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A SUMMER TRAINING AT DSM TEXTILE

KARUR

SUMMER TRAINING REPORT


Submitted by

N.VINOTHKUMAR
Register No: 713214631107

in partial fulfillment for the award of the degree


of

MASTER OF BUSINESS ADMINISTRATION


IN

RVS INSTITUTE OF MANAGEMENT STUDIES

COIMBATORE 641402
AUGUST- 2015

RVS INSTITUTE OF MANAGEMENT STUDIES


COIMBATORE -641 402
SUMMER TRAINING REPORT

AUGUST- 2015
This is to certify that the project entitled A Summer training at DSM TEXTILE,

KARUR
is the bonafide record of project work done by

N.VINOTHKUMAR
Register No: 713214631107

of Master of Business Administration during the year 2014-2016.

---------------------

----------------------------------

Project Guide

Head of the Department

DECLARATION
I affirm that the summer training at DSM TEXTILE being submitted in partial
fulfillment for the award of Master of Business Administration is the original work
carried out by me. It has not formed the part of any other project work submitted for
award of any degree or diploma, either in this or any other University.

N.VINOTHKU
MAR
713214631107
I certify that the declaration made above by the candidate is true.

Mrs. Mehta Vani Joghee, MBA, M. Phil,

ACKNOWLEDGEMENT
First and foremost

I would like to express my sincere gratitude to our

beloved Dr. P.V. Prabha MBA., M. Phil, Grad.CWA, PGDCA., Ph.D., Director,
RVS Institute of Management Studies, Kannampalayam, for providing us all the
facilities and encouraging me throughout the course of the project.
I express my sincere thanks to our Head of Department Dr. J. Nirubarani,
MBA.,

M. Phil., PhD., D.P.C.S., with her fully non-stop support with grateful

guidance.
I express my sincere thanks to my project guide, Mrs. Metha Vani Joghee
MBA, M . P h i l , Assistant

Professor, f o r

the

guidance

and

support

for

the

preparation and study of the organization.


I am highly obliged to extend my sincere thanks to the company for their
effective guidance and valuable support to carry out this project in their premises.
I express my heartfelt gratitude Mr. Arulmolidevan,

Finance Manager of

DSM Textile, Karur for giving me an opportunity for doing the project in their
esteemed

organization

and

for

encouraging

me

to

complete

the

project

successfully.
Above all, I thank Almighty God and My Parents for giving me the grace
and content support in successfully completing this project to the best of my ability.

N.VINOTHKUMAR

TABLE OF CONTENTS

CHAPTER NO.
1

TITLE

PAGE NO.

INTRODUCTION
1.1 ABOUT THE INDUSTRY

1.2 ABOUT THE COMPANY

12

1.3 OBJETIVES OF THE STUDY


2

DEPARTMENTS

15

2.1 PRODUCTION
2.2 HUMAN RESOURCE
2.3 FINANCE

23

2.4 MARKETING / SALES


2.5 QUALITY
3

3.1 FINDINGS
3.2 SUGGESTIONS

CONCLUSION
BIBLIOGRAPHY

CHAPTER I
1.1 ABOUT THE INDUSTRY

The Textile industry in India traditionally, after agriculture, is the only industry that
has generated huge employment for both skilled and unskilled labor in textiles. The textile
industry continues to be the second largest employment generating sector in India. It offers
direct employment to over 35 million in the country. The share of textiles in total exports was
11.04% during AprilJuly 2010, as per the Ministry of Textiles. During 2009-2010, Indian
textiles industry was pegged at US$55 billion, 64% of which services domestic demand. In
2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of
India.

Narration
Large quantity of north Indian silk was traded through the silk route in China to the DSM
western countries. The Indian silk was often exchanged with the western countries for their
spices in the barter system. During the late 17th and 18th century there were large export of
the Indian cotton to the western countries to meet the need of the European industries during
industrial revolution. The archaeological surveys and studies have found that the people of

Hardpan Civilization knew weaving and the spinning of cotton four thousand years ago.
Reference to weaving and spinning materials is found in the Vedic Literature also.
There was textile trade in India during the early centuries. A block printed and resist-dyed
fabrics, whose origin is from Gujarat is found in tombs of Foster, Egypt. This proves that
Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were to
a large extent. Consequently there was development of nationalist movement like the famous
Swedish movement which was headed by the Eurobond Ghost.
There was also export of Indian silk, Muslin cloth of Bengal, Bihar and Orissa to other
countries by the East Indian company. Bhilwara is known as textile city.
India is the second largest producer of fibre in the world and the major fibre produced is
cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of
the Indian textile Industry is cotton based.
The strong domestic demand and the revival of the Economic markets by 2009 has led to
huge growth of the Indian textile industry. In December 2010, the domestic cotton price was
up by 50% as compared to the December 2009 prices. The causes behind high cotton price are
due to the floods in Pakistan and China. India projected a high production of textile (325 lakh
bales for 2010 -11). There has been increase in India's share of global textile trading to seven
percent in five years. The rising prices are the major concern of the domestic producers of the
country.
Man Made Fibers: These include manufacturing of clothes using fiber or filament
synthetic yarns. It is produced in the large power loom factories. They account for the
largest sector of the textile production in India. This sector has a share of 62% of the
India's total production and provides employment to about 4.8 million people.
The Cotton Sector: It is the second most developed sector in the Indian Textile
industries. It provides employment to huge amount of people but its productions and
employment is seasonal depending upon the seasonal nature of the production.
7

The Handloom Sector: It is well developed and is mainly dependent on the SHGs for
their funds. Its market share is 13%. of the total cloth produced in India.
The Woolen Sector: India is the 7th largest producer. of the wool in the world. India
also produces 1.8% of the world's total wool.
The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern
states of India like Assam and west Bengal. India is the largest producer of jute in the
world.
The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world.
India produces 18% of the world's total silk. Mulberry, Era, Tsar, and Mega are the
main types of silk produced in the country. It is a labor-intensive sector.

Indian Textile Policy


Government of India passed the National Textile Policy in 2000

Textile Organization
The Indian Textile industries are mainly dominated by some government, semi government
and private institutions.
The major functions of the ministry of Textile are:

Bhilwara Textiles Industry

Textile Policy & Coordination

Man-made Fiber Industry

Cotton Textile Industry

Jute Industry

Silk and sericulture Industry

Wool Industry
8

Decentralized Power loom Sector

Export Promotion

Planning & Economic Analysis

Finance Matters

Information Technology(IT)

The advisory boards include:

All India Handlooms Board

All India Handicrafts Board

All India Power looms Board

Advisory Committee under Handlooms Reservation of Articles for Production

Co-ordination Council of Textiles Research Association

MM cotton industry

The major export promoting councils include:

Apparel Export Promotion Council, New Delhi

Carpet Export Promotion Council, New Delhi

Cotton Textiles Export Promotion Council, Mumbai

The major PSU or Public Sector Undertaking are:

National Textile Corporation Ltd. (NTC)

British India Corporation Ltd. (BIC)

Cotton Corporation of India Ltd. (CCI)

Jute Corporation of India Ltd. (JCI)

National Jute Manufacturers Corporation (NJMC)

Handicrafts and Handlooms Export Corporation (HHEC)

National Handloom Development Corporation (NHDC)

Export Promotion Council for Handicrafts, New Delhi


9

Handloom Export Promotion Council, Chennai

Indian Silk Export Promotion Council, Mumbai

Power loom Development & Export Promotion Council, Mumbai

Synthetic & Rayon Textiles Export Promotion Council, Mumbai

Wool & Woolen Export Promotion Council, New Delhi

Other autonomous bodies in this industry are:

Central Wool Development Board, Jodhpur

National Institute of Fashion Technology, New Delhi

National Centre for Jute Diversification

The textile Research Associations are:

South India Textiles Research Association (SITRA), Coimbatore

Ahmadabad Textiles Industrys Research Association

Bombay Textiles Research Association, Mumbai

Indian Jute Industries Research association, Kolkata

Man-made Textiles Research Association, Seurat

Synthetic and art silk Mills Research Association, Mumbai

Wool Research Association, Thane

Northern India Textiles Research Association, Ghaziabad

Organized sector

10

According to Kearneys Retail Apparel Index India ranked as the fourth most promising
market for apparel retailers in 2009.
There is large scope of improvement in the textile industry of India as there is a huge increase
in personal disposable income among the Indians after the 1991 liberalization. There is also a
large growth of the organized sector in the Indian textile industries. The foreign brands along
with the collaboration of the Indian companies established business in India. Some of these are
Puma, Armani, Benetton, Esprit, Levi Strauss, Hugo Boss, Liz Claiborne, Crocs etc.The major
Indian Industries include Bombay Dyeing, Cabinda, Grasim Industries, JCT Limited, Lakshmi
Machine Works, Lakshmi Mills and Mysore Silk Factory.

11

1.2 ABOUT THE COMPANY

DSM Textiles is located at Karur, Tamil Nadu in the Southern part of India. Established
in 2001, DSM TEXTILE is an Eminent Manufacturer, Exporter and Supplier of the Cotton
Home furnishing Textile Products that are a reflection of the dexterity of the artisans of India.
DSM TEXTILE incorporates the latest trends, Designs and Colors in DSM TEXTILE Home
Furnishing Textile Products that caters to the diverse taste and preferences of DSM TEXTILE
discerning clients.
DSM TEXTILE is backed by a Talented Team of Master Craftsmen with Rich Experience in
infusing life into the Home Furnishing textiles through their dexterous hands. DSM TEXTILE
dedicated Quality Control supervisors carefully monitor the entire production process to
ensure quality standards and client specifications are met.
Each of DSM TEXTILE creations speaks volume of the efforts and craftsmanship that goes
into making them. This is the reason DSM TEXTILE Home Furnishing Textile Products have
found immense appreciation and accolades in the international market.
DSM Textiles, the Name you can trust for Quality Textiles Products. VKS fabrics offer a wide
range of Textiles Products, Created & Designed to Satisfy Most of DSM TEXTILE products
are manufactured as per DSM TEXTILE buyer's design under their Orders and in their own
labels, but DSM TEXTILE also create designs as per DSM TEXTILE clients request with
DSM TEXTILE own designers.

12

DSM Textiles is recognized for its Innovation, Constant Research, Development and
Upgrades to the trends prevailing around World. DSM TEXTILE constantly evaluates DSM
TEXTILE Clients needs and observes the evaluation of Consumer Habits.
A Specialized Product Development team and dedicated Sales force are contributing their
level best to satisfy DSM TEXTILE respected clients
- V.K.Sabapathi, Founder.
Being, the family business as weaving and came from a weaving Family, DSM Textiles has a
very good knowledge about production, technical aspects and each & every corners of
manufacturing the quality textile products.
Based in Karur, India, DSM TEXTILE, DSM Textiles manufactures & supplies finest Textiles
to DSM TEXTILE Valuable Customers across the World. It has been 14 years, since, DSM
TEXTILE are satisfying DSM TEXTILE clients and building a strong relationship both in
business and in personal.
From 2006, it's the turn of Mr. Vadivel KanagaSabapathi, the son of Mr. V. K. Sabapathi taken
the position and continuing the service to their respected clients .After completing his
International Business studies in the United Kingdom, he himself involves in this wonderful
business with great interest & spirit and always loves very much to serve his respected clients.
VISION
To transform the company into a modern and dynamic yarn, cloth and processed cloth hand
finished product manufacturing company with highly professionals and fully equipped to play
a meaningful role on sustain able basis in the economy of Tamilnadu. To transform the
company into a modern and dynamic power generating company with highly professionals
and fully equipped to play a meaningful role on sustainable basis in the economy of
Tamilnadu.

13

MISSION
To provide quality products to customers and explore new markets to promote/expand sales of
the company through good governance and foster a sound and dynamic team, so as to achieve
optimum prices of products of the company for sustainable and equitable growth and
prosperity of the company.

ORGANIZATIONAL STRUCTURE
Founder (V.K.Sabapathi, Founder)
CEO (Mr. VadivelKanagaSabapathi)

HR Manager

Technical
Department
(Mr.Rangaraj
an)
(20)

Marketing
Department
(Mr.Raja)
(155)

Finance
Department
(Mr.
Arulmolidev
an)
(15)

Administ
ration
Departm
ent
(Mr.Prab
akar)
(30)

Production
Departmen
t
(Mr.Mariy
appan)
(530)

1.3 OBJECTIVES OF STUDY:

Technology, techniques and system for organic production


Appropriate national certification agency with international recognition
14

Assessment of global market for appropriate market strategies


Technology and techniques applied on model farms and elsewhere
Internationally acceptable standards and an established certification office with trained

inspectors
Identification of and access to export markets
Minimize duplication of effort ,service and resources
Eliminate inefficient and costly redundancies
Eliminate non- compatible standards and architectures
Identify obstacles for department wanting to move computing operations.

CHAPTER II
DEPARTMENTS
2.1 PRODUCTION DEPARTMENT

15

The production Planning and Control department is the one that materializes the
production flow and monitors it.
The main objective of the production planning department is to execute mass production.

Production Planning and Control

Production Planning

Production Control
16

Dispatching

Planning

Routing

Following Up

Scheduling

Inspection

Loading

Planning

Sometimes the buyer selects the designs that he wants to get mass produced from the fabric
database

of

over

8000

design

collection

developed

by

the

research

and

Development department of DSM Textiles known as the DNTG department. The


specifications and procedures for such designs are already listed in the database and now the
work of the PRODUCTION PLANNING CONTROL is to efficiently carry out those
procedures other times the customer sends samples and requires the mass production for it. In
such cases, the DNTG department develops the procedures involved for production of
that sample by reverse engineering.

The PPC department then allots the machinery and time required for fulfillment of each
procedure accordingly. The lead time is also decided by PPC on the base of order size,
machine availability, profits involved and the urgency as per the consumer.
In case of orders of lower quantities, the PPC has to strategies the execution of the order and
plan whether or not to accept it, since dyeing machines of slashed and rope dye have
limitations as to the minimum amount of dyeing, for best results and avoidance of wastage
17

The PPC department also plans separately for orders of export and domestic market as the
demand vary from region to region. DSM also has its own retail brands, like ruff and tuff jeans
etc, but they are treated as buyers and not subsidiaries. The bottle neck operation that
determines the lead time for the production is the DSM TEXTILE having procedure.
The loom capacity depends on the following factors:
Construction of fabric
Loom Speed
Efficiency
The production planning team needs to coherently work on deciding whether the capacity of
the plant is enough to fulfill the order in the given lead time.
Usually the lead time for any particular order is 50 to 55 days, including all quality checks
inspection etc.

The thumb rule for calculation of lead time:


Pre- spinning procedures: 3 days
Spinning: 15-20 days
Warping and dyeing- 3 days
For every DSM TEXT Leaving cycle- 3 to 4 days(DSM TEXT Leaving cycles depend

on the order stand above mentioned factors)


Usually for one order about 8 to 10 DSM TEXT Leaving cycles required
Finishing processes- 1 day for each process, if not covered in the integrated finish
processing machine
Inspection 2 to 3 days
Washing 2 to 3 days
COSTING
Spinning: Rs 1.10 /kg/count (avg: DSM TEXTILE Weight 650 gram/mtr)
DSM TEXT Leaving: 0.21 /pick

18

Dyeing: Rs 4/mtr
Finishing: Rs0.04 /mtr
Coating: Rs 4 /mtr
PoDSM Textile: Rs 2.25 /unit
Labor Wage: Rs 6000 to 8,500/month
Inspection: Rs 0.65 /mtr
RAW material:
Cotton100 kilo cotton = 88 kilo of yarn(for combed yarn) (75% yarn realization)
Loss: 1 % sizing, 2.3 to 2.5 % DSM TEXTILEaving, 1% warping (total 4 to 4.5%)

The production planning process for denims in DSM is done on excel. Though an attempt was
made previously to employ an ERP system, the project failed causing major loss of capital
because an ERP system does not work for such a huge company with such diversification in
the process.
Process control is not possible as each order has a different requirement and hence different set
of processes are to be executed. Moreover, the lead time and cost calculations, that are
supposed to be taken care of by the ERP system, cannot take into account of all the possible
factors at a plant as huge as DSM denims.
The production planning and control head, and team are the ones, to plan each and every step
of the production process, and it is their responsibility to deliver high quality products at the
promised time.
PRODUCTION PROCESS

SPINNING

19

BALL WARPING

BEAM WARPING

Rope Dyeing

Rebeaming
Slasher Dyeing
Sizing
Packaging
Drawing

Looming
Finishing
Inspection
Sections for production:
Administration department
Merchandising Section
Development Section (Laboratories)
Commercial & Compliance Section
Planning Section
Sample Section
Cutting, Sewing and Q.C Section
Finishing section
Mechanical & Electrical section
20

Production:

DSM TEXTILES is a fully vertical unit from Yarn Spinning to Apparel Manufacturing,
Printing, Washing and Packaging and they have different sections for all of these.

Name Of The Machine


Plain Machine :
Plain Machine (Auto) :
Over Lock ( 6 Thread ) :
Over Lock ( 5 Thread ) :
Over Lock ( 3 Thread ) :
Two Needle Machine :
Bar tacking Machine ( Computerized ) :
Feed Of The Arm :
Chain Machine :
Kansai Special :
Kansai Machine (Pkt Facing Attach) :
Kansai Machine (Loop Machine) :
Button Hole Machine :
Button Stitch Machine :
Snap Button Machine
Eyelet Machine :
Zigzag Machine
Stone Attached Machine
Loop Cutter Machine
Thread Sucking Machine
Ironing
Auto Stapling Machine :
Metal Detector :

Machine Qty
286
28
3
53
6
47
21
22
8
16
2
6
2
4
22
3
2
2
2
2
30
2
1
21

Gas Boiler :
2
Generator :
1
Cutting Machine :
8
Thread Re-coning Machine
1
Thread Sucking Machine :
2
Cutting Table
3
Numbering Machine :
1
Vacuums Table :
30
Compressor
4
Total :
G / TTL
614
Total Employee Summary: DSM TEXTILES in a huge part of organization with a large
number of employees. This is a combination of Blue collar and White collar employees with
different responsibilities. This total division contains several sections like Design studio,
Textile Head office, Lab units, Factories, Plants etc. so, overall there is 750 employees for
whole textile section where more than 1200 work as Management stuffs.
Over the years, DSM TEXTILES has developed in-house design capabilities with teams
based in Tamilnadu

22

2.2 HR DEPARTMENT

HR Department in DSM is involved in different types of human resDSM TEXTILE related


activities. Here are the activities of HR development in DSM as follows:
1. Recruitment
2. Training and Development
3. Compensation
4. Performance Appraisals
5. Employee DSM TEXTILE fare
6. Rewards and Punishments
7. Retirement and Termination Benefits
Employees are important to any organization in fact there are employees which give a
certain image to an organization so the role of HR becomes all the more important. The
functions performed by this department at DSM Textiles discussed below.
HIRING, ORIENTATION, TRAINING AND SEPARATION OF PERSONNEL
An important function of the department is to hire new workers and employees as and
when needed. It has set criteria for required skills for different jobs. After hiring people, it
23

briefs them about the organization and its policies. Codes of conduct their responsibilities and
facilities. It also arranges for the proper training of newcomers so that they are able to perform
effectively and efficiently as soon as possible. Another important function of the HR
department is to allocate work force for different departments and shops according to the need,
for the smooth running a company requires right people on hand at the right time and in the
right place.

MAINTENANCE OF ALL RECORDS OF PERSONNEL


It maintains all the records and personal profiles of the people coming in, working and
going out. Such records help the management in finding out the right person for a job. If a
person has left the organization it can always call him back and negotiate for the key job and
work.
ATTENDANCE, TIME KEEPING, LEAVE RECORD AND RECORD OF SOCIAL
SECURITY
The HR department is also responsible for maintenance of records of employees
attendance. It is important because sufficient number of workers is on daily wages. So if an
employee is absent his pay is accordingly deducted. The department also has leave record of
the permanent employees. If they take benefit of the allowed leaves per month, their pay is not
deducted, however afterwards they are penalized by deduction of pay.
Another basic purpose of social security is to provide a minimum level of income for retires
their survivors, and their dependents, as for the permanently disabled. The program also
provides hospital and medical payments. DSM TEXTILE ever social security benefits vary
depending upon how long a worker has contributed to the organization. To maintain all the
relevant record and decide accordingly the extent of benefit to be allowed to a worker is the
responsibility of personnel department.

24

HANDLING OF ALL MATTERS RELATING TO PERSONNEL


HR department also deals with the complaints of the employees arising from the
working conditions or from the decision made by the lower level managers and supervisors.
Typically grievances arise when a worker feels that he has been passed over for promotion, is
not getting a fair share of overtime or is being asked to work too much overtime.
Such problems are first of presented to immediate supervisor of the employee, if he is unable
to resolve, then the problem goes to manager and if even then the issue is not settled, then it is
presented to human resource manager, who with discuss the problem with director and tries to
reach to solution.
PERSONNEL COUNSELLING
Employees are human beings and they need to be treated accordingly. When an
employee is in trouble at work or at home, he appreciates the helpful attitude of coworkers and
organization itself. One he is out of trouble, he is more committed to work and the
organization. Therefore personnel department also takes care of employees personal problems,
so that they could work to their full potential.
DECISION MAKING
The decision making system is important for an organization, if it is to succeed. Customarily
there are two extremes:
I.
II.

Centralized decision making


Decentralized decision making

At DSM TEXTILE it was strongly felt that the organization should follow the
centralized system. Chairman and Directors are all in all in the organization. Even routine and

25

daily affairs are to be approved from the Directors. Managers have little power to make
decisions.
On the positive this system gives effectiveness and the top management knows
everything going on. He has utmost control over the functions, he is responsible for.
But on the opposite the argument is that no one person can oversee and control all the work,
particularly when organization is very large. In such care, he should assign some of its
authority and resistibility to the managers and other employees. Also in case of decentralized
system of decision making, the managers can be held responsible for the work done by people
directly under his supervision.
MARKETING DEPARTMENT
They have two marketing departments
1.

Local marketing department

2.

Export marketing department

Export categories

European Market
Australia
Far East
Middle east
Europe
North America
South America
Africa
Australia

COMPANY MARKETING MIX


By marketing mix of an organization DSM TEXTILE mean, what company offers to
the customer i.e. company's products, what price it charges for the product. How the product
reaches to customer and how company promotes the image of the product. One can easily
26

understand that all this depends upon the product, company is offering and nature of the
organization itself.
DSM Textiles is an organization which is in the business of cloth for quite long time now. It
has started printing of grey cloth in 1967. For this purpose it has established a printing unit.
Here DSM TEXTILE discuss about printing of grey cloth.
Marketing / Sales Procedures
PRODUCT MIX
By product mix DSM TEXTILE mean what products are being offered by the
company. DSM TEXTILE prints all types of designs for various needs of the
customers. It also produces customized products. All colors are used commonly.
As far as DSM TEXTILES is concerned, at present all types of textile products. 30
percent material of the textile products is purchased from local vendors and rest of 70
percent is imported largely. The Products carries beautiful designs.
A more prominent, courageous and competitive step taken by the management is to
offer products in 12 different colors. This has given an edge to DSM TEXTILES over
competitors.
Currently DSM TEXTILESis also working on an extra ordinary design.

PRICING POLICIES
The management of DSM TEXTILES is ll aware of the fact that, the most of the
population of India could earn only enough to make both ends meet. Moreover the textile
products it makes are mostly used by lower middle class and lower class in terms of income.
Taking these facts into consideration, management prices its products such that, they are
easily affordable for the customers. As for as per meter price is concerned; it is purely on
market and profit basis. Lastly, cost has been accumulated and addition of desired profit sets

27

the price. The prices of all textile products are in range from Rs.20 to Rs.200 per meter. While
exclusive products are available at different prices.
It is a known fact that in 1993 there has been steep increase in prices, and for many
people it had become unaffordable to buy products despite immense need. There has
been monopoly of the some competitors and they charged prices of their own choice.
In Such circumstances, the management of DSM TEXTILES saw an opportunity to
full fill the demand of the exploited people it launched its products in 1995 with a price
difference of 30%, as compared with the competitors. At present there is healthy
difference prevailing as for as price is concerned.
As stated earlier the management wants to makes its products affordable to more and
more people. The basic intention behind this objective is to capture as large a market
share as possible. Which will give economies of scale, and this ensures its ever
increasing profits.
The management also makes it binding on its local sale shop that it sells products to
customers at announced prices. So that each customer is treated equally and showed
satisfied. This adds to good image and good will of DSM TEXTILES.
From time to time the sales officers prepare lists of its products and that of
competitors. Then price changes are considered if necessary.

DISTRIBUTION POLICIES
For local Sale
Manufacturer
Wholesalers
Retailer
Customer

28

For Local Sale but by using the Own Shop Facility


Manufacturer
Own Shop
Wholesalers
Retailer
Customer
For Export
Manufacturer
Commission Agent (Home)
Commission Agent (Host)
Importer
It means the connections between manufacturer and customers are wholesalers,
retailers, commission agents and middlemen. Therefore company takes great care in selecting
the connected parties. All matters regarding connected parties are settled through the Sales and
Marketing Departments. DSM TEXTILES has many permanent customers in Tamilnadu .
Some exclusive items are directly sold to permanent importers on order. These items are of
extremely high quality.
SELECTION POLICIES FOR MIDDLEMEN
Middlemen are the link between manufacturer and the wholesalers; as far as DSM
TEXTILES is concerned, it has evolved criteria for selection of middlemen. So marketing
department considers following aspects.

29

Sales potential of the area


Number of existing middlemen in that area
Financial position of the applicant
Past experience
Storage capacity
Location of the out let
Reputation of the applicant in the area
The performance of existing middlemen in the area

Normally, a basic requirement is, the area must have population round about 30,000 with high
purchasing power. Area sales officer visits the prospective areas to inspect the location and
other facilities. The assistant Marketing manager verifies the applicant's general position from
different sources including bankers. Then he makes remarks on the application and he sends to
the marketing manager. If he approves the application, then the middleman is selected.

2.3 FINANCE DEPARTMENT

30

The finance department is the most authorized and vital department of the
organization. The main functions of the finance department are;
A.

Anticipation of needed funds

B.

Acquisition of funds

C.

Allocation of funds

D.

Inventory control
A. ANTICIPATION OF NEEDED FUNDS.

The process of anticipation of required funds can be divided into following two categories.
1. Salaries
2. Purchases
1. SALARIES
Important functions of salary section are:
To prepare monthly payroll for officers and employees.
To prepare payroll sheets for the employees or workers and maintain a record of the
supporting vouchers received from administration department.
To prepare the month-end trial balance of advance ledger and reconcile it with the
control ledger.
2. PURCHASES
All types of materials, equipments machinery, stationery, parts and etc. are purchased on
credit basis. At the end of each month total amount to be paid for all credit purchases are
calculated and then payments are made in next month in general. A subsidiary section of the
purchase section is of import section. DSM Textiles imports raw materials, spare parts of
machinery or machinery or plant. All these imports are in compliance with the import policy
of Government of India.
31

B. ACQUISITION OF FUNDS.
Main source of funds at DSM TEXTILESand functions of finance department are:
1.

Sales of products

2.

Banks

3.

Share capital

1.

SALES OF PRODUCTS

The funds obtained through sales of products are recycled into business after deduction of
profits.
2.

BANKS
DSM Textiles has developed a thinking of use of internal funds instead of external

funds. However, sometimes it does finance its projects through bank loans. DSM Textiles gets
two types of loans; Long term loans are borrowed by pledging fixed assets such as building
and heavy machinery, short term loans are obtained by pledging raw materials and finished
goods.
3. SHARE CAPITAL
DSM Textiles has a CEO and three directors; each director has purchased at least 6000
shares each of Rs. 100. It contains the share capital of Rs- 2,927,400/-.

C. ALLOCATION OF FUNDS

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Finance department also formally allocates funds to different departments in


accordance with the annual planning and priorities of the Directors. However it is not
necessary and binding upon the department.
INVENTORY CONTROL
Finance department also controls inventories of different departments indirectly. And
also maintain all the record about it.

2.4 SALES DEPARTMENT

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BOOKING
At DSM Textiles has both booking System i.e. payment is required before delivery or
after delivery. Booking is made on credit basis or current basis.
DELIVERY
Delivery is on FOB basis which is freight on board. It is on CKD condition means
complete knock out condition to reduce freight charges and to prevent from damage. There are
two types of supplies. Export items have delivered by using the containers like 40 cubic feet
etc. Local items have delivered by using the local carriers.
PROMOTION
In modern age just to have good product does not guarantee, that it would sell. Rather
there is so much competition in markets that you have to make fierce attempts to introduce
your product. In this regard you have different tools available. The choice of the tools makes
your promotional mix. The purpose of your tools is to make product known and acceptable to
target customers. DSM Textiles has also adopted a set of promotional tools for promotion of
products. They are discussed as follows.
Advertising
Publicity

STORE DEPARTMENT

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In DSM TEXTILESthere is Store department is one which stores all the materials,
equipments and spare parts etc. Which is need in the signalization for its smooth running? The
main function of the department is to provide the needs of the organization i.e. machines
spares parts, packaging materials, tools, oils etc. To run business continually these departments
plays very important role in the organization. In this department they provide materials
according to order made by the different departments in the organization. The order ship must
be sign by the Managing Director department head.
Objectives of the Store Department
Concentrating towards smooth running of the production process
Facilitating all required equipments on time
Reduction of Inventory equipments on time

2.5 QUALITY DEPARTMENT

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Quality Management at DSM TEXTILES is very particular about improvement and


maintenance of quality. For this purpose, they have established a well-equipped department
heaving quality control laboratory, for which separate staff and experts have been hired.
QUALITY CONTROL PROCESS
Their process of quality control starts from the suppliers and ends at customer. As DSM
TEXTILESdoes not have their own weaving unit, they have to purchase material (yarn) from
the open market. They start quality control right from the purchase of yarn, chemicals, dyes
and other materials. For this purpose, inspection is made to see whether the purchased material
is up to required quality standard or not. If not, it is rejected. If accepted, it is then given to
weavers who weave the cloth only for DSM TEXTILES here also weaving process is
continuously examined to have woven cloth of required quality standard.
Inspection is also made at the arrival of woven cloth to the DSM TEXTILES, i.e.,
whether the cloth is woven with required specifications or not.
Dyes and chemicals are also examined for their brands, proper combinations, quality,
colors and other characteristics.
Inspection for quality standards is made throughout the step by step manufacturing
process, especially during grey inspection for weight, width and blend ratio.
During Kier Scouring and Rope Bleaching, checking is made for whiteness and PH.
During mercerizing, absorbency is checked.

SAMPLING
DSM TEXTILES uses sample of products to check the quality and the product to be
produced in bulk.
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QUALITY STANDARDS
DSM TEXTILES is following different quality standards for domestic and export products.
DOMESTIC PRODUCTS
DSM TEXTILEShas its own quality standards for its domestic products. They
continuously try to maintain and improve these standards.
EXPORT PRODUCTS
For export products, they have to follow the quality standards as specified by the
customer. If they are exporting to Japan, then they have to meet their requirements and if they
are exporting to Europe, then they have to follow European standards. They can make minor
adjustments in quality as required by the customers.
STATISTICAL QUALITY CONTROL
DSM Textiles is using charts (mostly bar charts) for the purpose of statistical quality
control to whether there is improvement needed and where it is needed.

ISO 9000 CERTIFICATION

37

The management, management represents and management coordinators are working


very hard to achieve standards. They have also worked for the certification of the ISO 9001
certificate.
QUALITY POLICY
QUALITY IS DSM TEXTILE FUTURE
DSM TEXTILES is a unique versatile organization and is dedicated to the continuous
improvement in producing different types of processed fabrics by providing excellent services
through motivated employees who are dynamic team of people DSM TEXTILE ensure that
the products are produced according to the customer requirement and expectation. DSM
TEXTILES is renowned in the local and international market for its excellent services, timely
delivery of quality finished products to their valued customers. DSM TEXTILES philosophy
of continuous improvement relies on intensive training programs, regular meeting discussions,
which emphasize the employees direct involvement DSM TEXTILE aim is to respond the
customers ever changing needs in the most efficient way.

CHAPTER III
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3.1 FINDINGS
The company has a monopoly market in textile cotton yarn and polyester
yarn.
All the

3.2 SUGGESTION
Employees should be trained according to the changing standards of the organization.
Company should conduct survey from time to time so as to make the necessary
changes in the organization .
They should introduce creativity into the work, so that the employees can do their
work active mindedly
Employees should be given compensation in order to keep them loyal
The present official staff of DSM TEXTILE can be given a suitable management
training about the modern management concept and management technologies.

CHAPTER IV
CONCLUSION
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DSM TEXTILES is one of the leading groups in Tamilnadu. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to study about the various department in the
organization and their workings.
The overall study indicates that the company has attained progress mainly through
dedication of employees. The effectiveness of management, their willingness to take
advantage of opportunities and face challenges of changing economic picture, has contributed
in improving the companys performance, this in turn has contributed to the improvement and
soundness of the company.

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