CHAPTER-1

INTRODUCTION

Indian textile industry is one of the leading industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991.The opening of economy gave the much needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. BRFL is one of India’s most dynamic and professionally managed textile groups. At Bombay Rayon, product innovation is at the heart of business model.

I have conducted this study to get more knowledge about the company and I gave special emphasis on different departments of BRFL. The Bombay Rayon Fashion Ltd producing five important products such as fabric, apparel, retail, trims, yarn. There are 13 departments in the company. Each department has one departmental head and employees are working under his authority. All the employees of the company have different authorities and responsibilities to perform. All employees of the organization are satisfied with their work and other provided facilities. The accounts department maintains all records. The quality of the product is very high and Research and Development department use their best effort to produce innovative products. The company has awarded the SA 8000, ISO 14001, ISO 9001 certificate. With over 200 million meters per annum of fabric manufacturing facilities and over 45 million pieces per annum of garment manufacturing facilities, BRFL is a rapidly growing textile company with over 32,000 employees. With fabric manufacturing facilities of 100 million meters per annum, garment manufacturing facilities of 60 million pieces per annum, being expanded to 90 million pieces per annum and a strong employee base of around 38,000; BRFL is today one of the most sought after brands in the Indian as well as International fashion markets.

OBJECTIVES OF THE STUDY

The main objectives of the study are as follows;

To get a practical experience. To get an idea about the overall working of BRFL. To get an overview about the present status of the organization. To know all departments of the organization. To study in detail the companies attitude towards their workers. To study the policy adopted by the company for smooth functioning of the

organization. To know about the financial performance of the company.

SCOPE OF THE STUDY

The research is the outcome of the study carried on the topic “a general study on Bombay rayon fashions ltd, Bangalore with special emphasis on financial management”

The study gives fair idea about the financial policies and marketing strategies implemented by the company for its products, to meet competition as well as for earning profit. The study can be taken as a basis in case of similar studies by other ventures in this field

RESEARCH METHODOLOGY

The study is conducted by collecting information from both primary and secondary sources.

LIMITATIONS OF THE STUDY

The study is subject to following limitations;

Time span available for conducting the study was very short. The project is only a general study of the organization without giving

importance to profit and resources. Unable to collect data in detail since it was a large firm. Lack of co-operation from some of the company staffs.

CHAPTER-2

INDUSTRIAL PROFILE

The textile industry is primarily concerned with the production of yarn, and cloth and the

subsequent design or manufacture of clothing and their distribution. The raw material may be

natural or synthetic using products of the chemical industry. The history of the Textile industry is the story of the movement from handcraft production of cloth in every country, to the industrial revolution in Britain, driven by cotton and wool yarn and cloth factories, which then spread to Europe, America, Japan and other countries.

Handcraft Era

The use of cotton textiles came to the West via the Middle East during the middle Ages, when Muslims brought cotton cultivation from India. The earliest fabric in Europe to include cotton fibers was fustian, a combination cotton and linen used to make garments and bedding. Demand for Indian cotton textiles, especially the 100% cotton fabric known as calico, increased in the 16th century. European textile makers attempted to capitalize on this trend by making substitutions and having the Indian textiles banned.

For centuries the spinning of yarn and the weaving of cloth had remained a manual operation. In England, for example, women and children, working at home, combed cotton with wire brushes and spun it by hand; the father then wove the cotton on a hand loom. Output was expensive and consumed locally. Most of Britain's cloth was home-made from wool in the West Country, Yorkshire and Lancashire. 1702 a critical turning point occurred when Thomas Cotchett and George Sorocold built a silk mill powered by a waterwheel at Derby. Their mill was probably Britain's first factory, for it was a single establishment with complex machinery, a source of power and accommodation for workers.

Industrial Revolution in Britain

Machine production was the answer; it would be faster, cheaper and more uniform in quality; the machine was needed to make large scale marketing possible. Textile machines were invented and improved in Britain to increase the speed of spinning and weaving. The first key innovation was the fly-shuttle, invented by John Kay in 1733. On the hand loom the operator pulled the shuttle carrying the woof from one side of the warp to the other. Kay used hammers which propelled the shuttle back and forth between the warp threads. In 1764, James

Hargreaves invented the spinning jenny, which increased productivity per worker by a factor of eight.

In 1761, the Society for the Encouragement of Arts and Manufacturies offered a prize of £50 for a spinning machine that could turn fiber into yarn and replace the hand-operated jersey wheel. Numerous inventors tried their hand; in 1768 Richard Arkwright (1732-92) employed John Kay, a clockmaker from Warrington, to help build wooden models. In 1769 they invented the water frame, which passed the carded cotton between successive pairs of rollers, each pair in turn revolving with greater velocity, so that a great number of threads of any degree of fineness and hardness could be drawn. The spun thread was now strong enough to be used as warp. At first he relied on water power, but as the machinery grew more complex he turned to steam engines for power. Arkwright made a great fortune from his patents. While his role as the main creator of the factory system has been exaggerated, Arkwright was remarkable in his ability to adapt other people's techniques, raise funds from investors, and persevere with his vision of a mechanized textile factory. His Arkwright network of mills across Britain employed over 5000 workers by 1782. In 1779 Samuel Crompton combined the Hargreaves and Arkwright ideas into the "muslin machine" (or "spinning mule") which could spin yarn for making muslin (until then imported from India). Originally known as the muslin wheel, or hall-in-the-wood wheel, in 1785, Dr. Edmund Cartwright invented the first power loom, which mechanized weaving operations and eventually developed into the modern power loom. In 1794, Eli Whitney, an American, patented the cotton gin, which separated the cotton fibers from the seeds, making short-fiber cotton grown in America the major raw material for the first stage of the industrial revolution. Between 1781 and 1791 imports of cotton into Britain quadrupled, reaching 100 million pounds in 1815 and 263 million in 1830, and kept growing until the supply was cut by war in 1861. In 1811 Britain saw more than 5,000,000 spindles at work, of which 310,500 used the Arkwright principle, 4,600,00 that of Crompton's mule spindle, and 156,000 that of Hargreaves's jenny.

In 1751, Britain exported £46,000 of cotton cloth; by 1800 this had soared to £5.4 million and by 1861 to £46.8 million. The cloth made for cheaper and better quality clothing, and was in demand across Europe and the world.

Decline of British industry

Britain lost its status as a major textile manufacturer in the course of the 20th century, and especially during the period 1950-65. Singleton, (1990) explains the decline by looking at the attitudes of mill owners and trade union members of the Lancashire cotton industry toward the future of the industry during the period 1945 through 1965. Both groups held a pessimistic view of the industry's prospects, largely due to increased international competition, especially

from Japan and the Far East. This attitude prevented needed modernization of factories and changes in labor practices. Those reforms that came in these two areas were intended to slow, rather than reverse, the contraction.

The roots of the decline go back further according to Robertson, (1990), which examines the attitudes and actions of British cotton textile manufacturers toward Japanese competition during the period 1911 to 1937, centering on Lancashire millers. Prior to World War I, Lancashire's cotton industry paid little attention to Japan's textile industry. The interwar period brought decline in Britain's overseas cotton trade, especially in India and the Far East, with the blame placed on political and economic problems in India and China rather than on the growth of Japanese textile exports. British criticism of Japan started and grew through the late 1920s and early 1930s, as Japan's technical improvements in the cotton industry and devaluation of the yen placed British millers at a disadvantage. The Lancashire millers tried to work through various business organizations and the Chamber of Commerce to promote government action; however the industry reform plan of Sir William Preston was rejected by the cotton industry in 1936, recognition by Britain of the superiority of Japanese textile manufacturing.

United States

The United States followed the British lead, using stolen blueprints and illegally immigrating engineers. Samuel Slater (1768-1835) of Rhode Island pulled American cotton-spinning technology by constructing carding, drawing, and roving machinery, and by determining the operating and gearing ratios necessary to use water power. By 1850 the American had built their own industrial revolutions around textiles, and use of abundant water power in New England.

Asia

Hall, (1996) argues that between 1400 and 1800, South Asian textile production adapted to economic and cultural cycles and was never displaced by cheaper or higher-quality foreign imports, coming mainly from India. The example of Bandjarmasin, an important Borneo port, demonstrates the dynamic between upstream and downstream communities in a changing economy, the role of the arrival of Islam in the islands of Southeast Asia, and the interplay of international trade and the local textile industry. The growing European presence in the region was only one factor in the developments during this period.

Japan

The development of light industry, chiefly cotton spinning and other textiles, was the prototype of the large, modern corporate enterprise in Japan. Central to these firms' development was the practice of promoting from within, particularly in the case of top-level directorships, and the allocation of resources to the factory. Despite static markets and slow distribution processes, organic understanding of market demands and the threatened competition of Western enterprises forced companies to develop efficient organizations and product diversification, leading major firms toward successful prewar growth. Park and Kym (1991) study the rise and fall of the Japanese textile industry between 1874 and 1985. Producers of textiles and clothing in advanced industrial economies were the first large group of manufacturers who went into a decline as a result of import competition from newly industrializing economies. Because of the intensive use of unskilled labor in the textile industries and the relative scarcity of such labor in more advanced economies, the advantage inheres in undeveloped countries.

Tsurumi, (1988) and Tsurumi, (1990)discusses the role of Japanese women and girls in the silk reeling and cotton spinning industries that were the mainstay of the Japanese industrial revolution beginning in 1868 with the Meiji government. Young women were encouraged to reel silk for the sake of the nation. In the 1870s rich families participated in the industry but severe financial difficulties in a changing government during the 1880's ruined many businesses. Longer hours and a general deterioration of conditions was the general trend in the silk reeling industry. Distressing songs relate the plight of the young women who left their homes not for the good of the country but out of necessity for economic survival. These women's families made up 83% of the population but received only 50% of the country's household income.

China

In 1890 the first cotton textile factory was established in China, marking the beginning of textile modernization in China. For the period 1890-1937 China was unable to maintain control over the industry, which for the most part was controlled by foreign investors. This was due in part to China's lack of capital and managerial knowledge and techniques, which were supplied by such countries as Japan and Great Britain. However, the industry greatly expanded during this period and had vast influence on the Chinese economy. The new factory system resulted in a move from small-scale family production to mass production. It also accelerated urbanization since the factories required concentrated masses of laborers. Chinese cotton seed was improved by the importation of American seed. Since the textile industry was

the largest in China and employed one-fourth of the labor force, it had repercussions on the traditional society. The textile industry also formed the basis for labor movements and collective bargaining and strikes.

India

The "deindustrialization" of the Indian economy and of India's textile industries in particular, is the subject of a major historiographical debate. While some scholars have claimed that colonial rule permanently undermined indigenous production, others have argued that handloom weavers were able to adjust to colonial conditions and therefore carved out new niches for themselves. Hanretty (1991) examines handloom weavers in one part of India, an area that is now Madhya Pradesh, between 1800 and Indian independence in 1947. Eschewing a simplistic attachment to either of the two main positions, Hanretty shows that while handloom weavers as a group faced great competition in the mid-19th century from imported cloths, some specialist producers were able to cope better than others, mainly because of their production of specialized products and the security given them by enhanced caste status. The real challenge came in the 20th century as India's own mills subordinated weavers to middlemen as the former became more dependent on mill-spun yarns.

When the British left India in 1947, the economy was only slightly more industrialized than when they had taken formal control nearly one hundred years earlier. Wolcott (1997) asks, were they responsible for the lack of development, Two strains of argument suggest they were. The first, primarily associated with Amiya Bagchi, faults the British for not giving sufficient protection to domestic industries. The second, associated with Morris, faults them for not investing in infrastructure - specifically the capital market and education. This article reexamines the development of cotton textile production, the most important factory industry in colonial India. There is no evidence that any of these factors contributed significantly to the slow interwar growth of the industry. Thus, Wolcott concludes, there is no basis for arguing that a national government could have speeded up development. The problems were imbedded in the structure of the labor market, beyond the control of any government.

By the end of the 19th century, domestic wool production in India was experiencing a transformation that was largely attributable to colonial rule. Arable land which pastoralists needed for their sheep was becoming less available; hence, wool production tended to become concentrated in areas where there were more opportunities for grazing. Railways were important in helping to transform weaving from a small-scale household-centered activity to larger factory production. Competition from imported wool led to greater specialization in weaving and spinning, and encouraged the production of finer cloth. These transformations, of which the most important seems to be the loss of common grazing lands, have continued in

postcolonial India. Shah (2001) examines the growth of an industrial working class in Ahmadabad, chief city of Gujarat. In textiles, the most important industry, new recruits were chiefly lower-caste landless agricultural laborers and handloom weavers - men, women, and children. Despite strikes against long hours and low wages, caste identity remained strong, and stable, effective trade unions were not achieved.

CHAPTER-3

COMPANY PROFILE

BRFL is a vertically integrated textile company, engaged in the manufacture of a wide range of fabrics and garments from state of the art production facilities. Apart from being the largest Shirt manufacturer in India, BRFL have successfully evolved into a multi-fiber manufacturing company producing fabrics such as Cotton, Polyester, Tencel, Modal, Lycra, Wool and various blends. Our yarn dyed fabric, printing techniques, finishing, processing, weaving, stitching are a mark of excellence making every piece of fabric perfect. BRFL is today one of the most sought after brands in the Indian as well as International fashion markets.

ORIGIN

BRFL was incorporated as Mudra Fabrics Private Limited (MFL) on May 21, 1992. On October 13, 1992 our Company was converted into a public limited company. Subsequently, on September 30, 2004, name of our Company was changed to Bombay Rayon Fashions Limited (BRFL). In March 2005, with a view to consolidate business of our Group, Bombay Rayon Private Limited (BRPL) was amalgamated with our Company and two partnership firms of the Group, i.e., B R Exports and Garden City Clothing was taken over by BRPL and our Company respectively.

HISTORY

The Bombay Rayon Group started in 1986 with the incorporation of BRPL. The Group is in the textile industry having facilities for manufacture of fabrics, garments, design development, sampling etc. Presently, our Group is engaged in carrying out the activities of manufacture of fabrics for domestic sale and export and manufacture of garments for export. The Bombay Rayon Group was promoted by Mr. Janardhan Agarwal. Subsequently Mr. Aman Agarwal and Mr. Prashant Agarwal, sons of Mr. Janardhan Agarwal joined the Group and are now in charge of the management of the Company as well as our Group companies.

CONSOLIDATION OF BUSINESS

With the incorporation of BRPL in 1986 the Bombay Rayon Group started its operations. However, within the Group other companies were incorporated and partnership firms were formed to carry on various aspects of the business like manufacture of fabric, sale of fabric in domestic and overseas markets and manufacture and sale of garments. The Corporate Consolidation With an objective to consolidate business of the Bombay Rayon Group, it was decided to merge all the group companies and firms into one corporate entity excepting Reynolds Shirting Private Limited, which is eligible for tax benefits at Silvassa and Bombay Rayon Clothing Limited.

Amalgamation of BRPL and BRFL With a view to strengthen our operations so as to grab the opportunity arising out of removal of quota restrictions from January 1, 2005 it was decided to amalgamate BRPL with BRFL.The amalgamation will reduce the overlapping business amongst our Group apart from giving synergies in manufacture of woven fabric and sale thereof in both domestic and overseas market. The Bombay High Court had vide its order dated March 11, 2005 approved the Scheme of Amalgamation of BRPL with BRFL effective April 1, 2004.

Takeover of the group partnership firms To further strengthen our operations and corporate structure and to move up in the value chain by entering into the business of garments export, which is expected to show manifold increase in the post quota regime we decided to take over the businesses of Garden City Clothing (GCC) and B R Exports, our Group partnership firms. Consequently, GCC and B R exports were taken over by BRFL and BRPL respectively with effect from March 1, 2005. After the amalgamation of BRPL with BRFL all the three entities, i.e., BRPL, GCC and B R Exports have merged into our Company resulting into consolidation of businesses from fabrics, design development and Garments under one corporate roof.

MILESTONES

Established in 1986, BRFL is on the verge of completing 25 glorious years in the Industry. The journey of our organization has been dynamic.

1986: Mr. Janardhan Agarwal establishes the Bombay Rayon Group.

1990: Maharashtra gets its first fabric manufacturing facility.

1998: Bombay Rayon group commences export of fabrics.

2001: Launch of the Garment Division.

2005: Bombay Rayon Groups business is consolidated into BRFL.

2005: The Company makes a successful IPO with a listing on all the stock exchanges in India.

2005: BRFL acquires DPJ Clothing UK, supplying to high street retailers in UK.

2005: Set up of 7 garment manufacturing facilities in Bangalore with around 7000 machines.

2007: BRFL acquires "Leela Scottish Lace", one of the largest garment manufacturing units set up in India, making BRFL one of the largest apparel groups in India.

2007: BRFL acquires "LNJ Apparel" a 1000 machine specialized bottoms plant.

2007: BRFL marks the commencement of the mega USD 250 million Textiles and Garment Project under a special MOU signed with the government of Maharashtra.

2007: BRFL establishes a fully integrated textile mill in Doddaballapur, Bengaluru with a capacity to process 1 lakh meters/day.

2008: BRFL acquires the iconic brand “Guru”.

2009: BRFL is sanctioned the project under the Scheme for Integrated Textile Park (SITP) by the Govt of India.

2010: BRFL establishes the world’s largest fabric processing capacity of 5 lakh meters/day at Tarapore.

2010: BRFL acquires STI India Ltd, a world class producer of 100% cotton yarn.

MISSION

BRFL, aim to become exclusive and efficient with the newest designs and consistent fabric quality. Its goal is to provide the shortest turn-around time in production and supply. BRFL strive towards better employee work culture, 100% customer satisfaction and stronger supplier and stakeholder relations.

VISION

To be a Complete Fashion Apparel Company focused on Total Customer Orientation, attaining a Position of Pride for stakeholders through creation of Congenial Business Environment, offering Products and Services Par Excellence.

BOARD OF DIRECTORS

Chairman Mr. Janardhan Agarwal Vice Chairman Mr. Aman Agarwal Joint Vice Chairman Mr. Naseer Ahmed Managing Director Mr. Prashant Agarwal

Executive Director- Finance Mr. A .R. Mundra, Executive Director- Corporate Mr. Uday Mogre Directors Mr. B. S. Bhesania Mr. S. B. Agarwal Dr. Pravin P. Shah Nominee Director, EXIM Bank Mr. John Mathew

PEOPLE Since its inception almost 25 years ago, BRFL has grown manifold. BFRL dedicate and share journey to success with the people within the organization. With a hardworking work group of over 38,000 employees, BRFL have been blessed with a fabulous team of leaders to initiate healthy work cultures, competitive standards and consistent quality. BRFL have always maintained a functionally organized infrastructure keeping employee satisfaction in mind. And in return, people have profusely contributed towards the growth of BRFL.

SUBSIDIARIES & JOINT VENTURE

i) Bombay Rayon Holdings Limited (BRHL). BRHL holds 100% equity of foreign subsidiaries BRFL Europe B.V., Netherlands & BRFL Italia S.r.l., Italy. BRFL has registered a net profit of ` 92.07 lacs for the year ended March 31, 2011.

(ii) DPJ Clothing Ltd, U.K. DPJ Clothing Limited is engaged in business of wholesale marketing and distribution of clothing Products. The said subsidiary is assisting in getting many mid size retailers of Europe by providing the services either by direct import or by import and delivery basis. Company continued to reap benefits in expanding its business in Europe.DPJ Clothing Ltd has registered a net profit of ` 199.61 lacs for the year ended March 31, 2011.

(iii) BRFL Europe B.V., Netherlands. BRFL Europe B.V at Netherlands continued to play an important role for canvassing the business, services to customers on products and designs. BRFL Europe B.V. has registered a loss of ` 49.95 lacs for the year ended March 31, 2011.(iv) BRFL Italia S.r.l, Italy. The Company owns the popular ‘GURU’ brand and is into the business of retailing of readymade garments as well as other accessories in Europe. BRFL Italia S.r.l, Italy has registered a net loss of ` 4455.11 lacs for the year ended March 31, 2011.

(v) STI India Limited (STI). After acquiring majority stake in STI, your Company has run the business for 4 months and for the year ended March 31, 2011, STI has registered a net profit of ` 1690.66 lacs ended March 31, 2011.

(vi) BRFL Bangladesh Private Limited (BRFL Bangladesh). The Company has been incorporated but operations yet to commence. In accordance with general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The necessary disclosures are made in respect of the subsidiaries in this Annual Report along with the statement pursuant to Section 212 of the Companies Act, 1956. As required by Section 212 of the Companies Act, 1956, the Statement of holding in subsidiaries and Consolidated Accounts pursuant to Accounting Standard (AS 21) issued by the Institute of Chartered Accountant of India, including the financial accounts of the subsidiary companies are forming part of the Annual Report. The Annual Accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies.

TECHNOLOGY

Technology is the most important tool to improve efficiency and hence productivity. We have rigorously kept up to date with the latest in the International markets. Having partnered with Datatex and SAP, BRFL has implemented a companywide Enterprise Resource Planning tool (ERP) to cover all textile and garmenting processes under one roof.

Datatex: a specialist in the Textile and Garment industry is used in over 11,500 workstations in 14 different languages in 38 nations, including some of the world's largest and most important textile manufacturers.

SAP: SAP brings the financial expertise through their SAP FICO module. The ERP sits on the state of the art IBM servers, in fully redundant in-house Data Center in the Doddaballapur facility.

INITIATIVES

Social

We are committed to giving back to the society. Our employees in the factory or office are of utmost priority. We strive to provide them with a sound work environment.

Certifications:

Organic Cotton: This certification ensures the organic status of textiles. From raw materials to production, processing, manufacturing, packaging, labeling, exportation, importation and distribution of all natural fibers through environmentally and socially responsible work standards.

Fair Trade: A company is Fair Trade Certified when their products meet environmental, labor and developmental standards, set by FLO International and FLO-CERT. Independent auditing of producers, ensure that employees receive minimum wages and bargain collectively, ensure no forced or child labor and ensure health and safety requirements.

SA 8000: A global social accountability standard, developed by the global accreditation agency - SAI (Social Accountability International). SA 8000 certification ensures decent working conditions, checks the presence of ay forced or child labor ensures Health and Safety, Freedom of association & right to Collective bargain, work discipline, working hours, compensations and more. SA 8000 offers workplace standard training to managers, workers and auditors

ISO 14001: An Environmental Management System (EMS), ISO 14001 is a tool to manage environmental impact of an organization. It assures that the organizational processes are in sync with the environment, work standards are employee friendly, environmental reach to external stakeholders like customers, community and regulatory agencies, support the organization’s environmental plans, policies and actions.

Quality

Quality is our promise and we endeavor to match all International standards.

ISO 9001: This certification aims towards improved customer satisfaction, for which an organization needs to meet their requirements. ISO 9001 is an organizational framework, tried and tested towards a systematic approach. It sets standards for internal processes of an organization for consistent quality products.

Ocko-Tex: This voluntary testing and certification system is based on the individual responsibility of the manufacturers throughout the textile processing chain. It provides the

evidence of the quality of already certified source materials, guarantees the processing

techniques, dyestuffs and auxiliaries, recipes and material compositions. Technical Initiatives

Bombay Rayon Fashions Limited has partnered with Datatex and SAP to implement a companywide Enterprise Resource Planning tool (ERP) to cover all textile and garmenting processes under one roof.

Datatex specializes in the Textile and Garment industry. Today there are over 11500 workstations using Datatex ERP in 38 countries in 14 different languages. Its customers include some of the world’s largest and most important textile manufacturers. Datatex serves its international customers through its offices in Italy, Israel, the USA, Germany and Switzerland.

The Financial expertise will come from SAP through their SAP FICO module. The ERP will sit on state of the art IBM servers which will be housed in fully redundant in-house Data Center in the Doddaballapur facility.

CORPORATE VALUES

• BRFL committed to actions to restore and preserve the environment. They are committed to developing safe and clean technologies using the best environmental practices. They are committed to minimizing waste and pollutants, conserving resources, and recycling materials at every stage of the product life cycle. They will continue to work with customers and public authorities, vigorously pursuing the development, and implementation of improved technologies and products by minimizing their impact on the environment. They will develop effective methods and procedures, and will promote a culture in which all employees share this commitment.

• In this way, BRFL aim to have an environmental performance they can be proud of, to earn the confidence and respect of customers, shareholders, and society at large, and to contribute to sustainable development.

BRAND IMAGE

Since 1986, Bombay Rayon has been the name India relies on for clothing that fits the active Indian spirit. Bombay Rayon provides apparels that are inspired by the five basic elements that make-up our atmosphere and the garments do perform. Exclusive construction details and only the finest fabrics ensure our patrons will be equipped to take on whatever

challenge comes their way. I have always wanted our customers to head out in the adventure of their lives in the brand that has made living and lifestyle great for nearly two decades… Bombay Rayon.

ESTEEMED CLIENTS

• BRFL Italia• In April, 2008, the Company has acquired the Brand ‘Guru’ and other retail business of

Jam Session Holding S.r.l (Jam) through BRFL Italia S.r.l. (BRFL Italia), a company promoted by BRFL Europe B.V, a wholly – owned subsidiary Bombay Rayon Retail Limited. The holding Company of these Companies is Bombay Rayon Fashions Limited.

• ‘GURU’ is an established up market Retail Brand with substantial goodwill.• ‘Guru’ has 15 retail stores/outlets and 9 franchises spread all over Europe mainly in Spain,

Italy, Netherlands and in Dubai.• Importing goods for U.K. market our subsidiary; DPJ Clothing Ltd supplies goods on LDP

basis to high street fashion retailers and offers advantage of latest design trends globally.• Federated Stores – U S A• (Macys & Bloomingdales)• V F (WRANGLER) – U S A • Liz Claiborne – USA• DKNY – USA• ECKO – USA• MARK ECKO – USA • Guess – Italy • Roberto Cavalli – Italy• Tom Tailor – Germany • Otto’s – Germany & Switzerland

BRANCHES

BRFL have 4 powerful Commanders handling Operations of the Entire BRFL Bangalore Units.

• Mr. Varghese : Handles Unit 1, 2, 4, 6, 10 , 16• Mr. Mohanty : Handles Unit 7 & 9• Mr. Sharad: Handles Unit 5, 13, 17, 18, 19 & 22. • Mr. Ajith: Handles Unit 11, 12, 14, 15, 20 & 21.

UNITS

• Unit-1No. 57/A, III Phase, Peenya Industrial Area, Bangalore- 560 058.it-1No. 57/A, III Phase, Peenya Industrial Area, Bangalore- 560 058.

• Unit- 2No.288, 4th Phase, Peenya Industrial Area, Bangalore- 560 058.• Unit 3Sy.No 53/10, Behind Swami Service Station, 19th K.M, Madavara Post,

Madanayakanahalli, Tumkur Road, Bangalore – 562123.• Unit 4No.471-D2, IV Phase, Peenya Industrial Area, Bangalore -58• Unit 5No 151, Babasabarapalya, Mysore Road, Kengeri, Bangalore – 60• Unit 6No 19, 3rd Cross, Raghavendra layout, Yeshwanthpur, Bangalore -22• Unit 7#S-16, 17 & 35, 36, Arenahalli, Guddadhahalli, KIADB Apparel park,

Doddabalapura – 561 203.• Unit 8# 27/A, KIADB, Bidadi Industrial Area, Bangalore – Mysore Road, Bidadi,

Bangalore – 562 109UNIT-10A498, 4th Phase,3rd stage , Peenya Ind. Area, Peenya, Bangalore – 50058

• UNIT-10N2, 4th Cross, 1stage, Peenya Indl. Area, Bangalore-560058• UNIT-1158, 4th Main, 2nd Cross, 3 rd Phase, Peenya Indl. Area, Bangalore-560058• UNIT-11B58, 4th Main, 2nd Cross, 3 rd Phase, Peenya Indl. Area, Bangalore-560058• UNIT-1285/0, 2nd stage, Industrial Suburb , Yeshwanthpur, Bangalore-560022• UNIT-13505,12 th Mile, Mysore Road, Bangalore –560060• Unit – 14 , 42/2, 1, Industrial Suburb, Yeshwanthpur, Bangalore – 560022• UNIT-15No.40, 4th Main Road, 3 rd Phase, Peenya Indul. Area, Bangalore –560058• UNIT-1672/2, S.R.S. Road, Peenya village, Bangalore- 560058• UNIT-2085/0, 2nd stage, Industrial Suburb , Yeshwanthpur, Bangalore-560022• UNIT-2185/0, 2nd stage, Industrial Suburb , Yeshwanthpur, Bangalore-560022

STRENGTHS

• BRFL is the leader in the Industry • Bombay Rayon manufactures one of the most versatile and technically advanced fabrics

and apparels in India. • Presently, BRFL is the largest shirt manufacturer in India. Fabric manufacturing facilities

are 50 million metres per annum. Garment manufacturing facilities are 35 million pieces per annum.

• BRFL currently employs over 32,000 people.

AWARDS

BRFL was aptly honored as the 'largest shirt maker in India'. BRFL also received Dun & Bradstreet - Rolta Corporate Award as one of India's top 500 companies. BRFL’s Doddaballapur mill won the Prestigious National safety Award for "Outstanding Performance in Industrial safety as winner for the performance year 2008 based on the lowest average frequency rate." This award was presented by Mr. Mallikarjuna Kharge, honorable Minister for Labor and Employment - Government of India which was received by our Vice President Mr M Gopi on 27 Sept 2010 at New Delhi.

UNIT PROCESS FLOW

CHAPTER-4

PLANT MANAGER

PRODUCTION MANAGER

CUTTING INCHARGE

INDUSTRIAL ENGINNER

QA MANAGER

SORTING

CUTTERAPM MAINTENANCE

INCHARGE

FLOOR INCHARGE

SUPERVISORS

MECHANIC

ELECTRICIAN

BOILER OPERTATOR

FABRIC

STORES

FINISHING MANAGERSTORES

QC INCHARGE

TEAM 1 TEAM 2

HR MANAGER

QC SUPERVISOR

HR ASST NURSE

WELFARE OFFICER

IRONING

SUPERVISOR

CHECKING

SUPERVISOR

PACKING

DESPATCH-SUP

KAJA BUTTON

SUPERVISOR

ORGANIZATIONAL CHART

CHAPTER-5

BOARD OF DIRECTORS

MANAGING DIRECTOR

DIRECTOR -GARMENTS

PRESIDENT-GARMENTS

V.P.-GARMENTS MARKETING

V.P.- FABRICS EXPORT

Sr.MANAGER-

FABRICS MARKETIN

G

V.P.-DOMEST

IC MARKETI

NG

Sr.MANAGER

- DESIG

N

Sr.MANAGER- DESIGN

VICE CHAIRMAN

PRODUCT PROFILE

Production is the process where the raw materials transferred into finished goods. In BRFL the raw materials are cotton, threads, buttons etc., The main products of BRFL are;

Fabric Every thread woven at Bombay Rayon Fashions Limited is a part of an incredible range of fabrics that BRFL has to offer. Each fabric has one inherent quality - Comfort. BRFL’s promise to manufacture the finest fabrics inspires them to put in that extra effort to create magic. They showcase an enormous range of fabrics and size offerings available in various colours to suit every occasion and every budget.

  BRFL have in-house multi fiber capabilities to produce pure fabrics and their blends. BRFL’s motto is "Contemporary clothing for the new gen!" BRFL fabrics offer an extensive range of men’s styling. They are the leading Indian fabric manufacturers and suppliers in the Domestic markets as well as International Fashion Export Industry.

Apparel Comfortable, durable and stylish are the inherent qualities of the range of apparels available. Admiration is guaranteed with BRFL apparels. Apparels from Bombay Rayon Fashions Limited are a creative exploration of the same comfort brought in by BRFL fabrics. Whether any of need a uniform for the team, a gift or program item, they will offer just the right look and feel for a corporate or a casual event. Tailored with fine detailing to create a style that suits y, BRFL spend a lot of time and effort in bringing innovations in our apparels. The corporate collection is designed with easily complementing colours and styles that any combination pick would match. And the best part is BRFL are priced ‘right’.

Retail Guru, a renowned apparel brand in Italy has been a subsidiary of BRFL since 2008. Guru has stores in 18 countries around the World, including Italy, Spain, France, Germany, Holland, Belgium, Luxemburg, Greece, England, Portugal, the Middle East, Turkey, Russia, Ukraine, Austria, Switzerland, the Canary Islands, Scandinavia, China and India.

Trims With an initial goal to maintain quality and consistency in button manufacturing, BRFL has set up an in-house state of the art button manufacturing unit, the Trims Division is today the largest and most sophisticated Button Industry in India. We have a huge collection of polyester buttons of the highest quality. This includes buttons for shirts, coats, outer wear, trousers and

fancy buttons. Our buttons are pre dyed and free from banned elements like Azo, Lead, Cadmium, Phthalate and meet the Oekotex-100 Class 1 standard.

 Yarn

In 2010 Bombay Rayon Fashions Ltd. completed its vertical integration in the textile industry with the acquisition of a yarn manufacturing company of great repute, STI India Ltd, thus making BRFL one of the privileged few to have the capability of producing everything from yarn to garment. Yarn division is well known for Production of world class cotton yarn and knitted grey fabric, quality consciousness, fair business practices, modernization, environmental consciousness, social awareness, ultra-modern plant equipped with sophisticated high-tech machinery and high calibre personnel & a great work culture.

Strengths and features of our yarn and knitted products are procurement of high quality cotton fibre for 4-6 months in advance, every bale of Cotton fibre is tested for Length, Micronaire, and Rd (Reflective Index) value for making homogeneous and uniform mixing to avoid shade variation and barre effect in fabric. We have controlled yarn contamination by implementing systematic and controlled raw material sourcing, manual contamination sorting with scientific method, eight VISION SHIELD machines with POLY PROPYLENE identification system in blowroom lines and Electronic yarn clearers with foreign fibre/contamination cleaning facility (eg. 'Siro' clearer or 'Quantum' Clearer).

BRFL have Tandem cards (Double Carding) machine, which gives good quality of super carded and super combed yarn with very low tolerable objectionable classimate faults, which in turn gives more consistent and better fabric appearance. All yarn is 'Xorella' saturated steam conditioned for ensuring even moisture level at every layer of the yarn which gives better results during knitting and weaving. Samples from all lots of yarn are tested, knitted and dyed to ensure consistent and right quality before shipment to customers. BRFL’s yarn products are 100 % Cotton Combed Yarn, 100 % Organic Yarn, 100% Organic Yarn under fair trade and 100% cotton yarn under fair trade.

CHAPTER-6

MERCHANDISING DEPARTMENT

Merchandising is a process through which products are planned, developed, executed and presented to the buyer. It includes directing and overseeing the development of product line from start to finish. Marketing and merchandising department: A team of merchandisers and marketers work together under a profit controls head. Merchandisers handle the foreign buyers. The teams are made according to the buyers being handled.

A Merchandisers key responsibility is as follows:-

Product Development Market and product Analysis Selling the concept Booking orders Confirming Deliveries Designing and Sampling Costing Raw Material Flow Monitoring Production Follow Ups Payments Follows

In an export house, merchandising is a combination of business and technical aspects. Senior merchandisers have responsibilities of products development and coordinating with the buyer, the garment styles that meets buyer’s expectations in regards to delivery, quality, and price point. Junior merchandisers have the responsibility of handling paper work and follow up, detailing with buyers, overseas communication etc. Once the order is placed it is their duty to complete the necessary paper work, provide breakdown information to all other department and get samples approved for fit, color and quality. Communications with overseas and domestic suppliers, approval of production samples, and development of fabric and yarns are also included in product development, which are co-coordinated with other departments. Merchandisers have to negotiate with the buyers on pricing, work out delivery schedules, and investigate for future buyers. Overall we can say that merchandising is the core department of the entire industry.

COSTING

Start

Obtain tech pack from buyer

Sampling

Analyze fabric consumption from

CAD

Analyze cost of trims and fabric

Obtain general sewing data from

IED

Prepare cost sheet from sample

Develop sample as per the tech pack

Develop proto sample

Cost sheet & sample sent to buyer for approval

Approval Cost sheet reworked

Confirmation of order

Obtain PCD & details from

production unit

Source trims & fabric from

concerned dept.

Book washing & embroidery capacity if

required

Obtain GSD from IED

Costing

NoYes

The most important activity for the merchant is to estimate correctly and negotiate for the cost of production before the buyer sends on his PO .During the pre-development stage an initial costing occurs to get an idea of the garment cost likely to be incurred per piece.

These costs includes general raw material cost, manufacturing cost, washing cost, markup cost etc. Once the production sample is approved and the grading done a final costing is done accurately using fabric averages from the CAD, cost of trims etc.

In BRFL costing is done from the Bombay branch.

HIERARCHY OF MERCHANDISING DEPARTMENT

MANAGING DIRECTOR VICE CHAIRMAN

PRESIDENT

CHAPTER-7SAMPLING DEPARTMENT

In any export house, the sampling department is one of the most important departments and it plays a vital in the uplifting of a unit.

Sampling department directly co-ordinates with the merchandising and production department. Sampling is done to see how the product will look like when produced in bulk and to check whether there are any discrepancies in the pattern are made according to the buyer’s specification.

Merchandiser procures order from the buyer. The buyer sends spec sheet, sketches, fabric details, embellishment details, stitch type etc to the merchandiser. Merchandiser files this information along with the details regarding costing, average, proto, fit, correction, size set and approval in to a style package and hands it over to the Sampling department head.

Sampling is the product development stage. It is a process by which a small number of garments are made so as to match the buyer requirement and to get approval from the buyer so as to start off the production. The sampled garments represent the accuracy of the patterns and quality of production skills and techniques. The samples not only serve the purpose of communicating correctly with the buyer regarding their styles and products, but it also helps to calculate the fabric consumption along with that of thread and other accessories used.

It is different from bulk production as here each tailor is multi skilled. This department makes samples on the basis of specifications and requirements sent by the buyer in the tech pack.

TYPES OF SAMPLES

Proto Sample Fit Sample Pilot Run Sample Pre Production Sample Pre Size set Size Set TOP Sample Shipment Sample Sales Sample

MACHINE DETAILS

There were a total of 300 machines in the sampling department.

250 operators 5 cutting tables 8 pattern making tables 1 conveyor belt fusing machine

FINISHING MACHINES

11 ironing tables 1 shirt folding machine

THE DETAILS ATTACHED TO THE GARMENT SAMPLE

After the confirmation of order, each sample sent to the buyer has the following details attached to it, with the help of a tag. It contains the details pertaining to both, what the buyer has demanded and what supplement fabric/trim etc they have used (if applicable).

Ref no. Color Fabric Composition Description Quantity Style no/ Size Store

WASHING SECTION Once the garment has been finished with all the operations then they are sent to the washing department for the washing or finishing that has to be done for that particular style according to the buyers specifications and hence it plays a vital role in the final feel and the texture of the garment which has to match the specifications of the buyer 100%.

The merchandiser after getting the sample done, they bring the original sample that will be sent to the merchants by the buyer and they will also get the sample done in the factory and

then they show both the samples and the specifications and ask the washing department to match the factory sample with the buyer sent sample with respect to the feel and the texture, for this the merchandiser himself/herself comes to the washing department in case of samples.

The washing unit will now check the garment for the different aspects like, Type of the material. The texture that is under demand. The feel and look of the garment under demand. Types of labels that are been used in the garment. Dye stuffs used for the garment (if it is a colored fabric). Dye / ink used in the labels that are being attached to the garment. Types of threads used for in sewing. Types of chemicals that should be used to get the desired finish. The after effects of those chemicals on the fabric. The sensitivity criteria of the fabric. The wet processes that has to be carried out to get the end product. The sequence of the processes. Temperature at which the garment has to be treated. Duration of the treatment.

After coming to a conclusion of what recipe has to be used for the garment they start treating the garments in the desired sequence.At first they segregate the garments based on shade wise, job wise and unit wise, suppose the garments which are white in colour and which have to be treated in the similar manner then such styles are clubbed together irrespective of their styles.

After this segregation washing is carried out as per the buyer’s specifications. In this washing there are two types.

1. Wet processing 2. Dry processing

First the dry processing is carried out and then the wet processing is been followed. In the dry processing there are four different types they are,

1. Grinding 2. Ripping or Blowout3. Sandblasting4. Crinkling

After the dry processing the next main thing which has to be done is wet processing. Wet processing involves mainly two types, they are

1. Dyeing: this is mainly done using two types of dyes which are reactive dyes and pigment dyes, these two dyes are more commonly used in practice and sometimes the usage of the dyes depends on the fabric and the buyer demands and requirements.

2. Washing process: After dyeing is finished the fabrics or the garments are taken to the washing process. There are different types of washing procedures involved and they are classified as follows,

Normal wash/ water wash / dip and dry Softener wash Resize wash Enzyme wash Stone enzyme wash Rubber ball wash Denim wash Bleach wash Tinting/ T- staining

Sometimes it so happens that some styles / garments do not demand for dyeing so at such situations they are sent directly to the washing process from the dry processing stage or else the original procedure that is followed in the company is that first the garments are sent to the dry processing and then from there to the wet processing where it is first sent to the dyeing and then to the washing process. After the entire process is done then it is followed by the hydro extraction where in which a specified lot of garments are put into the hydro extracting machine depending on the tumbler capacity and then the excess of water which had accumulated in the previous stages will be extracted by compressing the garment with the optimum pressure that has to be used for that particular style / garment. Then the garments are dried using the drier. After the garments are dried they are inspected by the inspection people and the inspection here is random it does not involve any organized way, any garment from the entire lot is randomly selected and inspected according to the criteria that will be specified to them by the merchandiser. Once the inspection is over the garments are sent to the finishing and the packing section or sometimes if the garments has to be attached with some accessories or trims after the washing and dyeing stages then such styles are sent to the production floor to finish the left over job on them and then sent to the finishing and the packing department. The washing department in this unit (Unit – 7) is the centralized one for the units located in Bangalore and its surrounding areas so the washing unit will be receiving the garments from different units for the washing purposes hence this department has to keep in track of the garments, quantity of the garments received, processes that has to be carried out for them, the

stage in which they are, duration required for the process to be finished for the garments according to the types of the washes prescribed for them, etc., hence this department maintains a record in which they fill in the details of the garment style number, PO number, item number, quantity received and the day and date of receivable. The department maintains these details both in the soft as well as in the hard copy format. The department will enter the details in the ERP. Whenever the washing unit receives or delivers the garment lot from the different units then the communication is mainly through the e-mails and also phone calls.

HIERARCHY OF SAMPLING DEPARTMENT

GENERAL MANAGER

QA SUPERVISOR

TAILORS

PATTERN MAKER

GRADERS

MARKER MAKER

CHAPTER-8PURCHASING DEPARTMENT

The purchasing department is similar to the sourcing department but the main difference is that the sourcing department works for sourcing the fabrics alone while the purchasing department works for sourcing the accessories and trims. However, the working procedure is the same. The merchandisers give the techpack and the BOM (Bill Of Materials) for a particular style to the purchasing department and the concerned person will start the further process and for costing purposes the in-house price is given like, the cost involved in the production and also the price involved for a unit involved with respect to the complete procedure involved for its production. This breakup given to the merchandiser by the purchasing department for the costing purpose, the cost sheet is made by the merchandisers and the order is confirmed by the buyer based on the cost sheet given by the merchandiser. After the order is being confirmed by the buyer the merchandiser will sit with the other concerned departments and then the exact quantity required and the breakup of the trims and accessories with respect to colour, size, MOQ, etc., will be given by the merchandiser to the purchasing department in the form of a sheet which is generally followed in the industry for all the orders irrespective of the buyer. Once the purchasing department receives this format, then the PO is sent to the concerned department for accessories and trims. Once the first shot of the raw materials is sent by the supplier then the lab dips is done and is approved by the buyer. After receiving the goods from the supplier they are checked for the quantity and also checked according to the inspection criteria specified by the buyer and replaced if any of them are not meeting this criterion. This department also keeps in track of all the quantities received in-house timely. The goods are generally received in breakups as suggested by the merchandiser according to the requirements stated by the planning and the production department and this breakups will have specified date and quantity and if this breakups is not being mentioned then the order is being placed with the supplier several times for small quantities and PO’s have to be sent all the time so, in order to overcome this a breakups are being is given. Then the purchase department has to follow up with the supplier for deliveries as and when the merchandiser asks for the new set of the materials for that particular style and then the department also has to maintain the receipts and also they have to maintain the documents of the inspections that are being carried out for those materials.

PROCEDURES

Merchandisers place the order along with the bill of material and cost sheet to the purchasing department.

Cross checking with warehouse Place the TRIMS order Sample to the buyer for approval Processing of orders Negotiate the price and lead time Purchase order Pre-order by audit report Approved by HOD PO copy send to the purchaser Conformation from the supplier Working for the follow up Get the material from the CWH Get the TRIM card for the approval Make material received note to the invoices and send to the accounts Payments follow up.

MAIN SUPPLIERS MADHURA COATS PASUPATHI SPINNING AND WEAVING MILLS POORNIMA AGENCIES EVERYDENNISSONS MANOHAR FILAMENTS A-TEX INDIA CRISTAL GOBAL GAME&CO. SHRI POLYBAGS ANU POLYMERS R.S IMPRESSION DYNAMIC INTERNATIONAL MERK PRODUCTS SARAL POLYMERS SUCCESS TRADING INDIA M.Y.CO.

HIERARCHY OF PURCHASING DEPARTMENT

DGM/GM

PURCHASE MANAGER

ASSISTANT MANAGER

EXECUTIVES

PURCHASE Asst

RUNNERS

CHAPTER-9

CENTRAL WAREHOUSE DEPARTMENT

Warehousing is the storage of goods for profit. The physical location, the warehouse, is a storage facility that receives goods and products for the eventual distribution to consumers or other businesses. A warehouse is also called a distribution center. Warehouse management is the process of coordinating the incoming goods, the subsequent storage and tracking of the goods, and finally, the distribution of the goods to their proper destinations.

In BRFL warehouse department is divided into three; they are

1. Fabrics

2. Trims

3. Quality

1. FABRICS When the materials are arrived in the central warehouse sub stores will receive fabrics from the CWH. Then the merchandiser will give the approval to fabrics. Then the fabric department will confirm the style, shrinkage percentage, and shade bands. After the shade wise segregation, 10 % AQL inspection (4.0 point system) is done by the department. If the materials are passed in the inspection, merchandiser will give approval to issue to the cutting department. Otherwise, report will forward to merchandiser and reprocess.

2. TRIMS The materials other than fabrics in the garments are known as Trims. It includes stitching items, packing items and general items.

1) STITCHING ITEMS:- It includes , Threads Labels:-Main label, Wash care label, Size label, Special label, Batch/ID label. Buttons:-on the basis of size and lining.

2) PACKING ITEMS:- It includes, Poly bag Collar patty Butterfly Carton

3) GENERAL ITEMS:- It includes stationery items such as pencils, cello taps etc.,The main functions of TRIMS departments are;

Bill of material updating. Issues by buyer wise, style wise and factory wise. Receiving of trims. Making daily goods receipt note. Making material receipt note. Quality and quantity checking. Preparation of trim cards. Approval from merchandisers. Submission of MRM to accounts.

3. QUALITY Quality is the promise and the endeavor to match all International standards.

HIERARCHY OF WAREHOUSE DEPARTMENT

CHAPTER-10

DGA

Sr.MANAGER FABRICS

Asst. MANAGER

SUPERVISOR

WORKERS

Sr.MANAGER TRIMS

Asst.MANAGER

CO-ORDINA

TORS

WORKERS

Asst.MANAGER

DOCUMENTATI

ON

WORKERS

Sr.MANAGER QUALITY

Asst.MANAGER

QUALITY CONTROLLER

WORKERS

PLANNING DEPARTMENT

Planning department has a vital role to play in the approval of the order and helps the merchants to determine the costing of a particular style and they also tell the merchants if the company is capable of producing the particular style in the given span of time and also helps them to know the capacity of the production floor.

On receiving the orders, from the merchants they start to decide the date for having the PP (Pre-Production) meeting with the departments which are directly involved which are, planning, production and the finishing departments. Then the department will allocate the style to the unit whichever has the capacity of completing the obtained project based on the line openings and also buyer’s specifications and the skill of labor required for it.

The planning department then calculates and plans the PCD (Plan Cut Date), Order Quantity, Sample, order breakup, operation bulletin, etc. with respect to the particular unit in which that particular order has been placed with.

The planning department takes the approval or sits and conducts a meeting with three other departments to come to end up giving a proper planning and scheduling dates for the particular style this will take about 10 – 15 days from the merchandiser approves the order that has to be followed.

Firstly, they take inputs from IED (Industrial Engineering Department) on productivity based on the garment details which includes, SAM value of the garment, number of components in the garment, type of seams, length of stitches involved in the garment, types of machines required to finish the garment, any specialized machine is required or not for the manufacturing of the garment, difficulties involved during stitching of the garment if it is of a complicated style and structure, the skill level required for the various operations of the garment and the ratio of the operators with respect to their skill levels required for manufacturing the particular garment for all the operations all together. Then they finally come to a conclusion about planning entire style.

Secondly, they confirm the details given to the concerned units i.e., they confirm the PCD, Order quantity, sample and other similar information from them in consultation with the GM and FM.

Thirdly, they confirm this consultation if it is the final decision and then they also get a confirmation from the embroidery, washing and finishing departments if the slots for the dates on which they have planned for those particular styles is available and then after confirmation they fix the particular dates on which the style has to reach the embroidery, washing and finishing departments.

After, a proper output has come from the PP meeting and there are proper confirmation obtained from the departments the planning department will confirm the order plan with the

merchants and then provide MIS (Management Information System) report to the management every fortnight, then they prepare a “Batch Commitment Sheet” and this sheet is prepared about 3 – 5 days before the cutting date. This commitment sheet includes the details regarding the batch that has taken up the job of producing the particular style, the quantity which they are committed to produce for a day and the labor details (which involves the number of operators and to which operation they are assigned to and they skill level will also be mentioned). This sheet will have to be updated once in a hour to know the hourly production of the batch.

Then there exists another kind of a sheet which is made that is a ‘Batch Variance Sheet”, this sheet is completely based on the Batch Commitment Sheet and in this sheet the updating of the style in the production floor is done and is given to the merchants on daily basis.

Then the planning department will follow up with the factory till the order is completely being executed and the entire order quantity is being shipped.

The planning department is responsible for the timely input of the raw materials to the production floor and they must make sure that none of the days the batch /sewing line must sit idle with a reason of raw material non-availability. The planning department keeps in constant touch will most of the departments like the IED, Finishing, Washing, Production, Marketing, etc., the communication within the different departments is done purely on the mail basis and sometimes through phone calls but any types of mails regarding the changes in the line of the style or any such modifying sort of a situation then the department maintains a hard copy of it for the future reference and confirmation.

RESEARCH AND DEVELOPMENT AND DESIGN DEVELOPMENT BRFL undertake continuous research and development activities with an objective to reduce operational costs and improve the efficiency of our plants. New design development and sampling is an important feature of our business and we accord importance since these are highly effective tools to convert business enquiries into orders. BRFL have our in-house research and development department constituted by designing unit and fabric development unit. Its designers come out with new designs and ideas based on the current trends in the international and domestic markets. The new designs are then sent out to laboratory for the various testing before the designs are released to the sampling unit for the further marketing and sales purpose. BRFL have an in-house team of experienced designers in weaving, garmenting and home textiles. It has also installed software packages / CAD / CAM systems for generating designs on computers. The weaving machines are connected to dobbys for design generation. On an average at least 4-5 new designs are developed on a daily basis in each of the divisions. Today BRFL have a library of over 10000 designs in weaving apart from numerous varieties of prints.

Start

On receiving the orders, allocate the same to units based on line openings and buyer’s

ratings

Provide details the respective units on PCD, order to quantity & sample

Confirm the above details given to concerned units in consultation with GM

& FM

Confirm in consultation with

embroidery, washing

departments

Confirm order plan with merchandising team

Provide MIS report to management every fortnight

Planning follow up with factory till order execution

End

Take inputs from IED on productivity based on garment

analysis

CHAPTER-11

CENTRAL MAINTENANCE DEPARTMENT

Apart from having quality system and the best practices,’ machine maintenance’ is also a very important are to get ‘quality’ products. Unacceptable quality of products often results ill-maintained machines. Breakdown and preventive maintenance is primarily aimed toward reduced downtime and increased life respectively. Proper machine maintenance is also necessary to avoid casualties at the floor.

PROCEDURES: Each factory will be provided the team of mechanics, electricians, needle boy and tack force personal headed by a floor maintenance manager.

The mechanics will be at a place provided at the middle of the lines with the team leader. Whenever the problem comes the concerned line manager or supervisor will come and

file the complaint in the register with the time The respective manager will allot the mechanic immediately or at an earliest based on the

availability of mechanic and write the response time in the register against the particular complaint.

The mechanic will go to the respective machine and start correcting the problem. The start and completion time will be mentioned in the job card and will sign by the line manager.

Then the mechanic will come to his place and close the complaint in the register by mentioning

The time same as in his job card and sign. At the end of the day the maintenance manger will analyze the report generated from the

complaint register. Based on the above the problem on the particular machine where more complaints are

arising, that machine will be checked by the senior mechanic with the respective maintenance manager and corrective action will be take accordingly.

For the above system each factory has been provided with the mechanics, 1 needle boy and 2 helpers.

Out of all mechanics few mechanics will be given the responsibility of doing the daily check of machines on parameters given. For completing the above they will be requiring around a maximum of 45 min per lines which they can maintenance manger for corrective action.

The report will be checked and counter signed by the floor maintenance manager and the respective line manager after auditing the machines.

Action will e taken immediately based on the report.

FLOW CHART OF CENTRAL MAINTENANCE DEPARTMENT

GENERAL MANAGER

MAINTENANCE

MECHANICAL ELECTRICALELECTRONIC FOLDERS &

ATTACHMENTAMC CIVIL MAINTENANCELAISONING WORK

CHAPTER-12

CUTTING DEPARTMENT

Cutting department receives t e order for cutting a garment from the production manager. In BFRL cutting department includes Cad room and Embroidery section. Cutting

RECEIPT OF THE FLATTERN FILE SAMPLE AND ALL REPORTS-FABRIC/FUSING, WASHING, SHRINKAGE, CHECK ALL RECEIVED AGAINST EACH OTHER.PPM THEN SETS THE STANDARDS AS DISCUSSEDPLAN THE CUTTING MOCKS&BOOK KEEPING

GFT PASS REPORT TO BE RECEIVED MARKER TO CHECK FOR ALL PANNELSPREPARE MINI GARMENT PANNEL DISPLAY

PILOT RUN QUANTITY-LAY THE FABRIC AS PER APPROVED, CONSUMPTION -RELAX THE LAYOUT

MOVE FLAT THE CUT PARTS&THE CUT PARTS TO BE RELAYED IN SEPARATE AREA DO THE NUMERING OF PANNELS

FUSE THE PARTS REQUIRING AT AGAINST THE STANDARDSCHECH THE PANNEL-100% OR AQL IF PASSED PROCEED OR RECUT FROM MATCHING OR SAME ROLL END

MAKE THE BUNDLE &FORWARD TO THE SEWINGPILOT RUN PASS REPORT OF GARMENT RECEIVED PROCEEDS ON BULK CUTTING AS PER THE PLAN.

order is an authorization by the production manager to cut a given amount of styles from the spreads. It comes in form of a pacing file that carries the following details:

Sampling average, weight of garment (base fabric consumption only) and other trims average.

Measurement sheet Design worksheet of the govt. Purchase order Fabric requisition sheet CAD mini marker Marker planning-length of lay etc., size ratio and colors in which the patterns are to be cut.

CUTTING SECTION PROCESS

CAD ROOM BRFL has its own CAD room for varied style garments are made with help of Optitex software package.

FUNCTIONS:

CAD room is responsible for the following functions:

Determining cutting average for costing Making the most efficient cutting marker Development and alteration of patterns Development of size set pattern by grading Embroidery graphics making Digitizing the pattern

Basic workflow

Firstly the merchandiser sends the following documents to the CAD room:

Approved style sheet and spec sheet containing all the measurements. Graded measurement spec sheet. Fabric detail sheet containing information like fabric form (open roll or folded form), roll

size, GSM, type of fabric, style no, vendor, buyer etc.

Then the work of the CAD room begins.

Receive spec sheet form

Receive patterns from pattern

Digitize pattern to feed in

Pattern correction

Pattern grading Output to Graphtec plotter

EMBROIDERY SECTION The embroidery section is a department which comes into picture only when the particular style demands. The embroidery section is the centralized and the second largest embroidery unit in Asia.

The embroidery section receives the garment, style and the embroidery details from the merchandisers in the form of the hard copy format which is generally maintained in company, the department will maintain the file for all the formats received and they will also get a sample of the garment on which the embroidery has been already done and they will use this as their reference sample / piece.

As soon as the department receives the details they check the design that has to be done and they scan the design using the CAD software and then they digitize the design and check for the number of stitches involved, area the design has to cover, the style of the stitch involved for the design, thread colours required, thread tex, starting point of the design on the garment while performing the operation etc., all these things are calculated and tabulated in the

Cut ratio planning

Market planning according to the

cut plan ratio

Output mini marker to printer

Output marker to plotter

Send to cutting room for cutting

Send to merchandiser for

costing

Pattern sent to merchandiser for

sampling

softcopy format and give to the merchandiser and after an approval from them they start the further operation .

After the design has been finalized then they do the embroidery for the samples that has to be produced to the buyer, these samples are done for about 6 – 7 garments and it is something done against the actual or exact order quantity. After the samples have been generated then they conduct the pilot run in the embroidery section.

Once the order has been confirmed and the exact order quantity that has to be produced is known then they start the bulk production during the production the embroidery action on the garment is done in two ways one is after the entire garment has been sewn and the other case is after the garment panels has been cut and before sewing them into a complete garment.

The embroidery section receives the garments from the sewing floor or from the cutting department and then they start their embroidery process.

After the embroidery is been done for the first set of the garment or the cut parts received then they send them to the trimming and the checking section for every machine there are operators for this process.

CHAPTER-13

PRODUCTION DEPARTMENT

The production floor does production in two types, once during pilot production where they have o produce about 150- 200 garments for the new style this will take about 40-55 days.

The production floor will receive the details like:

The style or the garment Number of operators required The batch for which the style has to be installed Ay extra kinds of machines that are to be used for the particular style Target for each day Break up of the production quantity

After receiving all these details they send a request for the cut parts from the cutting and sorting sections and request is sent to the accessories stores for all the accessories that are required for the particular style then they start the production for the new style.

Before starting the proper production the production floor does a process of batch – setting for the floor which is training the operators for the new style that has to be produced bulk, this teaching session will go on for about 3-4 days maximum. After this batch setting process the production for the next day starts with a smaller commitment that is may be for 50 pieces for the entire day and then production gradually increases from 50-100-150 and so on. This will make the operators learn slowly and precisely about the processes that has to be carried out for the particular style.

Once the cut part is received from the cutting and sorting section then the parts are prepared and assembled according to the line that is planned. After the assembling of the parts is done then there will be a line checking, where the shade matching and measurement are checked and sent

During the process of garment meeting exist 2 types of checking they are:

In –process checking End line checking – here there exist both AQL audit and normal checking

The garment making is divided into three different stages and at these three stages checking is done.

The flow of material in the production floor is through the bundle system and each operator gets a bundle containing similar pieces and there will be about 50-20 pieces in each bundle and the operator completely finishes the job and sends it to the next operator to do the next operation on them. Each bundle will contain same components of different garments. The movement of materials within the operators in the batch or line is generally zig-zag motion which is followed. The checking person will be present at a position where the garment is partially finished and it’s mentioned checked thrice in the line and sometimes more than three and this depends on the buyer as well as the number off components present in the garment

PROCESS FLOW CHART

RECIEPT OF FILE, SAMPLE, PATTERN REPORT – REVIEW MAKE SAMPLE

SET THE LINE PLAN OR AUDIT POINTS

GET SPECIALISED MACHINES OR ATTACHMENTS

SET THE S.P.I AND MACHINES READY

ATTEND PPM- THEN LOAD THE PILOT RUN INTO THE LINES- PARELLALY SET STANDARDS AND MOCKS AND MACHINES

PREPARE THE REQUIRED QA PROCEDURES ON THE LINES

OFFER THE PILOT RUN IF PASS LOAD THE BULK QUANTITY

IF FAILED OR NEGATIVE COMMENTS RESET THE LINES REOFFER

ONLY WHEN PILOT PASSED PROCEED ON BULK PRODUCTION

ENSURE PARTS- AQL OR 100% PASS AS APPLICABLE REJECT PARTS ALTER OR REPLACE

HOURLY PRODUCTION CHECK QUANTITY

IF FAILED RE WORK THE GARMENT

ENSURE 32 PIECES PER BATCH DAILY PRODUCTION REPORT DONE

HIERARCHY OF PRODUCTION DEPARTMENT

AQL AUDIT

HAND OVER THE GAMENT TO THE FINISHING SECTION

CHAPTER-14

GENERAL MANAGER

PRODUCTION MANAGER

APM

FLOOR INCHAR

GE

SUPERVISOR

TEAM LEAD

ER

WORKERS

FACTORY MANAGER

IED INCHARGE

ANALYST

STORES

ASSISTANT

WORKERS

F/C MANAGER

F/C INCHARGE

SUPERVIS

OR

WOR

KERS

ELECRITION MANAGER

ELECRITION

INCHARGE

H/K SUPERV

ISOR

SWEEPER

QUALITY MANAGER

QC INCHARGE

QC

CHECKER

MECHANIC MANAGER

MECHANIC

INCHARGE

MECHANIC

INDUSTRIAL ENGINEERING DEPARTMENTThe IED department has to work with many other departments as this department gives

the entire idea of the garment construction and the thread and trims consumption criteria, operators skill level categorization and other related aspects hence they play a vital role in determining the cost of producing a single piece of the garment and they also calculate the cost of the factory for that particular style of garment. The different departments with which the IED works are as follows.The IED department helps the planning department to know the time required for the production of that particular style of the garment by calculating the SAM value for it and they also help in knowing the capacity of the factory based on which the planning department takes a decision if they have to proceed with the item or no. The IED calculates the SAM value for the garment, calculates the productivity of the given style for the initial costing and also calculates or counts the accessories consumption by the style and gives all these details to the merchandising department for the costing purpose because the entire costing criteria depends on these aspects and the IED also gives the merchants suggestions regarding the reduction of the cost of manufacturing the garment by modifying any of the steps and the method of doing it. The IED people using the (GSD) General Sewing Data prepare the style bulletin which includes the different types of seams and stitches that has to be done for the garment and it also includes the length of the seams and the types of stitches that has to be carried out at different places of the garment as per the buyers specifications and approval. Types of thread (which is the TEX), area of placement of the trims and accessories and its location different kinds of labels that are supposed to be placed, the criteria under which the finished garment has to be checked, the times at which the inspection has to be carried out will also be mentioned in the style bulletin, this bulletin will be similar to the Tech Pack but contains more technical data than that. This department will analyze and estimate the manpower and their skill level which is required for the production of the garment, they also set a target to the batch for an hour, for a shift and for a month which will help them to maintain their outputs and also helps in timely completion of the order or sometimes earlier. They will also give the target to each operator based on his/her capacity and skill in order to help them finish their piece of work on time and also maintain the quality of their work. After setting the targets for a batch and also for each operator then they will calculate the efficiency. This efficiency is purely based on the daily output of the batch as well as the single operator and then they come up with the monthly output by the particular batch. This department maintains a file which is the DPR (Daily Production Report), in this report they update the batch number, style/item number, actual output, committed output, SAM value of the garment (both actual and that particular days SAM value), total production till date,

Start

Training, selection & development

Production Dept. Systems

development

Selection of operators, helpers,

supervisors, checkers, QC, etc.

Prepare O.B

Hourly production tracking

Pre-prod. activities

Calculate accessories consumption

average efficiency of the batch till date, peak efficiency achieved, if the company was working that day or not, if there was a delay of production then the reason behind it, information about the batch setting prior to the mass production, etc., all this will be mentioned in this DPR.

Based on the operator’s performance which would have been observed for a specified period of time, the department will allocate a grade to the operator which is as follows,

The operators for each batch are taken in a ratio of,

20% - Highly Skilled25% - Skilled

55% - Semi skilled This is done irrespective to any style and buyer and the complication of the style.

A record is maintained in which the skills of operators are updated on timely bases. Because of maintaining this record they keep in track of the operator’s skill and his efficiency, working method and after a particular span of time they update the record.

Suppose a new operator joins and he is completely unaware of stitching then a training for about 45 – 50 days is given to him/her and then based on their learning and grasping capacity a grade is been allocated to them primarily. Suppose the operator/new employee knows or has a previous work experience in a garment industry then he is just been asked about his job which he/she would have done in the previous factory and then he/she is just given an hour’s test to know his skills and then grade is been allocated.

Everyday the IED team there will be a meeting where in which they speak about the maintenance of efficiency of the batch in the production floor. They also conduct a production review meetings with the operation team in which they discuss about the line and the operation carried out in the batch suppose the previously planned flow is not giving the estimated efficiency and output then they will think of changing the line plan and review it and later follow the right one.

Skill type GradeA Highly skilledB Skilled C Semi skilled

CHAPTER-15

FINANCE DEPARTMENT

The BRFL is widely held public company listed in Bombay Stock Exchange and National Stock Exchange. The company has a capital of 15 crores invested in various types of assets. BRFL has a well defined financial department which deals with the financial requirement of

the company and it is located in Mumbai.

SOURCE OF FUNDS

The main source of funds of BRFL is classified into 2.

Internal Source-Income generated from sales.

-Reserves (capital reserves are too included)

External Source-Term loans

-Share capital

SHARE CAPITAL During the year, the Authorized Share Capital of the Company has increased from ` 1200000000 consisting of 12, 00, 00,000 equity Shares of ` 10/- each to ` 1500000000 consisting of 15, 00, 00,000 equity shares of ` 10/- each.Company has raised equity by –

(i) Issue of 1, 60, 00,000 Global Depository Receipts (GDR) representing equivalent number of underlying equity shares at the rate of US $ 6.60 per GDR (` 292.69/- per GDR of face value of ` 10/-) to the persons resident outside India raising an aggregate of US $ 105.600

million (` 46,830.72 lacks). Pursuant to aforesaid, the Company’s GDRs have been listed on the Singapore Stock Exchange with effect from October 27, 2010. (ii) Issue and allotment of 1, 00, 00,000 Optionally Convertible Warrants, each warrant convertible into one equity share at the rate of` 263/- per share (face value of ` 10/-) to B R Machine Tools Private Limited, an entity belonging to the promoter/ promoter group Of the Company.

LISTING OF EQUITY SHARES The Company’s shares are listed on National Stock Exchange of India Limited (“NSE”) and Bombay Stock Exchange Limited (“BSE”).

DIVIDEND Directors recommend a dividend of ` 1.50/- per Equity Share (15%) aggregating to `2310.60 lacks (including Corporate Dividend Tax) for the financial year 2010-11, subject to the approval of the members at the ensuing Annual General Meeting. The dividend pay out as proposed is in accordance with the Company’s policy to pay sustainable dividend linked to the long term performance, keeping in view the capital needs for the Company’s growth plans and the intent to optimal financing of such plans through internal accruals.

BANKERS/TERM LENDERS

Allahabad Bank AXIS Bank Limited Bank of India Bank of Maharashtra Citibank N.A. Corporation Bank DENA Bank Export-Import Bank of India IDBI Bank Limited Indian Bank Karnataka Bank Limited Karur Vysya Bank Limited Oriental Bank of Commerce Punjab National Bank State Bank of Bikaner & Jaipur

State Bank of India State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore

BALANCE SHEET AS ON MARCH 31, 2011 (R.s in Lacs)

PARTICULARS SCHEDULE AS AT 31.03.2011 AS AT 31.03.2010

SOURCES OF FUNDS

Shareholders’ Funds

Share Capital A 12790.00 11190.00

Reserve and Surplus B 245123.73 179741.71

Advance Money Received for convertible Warrants

8601.50 266515.23 2026.50 192958.21

Loan Funds

Secured C 276554.62 214672.37

Unsecured D 36424.25 312978.87 33342.47 248014.84

Deferred Tax Liabilities 8823.60 9117.71

TOTAL 588317.70

450090.76

APPLICATION OF FUNDS

Fixed Assets E

Gross Block 316980.59 209143.69

Less : Depreciation 30162.78 16551.59

Net Block 286817.81 192592.10

Capital work- in -progress 63756.80 350574.61 55425.55 248017.65

Investments F 22272.22 43948.13

Current Assets, Loans and Advances

Inventories G 126287.49 69557.57

Sundry Debtors H 47912.49 37725.31

Cash and Bank Balances I 3492.10 2607.76

Advances to Subsidiaries 51250.16 44031.13

Loans and advances J 30495.89 24056.70

259438.13 177978.47

Less : Current Liabilities and Provisions

Current Liabilities K 39025.92 17601.38

Provisions L 4941.34 2252.11

43967.26 19853.49

Net Current Assets 215470.87 158124.98

TOTAL 588317.70

450090.76

Notes to Accounts S

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 (R.s in lacs)

PARTICULARS Schedule Year ended 31.03.2011

Year ended

31.03.2010

INCOME

Sales M 225483.63 161476.59

Other Income N 2349.06 1566.05

Increase /(Decrease) in stocks O 20565.62 15004.67

Total 248398.31 178047.31

EXPENDITURE

Cost of Materials P 141134.79 98283.43

Manufacturing and other expenses Q 50828.04 39446.02

Interest & Financial Charges R 14520.64 9354.37

Depreciation 13667.05 6806.53

Total 220150.52 153890.35

PROFIT BEFORE TAXATION 28247.79 24156.96

Provision for Taxation

Current tax 5872.00 4030.00

Deferred tax (294.11) 2503.44

Short /(Excess) Provision for Tax in - respect of earlier years

- 31.61

PROFIT AFTER TAXATION 22669.90 17591.91

Balance brought forward 44493.67 29765.52

PROFIT AVAILABLE FOR APPROPRIATIONS 67163.57 47357.43

Less:-Transferred to General Reserve (1200.00) (900.00)

Proposed Dividend (1981.50) (1678.50)

Corporate Dividend Tax (329.10) (285.26)

BALANCE CARRIED TO BALANCE SHEET 63652.97 44493.67

Basic E.P.S. (`) 19.06 18.90

Diluted E.P.S. (`) 17.70 18.59

Notes to Accounts S

FINANCIAL PERFORMANCE

BRFL recorded a total income of ` 22,783.27 million in 2010-11 from ` 16,304.26 million in 2009-10, an increase of 40 %.Profit after tax stood at ` 2,266.99 million in 2010-11 against ` 1,759.19 million in 2009-10, an increase of 28.87%.

AUDITORSV. K. Beswal & Associates, Chartered Accountants.

HIERARCHY OF FINANCE DEPARTMENT

GENERAL MANAGER

MANAGER

Asst.MANAGER

SUPERVISORS

EXEUTIVES(CASHIER)

CHAPTER-16QUALITY ASSURANCE DEPARTMENT

Quality is the major criteria for any product and the same rule applied even to garment industries also. BRFL have internalized quality control management systems and quality improvement systems in all our plants. It has quality audit teams reviewing all aspect of quality assurance at all our units. Apart from that a dedicated in-house management team overlooks the implementation and adherence to quality control policies across all the company’s establishments. The corporate management takes active interest and reviews use of IT enabled platforms, which help in monitoring the same.

In order to maintain quality the quality assurance departments has split up their job into different stages of manufacturing and there are classified into four major groups which are as follows.

Pre-production audit: In this stage auditing is mainly done for the stages which come before the production and that is the sampling stage. Here the auditing is done for all samples and precisely for the size set samples and also for the pilot production garments. The size set samples are given importance to because they are mainly asked by the buyer for checking the dimensions of the garment hence an extra stress is given to these samples and the auditing for them is mainly done for the measurements of the garment and the measurements are checked at all the critical areas in the garment.

Cutting audit:In the cutting stage, which is the critical stage of the garment production the auditing is

further divided into many other departments which are,1. Spreading2. Relay cut3. Band knife

QUALITY DEPARTMENT

SHRINKAGE CUTTING

4 POINT INSPECTION BEFORE WASH WIDTH CHECKING, MARKING AND OVERLOCK AFTER THAT SENDING FOR WASHING

AFTER PRESSING (IF IT IS REQUIRED)

AFTER WASH MEASUREMENT SHADE BAND

4. Shade5. Hard pattern

Sewing audit: In sewing process the inspection is done in two areas, they are

1. In – line audit: Here the garments are checked during their different stages of manufacturing. Here the

entire manufacturing process for a particular garment is split into the required number of parts may be two – three and then at the end of each stage the inspection is carried out by the person whose main job is auditing.

2. End – line audit: Here the garments are checked after the entire process is over and the specifications are

mainly based on the dimensions of the garment at the critical positions and then the placements of the labels.

Button/button hole :In this area the auditing is mainly done by the operator himself as the job is limited, it is

just button attachment that has to be done and the operator does it himself as and when he finishes his part of the job with the garment and the operator will be given or taught about the specifications for the garment to attach the button/ making the button holes.

After the auditing is done in each and every stage the defects, findings and other related information will be recorded by the concerned departments in their own formats and they will be sent to the respective departments for rectification.

FLOW CHART

CHAPTER-17

FINISHING DEPARTMENT

The finishing department is the department which comes after all the departments and it plays an equally important role in the final appearance of the garment. This department includes majorly of the following steps, Trimming: This involves the removal of the extra threads from the garment at the stitched

areas. Inspection: The inspection carried out here is according to the AQL 4.0 system and

sometimes it depends on the buyer also i.e., if the buyer emphasizes for a 100% inspection then the company has to do as specified.

Semi – pressing: This happens when a garment is difficult to inspect in the crushes manner as it comes from the washing department hence, they do a partial pressing for the garments and then inspect it and trim it and then send it to the complete pressing process.

Pressing: The pressing is done after the garment has been completely inspected and the garments are pressed on the basis of how they will be folded during packing.

Tagging section: Once the garments are been done with the inspection and complete pressing then they are sent for tagging the labels and the labels include the size labels, price tags and miscellaneous labels if any required by the buyer. Once the tagging is done the garments are folded according to the buyer’s specification and also they are either folded plainly or sometimes they are folded after they are put to the hangers as per the buyer’s specifications again.

The packing material, PCB details, number of size ratios that are supposed to be put in are all suggested by the buyer and the packing is done according to these specifications.

Packing: The packing is always done in the carton boxes and there are several criteria for the packing of the garments they are as follows,There are generally two kinds of packing the garment,

1. The garment is individually packed/wrapped in the poly bag whose design will be specified by the buyer i.e., either with the hanger attached or plain poly bag packing and then the entire garments (as per the packing criteria) is arranged in the carton box.

2. The other method is that the garments are just folded and arranged in the carton boxes without putting them in the poly bag.The packing criteria followed in each carton box as already mentioned is done in different ways which is as follows,

Solid Packing: In this method of packing, the carton box will include garments of single colour and same size.

For example, 20 shirts of a similar colour say navy blue and the size say S will be put in one carton box.

Ratio Packing: In this method the carton box includes garments of same colour but of different sizes according to the ratio.

Mixed Packing: In this method the carton box includes garments of different colours but of same size or garments with different colours and different sizes in a particular ratio form.

After the packing is done the garments are kept in the godown/stores until the buyer sends the buyer QC for the inspection purpose before delivering them and once the QC arrives, he will check them according to the 4.0 AQL level and then see if the garments has to be accepted or rejected.

CHAPTER-18

SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strength and Weakness are essential factors. SWOT analysis is the tool for auditing the organization and its environment. It is the first stage in planning and helps marketers to face on key issues.

STRENGTHS AND OPPORTUNITIES

Vertically integrated operations enables BRFL to take advantage of economies of scale as well as put the Company in a preferred position with respect to large buyers who are looking at efficiencies in terms of cost and turn-around time.

Its unique business model enables the Company to enjoy higher margin retentions on an overall basis rather than the cost plus model followed by other garment manufacturers.

The strength of the product and operations provides the Company the opportunity to a significant player in the global arena as well as the largest producer of fabric and garments in the country.

WEAKNESS AND THREATS

Rapid expansion and scale of operations could pose a threat if growth is not well managed. Uncertainty surrounding the global markets like the recent sovereign debt crisis in European countries and the challenging retail environment that is the result of a weakened economy continues to remain a threat in the near-term.

CHAPTER-19

FINDINGS & SUGGESTIONS

FINDINGS

Bombay Rayon Fashion Limited is one of India’s most dynamic and professionally managed fast growing textile group.

BRFL is one of the world's fastest growing integrated textiles companies. BRFL capacities have grown substantially in yarn dyeing, fabrics and in Garments. BRFL looked up to for transparency, governance and social responsibility. BRFL is permanently bonded with customers, suppliers and other stake holders. Net sales and income of the company increases yearly The study shows that Aafloat Textiles (India) Ltd, Aarya Global Shares & Securities Ltd

and Alps industries ltd are the main competitors of BRFL. The study shows BRFL differs from competitors product mainly based on their quality. The study provides the details about quality are the main factor that influences the

customers for purchasing BRFL products. Very dedicated workforce. The company was awarded the ISO-9001 certificate. The employee-employer relationship is found to be cordial. The company is facing competition from both international and national market. The management is very keen in welfare activities of the company’s employees. The company has a very high brand image. There always a possibility of stable demand for the products.

SUGGESTIONS

The following suggestions are recommended:

The company should concentrate toward the advertisement, to increase the customer awareness towards the product.

Try to expand the unit of production into other states of the country. BRFL product s have high price, so the company should reduce the price without

affecting the quality. Company should also concentrates on the low level income people. The company should expand maintenance department.

CHAPTER-20

CONCLUSION

The Study focuses general study on Bombay rayon fashions ltd, Bangalore with special emphasis on financial management”.

From the data, we can conclude that, BFRL has excellent quality, life time etc...And customers are very much aware about it.

If the company focuses on the above suggestions, it can improve sales further and can increase the percentage of market share.