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Presentation on
SummerTraining
Presented by :
Bhagat Harman Deep
MBA 2(A)
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Indian Textile Industry
Textile is one of Indias oldest industry.
It is the second largest employment generator .
The industry uses a wide variety of fibers .
India contributes to around 12 percent of the
world's production of cotton yarn and textiles
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India covers 22 percent of the global market.
India is known to be the third largest manufacturer
of cotton across the globe.
India claims to be the second largest manufacturer
of yarn and textiles in the world.
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SPORTKING INDIA LTD.
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HISTORY
Sportking India Ltd. Was Incorporated on
15-02-1989 by Sh. Raj Kumar Avasthi &
his family members.
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Other Companies of Sportking Group
M/s. Sportking Knitwears
Classis Wears Pvt. Ltd.
M/s. Aradhan KnitwearsM/s. Sportking Exports
Namokar Capital Services Pvt. Ltd.
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Markets
USA: Target Stores, JC Penny, Hagger, Li and Fung,Mother Works, Costoc, Urban Outfitters, C.A.G.,HMX Sportswear and Walt Disney.
EUROPE: George and Tom Tailor.
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Conti.
Domestic :Pantaloon, Shoppers Stop,Lifestyle, Pepe Jeans, Max (Dubai and India),
Pyramid, Big Bazaar, Westside. They also have
a license for the manufacturer of Walt Disney
branded garments for India.
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Classic Wears Pvt. Ltd.
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Classic Wear Ltd. was established in the year 1987 inNoida.
Shifted from Noida to Ludhiana in the year 1988 havinga change in name Classis Wears Private Limited.Presently it is situated at Village Meharban, Rahon Road,
Ludhiana.
Presently Classic Wears is a leading manufacturer ofKnitwear for gents, ladies and kids in Northern India
Production capacity of 1, 50,000 pcs.
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Business Philosophy
TO GROW
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Quality policy is:
TO MEET THE COMMON PEOPLE
NEEDS
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ORGANISATIONAL CHART
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SWOT Analysis
Strengths
Established brand Name Sportking.
One of the oldest known fabric manufacturers.
Most experienced technical manpower.
Own dyeing and spinning units
Weaknesses
Fabric & Design development are not fullyexploited
Do not have enough retail outlets.
Employees are not well educated
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Better utilization can be made with new machines.
Can increase market share with wide rangeImprovement in distribution chain-number of
dealers and retail shops in the urban and semi urban
areas
Can make more links for export
Opportunities
Threats
The concern is facing competition from existing
and upcoming units in the industry.
Fluctuations in the prices of raw materials.
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RatioAnalysis
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Particulars 2005-06 2006-07 2007-08 2008-09
total current
assets 12,17,58,860.6 16,28,16,243.2 22,53,15,071.9 21,76,30,571
Current
Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73
CurrentRatio 2.87 2.57 2.20 2.32
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Particulars 2005-06 2006-07 2007-08 2008-09
total quick
assets 7,27,98,255.82 10,83,38,595.6 13,26,65,360.7 9,64,67,747.68
Current
Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73
Quick ratio 1.72 1.71 1.29 1.03
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Particulars 2005-06 2006-07 2007-08 2008-09
cash & bank 24,23,918.37 47,56,425.17 1,45,90,577.15 1,04,50,533.83
Current
Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73
Cash ratio 0.05 0.07 0.14 0.11
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Particulars 2005-06 2006-07 2007-08 2008-09
avg. debtor 6,72,55,651.59 7,80,47,244.66 10,05,96,472.4 9,19,85,740.16
net credit
annual sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586
D.T.R. 3.29 3.95 3.38 3.21
DEBTOR TURNOVER RATIO =Total Credit sales
Avg. Debtors
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Particulars 2005-06 2006-07 2007-08 2008-09
avg. creditor 2,98,03,839.41 3,71,95,451.34 6,96,06,435.68 8,70,84,096.41
net credit
purchase 15,11,76,819.2 20,75,10,325.7 23,43,87,408.2 18,09,35,723.4
C.T.R. 5.07 5.57 3.36 2.07
CREDITOR TURNOVER RATIO =Total Credit Purchase
Avg. Creditors
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Particulars 2005-06 2006-07 2007-08 2008-09avg.
Inventory 4,48,64,093.41 5,17,19,125.78 7,35,63,679.36 10,69,06,267.3
sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586
Ratio 4.940899122 5.961344588 4.628610126 2.765961188
INVENTORY TURNOVER RATIO =Sale
Avg. Inventories
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Particulars 2005-06 2006-07 2007-08 2008-09
outsiders fund 4,80,81,483.64 9,51,08,044.52 12,25,51,415.2 15,57,56,401.5
Shareholder
fund 7,72,64,900 6,79,35,265.29 8,76,75,610.73 8,59,92,405.54
Debt equityratio 0.622293999 1.399980468 1.397782282 1.811280897
DEBT EQUITY RATIO =Outsiders Fund
Shareholders Fund
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Particulars 2005-06 2006-07 2007-08 2008-09
sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586
Profits 50,29,940.77 58,98,563.68 74,63,528.44 54,55,636.81
Ratio % 2.26 1.91 2.19 1.84
NET PROFITABILITY RATIO=Net Profit
Sales
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MEANING OF INVENTORY
Inventory is the physical stock of goodsmaintained in an organization for its smooth
running.
Raw Material
Work in Progress
Finished Goods
Spare Parts
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OBJECTIVES OF INVENTORYMANAGEMENT
Ensuring Availability of Materials
Avoidance of Abnormal Wastage
Avoidance of Out of Stock Danger
Economy in purchasing
Optimum Investing and Efficient use of
capital
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Risk Associated with Inventories
Price decline
Product deterioration:
Obsolescence
Cost Associated with Inventories
Material Cost
Ordering Cost
Carrying Cost
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ESSENTIALS OF INVENTORYCONTROL SYSTEM
Classification and Identification of inventories
Adequate storage Facilities
Adequate Reports and Records
Intelligent and Experienced Personnel
Coordination
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TECHNIQUES OF INVENTORYCONTROL
Safety Or Buffer Stock
Economic Order Quantity Technique
VED Analysis
ABC System
Just-in-time
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RESEARCH
METHODOLOGY
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To study the method of inventory
management & control in Classic Wears Pvt. Ltd.
To study the problems in inventory
management & control in Classic Wears Pvt. Ltd.
OBJECTIVES OF STUDY
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Research designFor this research descriptive research design is used
Size of PopulationAll the employees who directly or indirectly related to
the inventory in Classic Wears Pvt. Ltd., Ludhiana.
Sample size
Six employees working in Finance, Store, Production
Departments of Classic Wears Pvt. Ltd., Ludhiana.
Sample unit:One employee who directly or indirectly related to
the inventory in Classic Wears Pvt. Ltd., Ludhiana.
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Sources of Data
Primary Data: - Structured direct Interviews
with the concerned persons of Finance & StoresDepartment
Secondary Data: - Annual Report, Store Records
& various books
. They refused to fill questionnaire
Store department employees are not well educated.
LIMITATIONS OF THE STUDY:
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Inventory Management in ClassicWear Pvt. Ltd.
Raw Material consists:
Yarn
Accessories like buttons, zips, tags, patches etc.Work in process: Garments which are in manufacturin
process.
Finished goods : Garments which are ready to
sale in the market.
Spare Parts : Needles, Screw
I C l
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Prod. deptt. issue store inspect receive supplier
Demand
Place
Orders
Purchase
dept.
Net order issue receive tender
Quantity tenders quotation evaluations
Inventory Cycle
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Factors
Rank
Factor Effecting the Purchase Order
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Factors
Rank
Factor Effecting Inventory Policies
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Factors
Rank
Problems in Inventory Management
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Need of Inventory System
Factors
Rank
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There is a lot of old stock which has not any use.
At the time of issue they have to do
many entries as they have not computerized
system in store.
One the time of issue store-keeper issues some
quantity from old stock & some from new stock.
In this way they use the old stock.
No exact idea that how much quantity of yarn is
required.
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There is a lot of wastage. Store-keeper said that
after the completion of production the excess
material which is remained unused that is not
returned to the store-keeper.
If there is any defected piece, then they have tofind again the matching yarn.
Workers dont use material properly; there is a lot
of wastage. The reels, lace couldnt be used againdue to that.
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For valuation of the stock they use Average
method.
They resale the waste material in the market.
They purchase the material from their own
subsidiaries & from local market.
The main motive behind inventorymanagement system is smoothen operation of
factory.
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SUGESSTIONS
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No doubt lead time is important but other factor
like availability is also important. So they should
also give proper consideration to this.
They follow safety & bulk purchases for cost
reducing. But they should follow the JIT system.
As they are in fashion industry so this is thebest method. As they will purchase the goods
according to the order, so there will no stock
obsolescence.
According to the store-keeper there is lack of
space. The boxes of yarn & other material are
not properly stored. So there should be proper
racks for the boxes.
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The store department should becomputerized so that the recording can
be easy. The issuing of yarn is recorded
manually.
Wastage should be controlled. The
remaining material, after the completion
of production, should returned to the yarnstore. Production manager should take
care of this.
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