Project Work on textile industry

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    Organizational

    study

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    Industry profile

    A textile or cloth is a flexible material consisting of a network

    or artificial fibres often referred to as thread or yarn. Yarn is

    produced by spinning raw fibres of wool, flax, cotton, or other

    materials to produce long strands. Textiles are formed by

    weaving, knitting, crocheting, knotting, or pressing fibres

    together.

    Prior to the manufacturing processes being mechanized,

    textiles were produced in the home, and excess sold fo extra

    money. Most cloth was made from wool, cotton, or flax,

    depending on the era and location

    The textile, textile product, and apparel manufacturing

    industries include establishments that process fibre into fabric

    and fabric into clothing and other textile products. While most

    apparel manufacturers worldwide rely on people to cut andsew pieces of fabric together. There are three individual

    industries covered- textile mills, textile product mills, and

    apparel manufacturing.

    Textile mills provide the raw material to make apparel and

    textile products. They take natural and synthetic materials,

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    such as cotton and polyester, and transform them into fibre,

    yarn, and thread. Yarns are strands of fibres in a form ready for

    weaving, knitting, or otherwise intertwining to form a textile

    fabric. They form the basis for most textile production and

    commonly are made of cotton, wool, or a synthetic fibre such

    as polyester. Yarns also can be made of thin strips of plastic,

    paper, or metal. To produce spun yarn, natural fibres such as

    cotton and wool must first be processed to remove impurities

    and give products the desired textile and durability, as well as

    other characteristics. After this initial cleaning stage, the fibres

    are spun into yarn.

    Textile mills then go on to produce fabric by means of weaving

    and kitting. Workers in weaving mills use complex, automated

    looms to transform yarns into cloths. Looms weave or interlace

    two yarns, so they cross each other at right angles to form

    fabric. Knitting mills use automated machines to produce fabric

    of interlocking loops of one or more yarns

    At any time during the production process, a number of

    processes, called finishing, may be performed on the fabric.

    These processes which include dyeing, bleaching, and

    stonewashing, among others may be performed by the textile

    mill or at a separate finishing mill. Finishing encompasses

    chemical or mechanical treatments performed on fibre, yarn,

    or fibre to improve appearance, texture, or performance.

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    Textile product mills convert raw textiles into finished products

    other than apparel. Some of items made in this sector include

    household items, such as carpets and rugs, towels, curtains

    and sheets, cord and twine, furniture and automotive

    upholstery, and industrial belts and fire hoses. Because the

    process of converting raw fibres into finished textile products is

    complex, most textile mills specialize.

    The apparel manufacturing industry transforms fabrics

    produced by textile manufacturers into clothing and

    accessories. The apparel industry traditionally has consisted

    mostly of production workers who performed the cutting and

    sewing functions in an assembly line. This industry remains

    labour intensive, despite advances in technology and

    workplace practices. Although many workers still perform this

    work to foreign suppliers to take advantage of lower labour

    costs in other countries.

    Many of the remaining production workers work in teams. For

    example, sewing machine operators are organized into

    production modules. Each operator in a module is trained to

    perform nearly all of the functions required to assemble a

    garment. Each module is responsible for its own performance,

    and individuals usually receive compensation based on the

    terms performance.

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    Recent developments

    The textile and apparel manufacturing industries are

    among the most labour intensive manufacturing industries,

    and therefore and increasing amount of textile products is

    produced by foreign suppliers. Nonetheless, some textilemanufacturing still takes place in the united states. To remain

    competitive, however, domestic manufacturers rely on being

    extremely labour efficient. Advanced machinery is boosting

    productively levels in textiles and fundamentally changing the

    nature of work for employees. New technology also has led to

    increasingly technical training for workers throughout theindustry. Computers and computer controlled equipment aid in

    many functions, such as design, patternmaking, and cutting.

    Other emerging technologies which improve plant efficiency

    include wider looms, computerised equipment, and increased

    use of robotics to move material within the plant.

    The domestic apparel industry also benefits from laws

    requiring the clothing worn by the armed services be produced

    in the United States a law that was recently extended to cover

    uniforms worn by Transportation Security Administrations

    Officers. Although demand for these uniforms is greatly

    outweighed by a much larger consumer goods market, it

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    nonetheless will continue to employ some textile workers in

    more labour intensive segments, such as cut and sew apparel

    manufacturing.

    Other domestically produced items tend to be custom or high

    end items. One advantage the domestic industry has is its

    closeness to the market and its ability to reach to changes in

    fashion more quickly then its foreign competitors. Also, as

    retailers consolidate and because more cost conscious, they

    require more apparel manufacturers to move toward just in

    time delivery systems, in which purchased apparel items are

    quickly replaced by new items directly from manufacturers,

    rather than from a large inventor kept b the retailer. Through

    electronic data interchange mainly using barcodes in

    formations quickly communicated to the manufacturers,

    providing information not only on inventory, but also about the

    desire of the public for particular fashions.

    Some apparel firms have responded to growing competition by

    merging with other apparel firms and by moving into the retail

    market. In addition to the production of garments they also are

    contracting out functions- for example, warehousing and order

    fulfilment to concentrate on their strengths: design and

    marketing. Computer aided design systems have led to the

    development of product life cycle management, under which

    potential new fashions can now be transmitted around the

    planet over the Internet. Such changes may help the apparel

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    manufacturing industry meet the growing competition and

    continue to supply the Nations consumers with garments at an

    acceptable cost.

    Some Important Industries in the World

    Perfect Exports Private Limited - Nepal

    Good Top International Company Limited - Taiwan

    Maruti Textiles - India

    Texfab Engineers India Private Limited - India

    Go Green Textiles India - India

    Tepe Label - Turkey

    Fractal Fashion - India

    Flainox Srl - Italy

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    Expo Dress Marketing - Bangladesh

    M.M.Traders - India

    History of textile industry

    India has been well known for her textile goods since very

    ancient times. The traditional textile industry of India was

    virtually decayed during the colonial regime. However, the

    modern textile industry took birth in India in the early

    nineteenth century when the first textile mill in the country

    was established at fort gloster near Calcutta in 1818. The

    cotton textile industry, however, made its real beginning in

    Bombay, in 1850s. The first cotton textile mill of Bombay was

    established in 1854 by a Parsi cotton merchant then engaged

    in overseas and internal trade. Indeed, the vast majority of the

    early mills were the handiwork of Parsi merchants engaged in

    yarn and cloth trade at home and Chinese and African

    markets. The first cotton mill in Ahmadabad, which was

    eventually to emerge as a rival centre to Bombay, was

    established in 1861. The spread of textile industry to

    Ahmadabad was largely due to the Gujarat trading class. The

    cotton textile industry made rapid progress in the second half

    of the nineteenth century and by the end of the century there

    were 178 cotton textile mills; but during the year 1900 the

    cotton textile industry was in bad state due to the great famine

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    and a number of mills of Bombay and Ahmadabad were to be

    closed down for long periods. The partition of the country at

    the time of independence affected the cotton textile industry

    also. The Indian union got 409 out of the 423 textiles mills of

    the undivided India. 14 mills and 22 per cent of the land under

    cotton cultivation went to Pakistan. Some mills were closed

    down for some time. For a number of years since

    independence, Indian mills had to import cotton from Pakistan

    and other countries. After independence, Indian mills had to

    import cotton from Pakistan and other countries. After

    independence, the cotton textile industry made rapid strides

    under the plans. Between 1951 and 1982 the total number of

    spindles doubled from 11 million to 22 million. It increased

    further to well over 26 million b 1989-90.

    Textile Industry in India

    The Indian textile industry has a significant presence in

    the international textile economy. The Indian textile industry is

    currently one of the largest and most importance sectors in the

    economy in the terms of output foreign exchange earnings,

    production and employment generation in India.

    The Indian textile industry adds 14% to the industrial

    production and 8% to the GDP of India. It provides employment

    to 38 million people and thus, is the second largest

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    employment provider after agriculture. The Indian apparel and

    textile industry is one of the largest sources of foreign

    exchange flows into the country with the apparel exports

    accounting for almost 21% of the total exports of the country.

    The textile industry has the potential to scale new height

    in the globalised economy. The textile industry in India has

    gone through significant changes in anticipation of increased

    international competition. In human history, past and present

    can never ignore the importance of textile in a civilization

    decisively affecting its destinies, effectively changing its social

    scenario.

    Textile industry in India is the second largestemployment generator after agriculture. It holds significant

    status in India as it provides one of the most fundamental

    necessities of the people. Textile industry in India has vast

    potential for creation of employment opportunities in the

    agriculture, industrial, organised and decentralised sectors and

    rural and urban areas, particularly for women and the

    disadvantages. Indian textile industry is constituted of the

    following segments: readymade Garments, Cotton Textiles

    including Handlooms, Manmade Textiles, Silk Textiles, Woollen

    Textiles, Handicrafts, Coir and Jute.

    Textile industries in Tamil nadu

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    Textile Industry of Tamil Nadu is the forerunner in

    Industrial Development and in providing massive employment

    in the State. It is predominantly Spinning-oriented. The State

    Textile Industry has a significant presence in the National

    economy also. Out of 2049 large and medium textile mills in

    India, 893 mills are located in Tamil Nadu. Similarly, out of 996

    small units in India, 792 are located in Tamil Nadu. The 893

    large and medium textile mills include 18 Cooperative Spinning

    Mills, 17 National Textile Corporation Mills and 23 Composite

    Mills. The spinning capacity is 14.75 million spindles with a

    labour force of about 2.17 lakhs. The Textile Industry in the

    private sector has a very important role to play in the Industrial

    field, with regard to employment potential, overall economic

    and commercial activities. This industry enables the Central

    and State Government to earn revenue, besides foreign

    exchange through exports.

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    Company profile

    Jak industries is a family owned business. The

    companys operations are totally vertical. Jak industries hasbeen in the fabric manufacturing business for past 30 years

    and been manufacturing finished garments for the past 12

    years. As a result the company has excellent expertise in both

    fields of garments and fabric manufacturing.

    The company is certified with ISO- 9001- 2008, WRAP

    PLATINUM CERTIFIED FACILITY, BSCI, SGS, LI AND FUNG

    CERTIFIED, ETI CODE OF CONDUCT.They have an infrastructure

    with more than 500 machines and skilled work force of 600

    people. Besides administration and quality management is

    held by competent qualified personals. Having made an

    ambitious start in less than a decade, they have occupied a

    dominant position amongst the reliable garment export unit in

    Tamilnadu.

    After packing the garments, they have 100% checked

    through hashima needle detector machine imported from

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    Japan to ensure, there is no needle particles left in them, no

    garments will be packed unless it is thoroughly checked by the

    needle detector and also maintaining the needle policy register

    as per the global standard.

    The fabric designs are created and developed using in

    house skills and talent. A blend colour, composition, texture,

    and view is created to appeal the aesthetic sense of the buyer.

    They emphasis on design, quality and timely delivery has

    contributed in a big way to their growth. They pay attention to

    minute details and have also evolved an efficient and

    organised production process. The growths in turnover since

    inception as well as the increasing number to top labels beingserviced are testimony to the leadership at JAK Industries.

    They have very good tie up with the washing laundry

    they have capacity to do washing 100,000per day. They can do

    stone wash, bleach wash softener and different kind of blast of

    the garments.

    Their production capacity is 100000 Pieces per month and

    lead time is 75 to 90 days based on fabric pattern after confirm

    the order.

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    JAK Industries start their business by purchasing raw

    materials, i.e., fabrics and button from Salem, Ahmadabad,

    Calcutta and Delhi and even from abroad. The quantity of raw

    materials is fixed upon the orders come from the clients. There

    are more than 500 employees in the factory for stitching,

    ironing, quality checking and packing and labelling. 80% of the

    employees are women.

    Turnover of the company

    Company earns $ 30000 per month that is Rs 1650000.

    And yearly turnover is Rs 19800000. The total salary they are

    giving to their employees is Rs 4000000

    Product exported

    Product range fabric for girls and womens:

    Embroidered tops

    Beadwork

    Pin tuck, smoking

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    Printed fabric

    Sheer jersey

    Glowing night print

    Fine knit-viscose and viscose blends etc.

    Product range fabric for men

    Bio polished polos peached jersey, suede jersey.

    Flat back rib-cotton/wool, polyesters cotton.

    100% cotton fleece, 80/20 cotton/poly fleece, micro polar.

    Fleece, spun/ply fleece, heather fleece.

    Moisture wicking fabric chemicals and yarn.

    Water repelled stain guard, Teflon coated.

    Single mercerized polo solids, jacquard wrappers.

    Velour, ottoman pouched.

    Sub fleece, cotton model and different modal blends

    Organic cotton jersey and pique etc.

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    Area of operation

    JAK Industries is a 100% Export Company. JAK Industries does

    not manufacture for the domestic market, nor does it currently

    have any plans to do so. It exports to the countries like USA,

    Europe and South Africa.

    USA -BUCKLES, PRANA, ROCAWEAR, PEPE JEANS, BILLABONG,

    ECKO UNLTD.,

    EUROPE -C& A, CARS JEANS, KIABI, DUNES, COOLCAT,

    LAKESIDE

    SOUTH AFRICA -MARKAMS, TRUEWORTHMAN

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    Production plant and machinery:

    Company is having good sophisticated and new

    technology of plant and machinery which helps employees to

    adopt new technology in their work which in turn helps tomaintain good quality of products.

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    Work flow model

    Receive orders

    Suppliers Stocksubstore

    Fabric

    Cutting section

    Weaving

    Button fixing

    Trimming

    Checking

    Stain spotting

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    Final checking

    Ironing

    Final presentation

    Packing and labelling

    Shipping Formalities

    Shipping cost will be based on product weight and

    shipping country. To find out when you will receive an item,

    you need to consider the availability of the items your

    customer is ordering as well as the shipping option your

    customer selected. All books, CD's and puja items are sourced

    locally and are usually available for shipping within 2 days. We

    will let your customer know immediately if these items are

    unavailable. Offerings for the pujas performed at temples in

    and around Chennai will be shipped on the day the pujas areperformed. For pujas performed outside Chennai, the offerings

    usually take around 2 days to reach Chennai and are then

    shipped. In any case, the offerings will reach your customer 7-

    10 days from the date of shipment. If your customer is ordering

    from India or would like the offerings to be shipped to an

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    To achieve tangible benefits by promoting efficiencies,

    productivity and professionalism

    Provide competitive prices and genuine products to our clients.

    Creating a climate for voluntary compliance by providing

    guidance and building mutual trust.

    To promote international textile trade.

    One that impresses level of business efficiency with integrity

    and honesty

    To be a world class organization one that becomes a

    benchmark for other organizations, its source for new ideas,

    information, professional development and quality standards.

    STRATEGY USED BY THE COMPANY

    Providing better quality product

    Maintaining good and long term relationship with buying

    agents

    Delivery of goods on time

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    Providing better amenities to employees

    Maintaining good relation with employeed and considering

    them as internal customers

    DEPARTMENTATION

    Department is a process of dividing the large monolithic

    functional organization into small and flexible administrative

    units.

    JAK Industries has a functional departmentalisation. The

    departments are:

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    1. Personnel Department

    2. Production Department

    3. Marketing Department

    4. Financial Department

    Personnel Department

    JAK Industries is having a well governed human resource

    department, which is concerned with the creation of

    harmonious relationship among its employees, bringing about

    their utmost individual development. The HRD has a control

    over the employees of all other functional departments. They

    take the responsibility of maintaining various reports and

    documents. Few documents maintained by Human Resource

    Manager are as follows

    Design and procurement

    Process control

    Inspection and test status of dies

    Document and data control

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    Production Department

    The production department involves. The technical staff

    basically machines handling and technically skilled staff.

    The supervisory staffs are having good relations among

    the subordinates. The supervisors have enough skill and

    knowledge about their work and production process and they

    control the employees to work efficiently. And also the various

    training programs are conducted o develop their supervisory

    skill.

    Production planning

    Material planning

    Process control

    Productive and cost control

    Marketing department

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    The marketing department is held by managing director,

    Mr. P. J. Sudhakar itself. The main task of marketing

    department is to deal with various buying agencies.

    Financial department

    The financial officer is the head of the accounts

    department. He is assisted by the chief accountant andaccounts officers. All the cash transactions are controlled by

    finance department. All financial decisions are taken by

    accounts department. The company is banked with Dena Bank,

    nungambakkam.

    REGISTRATION OF EXPORTERS

    Registration with Reserve Bank of India (RBI)

    Prior to 1997, it was necessary for every first time

    exporter to obtain IEC number from Reserve Bank of India (RBI)

    before engaging in any kind of export operations. But now this

    job is being done by DGFT.

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    Registration with Director General of Foreign Trade

    (DGFT)

    For every first time exporter, it is necessary to get

    registered with the DGFT (Director General of Foreign Trade),

    Ministry of Commerce, Government of India.

    DGFT provide exporter a unique IEC Number. IEC Number

    is a ten digits code required for the purpose of export as well

    as import. No exporter is allowed to export his good abroad

    without IEC number.

    However, if the goods are exported to Nepal, or to

    Myanmar through Indo-Myanmar boarder or to China through

    Gunji, Namgaya, Shipkila or Nathula ports then it is not

    necessary to obtain IEC number provided the CIF value of a

    single consignment does not exceed Indian amount of Rs. 25,

    000 /-.

    Application for IEC number can be submitted to the

    nearest regional authority of DGFT. Application form which is

    known as "Aayaat Niryaat Form - ANF2A" can also be

    submitted online at the DGFT web-site.

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    While submitting an application form for IEC number, an

    applicant is required to submit his PAN account number. Only

    one IEC is issued against a single PAN number. Apart from PAN

    number, an applicant is also required to submit his Current

    Bank Account number and Bankers Certificate.

    A amount of Rs 1000/- is required to submit with the

    application fee. This amount can be submitted in the form of a

    Demand Draft or payment through EFT (Electronic Fund

    Transfer by Nominated Bank by DGFT.

    EXPORT DOCUMENTS

    Shipping Bill / Bill of Export

    Customs Declaration Form

    Dispatch Note

    Commercial invoice

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    Consular Invoice

    Customs Invoice

    Legalised / Visaed Invoice

    Certified Invoice

    Packing List

    Certificate of Inspection

    Black List Certificate

    Manufacturer's Certificate

    Certificate of Chemical Analysis

    Certificate of Shipment

    Health/ Veterinary/ Sanitary Certification

    Certificate of Conditioning

    Antiquity Measurement

    Shipping Order

    Cart/ Lorry Ticket

    Shut Out Advice

    Short Shipment Form

    An exporter without any commercial contract is

    completely exposed of foreign exchange risks that arises due

    to the probability of an adverse change in exchange rates.

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    Therefore, it becomes important for the exporter to gain some

    knowledge about the foreign exchange rates, quoting of

    exchange rates and various factors determining the exchange

    rates. In this section, we have discussed various topics related

    to foreign exchange rates in detail.

    Export from India required special document depending upon

    the type of product and destination to be exported. Export

    Documents not only gives detail about the product and its

    destination port but are also used for the purpose of taxation

    and quality control inspection certification.

    Shipping Bill / Bill of Export

    Shipping Bill/ Bill of Export is the main document required by

    the Customs Authority for allowing shipment. A shipping bill is

    issued by the shipping agent and represents some kind of

    certificate for all parties, included ship's owner, seller, buyer

    and some other parties. For each one represents a kind of

    certificate document.

    Documents Required for Post Parcel Customs Clearance

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    In case of Post Parcel, no Shipping Bill is required. The relevant

    documents are mentioned below:

    Customs Declaration Form - It is prescribed by the

    Universal Postal Union (UPU) and international apex body

    coordinating activities of national postal administration. It is

    known by the code number CP2/ CP3 and to be prepared in

    quadruplicate, signed by the sender.

    Despatch Note- It is filled by the exporter to specify the

    action to be taken by the postal department at the destination

    in case the address is non-traceable or the parcel is refused to

    be accepted.

    Commercial Invoice - Issued by the exporter for the full

    realizable amount of goods as per trade term.

    Consular Invoice - Mainly needed for the countries like

    Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma,

    Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is

    prepared in the prescribed format and is signed/ certified by

    the counsel of the importing country located in the country of

    export.

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    Customs Invoice - Mainly needed for the countries like

    USA, Canada, etc. It is prepared on a special form beingpresented by the Customs authorities of the importing country.

    It facilitates entry of goods in the importing country at

    preferential tariff rate.

    Legalised / Visaed Invoice - This shows the seller'sgenuineness before the appropriate consulate or chamber or

    commerce/ embassy.

    Certified Invoice - It is required when the exporter

    needs to certify on the invoice that the goods are of a

    particular origin or manufactured/ packed at a particular place

    and in accordance with specific contract. Sight Draft and

    Usance Draft are available for this. Sight Draft is required when

    the exporter expects immediate payment and Usance Draft is

    required for credit delivery.

    Packing List - It shows the details of goods contained in

    each parcel / shipment.

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    Certificate of Inspection It is a type of document

    describing the condition of goods and confirming that they

    have been inspected.

    Black List Certificate - It is required for countries which

    have strained political relation. It certifies that the ship or the

    aircraft carrying the goods has not touched those country(s).

    Manufacturer's Certificate - It is required in addition to

    the Certificate of Origin for few countries to show that the

    goods shipped have actually been manufactured and is

    available.

    Certificate of Chemical Analysis - It is required to

    ensure the quality and grade of certain items such as metallic

    ores, pigments, etc.

    Certificate of Shipment - It signifies that a certain lot of

    goods have been shipped.

    Health/ Veterinary/ Sanitary Certification - Required

    for export of foodstuffs, marine products, hides, livestock etc.

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    Certificate of Conditioning - It is issued by the

    competent office to certify compliance of humidity factor, dryweight, etc.

    Antiquity Measurement It is issued by Archaeological

    Survey of India in case of antiques.

    Shipping Order - Issued by the Shipping (Conference)

    Line which intimates the exporter about the reservation of

    space of shipment of cargo through the specific vessel from a

    specified port and on a specified date.

    Cart/ Lorry Ticket - It is prepared for admittance of the

    cargo through the port gate and includes the shipper's name,

    cart/ lorry No., marks on packages, quantity, etc.

    Shut Out Advice - It is a statement of packages which

    are shut out by a ship and is prepared by the concerned shed

    and is sent to the exporter.

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    Short Shipment Form - It is an application to the

    customs authorities at port which advises short shipment of

    goods and required for claiming the return

    Learning experience

    JAK Industries has given me an opportunity to know about the

    organisational structure, formalities and its working.

    This training has given me an opportunity to know about the

    industrial world. Being with the company helped to learn how

    the management theories and concepts are applied in an

    organisation.

    Came to know about the importance of documentation and

    maintaining of data in the organisation.

    Got to know about what merchandiser does in an export

    garments.

    How to manage the fabric store department in garments

    industry.

    Got to know about various departments and their functions and

    how they interrelated.

    Importance of working together, training to workers and

    employees.

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    It gives an opportunity to see how few managers managed a

    large number of employees and machine to run the company

    with a profit.

    Conclusion:

    The firm that I underwent was the ideal firm as it is a

    small firm and I had training in almost all the departments.Working in an export organisation, I could connect with a few

    concepts that have been taught in the classroom.

    Firstly, the time period for the internship is rather short

    and there one can only skim the surface of the various aspects

    involved in export. Secondly, companies under which we do

    our training dont really have an idea about what exactly is

    expected from them. So, there should be more communication

    between the company and the teachers so they can impart the

    right kind of training to the students.

    Overall I can say that the experience has been rewarding

    and I am happy that I could be part of such an exciting

    internship.