ON

SELLING TREND OF

COTTON YARN

AT

VARDHMAN POLYTEX LTD

BATHINDAS u b m i t t e d i n t h e p a r t i a l f u l f i l l m e n t o f t h e r e q u i r e m e n t s f o r t h e d e g r e e o f

“MASTER OF BUSINESS ADMINISTRATION “

Submitted to Submit by Vardhman Polytex Ltd. Navdeep Kumar

Badal road, Bathinda MBA

1

Chandigarh Group of Colleges Mohali

STUDENT’S DECLARATION

Cer t i f i ed tha t I am Navdeep Kumar o f Mas te r o f

Bus iness Admin i s t r a t i on -3 r d Sem(Marke t i ng ) have

p repa red repo r t t i t l ed ‘SELL ING TRENDS OF

COTTON YARAN AT VPL , Bath inda” and

comp le ted my p ro j ec t unde r t he gu idance o f

M r .A ro ra & Mr . j agd i sh s i ng l e i n t he pa r t i a l

f u l f i l lmen t o f t he requ i rements f o r t he deg ree o f

Mas te r o f Bus iness Admin i s t r a t i on . We he reby

ce r t i f y t ha t no pa r t o f t h i s r epo r t has been

submi t ted f o r any o the r deg ree .

The p ro j ec t was unde r taken as a pa r t o f t he

cou r se o f M .B .A . unde r Pun jab i Un i ve r s i t y , Pa t i a l a .

P l a ce -Ba th inda P l ace -Ba th inda Da te : Da te : NAVDEEP KUMAR NAVDEEP KUMAR

2

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I wou ld l i ke t o ava i l t h i s oppo r tun i t y t o exp ressI wou ld l i ke t o ava i l t h i s oppo r tun i t y t o exp ress

my deep sense o f g ra t i t ude t o a l l t hose whomy deep sense o f g ra t i t ude t o a l l t hose who

have he lped and encou raged me towards thehave he lped and encou raged me towards the

success fu l comp le t i on o f t h i s p ro j ec t .success fu l comp le t i on o f t h i s p ro j ec t .

I am ve ry g ra te fu l t o M r . MR . V i j ay A ro ra , I am ve ry g ra te fu l t o M r . MR . V i j ay A ro ra ,

B ranch Manage r f o r h i s va luab le sugges t i ons ,B ranch Manage r f o r h i s va luab le sugges t i ons ,

gu idance and so l v i ng the p rob lems th roughou tgu idance and so l v i ng the p rob lems th roughou t

t he p ro j ec t . A l so , w i thou t h i s he lp , I wou ld no tthe p ro j ec t . A l so , w i thou t h i s he lp , I wou ld no t

have go t a chance t o unde r take th i s wo rk o fhave go t a chance t o unde r take th i s wo rk o f

s tudy .s tudy .

I wou ld a l so l i ke t o t hanks the f o l l ow ing I wou ld a l so l i ke t o t hanks the f o l l ow ing

peop le who sha red the i r p rec i ous know ledge andpeop le who sha red the i r p rec i ous know ledge and

expe r i ence w i th me and p rov ided me necessa ryexpe r i ence w i th me and p rov ided me necessa ry

gu idance and he lp wheneve r r equ i red :gu idance and he lp wheneve r r equ i red :

3

TABLE OF CONTENTS

1. Introduction

2. An introduction to development of textile in human life

3. Overview of Indian textile industry

4. Types of cotton yarn

5. Company structure

6. Company profile

7. Vardhman Polytex limited

8. Manufacturing process in Vardhman Polytex limited

9. Functions of various departments of vpl Bathinda

10. Vision

11. Objectives of study

12. Scope of study

13. Methodology

14. SWOT analysis

15. Sales of cotton yarn in domestic market

16. Trend of export n last five year

17. Limitations

18. Summary of the study

4

19. Findings of the study

20. Suggestions and recommendations

21. Conclusion

22. Bibliography

5

INTRODUCTION

There has been a constant search for clothing and it

lead to the knowledge of source from vegetation i.e.

cotton and from animal i.e. wool, which could be knitted

and woven to manufacture cloths to wear. The

commercial development of manmade fibre began late

in the 19th century. It growing during 1940's. Earlier

the spinning and weaving of cloths was done manually.

But with the passage of time a lot of improvement in

the spinning and weaving came up. The textile industry

has been growing to its new height with new

technological advancement. With the cotton belts

available throughout India. The spinning and weaving

industries came up.

First cotton mills have been established in India during

1854 name of Bombay Spinning & Weaving Co. The

cotton industry has progressed a lot. Thereafter the

most modern machinery of spinning and weaving has

been installed till today. India has achieved a lot in the

textile industry and almost 700 textile units are working

6

successfully. The cotton textile industry has played its

vital role in bringing improvement for the economy of

the nation. And it has contributed a lot towards the

improvement in the national economy. From the

western part of India i.e. Maharashtra and Gujarat

where a lot of cotton textile mills have been installed

and this is the area from exports of the textile yarn is

very easy because Bombay port and other facilities are

available in this region and climate condition of this

area also very much fit to run the textile industry.

The invention of the man made 33 fiber that is

synthetic fiber like Nylon, Acrylic Fiber, Viscase,

Filament Yarns, Melange Yarn etc. had given a good

blow to the grow for the cotton textile industry. About

50 countries have been importing such material from

India.

The major center in the north India dealing in woolen

products manufacturing and Kanpur, Dhariwal, Panipat,

Ludhiana and Amritsar. The first woolen mill was

started at Kanpur in 1886. The textile industry may be

classified into:-

7

1. Textile mills comprising composite and spinning mills

in the organized segment.

2. Khadi based units.

3. Made up fiber.

The invention and production of manmade fruity three

fibers that is synthetic fiber like nylon, acrylic, fiber

gave a blow to cotton textile industry. India cotton yam

and clothes find an appreciable acceptance in overseas

market. India has one of the largest textile industries of

the world. Textiles constitute an important sector in

Indian exports. The textile industry is obviously

receiving new input which can provide faster growth to

the industry. There are some weaknesses that the

textile industry faces in India. The low production of

cotton crop, under developed and less modem status of

India's textile industry and lack of concern for quality

has been acting on barriers to faster growth of India's

textile exports.

8

THE DEVELOPMENT OF TEXTILE IN

HUMAN LIFE

The physiological need of the human being is food,

clothing and shelter in order to survive. Since the day of

inception of humans on this earth the many changes have

been taken place at different spar of times, human being

gradually has evolved itself from a nomad to civilized

living conditions. The major changes in human living

phase was like knowing the art of agriculture, inventions

of wheels for transportation generation of power, but the

very basic need which really took the man off from his

feet was the invention of knitting and weaving. Human

beings need to cover their body to protect from diverse

climates and to add the appearance. The human's first

use plant barks leaves and animal skin to wrap around

them. Then as the development of brain took place, they

started to explore other possibilities and invent more in

this area. There was a constant search for clothing and it

led to the knowledge of sources from vegetation i.e.

9

Cotton and from animals i.e. wool, which could be knitted

and woven to manufacture clothes to wear.

The commercial development of man-made fibre began

late in the 19th Century, experienced much growth during

the 1940's, expanded rapidly after World War -: II and in

the 1970's was still the subject of extensive Research and

Development.

10

OVERVIEW OF INDIAN TEXTILE

INDUSTRY

We all know that prime needs of man are food, clothing

and shelter. Clothing a main part of the prime needs is

satisfied by the presence of textile industry. Thus the

scope of textile industry is vast, ever expanding and

serves the individual man, women, child, the community

and country. Textile industry has a wide range of utilities

form decorating one's home to donning the dresses of

army & navy. As such there has been an increase in

demand of both at domestic and international level.

India has one of the largest textile industries of the world

and also is the single largest organized industry in India

employing over 21 lakh workers. The industry has four

sectors Khadi, handlooms and organized mills of which

cotton textile being the most significant the consumption

has constantly shifted towards modem, blended, dyed and

11

printed goods. The consumers now prefer good quality

and durable products. These too have forced several

manufacturers in textile industry to change their product

mix.

Textile constitutions and important sector in India

exports. Textile and garments are the single largest

category of products from India/ accounting for about 25

% of the country exports. Garments export industry,

unparticular is showing phenomenal increase in growth

year after year. Releasing export significance an

employment potential, the government deli censed the

cotton textile industry including power looms.

Encouragement to export of cotton textile and garment

become an important part of the new policies. Under the

law policy, sophisticated garment machine, which are not

manufacture in India, are now allowed to be import under

OGL. Moreover the new policies have allowed setting up

of garment manufacturing units provided they export 50%

of the production.

12

The exports have also increased to a great extent due to

the interest undertaken by the Government to boost

exports. It has introduced ISO 9002 for quality related

factors.

There are some weaknesses, which India has to

overcome. Infect, for these weaknesses, Indian export of

textile would have been much higher. The low

productivity of the cotton crop, the relatively under

developed and less modem status of India's textile

industry and lack of concern for quality, has been acting

on barriers to faster growth of India's textile exports.

Textile industry may be classified into :

1. Textile mills comprising composite and spinning mills in

the organized segment

2. Small power loom and handloom units in the

decentralized segment Khadi-based units

3. Man made and synthetic fiber and spinning units made

up fiber.

13

TYPES OF YARN

Yarns can be described as single, or one-plies; ply, plied,

or folded; or as cord, including cable and hawser types.

Single yarns

Single, or one-ply, yarns are only single strands

composed of fibers held together by at least a small

amount of twist; or of filaments grouped together either

with or without twist; or of narrow strips of material; or of

single- man-made filaments extruded in sufficient

Thickness for use alone as yarn (monofilaments). Single

yarns of the - spun type, composed of many short fibers,

require twist to hold them together and may be made

with either S-twist or Z-twist). Single yarns are used to

make the greatest variety of product because of the good

length fibers.

14

Ply yarns

Ply, plied, or folded, yarns are composed of two or mare

single yarns twisted together. Two-ply yarn, for example,

is composed of two single strands; three-ply yarn is

composed of three single strands. In making ply yarns

from spun strands, the individual, and trends are usually

each twisted in one direction and are then combined and

twisted in the opposite direction. When both the single

strands and the final ply yarns are twisted in the same

direction, the fibre is firmer, producing harder texture

and reducing flexibility.

Card yarns

Card yarns are produced by twisting ply yams together,

with the final twist usually applied in the opposite

direction of the ply twist Cable cords may follow an SZS

form, with S-twisted singles made into Z-twisted plies that

are then combined with an S-twist, or may follow a ZSZ

form. Hawser cord may follow an SSZ or a ZZS pattern.

15

Cord yams may be used as rope or twine, may be made

into very heavy industrial fabrics, or may be composed of

extremely fine fibres that are made up into sheer dress

fabrics.

Novelty yarns

Novelty yarns include a wide variety of yams made with

such special effects as slubs, produced by intentionally

including small lumps in the yam structure, and man-

made yams with varying thickness introduced during

production. Natural fibers, including some linens, wools to

be woven into tweed, and the uneven filaments of some

types of silk cloth are allowed to retain their normal

irregularities, producing the characteristic uneven surface

of the finished fabric. Man-made fibers, which can be

modified during production, are especially adaptable for

special effects such as crimping and texturizing.

16

COMPANY STRUCTURE

OSWAL GROUP

VPL BATHINDA ANSHUPATI

LUDHIANA

VTM

LUDHIANA

F.M.

HAMMERBAY

17

COMPANY PROFILE

OSWAL GROUP is a premier Textile Group of Northern

India having its Corporate Office at Ludhiana, Punjab. The

Group has existence for last 40 years with core

competency of Spinning. We were earlier part of

Vardhman Group but after family settlement between two

brothers in 2003, we have named ourselves as Oswal

Group.

The Group is mainly into spinning & dyeing of all types of

Yarn in different blends & manufacturing of Garments.

The Group has plans to diversify in future but mainly in

textiles related activities.

Mr. Ashok Oswal, Chairman & Managing Director who is a

Law Graduate and having experience of over 25 years in

the textiles, heads the Group. He has been assisted by

18

the talented team of professionals in the field of

Production, Finance, Marketing, Commercial, HRD and IT

at the Corporate Level. Under the dynamic leadership of

Mr. Ashok Oswal, the Group is consolidating its strength

in textiles and plans to reach highest standards of quality

at a competitive cost in manufacturing different types of

yarn viz; Cotton Yarn, Cotton Blended Yarn, Acrylic Yarn,

Acrylic Polyester Blended Yarn & Dyed Yam with the

state-of-the-Art Machinery and R&D facilities.

The industrial city- Ludhiana nestles the corporate

Headquarters of the Oswal Group of industries. The Oswal

Empire comprises of Anshupati Textiles Limited situated

in Ludhiana, Vardhman Polytex Limited situated in

Bathinda, Vinayak Textile Mills situated in Ludhiana.

Anshupati Textiles Limited , based at Ludhiana

in Punjab, the worsted spinning units in the Indian

subcontinent with 8000 worsted spindles installed,

manufactures the Machine Knitting Yarn, Mink Yarn and

19

Fancy yarn, with vast product range, to meet every sort

of count combination demand of its prospective

customers. The yarn manufactured from this unit holds a

very strong reputation and demand both in domestic and

international market. The present capacity in terms of

production is approximately 6.5 ton per day.

Vardhman Polytex Limited, a unit based at

Bathinda in Punjab with approx. 75,000 cotton spindles

installed, is manufactured 100% cotton yarn, Polyster

cotton yarn and Tyre cord yarn with vast range of count

selection varies from NE 10 to 40 both in carded and

combed varieties. To ensure quality to its customers the

group has received the ISO-9001-2000 certification. This

unit is exporting its product to Singapore, Bangladesh,

and Sri Lanka etc.

20

Vinayak Textiles Mills , a unit at Ludhiana in

Punjab with 49632 cotton spindles installed, is

manufacturing 100% cotton & blended yarn with vast

range of count selection varies from NE 20 to 40 both in

carded and combed varieties. The present capacity in

term of production is around 29 Mt. Dyeing / Day. The

unit has expanded its capacity by another 25000 spindles

and commercial production will start by Oct. 2006.

21

PRESENT CAPACITIES

Presently the group has following production capacity and

product range at its different manufacturing facilities.

Location Installe

d

Capacit

y

Productio

n

Capacity

Product Range

Bathinda (VPL) 75000 50.00

Mt/Day

Cotton,

Synthetic,

Blended yarn

and Tyre Cord

Ludhiana

(Anshupati

Textile)

8000 6.50

Ton / Day

Synthetic Yarn

Ludhiana

(VTM)

49632 29

Ton / Day

100% Cotton &

Blended Yarn

22

VARDHMAN POLYTEX LIMITED

HISTORY

Punjab Mohta Polytex Ltd., the foundation stone was laid

on 12th June 1983 by the chief minister of Punjab, Sardar

Darbara Singh. The plant was commissioned on 4rth

September, 1986 and inaugurated by Sardar Surjit Singh

Barnala. Mohta group has taken over and in corporated by

Mahavir spinning Ltd. in 1987. Thus, Punjab Mohta Polytex

Ltd became the subsidiary of Mahavir spinning Ltd. At the

time of amalgamation the unit had 9000 spindles and 504

rotors, making the total of 11520 spindles. After taking

over, the spindle age was increased to 15520 spindles. In

1991 the name of the unit was changed to Vardhman

Polytex Limited, as a separate company. Mahavir spinning

ltd share was bought back in VPL. The spindles were

further increased to 30328 and 504 rotors. The last

expansion came in 1994 with an increase of another

23

12320 spindles making total capacity to about 35648

spindles, now the unit has 74592 spindles. The unit

headed by chief executive Mr. Ashok Goyal who controls

and coordinates the activities of all the departments in

the unit.

Research and development in Bathinda is engaged in

quality testing, product development, quality and new

material testing. Testing is carried at each stage of

manufacturing process. The company has got a spinning

laboratory for the analysis of length, strength, fitness,

trash area & trash contents ere for ensuring proper mix of

cotton as raw material.

VPL manufactures 4 varieties of cotton yam:

1. Carded

2. Combed

3. Polyester Cotton Yarn

4. Tyre Cord

24

The difference between these varieties is that in Carded

variety, the sliver from the carding is directly taken to the

draw frame for drawing and parallelization of the yarn.

ISO Certification

The unit has been awarded ISO - 9002' certificate by the

bureau of Indian standards after the final audit, which

took place in the unit on 26th July 1996.

25

BRANCHES OF VPL

In VPL Bathinda there is a centralized buying and selling

of yarn. There are mainly two branches of VPL Bathinda:

1. Ludhiana

2. Delhi

Ludhiana / Delhi Branch Office

VPL Bathinda had only manufacture 100% Cotton Yarn,

Polyster Yarn, Organic Cotton Yarn, Cotton Lycra yarn etc.

After manufacturing yarn they send yarn to Ludhiana /

Delhi Branch.

4 invoice re prepare for deliver the yarn to Ludhiana

office: -

1. Original copy to buyer.

2. Duplicate goes with truck

26

3. Triplicate for VPL Bathinda

4. Extra Copy.

Delhi Branch

Delhi branch are mainly deal with Export of yarn. They

can export to following countries:

1. Sri Lanka

2. Bangladesh

3. Singapore

4. Malaysia

5. Mauritius

27

MANUFACTURINGPROCESS

VPL BATHINDA

28

1. MIXING

The different varieties of cotton are issued as per product

mix from the raw material section in bale from. The

different varieties of cotton and different lots are mixed

together as per the requirement of end product and

standard recommended mixings. The material is

conditioned in mixing for 24 hours.

2. BLOW ROOM

In this process, the cleaning and opening of fibers is done

in a sequence of beaters. Main purpose is to reduce tuft

size, remove the trash particles and foreign matter etc,

which often comes in the bales.

3. CARDING

In this process, further cleaning of fibers is done and the

fibers are opened into single fibers extent i.e. the main

purpose is further removal of trash in cotton and the

industrialization and parallelization of fibers. From the

29

carding machine, the material is delivered in the form of

sliver.

4. DRAW FRAME

The purpose of this process is to reduce the wt/yard in

the card sliver 6 to 8 end of card slivers are doubled

together in this process to reduce variations and further

drafting is done to reduce the wt/yard of delivered sliver.

Two passages are given at the draw frame stage.

In case of combed counts, the card sliver is fed to the

presuming draw frame. The purpose of combing draw

frame is to reduce the wt/yard variations in the card

sliver and to parallelize the fibers. Singles passage is

given at the precombing stage.

5. LAP FORMER

20-25 presumed draw slivers are fed together to produce

a lap sheets of fibers, which is wound on the spools.

30

6. COMBERS

The laps prepared on lap former are fed to combers. The

main purpose of combing process is to remove the short

fibers from the material in the form of noil. The average

noil percentage caries from 15% to 18%. The material is

delivered in the form of sliver.

7. SPEED FRAME

The finisher draw frame sliver is fed to the speed frames

for conversion into the roving form. In this process the

wt/yard of the sliver is reduced, slight twist is given to

the fleece and the material delivered in the form of

roving, wound on the plastic bobbins.

8. RING FRAME

The roving is fed to ring frame for conversion into yarn. In

the process, the weight / yd of roving are reduced as per

requirement of ultimate user and the delivered yarn is

wound on the plastic bobbins.

31

9. WINDING

In this process, the yam is wound on paper cones to

produce bigger package, as per requirement of the

market. The weight / package varies from 1.2 kilogram to

2.1 kilogram. During the process, in addition to the

formation of bigger packages, the yarn faults are also

removed with help of electronic yarn cleaner.

10. DOUBLING

In the case of type cord the process is same upto cone

winding. After cone winding the yarn is fed into Cheese

Winding. In the process 2 ply or 4 ply is to be done as per

requirement. After the yarn is fed into ring doubling and

required T.P.I. is given in 2 ply or 4 ply yarn. In the next

process in assembly cheese winding is get the package in

the package in the required from to be fed into T.F.O. in

T.F.O. final yarn is prepared in the form of cheese and

required T.P.I, is given to the final yarn in process.

32

11.PACKING

In this process, the cones / cheese are packed in bags or

cartoons as per the requirement of the market. In

addition to the packing the material is checked

thoroughly to avoid mixing of different materials.

33

FUNCTIONS OF VARIOUS DEPARTMENTS

OF VPL BATHINDA

Accounts and Finance

Financial and accounting activities of unit are looking

after by the accounts department. It is headed by AGM

(accounts & commerce). The account is fully

computerized and been put under the different categories

from delegation point of view. It involves:

Accounting for cash transaction

Customer / sales account

Accounting and blank transaction

Purchase accounting

Raw material accounting

General accounting

34

All the bills for payment are pursed here. Payment

exceeding Rs. 10,000 are made by cheques only.

Whenever goods are received against bank, documents

are retired for release of product. Various other" activities

are to comply with corporate office.

Marketing

For marketing of different products the unit is having a

different marketing department headed by AGM

(marketing), which covers all the activities for conversion

of finished goods into cash. It gives vigil on the market to

have, feedback on the level of competition, market trend,

changing customer needs and modification. The

marketing department deals with domestic sales while

export sales are managed by export department of the

group. The unit is market leader in both the product

categories. It deals in hosiery yarn and lyre cord yarn.

The unit is having different channels job distribution of

products.

35

Distribution Channel

After the production the next step is to sell and distribute

the product in the market, segment. The main object of

each organization is to satisfy the needs of the customer

by providing products through different channels of

market according to customer needs and preferences and

tastes and nature of the market. Distribution channel, as

the set of firms and individual that take title or assist in

transferring of title to the particular goods or services as

it moves from producer to consumer. There are number of

channels that are generally used by different

organizations like zero level, % three levels, so channel

performs the work of moving goods from producer to

consumer. The channel used in VPL, Bathinda is as

follows:

36

DISTRIBUTION CHANNEL OF VPL,

BATHINDA

Corporate Marketing

Manufacturing unit of VPL

Direct Sales of VPL Bathinda

Branches Consignment Agents

Export

Customer Customer Customer Customer

37

Branches

Ludhiana

Delhi

Commercial Department

Commercial department is a department which handles

the material in a proper way, handles the waste and

transfer the finished' product to various parties. It is a

central department of organization. The main functions of

the commercial department are as follows:

Raw material handling

Cotton waste handling

Insurance

Production Department

The production department has done the main function of

an industrial unit. It is the main center of any

manufacturing unit. So production is done in a continuous

assembly line.

38

VISION – 2011

Oswal group aims at achieving a turnover of Rs. 700 Crore

by strengthening its core competencies and capacities in

textiles and diversifies business to create value for its

stake – holders.

39

OBJECTIVE OF THE STUDY

Any research work without objectives is of no use

therefore studying a problem or a case having objectives

in the mind and fulfilling those objectives is a proper way

of studying.

The following are the main objectives of my study:

To study the trend of export in the last five years

To study the sales trend of cotton yarn in the domestic

market

(a) Direct sale (b) Branch Office sale

To compare sale of different years upon 2001 -2010

To know the fluctuations in the sales of the company

from 2001 to 2010

40

SCOPE OF THE STUDY

Every project work has its own scope. My study of VPL is

helpful to know its sales in domestic and export market

from last five years. With the help of this study we come

to know the rises or fall in the sales. It is helpful for

company to take steps to improve its sales and profits.

41

METHODOLOGY

The study of selling trend of VPL, Bathinda was carried

out relaying on my study and information gathered from

primary as well as secondary sources.

The primary sources include direct conversation with the

company officers of different departments and staff. The

secondary sources include company records, files and

reports different web sites etc.

42

INTODUCTION ABOUT THE SALES

ANAYLSIS

Every organization devises various controls measures to

supervise its activities. Some of the tools of control are

command in all organizations & some organization may

devise special measures to suit their particular

requirement according to the nature their business. There

are some formal tools of controls such as job description,

organization chart and office manual.

There are still another set control tools such as sales

audit, sale analysis and cost analysis which provides ma\

means to sale manager to find out strengths weaknesses,

opportunities and threats to the organizations. By using

the above different tools of the controls, the sales

manager can locate the defects and take corrective steps

to remove the shortcomings and improve the situation

and ton up the functioning of his department.

43

Sale analyses is detailed is detailed study of sales volume

performance to detect strengths and weaknesses. If sales

managements depend slowly on summary sales data it

has no way to evaluate it -Sown activities and those of

the sales force. The fact that sales increase by two

percent over last year but profit increases by 1 % would

be cause for the concern but of no help in determining

how to reverse the profit decline. Sales analysis provides

additional information for example that the increased

sales volume came from products carrying a lower than

average gross margin.

Sales analysis involves a systematic in depth study in

sales volume operations. This is also called self-analysis.

The sales analysis is carried out because the sales

management wants to know how for the sale programmed

was effective and how; far the performance of the sales

force was satisfactory. Sales analysis gives detailed and

additional information about the sales performance, so

that sales management' arrives at proper conclusion and

takes appropriate steps to improve the situation. Sales

44

analysis is ingot undertaken most of the information will

lie hidden in Nemours sales records.

Some companies do not maintain detailed sales records.

Accept what account dept. and the sales invoice record.

But some companies maintain records in great details.

They maintain records by records b products by types of

customers, by sales territories, by individual sales

analysis. The original sources of data for sales analysis

are the sales invoices of the customers. Now a day's

detailed information is fed to computers in easily

retrievable form in tapes or data processing cards.

The main purpose of sales analysis is to bring out

strengths and weaknesses of the sales operations. It also

brings out opportunities form competitors. It throws light

on different aspects of sales efforts. Analysis of products

answers the questions as to what products are sold and

how much too each product I sold.

45

SALES OF COTTON YARN IN

DOMESTIC MARKET

Domestic dispatches of finished goods are made in coordination

with Marketing Department Ludhiana. Contractors are entered

into with dealers, consignee agents by Marketing Department

Ludhiana, on rates decided in Monday Meeting of Marketing

Department of whole Vardhman group for sale of finished goods.

In branch offices like of Delhi, agents enter into contracts with the

customers. Daily, dispatch program is taken from Ludhiana on

phone, which is confirmed in writing in shape of daily dispatch

advice later on. Arrangement of vehicles for different stations, as

per dispatch advice is made in coordination with transporter with

whom freight rate for each and every station is finalized for one

year.

Domestic circle to which VPL sells its finished goods consists of:

1. Direct Sales

2. Brach Office Sale

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Direct sales are those, which are made directly to the customers

from VPL itself No. agent is involved here.

Vardhman has its branch office in certain cities like Delhi,

Ludhiana where it has its agents who enter into, contracts with,

the customers and accordingly VPL dispatches the finished goods

to the branch office. From here, the agent delivers the goods to

its customers.

TREND OF EXPORTS IN LAST FIVE YEARS

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VPL is a major exporter of cotton yam of the Vardhman group.

Exports are handled by the export cell, which procure orders from

overseas customers/parties. On receipt of the production

programs from the export cell, production of that count is started

according to the dispatch schedule i.e., production of the count

that has to be dispatched first is started before others.

Before making export dispatches, 24 hrs notices is given to range

office. VPL handles two types of exports:

1. DIRECT EXPORTS.

2. INDIRECT EXPORTS.

Direct exports are those whose production is started on receipt of

an order by a customer/party/company. Indirect is made to the

agents abroad who then sell the yam to the customers.

VPL exports cotton yam to international markets like Singapore,

Bangladesh & Sri Lanka.

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LIMITATIONS

1. Limited time

2. There is not proper marketing from Bathinda unit; it is

done by corporate office.

3. Source of data collection is secondary has limited.

4. No direct contact with customers.

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SUMMARY OF THE STUDY

First of all we visited the VPL Unit and got information about the

whole unit and production System. There are total 3 units which

produced the different verities of cotton yarn namely

1. Carded

2. Combed

3. Polyester Cotton Yam

4. Tyre Cord

VPL produced 100% cotton yarn products. Which provide the

excellent quality. To ensure quality to its custo~ers the group has

received ISO-9001-2000 certification. The VPL produced 50 tones

production per day. Capacity of Cotton Spindles is approx. 75000

in the unit. It is to be, mentioned here that the marketing of the

unit is in the hands of Company. Domestic circle to which VPL

sells its finished goods consists of.

(1) Direct Sales (2) Branch Sales

The VPL also export their production at International level

Singapore, Sri Lanka & Bangladesh.

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FINDINGS FROM THE STUDY

1. The production of the cotton yam is affected due to natural

calamities like drought, Water Logging, Hale Storm and

Drizzling.

2. Domestic sales increased in 2002 – 03 but it is decreased in

2003 – 04 and 2004 – 05 and it was highly increased again in

2005-06 and 2006 – 07

3. In the present time the cotton Seed of B.T. Cotton Seed is

came in the market it gives quality raw material.

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SUGGESTIONS & RECOMMENDATIONS

1. The company should consider for direct domestic marketing

of their products.

2. The company should use qualified labor.

3. The company should provide more and more information on

its web sides

4. To open more branches for production and make more

counters for marketing

5. Management should make the proper use of inventory

control techniques like fixation of minimum, maximum and

ordering labels for the proper production.

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CONCLUSION

From the study I have concluded VPL has strong position on the

market due to quality and variety of cotton yarn supplied by it. To

improve the present level of quality of yarn being manufactured

and to upgrade the technology its continuously in the process of

modernization

The whole production of the unit is based on cotton crop and it

affected by the natural calamities like draught, water logging,

drizzling and hail storm etc. It is based on seasonal raw material.

The production of product is based on the production of raw

material.

So the reason of increasing and decreasing the domestic and

direct sale the affect on the source of raw material (cotton).

But presently there is more demand of cotton yarn and the unit’s

production and sale is increasing day by day. So the unit started

25000 spindles from Oct 2006.

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BIBLIOGRAPHY

Books

Philip Kotler, Garry Armstrong

Principles of Marketing, Prentice Hall India

Journals & Newspapers

Business line, Times of India, The Hindu.

Websites

www.google.com

www.vardhman.com

www.oswalgroup.com

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