfied with the quality of products, 35 % are
somewhat satisfied , 21% are neutral towards the quality and 7% are somewhat dissatisfied with the
quality of the products.

50.

b) Price
NATIONAL TEXTILE CORPORATION

Very satisfied
Somewhat
satisfied
Neutral
Somewhat
dissatisfied
Very dissatisfied

FABINDIA
Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very dissatisfied

Interpretation:
According to the response of the customers NTC is strongly preferred in terms of price by 55%
customers, somewhat preferred by38% customers and 12% customers are neutral towards price of
NTC.
As far as FabIndia is concerned, 22% are strongly satisfied with the price, 50% are somewhat satisfied
with the price, 16% are neutral towards the price and 11% are not satisfied with the price.
.
51.

c) Customer Service
NATIONAL TEXTILE CORPORATION

Very satisfied
Somewhat
satisfied
Neutral
Somewhat
dissatisfied
Very dissatisfied

FABINDIA

Very satisfied

Somewhat satisfied

Neutral

Somewhat
dissatisfied

Very dissatisfied

Interpretation:
According to the study it is found that , in terms of NTC 11% of the customers are strongly satisfied
by customer service, 55% of the customers are somewhat satisfied with customer service and 44% are
neutral towards customer service.
For FabIndia, 53% are strongly satisfied with customer service, 38% are somewhat satisfied with
customer service and 9% are neutral towards customer service.

52.

d) Overall Satisfaction
NATIONAL TEXTILE CORPORATION
Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very dissatisfied

FABINDIA
Very satisfied

Somewhat satisfied

Somewhat
dissatisfied

Very dissatisfied

Neutral

Interpretation:
Around 22% of NTCs customers are completely satisfied with the company, 55% are somewhat
satisfied with NTC and 23% are neutral towards NTC.
FabIndias has 46% customers completely satisfied with it, 38% are somewhat satisfied with fabindia
and 15% are neutral.

53.

6. Which brand do you prefer for Shirtings and Suitings ?

NATIONAL TEXTILE CORPORATION
NTC
Raymonds
Vimal
Any Other

FABINDIA

FabIndia
Raymonds
Vimal
Any Other

Interpretation:
According to this chart if we compare other brands with NTC 77% people prefer raymonds and 33%
prefer NTC.
In comparison of other brands with FabIndia, it was found that 33% prefer FabIndia, 50% prefer
raymonds and 27% prefer other brands like allen solly.

54.

7. Which brand do you prefer for bed sheets ?

NATIONAL TEXTILE CORPORATION
NTC
Bombay Dyeing
Raymonds
Any Other

FABINDIA
FabIndia
Bombay Dyeing
Raymonds
Any Other

Interpretation:
The figures in this chart show that in comaprison with NTC, 70% of the people prefer NTC for
bedsheets and 30% prefer Bombay Dyieng.
In comparison with FabIndia, 50% of the people prefer Fabindia in Bedsheets, 31% prefer Bombay
Dyieng and 19% prefer other brands.

55.

8. Are stores of FabIndia and NTC easily available around your locality ??]
NATIONAL TEXTILE CORPORATION
Yes
No

FABINDIA

yes
no

Interpretation:
According to the response of the customers 33% feel thats NTC stores are easily avaliable near there
residence while 77% disagreed with it.
62 % of the fabIndias customers feel that stores are easily available near there residence while38%
disagreed with it.
56.

9. What do you like the most that attracts you to companies stores ?
NATIONAL TEXTILE CORPORATION

Quality of the
Product

Price of the Product

Hospitality of the
staf

Variety of the
Products

Easy availability of
stores

Ambience of the
store

Any Other

FABINDIA

Quality of the
Product

Price of the Product

Hospitality of the
staf

Variety of the
Products

Easy availability of
stores

Ambience of the
store

Any Other

Interpretation:
By observing this chart we get to know 66% of the people visit NTC stores because of qality of the
product,11% because of quality of the product, 11% because of easy availabilty of stores and 11%
because of ambience of the store.

10. Would you like to be associated with NTC and FabIndia for future purchases?
NATIONAL TEXTILE CORPORATION

Yes
No

FABINDIA

Yes
No

Interpretation:
As per the graphs, 88% of the people would like to be associated with NTC in future while 12%
would not like to be associated with NTC in future. But incase of fabIndia 100% respondents would
like to associated with FabIndia in future. This shows that Fabindia has greater cstomer loyalty tham
NTC as all the customers wish to be associated with FabIndia in future.

CHAPTER-5
FINDINGS AND SUGGESTIONS

 Findings:
The following are the findings that are being obtain from the analysis of the date received from the
customers which is collected by primary search.

It is found that Fabindia has a larger market share than National Textile Corporation in terms of
textile products.

It is found that despite of having good quality of fabric NTC is not having a good market share
because of shortage of supply.

Another observation is that even if the supply is there at the shops there is no variety of goods
available that can attract customers.

For attracting more customers and to have a good market share NTC should increase variety
and should make more stock available at the retail outlets

It was found that NTCs clothes are reasonably priced whereas FabIndias products are priced
slightly higher.

In the present day, though NTC has limited stock available but the colours of the clothes are
fast, but in FabIndia, the colours are not fast and clothes leave colour after the first wash.

 Suggestions:

On the basis of the findings that we have found after observing or analysing the data obtained by the
customers of NTC and FabIndia these are some suggestions:

NTC should increase the variety of the textile roducts so that the demand can be met.
NTC should also increase the stock of fabrics on the outlets so that large instituional
orders can easily be met .
The pricing of Raasa bed sheets should be done again as they being found
overpriced by the customers.
NTC should intoduce more variety in bedsheets and towels.
NTC should retain its prices as FabIndias prices are found to be high..
Ntc should maintain the colour quality of the products that dont fade easily unlike
FabIndia.

CHAPTER-6
CONCLUSION

CONCLUSION

As per the observations and analysis of the data recovered by the customers of FabIndia and NTC the
customers are satisfied with the quality of the textile products of both the brands, but they want more
variety to be introduced.
Customer satisfaction is a major tool in every organization. Without satisfied customers no
organization can survive in the market. An organization needs to satisfy all its customers in all
respects.
Customer satisfaction is important for an organization because of the following reasons:

It is a leading indicator of consumer repurchase intentions and loyalty

Its a point of differentiation

It reduces customer churn

It increases customer lifetime value

It reduces negative word of mouth

Its cheaper to retain customers than acquire new ones

Hence both the organizations need to overcome there shortfalls inorder to retain in the market and
have a huge market share.

ANNEXURES