INTERNSHIP REPORT

D.K.Creations pvt. Ltd.

SUBMITTED BY - HIMANSHU RAJPUT, BBA (M&S) - 2nd YEAR Enrollment No. – A3914708051

UNDER THE SUPERVISION OF – MR. DEVENDER GUPTA (DIRECTOR)

FROM

3 rd MAY, 2010

TO

26 th JUNE, 2010

1

ACKNOWLEDGEMENT

My summer training was done under the guidance of Mr. Devender Gupta,

Director, D.K. Creations pvt. Ltd. in New Delhi. It gave me an opportunity to

learn some of the aspects of marketing just because of him.

I am also thankful to Mr. Devender Kumar, Manager, Shiv International, for

guiding me to complete my internship. The company co-operated with me to the

fullest inspite of the fact that I knew nothing about the industry before joining it.

I am thankful to Mr. Vivek Ahuja, my faculty guide for his invaluable inputs.

However, this journey would not be complete without expressing my indebtedness

to my faculty guide, whose suggestions and guidance has been extremely helpful

in finalizing this report.

HIMANSHU RAJPUTBBA (M&S) 2008-2011

2

ABSTRACT

D.K. Creations Private Limited is a manufacturer and exporter of Home furnishing

and Made-ups, established in year 1996.

With a total production capacity of 40,000 pcs./ Annum and a product range in

home furnishing and made-ups, like: Quilts, Bed Spread, Pillow shams and others.

I carried out a detailed observation of company’s marketing profile and the selling

pattern of the company to others. As the company deals in quilts and fabrics, I got

to know about the chain of clothes and fabrics. The company also supplies the

clothes to other manufacturing companies in various forms. I worked with the

dealing team of D.K. Creations private limited and I was the part of fabric dealing

to Shiv International, also an home furnishing company. I worked with them for 3

days

I have learnt how to make a sampling format for the buyers of the company.

The company send the samples through couriers and also through e-mails. Firstly

an e-mail is sent to the buyers and if they are interested in it, the courier is been

delivered to them in within 3 to 4 days. I also visited the showroom of the

company.

3

TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

(1)

INTRODUCTION: - Textile Industry: - SWOT: - Segments

- Cotton- Silk- Woolen- Readymade- Jute

: - D.K. Creations pvt. Ltd.: - Buyers

- Domestic- Global

67

91113141618

2021

(2) MATERIALS AND METHODS 23(3) RESULTS AND DISCUSSIONS 24(4) CONCLUSION AND

RECOMMENDATION27

(5) FUTURE PROSPECTS 29(6) APPENDICES

: - Heimtextil 2010 30(7) REFERENCE AND BIBLIOGRAPHY 33

4

PREFACE

The purpose of this report is to explain what I did and learnt during my internship

period with D.K. Creations Pvt. Ltd. in buying and selling of goods to other

companies.

The report focuses primarily on the assignments handled, working environment,

successes and short comings that the intern did encounter when handling various

tasks assigned to him by the supervisor.

Because the various parts of the report reflect the intern’s shortcomings, successes,

observations and comments, it would be imperative that the recommendations are

also given. Therefore the report gives a number of comments and

recommendations on the internship programme.

It is hoped that this report would serve as a cardinal vehicle to the improvement of

the internship program.

5

INTRODUCTION

TEXTILE INDUSTRY:- The textile industry is a term used for industries

primarily concerned with the design or manufacture of clothing as well as the

distribution and use of textiles.

India Textile Industry is one of the leading textile industries in the world. Though

was predominantly unorganized industry even a few years back, but the scenario

started changing after the economic liberalization of Indian economy in 1991. The

opening up of economy gave the much-needed thrust to the Indian textile industry,

which has now successfully become one of the largest in the world.

India textile industry largely depends upon the textile manufacturing and export. It

also plays a major role in the economy of the country. India earns about 27% of its

total foreign exchange through textile exports. Further, the textile industry of India

also contributes nearly 14% of the total industrial production of the country. It also

contributes around 3% to the GDP of the country. India textile industry is also the

largest in the country in terms of employment generation. It not only generates

jobs in its own industry, but also opens up scopes for the other ancillary sectors.

India textile industry currently generates employment to more than 35 million

people. It is also estimated that, the industry will generate 12 million new jobs by

the year 2010.

India textile industry is estimated to be around US$ 52 billion and is also projected

to be around US$ 115 billion by the year 2012. The current domestic market of

textile in India is expected to be increased to US$ 60 billion by 2012 from the

current US$ 34.6 billion. The textile export of the country was around US$ 19.14

billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share

6

of exports is also expected to increase from 4% to 7% within 2012. Though during

the year 2008-09, the industry had to face adverse agro-climatic conditions, it

succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last

year, yet managed to retain its position as world's second highest cotton producer.

SWOT ANALYSIS:

Strengths:

1. Indian Textile Industry is an Independent & Self-Reliant industry.

2. Abundant Raw Material availability that helps industry to control costs and

reduces the lead-time across the operation.

3. Availability of Low Cost and Skilled Manpower provides competitive

advantage to industry.

4. India is one of the largest exporters of Yarn in international market and

contributes around 25% share of the global trade in Cotton Yarn.

5. Industry has large and diversified segments that provide wide variety of

products.

6. Growing Economy and Potential Domestic and International Market.

Weaknesses:

1. Indian Textile Industry is highly Fragmented Industry.

2. Industry is highly dependent on Cotton.

3. Lower Productivity in various segments.

4. Lack of Technological Development that affect the productivity and other

activities in whole value chain.

5. Unfavorable labor Laws.

6. Higher Indirect Taxes, Power and Interest Rates.

7

Opportunities:

1. Growth rate of Domestic Textile Industry is 6-8% per annum.

2. Large, Potential Domestic and International Market.

3. Market is gradually shifting towards Branded Readymade Garment.

4. Increased Purchasing Power of Indian Customer opens New Market

Development.

5. Emerging Retail Industry and Malls provide huge opportunities for the

Apparel, Handicraft and other segments of the industry.

Threats:

1. Competition from other developing countries, especially China.

2. Geographical Disadvantages.

3. Environmental Laws.

4. To balance the demand and supply.

5. To make balance between price and quality.

SEGMENTS:

Indian textile industry can be divided into several segments, some of which can be

listed as below:

Cotton Textiles

Silk Textiles

Woolen Textiles

Readymade Garments

Jute Textiles

8

Cotton Textiles

Cotton textiles count among the oldest industries in India. One can follow it back

to the times of Indus Valley Civilization, when cotton fabrics of India were in

great demand even in the countries of Europe and West Asia. It used to be a

cottage or village industry during those times. The spinning wheel comprised its

only machine- simple but exceedingly inventive. The modern textile industry in

India first began at Fort Gloster near Kolkata in early 19th century.

But it in reality made a head start in Mumbai in the year 1854 when a cotton

textile mill was set up there exclusively out of Indian funds.

The cotton textile industry in India provides livelihood to farmers, and workers

engaged in ginning, spinning, weaving, dying, designing and packaging, not

leaving sewing and tailoring. It is India`s one of the most traditional and esteemed

industry. More importantly, the industry strikes a rational balance between

tradition and modernity. Cotton textile industry in India has all along prospered on

its own funds.

On the other hand, the country possesses the most contemporary capital intensive

and high speed mill-produced cloth with a huge market both at home as well as

abroad.

The fabrics are basically produced in three sectors - mills, power looms and

handlooms. Together they account for around 98.5 percent of the fabrics produced

in the country. The mill sector accounts for only 5.2 percent of the total fabrics

produced in the country, whereas power looms and handlooms are responsible for

nearly 73 percent and 20.3 percent respectively. For example, the whole sari sector

9

is earmarked for handloom and power loom sectors. The latter also produces

hosiery on a vast scale, by and large for export purposes.

India also exports quality yarn to Japan and other European economic

communities.

In India cotton textiles production is basically located in Maharashtra, Tamil

Nadu and provinces of Gujarat. Interestingly, several government programmes

have sustained cotton textile industries in almost all the states in the country. In the

country, because of irrigation restrictions, cotton textile productions are heavily

dependent on monsoon season. Further, in 1997 and 1998 the country had

produced 37.4 billion metres of fabrics. Now the proportion between natural and

human-made fibre is almost equal. The important centres of cotton textiles

industry comprise Mumbai, Ahmadabad, Coimbatore, Madurai, Indore,

10

Kanpur, Delhi and Hyderabad.

Silk Textiles

The silk tradition is one of the oldest in India and sericulture is a labour

concentrated industry. It demands nurturing of silkworms, which are exceedingly

ravenous. Silk is said to be the Queen of Textiles and it has the charm that can

hexes the elegance, luxury, comfort and class. As per the history, silk was

introduced before 4,500 years and India is said to be the second largest producer of

silk in the world.

By its natural sheen and luster, silk creates a spell in terms of grandeur and

ethnicity. It has been maintaining its own qualitative mark in the Indian market

despite of strict and daunting competition in the local market.

The production of silk is considered to be one of the major means of developing

the economic status and foreign exchange of a country. Karnataka, Tamil Nadu,

Andhra Pradesh, Assam, West Bengal, Bihar, Uttar Pradesh and Madhya

Pradesh are the states producing unprocessed silk. Among these states, West

Bengal, Andhra Pradesh, Tamil Nadu, Karnataka and Jammu & Kashmir are

reckoned for producing mulberry silk and Chhattisgarh, Orissa, Jharkhand, and

north-eastern states are well recognized for producing non-mulberry silks. In

1980-81 production of silk was 5,000 tones. As Japan has pulled away from this

industry, India stands a very good chance to fill in the breach. The country would

need 30,000 tones in near future. India brought in almost 250 crore rupees worth

of foreign exchange through export of silk items. China however, continues to top

the world in production of silk and its exports.

11

Woolen Textiles

12

Woolen textile in India has come to a prodigious position after the economic

liberalization in India in the 1990. There are more than 50 woolen mills in the

country. Many of them are based in Punjab with Amritsar and Ludhiana serving as

the key centres. The other centres of the industry include Mumbai, Bengaluru,

Jamnagar, Kanpur and Srinagar. Indian woolen textile has been developed in

Punjab, Uttar Pradesh, Maharashtra, Rajasthan, Haryana, Jammu and Kashmir,

Gujarat, Uttaranchal, Andhra Pradesh and Karnataka. The Government of India

has taken necessary steps for the development of woolen textiles in India.

India mostly manufactures coarse wool that finds extensive use in the production

of quality carpets and blankets. Fine quality wool required for weaving, knitting

and hosiery yarn is produced in small proportion in Himachal Pradesh as well as in

Jammu and Kashmir. First woolen mill in the country was founded in the year

1876 at Kanpur.

Sheep breeding farms are being established in parts of north western India for

improving upon the quality and for augmenting the quantity of wool. Positively,

the manufacture of carpet yarn has made a significant progress over the paste few

decades as it is entirely based on indigenous wool. Indian hand made shawls and

rugs are well known throughout the world for their rich design and texture.

Besides, shawls and rugs, India manufactures diverse variety of exquisite woolen

fabrics, pullovers, cardigans and blankets.

Readymade Garments

13

Ready-made garments account for approximately 45% of India's total textile

exports.

They represent value added and less import sub sector. India's thrust into ready

made garment production started in the early 80s in the wake of the liberalization,

received a big impetus during economic reforms in the early 90's and during the

last two decades, has moved to the Tenth position, in the World's best textile

export country of ready made garments.

Ready made garments are India's leading export products and achieved rapid

growth in the late 1980s and the first half of the 1990s. However, India's share of

world ready made garments exports has not risen since 1994. The immediate cause

is apparently the slowdown in the import growth of India's major markets, namely,

the United States and the EU.

The export of ready made garments, which was to the tune of 253.6 million pieces,

valued at US$ 826.5 million during January-February 2002 has increase in

quantitative terms to 306.1 million pieces, valued at US$ 1137.9 million, up by

20.07% in quantity and by 37.68% in value terms, during January-February 2003,

14

when compared with the same period last year.

The USA, EU Member States, U.A.E., Japan, Saudi Arabia, Canada, Hong Kong,

Switzerland and Australia have been the major importing countries of our Indian

ready-made garments. In India, Ludhiana, Delhi, Bangalore, Mumbai and Chennai

are unique and dynamic centers of production.

India is at present a niche player in the low-value market segment based on cotton

fabrics and for seasonal and fashion garments. This reflects India's comparative

advantage in cotton cloth and its flexibility advantage in meeting small orders.

Jute Textiles

15

Jute textiles or jute industries in India are highly localized industry. There were

very few jute industries at the time of the independence of the country and their

number has proportionally increased considerably over the years. The jute mills of

India provide employment to a huge number of people. Kolkata and Naihati in

West Bengal account for the maximum proportion of jute mills in the country.

The jute mills of Naihati have been set up close to the banks of Hooghly River. It

is one of the principal jute products manufacturing centres in India. The first jute

mill in the country was established as early as 1859. It was established by some

British industrialists. Being an export oriented industry, it had expanded very

swiftly. After partition of the country, most of the mills remained in India, but

around three-fourth of the total jute producing area went to neighbouring country.

Apart from the jute industry located near the banks of Hooghly River, there are

several other centres having one jute mill in India. They are dispersed and are

situated in Bihar, Uttar Pradesh, Orissa and more. Before the independence of

the country, jute mills of the country were supplied with raw jute by some of the

north eastern states. But, after its independence major portion of the total area

went to Bangladesh and that is why India requires importing bulk of jute every

16

year.

The jute industry at one time earned respectable foreign exchange. Today it has to

come face to face with umpteen challenges one is the down slope in demand for

jute carpets and packing materials. Soaring costs and potent international

competition in export market make up the other problems. Above all unreal

substitutes both at home and export markets, are presenting a biggest challenge

ever. Its export profits are inclusive under the textile industry.

At present, jute industries of the country are passing through difficult times owing

to the competition from relatively cheap synthetic industrial packing fabrics made

of high density polyethylene. Cement industry as well as salt and fertilizer

industries prefer synthetic packaging materials over jute bags. Steep rise in the

price of jute and low productivity of jute factories are other major factors behind

the sad plight of jute industries in the country.

D.K. CREATIONS PRIVATE LIMITED

17

D.K. Creations Private Limited is a manufacturer and exporter of Home furnishing

and Made-ups, established in year 1996. With a total production capacity of

40,000 pcs./ Annum and a product range in home furnishing and made-ups, like:

Quilts, Bed Spread, Pillow shams and others.

18

The company is also experienced in making Cushion covers, Curtains, Chair pads, Table

mats, Table covers, Duvet covers, Dust ruffles and other allied products.

“YOUR HOME IS A REFLECTION OF YOUR PERSONALITY”

The personality of a person can also be judged by his/her home because he/she will

decorate the home according to his/her own choice or likeness.

D.K. Creations Pvt. Ltd. working structure is a dual based structure. They have their own

designers, who make samples and then chooses the best one for further production.

Second they get orders from other companies and after setting the pricing strategy the

order comes in the line of production department.

MISSION AND VISION

The company’s mission is to achieve the target of more than 59 shipments in

current Financial Year and become a socially responsible Global Corporate

citizen. The vision is to become one of the leading fabric manufacturing

companies of the country, a leader in product innovation and customer

satisfaction. D.K. Creations intends to build long term value relationships

with all its suppliers.

19

BUYERS

Domestic – SHIV INTERNATIONAL

Company is the manufacturer & exporter of Home furnishing made ups. presently

Company is doing international business with leading firms of South America,

North America, Japan, Australia, Denmark. For maintaining contact with these

countries, the company pays a keen interest in participating fairs & exhibitions all

round the world.

20

Global – ILVA and ZARA HOME

ILVA is the regular buyer of D.K. Creations. The company just manufacture the products ordered by ILVA.

21

ZARA HOME:

Fashion in the home. Trends that are reflected in fabrics and decorations. Guaranteed quality at affordable prices. That's what Zara Home is all about.

Stores full of life, designed for easy shopping, and settings created to inspire.

22

MATERIALS AND METHODS

The methodology that has been used is as follows:

Electronic media – Internet

DATA COLLECTION METHOD:

Primary data sources: They are those data or information that are collected or

observed form first-hand experience. In this case, previous details are used to get

the data.

Secondary data sources: They are those information that are collected from

secondary sources, i.e., not directly compiled by the analyst. It can be collected

from journals, magazines, website, etc.

Four days of working was done in Shiv International with my team members

regarding the deal of fabrics.

Online source was very much helpful to be in contact with the buyers.

Got to know about the dealing of products and price rates only by emails.

23

RESULTS AND DISCUSSIONS

I learnt how to make the Performa, this Performa tells about the export of products to particular buyer and particular transport.

The original Performa –

24

25

CONCLUSION AND RECOMMENDATIONS

CONCLUSION:

The organized textile industry has been able to cover up the debts occurred

because of recession. The company is able to make large number of deals with the

buyers.

The company is able to improve its 4p’s after recession.

- Low price products by utilizing previous year stocks.

- Use of previous year samples and manufacturing more quantity of the PY

best sold products.

Cloth consultancy is very much important to increase the sale of products. The

distribution network needs to be improved, availability of products get delay many

times.

They should increase the number of buyers,

more buyers – more productivity – more selling – more profit – more growth

Hence the company has to expose itself and, for this they need to work more

smartly and more creatively and all the defects or problems will be gone

automatically.

26

RECOMMENDATIONS:

The company should think to be glocal; they should produce samples

according to the likeness of other country citizens.

More use of technology to produce the products faster and better.

Two designers can’t give different varieties of products, therefore hire more

designers.

The company does not meet customers face to face. Hence, they should do

some advertising on the internet because it is the fastest source to reach at

customers nowadays.

Be an owner of a big space vehicle so that the orders could be delivered on

time.

Price should be reasonable.

Products should be made available to the buyers in accurate quantity.

FUTURE PROSPECTS

27

The has overtake the recession period, and is growing at 12% annually and if this

impressive start continues, then it will be able to climb up and never see down.

The growth will be powered by investing more assets in creation and production

department.

D.K. Creation claims that it is the best maker of fabrics in Delhi and organized

NCR sector. It also had a unique tie-up with various global companies which help

it to become more global and spread the products all over the world

Such as – ZARA HOMES, Denmark

ILVA, Denmark

La Creations, UK

ITX, Switzerland

APPENDICES

HEIMTEXTIL 2010

28

STAND CONSTRUCTIONS

29

THE STALL SHAPE

TELECOMMUNCATION

30

Many telecommunication facilities were provided in the fair. Such as:

TELEPHONE/FAX CONNECTION

EASY INTERNET

EASY WIRELESS

PRESENTATION TECHNOLOGY

Technology should inspire people Getting exhibitions to work and

capturing people's imagination involves looking after every last detail, making

sure everything – everywhere – works in harmony.

The Frankfurt trade fair site is one of the world's largest – and probably one of the

world's best – locations to put your company centre stage. We all know nothing

should be left to chance. You need professionals, with the right know-how and

experience.

Messe Frankfurt GmbH

Ludwig-Erhard-Anlage 1

D-60327 Frankfurt.

Telephone +49 69 75 75-0

Fax +49 69 75 75-64 33

www.messefrankfurt.com

REFERENCE AND BIBLIOGRAPHY

31

Books:

Consumer Behavior – Schiffman, L.G. & Kanuk, Prentice Hall of India (P) Ltd.

Marketing Management – Kotler, Keller, Prentice Hall of India (P) Ltd.

Marketing Research – G.C. Giri, Tata McGraw Hill Ltd.

Websites:

www.textileworld.com

www.texprocil.com

http://www.indian-textile.com/

http://www.india-crafts.com/textile/india-textile.html

http://en.wikipedia.org/wiki/Textile

32