lal imli intern

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1 | T r a i n i n g r e p o r t o f C a w n p o r e W o o l l e n M i l l s

Training Report

CAWNPOREWOOLLEN MILLS

(BRITISH INDIA CORPORATION LIMITED)

By: Shivam Verma

3rd

year undergraduate

IIT DELHI


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ACKNOWLEDGEMENT--

I am thankful to Mr M .K. Verma(General Manager), Mr Raja Mi tra

Manager (P & A) for giving me an opportunity to take up these

projects which shall be beneficial to myself as well as to the

organization and also for providing all the help and guidance

whenever required.

I am highly thankful to my project guide Mr P.K. SinghSir for his

constant support and guidance. He has been source of motivation and

encouragement at time of difficulties, providing me all the necessary

help towards successful completion of this project.

I am highly grateful to Mr Arun choudhary, Mr N.B. Singh, for

positively examine my work and encouraging me to do better.

I am also thankful to Mr U.C. Pandeyand Mr S.S. AwasthiSir for

his constant encouragement and support till the end.

The last but not the least I am also thankful to all the staff members

with whom I interacted and learnt a lot in past two months.


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CERTIFICATE

This is to certify that SHIVAM VERMA 3rd year Textile Technology, IIT

Delhi, Entry number 2011TT10965, has completed the projects on

In-depth analysis of the present condition of Cawnpore Woollen

Millssuccessfully under the guidance of Mr P.K. Singh Sir which will

remain as a bona fide statement.

Raja Mitra

Manager (P & A)

CAWNPORE WOOLLEN MILLS


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PROJECT DETAILS

This projects is an attempt to analyse one of the greatest pioneers in woollen

industry that this country has ever witnessed from the inside as well as

outside, meaning the inside analysis involves:o Analysing the efficiency of machinery in the combing

department

o Analysing machine efficiency and utilization of the worsted

spinning department

o Analysing the financial condition of the company by performing

S.W.O.T. Analysis and ratio analysis

And the outside analysis involves:

o What are the major events that has happened to this company

o

What is the view of the public in the present time by doing asurvey

o What are the steps taken by the government for the benefit of

this company


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CONTENTS

1. Introduction about the company-

2. Origin and growth-

3.

Products of lal imli-

4. PROCESS CHART-

5. Introduction to the departments-o French combing department

o Finishing department

o Woollen carding and spinning department

o Worsted spinning department

o Quality control department

o Sulzer weaving department

o

Dye house

o Mixing house

6. COMBING DEPARTMENT-

7. WORSTED SPINNING DEPARTMENT-

8. WEAVING DEPARTMENT-

9. Organisational structure of the company-

10.S.W.O.T. Analysis-

11.Statement of financial position-

12.

Ratio analysis-13.Questionnaire based survey to determine consumer perception of lal-

imli products-

14.Mundhra scam-

15.Reasons for the sickness of the mill-

16.Steps taken by the government-

17.What could have been?

18.References


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Introduction about the company-

Lal Imli is an acclaimed industry in the area of woollen it has a wide coverage over products.

It manufactures best quality worsted as well as pure woollens and their blends. It products

are suitings lohis blanket blazers shawls and many more with attractive design and varieties.

Origin and growth-

In 1876, five residents of Kanpur namely, Mr George Allen, Mr W.E. Cooper Bevan Petman,Dr Condon and Mr Gavin S. Jones erected a small mill for the manufacture, chiefly of army

blankets. The original plant appears to have consisted of cards and mules, followed by

handlooms in the weaving and power driven finishing plant. This company which was known

as The Woolen Mills Cawnpore continued until 1882, after which it was converted into a

public company with limited liability under the new Indian companies Act. The name of the

new company was THE CAWNPORE WOOLEN MILLS AND ARMY CLOTES

MANUFACTURING COMPANY LIMITED. a name which it continued till 1914, when

opportunity of a change in the capital structures of the company was taken to alter the

name to the Cawnpore Woollen Mills Co. Ltd.

During the years of the Limited companys existence the private company of Messrs,

Cooper, Allen & Co., under the guidance of Mr. William Cooper and Mr. George Allen acted

as managing Agents, but they resigned this position at the end of 1888 and thereafter the

company managed its own affairs under a board of Directors. The turning point in the

companys fortunes was the appointment, as Manager in1884, of Mr. A. Mac Robert who

afterwards became Sir Alexander Mac Robert, Bart, K.B.E, LL. D. who continued to direct the

affairs of the company until his death in 1922.

Throughout his management of the Cawnpore woolen mills there was a period of continued

expansion. To the original woolen plant was added a worsted plant in the late 1880s also afelt making plant and to absorb the excess worsted yarns which the plant was capable of

producing a Hosiery plant, and power Looms with a fully equipped finishing plant to follow

were gradually installed. The lines of development were thus laid down at a very early date

and expansion continued along these lines until the end of the First World War.

Thereafter, a gradual change in plant became necessary to meet the increased demand for

finer quality goods which had sprung up all over India and while limitations of space

precluded any large extension of building. It was possible to obtain greater efficiency by

regrouping of the plant and buildings which were then available.


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The company suffered a grave setback in 1310 when a serious fire broke out which

smouldered for several months. The damage was largely confined to the godowns

containing the companys manufactured goods and the bulk of its stock of raw materials but

fortunately the manufacturing plant was with the excerptor of some handlooms largely

untouched. The loss therefore although severe did not greatly affect the working of the

Mills, which was soon in a position again to enter the market.

During 1910 and 1911 a large rebuilding programmed had been taken in hand and this was

completed in 1912, and the buildings then erected contain the bulk of the Manufacturing

plant. In the tears 1914 -18, as during the whole of the present war, the entire productive

capacity of the Mills was placed at the disposal of Government., and was utilized under

orders issued by the government of India.

In the year 1920. The British India Corporation was established and registered as a limited

company, managed by a board of Directors. The corporation was formed with the specific

object of combining and amalgamating was under one board of directors, the followingbusiness with effect from fist of January 1920).

Cawnpore Woolen Mills Company Lal Imli, Kanpur (Est. in 1876)

Cooper Alien and Company Limited Kanpur (Estd. in 1881)

North west ternary Company Limited Kanpur (Estd. in 1881)

New Egerton tannery Co. Ltd Dhariwal Punjab (Estd. in 1882)

Cawnpore cotton mills Co. Ltd, KAKOMI, Kanpur (Estd. in 1883)

Empire Engineering Co. Ltd Kanpur (Estd. in 1884)

The fortunes of the company, and along with it, its unit Lal-Imli continued to score newheights under the British Regime. It was during the 2nd world war that mills were worked to

full capacity so as to fulfill the larger demand of woolen cloth for the British Armed forces

and this was probably the period when Lal-Imli achieved peak performance in terms of

production and capacity utilization, but by the time the war was over, the writing on the

wall was clear that sooner or later the British would have to leave India.

The then management thus lost interest in the progress and development of the woollen

units and all activities of expansion and updating of plant and machinery received a setback.

The Indian private management which took over from the Britishers also did not take any

effective measures towards restoring the mills to their normal health, the fortunes of theunits thus continued to waver

In 1956 when Sir Haridas Mundra was the Chairman of the company a scam involving the

issue of duplicate share certificates took place which snow- balled into a major national

issue. The scam took such proportions that it had effects on the government exchequer and

the then finance minister Sri T.T. Krishnamachari had to resign, over the issue. As a result of

the Mundra scam, the Board of directors of BIC was dissolved and a fresh Board of directors

was constituted by the high court of Allahabad. Sri H.S Chaturvedi Retd. Judge was

appointed as Chairman of BIC, and the Vice Chancellor of Banaras Hindu University became

the Vice Chairman.


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In 1961-62 the British India Corporation acquired M/a. Begg Sutherland and Co. by

purchasing shares of the company and thus took over the entire control and management

of the corporation. This corporation owned six companies viz.

1. The Elgin Mills Company, Limited, Kanpur.

2. Cownpore Textile Limited, Kanpur

3. Saran Engineering Company, Limited,

4. Brush ware Limited, Kanpur

5. Kanpur Sugar Works, Kanpur.

6. Chamapran Sugar Works.

During the 1970 the downward slide of the company continued and the mills started inching

towards sickness, by the year 1980 the mills were almost on the verge of closure. To avoid

such a disastrous end to the pioneers of the woollen industry, BIC was taken over by the

Govt. of India on 11th June 1981 by a special act of the parliament The British India

Corporation Ltd. (Acquisition of shares) Act, 1981.The private shares of the company wasthus acquired by the Govt. of India, the Govt. took corrective measures in the form of partial

doses of modernization to pull BIC out of doldrums, but the same proved ineffective.

The company continued to incur losses especially because the modalities of nationalization

did not address the issue of old liabilities which continued to exist. Even the loans taken by

the private management prior to nationalization continued to get compounded resulting in

massive accrual of liabilities. The rate at which such liabilities continued to grow was

definitely much higher than the companys activities.

As the company continued to incur losses, it was referred to the Board for industrial andfinancial reconstruction (BIFR) on 31st March, 1991 under the provisions of S.I.C.A the BIFR

declared the company sick.

Products of lal imli-

Various products manufactured in Lal Imli are:

Lohis

Shawls

Blankets

Suitings

Trouserings

Blazer Cloth

Tweed

Uniform Cloth

A Brief description of these are enumerated as follows:-

LOHIS:

Toosh (White)

Lohi No. 60 (Grey)

SHAWL:


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Pashmina-pure wool, plain and of solid colour

BLANKETS:

Premier-reversible

Meghdoot-blend of wool and viscose

SUITINGS:

Pure wool and poly wool (PW)

Tweeds (PWV)

TROUSERINGS:

MW-221 (pure wool, worsted hosiery)

TS-3349 (blended)

UNIFORM CLOTH:

Angola Shirting (AD 3270)

Surge battle race coats

Bharathea

PROCESS CHART

1) Merino greasy wool

2) Scouring

3) Drying

4) Carding

5) First

6) combing(Purchased) [purchase top from other factories like bhilwara, ashik ali wool

mill Ahmedabad etc. nowadays]

7) Dye ring

8)

Drying9) Shade Matching

10)Gilling

11)Combing

12)gilling

13)Roving

14)Ring frame

15)Autoconer

16)Parallel Winding

17)Twisting

18)Ready Yarn

19)

Yarn Stores

20)Weaving

21)Fabric(Grey)

22)Roll

23)Godown

24)Scouring

25)Vanishing

26)Parching

27)Ware House

28)Packing

29)

Delivery (to the parties, merchant, defense. Railway, police.)


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Introduction to the departments

French combing department-

French combing is an example of linear combing. The process of combing is

accompanied by gilling- a process of evening out carded or combed top making it

suitable for spinning

French combed wool is the wool having a staple length intermediate between that of

clothing and combing wool.

If the required fabric Is top dyed then the 1st

combed top is send to dyeing

department, shade matching, dyed polyester/wool top is dried. The dyed wool tops

(polyester/viscose) are kept in the lots if required blend and shade.

Reconbing- polyester/wool/viscose top received from shade matching is subjected to

recombing process which comprises of-

A) Gillingthe main objective of gilling is mixing / homogenisation and parallelisation

and attenuation of the sliver.

Strong gill box

Old gill box

NSC gill box

Textima gill box

NSC gill box

B) Combing- the material is again passed on combers to remove short fibres generated

during dyeing. Antistatic agent is also added about 0.6to 0.7%.

C) Gilling- combed sliver is once again subjected to gilling procedure to finally get the

recombed top of required weight/metre

NSC gill box

Textima gill box

NSC gill box

Finishing department-

In milling process there is a slight shrinkage both warp way as well as weft way. In this

process the width of the cloth has to be controlled as per the requirements.

After the process of milling a light scouring is again given to the piece at pH of 5.5 to 6.5 and

piece dried in the tenter machine. After drying woollen pieces example- blankets are raised

before sending them on to the finishing department, worsted 100%wool piece are sentdirectly to the dry finishing department


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Every wool piece where percentage of terylene is 30% or over are heat set then singed using

petrol flame of approximate 2 to3.5 cm length fibre with the piece moving at the speed at

60 meter per minute approximate both the size of the cloth are singed after singing the light

wash is given after which it is fried and autotentered where sometime a chemical finish may

also be applied after which the piece is send forward to the dry finishing department

In the dry finishing department the cloth passes through various stages of process

depending in the type of cloth weather woollen or worsted or 100% wool or blended with

other synthetic fibres

The process generally used in this departments

1) Picking

2) Brushing

3) Cropping

4) Blowing

5)

Rotary press6) Kier decasting finish

7) Kier decasting finish

8) Hydraulic press

9) Perching

10)Measuring

After going through the required process the pieces are finally sent to the warehouse

ready to be packed in the packing department and then despatched to the merchants

and other parties

MachinesMilling- 2machines

Scouring- 3 machines

Raising- 2 machines (automatic and semi-automatic)

Automatic- takado iron work Ltd. wakayama 1963

Semi-automatic- tomlinsons patent N0433409 tomlinsons (RD chadale) Ltd. England

Tenter- 2 machines

1)

Automatic

2) E Gordon whitely patente & maker marley leeds England

Woollen carding and spinning department-

Wool is a type of material fibre also called protein fibre.

Australia is the worlds largest producer of the imported fine wool followed by

Africa.

Australia produces good quality, but Russia also produces wool in great quality but

the best wool is of Australian sheep called merino wool. This wool is very soft.

Mainly there are 3 types of wool.

i.

Sheared wool- it is obtained generally twice a year


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ii. Pulled wool- it is obtained by pulling the fibres from the slam of dead sheep

iii. Tanned wool- it is obtained from skin, is subject to processing which causes the fibre

to resist dyeing. The tanned wool is therefore inferior to even pulled wool.

In a woollen system of spinning a combination of short and long fibres is run together on

blended machine carding and ring frames to spin the yarn of required count.

Some important products manufactured on woollen system

Blazer BC 95

Premier blanket

Meghdoot

Lama

Sathi

Cg379

Barrack

Process chart for BC 95 blazer for 64s clothing

For 64s clothing

Direct blending- oiled blending 6% unipro(wool batching oil) in the ratio of 1:6 with

water

Opening of wool fibres

Carding-separation and parallelisation of fibres, removal of external impurities inwool fibres, then required TPI and count is given to the carded sliver to go to the ring

frame

Ring framefinal yarn is produced here

Winding is done to form packasges

Hard waste blending is done that is waste from different sources is collected and subjected

to garneting

Hard waste- waste generated from spun yarn and onwards.

Soft waste- worsted and woollen waste generated during combing, carding is subjected to

willow machine for rag tearing

Garneting- a technique for opening up hard and soft waste textile products with aa view to

recycling them

The following blend of different waste is subjected to blending

30%willowed card waste

30% worsted hard waste

10% woollen hard waste

20% woollen & worsted rag


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10% nylon

In woollen system department there are 3 opening machines, 6 carding machines and 16

ring frames for producing woollen yarns.

Worsted spinning department-

In a worsted system a fine fibre of required count is manufactured using combed yarn, at

present important sorts produced on this system are lohi No.60, gold mine, pure wool

suiting, pure wool worsted (MW221) suiting, viscose wool uniform cloth, serge battle

dress(CG 233) and many others. The following process sequence is followed for

manufacturing a worsted fabric.

Greasy wool-> scouring-> drying-> carding-> 1st

combing-> dyeing-> Drying-> shade

matching-> gilling-> combing-> gilling-> roving frame-> ring frame-> yarn package.

Worsted spinning-

Recombed top is subjected to following procedures->

Drawing/gilling- at this stage fibre uniformly is further improved and further parallelisation

of fibres is achieved for this the material is passed through a set of gill boxes/drawing

machines

Gill box No. 1- antistatic spray is used, speed is around 100-120 m/min

Gill box No.2- autoleveler is installed to give more uniform feed and better and uniform

gilling but not at gill box No.1 because that will hamper productivity.

Gill box No. 3 and gill box No.4 are on chain which is good for only pure wool and they are

intersecting as well.

The different stages provide uniformity to the sliver.

Attenuation /drafting is provided to reduce the sliver weight as per count requirement.

Roving frame-

Basic objective of roving is to provide draft to the sliver, this is to minimise higher drafting at

spinning stage small amount of twist is also provided to give the additional strength to the

roving. At this stage roving is converted into the yarn of required TPI and count.

1. Creel

2. Drafting zone

a. Top roller

b. Bottom roller

c. Middle roller

d. Apron

e. Spacer

3. Spindle

4. Ring

5.

Traveller


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6. Separator

7. Drum pulley

8. Spindle break

9. Rockey pulley

10.Spindle tape

11.

Particulars of ring frame-

12.Model no.- Mei super spinner, spindle-436

13.Spindle speed-6500rpm

14.Roller combination- 3 over 3

15.Middle to back- 85 mm

16.Diameter of roller- front roller 45mm middle roller 30 mm back roller 35 mm

17.Lift-10 inches

18.Ring dia.- 2 inches

19.Roller load(pressure)- front 35 kgs middle 12kgs back 20 kgs

20.Relative humidity- 65%

21.

Autoconer/winding

Quality control department-

Quality control is the "Barometer" of the industry or in other words it is "Eyes of the mill". It

keeps check on quality from raw material to the finished product. Quality control can be

broadly classified into the following stages:-

Top Stage

Slubs: The slubs are examined very carefully and only 1 slub is allowed in wool viscose or

polyester of yard length.

Neps: Material sd. be carefully analysed for neps in 1 yearn length of material. The

maximum of neps are allowed are:-

Wool - 5

Viscose - 7

Polyester - 31

Pin-points

These are very minute so care should be taken while examining it. Permissive numbers in 1

yard are

Wool - 30

Viscose - 10

Polyester - 10

Entanglements

These are also checked by visually examining & its permissive number is 3 for wool, viscose

as well as polyester in 1 yard of length.


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Sliver weightt:

It is done simply by measuring 1 yard of sliver & weighting it.

Moisture Contents & Regain

Previously moisture analyser was used in Lal Imli but now a days it is done by putting the

sample in oven and taking its wt. immediately before & putting it in oven. Moisture content

can be calculated from the following formula:

Moisture Content M = (wt. of water/total wt. of the material) x 100

Moisture regain R = (wt. of water/oven dry wt. of the material) x 100

Composition

It is mainly done for the doing of blend. It can be understood from the following chart:-

Sample (2-4 gm)

Wool

2.5% HaoH, boiling for 15 mts.

NYLONHCOOH formic acid at room temperature

VISCOSE

59% H2 SO4

COTTON

70% H2 SO4

POLYSTER

Phenol (Heating)

Fastness test

It is of 3 types.

a) Washing Fastness:

0.5% soap solution (non-ionic detergents for wool) is prepared and heated at 50- 55C, the

sample is then kept in this solution for 45 minutes. Its equipment is called as "Wash-Wheel".

Another detergent and lissapol-100 x (liquid) and sodium oblate (powder form). After that

sample is compared with the previous sample and following things are noted:-

(i) Change in solution

(ii) Change in yarn

(iii) Change in wool

(iv) Change in colour& appropriate rating is given to it.

b) Water Fastness: The sample is kept in distilled water for 4 hours after that it is taken out

dried and change in sample is noted.

c) Light Fastness: In testing of light fastness sample is half covered and half open and kept

under sunlight for one week after that it is compared with grey scale and appropriate rating

is given.

Fibre Fineness


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1. Lana meter: It is somewhat like a microscope. The Fibres are placed between two slides

and put under this instrument, number of Fibres is counted 400 times and then average is

calculated.

2. Airflow Method:1 gram of wool is kept in porous cylinder and switched on. The rise in

pressure is noted with respect to liquid (Hg). Reading of rise of liquid is compared with

graph & then its quality is determined by measuring the fineness.

Yarn Stage:

A) Count:It is determined in woollen specially by quadrant balance in which yarn sample is

taken and hanged into hook and then reading of pointer is noted down which denotes the

count of the yearn. Formula = (Length (m) x 453.6)/(weight (gm) x 560)

B) TOI:It is tested by tension type twist tester. It is threaded by the yarn. Dial is set to zero

reading. Then reading of dial is taken. When it gets untwisted which may be checked byinserting a needle in the yarn. The reading denotes the TPI of that yarn.

C) Breaking Strength & Elongation: It is tested by breaking strength tester machine. In it the

yarn is clamped and machine is started. Vertical scale reading given elongation which is

noted down. Quadrant scale is used to measure the breaking strength.

D) Composition:The test for this is carried in the same way as in tops.

Fabric Stage:

A) Abrasion testing machineB) Breaking strength testing machine

1. Horizontal

2. Vertical

C) Composition

D) Pilling tester machine

A. Abrasion Testing Machine:The sample cloth is fabricated on the upper and lower clamp.

3000 to 4000 revolutions is given and after that condition of the sample is noted.

B. Breaking Strength Testing Machine: Two types of B.S. testing machine are used. VerticalB.S.testing machine is used mainly for suiting fabrics. The sample fabric of 15 cm width is

taken. While horizontal B. S. testing machine is used for testing of army clothes and samples

should be of 20 cm

C. Composition:It is also done in the same way as in tops.

D. Pilling tester machine:It is used for testing of balls on surface of fabric. The machine has

rough surface. The sample is kept in it and particular amount of revolution is given and

number of balls is noted

Sulzer weaving department-


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Weaving is the process of interlacement of warp and weft threads which are perpendicular

to each other. Weaving is done on a machine called as loom. Three types of looms are used

in Lal Imli.

(i) Handloom

(ii) Power loom

(iii) Sulzer

Handlooms are operated manually by workers (weavers), Power loom are driven by power

while sulzer is a projectile loom i.e., a projectile is used to insert the weft. Sulzer is

automatic high speed loom. Every loom has three basic operations:

(i) Shedding

(ii) Picking and

(iii) Beating

Weave designs has an important role in enhancing the attractiveness of the fabric. Some

basic weaves are:-

(i) Plain weave.

Repeat = 4

Interlacement= 4

Float = R/I = 4/4 = 1

(ii) 2/2 it will weaver:R = 4

I = 2

F = R/2 = 4/2 = 2

(iii) 2/1 it will weave:

R = 3

I = 2

F = R/I = 3/2 = 1.5

(iv) Basket weave:R = 4

I = 2

F = R/I = 4/2 = 2

(v) Sateen Weave:

R = 5

I = 2

F = R/I =5/2 = 2.5

Cloth Setting: D x F/ F + ID = Diameter


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F = Float

There are 18 sulzer projectile looms in lal-imli out of which 12 are on dobby and 6 are on

tappet system.

Dye house-

Here dyeing of tops and fabrics of various materials are done.

(i) Long close machine: used for dyeing of wool tops.

(ii) High temperature high pressure machine: used for dyeing of polyester fabrics.

(iii) Winch machine:for fabric dyeing.

(iv) Jigger machine:For dyeing of polyester-viscose blends.

(v) Beam dyeing machine: It is used for dyeing of fabric in the form of beam in a closed

vessel.

(vi) Peg machine: It is used for dyeing of loose and short Fibres.(vii) Hydro machine: used for extraction of water.

(viii) Radiation Dryer machine is used for drying of dyed materials.

Mixing house-

In this department blending and mixing is done. It is done exclusively for woollens. Two

plants known as teaser machine are used for feeding in to the hopper and collected at last.

A wool batching oil known as unipro-38 used to prevent dryness and breakage of fires. The

main object of this is to mix the different waste thoroughly and uniformly.

Various raw material coming to lal-iimli are-

1. Wool

a. Worsted(64s and 56s quality)

b. Woollen

2. Polyester

3. Viscose

4. Nylon

COMBING DEPARTMENT-

Objects of Comber:

1. To remove the short fibres below a pre-selected length so that the spinner enable to

produce finer or better quality of yarn that cannot be possible in carding state.

2. Elimination of remaining impurities.

3. Elimination of large proportion (not all) of the neps in the fibre.

4. Formation of sliver having maximum possible evenness.

5. To straighten the fibres.

Contribution of Comber to Yarn Quality:

1. To improve the uniformity and strength

2. Improve the spinning value of fibre.


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3. Reduce the neps in the yarn.

4. Improve smoothness and luster of yarn.

5. Produce much clear yarn.

6. Improve the efficiency of the next process.

7. Reduce the hairiness of the yarn.

8. Improve better twist distribution in the yarn.

The French combing process involves 5 passages gilling process, combing process,

prefinishing process and finishing process

The comber mainly straightens out the leading hooks. Thats why leading hook must be

presented to the comber. Reversal of the hook occurs at each processing stage between the

card and gilling/drawing and comber. Therefore, definite number of machine passages is

required in intervening stages. In the case of cotton fibres percentage of leading hooks is

more so an even number of passages is required, but in the case of wool the percentage of

trailing hooks is more so odd passages is required that is why there are 5 gilling passages.

1st

passage gilling machine:

Name of the machine- strong gill

Input feed load- 12 ends X 20 gm/m = 240 gm/m

Actual draft- 6

Output sliver weight- 40 gm/m (for 64T40 barathea fabric) 36gm/m (for 56s drab

mxture)

Pitch of faller screw- 19 mm

Delivery speed- 40 m/min for both the fabrics

Faller drop- 350 per min

Faller pins- 10-1-3/4

2nd


Name of the machine- old gill


Actual draft- 6.7


mixture)

No. of faller screw- 42


Delivery speed- 64 m/min (for 64T40 barathea fabric) 72 m/min (for 56s drab

mixture)



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Faller pins- 15-1-5/8

3rd


2 single coiler machines

Name of the machine- NSC gill box GN-5


Actual draft- 6

Draft range- 5.2 to 15

Output sliver weight- 30 gm/m (for 64T40 barathea fabric) 32gm/m(for 56s drab

mixture)

Maximum speed- 300 m/min

Ratch- 35-45 mm

Pressure over top

Front roller- 250-300 kg/cm2



Delivery speed- 103 m/min (for 64T40 barathea fabric) 103m/min (for 56s drab

mixture)


Faller pins- 16-1 (round) X 3.5 pins/cm

4th

gilling passage:

Name of the machine- textima gill


Actual draft- 6

Draft range- 3.6 to 11.75

Output sliver weight- 30 gm/m (for 64T40 barathea fabric) 32gm/m(for 56s drab

mixture)


Ratch- 35-45 mm


Delivery speed- 110 m/min (for 64T40 barathea fabric) 100-110 m/min (for 56s

drab mixture)

Faller pins- 16-1(round) X 3.5 pins/cm


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5th

gilling passage:

Name of the machine- NSC gill box GN-5 (bicoiler)


Actual draft- 6

Output sliver weight- 30 gm/m {15 X 2} (for 64T40 barathea fabric) 30gm/m(for 56s

drab mixture)



mixture)

Faller pins- 15 X 21 X 1 (flat), 5 pins/cm

Combing machine:

12 combing machines

Name of the machine- NSC combs PB-28LC


Output sliver weight- 18 gm/m

Actual draft- 15

Nip distance- 28-30 mm

Pin density of the top comb- 28 pins/cm

Pin density of circular comb- 6-32 pins/cm

Distance between circular

Brush and circular can- 2 mm

Setting between circular

Brush and doffer- 0.2 mm

Setting between upper

Nipper jaw and circular

Comb- 0.2, 0.4, 0.6, 0.8 & 1 mm

Setting of lower nipper- proper

Setting between doffing

Knife and doffer- 0.2 mm

Setting between feed combs


22/51


And its fulcrum- 0.5 mm

Ratchet used- 18

Nip length- 5.4 mm for 64T40 barathea and 5.8 mm for 56s drab mixture

Position feed grid- 4mm play between feed comb and upper nipper jaw

Basic operations that the comber does are-

1. Lap feeding by feed roller

2. Lap nipping by the nipper

3. Combing by the cylinder

4. Nipper opening and forwarding

5. Detaching roller backward movement

6. Piecing

7. Combing by the top comb

8. Detaching roller forward movement

9. Starting a new cycle

10. Cleaning of cylinder comb

Prefinisher gilling passage:


Input feed load- 144 gm/m (8 ends X 18)

Draft- 8

Output sliver weight- 18 gm/m for both the fabrics

Pins used- 15 X 21 X 1 (flat pins)

Pin density- 5 pins/cm

Rest parameters are same as in NSC GN-5 in precombing

Delivery rate- 137 m/min for both the fabrics

Finisher gilling passage:



Actual draft- 8

Draft range- 5.2 to 15


mxture)



23/51


Ratch- 35-45 mm

Pressure over top

Front roller- 250-300 kg/cm2




mxture)


Faller pins- 16 X 22 X 1 (flat) X 6 pins/cm

From 1stpassage to finishing-

Number of faller have increased so that sufficient amount of straightening at each

stage

Fallers drop per minute has increased so that intensity of opening increases

Delivery rate has increased means better gilling att each stage

The undesirable bending of the fibre ends produces fibre hook. It is the disadvantages of

web formation at the card. Hook fibres effectively convert longer fibre to short fibres and

these cannot be permitted in the yarn. They must therefore be removed before yarn

formation. This can be done either by drafting at draw frame or combing at comber.

Basic faults-

a) Cutting across: Thick and thin places across the width of th web.

Causes:

The fault originates in the laps owing to the use of incorrect setting, excessive draft

at the lap former.

Incorrect timing of the detaching roller.

Top comb setting too deeply.

b) Curling: The term is applied when a group of fibres curls as they leave detaching roller.Causes:

Faulty detaching roller covering.

Dirt in the top detaching rollers.

Excessive brush speed.

Bent needle of cylinder and top comb.

c) Detaching roller lapping:

Causes:

Incorrect atmospheric condition.

Oil on rollers Sticky matter or dirt on rollers


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25/51


Check whether delivery sliver stop motion working

Check condition and position of pressure over top rubber roller

Position of sliver guide (front and back)

Checking of batching oil or antistatic agent treatment

General-

Check whether housekeeping is proper or not

Check if any broken part or missing part found

Ensure cleanliness of cans if there is any sliver waste at the bottom

Check whether delivery rate is at desired level

Check if proper intensity of light over machine Is available or not

Check whether suction is proper, chamber of back noil is clean

Check condition of top combs, circular combs

WORSTED SOPINNING DEPARTMENT-

Approximately 4-5 years back when lal-imli was running in its full swing many products were

spun in the worsted spinning department, these are-

QUALITY/SORT count in

Nm

production

(Kg)

Royal touch MW-6107 2/50 78All wool toosh lohi

4299

2/50 102

All wool pashmina 2/50 79

all wool loho No.60 2/45 147

all wool kashmiri 2/45 117

all wool tweed 2/27 138

serge battle dress 2/18 286

terry wool suiting

6099

2/54 142

terrry wool suiting6040

2/54 64

polywool bharaathea 2/36 97

wool viscose trosg 2/38 89

angola suiting 2/38 96

For gill box No.1 we assume the percentage wastage from this gill box to the final product

would be around 7%


26/51


Also percentage efficiency calculated for this gill box came out to be 65%, using this data we

can calculate the percentage machine utilization

QUALITY/SORT REQUIRED OUTPUT FROM GILL

BOX NO.1

NUMBER OF HEADS

REQUIRED

ROYAL TOUCH MW-6107 83.6 0.107

ALL WOOL TOOSH

LOHI 4299

109.7 0.141

ALL WOOL PASHMINA 84.9 0.108

ALL WOOL LOHO

NO.60

158.6 0.203

ALL WOOL KASHMIRI 125.8 0.161

ALL WOOL TWEED 148.4 0.19

SERGE BATTLE DRESS 307.5 0.394

TERRY WOOL SUITING

6099

152.7 0.163

TERRRY WOOL

SUITING 6040

69 0.074

POLYWOOL

BHARAATHEA

104.3 0.133

WOOL VISCOSE TROSG 95.7 0.102

ANGOLA SUITING 103.2 0.132

Total number of heads= 2.20

Number of heads available= 3

Utilization = Total number of heads/ Number of heads available X 100 = 2.20/3 X 100

Utilization = 73.5%

Similarly for the second gill box

Machine efficiency calculated is = 68%

Wastage percentage is = 7%


BOX NO.2

NUMBER OF HEADS

REQUIRED

ROYAL TOUCH MW-6107

83.6 0.116

ALL WOOL TOOSH

LOHI 4299

109.7 0.152


ALL WOOL LOHO

NO.60

158.6 0.22




TERRY WOOL SUITING

6099

152.7 0.212


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TERRRY WOOL

SUITING 6040

69 0.096

POLYWOOL

BHARAATHEA

104.3 0.145


ANGOLA SUITING 103.2 0.143Total number of heads= 2.144

Number of heads available= 3

Utilization = Total number of heads/ Number of heads available X 100 = 2.144/3 X

100

Utilization = 71.4%

For the 3rd

gilling passage

Calculated machine efficiency = 70.5 %

Wastage percentage = 7 %


BOX NO.3

NUMBER OF HEADS

REQUIRED

ROYAL TOUCH MW-

6107

83.6 0.105

ALL WOOL TOOSH

LOHI 4299

109.7 0.136


ALL WOOL LOHONO.60

158.6 0.196




TERRY WOOL SUITING

6099

152.7 0.189

TERRRY WOOL

SUITING 6040

69 0.085

POLYWOOL

BHARAATHEA

104.3 0.129


ANGOLA SUITING 103.2 0.128

Total number of heads= 1.909

Number of heads available= 3 (2 heads

per machine)

Utilization = Total number of heads/ Number of heads available X 100 = 1.909/3 X

100

Utilization = 63.6 %


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Total number of heads = 378.37Number of shifts = 3

Number of spindles available = 128

Machine utilisation = (387.37/3)/128 = 126.123/128 = 0.9853

Percentage machine utilisation = 98.53 %

Machine utilisation for ring spinning-

Percentage wastage from ring spun yarn to final product = 2%

Spindle speed of ring frame is 7000 rpm

FRAME

YAL TOUCH MW-

7

82.2 34.55 0.4 65 2.89 28.44

WOOL TOOSH

HI 4299

107.4 34.55 0.4 67 2.97 36.16

WOOL

SHMINA

83.2 34.55 0.4 66 2.93 28.39

WOOL LOHO

.60

154.8 34.29 0.5 65 3.63 42.64

WOOL

SHMIRI

123.2 34.29 0.5 64 3.58 34.41

WOOL TWEED 145.4 21.58 0.8 66 9.39 15.48

RGE BATTLE

ESS

301.2 19.3 1 68 13.52 22.27

RRY WOOL

TING 6099

260.1 34.55 0.4 62 2.75 94.58

RRRY WOOL

TING 6040

67.4 34.55 0.4 63 2.8 24.07

LYWOOL

ARAATHEA

102.2 26 0.6 62 5.49 18.61

OOL VISCOSE

OSG

93.8 26 0.6 65 5.76 16.28

GOLA SUITING 101.1 26 0.6 67 5.93 17.04

ALITY/SORT REQUIRED

OUTPUT FROM

RING FRAME

T.P.M.

REQUIRED FOR

RING

YARN

WEIGHT

GM/M

EFFICIENCY

%

ACTUAL

PRODUCTION

NUMBER OF

HEADS REQUIRED

YAL TOUCH MW-

7

79.6 727.55 0.02 80 0.074 1075.6

WOOL TOOSH

HI 4299

104 650.39 0.02 82 0.084 1238

WOOL PASHMINA 80.6 650.39 0.02 80 0.082 982.9

WOOL LOHO

60

150 629.13 0.022 77 0.09 1666.6

WOOL KASHMIRI 119.3 629.13 0.022 83 0.097 1229.8


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Total number of heads = 13323.5

Number of shifts = 3

Number of spindles available =

14400

Machine utilisation = 13323.5/14400 = 0.925


Machine utilisation for autowinding-

Percentage wastage from yarn produced by this machine to final product = 1 %

Drum speed is = 800 m/min

WOOL TWEED 140.8 440.15 0.037 82 0.231 609.5

GE BATTLE DRESS 291.7 453.14 0.055 75 0.305 956.4

RY WOOL SUITING

9

144.8 729.52 0.018 77 0.063 2298.4

RRY WOOL

TING 6040

65.4 729.52 0.018 79 0.065 1006.1

LYWOOL

ARAATHEA

98.9 572.83 0.027 83 0.131 754.9

OL VISCOSE TROSG 90.8 570.86 0.026 84 0.128 709.4

GOLA SUITING 97.9 570.86 0.026 81 0.123 795.9

ALITY/SORT REQUIRED

OUTPUT

FROM RING

FRAME

YARN

WEIGHT

GM/M

EFFICIENCY

%

ACTUAL

PRODUCTION

NUMBER OF HEADS

REQUIRED

YAL TOUCH MW-

7

78.8 0.02 45 3.45 22.884

WOOL TOOSH

HI 4299

103 0.02 46 3.53 29.17

WOOL PASHMINA 79.8 0.02 47 3.6 22.16

WOOL LOHO

60

148.5 0.022 43 3.63 40.9

WOOL KASHMIRI 118.1 0.022 42 3.54 33.36

WOOL TWEED 139.4 0.037 40 5.68 24.54

GE BATTLE DRESS 288.8 0.055 46 9.71 29.74

RY WOOL SUITING 143.4 0.018 47 3.24 44.25


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Machine utilisation for textool doubling machine-

Percentage wastage from yarn produced from this stage to the final yarn = 0.5 %

Drum speed = 400 m/min

QUALITY/SORT REQUIREDOUTPUT

FROM RING

FRAME

YARNWEIGHT

GM/M

EFFICIENCY%

ACTUALPRODUCTION

NUMBER OFHEADS

REQUIRED

ROYAL TOUCH MW-

6107

78.4 0.04 70 5.37 14.59

ALL WOOL TOOSH

LOHI 4299

102.5 0.04 72 5.52 18.56

ALL WOOL PASHMINA 79.4 0.04 73 5.6 14.17

ALL WOOL LOHO

NO.60

147.7 0.044 75 6.336 23.31

ALL WOOL KASHMIRI 117.6 0.044 68 5.74 20.48

ALL WOOL TWEED 138.7 0.074 69 9.8 14.15

SERGE BATTLE DRESS 287.4 0.11 65 13.72 20.94

TERRY WOOL SUITING

6099

142.7 0.036 66 4.56 31.29

TERRRY WOOL

SUITING 6040

64.3 0.036 73 5.04 12.75

POLYWOOL

BHARAATHEA

97.5 0.054 70 7.25 13.44

WOOL VISCOSE TROSG 89.4 0.052 71 7.08 12.62

ANGOLA SUITING 96.5 0.052 70 7.68 12.56

9

RRY WOOL

TING 6040

64.6 0.018 43 2.97 21.75

LYWOOL

ARAATHEA

98.9 0.027 45 4.66 21.22

OL VISCOSE TROSG 89.9 0.026 42 4.19 21.45GOLA SUITING 96.9 0.026 46 4.59 21.11


32/51







Machine utilisation for TFO machine-

Since this is the final product therefore there is assumed to be no wastage

Spindle speed is = 13000 rpm






The overall utilization of the spinning department can be found out by multiplying number

of machines with its utilization and then adding all these terms and then divide it by total

machines in the department, that is-

QUALITY/SORT REQUIRED

OUTPUT

FROM RING

FRAME

T.P.M.

REQUIRED

FOR RING

YARN

WEIGHT

GM/M

EFFICIENCY

%

ACTUAL

PRODUCTION

NUMBER OF

HEADS

REQUIRED

ROYAL TOUCH MW-6107

78 727.55 0.04 80 0.274 284.67

ALL WOOL TOOSH

LOHI 4299

102 650.39 0.04 81 0.31 329.03

ALL WOOL PASHMINA 79 650.39 0.04 82 0.314 251.59

ALL WOOL LOHO

NO.60

147 629.13 0.044 85 0.37 397.3

ALL WOOL KASHMIRI 117 629.13 0.044 76 0.331 353.47

ALL WOOL TWEED 138 440.15 0.074 83 0.87 158.62

SERGE BATTLE DRESS 286 453.14 0.11 82 1.24 230.64

TERRY WOOL SUITING

6099

142 729.52 0.036 81 0.249 570.28

TERRRY WOOL

SUITING 6040

64 729.52 0.036 77 0.237 270.04

POLYWOOL

BHARAATHEA

97 572.83 0.054 78 0.458 211.79

WOOL VISCOSE TROSG 89 570.86 0.052 74 0.42 211.9

ANGOLA SUITING 96 570.86 Jan-00 76 0.431 222.73


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Total utilization = [73.5 X 1 + 71.4 X 1 + 63.6 X 1 + 53.8 X 1 + 98.53 X 3 + 92.5 X 12 + 73.8 X 4

+ 58.01 X 1 + 69.19 X 12] / 36 = 79.20

TOTAL YTILIZATION = 79.20 %

WEAVING DEPARTMENT-

When yarn packages arrive in weaving department it is first checked that the quality of yarn

packages is good and fulfils the requirements, it is then send for

Sectioning

Warping

Healding in the heald eyes for selvedge, main body and the monogram (according to

the design to be produced)

Load the beam on the loom

Beam gatting

1st

pick inserted

Machine cleaning, maintenance, oiling, greasing

Check machine if heald frame is in jack, reed is tight

Small amount is produced

Patron checking- to check in every heald if the pattern is correct or not

To check PPI, EPI, plan checking

To produce the fabric

Insertion cycle of the projectile machine-

a) The projectile is put in launching position, the weft is hold at its end by the weft carrier

and is controlled by the weft tensioner, by the weft brake and by the eyelet situated in

proximity of the feeding bobbin.

b) The weft carrier gets open after the projectile clamp has got hold of the end of the weftthread.

c) The projectile is launched and crosses the shed dragging with itself the weft, while the

weft tensioner and the weft brake operate in a way as to minimize the stress on the yarn

(the critical phases are particularly the initial acceleration phase and the final stop phase in

the collector box).

d) The projectile on the one hand and the weft carrier on the other take up the right

position to build up the selvedge, while the tensioner arm opens to adjust the weft tension.


34/51


e) The weft carrier closes while the selvedge clamps get hold of the weft thread on both

sides and the projectile clamp is opened to release the weft end.

f) The thread is cut by the scissors on the launching side, while the projectile is placed in thetransport chain. Loading of the torsion bar:

a) Torsion bar in rest, knee-joint lever in articulate position.

b) Loading phase.

c) Torsion bar in tension and knee joint lever in stable position, before the launching

control by roller.

g) The weft is beaten by the reed, while the weft carrier moves back to its initial position

and the weft tensioner opens further to recover the thread piece and to keep it under

tension. The projectile is brought back to the launching zone.

h) The selvedge needles insert the weft ends into the subsequent shed (tuck-in selvedge),

while a new projectile is placed in launching position.

Parts of picking mechanism in sulzer projectile loom-

1. Torsion bar: it has splinted ends as seen in the fig one end is secured firmly at theclamping flange with provision for adjusting twisting angle. The twisting length of the

torsion is 721 mm. Its diameter is 17 mm. Larger the diameter higher the

initial projectile speed. The angular twisting of torsion bar at commencement of picking is

28-30O.

2. Picking shaft: The free end of the torsion bar is linked with the picking shaft through

spines.

3. Picking lever: The picking lever is clamped on the picking shaft.

4. Picking shoe: The picking lever carries the picking shoe at its top end.

5. Picking shaft lever: It is a rigid part of the picking shaft.

6. Toggle plates: The toggle plates carry a roller and connected to the picking shaft lever

through a link. They are covered at the bottom.

7. Picking cam: It is mounted on a shaft and rotated by bevel wheels once every pick. It

rotates in the clockwise direction. It carries a roller after the nose part.

8. Oil break: The shock of the picking is taken by the oil break.


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Light signals-

Blue light blinking- warp thread breakage.

Yellow light blinking- weft thread breakage, shut down via switch-off button 6.

Yellow and red light blinking- shut down via emergency switch 8.

Yellow light- specified length of fabric attained.

Red light blinking- mechanical fault (annunciator for foreman).

Red light blinks when machine is in operation- electronic projectile detector or weft

detector shut off

Machine does not start up-

This is probably because of the following reasons-

Signal lamps do not light up- Main switch 4 switched off. Attention: make sure thatservice personnel is not working on the machine

All three signal lamps blinking-

Red and yellow signal lamps blinking-

Red signal lamp blinking-Shed levelling device in working position, turn hand wheel

until stop motion engages level shaft or hand wheel of pick finding device in working

position.

Mechanical or electronic fault

Changing the speed of the machine-

Each v belt is provided with seven spacing discs having a thickness of 1 mm and two spacing

discs with a thickness of 0.5 mm.

The speed can be increased (or reduced in reverse order) by removing spacing discs from

the v belt guide and inserting them on the rear side of the end discs.

The number and thickness of the spacing discs are to be the same in each of the four v belt

guides likewise the number and thickness are to be the same on the rear of the end discs.

The difference in speed resulting from the displacement of a spacing disc.


36/51


Production data for few years in weaving department-

YEAR Production of cloth

in meters

Value of produced

cloth in INR

Utilization of the

machinery %

2005-06 465000 114567000 27.11

2006-07 249000 47207000 27.10

2007-08 52000 9700000 13.72

2008-09 24000 4280000 4.99

2009-10 42000 8800000 4.06

2010-11 6000 869000 1.01

2011-12 17000 4051000 1.85

2012-13 20000 6400000 1.65

2013-14 21000 6700000 1.70

As it is clear that the production in this department has been declining drastically mainly

because of absence of raw material due to less demand in the market, but still the

machinery present in this department is in the working condition.


37/51


THE BRITISH INDIA CORPORATION was registered as a Limited Company on the 24thFebruary, 1920. It was founded by the late Sir Alexander Mac Robert. The corporation was

formed with the specific object of combining and amalgamating, under one Board of

Directors, the following business with effect from the 1st

of January, 1920. CAWNPORE

WOOLLEN MILLS CO. manufacturers of the well-known "LALIMLI" brand of all- wool, pure

wool materials - Kanpur (Established in 1876).

COOPER ALLEN & CO. Ltd. proprietors of the largest Army Boot and Equipment Factory in

the worldKanpur (Established in 1881)

NORTH West Tannery Co. Ltd., Proprietors of the largest and the most up-to date

Tannery in the EastKanpur (Established in 1881).

NEW EGERTON WOOLLEN MILLS CO. Ltd., Sole manufacturers of the celebrated

"DHARIWAL" long life wool wearDhariwal, Punjab. (Established in 1882).

CAWNPORE COTTON MILLS CO. Ltd., Sole manufacturers of the unsurpassed "KAKOMI"

Cotton Yarns and FabricsKanpur (Established in 1882).

Empire Engineering Co. Ltd., Civil, Mechanical, Motor and Constructional Engineers,

Contractors and BuildersKanpur (Established in 1894).

Over the years four of the above companies have shut down their businesses and are nolonger in existence. Only two of the business units are in existence and are running as on

date viz., Cawnpore Woollen Mills Branch, Kanpur, and New Egerton Woollen Mills Branch,

Dhariwal, Punjab.

The Company changed hands from British interests to the Indian business families of

MUNDRAS and then BAJORIAS between 1955 and 1962

In February 1963 the management of BIC got vested with an elected Board with the

approval of Central Government as well as UTI, LIC and Banks.

In June, 1981, BIC became a Government Company through an Ordinance promulgated by

the Government of India.

It is a Public Sector undertaking, under the control of Ministry of Textiles, Government of

India, and is the only P.S.U. manufacturing Woollen Textiles in the country.

On the basis of its financial position, the company was referred to the Board for Industrial

and Financial Reconstruction (BIFR) on 31st March, 1991.

Rehabilitation Scheme of B.I.C. was approved by BIFR in Feb. 2008. As per direction of

cabinet the M.D.R.S. was reassessed by I.F.C.I. & W.R.A. and forwarded to BRPSE for its

approval. The scheme was approved by BRPSE on 28th July, 2010. It is expected that the


38/51


cabinet approval and other formalities will be completed shortly and thereafter production

activities shall resume in full swing.

Organisational structure of the company-

Administrative and technical setup

P.K. SHARMA General Manager

FINANCE

R.C. Sharma Dy. Manager (F&A)

ADMINISTRATION

Raja Mitra Manager (P&A)

S.K. Upadhaya Manager (L&S)

TECHNICAL

N.B.Singh Worsted Superintendent

A.K.Gupta Weaving Superintendent.

S.K. Mishra Woollen Superintendent

Manish Shukla Dyeing Master

SALES

S.N. Verma Manager Sales

Address: 11/6, Parvati Bangla Road, Post Box No. 77, Kanpur208 001 (U.P.) India

Phone: 0512-2530212, 2530213, 2530214

Fax: 0512-2530201

E-mail:[email protected]

B.I.C. Limited was declared as sick company in 1992, and was referred to Board for Industrial

& Financial Reconstruction (BIFR). The Government proposed a Rehabilitation Scheme for

the company in 2000 and BIFR approved the revival of the two Woollen Mills Cawnpore

Woollen Mills Branch (Lal Imli) & NEWM Branch, Dhariwal, Punjab. The cost of the BIFR

approved rehabilitation scheme was Rs. 210.51 crores. The Government has released Rs.

86.00 crores as envisaged in the scheme to BIC Ltd., The said Rehabilitation Scheme could
mailto:[email protected]:[email protected]:[email protected]:[email protected]


39/51


not be implemented within the stipulated time frame mainly due to non-cooperation of UP

Govt. in granting necessary permission for converting leasehold land into freehold at free of

charge or with minimum charges, because the main source to finance the scheme was to be

generated through the sale of surplus assets. The BIFR reviewed the matter on November

29, 2005 and issued direction that the company and operating agency i.e. IDBI should

prepare a modified Draft Rehabilitation Scheme and submit the same for consideration of

BIFR. Accordingly, the draft modified rehabilitation scheme was submitted to BIFR. The BIFR

considered the scheme in its hearing dated 14.2.2007. Minutes of the meeting are awaited.

Mission-

To cater the demands of woollen and worsted goods to Indian Defence Forces, Para-military

Forces, Government Bodies and Indian Citizens with quality and on market compatible price.

Objective of the company-

To contribute at our best in fulfilling the big demand of Woollen and Worsted goods of

Defence and Para-military Forces, Government Bodies and our Civilians vis-a-vis Private

Sector.

Being a Public Sector unit to act as a factor for the Government to rein in the Private

Sector lest it should exploit the monopoly in the market.

To create the marketing opportunities in the virgin areas of the market.

To create a suitable environment and facility for proper R&D work to propel the

prospects of our products in the market.

To enable us as a Brand Ambassador of the Government regarding Woollen goods in

the market since we have the oldest legacy of woollen products in the nation.

To discharge the social responsibilities of an organization with due direction of the

Government.

S.W.O.T. Analysis-

Strength-

Lal-imli is an established company since 1876 (138 years)

The company is recognised globally It produces high standard quality woollen products

Lal Imli employees are highly experienced persons Lal Imli employees are highly

experienced people.

Weakness-

Financial problems

Employees are not trained in a modern way

Internal conflicts (agency costs involved)

No focus on sales promotion and advertising

Opportunity-


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This is a measure of the average length of time taken for debtors (trade receivables) to

settle their balance.

Debtors turnover period = (trade receivables (debtors)/sales) X 365

DTR of the company is = 546098 / 7562537 = 0.072This ratio being so small shows that a very small fraction of the sales volume is used to give

debts which shows that the company is unable to trust on its customers, but also since the

company is in a sick kind of situation it is not expected from it that it will give any of its small

sales in debt to its customers.

Interest coverage ratio-

Interest cover on an issue of loan capital is defined to be the profit on ordinary activities

before interest and taxation divided by the annual interest payments due on that issue of

the loan capital and on all prior ranking loan capital.

ICR = the profit on ordinary activities before interest and taxation/ annual interest payments

The ICR of the company is = -347047507 / 128222543 = -1.706

Asset cover ratio-

Asset cover on an issue of loan capital is defined to be total assets less current liabilities less

intangible assets all divided by the loan capital plus prior ranking debt.

Asset cover = total assets less current liabilities less intangible assets / loan capital plus prior

ranking debt

The asset cover of the company is = 112791784 / 13832702 = 8.15

The asset cover of the company is decent and it depicts that it will be able cover its liabilities

in case of liquidation by selling its non-current assets.

ROCE-

Return on capital employed is the most important profitability ratio indeed it is often

referred to as the primary ratio or return on investment. It measures the relationship

between the amount invested in the business and the returns generated for those investors.

The calculation of return on capital employed is complicated by the fact that capital

employed can be measured in a number of different ways. It is vitally important that the

figure for return is calculated in a consistent manner with that for capital employed.

ROCE = net profit before tax / total assetscurrent liabilities

ROCE for the company is = -347047507 / 25536118 = -13.59

As the profit for the company is negative it is quite clear that return on capital employed

would be negative.

Profit margin-


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A.)Quality B.)Colour C.)Designs D.)Price

Q-4.In your opinion advertisement is necessary for Lal Imlis product?

A.)Yes B.)No

Q-5.What is the main reason of struggling the Lal Imlis product in the market?

A.)Old fashion B) New competition C) High price D) dont know

Q-6.What is your personal feeling about Lal Imlis product?

A.)Very good B) Good C.) Simple D) Bad

38

2

3

32

7

Q U A L I T Y C O L O U R D E S I G N P R I C E

Series 1

95

5

Y E S N O

Series 1

46

39

4

11

O L D

F A S H I O N E D

N E W

C O M P E T I T O R S

H I G H P R I C E D O N ' T K N O W

Column1


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Q-7.Which soap you prefer for the washing of Lal Imlis product?

A.)Rin B.)SurfExel C.)Tide D.)Others

Q-8.Which product of Lal Imli do you like most?

A.)Shawls B) Trousering C) Suiting D) Others

Q-9.Are you satisfied with the position of the Lal Imli?

A.)Yes B.)No

45 5

0

5

0

V E R Y G O O D G O O D S I M P L E B A D

Series 1

26

24

38

12

R I N S U R F E X C E L T I D E O T H E R S

Series 1

28

17

27

28

S H A W L S T R O U S E R I N G S U I T I N G O T H E R S

SERIES 1

Series 1


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Q-10.Do you want to visit Lal Imli?

A.)Yes B.) No

Data interpretation-

People are unaware about the condition of lal-imli but still recognises it as a brand.

In general young people are unaware about the company.

Almost all types of products are equally liked by the public.

People have faith in the quality and durability of products provided by lal-imli.

Most of the people think that products of lal-imli are old fashioned and is constantly

lagging behind its competitors in the market.

There is a huge requirement felt by almost everyone in the sample, for lal-imli to

advertise its products for increasing its sales volume.

BIC still has reputation within its customer base.

Limitations of the study-

Sample size is in a way biased because it is restricted to people living in Kanpur city Sample size is small

68

32

Y E S N O

Series 1

93

7

Y E S N O

Series 1


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Only bounded questions are used for this survey which includes only objective

questions

Inaccuracy in collection of data because of one person working

People sometimes give wrong choices, therefore it very difficult to know what they

really want

Mundhra scam-

In 1956 when SRI HARIDAS MUNDRA was the chairman of the company a scam involvingthe issue of duplicate share certificates took place which snow-balled into a major national

issue.

Haridas Mundhra was a Calcutta-based industrialist and stock speculator who was found

guilty and imprisoned in the first big financial scandal of free Indiain the 1950s. The

Mundhra scandal exposed the rifts between the then Prime MinisterJawaharlal Nehruand

his son-in-lawFeroze Gandhi, the scam took such proportions that it had effects on the

government exchequer and also led to the resignation of India's then finance MinisterT. T.

Krishnamachari.

In 1957, Mundhra got the government-owned Life Insurance Corporation(LIC) which wasinfluenced by Finance Minister T. T. Krishnamachari to invest Rs. 1.24 crores in the shares of

six troubled companies belonging to Mundhra: Richardson Cruddas, Jessops & Company,

Smith Stanistreet, Osler Lamps, Agnelo Brothers and British India Corporation with no real

standing in order to boost the prices of those companies in the stock market. The

investment was done under governmental pressure and bypassed the LICs investment

committee, which was informed of this decision only after the deal had gone through. In the

event, LIC lost most of the money.

Standing from the treasury benches, Feroze Gandhi asked the government whether the

newly formed Life Insurance Corporation had used premiums from 5.5 million life-insurance

policyholders to buy up shares at above-market prices in the companies controlled by anotorious stock speculator named Haridas Mundhra.

Thus the prime minister was confronted by his own son-in-law. The fierce Finance minister,

himself a noted industrialist, initially snapped "That is not the fact,but had to admit later

that this in fact was the case.

Several leading stockbrokers who were on the LIC Investment Committee testified that the

investment could not have been made for the purpose of propping up the market, as was

claimed by the Finance Ministry, and that had the LIC consulted the Investment Committee,

they would have pointed out Mundhra's forged shares episode from 1956.

The committee passed strictures against finance minister for "lying". The Finance Minister T.

T. Krishnamachari, in his testimony tried to distance himself from the LIC decision, implying


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that it may have been taken by the Finance Secretary, but the Minister is constitutionally

responsible for the action taken by his secretary and he disown his actions. Eventually,

Krishanamachari had to resign. And Haridas Mundhra was jailed for 22 months.

As a result of the Mundra Scam, the Board of Directors of BIC was dissolved and a fresh

Board of Directors was constituted by the High Court of Allahabad. Sri H.S. ChaturvediRetired. Judge was appointed as Chairman of BIC, and the Vice Chancellor of Banaras Hindu

University became the Vice Chairman.

During the 1970s the downward slide of the company continued and the mills started

inching towards sickness. By the year 1980 the mills were almost on the verge of closure. To

avoid such a disastrous end to the pioneers of the Woollen Industry, BIC was taken over by

the Govt. of India on 11th June, 1981 by a special act of the Parliament "The British India

Corporation Ltd. (Acquisition of Shares) Act, 1981."

The private shares of the company was thus acquired by the Government of India, The Govt.

took corrective measures in the form of partial doses of modernization to pull BIC out ofdoldrums, but the same proved ineffective.

As the company continued to incur losses, it was referred to the Board for Industrial and

Financial Reconstruction (BIFR) on 31st March, 1991 under the provisions of S.I.C.A. The

BIFR declared the company sick.Since then, it has been incurring huge losses because ofobsolete machinery, surplus staff and shortage of working capital.

Reasons for the sickness of the mill-

Outdated machinery-Low output because of outdated machinery Lack of modernization- no computers in the offices except at some places where

they were not used.

Low motivation of the staff

Trade union troubles-Company was not able to pay off the salaries of labours. Lot ofstrikes happened because of non-payment of salaries. As a result labour union was

formed to resolve the issues. Though labour union arouse the whole problem in

spite of solving them. Labour union started demanding lot of facilities and incentives

for labour which the firm was not able to afford.

Corruption

Lack of HR policies Old liabilities- The Company continued to incur losses especially because the

modalities of nationalization did not address the issue of old liabilities which

continued to exist. Even the loans taken by the private management prior to

nationalization continued to get compounded resulting in massive accrual of

liabilities. The rate at which such liabilities continued to grow was definitely much

higher than the company's activities.

No young people working in the mill

Less knowledge by the staff about the processes involved in the mill

No telephonic connection between the departments


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Steps taken by the government-

The latest revival package approved by the central government included a grant of Rs 17

crore for introduction of a voluntary retirement scheme for surplus workforce of the

company, and a bridge loan of Rs 11.5 crore for payment of interest liability to the State

Bank of India.

All hopes are pinned on the vast land bank BIC is sitting on in Kanpur and Dhariwal. The

government wants to sell the surplus land to raise funds to be pumped back into the sick

unit.

However, land can't be sold straightaway because it had been leased out by the Uttar

Pradesh government to the company.

Sickness is synonymous with government owned textiles mills in the country.

Apart from British India Corporation's Lal Imli, which manages to barely keep up five per

cent production, the eight other textile mills have all closed. The closure of the mills

rendered tens of thousands unemployed and contributed to the rising crime rate.

What could have been-?

We should not have continued to strike after independence, we did it to the British but we

should have not continued that after independence, the better option would have been, we

should have worked extra and asked for our desired benefits, it happens in the foreign

countries but here it did not happen like this.

This policy of strike by the unions hurt the mill worst. When government had decided that it

will pay sitting wages, workers should have protested. They thought that they will receive

payments without any work and lost their jobs instead.


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REFERENCES

o Data from internal sources of the company

o Google

o www.lal-imli.com

o Wikipedia
http://www.lal-imli.com/http://www.lal-imli.com/http://www.lal-imli.com/


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THANK YOU

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